S.Amdt. 1692Senate110th Congress (2007-2009)2nd degree
S.Amdt. 1692
Sponsored by 
Sen. Lisa Murkowski (R-AK)
Sen. Lisa Murkowski (R-AK)Submitted June 19, 2007
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Senate amendment submitted
June 19, 2007
Text
Submitted
TEXT OF AMENDMENTS
______
SA 1655. Mr. NELSON of Florida (for himself and Mr. Sanders)
submitted an amendment intended to be proposed to amendment SA 1502
proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's
dependency on foreign oil by investing in clean, renewable, and
alternative energy resources, promoting new emerging energy
technologies, developing greater efficiency, and creating a Strategic
Energy Efficiency and Renewables Reserve to invest in alternative
energy, and for other purposes; which was ordered to lie on the table;
as follows:
On page 241, line 5, strike ``35'' and insert ``40''.
______
SA 1656. Mr. SCHUMER submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the end of subtitle F of title II, add the following:
SEC. 2__. ENERGY EFFICIENCY RESOURCE STANDARD FOR RETAIL
ELECTRICITY AND NATURAL GAS DISTRIBUTORS.
Title VI of the Public Utility Regulatory Policies Act of
1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end
the following:
``SEC. 610. ENERGY EFFICIENCY RESOURCE STANDARD FOR RETAIL
ELECTRICITY AND NATURAL GAS DISTRIBUTORS.
``(a) Definitions.--In this section:
``(1) Base quantity.--The term `base quantity', with
respect to a retail electricity or natural gas distributor,
means the total quantity of electric energy or natural gas
delivered by the retail electricity or natural gas
distributor to retail customers (other than to an electricity
distributor for purposes of electric generation) during the
most recent calendar year for which information is available.
``(2) CHP savings.--
``(A) In general.--The term `CHP savings' means the
increment of electric output of a new combined heat and power
system that is attributable to the higher efficiency of the
combined system (as compared to the efficiency of separate
production of the electric and thermal outputs), as
determined in accordance with such regulations as the
Secretary may promulgate.
``(B) Related definition.--For purposes of subparagraph
(A), the term `new combined heat and power system' means a
system that uses the same energy source for the generation of
electrical or mechanical power and the production of steam or
another form of useful thermal energy, if--
``(i) the facility at which the system is used meets such
requirements relating to efficiency and other operating
characteristics as the Secretary may promulgate by
regulation;
``(ii) the net wholesale sales of electricity by the
facility will not exceed 50 percent of total annual electric
generation by the facility; and
``(iii) the facility commences operation after June 30,
2007.
``(3) Customer facility savings.--The term `customer
facility savings' means a reduction in end-use electricity or
natural gas consumption (including recycled energy savings)
at a facility of an end-use consumer of electricity or
natural gas served by a retail electricity or natural gas
distributor, as compared to--
``(A) consumption at that facility during a base year;
``(B) in the case of new equipment, regardless of whether
the new equipment replaces existing equipment at the end of
the useful life of the existing equipment, consumption by new
equipment of average efficiency; or
``(C) in the case of a new facility, consumption at a
reference facility.
``(4) Electricity savings.--The term `electricity savings'
means, as determined in accordance with such regulations as
the Secretary may promulgate--
``(A) customer facility savings of electricity consumption,
adjusted to reflect any associated increase in fuel
consumption at the facility;
``(B) reductions in distribution system losses of
electricity achieved by a retail electricity distributor, as
compared to losses attributable to new or replacement
distribution system equipment of average efficiency (as
defined in regulations to be promulgated by the Secretary);
and
``(C) CHP savings.
``(5) Natural gas savings.--The term `natural gas savings'
means, as determined in accordance with such regulations as
the Secretary may promulgate--
[[Page S7910]]
``(A) customer facility savings of natural gas, adjusted to
reflect any associated increase in electricity consumption at
the facility; and
``(B) reductions in leakage, operational losses, and gas
fuel consumption in the operation of a gas distribution
system achieved by a retail gas distributor, as compared to
similar losses during a base year.
``(6) Recycled energy savings.--The term `recycled energy
savings' means a reduction in electricity or natural gas
consumption that is attributable to electrical or mechanical
power (or both), or thermal energy, produced by modifying an
industrial or commercial system that was in operation before
July 1, 2007, in order to recapture energy that would
otherwise be wasted.
``(7) Retail electricity or natural gas distributor.--The
term `retail electricity or natural gas distributor' means a
person or Federal or State agency that--
``(A) owns or operates an electric or natural gas
distribution facility; and
``(B) using the facility, delivers to consumers of the
energy that are not affiliated with, and that are not lessees
or tenants of, the person or agency, during the most recent
calendar year for which data are available--
``(i) more than 800,000 megawatt hours of electricity; or
``(ii) more than 1,000,000,000 cubic feet of natural gas.
``(8) Verified electricity or natural gas savings.--The
term `verified electricity or natural gas savings' means
electricity savings or natural gas savings that meet the
requirements of subsection (c).
``(b) Performance Standard.--
``(1) In general.--For calendar year 2010, and each
calendar year thereafter, each retail electricity or natural
gas distributor shall submit to the Secretary, by not later
than March 31 of the calendar year after the applicable
calendar year, a number of credits issued under subsection
(d) equal to the following percentages of the base quantity
of the retail electricity or natural gas distributor
applicable to the calendar year:
------------------------------------------------------------------------
Electricity
Year Credits (%) Natural Gas Credits (%)
------------------------------------------------------------------------
2010 0.5 0.3
------------------------------------------------------------------------
2011 1.25 0.6
------------------------------------------------------------------------
2012 2.0 1.0
------------------------------------------------------------------------
2013 3.0 1.5
------------------------------------------------------------------------
2014 4.0 2.0
------------------------------------------------------------------------
2015 5.0 2.5
------------------------------------------------------------------------
2016 6.0 3.0
------------------------------------------------------------------------
2017 7.0 3.5
------------------------------------------------------------------------
2018 8.0 4.0
------------------------------------------------------------------------
2019 9.0 4.5
------------------------------------------------------------------------
2020 10.0 5.0
------------------------------------------------------------------------
``(2) Subsequent calendar years.--For calendar year 2021
and each calendar year thereafter, each retail electricity or
natural gas distributor shall submit to the Secretary, by not
later than March 31 of the calendar year after the applicable
calendar year, a number of credits issued under subsection
(d) equal to such a percentage of the base quantity of the
retail electricity or natural gas distributor as the
Secretary may determine, by regulation, but in no case less
than the applicable percentage for calendar year 2020.
``(c) Measurement and Verification of Savings.--Not later
than June 30, 2009, the Secretary shall promulgate
regulations regarding measurement and verification of
electricity and natural gas savings under this section,
including--
``(1) procedures and standards for defining and measuring
electricity savings and natural gas savings that will be
eligible to receive credits under subsection (d)(2), which
shall--
``(A) specify the types of energy efficiency and energy
conservation measures that will be eligible for the credits;
``(B) require that energy consumption estimates for
customer facilities or portions of facilities in the
applicable base and current years be adjusted, as
appropriate, to account for changes in weather, level of
production, and building area;
``(C) account for the useful life of electricity savings
measures;
``(D) include deemed savings values for specific, commonly-
used efficiency measures;
``(E) specify the extent to which electricity savings and
natural gas savings attributable to measures carried out
before July 1, 2007, are eligible to receive credits under
this section; and
``(F) exclude savings that--
``(i) are not properly attributable to measures carried out
by the entity seeking the credit (or a designated agent of
the entity); or
``(ii) have already been credited under this section to
another entity; and
``(2) procedures and standards for third-party verification
of reported electricity savings or natural gas savings.
``(d) Credit and Trading System.--
``(1) Credit regulations.--
``(A) In general.--Not later than June 30, 2009, the
Secretary shall promulgate regulations regarding--
``(i) the issuance of credits under this section;
``(ii) a national credit trading system; and
``(iii) a system for independent monitoring of the market
for the credits.
``(B) Limitations.--In promulgating regulations under
subparagraph (A), the Secretary may establish such
limitations as the Secretary determines to be appropriate
with respect to the extent to which a retail electricity or
natural gas distributor may achieve compliance with
subsection (b) by submitting credits issued for electricity
or natural gas savings that are not customer facility savings
at a facility served by the retail electricity or natural gas
distributor.
``(C) Requirement.--In promulgating regulations under
subparagraph (A), the Secretary shall provide for the
issuance of appropriate credits for the mechanical output of
new combined heat and power systems.
``(2) Issuance of credits.--In accordance with the
regulations promulgated under paragraph (1), the Secretary
shall issue credits for--
``(A) verified electricity and natural gas savings achieved
by a retail electricity or natural gas distributor in a
certain calendar year; and
``(B) verified electricity and natural gas savings achieved
by other entities (including State agencies), if--
``(i)(I) no retail electricity or natural gas distributor
paid a substantial portion of the cost of achieving the
savings; or
``(II) if a retail electricity or natural gas distributor
paid a substantial portion of the cost of achieving the
savings, the retail electricity or natural gas distributor
has waived any entitlement to the credit; and
``(ii) the measures used to achieve the verified
electricity and natural gas savings were installed or placed
in operation by the entity seeking certification (or a
designated agent of the entity).
``(3) Value of credits.--A credit issued by the Secretary
under this subsection shall have a value of--
``(A) 1,000 kilowatt-hours, in the case of an electricity
savings credit; or
``(B) 10 therms, in the case of a natural gas savings
credit.
``(4) Fee.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall charge the recipient of a credit under this
section a fee in an amount equal to, as determined by the
Secretary, the administrative costs of issuing, recording,
monitoring the sale or exchange of, and receiving the credit.
``(B) Maximum amount.--Notwithstanding subparagraph (A),
the amount of a fee under this paragraph shall be not more
than, as applicable--
``(i) $1 for a electric credit; or
``(ii) $0.10 for a natural gas credit.
``(C) Use of funds.--The Secretary shall use fees received
under this paragraph for the administrative costs of carrying
out this subsection.
``(5) Credit sale and use.--In accordance with regulations
promulgated under paragraph (1), any entity that receives a
credit under this section may--
``(A) sell or transfer the credit to any other entity; or
[[Page S7911]]
``(B) use the credit to achieve compliance with the
performance standard under subsection (b).
``(e) Buyout Option.--In lieu of submitting credits to
achieve compliance with an applicable performance standard
under subsection (b) for a calendar year, a retail
electricity or natural gas distributor may pay to the
Secretary, by not later than March 31 of the following
calendar year, a buyout fee in an amount equal to, as
adjusted for inflation in accordance with such regulations as
the Secretary may promulgate--
``(1) $20 for each electricity savings credit otherwise
required to be submitted by the retail electricity or natural
gas distributor; or
``(2) $2 for each natural gas savings credit otherwise
required to be submitted by the retail electricity or natural
gas distributor.
``(f) State Administration.--On receipt of an application
from the Governor of a State, the Secretary may authorize the
State to administer and enforce an energy efficiency program
in the State in lieu of the program under this section, if
the Secretary determines that the State program will achieve
electricity savings and natural gas savings at least
equivalent to the electricity savings and natural gas savings
that would be required to be achieved by electricity and
natural gas distributors in the State under this section.
``(g) Information and Reports.--In accordance with section
13 of the Federal Energy Administration Act of 1974 (15
U.S.C. 774), the Secretary may require any retail electricity
or natural gas distributor or other entity that receives a
credit under this section, and any other entity as the
Secretary determines to be necessary, to provide such
information and reports, and access to any records or
facility of the entity, as the Secretary determines to be
appropriate to carry out this section.
``(h) Enforcement.--
``(1) Failure to submit credits.--Except in a case in which
a State program is carried out in lieu of the program under
this section under subsection (f), if a retail electricity or
natural gas distributor fails to submit to the Secretary any
credit required for compliance with the applicable
performance standard under subsection (b), or to pay to the
Secretary an applicable buyout payment under subsection (e),
the Secretary shall assess against the retail electricity or
natural gas distributor a civil penalty for each such failure
in an amount equal to, as adjusted for inflation in
accordance with such regulations as the Secretary may
promulgate--
``(A) $100 for each electricity savings credit or buyout
payment failed to be made by the retail electricity or
natural gas distributor; or
``(B) $10 for each natural gas savings credit or buyout
payment failed to be made by the retail electricity or
natural gas distributor.
``(2) Procedure.--The procedures under section 31(c) of the
Federal Power Act (16 U.S.C. 823b(c)) shall apply to a civil
penalty assessed under paragraph (1).
``(i) State Law.--Nothing in this section supersedes or
otherwise affects any State or local law (including
regulations) relating to electricity savings or natural gas
savings, to the extent that the State or local law requires
equal or greater electricity savings or natural gas saving
than the savings required by this section.''.
______
SA 1657. Mr. ISAKSON submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 251, line 14, strike ``(e)'' and insert the
following:
(e) Alternative Fuel Economy Standards for Low Volume
Manufacturers and New Entrants.--Section 32902(d) of title
49, United States Code, is amended to read as follows:
``(d) Alternative Average Fuel Economy Standard.--
``(1) In general.--Upon the application of an eligible
manufacturer, the Secretary of Transportation may prescribe
an alternative average fuel economy standard for automobiles
manufactured by that manufacturer if the Secretary determines
that--
``(A) the applicable standard prescribed under subsection
(a), (b), or (c) is more stringent than the maximum feasible
average fuel economy level that manufacturer can achieve; and
``(B) the alternative average fuel economy standard
prescribed under this subsection is the maximum feasible
average fuel economy level that manufacturer can achieve.
``(2) Application of alternative standard.--The Secretary
may provide for the application of an alternative average
fuel economy standard prescribed under paragraph (1) to--
``(A) the manufacturer that applied for the alternative
average fuel economy standard;
``(B) all automobiles to which this subsection applies; or
``(C) classes of automobiles manufactured by eligible
manufacturers.
``(3) Importers.--Notwithstanding paragraph (1), an
importer registered under section 30141(c) may not be
exempted as a manufacturer under paragraph (1) for an
automobile that the importer--
``(A) imports; or
``(B) brings into compliance with applicable motor vehicle
safety standards prescribed under chapter 301 for an
individual described in section 30142.
``(4) Application.--The Secretary of Transportation may
prescribe the contents of an application for an alternative
average fuel economy standard.
``(5) Eligible manufacturer defined.--In this section, the
term `eligible manufacturer' means a manufacturer that--
``(A) is not owned in part or in whole by another
manufacturer that sold greater than 0.5 percent of the number
of automobiles sold in the United States in the model year
prior to the model year to which the application relates.
``(B) sold in the United States fewer than 0.5 percent of
the number of automobiles sold in the United States in the
model year that is 2 years before the model year to which the
application relates; and
``(C) will sell in the United States fewer than 0.5 percent
of the automobiles sold in the United States for the model
year for which the alternative average fuel economy standard
will apply.''.
(f)
______
SA 1658. Mr. VITTER submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
SEC. __. USE OF COASTAL IMPACT ASSISTANCE TO IMPROVE
HURRICANE OR FLOOD PROTECTION IN RESPONSE TO
HURRICANE KATRINA OR RITA.
Section 31(d)(3) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1356a(d)(3)) is amended--
(1) by striking ``Not'' and inserting the following:
``(A) In general.--Except as provided in subparagraph (B),
no''; and
(2) by adding at the end the following:
``(B) Use for hurricane or flood protection in response to
certain hurricanes.--Subparagraph (A) shall not apply to the
extent that the 1 or more purposes are designed to improve
the level of hurricane or flood protection in an area
declared to be a major disaster in accordance with section
401 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170) in response to Hurricane
Katrina or Rita during calendar year 2005.''.
______
SA 1659. Mr. SUNUNU submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
SECTION _. CREDIT FOR BIOMASS FUEL PROPERTY EXPENDITURES.
(a) Allowance of Credit.--Subsection (a) of section 25D
(relating to allowance of credit), as amended by this Act, is
amended--
(1) by striking ``and'' at the end of paragraph (3),
(2) by striking the period at the end of paragraph (4) and
inserting ``, and'', and
(3) by adding at the end the following new paragraph:
``(5) 30 percent of the qualified biomass fuel property
expenditures made by the taxpayer during such year.''.
(b) Maximum Credit.--Paragraph (1) of section 25D(b)
(relating to maximum credit), as amended by this Act, is
amended--
(1) by striking ``and'' at the end of subparagraph (C),
(2) by striking the period at the end of subparagraph (D)
and inserting ``, and'', and
(3) by adding at the end the following new subparagraph:
``(E) $4,000 with respect to any qualified biomass fuel
property expenditures.''.
(c) Maximum Expenditures.--Subparagraph (A) of section
25D(e)(4) (relating to maximum expenditures in case of joint
occupancy) is amended--
(1) by striking ``and'' at the end of clause (ii),
(2) by striking the period at the end of clause (iii) and
inserting ``, and'', and
(3) by adding at the end the following new clause:
``(iv) $13,334 in the case of any qualified biomass fuel
property expenditures.''.
[[Page S7912]]
(d) Qualified Biomass Fuel Property Expenditures.--
Subsection (d) of section 25D (relating to definitions), as
amended by this Act, is amended by adding at the end the
following new paragraph:
``(5) Qualified biomass fuel property expenditure.--
``(A) In general.--The term `qualified biomass fuel
property expenditure' means an expenditure for property--
``(i) which uses the burning of biomass fuel to heat a
dwelling unit located in the United States and used as a
residence by the taxpayer, or to heat water for use in such a
dwelling unit, and
``(ii) which has a thermal efficiency rating of at least 75
percent.
``(B) Biomass fuel.--For purposes of this section, the term
`biomass fuel' means any plant-derived fuel available on a
renewable or recurring basis, including agricultural crops
and trees, wood and wood waste and residues (including wood
pellets), plants (including aquatic plants), grasses,
residues, and fibers.''.
(e) Effective Date.--The amendments made by this subsection
shall apply to expenditures paid or incurred in taxable years
beginning after December 31, 2007.
______
SA 1660. Mr. INHOFE (for himself and Mrs. Clinton) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
Strike sections 402 through 404 and insert the following:
SEC. 402. COST-EFFECTIVE AND GEOTHERMAL HEAT PUMP TECHNOLOGY
ACCELERATION PROGRAM.
(a) Definition of Administrator.--In this section, the term
``Administrator'' means the Administrator of General
Services.
(b) Establishment.--
(1) In general.--The Administrator shall establish a
program to accelerate the use of more cost-effective
technologies and practices and geothermal heat pumps at GSA
facilities.
(2) Requirements.--The program established under this
subsection shall--
(A) ensure centralized responsibility for the coordination
of cost reduction-related and geothermal heat pump-related
recommendations, practices, and activities of all relevant
Federal agencies;
(B) provide technical assistance and operational guidance
to applicable tenants to achieve the goal identified in
subsection (c)(2)(B)(ii); and
(C) establish methods to track the success of Federal
departments and agencies with respect to that goal.
(c) Accelerated Use of Technologies.--
(1) Review.--
(A) In general.--As part of the program under this section,
not later than 90 days after the date of enactment of this
Act, the Administrator shall conduct a review of--
(i) current use of cost-effective lighting technologies and
geothermal heat pumps in GSA facilities; and
(ii) the availability to managers of GSA facilities of
cost-effective lighting technologies and geothermal heat
pumps.
(B) Requirements.--The review under subparagraph (A)
shall--
(i) examine the use of cost-effective lighting
technologies, geothermal heat pumps, and other cost-effective
technologies and practices by Federal agencies in GSA
facilities; and
(ii) as prepared in consultation with the Administrator of
the Environmental Protection Agency, identify cost-effective
lighting technology and geothermal heat pump technology
standards that could be used for all types of GSA facilities.
(2) Replacement.--
(A) In general.--As part of the program under this section,
not later than 180 days after the date of enactment of this
Act, the Administrator shall establish, using available
appropriations, a cost-effective lighting technology and
geothermal heat pump technology acceleration program to
achieve maximum feasible replacement of existing lighting,
heating, cooling technologies with cost-effective lighting
technologies and geothermal heat pump technologies in each
GSA facility.
(B) Acceleration plan timetable.--
(i) In general.--To implement the program established under
subparagraph (A), not later than 1 year after the date of
enactment of this Act, the Administrator shall establish a
timetable, including milestones for specific activities
needed to replace existing lighting, heating, cooling
technologies with cost-effective lighting technologies and
geothermal heat pump technologies, to the maximum extent
feasible (including at the maximum rate feasible), at each
GSA facility.
(ii) Goal.--The goal of the timetable under clause (i)
shall be to complete, using available appropriations, maximum
feasible replacement of existing lighting, heating, and
cooling technologies with cost-effective lighting
technologies and geothermal heat pump technologies by not
later than the date that is 5 years after the date of
enactment of this Act.
(d) GSA Facility Technologies and Practices.--Not later
than 180 days after the date of enactment of this Act, and
annually thereafter, the Administrator shall--
(1) ensure that a manager responsible for accelerating the
use of cost-effective technologies and practices and
geothermal heat pump technologies is designated for each GSA
facility; and
(2) submit to Congress a plan, to be implemented to the
maximum extent feasible (including at the maximum rate
feasible) using available appropriations, by not later than
the date that is 5 years after the date of enactment of this
Act, that--
(A) with respect to cost-effective technologies and
practices--
(i) identifies the specific activities needed to achieve a
20-percent reduction in operational costs through the
application of cost-effective technologies and practices from
2003 levels at GSA facilities by not later than 5 years after
the date of enactment of this Act; and
(ii) describes activities required and carried out to
estimate the funds necessary to achieve the reduction
described in clause (i);
(B) includes an estimate of the funds necessary to carry
out this section;
(C) describes the status of the implementation of cost-
effective technologies and practices and geothermal heat pump
technologies and practices at GSA facilities, including--
(i) the extent to which programs, including the program
established under subsection (b), are being carried out in
accordance with this subtitle; and
(ii) the status of funding requests and appropriations for
those programs;
(D) identifies within the planning, budgeting, and
construction processes, all types of GSA facility-related
procedures that inhibit new and existing GSA facilities from
implementing cost-effective technologies or geothermal heat
pump technologies;
(E) recommends language for uniform standards for use by
Federal agencies in implementing cost-effective technologies
and practices and geothermal heat pump technologies and
practices;
(F) in coordination with the Office of Management and
Budget, reviews the budget process for capital programs with
respect to alternatives for--
(i) permitting Federal agencies to retain all identified
savings accrued as a result of the use of cost-effective
technologies and geothermal heat pump technologies; and
(ii) identifying short- and long-term cost savings that
accrue from the use of cost-effective technologies and
practices and geothermal heat pump technologies and
practices;
(G)(i) with respect to geothermal heat pump technologies,
achieves substantial operational cost savings through the
application of the technologies; and
(ii) with respect to cost-effective technologies and
practices, achieves cost savings through the application of
cost-effective technologies and practices sufficient to pay
the incremental additional costs of installing the cost-
effective technologies and practices by not later than the
date that is 5 years after the date of installation; and
(H) includes recommendations to address each of the
matters, and a plan for implementation of each
recommendation, described in subparagraphs (A) through (G).
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section, to remain available until expended.
SEC. 403. ENVIRONMENTAL PROTECTION AGENCY DEMONSTRATION GRANT
PROGRAM FOR LOCAL GOVERNMENTS.
(a) Grant Program.--
(1) In general.--The Administrator of the Environmental
Protection Agency (referred to in this section as the
``Administrator'') shall establish a demonstration program
under which the Administrator shall provide competitive
grants to assist local governments (such as municipalities
and counties), with respect to local government buildings--
(A) to deploy cost-effective technologies and practices;
and
(B) to achieve operational cost savings, through the
application of cost-effective technologies and practices, as
verified by the Administrator.
(2) Cost sharing.--
(A) In general.--The Federal share of the cost of an
activity carried out using a grant provided under this
section shall be 40 percent.
(B) Waiver of non-federal share.--The Administrator may
waive up to 100 percent of the local share of the cost of any
grant under this section should the Administrator determine
that the community is economically distressed, pursuant to
objective economic criteria established by the Administrator
in published guidelines.
(3) Maximum amount.--The amount of a grant provided under
this subsection shall not exceed $1,000,000.
(b) Guidelines.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall issue
guidelines to implement the grant program established under
subsection (a).
(2) Requirements.--The guidelines under paragraph (1) shall
establish--
(A) standards for monitoring and verification of
operational cost savings
[[Page S7913]]
through the application of cost-effective technologies and
practices reported by grantees under this section;
(B) standards for grantees to implement training programs,
and to provide technical assistance and education, relating
to the retrofit of buildings using cost-effective
technologies and practices; and
(C) a requirement that each local government that receives
a grant under this section shall achieve facility-wide cost
savings, through renovation of existing local government
buildings using cost-effective technologies and practices, of
at least 40 percent as compared to the baseline operational
costs of the buildings before the renovation (as calculated
assuming a 3-year, weather-normalized average).
(c) Compliance With State and Local Law.--Nothing in this
section or any program carried out using a grant provided
under this section supersedes or otherwise affects any State
or local law, to the extent that the State or local law
contains a requirement that is more stringent than the
relevant requirement of this section.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2007 through 2012.
(e) Reports.--
(1) In general.--The Administrator shall provide annual
reports to Congress on cost savings achieved and actions
taken and recommendations made under this section, and any
recommendations for further action.
(2) Final report.--The Administrator shall issue a final
report at the conclusion of the program, including findings,
a summary of total cost savings achieved, and recommendations
for further action.
(f) Termination.--The program under this section shall
terminate on September 30, 2012.
SEC. 404. DEFINITIONS.
In this subtitle:
(1) Cost-effective lighting technology.--
(A) In general.--The term ``cost-effective lighting
technology'' means a lighting technology that--
(i) will result in substantial operational cost savings by
ensuring an installed consumption of not more than 1 watt per
square foot; or
(ii) is contained in a list under--
(I) section 553 of Public Law 95-619 (42 U.S.C. 8259b); and
(II) Federal acquisition regulation 23-203.
(B) Inclusions.--The term ``cost-effective lighting
technology'' includes--
(i) lamps;
(ii) ballasts;
(iii) luminaires;
(iv) lighting controls;
(v) daylighting; and
(vi) early use of other highly cost-effective lighting
technologies.
(2) Cost-effective technologies and practices.--The term
``cost-effective technologies and practices'' means a
technology or practice that--
(A) will result in substantial operational cost savings by
reducing utility costs; and
(B) complies with the provisions of section 553 of Public
Law 95-619 (42 U.S.C. 8259b) and Federal acquisition
regulation 23-203.
(3) Operational cost savings.--
(A) In general.--The term ``operational cost savings''
means a reduction in end-use operational costs through the
application of cost-effective technologies and practices or
geothermal heat pumps, including a reduction in electricity
consumption relative to consumption by the same customer or
at the same facility in a given year, as defined in
guidelines promulgated by the Administrator pursuant to
section 403(b), that achieves cost savings sufficient to pay
the incremental additional costs of using cost-effective
technologies and practices or geothermal heat pumps by not
later than--
(i) for cost-effective technologies and practices, the date
that is 5 years after the date of installation; and
(ii) for geothermal heat pumps, as soon as practical after
the date of installation of the applicable geothermal heat
pump.
(B) Inclusions.--The term ``operational cost savings''
includes savings achieved at a facility as a result of--
(i) the installation or use of cost-effective technologies
and practices; or
(ii) the planting of vegetation that shades the facility
and reduces the heating, cooling, or lighting needs of the
facility.
(C) Exclusion.--The term ``operational cost savings'' does
not include savings from measures that would likely be
adopted in the absence of cost-effective technology and
practices programs, as determined by the Administrator.
(4) Geothermal heat pump.--The term ``geothermal heat
pump'' means any heating or air conditioning technology
that--
(A) uses the ground or ground water as a thermal energy
source to heat, or as a thermal energy sink to cool, a
building; and
(B) meets the requirements of the Energy Star program of
the Environmental Protection Agency applicable to geothermal
heat pumps on the date of purchase of the technology.
(5) GSA facility.--
(A) In general.--The term ``GSA facility'' means any
building, structure, or facility, in whole or in part
(including the associated support systems of the building,
structure, or facility) that--
(i) is constructed (including facilities constructed for
lease), renovated, or purchased, in whole or in part, by the
Administrator for use by the Federal Government; or
(ii) is leased, in whole or in part, by the Administrator
for use by the Federal Government--
(I) except as provided in subclause (II), for a term of not
less than 5 years; or
(II) for a term of less than 5 years, if the Administrator
determines that use of cost-effective technologies and
practices would result in the payback of expenses.
(B) Inclusion.--The term ``GSA facility'' includes any
group of buildings, structures, or facilities described in
subparagraph (A) (including the associated energy-consuming
support systems of the buildings, structures, and
facilities).
(C) Exemption.--The Administrator may exempt from the
definition of ``GSA facility'' under this paragraph a
building, structure, or facility that meets the requirements
of section 543(c) of Public Law 95-619 (42 U.S.C. 8253(c)).
______
SA 1661. Mr. CARPER submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
SEC. __. MODIFICATION OF EMISSION STANDARD FOR NEW QUALIFIED
ADVANCED LEAN BURN MOTOR VEHICLE CREDIT.
Subclause (I) of section 30B(c)(3)(A)(iv) of the Internal
Revenue Code of 1986 is amended by inserting ``(the Bin 8
Tier II emission standard so established in the case of a
2009 model vehicle)'' after ``model year vehicle''.
______
SA 1662. Ms. KLOBUCHAR (for herself, Mr. Bond, Mr. Nelson of
Nebraska, Mr. Voinovich, Mr. Kerry, and Mr. Hagel) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
At the end of subtitle B of title I, add the following:
SEC. 131. RENEWABLE FUELS INFRASTRUCTURE DEVELOPMENT.
(a) Definition of Renewable Fuel.--In this section, the
term ``renewable fuel'' means--
(1) any fuel at least 85 percent of the volume of which
consists of ethanol; and
(2) any mixture of biodiesel (as defined in section
40A(d)(1) of the Internal Revenue Code of 1986) and diesel
fuel (as defined in section 4083(a)(3) of that Code),
determined without regard to any use of kerosene, that
contains at least 20 percent biodiesel.
(b) Infrastructure Development Grant Program.--
(1) In general.--The Secretary shall establish a program
under which the Secretary shall provide grants to retail and
wholesale motor fuel dealers and other entities for the
installation, replacement, or conversion of motor fuel
storage and dispensing infrastructure that will be used
exclusively to store and dispense renewable fuel, including
equipment used in the blending, distribution, and transport
of those fuels.
(2) Application.--
(A) In general.--To be eligible to receive a grant under
this subsection, an entity shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require.
(B) Combined applications.--
(i) In general.--A local government entity or a nonprofit
entity may submit to the Secretary an application to receive
a grant under this subsection--
(I) on behalf of a group of retailers within a certain
geographical area; or
(II) to carry out a regional or multistate deployment
project.
(ii) Inclusions.--An application under clause (i) shall
include--
(I) a description of the proposed project of the local
government entity or a nonprofit entity;
(II) a certification of the ability of the local government
entity or nonprofit entity to provide the non-Federal share
of the cost of the proposed project, as required under
subsection (e); and
(III) a list containing the name and location of each
retailer that will receive the funds.
(c) Retail Technical and Marketing Assistance.--
(1) In general.--The Secretary shall offer to enter into
contracts with entities with
[[Page S7914]]
demonstrated experience in assisting retail fueling stations
in installing refueling systems and marketing renewable fuels
nationally, for the provision of technical and marketing
assistance to recipients of grants under this section.
(2) Inclusions.--Assistance provided under paragraph (1)
shall include--
(A) technical advice relating to compliance with applicable
Federal and State environmental requirements;
(B) help in identifying supply sources and securing long-
term contracts; and
(C) the provision of public outreach, education, and
labeling materials.
(3) Allocation.--Of amounts made available to carry out the
grant program under subsection (b), the Secretary shall
reserve not less than 15 percent for the provision of
technical and marketing assistance under this subsection.
(d) Selection Criteria.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall establish
criteria for evaluating applications for grants under this
section in a manner that will maximize the availability and
use of renewable fuels, including criteria that provide for
priority consideration for applications that, as determined
by the Secretary--
(1) are most likely to maximize displacement of petroleum
consumption, measured as a total quantity and a percentage;
(2) are best able to incorporate existing infrastructure
while maximizing, to the extent practicable, the use of
renewable fuels; and
(3) demonstrate--
(A) the greatest commitment on the part of the applicant to
ensure funding for the proposed project; and
(B) the greatest likelihood that the project will be
maintained or expanded after the assistance provided under
this section is expended.
(e) Limitation.--The amount of assistance provided to an
entity under this section shall not exceed, as applicable--
(1) an amount equal to 20 percent of the estimated cost of
the installation, replacement, or conversion of motor fuel
storage and dispensing infrastructure; or
(2) $100,000 for a combination of equipment at any retail
outlet location.
(f) Regulations.--The Secretary shall promulgate such
regulations as the Secretary determines to be necessary to
carry out this section, including regulations requiring
entities that receive assistance under this section--
(1) to provide to the public renewable fuel;
(2) to establish a marketing plan that informs consumers of
the price and availability of the renewable fuel;
(3) to clearly label renewable fuel dispensers and related
equipment; and
(4) to submit to the Secretary periodic reports on the
status of--
(A) the renewable fuel sales of the entity;
(B) the type and quantity of renewable fuel dispensed at
each location of the entity; and
(C) the average price of the renewable fuel.
(g) Notification Requirements.--
(1) In general.--On or before the date on which an
renewable fuel station for which assistance is provided under
this section opens to offer renewable fuel to the public, the
owner or operator of the station shall submit to the
Secretary a notice of the opening.
(2) Action by secretary.--On receipt of a notice under
paragraph (1), the Secretary shall include the name and
location of the applicable renewable fuel station on a list
to be published and maintained on the website of the
Secretary.
(h) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$25,000,000, to remain available until expended.
______
SA 1663. Mr. MARTINEZ submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 27, after line 23, add the following:
SEC. 1__. SUBSTANTIALLY SIMILAR FUELS.
(a) Treatment of Certain Gasoline.--Section 211(f)(1) of
the Clean Air Act (42 U.S.C. 7545(f)(1) is amended by adding
at the end the following:
``(C) Treatment of certain gasoline.--
``(i) In general.--For the purpose of this subsection,
gasoline described in clause (ii) shall be considered to be
substantially similar to any fuel or fuel additive used in
the certification of any model year 1975 vehicle or engine.
``(ii) Description of gasoline.--Gasoline referred to in
clause (i) is gasoline that contains--
``(I) not more than 3.7 percent oxygen, by weight, such
that the oxygen weight of gasoline is not greater than the
equivalent oxygen weight in E-10 gasoline: or
``(II) a greater quantity of oxygen, as the Administrator
may determine by regulation.''.
(b) Rulemaking.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency shall conduct a rulemaking to revise
regulations under section 80.27 of title 40, Code of Federal
Regulations (as in effect on the date of enactment of this
Act), promulgated under section 211(h) of the Clean Air Act
(42 U.S.C. 7545(h)), to clarify the maximum allowable
quantity of ethanol, in fuels that are considered to be
substantially similar and permitted to be introduced into
commerce under section 211(f) of that Act (42 U.S.C.
7545(f)), that may be replaced by biobutanol and other
higher-molecular-weight alcohol cosolvents.
(2) Effect of section.--Except with respect to the
rulemaking required under paragraph (1), nothing in this
section or the amendment made by subsection (a) affects
section 211(h) of the Clean Air Act (42 U.S.C. 7545(h)).
______
SA 1664. Ms. KLOBUCHAR (for herself and Ms. Cantwell) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
On page 47, after line 23, add the following:
SEC. 131. RIGHT TO RETAIL RENEWABLE FUEL.
(a) Prohibition on Restriction of Installation of
Alternative Fuel Pumps.--Title I of the Petroleum Marketing
Practices Act (15 U.S.C. 2801 et seq.) is amended by adding
at the end the following:
``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF
ALTERNATIVE FUEL PUMPS.
``(a) Definitions.--In this section--
``(1) the term `alternative fuel' means any fuel--
``(A) at least 85 percent of the volume (or any other
percentage, but not less than 70 percent, as determined by
the Secretary, by rule, to provide for requirements relating
to cold start, safety, or vehicle functions) of which
consists of ethanol, natural gas, compressed natural gas,
liquefied natural gas, liquefied petroleum gas, hydrogen, or
any combination of such fuels; or
``(B) that consists of any mixture of biodiesel (as defined
in section 40A(d)(1) of the Internal Revenue Code of 1986)
and diesel fuel (as defined in section 4083(a)(3) of the
Internal Revenue Code of 1986), determined without regard to
any use of kerosene and containing at least 20 percent
biodiesel; and
``(2) the term `franchise-related document' means--
``(A) a franchise under this Act; and
``(B) any other contract or directive of a franchisor
related to terms or conditions of the sale of fuel by a
franchisee.
``(b) Prohibitions.--(1) Notwithstanding any provision of a
franchise-related document in effect on the date of the
enactment of this section, a franchisee or affiliate of a
franchisee may not be restricted from--
``(A) installing on the marketing premises of the
franchisee an alternative fuel pump;
``(B) converting an existing tank and pump on the marketing
premises of the franchisee for alternative fuel use;
``(C) advertising (including through the use of signage or
logos) the sale of any alternative fuel; or
``(D) selling alternative fuel in any specified area on the
marketing premises of the franchisee (including any area in
which a name or logo of a franchisor or any other entity
appears).
``(2)(A) Any restriction described in paragraph (1) that is
contained in a franchise-related document and in effect on
the date of enactment of this section--
``(i) shall be considered to be null and void as of that
date; and
``(ii) may not be enforced under section 105.
``(B)(i) It shall be an unfair or deceptive act or practice
in or affecting commerce (within the meaning of subsections
(a)(1) and (n) of section 5 of the Federal Trade Commission
Act (15 U.S.C. 45)) for any person to violate the
requirements of this section. For purposes of the Federal
Trade Commission Act (15 U.S.C. 41 et seq.), including any
remedy or penalty applicable to any violation of such Act,
such a violation shall be treated as a violation of a rule
under such Act respecting unfair or deceptive acts or
practices.
``(ii) The Federal Trade Commission shall enforce the
requirements of this section. All of the functions and powers
of the Federal Trade Commission under the Federal Trade
Commission Act are available to the Commission to enforce
compliance by any person subject to the jurisdiction of the
Commission with the requirements imposed under this section.
``(c) Exception to 3-Grade Requirement.--A franchise-
related document that requires that 3 grades of gasoline be
sold by the applicable franchisee shall not prevent the
franchisee from selling an alternative fuel instead of 1
grade of gasoline.''.
(b) Conforming Amendments.--
(1) In general.--Section 101(13)(C) of the Petroleum
Marketing Practices Act (15 U.S.C. 2801(13)(C)) is amended by
striking ``(C)'' and all that follows through ``failure'' and
inserting the following:
``(C) any failure''.
(2) Table of contents.--The table of contents for such Act
(15 U.S.C. 2801 note) is
[[Page S7915]]
amended by inserting after the item relating to section 106
the following:
``Sec. 107. Prohibition on restriction of installation of alternative
fuel pumps.''.
______
SA 1665. Mr. SALAZAR (for himself and Mr. Brown) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
Beginning on page 117, strike line 21 and all that follows
through page 118, line 7, and insert the following:
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary shall establish a
research and development program to determine ways in which--
(1) the weight of vehicles may be reduced to improve fuel
efficiency without compromising passenger safety;
(2) new materials (including cast metal composite
materials) with a higher strength to weight ratio may be
developed;
(3) the cost of lightweight materials (such as steel
alloys, fiberglass, and metal and carbon composites) required
for the construction of lighter-weight vehicles may be
reduced; and
(4) the efficiency of automated manufacturing processes to
produce materials with a higher strength to weight ratio may
be improved.
______
SA 1666. Mr. INHOFE (for himself, Mr. Burr, and Mrs. Dole) submitted
an amendment intended to be proposed to amendment SA 1502 proposed by
Mr. Reid to the bill H.R. 6, to reduce our Nation's dependency on
foreign oil by investing in clean, renewable, and alternative energy
resources, promoting new emerging energy technologies, developing
greater efficiency, and creating a Strategic Energy Efficiency and
Renewables Reserve to invest in alternative energy, 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. 113. AGRICULTURE EQUITY.
(a) Assessment of Food and Feed Availability.--
(1) In general.--The Administrator of the Environmental
Protection Agency (referred to in this section as the
``Administrator'') shall conduct an assessment of the
availability of corn for food and feed uses by not later than
July 31 and November 30 of each calendar year after the date
of enactment of this Act.
(2) Regional weather conditions.--
(A) In general.--Not later than August 1, 2007, and
annually thereafter, the Administrator, in consultation with
the Secretary of Agriculture, the Secretary of Commerce, and
the Association of American Feed Control Officials, shall
submit to Congress, and publish in the Federal Register, an
assessment of the Administrator regarding--
(i) regional weather conditions during the current crop
year; and
(ii) the impact of the conditions on projected local corn
supplies.
(B) Factors for consideration.--In conducting the
assessment under subparagraph (A), the Administrator shall
take into consideration, as applicable--
(i) the impacts of drought, including reduced
precipitation;
(ii) the impacts of flooding, including increased
precipitation; and
(iii) projected local demand for corn during the following
crop year.
(3) Estimates.--
(A) In general.--Not later than December 1, 2007, and
annually thereafter, the Administrator shall conduct an
assessment of the most current estimates of the ratio that,
with respect to the marketing year beginning in September of
the calendar year in which the assessment is conducted--
(i) United States domestic ending stocks of corn; bears to
(ii) total use of corn.
(B) Factors for consideration.--In conducting the
assessment under subparagraph (A), the Administrator shall
take into consideration, and rely on, the data published by
the Secretary of Agriculture in the monthly report entitled
``World Agricultural Supply and Demand Estimates'' (or
similar public and authoritative estimates provided by the
Secretary of Agriculture).
(b) Potential Economic and Consumer Harm Assessment.--
(1) Regional weather conditions.--If the Administrator
determines that an assessment of the Administrator under
subsection (a)(2) indicates that there is a reasonable
likelihood that the ratio described in subsection (a)(3)(A)
will be equal to or less than 0.10, the Administrator shall
publish the determination in the Federal Register by not
later than 14 days after the date on which the determination
is made.
(2) Estimates.--If the Administrator determines that an
assessment of the Administrator under subsection (a)(3)
indicates that there is a reasonable likelihood that the
ratio described in subsection (a)(3)(A) will be equal to or
less than 0.10, the Administrator, in consultation with the
Secretary and the Secretary of Agriculture, shall publish, by
not later than 14 days after the date on which the
determination is made, the intention of the Administrator to
request the President to modify a portion of the requirement
described in section 111(a)(2).
(3) Regional disruption.--If the Administrator determines
that an assessment of the Administrator under subsection
(a)(2) indicates that a regional disruption to the
availability of feed corn with respect to livestock producers
will occur, the Administrator, in consultation with the
Secretary of Agriculture, shall develop and implement a plan
to ensure that regional food and feed supplies are
maintained, to the maximum extent practicable, including
through adjustments to the applicable renewable fuels
standard under section 111(a) in the affected region.
(c) Actions to Prevent Economic and Consumer Harm.--
(1) In general.--Subject to paragraph (2), the
Administrator may submit to the President a petition to
request a modification of a requirement under the renewable
fuels standard under section 111(a) in a quantity of gallons
sufficient to ensure, to the maximum extent practicable, that
the ratio described in subsection (a)(3)(A) will be at least
0.10.
(2) Limitation.--A requirement under the renewable fuels
standard under section 111(a) shall not be reduced by more
than 15 percent during any calendar year.
(3) Effective period.--A modification under paragraph (1)
shall be effective during the 1-year period beginning on the
effective date of the modification.
(d) Public Participation.--
(1) In general.--The Administrator shall--
(A) make each assessment conducted, and each modification
provided, pursuant to this section available to the public;
and
(B) provide an opportunity for public comment relating to
each assessment and modification for a period of not more
than 30 days.
(2) Modifications.--Not later than 14 days after the end of
the comment period described in paragraph (1)(B), the
President shall promulgate the modification that is the
subject to the comment period, unless the President, in
consultation with the Administrator, determines that clear
and compelling evidence demonstrates that the modification
would not have a material effect on the quantity of corn
available for food and feed use.
______
SA 1667. Mr. INHOFE submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 23, between lines 22 and 23, insert the following:
(iii) Treatment of certain refiners and refineries.--
(I) In general.--A refiner shall be eligible for an
extension of an exemption under clause (ii) as a small
business refiner after December 31, 2007, if the refiner
makes an election under section 179C of the Internal Revenue
Code of 1986.
(II) Small refineries.--A small refinery owned by a refiner
described in subclause (I) shall be eligible for an extension
of an exemption under clause (ii) as a small refinery after
December 31, 2007, if the refinery makes an election under
section 179C of the Internal Revenue Code of 1986.
(III) Mergers and acquisitions.--An entity that is the
result of a merger or acquisition by 1 or more refiners shall
not be eligible for an extension under subclause (I) unless
the merger or acquisition involves only refineries of small
business refiners described in that subclause.
______
SA 1668. Mr. INHOFE submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the end of subtitle C of title I, add the following:
SEC. 151. STUDY OF INCREASED CONSUMPTION OF ETHANOL-BLENDED
GASOLINE WITH HIGHER LEVELS OF ETHANOL.
(a) In General.--The Administrator of the Environmental
Protection Agency, in cooperation with the Secretary, the
Secretary
[[Page S7916]]
of Agriculture, and the Secretary of Transportation, and
after providing notice and an opportunity for public comment,
shall conduct a study of the feasibility of increasing
consumption in the United States of ethanol-blended gasoline
with levels of ethanol of not less than 10 percent and not
more than 40 percent.
(b) Study.--The study under subsection (a) shall include--
(1) a review of production and infrastructure constraints
on increasing the consumption of ethanol;
(2) an evaluation of the economic, market, and energy
impacts of State and regional differences in ethanol blends;
(3) an evaluation of the economic, market, and energy
impacts on gasoline retailers and consumers of separate and
distinctly-labeled fuel storage facilities and dispensers;
(4) an evaluation on the environmental impacts of mid-level
ethanol blends on evaporative and exhaust emissions from on-
road, off-road and marine engines, recreational boats,
vehicles, and equipment;
(5) an evaluation of the impacts of mid-level ethanol
blends on the operation, durability and performance of
onroad, off-road, and marine engines, recreational boats,
vehicles, and equipment; and
(6) an evaluation of the safety impacts of mid-level
ethanol blends on consumers that own and operate off-road and
marine engines, recreational boats, vehicles, or equipment.
(c) Report.--Not later than 18 months after the date of
enactment of this Act, the Administrator shall submit to
Congress a report describing the results of the study
conducted under this section.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Administrator to carry out the
study under this section $1,000,000.
(e) Technical Amendment.--Section 211(f)(4) of the Clean
Air Act (42 U.S.C. 7545(f)(4)) is amended by striking the
last sentence and inserting the following: ``The
Administrator, after providing notice and an opportunity for
public comment, shall approve or deny an application
submitted under this paragraph by not later than 270 days
after the date of receipt of the application.''.
______
SA 1669. Mr. INHOFE submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
SEC. ___. EMERGENCY SERVICE ROUTE.
Section 1948 of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users (Public Law
109-59; 119 Stat. 1514) is repealed.
______
SA 1670. Ms. MURKOWSKI (for herself and Mr. Stevens) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
At the end, add the following:
TITLE VIII--COASTAL PLAIN STRATEGIC PETROLEUM READY RESERVE
SEC. 801. SHORT TITLE.
This title may be cited as the ``Coastal Plain Strategic
Petroleum Ready Reserve Act of 2007''.
SEC. 802. FINDINGS; PURPOSES.
(a) Findings.--Congress finds that--
(1) domestic production of crude oil is in sharp decline;
(2) more than 60 percent of the oil consumed in the United
States is imported;
(3) traditional sources of foreign oil supply, including
the Middle East, are facing terrorism, armed conflicts,
instability, and political uncertainty, which increase the
vulnerability and threaten the security of the oil imports on
which the United States has become so dependent;
(4) crude oil production in Alaska, a major source of
domestic oil for the United States has decreased from
approximately 2,000,000 barrels a day in 1991 to
approximately 800,000 barrels a day in 2007;
(5) the approximately 1,500,000-acre Coastal Plain area of
the 19,000,000-acre Arctic National Wildlife Refuge is
projected to contain--
(A) a median of 10,400,000,000 barrels of oil; and
(B) very large reserves of natural gas;
(6) there are legislative measures pending in Congress to
designate all or a portion of the Coastal Plain as a
wilderness, which would prevent the large crude oil and
natural gas reserves of the Coastal Plain from being used as
a strategic petroleum reserve; and
(7) the proposed designation of the Coastal Plain as
wilderness is contrary to the critically important interests
of the security and energy policy of the United States.
(b) Purposes.--The purposes of this title are--
(1) to designate the public land of the Coastal Plain area
of the Arctic National Wildlife Refuge as a strategic
petroleum reserve;
(2) to ensure that the reserves of crude oil and natural
gas in the Coastal Plain are ready, but not actually made
available until authorized by Act of Congress, for commercial
production; and
(3) in recognition of the long lead times in Alaska
associated with the transition from expressions of industry
interest in leasing, exploration, and development of crude
oil and natural gas to the actual leasing, exploration, and
development, to authorize seismic and exploration activities
in the Coastal Plain so that production of crude oil and
natural gas can proceed in the Coastal Plain if Congress
determines, after the date of enactment of this Act, that
production of oil and natural gas in the Coastal Plain is
necessary based on--
(A) the need for domestic oil; and
(B) political uncertainties and instability in major
producing regions of the world.
SEC. 803. DEFINITIONS.
In this title:
(1) Coastal plain.--The term ``Coastal Plain'' means--
(A) the approximately 1,500,000 acres of land described in
Appendix I to part 37 of subchapter C of chapter 1 of title
50, Code of Federal Regulations; and
(B) land within the exterior boundaries of the Refuge that
is north of the area described in subparagraph (A).
(2) Exploratory activity.--The term ``exploratory
activity'' means an activity described in subparagraph (A),
(B), or (C) of section 804(c)(1).
(3) Final statement.--The term ``Final Statement'' means
the final legislative environmental impact statement on the
Coastal Plain, dated April 1987, and 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)).
(4) Refuge.--The term ``Refuge'' means the Arctic National
Wildlife Refuge in the State.
(5) Reserve.--The term ``Reserve'' means the Coastal Plain
Strategic Petroleum Ready Reserve designated by section
804(a).
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(7) State.--The term ``State'' means the State of Alaska.
(8) Winter.--The term ``winter'' means the applicable
period of time defined for the winter season by the State
Department of Natural Resources.
SEC. 804. COASTAL PLAIN STRATEGIC PETROLEUM READY RESERVE.
(a) In General.--The public land in the Coastal Plain is
designated as the Coastal Plain Strategic Petroleum Ready
Reserve.
(b) Administration.--The public land in the Reserve shall
be administered by the Secretary in accordance with--
(1) any law applicable to the Coastal Plain; and
(2) this title.
(c) Authorized Exploratory Activities.--
(1) In general.--To enable the Secretary to expeditiously
open the Coastal Plain to oil and natural gas production if
Congress authorizes such production in the Reserve in
accordance with section 807, beginning not later than winter
2008, the Secretary shall conduct, or shall enter into 1 or
more contracts with other Federal agencies or private
entities for the conduct of the following activities on
public land in the Reserve and private land of the Kaktovik
Inupiat Corporation or the Arctic Slope Regional Corporation
in the Coastal Plain:
(A) Seismic exploration activities.
(B) Exploratory drilling to delineate the locations and
provide firm estimates of the quantities of oil and natural
gas holdings.
(C) The provision of any infrastructure necessary for the
exploratory activities.
(2) Contract terms and conditions.--A contract for the
conduct of exploratory activity entered into by the Secretary
under paragraph (1) shall--
(A) provide that the Secretary may close, on a seasonal
basis, such portions of the Coastal Plain to exploratory
drilling activities as are necessary to protect caribou
calving areas and other species of fish and wildlife;
(B) provide that the Federal Government shall be fully
responsible and liable for the reclamation of land within the
Coastal Plain and any other Federal land that is adversely
affected in connection with exploratory activities within the
Coastal Plain conducted under this title;
(C) contain terms and conditions relating to protection of
fish and wildlife, fish and wildlife habitat, subsistence
resources, and the environment as required under paragraph
(3); and
(D) contain such other provisions as the Secretary
determines to be necessary to ensure compliance with this
title and regulations issued under this title.
[[Page S7917]]
(3) Limitation.--Any exploratory activity authorized under
paragraph (1) shall be conducted only during the winter
unless the President authorizes the exploratory activity to
be conducted during additional periods based on a finding by
the President that there is a national oil shortage.
(4) Applicable law.--The Secretary shall conduct any
exploratory activity authorized under paragraph (1) in
accordance with applicable land use and environmental laws,
including any regulations promulgated by the Secretary to
carry out this title.
(d) Private Land Protections.--
(1) In general.--The designation of the Reserve under
subsection (a) does not affect property rights or title to
private land located within the Coastal Plain that is owned
by--
(A) the Kaktovik Inupiat Corporation; or
(B) the Arctic Slope Regional Corporation.
(2) Access.--Access to and across the Reserve, including
right-of-way access by Kaktovik Inupiat Corporation, Arctic
Slope Regional Corporation, and shareholders of the
Corporations, shall be permitted--
(A) for--
(i) subsistence, customary, and traditional uses; and
(ii) reasonable commercial purposes; and
(B) for access in accordance with sections 1110 and 1111 of
the Alaska National Interest Lands Conservation Act (16
U.S.C. 3170, 3171).
(3) Limitation on leasing and commercial production
activities.--
(A) In general.--The Secretary shall not conduct any oil or
natural gas production activity in the Reserve unless--
(i) the maximum quantity of surface acreage covered by
production and support facilities (including airstrips and
any area covered by gravel berms or piers for support of
pipelines) does not exceed 2,000 acres on the Coastal Plain;
(ii) the President submits to Congress--
(I) a finding that oil or natural gas production in the
Reserve is necessary for the economic or national security of
the United States; and
(II) a plan for the production and storage of oil or
natural gas produced from the Reserve; and
(iii) the oil or natural gas production is specifically
authorized by an Act of Congress in accordance with section
807.
(B) Costs.--The costs of any natural gas leasing or
commercial production activity authorized under subparagraph
(A) shall be paid by the United States.
(C) Use.--Any oil or natural gas produced in accordance
with subparagraph (A) shall be made available for sale only
in accordance with section 161 of the Energy Policy and
Conservation Act (42 U.S.C. 6241).
(D) Royalties.--Any royalties or revenues from the sale of
oil or natural gas under subparagraph (C) shall be allocated
in accordance with applicable law.
(4) Infrastructure.--The Secretary may construct any
infrastructure authorized under subsection (c)(1)(C) on
private land in the Reserve only with the consent of the
owner of the private land.
SEC. 805. COMPLIANCE WITH REQUIREMENTS UNDER CERTAIN LAWS.
(a) Compatibility.--For purposes of the National Wildlife
Refuge System Administration Act of 1966 (16 U.S.C. 668dd et
seq.)--
(1) the exploratory activities authorized in the Reserve
under this title shall be considered to be compatible with
the purposes for which the Refuge was established; and
(2) no further findings or decisions shall be required to
implement the exploratory activities.
(b) Adequacy of Final Statement.--The Final Statement shall
be considered to satisfy the requirements under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
that apply with respect to pre-seismic and pre-exploration
drilling activities, including actions authorized to be taken
by the Secretary to develop and promulgate the regulations
for the conduct of exploratory activities authorized by this
title before the conduct of the activities.
(c) Compliance With NEPA for Other Actions.--
(1) In general.--Before conducting exploratory activities
under this title, the Secretary shall prepare an
environmental impact statement in accordance with the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) with respect to the actions authorized by this title
that are not referred to in paragraph (2).
(2) Identification and analysis.--Notwithstanding any other
provision of law, in carrying out this subsection, the
Secretary shall not be required--
(A) to identify nonexploratory alternative courses of
action; or
(B) to analyze the environmental effects of those courses
of action.
(3) Identification of preferred action.--Not later than 18
months after the date of enactment of this Act, the Secretary
shall--
(A) identify only a preferred action and a single
alternative for exploratory activities; and
(B) analyze the environmental effects and potential
mitigation measures for those 2 alternatives.
(4) Public comments.--In carrying out this subsection, the
Secretary shall consider only public comments that are filed
not later than 20 days after the date of publication of an
environmental analysis.
(5) Effect of compliance.--Notwithstanding any other
provision of law, compliance with this subsection shall be
considered to satisfy all requirements for the analysis and
consideration of the environmental effects of proposed
exploratory activities under this title.
SEC. 806. COASTAL PLAIN ENVIRONMENTAL PROTECTION.
(a) No Significant Adverse Effect Standard To Govern
Authorized Coastal Plain Activities.--The Secretary shall
administer this title through regulations, terms, conditions,
restrictions, prohibitions, stipulations, and other
provisions that--
(1) ensure, to the maximum extent practicable, that
exploratory activities will result in no significant adverse
effect on fish and wildlife, fish and wildlife habitat, and
the environment of the Coastal Plain; and
(2) require the application of the best commercially
available technology for oil and gas exploration operations.
(b) Site-Specific Assessment and Mitigation.--The Secretary
shall require, with respect to any proposed exploratory
drilling activities on the Coastal Plain, that--
(1) a site-specific environmental analysis be made of the
probable effects, if any, that the drilling or related
activities will have on fish and wildlife, fish and wildlife
habitat, subsistence resources, subsistence uses, and the
environment;
(2) a plan be implemented to avoid, minimize, and mitigate
(in that order and to the maximum extent practicable) any
significant adverse effect identified under paragraph (1);
and
(3) the development of the plan occur after consultation
with each agency having jurisdiction over matters mitigated
by the plan.
(c) Regulations To Protect Coastal Plain Fish and Wildlife
Resources, Subsistence Users, and the Environment.--Before
conducting any exploratory activities authorized by this
title, the Secretary shall prepare and issue regulations,
terms, conditions, restrictions, prohibitions, stipulations,
and other measures designed to ensure, to the maximum extent
practicable, that the exploratory activities carried out on
the Coastal Plain under this title are conducted in a manner
consistent with the purposes and environmental requirements
of this title.
(d) Compliance With Federal and State Environmental Laws
and Other Requirements.--The proposed regulations, terms,
conditions, restrictions, prohibitions, and stipulations for
carrying out this title shall require--
(1) compliance with all applicable provisions of Federal
and State environmental law (including regulations);
(2) implementation of and compliance with--
(A) standards that are at least as effective as the safety
and environmental mitigation measures, as described in items
1 through 29 on pages 167 through 169 of the Final Statement,
on the Coastal Plain;
(B) seasonal limitations on exploratory activities, as
necessary, to avoid significant adverse effects during
periods of concentrated fish and wildlife breeding, denning,
nesting, spawning, and migration;
(C) appropriate prohibitions or restrictions on--
(i) access by all modes of transportation;
(ii) sand and gravel extraction; and
(iii) use of explosives;
(D) reasonable stipulations for protection of cultural and
archaeological resources;
(E) measures to protect groundwater and surface water,
including--
(i) avoidance, to the maximum extent practicable, of
springs, streams, and river systems;
(ii) the protection of natural surface drainage patterns,
wetland, and riparian habitats; and
(iii) the regulation of methods or techniques for
developing or transporting adequate supplies of water for
exploratory drilling; and
(F) research, monitoring, and reporting requirements;
(3) that exploratory activities (except surface geological
studies) be limited to the period between approximately
November 1 and May 1 of each year and be supported, if
necessary, by ice roads, winter trails with adequate snow
cover, ice pads, ice airstrips, and air transport methods
(except that those exploration activities may be permitted at
other times if the Secretary determines that the exploratory
activities will have no significant adverse effect on fish
and wildlife, fish and wildlife habitat, and the environment
of the Coastal Plain);
(4) avoidance or reduction of air traffic-related
disturbance to fish and wildlife;
(5) treatment and disposal of hazardous and toxic wastes,
solid wastes, reserve pit fluids, drilling muds and cuttings,
and domestic wastewater, including, in accordance with
applicable Federal and State environmental laws (including
regulations)--
(A) preparation of an annual waste management report;
(B) development and implementation of a hazardous materials
tracking system; and
(C) prohibition on the use of chlorinated solvents;
(6) fuel storage and oil spill contingency planning;
(7) conduct of periodic field crew environmental briefings;
(8) avoidance of significant adverse effects on subsistence
hunting, fishing, and trapping;
(9) compliance with applicable air and water quality
standards;
(10) appropriate seasonal and safety zone designations
around well sites, within which
[[Page S7918]]
subsistence hunting and trapping shall be limited; and
(11) development and implementation of such other
protective environmental requirements, restrictions, terms,
and conditions as the Secretary determines to be necessary.
(e) Considerations.--In preparing and issuing regulations,
terms, conditions, restrictions, prohibitions, and
stipulations under this section, the Secretary shall take
into consideration--
(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 through 37.33 of title 50, Code of Federal
Regulations (or successor regulations); and
(3) the land use stipulations for exploratory drilling on
the KIC-ASRC private land described in Appendix 2 of the
agreement between Arctic Slope Regional Corporation and the
United States dated August 9, 1983.
(f) Facility Consolidation Planning.--
(1) In general.--After providing for public notice and
comment, the Secretary shall prepare and periodically update
a plan to govern, guide, and direct the siting and
construction of facilities for the exploration of oil and gas
resources from the Coastal Plain.
(2) Objectives.--The objectives of the plan shall be--
(A) the avoidance of unnecessary duplication of facilities
and activities;
(B) the encouragement of consolidation of common facilities
and activities;
(C) the location or confinement of facilities and
activities to areas that will minimize impact on fish and
wildlife, fish and wildlife habitat, and the environment;
(D) the use of existing facilities, to the maximum extent
practicable; and
(E) the enhancement of compatibility between wildlife
values and development activities.
SEC. 807. EXPEDITED PROCEDURE.
(a) Definition of Bill.--In this section, the term ``bill''
means only a bill to amend section 1003 of the Alaska
National Interest Lands Conservation Act (16 U.S.C. 3143) to
authorize oil or natural gas production in the Reserve.
(b) Mandatory Introduction.--Not later than 30 days after
the date of receipt from the President of a bill described in
subsection (a), the Chairperson of the Committee on Energy
and Natural Resources of the Senate and the Chairperson of
the Committee on Natural Resources of the House of
Representatives shall introduce the bill, by request.
(c) Referral to Committee.--
(1) House of representatives.--A bill described in
subsection (a) introduced in the House of Representatives
shall be referred to the Committee on Natural Resources of
the House of Representatives.
(2) Senate.--A bill described in subsection (a) introduced
in the Senate shall be referred to the Committee on Energy
and Natural Resources of the Senate.
(3) Timing.--A bill described in subsection (a) shall be
reported not earlier than 60 days after the date of
introduction of the bill.
(d) Discharge of Committee.--The committee to which a bill
described in subsection (a) is referred shall be considered
to have discharged the bill from further consideration, and
the bill shall be placed on the appropriate calendar of the
appropriate House, if the committee fails to report the bill
by the earlier of--
(1) the date that is 90 calendar days after the date of
introduction of the bill; and
(2) the end of the first day after there is reported to the
applicable House a bill described in subsection (a).
(e) Floor Consideration.--
(1) In general.--On the date on which the committee to
which a bill is referred has reported, or is considered to be
discharged from further consideration under subsection (d)--
(A) it shall be in order at any time (even if a previous
motion to the same effect has been disagreed to) for any
Member of the respective House to move to proceed to the
consideration of the bill; and
(B) all points of order against the bill (and against
consideration of the bill) are waived.
(2) Treatment of motion.--
(A) In general.--A motion under paragraph (1)(A) shall be
considered to be--
(i) highly privileged in the House of Representatives;
(ii) privileged in the Senate; and
(iii) not debatable.
(B) Amendments and other motions not allowed.--The motion
shall not be subject to--
(i) an amendment;
(ii) a motion to postpone; or
(iii) a motion to proceed to the consideration of other
business.
(C) Motions to reconsider.--A motion to reconsider the vote
by which the motion is agreed to or disagreed to shall not be
in order.
(D) Agreement to motion to proceed.--If a motion to proceed
to the consideration of the bill is agreed to, the bill shall
remain the unfinished business of the respective House until
the bill is disposed of.
(3) Debate.--
(A) In general.--Debate on the bill (including all
debatable motions and appeals in connection with the bill)
shall be limited to not more than 50 hours, which shall be
divided equally between those favoring and those opposing the
bill.
(B) Motions to further limit debate.--A motion to limit
further debate on the bill is in order and not debatable.
(C) Amendments and other motions not allowed.--The bill
shall not be subject to--
(i) an amendment;
(ii) a motion to postpone;
(iii) a motion to proceed to the consideration of other
business; or
(iv) a motion to recommit.
(D) Motions to reconsider.--A motion to reconsider the vote
by which the bill is agreed to or disagreed to is not in
order.
(4) Vote on final passage.--Immediately following the
conclusion of the debate on a bill described in subsection
(a), and a single quorum call at the conclusion of the
debate, if requested in accordance with the rules of the
appropriate House, the vote on final passage of the bill
shall occur.
(5) Rulings of the chair on procedure.--An appeal from a
decision of the Chairperson relating to the application of
the rules of the Senate or the House of Representatives, as
the case may be, to the procedure relating to a bill
described in subsection (a) shall be decided without debate.
(f) Coordination With Action by Other House.--If, before
the passage by 1 House of a bill of that House described in
subsection (a), the House receives from the other House a
bill described in subsection (a)--
(1) the bill of the other House shall not be referred to a
committee; and
(2) with respect to a bill described in subsection (a) of
the House receiving the bill--
(A) the procedure in that House shall be the same as if no
bill had been received from the other House; but
(B) the vote on final passage shall be on the bill of the
other House.
(g) Rules of House of Representatives and Senate.--This
section is enacted by Congress--
(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such--
(A) this section is deemed to be--
(i) a part of the rules of each House, respectively; but
(ii) applicable only with respect to the procedure to be
followed in that House in the case of a bill described in
subsection (a); and
(B) this section supersedes other rules only to the extent
that this section is inconsistent with those rules; and
(2) with full recognition of the constitutional right of
either House to change the rules (so far as relating 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. 808. STRATEGIC PETROLEUM RESERVE.
(a) Establishment.--
(1) Policy.--Section 151(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6231(b)) is amended by striking
``1 billion'' and inserting ``1,500,000,000''.
(2) Level.--Section 154(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6234(a)) is amended by striking
``1 billion'' and inserting ``1,500,000,000''.
(b) Filling Strategic Petroleum Reserve to Capacity.--
Section 301(e) of the Energy Policy Act of 2005 (42 U.S.C.
6240 note; Public Law 109-58) is amended by striking
``1,000,000,000-barrel'' and inserting ``1,500,000,000-
barrel''.
SEC. 809. ANNUAL REPORT.
Not later than June 30, 2008, and each June 30 thereafter,
the Secretary and the Secretary of Energy shall jointly
submit to the appropriate committees of Congress a report
that describes--
(1) the volume of crude oil produced during the previous
year in--
(A) the State; and
(B) the United States;
(2) the volume of crude oil imported into the United States
during the previous year by--
(A) the country of origin; and
(B) the average price paid per barrel;
(3) the volume of petroleum products imported during the
previous year by--
(A) the country of origin; and
(B) the average price paid per barrel;
(4) the average daily throughput of crude oil for the
previous year by the trans-Alaska pipeline;
(5) updated projections of the potential and known reserves
of crude oil and natural gas located in the Reserve; and
(6) the status of the activities authorized under section
804(c)(1).
SEC. 810. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out this title.
______
SA 1671. Ms. LANDRIEU submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 277, strike beginning with line 10 through page
288, line 2, and insert the following:
[[Page S7919]]
SEC. 602. DEFINITIONS.
In this title:
(1) Affected area.--The term ``affected area'' means an
area covered by a Presidential declaration of energy
emergency as provided in section 606.
(2) Supplier.--The term ``supplier'' means any person
engaged in the trade or business of selling or reselling, at
retail or wholesale, or distributing road transportation
fuels or domestic home heating oil.
(3) Price gouging.--The term ``price gouging'' means the
charging of an unconscionably excessive price by a supplier
in an affected area while a Presidential declaration of
energy emergency is in effect.
(4) Unconscionably excessive price.--The term
``unconscionably excessive price'' means an average price
charged in an affected area for road transportation fuels or
domestic home heating oil that--
(A)(i)(I) represents a gross disparity between the price at
which it was offered for sale in the usual course of the
supplier's business during the 30 days prior to the
President's declaration of an energy emergency; and
(II) grossly exceeds the price at which the same or similar
road transportation fuels or domestic home heating oil were
readily obtainable by purchasers from other suppliers in the
in the same relevant geographic market within the affected
area; or
(ii) represents an exercise of unfair leverage or
unconscionable means on the part of the supplier, during a
period of declared energy emergency; and
(B) is not attributable to the justifiable price increases
set forth in section 603(c).
(5) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(6) Wholesale.--The term ``wholesale'' refers to a sale
that occurs at a petroleum terminal rack or any sale
thereafter, other than a retail sale to a consumer.
SEC. 603. PROHIBITION ON PRICE GOUGING DURING ENERGY
EMERGENCIES.
(a) In General.--During any energy emergency declared by
the President under section 606, it is unlawful for any
supplier to sell, or offer to sell, road transportation fuels
or domestic home heating oil in, or for use in, the area to
which that declaration applies at an unconscionably excessive
price.
(b) Factors Considered.--In determining whether a violation
of subsection (a) has occurred, there shall be taken into
account, among other factors, whether--
(1) the price charged was a price that would reasonably
exist in a competitive and freely functioning market; and
(2) the price at which the road transportation fuel or
domestic home heating oil was sold reasonably reflects
additional costs or risks, not within the control of the
seller, that were paid or incurred by the seller.
(c) Justifiable Price Increases.--The prohibition in
subsection (a) does not apply to the extent that the increase
in the price of the road transportation fuel or domestic home
heating oil is substantially attributable to--
(1) an increase in the wholesale cost of road
transportation fuel or domestic home heating oil to a retail
seller or reseller;
(2) an increase in the replacement costs for road
transportation fuel or domestic home heating oil sold;
(3) an increase in operational costs; or
(4) local, regional, national, or international market
conditions.
SEC. 604. PROHIBITION ON MARKET MANIPULATION.
It is unlawful for any person, directly or indirectly, to
use or employ, in connection with the purchase or sale of
road transportation fuels or domestic home heating oil at
wholesale, any manipulative or deceptive device or
contrivance, in contravention of such rules and regulations
as the Commission may prescribe as necessary or appropriate
in the public interest or for the protection of United States
citizens.
SEC. 605. PROHIBITION ON FALSE INFORMATION.
It is unlawful for any person to report information related
to the wholesale price of road transportation fuels or
domestic home heating oil distillates to a Federal department
or agency if--
(1) that person knew, or reasonably should have known, the
information to be false or misleading;
(2) the information was required by law to be reported; and
(3) the person intended the false or misleading data to
affect data compiled by the Commission for statistical or
analytical purposes with respect to the market for road
transportation fuels or domestic home heating oil.
SEC. 606. PRESIDENTIAL DECLARATION OF ENERGY EMERGENCY.
(a) In General.--If the President finds that the health,
safety, welfare, or economic well-being of the citizens of
the United States is at risk because of a shortage or
imminent shortage of adequate supplies of road transportation
fuels or domestic home heating oil due to a disruption in the
national distribution system for road transportation fuels or
domestic home heating oil (including such a shortage related
to a major disaster (as defined in section 102(2) of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5122(2))), the President may declare that a
Federal energy emergency exists.
(b) Scope and Duration.--The emergency declaration shall
specify--
(1) the period, not to exceed 30 days, for which the
declaration applies;
(2) the circumstance or condition necessitating the
declaration; and
(3) the area or region to which it applies, which, for the
48 contiguous states may not be limited to a single State.
(c) Extensions.--The President may--
(1) extend a declaration under subsection (a) for a period
of not more than 30 days; and
(2) extend such a declaration not more than twice.
SEC. 607. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.
(a) Enforcement.--This title shall be enforced by the
Federal Trade Commission in the same manner, by the same
means, and with the same jurisdiction as though all
applicable terms of the Federal Trade Commission Act were
incorporated into and made part of this title.
(b) Violation Is Unfair or Deceptive Act or Practice.--The
violation of any provision of this title shall be treated as
an unfair or deceptive act or practice proscribed under a
rule issued under section 18(a)(1)(B) of the Federal Trade
Commission Act (15 U.S.C. 57a(a)(1)(B)).
(c) Commission Actions.--Following the declaration of an
energy emergency by the President under section 606, the
Commission shall--
(1) maintain within the Commission--
(A) a toll-free hotline that a consumer may call to report
an incident of price gouging in the affected area; and
(B) a program to develop and distribute to the public
informational materials to assist residents of the affected
area in detecting and avoiding price gouging;
(2) consult with the Attorney General, the United States
Attorney for the districts in which a disaster occurred (if
the declaration is related to a major disaster), and State
and local law enforcement officials to determine whether any
supplier in the affected area is charging or has charged an
unconscionably excessive price for road transportation fuels
or domestic home heating oil in the affected area; and
(3) conduct an investigation to determine whether any
supplier in the affected area has violated section 603, and
upon such finding, take any action the Commission determines
to be appropriate to remedy the violation.
(d) Limited Preemption.--This title shall preempt State
laws only with respect to affected areas and only for the
period of time that a declaration of energy emergency issued
under section 606 is in effect. Nothing contained in this
section shall otherwise prohibit an authorized State official
from proceeding in State court to enforce a civil or criminal
statute of that State.
SEC. 608. ENFORCEMENT BY STATE ATTORNEYS GENERAL.
(a) In General.--A State, as parens partriae, may, on
behalf of its residents, petition the Commission to enforce
the provisions of section 603, or to impose the civil
penalties authorized by section 609 for violations of section
603, whenever the Attorney General of the State has reason to
believe that the interests of the residents of the State have
been or are being threatened or adversely affected by a
supplier engaged in the sale or resale, at retail or
wholesale, or distribution of road transportation fuel or
domestic home heating oil in violation of section 603.
(b) Notice.--The State shall petition the Commission to
enforce the provisions of section 607 by filing with the
Commission a written notice of probable violation which sets
forth the State's reasons for believing section 603 has been
violated.
(c) Required Investigation.--Upon receiving the notice
required by subsection (b), the Commission shall commence or
continue an investigation in accordance with section
607(c)(3), taking into account the claims set forth in the
State's notice of probable violation.
(d) Limitation on State Action While Federal Action Is
Pending.--If the Commission has instituted a civil action or
an administrative action for violation of this title, a State
attorney general, or official or agency of a State, may not
bring an action during the pendency of that action against
any defendant named in the complaint of the Commission or the
other agency for any violation of this title alleged in the
Commission's civil or administrative action.
(e) Limited Preemption.--This title shall preempt State
laws only with respect to affected areas and only for the
period of time that a declaration of energy emergency under
section 606 is in effect. Nothing contained in this section
shall otherwise prohibit an authorized State official from
proceeding in State court to enforce a civil or criminal
statute of that State.
SEC. 609. EFFECT ON OTHER LAWS.
(a) Other Authority of the Commission.--Nothing in this
title shall be construed to limit or affect in any way the
Commission's authority to bring enforcement actions or take
any other measure under the Federal Trade Commission Act (15
U.S.C. 41 et seq.) or any other provision of law.
(b) State Law.--Nothing in this title preempts any State
law.
______
SA 1672. Mr. SCHUMER (for himself and Mr. Kennedy) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting
[[Page S7920]]
new emerging energy technologies, developing greater efficiency, and
creating a Strategic Energy Efficiency and Renewables Reserve to invest
in alternative energy, and for other purposes; which was ordered to lie
on the table; as follows:
At the appropriate place, insert the following:
SEC. _. COMMUTER BENEFIT EQUITY.
(a) Uniform Dollar Limitation for All Types of
Transportation Fringe Benefits.--
(1) In general.--Section 132(f)(2) of the Internal Revenue
Code of 1986 (relating to limitation on exclusion) is
amended--
(A) by striking ``$100'' in subparagraph (A) and inserting
``$200'', and
(B) by striking ``$175'' in subparagraph (B) and inserting
``$200''.
(2) Inflation adjustment conforming amendments.--
Subparagraph (A) of section 132(f)(6) of the Internal Revenue
Code of 1986 (relating to inflation adjustment) is amended--
(A) by striking the last sentence,
(B) by striking ``1999'' and inserting ``2008'', and
(C) by striking ``1998'' and inserting ``2007''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2006.
(b) Clarification of Federal Employee Benefits.--Section
7905 of title 5, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (2)(C) by inserting ``and'' after the
semicolon;
(B) in paragraph (3) by striking ``; and'' and inserting a
period; and
(C) by striking paragraph (4); and
(2) in subsection (b)(2)(A) by amending subparagraph (A) to
read as follows:
``(A) a qualified transportation fringe as defined in
section 132(f)(1) of the Internal Revenue Code of 1986;''.
______
SA 1673. Mr. BINGAMAN (for himself, Mr. Dodd, Mr. Allard, Mr. Reed,
Mr. Crapo, Mr. Schumer, Mr. Martinez, Mr. Casey, and Mr. Bayh)
submitted an amendment intended to be proposed to amendment SA 1502
proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's
dependency on foreign oil by investing in clean, renewable, and
alternative energy resources, promoting new emerging energy
technologies, developing greater efficiency, and creating a Strategic
Energy Efficiency and Renewables Reserve to invest in alternative
energy, and for other purposes; which was ordered to lie on the table;
as follows:
On page 157, line 5, strike ``and if'' and insert the
following: ``the Secretary of Housing and Urban Development
or the Secretary of Agriculture make a determination that the
revised codes do not negatively affect the availability or
affordability of new construction of assisted housing and
single family and multifamily residential housing (other than
manufactured homes) subject to mortgages insured under the
National Housing Act (12 U.S.C. 1701 et seq.) or insured,
guaranteed, or made by the Secretary of Agriculture under
title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.),
respectively, and''.
______
SA 1674. Mr. FEINGOLD submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 163, strike lines 8 and 9 and insert the following:
(b) Protection for Small Business.--Section 111(c)(3) of
the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2621(c)(3)) is amended by striking ``subsection (d)(7) or
(8)'' and inserting ``paragraph (7), (8), (16), or (17) of
subsection (d)''.
(c) Natural Gas Utilities.--Section 303(b) of the Public
Utility Regulatory Policies Act of 1978 (15 U.S.C. * * *
On page 164, between lines 20 and 21, insert the following:
(d) Small Business Impacts.--Section 303(d) of the Public
Utility Regulatory Policies Act of 1978 (15 U.S.C. 3203(d))
is amended by striking ``subsection (b)(3) or (4)'' and
inserting ``any of paragraphs (3) through (6) of subsection
(b)''.
______
SA 1675. Mr. MENENDEZ submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the end, add the following:
TITLE VIII--MISCELLANEOUS
SEC. 801. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS ON THE
DEVELOPMENT OF COMBINED HEAT AND POWER
FACILITIES.
(a) Study.--
(1) In general.--The Secretary, in consultation with the
States and other appropriate entities, shall conduct a study
of the laws (including regulations) affecting the siting of
privately owned electric distribution wires on and across
public rights-of-way.
(2) Requirements.--The study under paragraph (1) shall
include--
(A) an evaluation of--
(i) the purposes of the laws; and
(ii) the effect the laws have on the development of
combined heat and power facilities;
(B) a determination of whether a change in the laws would
have any operating, reliability, cost, or other impacts on
electric utilities and the customers of the electric
utilities; and
(C) an assessment of--
(i) whether privately owned electric distribution wires
would result in duplicative facilities; and
(ii) whether duplicative facilities are necessary or
desirable.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress
a report that describes the results of the study conducted
under subsection (a).
______
SA 1676. Mr. BROWN submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 161, between lines 2 and 3, insert the following:
SEC. 26_. RENEWABLE ENERGY INNOVATION MANUFACTURING
PARTNERSHIP.
(a) Establishment.--The Secretary shall carry out a
program, to be known as the Renewable Energy Innovation
Manufacturing Partnership Program (referred to in this
section as the ``Program''), to make assistance awards to
eligible entities for use in carrying out research,
development, and demonstration relating to the manufacturing
of renewable energy technologies.
(b) Solicitation.--To carry out the Program, the Secretary
shall annually conduct a competitive solicitation for
assistance awards for an eligible project described in
subsection (e).
(c) Program Purposes.--The purposes of the Program are--
(1) to develop, or aid in the development of, advanced
manufacturing processes, materials, and infrastructure;
(2) to increase the domestic production of renewable energy
technology and components; and
(3) to better coordinate Federal, State, and private
resources to meet regional and national renewable energy
goals through advanced manufacturing partnerships.
(d) Eligible Entities.--An entity shall be eligible to
receive an assistance award under the Program to carry out an
eligible project described in subsection (e) if the entity is
composed of--
(1) 1 or more public or private nonprofit institutions or
national laboratories engaged in research, development,
demonstration, or technology transfer, that would participate
substantially in the project; and
(2) 1 or more private entities engaged in the manufacturing
or development of renewable energy system components
(including solar energy, wind energy, biomass, geothermal
energy, energy storage, or fuel cells).
(e) Eligible Projects.--An eligible entity may use an
assistance award provided under this section to carry out a
project relating to--
(1) the conduct of studies of market opportunities for
component manufacturing of renewable energy systems;
(2) the conduct of multiyear applied research, development,
demonstration, and deployment projects for advanced
manufacturing processes, materials, and infrastructure for
renewable energy systems; and
(3) other similar ventures, as approved by the Secretary,
that promote advanced manufacturing of renewable
technologies.
(f) Criteria and Guidelines.--The Secretary shall establish
criteria and guidelines for the submission, evaluation, and
funding of proposed projects under the Program.
(g) Cost Sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a project carried out
under this section.
(h) Disclosure.--Section 623 of the Energy Policy Act of
1992 (42 U.S.C. 13293) shall apply to a project carried out
under this subsection.
(i) Sense of the Senate.--It is the sense of the Senate
that the Secretary should ensure
[[Page S7921]]
that small businesses engaged in renewable manufacturing be
considered for loan guarantees authorized under title XVII of
the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.).
(j) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $25,000,000 for
each of fiscal years 2008 through 2013, to remain available
until expended.
______
SA 1677. Mr. BINGAMAN submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 7, line 11, insert ``(including landfill gas and
sewage waste treatment gas)'' after ``biogas''.
On page 7, strike lines 13 through 16 and insert the
following:
biomass;
(vi) butanol or other alcohols produced through the
conversion of organic matter from renewable biomass; and
(vii) other fuel derived from cellulosic biomass.
On page 9, line 13, strike ``, boiler fuel,''.
On page 9, line 20, strike ``, boiler,''.
On page 10, lines 17 and 18, strike ``motor vehicle fuel,
home heating oil, and boiler fuel'' and insert ``motor
vehicle fuel and home heating oil''.
On page 11, line 11, strike ``built'' and insert ``that
commence operations''.
On page 44, lines 4 and 5, strike ``local biorefineries''
and insert ``local biorefineries, including by portable
processing equipment''.
On page 44, lines 13 and 14, strike ``local biorefineries''
and insert ``local biorefineries, including by portable
processing equipment''.
On page 47, strike lines 9 through 15 and insert the
following:
(1) Quality regulations.--Not later than 180 days after the
date of enactment of this Act, the President shall promulgate
regulations to ensure that each diesel-equivalent fuel
derived from renewable biomass and introduced into interstate
commerce is tested and certified to comply with applicable
standards of the American Society for Testing and Materials.
______
SA 1678. Mrs. HUTCHISON (for herself and Mr. Cornyn) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
On page 21, strike line 12 and insert the following:
(2) Petitions for waiver.--
(A) In general.--The President,
On page 21, between lines 19 and 20, insert the following:
(B) Immediate relief.--During the 90-day period described
in subparagraph (A), the President may authorize the
Administrator of the Environmental Protection Agency to
adjust the requirements described in subsection (a) as the
Administrator of the Environmental Protection Agency
determines to be necessary to provide immediate relief until
the date on which the President, in consultation with the
Secretary of Energy, the Secretary of Agriculture, and the
Administrator of the Environmental Protection Agency,
approves or disapproves a State petition for a waiver under
subparagraph (A).
______
SA 1679. Mrs. HUTCHISON (for herself and Mr. Cornyn) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
On page 26, strike lines 19 through 21 and insert the
following:
(j) Study of Impact of Renewable Fuel Standard.--
(1) In general.--The Secretary shall enter into an
arrangement with the National Academy of Sciences under which
the Academy shall conduct a study to assess the impact of the
requirements described in subsection (a)(2) on each industry
relating to the production of feed grains, livestock, food,
and energy.
(2) Participation.--In conducting the study under paragraph
(1), the National Academy of Sciences shall seek the
participation, and consider the input, of--
(A) producers of feed grains;
(B) producers of livestock, poultry, and pork products;
(C) producers of food and food products;
(D) producers of energy;
(E) individuals and entities interested in issues relating
to conservation, the environment, and nutrition; and
(F) users of renewable fuels.
(3) Considerations.--In conducting the study, the National
Academy of Sciences shall consider--
(A) the likely impact on domestic animal agriculture
feedstocks that, in any crop year, are significantly below
current projections; and
(B) policy options to alleviate the impact on domestic
animal agriculture feedstocks that are significantly below
current projections.
(4) Components.--The study shall include--
(A) a description of the conditions under which the
requirements described in subsection (a)(2) should be
suspended or reduced to prevent adverse impacts to domestic
animal agriculture feedstocks described in paragraph (3)(B);
and
(B) recommendations for the means by which the Federal
Government could prevent or minimize adverse economic
hardships and impacts.
(5) Deadline for completion of study.--Not later than 270
days after the date of enactment of this Act, the Secretary
shall submit to Congress a report that describes the results
of the study.
(6) Periodic reviews.--
(A) In general.--To allow for the appropriate adjustment of
the requirements described in subsection (a)(2), the
Secretary shall conduct periodic reviews of--
(i) existing technologies;
(ii) the feasibility of achieving compliance with the
requirements; and
(iii) the impacts of the requirements described in
subsection (a)(2) on each individual and entity described in
paragraph (2).
(B) Adjustment of requirements.--If, on completion of a
periodic review under subparagraph (A), or on the date on
which the Secretary submits to Congress the report under
paragraph (5), the Secretary concludes that there will be a
shortfall in the supply of domestic feed grain-based
feedstocks or renewable fuels for the period covered by the
review, as soon as practicable after the date on which the
Secretary submits to Congress the report under that
paragraph, the Administrator of the Environmental Protection
Agency, in consultation with the Secretary, shall, after an
opportunity for public notice and comment, promulgate
regulations to establish a downward adjustment of the
requirements described in subsection (a)(2) necessary to
alleviate the shortfall, as determined by the Secretary.
(k) Effective Date.--Except as otherwise specifically
provided in this section, this section takes effect on the
date on which the National Academies of Science completes the
study under subsection (j).
______
SA 1690. Mr. HAGEL submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the end of subtitle D of title II, add the following:
SEC. 255. ENERGY-RELATED RESEARCH AND DEVELOPMENT.
(a) Findings.--Congress finds that--
(1) information and opinions provided by individuals and
entities of the academic and industrial sectors should be an
important consideration with respect to energy-related
research and development activities carried out by the
Federal Government;
(2) in carrying out energy-related research and development
activities, the Federal Government should regularly seek
input from multiple sources, including the industrial sector,
academia, and other relevant sectors;
(3) research is better focused around well-defined problems
that need to be resolved;
(4) a number of potential problems to be resolved are
likely to require input from a diverse selection of
technologies and contributing sectors;
(5) sharing of information relating to energy research and
development is important to the development and innovation of
energy technologies;
(6) necessary intellectual property protection can lead to
delays in sharing valuable information that could aid in
resolving major energy-related problems;
(7) the Federal Government should facilitate the sharing of
information from a diverse array of industries by ensuring
the protection of intellectual property while simultaneously
creating an environment of openness and cooperation; and
[[Page S7922]]
(8) the Federal Government should revise the methods of the
Federal Government regarding energy-related research and
development to encourage faster development and
implementation of energy technologies.
(b) Definitions.--In this section:
(1) Network.--The term ``network'' means the Energy
Technologies Innovation Network established by subsection
(d)(1).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(3) Survey.--The term ``survey'' means a survey conducted
pursuant to subsection (c).
(c) Energy-Related Research and Development Priorities.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, and on the dates that are 5 years and
10 years after that date, the Secretary shall conduct a
survey in accordance with this subsection to determine the 10
highest-priority energy-related problems to resolve to ensure
the goals of--
(A) maximizing the energy security of the United States;
(B) maximizing improvements in energy efficiency within the
United States; and
(C) minimizing damage to the economy and the environment of
the United States.
(2) Survey.--
(A) In general.--Each survey shall contain a request that
the respondent shall list, in descending order of priority,
the 10 highest-priority energy-related problems that, in the
opinion of the respondent, require resolution as quickly as
practicable to ensure the goals described in paragraph (1).
(B) Announcement.--The Secretary shall announce the
existence of each survey by--
(i) publishing an announcement in the Federal Register; and
(ii) placing an announcement in a prominent position on the
homepage of the website of the Department of the Energy.
(C) Availability.--The Secretary shall ensure that each
survey is made available--
(i) in an electronic format only through a link on the
Department of Energy website;
(ii) for a period of not less than 21 days and not more
than 30 days; and
(iii) to any individual or entity that elects to
participate.
(D) Additional information gathering.--Each survey--
(i) shall require each respondent to provide information
regarding--
(I) the age of the respondent;
(II) the occupational category of the respondent;
(III) the period of time during which the respondent has
held the current occupation of the respondent; and
(IV) the State and country in which the respondent resides;
and
(ii) may request, but shall not require--
(I) the name of the respondent;
(II) an identification of the employer of the respondent;
(III) the electronic mail address of the respondent; and
(IV) such other information as the Secretary determines to
be appropriate.
(E) Respondents.--The Secretary shall seek responses to a
survey from appropriate representatives of--
(i) the energy, transportation, manufacturing,
construction, mining, and electronic industries;
(ii) academia;
(iii) research facilities;
(iv) nongovernmental organizations;
(v) the Federal Government; and
(vi) units of State and local government.
(F) Nonpolitical requirement.--The Secretary shall ensure
that each survey is conducted, to the maximum extent
practicable--
(i) in a transparent, nonpolitical, and scientific manner;
and
(ii) without any political bias.
(G) Report.--Not later than 180 days after the date on
which a survey under this subsection is no longer available
under subparagraph (C)(ii), the Secretary shall submit to
Congress and make available to the public (including through
publication in the Federal Register and on the website of the
Department of Energy) a report that--
(i) describes the results of the survey; and
(ii) includes a list of the 10 highest-priority energy-
related problems based on all responses to the survey.
(d) Energy Technologies Innovation Network.--
(1) Establishment.--There is established an information and
collaboration network, to be known as the ``Energy
Technologies Innovation Network''.
(2) Purpose.--The purpose of the network shall be to
provide a forum through which interested parties (including
scientists and entrepreneurs) can present, discuss, and
collaborate with respect to information and ideas relating to
energy technologies.
(3) Operation of network.--
(A) In general.--The Secretary shall operate the network.
(B) Use of third-party databases.--In operating the network
pursuant to subparagraph (A), the Secretary may use any
relevant database of a third party that, as determined by the
Secretary--
(i) has experience with respect to the establishment and
maintenance of a comprehensive database of Federal research
and development projects that--
(I) is easily searchable;
(II) is open to the public;
(III) is capable of expansion; and
(IV) requires only limited interaction with any database
manager beyond the initial interaction necessary to register
with the database;
(ii) provides a secure electronic forum to enable
collaboration among users of the network; and
(iii) agrees to collaborate with the Secretary to protect
the intellectual property rights of individual users and
governmental agencies participating in the network in
accordance with paragraph (6).
(4) Required contributors.--Each research laboratory or
other facility that receives Federal funding shall provide to
the network the results of the research conducted using that
funding, regardless of whether the research relates to
energy, subject to the condition that revelation of the
research will not adversely effect national security.
(5) Other contributors.--Other entities, including entities
in the academic and industrial sectors and individuals, may
participate in the network to actively contribute to
resolving--
(A) the energy-related problems included on the list of the
report under subsection (c)(2)(G)(ii); or
(B) any other energy-related problem that the contributor
determines would advance the goals described in subsection
(c)(1).
(6) Protection of information and ideas.--In operating the
network under paragraph (3), the Secretary shall employ such
individuals and entities with experience relating to--
(A) intellectual property as the Secretary determines to be
necessary to ensure that--
(i) information and ideas presented, and discussed in the
network are--
(I) monitored with respect to the intellectual property
owners and components of the information or ideas; and
(II) protected in accordance with applicable Federal
intellectual property law (including regulations);
(ii) information and ideas developed within the network
are--
(I) monitored with respect to the intellectual property
components of the developers of the information or ideas; and
(II) protected in accordance with applicable Federal
intellectual property law (including regulations); and
(iii) contributors to the network are provided adequate
assurances that intellectual property rights of the
contributors will be protected with respect to participation
in the network;
(B) setting up, maintaining, and operating a network that
ensures security and reliability.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
______
SA 1681. Mr. HAGEL (for himself and Mr. Lieberman) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
At the end of subtitle E of title II, add the following:
SEC. 2__. REESTABLISHMENT OF OFFICE OF TECHNOLOGICAL
ASSESSMENT.
(a) Office of Technology Assessment.--
(1) In general.--Sections 113 and 114 of the Legislative
Branch Appropriations Act, 1996 (Public Law 104-52; 109 Stat.
526), are repealed.
(2) Application.--The Technology Assessment Act of 1972
(Public Law 92-484; 86 Stat. 797) shall be applied and
administered as if sections 113 and 114 of the Legislative
Branch Appropriations Act, 1996 (Public Law 104-52; 109 Stat.
526) had not been enacted.
(b) Amendment to Short Title.--
(1) In general.--The first section of the Technology
Assessment Act of 1972 (Public Law 92-484; 86 Stat. 797) is
amended by striking ``Technology Assessment Act of 1972'' and
inserting ``Office of Technology Assessment Reestablishment
Act of 2007''.
(2) Cross-references.--Any reference in a law, regulation,
or other document of the United States to the ``Technology
Assessment Act of 1972'' shall be considered to be a
reference to the ``Office of Technology Assessment
Reestablishment Act of 2007''.
(c) Establishment of Office.--Section 3(c) of the Office of
Technology Assessment Reestablishment Act of 2007 (Public Law
92-484; 86 Stat. 797) is amended--
(1) by redesignating paragraphs (1) through (8) as
paragraphs (6) through (13), respectively;
(2) in paragraph (12) (as redesignated by paragraph (1)),
by striking ``paragraphs (1) through (5)'' and inserting
``paragraphs (6) through (10)''; and
(3) by inserting before paragraph (6) (as redesignated by
paragraph (1)), the following:
``(1) provide Congress with timely, impartial analyses of
scientific and technological information;
``(2) make assessments relating to the uses and application
of technology toward achieving national policy goals;
[[Page S7923]]
``(3) assess and analyze technologies that could contribute
to solving energy security related issues;
``(4) assess and analyze foreign sciences and technologies
that could contribute to achieving national policy goals;
``(5) assess the impact of existing or probable policies on
scientific and technological advances;''.
(d) Priority of Assessments; Requirements.--Section 3 of
the Office of Technology Assessment Reestablishment Act of
2007 (Public Law 92-484; 86 Stat. 798) is amended by adding
at the end the following:
``(f) Priority of Assessments.--
``(1) In general.--Except as provided in paragraph (2),
requests for the conduct of assessment activities under
subsection (d)(1) shall be addressed by the Office in the
following order:
``(A) Requests with bipartisan and bicameral support.
``(B) Requests with bipartisan support.
``(C) Requests from individual members of Congress.
``(2) Except.--Notwithstanding paragraph (1), the Director
of the Office, with the approval of the Board, may determine
the final priority for requests within and among the
categories described in subparagraphs (A) through (C) of
paragraph (1).
``(g) Deadline.--In conducting assessments requested under
subsection (d)(1), the Director and the person or entity
submitting the request shall agree on a timeline for the
delivery of the results of the assessment, including
briefings, findings, draft reports, final reports, or any
other appropriate information.
``(h) Peer Review.--Each assessment report requested under
subsection (d) shall be subject to peer review, which shall
consist of rigorous vetting, checking, criticism, and
recommendations for improvement by independent, qualified
experts in the various aspects of the matters being assessed.
``(i) Availability of Assessments.--The Office shall
maintain an electronic resource that makes available to the
public--
``(1) assessments produced by the Office; and
``(2) any other information determined to be appropriate by
the Director.''.
(e) Use of the Congressional Budget Office.--The Office of
Technology Assessment Reestablishment Act of 2007 (Public Law
92-484; 86 Stat. 797) is amended--
(1) by redesignating sections 10, 11, and 12, as sections
11, 13, and 14, respectively; and
(2) by inserting after section 9 the following:
``SEC. 10. USE OF CONGRESSIONAL BUDGET OFFICE.
``(a) In General.--The Director of the Congressional Budget
Office may make available to the Office any services and
assistance that may be appropriate to carry out the
objectives of this Act, including all of the services and
assistance which the Congressional Budget Office is otherwise
authorized to provide to the Congress.
``(b) Reimbursement.--Services and assistance made
available to the Office by the Director of the Congressional
Budget Office under this section may be provided with or
without reimbursement by the Office, as agreed upon by the
Board and the Director of the Congressional Budget Office.
``(c) Effect.--Nothing in this section alters or modifies
any services or responsibilities (other than services
performed for, and responsibilities relating to, the Office)
that the Director of the Congressional Budget Office performs
for or on behalf of the Congress under any law.''.
(f) Coordination With National Academies.--The Office of
Technology Assessment Reestablishment Act of 2007 (Public Law
92-484; 86 Stat. 797) is amended by inserting after section
11 (as redesignated by subsection (e)(1)) the following:
``SEC. 12. COORDINATION WITH NATIONAL ACADEMIES.
``The Office shall maintain a continuing liaison with the
National Academies of Science with respect to--
``(1) grants and contracts formulated or activated by the
National Academies of Science for purposes of technology
assessment;
``(2) the promotion of coordination in areas of technology
assessment; and
``(3) the avoidance of unnecessary duplication or
overlapping of research activities in the development of
technology assessment techniques and programs.''.
(g) Authorization of Appropriations.--The Office of
Technology Assessment Reestablishment Act of 2007 (Public Law
92-484; 86 Stat. 797) is amended by striking section 14 (as
redesignated by subsection (e)(1)) and inserting the
following:
``SEC. 14. AUTHORIZATION OF APPROPRIATIONS.
``Of amounts in the Treasury not otherwise appropriated,
there is authorized to be appropriated to the Office to carry
out the duties of the Office pursuant to this Act $15,000,000
for each of fiscal years 2008 through 2013.''.
______
SA 1682. Mr. HAGEL submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
SEC. __. APPLIANCE EFFICIENCY STANDARDS COMMISSION.
(a) Appliance Efficiency Standards Commission.--Section 325
of the Energy Policy and Conservation Act (42 U.S.C. 6295) is
amended by adding at the end the following:
``(hh) Appliance Efficiency Standards Commission.--
``(1) Establishment.--
``(A) Establishment.--There is established a commission to
be known as the `Appliance Efficiency Standards Commission'
(referred to in this subsection as the `Commission').
``(B) Membership.--
``(i) Composition.--The Commission shall be composed of 14
members appointed by the President, of whom--
``(I) 5 members shall be appointed to represent energy and
manufacturing industries;
``(II) 3 members shall be appointed to represent consumer
organizations;
``(III) 2 members shall be appointed from nongovernmental
organizations that specialize in energy efficiency,
environmental protection, or consumer advocacy; and
``(IV) 1 member shall be appointed from each of--
``(aa) the Department of Commerce;
``(bb) the National Academy of Sciences;
``(cc) the Department of Energy; and
``(dd) the Environmental Protection Agency.
``(ii) Date of appointments.--The appointment of a member
of the Commission shall be made not later than 90 days after
the date of enactment of this subsection.
``(C) Term; vacancies.--
``(i) Term.--Subject to clause (ii), the term of office of
a member of the Commission shall be 3 years.
``(ii) Staggered initial terms.--Of the initial members of
the Commission appointed under clause (i), the term of office
of--
``(I) 5 members shall be 3 years;
``(II) 5 members shall be 2 years; and
``(III) 4 members shall be 1 year.
``(iii) Vacancies.--A vacancy on the Commission--
``(I) shall not affect the powers of the Commission; and
``(II) shall be filled in the same manner as the original
appointment was made.
``(D) Initial meeting.--Not later than 30 days after the
date on which all members of the Commission have been
appointed, the Commission shall hold the initial meeting of
the Commission.
``(E) Meetings.--The Commission shall meet at the call of
the Chairperson.
``(F) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
``(G) Chairperson and vice chairperson.--The Commission
shall select a Chairperson and Vice Chairperson from among
the members of the Commission.
``(2) Duties.--The Commission shall--
``(A) conduct ongoing studies of the establishment or
improvement of energy conservation standards and test
protocols for consumer goods and appliances that will reduce
the use of electricity use of consumer products and improve
the competitiveness of the United States; and
``(B) based on the studies, make recommendations to the
Secretary for the establishment or improvement of energy
conservation standards and test protocols through expedited
rulemaking under subsection (ii).
``(3) Powers.--
``(A) Hearings.--The Commission may hold such hearings,
meet and act at such times and places, take such testimony,
and receive such evidence as the Commission considers
advisable to carry out this subsection.
``(B) Information from federal agencies.--
``(i) In general.--The Commission may secure directly from
a Federal agency such information as the Commission considers
necessary to carry out this subsection.
``(ii) Provision of information.--On request of the
Chairperson of the Commission, the head of the agency shall
provide the information to the Commission.
``(C) Postal services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other agencies of the Federal Government.
``(D) Gifts.--The Commission may accept, use, and dispose
of gifts or donations of services or property.
``(4) Commission personnel matters.--
``(A) Compensation of members.--
``(i) Non-federal employees.--A member of the Commission
who is not an officer or employee of the Federal Government
shall be compensated at a rate equal to the daily equivalent
of the annual rate of basic pay prescribed for level IV of
the Executive Schedule under section 5315 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 Commission.
``(ii) Federal employees.--A member of the Commission who
is an officer or employee of the Federal Government shall
serve without compensation in addition to the compensation
received for the services of the member as an officer or
employee of the Federal Government.
[[Page S7924]]
``(B) Travel expenses.--A member of the Commission shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for an employee of an agency
under subchapter I of chapter 57 of title 5, United States
Code, while away from the home or regular place of business
of the member in the performance of the duties of the
Commission.
``(C) Staff.--
``(i) In general.--The Chairperson of the Commission may,
without regard to the civil service laws (including
regulations), appoint and terminate an executive director and
such other additional personnel as are necessary to enable
the Commission to perform the duties of the Commission.
``(ii) Confirmation of executive director.--The employment
of an executive director shall be subject to confirmation by
the Commission.
``(iii) Compensation.--
``(I) In general.--Except as provided in subclause (I), the
Chairperson of the Commission may fix the compensation of the
executive director and other personnel without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of
title 5, United States Code, relating to classification of
positions and General Schedule pay rates.
``(II) Maximum rate of pay.--The rate of pay for the
executive director and other personnel shall not exceed the
rate payable for level V of the Executive Schedule under
section 5316 of title 5, United States Code.
``(D) Detail of federal government employees.--
``(i) In general.--An employee of the Federal Government
may be detailed to the Commission without reimbursement.
``(ii) Civil service status.--The detail of the employee
shall be without interruption or loss of civil service status
or privilege.
``(E) Procurement of temporary and intermittent services.--
The Chairperson of the Commission may procure temporary and
intermittent services in accordance with section 3109(b) of
title 5, United States Code, at rates for individuals that do
not exceed the daily equivalent of the annual rate of basic
pay prescribed for level V of the Executive Schedule under
section 5316 of that title.
``(5) Administration.--Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the
Commission.
``(6) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection, to remain available until
expended.''.
(b) Expedited Rulemakings.--Section 325 of the Energy
Policy and Conservation Act (42 U.S.C. 6295) (as amended by
subsection (a)) is amended by adding at the end the
following:
``(ii) Expedited Rulemaking for Standards Recommended by
Appliance Efficiency Standards Commission.--
``(1) In general.--The Secretary shall conduct an expedited
rulemaking based on each energy conservation standard or test
procedure recommended by the Appliance Efficiency Standards
Commission established under subsection (hh).
``(2) Procedure.--
``(A) In general.--Notwithstanding subsection (p) or
section 336(a), if the Secretary receives a recommendation of
the Appliance Efficiency Standards Commission, the Secretary
shall conduct an expedited rulemaking with respect to the
standard or test procedure proposed in the recommendation in
accordance with this paragraph.
``(B) Advanced notice of proposed rulemaking.--If no
advanced notice of proposed rulemaking has been issued under
subsection (p)(1) with respect to the rulemaking covered by
the recommendation, the requirements of subsection (p) with
respect to the issuance of an advanced notice of proposed
rulemaking shall not apply.
``(C) Proposed rule.--
``(i) Publication.--Not later than 30 days after the
receipt of a recommendation described in paragraph (1), the
Secretary shall publish a proposed rule proposing the
standard or test procedure covered by the recommendation.
``(ii) Public comment period.--Notwithstanding paragraphs
(2) and (3) of subsection (p), the public comment period for
the proposed rule shall be the 30-day period beginning on the
date of publication of the proposed rule in the Federal
Register.
``(iii) Public hearing.--Notwithstanding section 336(a),
the Secretary may waive the holding of a public hearing with
respect to the proposed rule.
``(D) Final rule.--Notwithstanding subsection (p)(4), the
Secretary--
``(i) may publish a final rule at any time after the 60-day
period beginning on the date of publication of the proposed
rule in the Federal Register; and
``(ii) shall publish a final rule not later than 120 days
after the date of publication of the proposed rule in the
Federal Register.''.
______
SA 1683. Mr. VOINOVICH (for himself, Mr. Carper, and Mr. Inhofe)
submitted an amendment intended to be proposed to amendment SA 1502
proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's
dependency on foreign oil by investing in clean, renewable, and
alternative energy resources, promoting new emerging energy
technologies, developing greater efficiency, and creating a Strategic
Energy Efficiency and Renewables Reserve to invest in alternative
energy, and for other purposes; which was ordered to lie on the table;
as follows:
At the end of title VII, add the following:
SEC. 7__. CONVENTION ON SUPPLEMENTARY COMPENSATION FOR
NUCLEAR DAMAGE CONTINGENT COST ALLOCATION.
(a) Findings and Purpose.--
(1) Findings.--Congress finds that--
(A) section 170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210) (commonly known as the ``Price-Anderson Act'')--
(i) provides a predictable legal framework necessary for
nuclear projects; and
(ii) ensures prompt and equitable compensation in the event
of a nuclear incident in the United States;
(B) section 170 of that Act, in effect, provides operators
of nuclear powerplants with insurance for damage arising out
of a nuclear incident and funds the insurance primarily
through the assessment of a retrospective premium from each
operator after the occurrence of a nuclear incident;
(C) the Convention on Supplementary Compensation for
Nuclear Damage, done at Vienna on September 12, 1997, will
establish a global system--
(i) to provide a predictable legal framework necessary for
nuclear energy projects; and
(ii) to ensure prompt and equitable compensation in the
event of a nuclear incident;
(D) the Convention benefits United States nuclear suppliers
that face potentially unlimited liability for a nuclear
incidents outside the coverage of section 170 of the Atomic
Energy Act of 1954 (42 U.S.C. 2210) by replacing a
potentially open-ended liability with a predictable liability
regime that, in effect, provides nuclear suppliers with
insurance for damage arising out of such an incident;
(E) the Convention also benefits United States nuclear
facility operators that may be publicly liable for a Price-
Anderson incident by providing an additional early source for
a Price-Anderson incident by providing an additional early
source of funds to compensate damage arising out of the
Price-Anderson incident;
(F) the combined operation of the Convention, section 170
of the Atomic Energy Act of 1954 (42 U.S.C. 2210), and this
section will augment the quantity of assured funds available
for victims in a wider variety of nuclear incidents while
reducing the potential liability of United States suppliers
without increasing potential costs to United States
operators;
(G) the cost of those benefits is the obligation of the
United States to contribute to the supplementary compensation
fund established by the Convention;
(H) any such contribution should be funded in a manner that
neither upsets settled expectations based on the liability
regime established under section 170 of the Atomic Energy Act
of 1954 (42 U.S.C. 2210) nor shifts to Federal taxpayers
liability risks for nuclear incidents at foreign
installations;
(I) with respect to a Price-Anderson incident, funds
already available under section 170 of the Atomic Energy Act
of 1954 (42 U.S.C. 2210) should be used; and
(J) with respect to a nuclear incident outside the United
States not covered by section 170 of the Atomic Energy Act of
1954 (42 U.S.C. 2210), a retrospective premium should be
prorated among nuclear suppliers relieved from potential
liability for which insurance is not available.
(2) Purpose.--The purpose of this section is to allocate
the contingent costs associated with participation by the
United States in the international nuclear liability
compensation system established by the Convention on
Supplementary Compensation for Nuclear Damage, done at Vienna
on September 12, 1997--
(A) with respect to a Price-Anderson incident, by using
funds made available under section 170 of the Atomic Energy
Act of 1954 (42 U.S.C. 2210) to cover the contingent costs in
a manner that neither increases the burdens nor decreases the
benefits under section 170 of that Act; and
(B) with respect to a covered incident outside the United
States that is not a Price-Anderson incident, by allocating
the contingent costs equitably, on the basis of risk, among
the class of nuclear suppliers relieved by the Convention
from the risk of potential liability resulting from any
covered incident outside the United States.
(b) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Nuclear
Regulatory Commission.
(2) Contingent cost.--The term ``contingent cost'' means
the cost to the United States in the event of a covered
incident the amount of which is equal to the amount of funds
the United States is obligated to make available under
paragraph 1(b) of Article III of the Convention.
(3) Convention.--The term ``Convention'' means the
Convention on Supplementary Compensation for Nuclear Damage,
done at Vienna on September 12, 1997.
(4) Covered incident.--The term ``covered incident'' means
a nuclear incident the occurrence of which results in a
request for funds pursuant to Article VII of the Convention.
(5) Covered installation.--The term ``covered
installation'' means a nuclear installation at which the
occurrence of a nuclear incident could result in a request
for funds under Article VII of the Convention.
(6) Covered person.--
[[Page S7925]]
(A) In general.--The term ``covered person'' means--
(i) a United States person; and
(ii) an individual or entity (including an agency or
instrumentality of a foreign country) that--
(I) is located in the United States; or
(II) carries out an activity in the United States.
(B) Exclusions.--The term ``covered person'' does not
include--
(i) the United States; or
(ii) any agency or instrumentality of the United States.
(7) Nuclear supplier.--The term ``nuclear supplier'' means
a covered person (or a successor in interest of a covered
person) that--
(A) supplies facilities, equipment, fuel, services, or
technology pertaining to the design, construction, operation,
or decommissioning of a covered installation; or
(B) transports nuclear materials that could result in a
covered incident.
(8) Price-anderson incident.--The term ``Price-Anderson
incident'' means a covered incident for which section 170 of
the Atomic Energy Act of 1954 (42 U.S.C. 2210) would make
funds available to compensate for public liability (as
defined in section 11 of that Act (42 U.S.C. 2014)).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(10) United states.--
(A) In general.--The term ``United States'' has the meaning
given the term in section 11 of the Atomic Energy Act of 1954
(42 U.S.C. 2014).
(B) Inclusions.--The term ``United States'' includes--
(i) the Commonwealth of Puerto Rico;
(ii) any other territory or possession of the United
States;
(iii) the Canal Zone; and
(iv) the waters of the United States territorial sea under
Presidential Proclamation Number 5928, dated December 27,
1988 (43 U.S.C. 1331 note).
(11) United states person.--The term ``United States
person'' means--
(A) any individual who is a resident, national, or citizen
of the United States (other than an individual residing
outside of the United States and employed by a person who is
not a United States person); and
(B) any corporation, partnership, association, joint stock
company, business trust, unincorporated organization, or sole
proprietorship that is organized under the laws of the United
States.
(c) Use of Price-Anderson Funds.--
(1) In general.--Funds made available under section 170 of
the Atomic Energy Act of 1954 (42 U.S.C. 2210) shall be used
to cover the contingent cost resulting from any Price-
Anderson incident.
(2) Effect.--The use of funds pursuant to paragraph (1)
shall not reduce the limitation on public liability
established under section 170 e. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(e)).
(d) Effect on Amount of Public Liability.--
(1) In general.--Funds made available to the United States
under Article VII of the Convention with respect to a Price-
Anderson incident shall be used to satisfy public liability
resulting from the Price-Anderson incident.
(2) Amount.--The amount of public liability allowable under
section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210)
relating to a Price-Anderson incident under paragraph (1)
shall be increased by an amount equal to the difference
between--
(A) the amount of funds made available for the Price-
Anderson incident under Article VII of the Convention; and
(B) the amount of funds used under subsection (c) to cover
the contingent cost resulting from the Price-Anderson
incident.
(e) Retrospective Risk Pooling Program.--
(1) In general.--Except as provided in paragraph (2), each
nuclear supplier shall participate in a retrospective risk
pooling program in accordance with this section to cover the
contingent cost resulting from a covered incident outside the
United States that is not a Price-Anderson incident.
(2) Deferred payment.--
(A) In general.--The obligation of a nuclear supplier to
participate in the retrospective risk pooling program shall
be deferred until the United States is called on to provide
funds pursuant to Article VII of the Convention with respect
to a covered incident that is not a Price-Anderson incident.
(B) Amount of deferred payment.--The amount of a deferred
payment of a nuclear supplier under subparagraph (A) shall be
based on the risk-informed assessment formula determined
under subparagraph (C).
(C) Risk-informed assessment formula.--
(i) In general.--Not later than 3 years after the date of
enactment of this Act, and every 5 years thereafter, the
Secretary shall, by regulation, determine the risk-informed
assessment formula for the allocation among nuclear suppliers
of the contingent cost resulting from a covered incident that
is not a Price-Anderson incident, taking into account risk
factors such as--
(I) the nature and intended purpose of the goods and
services supplied by each nuclear supplier to each covered
installation outside the United States;
(II) the quantity of the goods and services supplied by
each nuclear supplier to each covered installation outside
the United States;
(III) the hazards associated with the supplied goods and
services if the goods and services fail to achieve the
intended purposes;
(IV) the hazards associated with the covered installation
outside the United States to which the goods and services are
supplied;
(V) the legal, regulatory, and financial infrastructure
associated with the covered installation outside the United
States to which the goods and services are supplied; and
(VI) the hazards associated with particular forms of
transportation.
(ii) Factors for consideration.--In determining the
formula, the Secretary may--
(I) exclude--
(aa) goods and services with negligible risk;
(bb) classes of goods and services not intended
specifically for use in a nuclear installation;
(cc) a nuclear supplier with a de minimis share of the
contingent cost; and
(dd) a nuclear supplier no longer in existence for which
there is no identifiable successor; and
(II) establish the period on which the risk assessment is
based.
(iii) Application.--In applying the formula, the Secretary
shall not consider any covered installation or transportation
for which funds would be available under section 170 of the
Atomic Energy Act of 1954 (42 U.S.C. 2210).
(iv) Report.--Not later than 5 years after the date of
enactment of this Act and every 5 years thereafter, the
Secretary shall submit to the Committee on Environment and
Public Works of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report on whether
there is a need for continuation or amendment of this
section, taking into account the effects of the
implementation of the Convention on the United States nuclear
industry and suppliers.
(f) Reporting.--
(1) Collection of information.--
(A) In general.--The Secretary may collect information
necessary for developing and implementing the formula for
calculating the deferred payment of a nuclear supplier under
subsection (e)(2).
(B) Provision of information.--Each nuclear supplier and
other appropriate persons shall make available to the
Secretary such information, reports, records, documents, and
other data as the Secretary determines, by regulation, to be
necessary or appropriate to develop and implement the formula
under subsection (e)(2)(C).
(2) Private insurance.--The Secretary shall make available
to nuclear suppliers, and insurers of nuclear suppliers,
information to support the voluntary establishment and
maintenance of private insurance against any risk for which
nuclear suppliers may be required to pay deferred payments
under this section.
(g) Effect on Liability.--Nothing in any other law
(including regulations) limits liability for a covered
incident to an amount equal to less than the amount
prescribed in paragraph 1(a) of Article IV of the Convention,
unless the law--
(1) specifically refers to this section; and
(2) explicitly repeals, alters, amends, modifies, impairs,
displaces, or supersedes the effect of this subsection.
(h) Payments to and by the United States.--
(1) Action by nuclear suppliers.--
(A) Notification.--In the case of a request for funds under
Article VII of the Convention resulting from a covered
incident that is not a Price-Anderson incident, the Secretary
shall notify each nuclear supplier of the amount of the
deferred payment required to be made by the nuclear supplier.
(B) Payments.--
(i) In general.--Except as provided in clause (ii), not
later than 60 days after receipt of a notification under
subparagraph (A), a nuclear supplier shall pay to the general
fund of the Treasury the deferred payment of the nuclear
supplier required under subparagraph (A).
(ii) Annual payments.--A nuclear supplier may elect to
prorate payment of the deferred payment required under
subparagraph (A) in 5 equal annual payments (including
interest on the unpaid balance at the prime rate prevailing
at the time the first payment is due).
(C) Vouchers.--A nuclear supplier shall submit payment
certification vouchers to the Secretary of the Treasury in
accordance with section 3325 of title 31, United States Code.
(2) Use of funds.--
(A) In general.--Amounts paid into the Treasury under
paragraph (1) shall be available to the Secretary of the
Treasury, without further appropriation and without fiscal
year limitation, for the purpose of making the contributions
of public funds required to be made by the United States
under the Convention.
(B) Action by secretary of treasury.--The Secretary of the
Treasury shall pay the contribution required under the
Convention to the court of competent jurisdiction under
Article XIII of the Convention with respect to the applicable
covered incident.
(3) Failure to pay.--If a nuclear supplier fails to make a
payment required under this subsection, the Secretary may
take appropriate action to recover from the nuclear
supplier--
(A) the amount of the payment due from the nuclear
supplier;
(B) any applicable interest on the payment; and
[[Page S7926]]
(C) a penalty of not more than twice the amount of the
deferred payment due from the nuclear supplier.
(i) Limitation on Judicial Review; Cause of Action.--
(1) Limitation on judicial review.--
(A) In general.--In any civil action arising under the
Convention over which Article XIII of the Convention grants
jurisdiction to the courts of the United States, any appeal
or review by writ of mandamus or otherwise with respect to a
nuclear incident that is not a Price-Anderson incident shall
be in accordance with chapter 83 of title 28, United States
Code, except that the appeal or review shall occur in the
United States Court of Appeals for the District of Columbia
Circuit.
(B) Supreme court jurisdiction.--Nothing in this paragraph
affects the jurisdiction of the Supreme Court of the United
States under chapter 81 of title 28, United States Code.
(2) Cause of action.--
(A) In general.--Subject to subparagraph (B), in any civil
action arising under the Convention over which Article XIII
of the Convention grants jurisdiction to the courts of the
United States, in addition to any other cause of action that
may exist, an individual or entity shall have a cause of
action against the operator to recover for nuclear damage
suffered by the individual or entity.
(B) Requirement.--Subparagraph (A) shall apply only if the
individual or entity seeks a remedy for nuclear damage (as
defined in Article I of the Convention) that was caused by a
nuclear incident (as defined in Article I of the Convention)
that is not a Price-Anderson incident.
(C) Effect of paragraph.--Nothing in this paragraph limits,
modifies, extinguishes, or otherwise affects any cause of
action that would have existed in the absence of enactment of
this paragraph.
(j) Right of Recourse.--This section does not provide to an
operator of a covered installation any right of recourse
under the Convention.
(k) Protection of Sensitive United States Information.--
Nothing in the Convention or this section requires the
disclosure of--
(1) any data that, at any time, was Restricted Data (as
defined in section 11 of the Atomic Energy Act of 1954 (42
U.S.C. 2014));
(2) information relating to intelligence sources or methods
protected by section 102A(i) of the National Security Act of
1947 (50 U.S.C. 403-1(i)); or
(3) national security information classified under
Executive Order 12958 (50 U.S.C. 435 note; relating to
classified national security information) (or a successor
regulation).
(l) Regulations.--
(1) In general.--The Secretary or the Commission, as
appropriate, may prescribe regulations to carry out section
170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) and
this section.
(2) Requirement.--Rules prescribed under this subsection
shall ensure, to the maximum extent practicable, that--
(A) the implementation of section 170 of the Atomic Energy
Act of 1954 (42 U.S.C. 2210) and this section is consistent
and equitable; and
(B) the financial and operational burden on a Commission
licensee in complying with section 170 of that Act is not
greater as a result of the enactment of this section.
(3) Applicability of provision.--Section 553 of title 5,
United States Code, shall apply with respect to the
promulgation of regulations under this subsection.
(4) Effect of subsection.--The authority provided under
this subsection is in addition to, and does not impair or
otherwise affect, any other authority of the Secretary or the
Commission to prescribe regulations.
(m) Effective Date.--This section takes effect on the date
of enactment of this Act.
______
SA 1684. Mrs. HUTCHISON (for herself and Mr. Cornyn) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
On page 21, strike lines 4 through 6 and insert the
following:
(A) implementation of the requirement would significantly
harm--
(i) the economy or environment of a State, region, or the
United States; or
(ii) any industry located in a State, region, or the United
States, particularly with respect to--
(I) producers of livestock, poultry, and pork products; and
(II) processors of food and food products;
______
SA 1685. Mr. HAGEL submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the end of subtitle B of title II, add the following:
SEC. 2__. ADVANCED COAL GENERATION DEPLOYMENT OF ADVANCED
COAL GENERATION UNITS.
(a) Definitions.--In this section:
(1) Air separation unit.--The term ``air separation unit''
means a technology capable of using ambient air to separate
and concentrate a gas with 95 percent oxygen concentration
for use in oxy fuel technology.
(2) Capture-ready.--The term ``capture ready'' means the
design of a new coal-fired unit that reduces the cost of and
facilitates the addition of carbon dioxide separation and
capture technologies after the unit has been placed into
service.
(3) Oxy fuel.--The term ``oxy fuel'' means a coal-fired
boiler that burns coal in an environment with a 95 percent
oxygen concentration.
(4) Subcritical pulverized coal unit.--The term
``subcritical pulverized coal unit'' means a coal-fired
boiler that operates--
(A) at a pressure below 3,200 pounds per square inch; and
(B) below a temperature of 1,025 degrees Fahrenheit.
(5) Supercritical pulverized coal unit.--The term
``supercritical pulverized coal unit'' means a coal-fired
boiler that--
(A) reaches an electricity generating efficiency of from 37
percent to 40 percent (High Heating Value); and
(B) operates at a minimum pressure of 3,500 pounds per
square inch and a minimum temperature of 1,050 degrees
Fahrenheit.
(6) Ultrasupercritical pulverized coal unit.--The term
``ultrasupercritical pulverized coal unit'' means a coal-
fired boiler that--
(A) reaches an electricity generating efficiency of more
than 43 percent (High Heating Value); and
(B) operates at a minimum pressure of 4,600 pounds per
square inch and a minimum temperature of 1,110 degrees
Fahrenheit.
(b) Exemption From New Source Review.--Effective beginning
on the date of enactment of this Act, any subcritical
pulverized coal unit in existence on the date of enactment of
this Act that is rebuilt with a supercritical pulverized coal
unit, or an ultrasupercritical pulverized coal unit, that
includes post-combustion carbon dioxide capture technology or
an oxy fuel pulverized coal unit shall be exempt from new
source review requirements under the Clean Air Act (42 U.S.C.
7401 et seq.) if--
(1) there is no appreciable increase in the rate of
regulated emissions calculated by quantity of pollutants
removed per ton of coal used; and
(2) the new unit does not--
(A) cause the area in which the unit is located to
deteriorate from an attainment to a nonattainment area; or
(B) alter the progress of the State in achieving attainment
under the applicable State implementation plan.
(c) Loan Guarantees for Oxy Fuel Air Separation Units and
Air-Blown Ultrasupercritical Pulverized Coal Units That Are
Capture-Ready.--Section 1703(b) of the Energy Policy Act of
2005 (42 U.S.C. 16513(b)) is amended by adding at the end the
following:
``(11) Air separation units and air-blown
ultrasupercritical pulverized coal units that are capture
ready (as the terms are defined in section 2__(a) of the
Renewable Fuels, Consumer Protection, and Energy Efficiency
Act of 2007).''.
______
SA 1686. Mr. ALLARD submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
SEC. _. EXTENSION OF QUALIFIED GREEN BUILDING AND SUSTAINABLE
DESIGN PROJECT BONDS.
(a) Subsection (l) of section 142 (relating to qualified
green building and sustainable design projects) is amended--
(1) by striking ``2009'' in paragraph (8) and inserting
``2012'', and
(2) by striking ``2009'' in paragraph (9) and inserting
``2012''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
______
SA 1687. Mr. BURR submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting
[[Page S7927]]
new emerging energy technologies, developing greater efficiency, and
creating a Strategic Energy Efficiency and Renewables Reserve to invest
in alternative energy, and for other purposes; which was ordered to lie
on the table; as follows:
Beginning on page 292, strike line 7 and all that follows
through page 293, line 6, and insert the following:
(4) the Department of Energy should be designated as the
lead United States Government agency in charge of formulating
and coordinating the national energy security policy of the
United States, and in furtherance of these goals, there
should be established within the Department of Energy an
Assistant Secretary of Energy for Energy Security whose
responsibilities should include--
(A) directing the development of the national energy
security strategy of the United States;
(B) coordinating the national energy security policy of the
United States with the Department of Defense, the Department
of State, and the National Security Council, as appropriate,
to address the impact of, and integrate national security and
foreign policy on, the national energy security policy of the
United States;
(C) monitoring international and domestic energy
developments to gauge their impact on the national energy
security policy of the United States and implementing changes
in such policy as necessary to maintain the national security
and energy security of the United States;
(D) identifying foreign sources of energy critical to the
national energy security of the United States and developing
strategies for ensuring United States access to critical
foreign energy resources;
(E) developing strategies for reducing United States
dependence on foreign sources of energy, including demand
reduction, efficiency improvement, and development of
alternative and new sources of domestic energy; and
(F) developing strategies in conjunction with the
Department of State for working with major international
producers and consumers, including China, Russia, the
European Union, and Africa, to minimize politicization of
global energy resources while ensuring access through global
energy markets.
______
SA 1688. Mr. BURR submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 313, strike lines 20 and 21 and insert the
following:
SEC. 707. ANNUAL NATIONAL ENERGY SECURITY STRATEGY REPORT.
(a) Reports.--
(1) In general.--Subject to paragraph (2), on the date on
which the President submits to Congress the budget for the
following fiscal year under section 1105 of title 31, United
States Code, the President shall submit to Congress a
comprehensive report on the national energy security of the
United States.
(2) New presidents.--In addition to the reports required
under paragraph (1), the President shall submit a
comprehensive report on the national energy security of the
United States by not later than 150 days after the date on
which the President assumes the office of President after a
presidential election.
(b) Contents.--Each report under this section shall
describe the national energy security strategy of the United
States, including a comprehensive description of--
(1) the worldwide interests, goals, and objectives of the
United States that are vital to the national energy security
of the United States;
(2) the foreign policy, worldwide commitments, and national
defense capabilities of the United States necessary--
(A) to deter political manipulation of world energy
resources; and
(B) to implement the national energy security strategy of
the United States;
(3) the proposed short-term and long-term uses of the
political, economic, military, and other authorities of the
United States--
(A) to protect or promote energy security; and
(B) to achieve the goals and objectives described in
paragraph (1);
(4) the adequacy of the capabilities of the United States
to protect the national energy security of the United States,
including an evaluation of the balance among the capabilities
of all elements of the national authority of the United
States to support the implementation of the national energy
security strategy; and
(5) such other information as the President determines to
be necessary to inform Congress on matters relating to the
national energy security of the United States.
(c) Classified and Unclassified Form.--Each national energy
security strategy report shall be submitted to Congress in--
(1) a classified form; and
(2) an unclassified form.
SEC. 708. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
______
SA 1689. Mr. BURR submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
After section 706, insert the following:
SEC. 707. NATIONAL SECURITY COUNCIL REORGANIZATION.
Section 101(a) of the National Security Act of 1947 (50
U.S.C. 402(a)) is amended--
(1) by redesignating paragraphs (5), (6), and (7) as
paragraphs (6), (7), and (8), respectively; and
(2) by inserting after paragraph (4) the following:
``(5) the Secretary of Energy;''.
______
SA 1690. Mr. MENENDEZ (for himself and Mr. Sanders) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
At the end, add the following:
TITLE VIII--SOLAR ENERGY
SEC. 801. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) solar energy is the most abundant energy source in the
United States;
(2) solar energy can play a significant role in the economy
of the United States;
(3) photovoltaic products are produced by domestic and
foreign manufacturers and are purchased by thousands of
people throughout the United States and foreign countries;
(4) photovoltaic products should be readily available and
marketed efficiently to ensure that the people of the United
States have adequate access to clean and renewable,
domestically-produced energy;
(5) the maintenance and expansion of existing markets for
solar energy are vital to the welfare of photovoltaic
producers and those concerned with marketing, using, and
producing photovoltaic products, as well as to the general
economy of the United States; and
(6) photovoltaic products move in interstate and foreign
commerce, and photovoltaic products that do not move in
interstate or foreign commerce directly burden or affect
interstate commerce of photovoltaic products.
(b) Purposes.--The purposes of this title are--
(1) to provide for the establishment of an orderly
procedure for financing (through assessments on all
photovoltaic products manufactured and shipped in the United
States and on photovoltaic products imported into the United
States) and carrying out a coordinated program of promotion
and research designed to strengthen the position of the solar
energy industry in the marketplace; and
(2) to maintain and expand domestic and foreign markets and
uses for solar energy and solar energy products.
SEC. 802. DEFINITIONS.
In this title:
(1) Assessment.--The term ``assessment'' means a fee
required to be paid for a photovoltaic product in accordance
with an order at a rate equal to $.02 per watt, based on the
nameplate capacity of the photovoltaic product (or an
equivalent capacity of the photovoltaic product for balance-
of-system components, as determined by the Secretary).
(2) Board.--The term ``Board'' means the Solar Energy
Promotion and Research Board established under an order and
described in section 803(b).
(3) Consumer information.--The term ``consumer
information'' means technology specifications, environmental
data, and other information that would assist consumers and
other persons in making evaluations and decisions regarding
the purchase and use of solar energy products.
(4) Department.--The term ``Department'' means the
Department of Energy.
(5) Foundation.--The term ``Foundation'' means the Solar
Energy Research and Education Foundation.
(6) Importer.--The term ``importer'' means any person that
imports a photovoltaic product into the United States.
(7) Industry information.--The term ``industry
information'' means information and programs that are
designed to lead to the development of new markets, marketing
strategies, increased efficiency, and activities to enhance
the image of the solar energy industry.
[[Page S7928]]
(8) Order.--The term ``order'' means a final solar energy
promotion and research order promulgated under section
803(b).
(9) Person.--The term ``person'' means any--
(A) individual;
(B) group of individuals;
(C) partnership;
(D) corporation;
(E) association;
(F) cooperative; or
(G) other entity.
(10) Photovoltaic product.--The term ``photovoltaic
product'' means--
(A) any photovoltaic cell, module, or other solar electric
product with a nameplate capacity that exceeds 1 watt; and
(B) any balance-of-system component (such as an inverter)
used in a solar electric system.
(11) Producer.--The term ``producer'' means any person that
manufacturers photovoltaic products.
(12) Promotion.--The term ``promotion'' means any action
(including paid advertising) to advance the image and
desirability of solar energy products to improve the
competitive position and stimulate the sales of solar energy
products in the marketplace.
(13) Research.--The term ``research'' means--
(A) studies testing the effectiveness of market development
and promotion efforts;
(B) studies relating to technological advancement or
environmental benefit; and
(C) other related solar energy research and new product
development.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(15) State.--The term ``State'' means--
(A) a State; and
(B) the District of Columbia.
(16) United states.--The term ``United States'' means the
all of the States.
SEC. 803. ORDERS.
(a) Proposed Order.--Not later than January 1, 2008, the
Secretary shall--
(1) publish in the Federal Register a proposed solar energy
promotion and research order; and
(2) provide notice and opportunity for public comment on
the proposed order.
(b) Final Order.--Not later than 120 days after the date of
publication of a proposed order in accordance with subsection
(a), the Secretary shall promulgate a final order, which
shall take effect as of that date of promulgation.
(c) Requirements.--A final order promulgated under
subsection (b) shall--
(1) provide for the establishment and selection of a Solar
Energy Promotion and Research Board, to be composed of
members who are producers or importers appointed by the
Secretary from nominations submitted by the Solar Energy
Industries Association;
(2) define the powers and duties of the Board, which
shall--
(A) hold at least an annual meeting; and
(B) include only the powers--
(i) to administer the order issued under this section, in
accordance with the terms and conditions of the order;
(ii) to recommend to the Secretary rules to carry out the
order;
(iii) to approve or disapprove budgets submitted by the
Foundation;
(iv) to receive, investigate, and report to the Secretary
complaints of violations of the order;
(v) to collect and use assessments in accordance with this
subsection; and
(vi) to recommend to the Secretary amendments to the order;
(3) specify the circumstances under which special meetings
of the Board may be held;
(4) provide that--
(A)(i) except as provided in clauses (ii) through (iv)--
(I) the term of a member appointed to the Board shall be 3
years; and
(II) no member appointed to the Board may serve more than 2
consecutive terms;
(ii) with respect to the initial appointments to the Board,
members shall be appointed in staggered 1-, 2-, and 3-year
terms, as determined by the Secretary;
(iii) the Secretary shall have a permanent appointment to
the Board; and
(iv) the President of the Solar Energy Industries
Association shall have a permanent appointment to the Board;
(B) Board members shall serve without compensation, but
shall be reimbursed for their reasonable expenses incurred in
carrying out the duties of the Board;
(C) the total costs of collection of assessments and
administrative staff incurred by the Board during any fiscal
year shall not exceed 5 percent of the projected total
assessments to be collected by the Board for the fiscal year;
and
(D) the Board shall use, to the maximum extent practicable,
the resources, staff, and facilities of industry
organizations to carry out the duties of the Board;
(5) provide that the Board shall oversee the disbursement
of assessment funds to the Foundation for the promotion of
solar energy;
(6) provide that the Foundation--
(A) shall develop plans or projects of promotion and
advertising, research, consumer information, and industry
information, to be funded by assessments collected by the
Board;
(B) shall, in developing those plans or projects, to the
maximum extent practicable, take into account similarities
and differences between different solar technologies;
(C) to ensure coordination and efficient use of funds,
shall enter into contracts or agreements with established
nonprofit organizations to implement programs of promotion
and advertising, research, consumer information, and industry
information, on the condition that any such contract or
agreement provides that--
(i) the person entering the contract or agreement shall
develop and submit to the Foundation a proposal for a plan or
project, together with 1 or more budgets that describe the
estimated costs to be incurred for the plan or project;
(ii) the plan or project shall become effective on the
approval of the Secretary; and
(iii) the person entering the contract or agreement shall,
with respect to the plan or project--
(I) keep accurate records of all transactions;
(II) account for funds received and expended;
(III) submit to the Foundation periodic reports on
activities conducted; and
(IV) submit such other reports as the Secretary, Board, or
Foundation may require; and
(D) may use the resources, staff, and facilities of the
Board and industry organizations to carry out the duties of
the Foundation;
(7) provide that an employee of an industry organization--
(A) may not receive compensation for work performed for the
Foundation; but
(B) shall be reimbursed from assessments collected by the
Board for reasonable expenses incurred in performing that
work;
(8) require the Board and the Foundation--
(A) to maintain such books and records, which shall be
available to the Secretary for inspection and audit, as the
Secretary may prescribe;
(B) to prepare and submit to the Secretary, from time to
time, such reports as the Secretary may require; and
(C) to account for the receipt and disbursement of all
funds received by the Board and Foundation;
(9) provide that--
(A) each producer shall, for each photovoltaic product
produced by the producer, collect an assessment and remit the
assessment to the Board in a manner prescribed by the order;
(B) each importer shall, for each photovoltaic product
imported by the importer, pay to the Board an assessment in
the manner prescribed by the order; and
(C) the Board shall use assessments received under this
paragraph--
(i) to provide funds to the Foundation for use in carrying
out solar energy projects;
(ii) to pay the costs of plans and projects carried out by
the Board;
(iii) to reimburse employees as described in paragraph
(7)(B);
(iv) to pay the administrative expenses incurred by the
Board in carrying out the duties of the Board, and by the
Secretary, after promulgation of the order (including
administrative expenses incurred in carrying out a referendum
under section 804); and
(v) to establish a reasonable reserve;
(10) permit the Board, with the approval of the Secretary,
to invest funds collected through assessments, pending
disbursement, only in--
(A) obligations of the United States (or any agency of the
United States);
(B) general obligations of any State (or any political
subdivision of a State);
(C) any interest-bearing account or certificate of deposit
of a bank that is a member of the Federal Reserve System; or
(D) obligations fully guaranteed as to principal and
interest by the United States;
(11) prohibit any funds received by the Board under the
order from being used to pay the salary of any Federal
employee, other than for recommending amendments to the
order;
(12) require that each producer and importer--
(A) maintain and make available for inspection such books
and records as may be required by the order, including
records of persons from which the producer or importer
received payment for photovoltaic products produced or
imported by the producer or importer;
(B) submit reports at such time, in such manner, and having
such content as is prescribed by the order; and
(C) make information described in subparagraphs (A) and (B)
available to the Secretary, upon request, for use in
administering and enforcing the order or this title; and
(13) contain such other terms and conditions as are
consistent with this title and necessary to carry out the
order.
(d) Availability of Information.--
(1) In general.--Subject to paragraph (2), information made
available to the Secretary in accordance with subsection
(c)(12) shall be--
(A) kept confidential by all officers and employees of the
Department; and
(B) disclosed only--
(i) in the course of a civil action or administrative
proceeding involving the order--
(I) that is brought or initiated at the request of the
Secretary; or
(II) to which the Secretary or any other officer of the
United States is a party; and
(ii) to the extent that the Secretary or a court of law
determines the information to be relevant.
[[Page S7929]]
(2) No prohibition on issuance or publication of certain
information.--Nothing in this paragraph prohibits--
(A) the issuance of any general statement, based on any
report submitted to the Secretary under subsection
(c)(12)(B), of the number of persons subject to the order or
statistical data collected by those persons, on the condition
that the statement does not identify the information provided
by any person; or
(B) the publication, by direction of the Secretary, of the
name of any person violating the order, together with a
statement of the particular provisions of the order violated
by the person.
(3) Prohibited disclosure.--
(A) In general.--Except as otherwise provided in this
subsection, no information obtained under this title or the
order may be made available to any agency or officer of the
United States for any purpose other than the implementation
of this title and the order (including the conduct of any
investigation or enforcement action necessary to implement
this title or the order).
(B) Penalty for violation.--A person that violates
subparagraph (A) shall be--
(i) fined not more than $1,000, imprisoned for not more
than 1 year, or both; and
(ii) if the person is an officer or employee of the Board
or the Department, removed from office.
SEC. 804. REFERENDUM.
(a) Continuation or Termination of Order.--
(1) Initial referendum.--Not later than 4 years after the
date of promulgation of the order or such earlier date as may
be recommended by the Board, the Secretary shall conduct an
initial referendum among persons who have been producers or
importers during a representative period, as determined by
the Secretary, to determine whether the producers and
importers favor the termination of the order.
(2) Second referendum.--After conducting the initial
referendum under paragraph (1), on the request of a
representative group comprising 25 percent or more of the
producers and importers that voted in the initial referendum,
the Secretary may conduct a second referendum to determine
whether producers and importers described in paragraph (1)
favor the termination of the order.
(3) Continuation of order.--The order shall remain in
effect only if the Secretary determines that the order was
approved by not less than--
(A) a majority of the producers and importers voting in the
initial referendum under paragraph (1); or
(B) in the case of a second referendum conducted under
paragraph (2), a majority of the producers and importers
voting in that second referendum.
(4) Failure to approve continuation.--If the Secretary
determines that continuation of the order is not approved by
a majority of the persons voting in the initial referendum
under paragraph (1) or a second referendum under paragraph
(2), the Secretary shall--
(A) terminate the collection of assessments under the order
by not later than 180 days after the date on which the
Secretary makes that determination; and
(B) terminate the order, in an orderly manner, as soon as
practicable after that date.
(b) Administrative Matters.--
(1) Reimbursement.--Subject to section 803(c)(11)(A), the
Department shall be reimbursed for expenditures relating to
the conduct of a referendum under this section from
assessments received by the Board in accordance with the
order.
(2) Time and place of referendum; certification.--Subject
to paragraph (3)--
(A) a referendum conducted under this section shall be
conducted at local offices on a date and as determined by the
Secretary; and
(B) at such a referendum, a producer or importer--
(i) shall certify that the producer or importer was engaged
in the production of photovoltaic products during a
representative period determined by the Secretary; and
(ii) on the same day, shall be provided an opportunity to
vote in the referendum.
(3) Absentee mail ballot.--The Secretary shall--
(A) provide for a producer or importer to receive an
absentee mail ballot for use in voting in a referendum on
request; and
(B) establish rules by which a producer or importer may use
such an absentee mail ballot to vote in a referendum.
SEC. 805. ENFORCEMENT.
(a) Restraining Order; Civil Fine.--If the Secretary
determines that the administration and enforcement of this
title or the order would be adequately served by the issuance
of an administrative order or assessment of a civil penalty,
following an opportunity for an administrative hearing on the
record, the Secretary may--
(1) issue an administrative order to restrain or prevent a
person from violating the order; and
(2) assess a civil fine of not more than $25,000 for each
violation of the order.
(b) Jurisdiction of District Court.--The United States
district courts shall have exclusive jurisdiction over any
civil action brought to enforce, or to prevent or restrain a
person from violating, the order or this title.
(c) Civil Action to Be Referred to Attorney General.--A
civil action authorized to be brought under this section
shall be referred to the Attorney General for appropriate
action.
SEC. 806. INVESTIGATORY POWERS AND PROCEDURES.
(a) Investigations.--The Secretary may conduct such
investigations as the Secretary determines to be necessary--
(1) for the effective administration of this title; or
(2) to determine whether any person subject to this title
has engaged or is about to engage in any act that constitutes
or will constitute a violation of the order or this title.
(b) Powers.--
(1) In general.--In conducting an investigation described
in paragraph (1), the Secretary may administer such oaths and
affirmations, subpoena and compel the attendance of such
witnesses, receive such evidence, and require the production
of such records as are relevant to the investigation.
(2) Geographical boundary.--The attendance of witnesses and
the production of records under paragraph (1) may be required
from any place in the United States.
(3) Judicial action.--In a case of contumacy by, or refusal
to obey a subpoena issued to, any person, the Secretary may
request any court of the United States within the
jurisdiction of which the investigation or proceeding is
carried on, or in which the person resides or carries on
business, to issue, and such a court may issue, an order
requiring the attendance and testimony of the person and the
production of any requested records.
(4) Contempt.--Any failure to obey an order of a court
issued under paragraph (3) may be punished by the court as a
contempt of the court.
(5) Service of process.--Process in any case described in
this subsection may be served--
(A) in the judicial district in which a person is an
inhabitant; or
(B) wherever the person may be found.
SEC. 807. EFFECT ON OTHER AUTHORITY.
Nothing in this title preempts, supercedes, or otherwise
affects any other Federal or State program relating to solar
energy promotion.
SEC. 808. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out the consumer education activities
authorized by the order and this title.
______
SA 1691. Mr. WYDEN (for himself and Mr. Sununu) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. REMOVAL OF ROYALTY RELIEF AUTHORITY.
Sections 344 and 345 of the Energy Policy Act of 2005 (42
U.S.C. 15904, 15905) are repealed.
______
SA 1692. Ms. MURKOWSKI submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
SEC. ___. LICENSING OF LAKE DIANA HYDROELECTRIC PROJECT.
(a) In General.--Notwithstanding any other provision of
law, the license to construct the project described in the
Federal Energy Regulatory Commission preliminary permit
application numbered 12716-000 is approved.
(b) Project Construction Requirements.--The project
referred to in subsection (a) shall be carried out in
accordance with the notice of intent dated March 29, 2007, as
determined by the Federal Energy Regulatory Commission under
subsection (c).
(c) Approval.--The Federal Energy Regulatory Commission
shall approve the project only if the Commission determines
that the project--
(1) will be carried out in accordance with the notice of
intent referred to in subsection (b); and
(2) will best develop the affected water resources, in
accordance with section 10(a) of the Federal Power Act (16
U.S.C. 803(a)).
(d) License Conditions.--The license for the project
referred to in subsection (a) shall include conditions
identical to the license conditions relating to the use of
affected water determined to be necessary and appropriate by
the Federal Energy Regulatory
[[Page S7930]]
Commission under section 10(a) of that Act (16 U.S.C.
803(a)).
______
SA 1693. Mr. BINGAMAN (for himself, Mrs. Boxer, and Mr. Reid)
submitted an amendment intended to be proposed to amendment SA 1502
proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's
dependency on foreign oil by investing in clean, renewable, and
alternative energy resources, promoting new emerging energy
technologies, developing greater efficiency, and creating a Strategic
Energy Efficiency and Renewables Reserve to invest in alternative
energy, and for other purposes; which was ordered to lie on the table;
as follows:
On page 59, after line 21, insert the following:
Subtitle D--Environmental Safeguards
SEC. 161. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS.
(a) In General.--The Secretary shall establish a grant
program to encourage the production of advanced biofuels.
(b) Requirements and Priority.--In making grants under this
section, the Secretary--
(1) shall make awards to the proposals for advanced
biofuels with the greatest reduction in lifecycle greenhouse
gas emissions compared to the comparable motor vehicle fuel
lifecycle emissions during calendar year 2007; and
(2) shall not make an award to a project that does not
achieve at least a 50-percent reduction in such lifecycle
greenhouse gas emissions.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $500,000,000 for
the period of fiscal years 2008 through 2015.
SEC. 162. STUDIES OF EFFECTS OF RENEWABLE FUEL USE.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by adding at the end the following:
``(t) Studies of Effects of Renewable Fuel Use.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection, the Administrator shall offer
to enter into appropriate arrangements with the National
Academy of Sciences and any other independent research
institute determined to be appropriate by the Administrator,
in consultation with appropriate Federal agencies, to conduct
2 studies on the effects of increased domestic use of
renewable fuels under the Renewable Fuels, Consumer
Protection, and Energy Efficiency Act of 2007.
``(2) Matters to be studied.--
``(A) In general.--The studies under this subsection shall
assess, quantify, and recommend analytical methodologies in
relation to environmental changes associated with the
increased domestic use of renewable fuels under the Renewable
Fuels, Consumer Protection, and Energy Efficiency Act of
2007, including production, handling, transportation, and use
of the fuels.
``(B) Specific matters.--The studies shall include an
assessment and quantification, to the maximum extent
practicable, of significant changes--
``(i) in air and water quality and the quality of other
natural resources;
``(ii) in land use patterns;
``(iii) in the rate of deforestation in the United States
and globally;
``(iv) to greenhouse gas emissions;
``(v) to significant geographic areas and habitats with
high biodiversity values (including species richness, the
presence of species that are exclusively native to a place,
or the presence of endangered species); or
``(vi) in the long-term capacity of the United States to
produce biomass feedstocks.
``(C) Baseline comparison.--In making an assessment or
quantifying effects of increased use of renewable fuels, the
studies shall use an appropriate baseline involving increased
use of the conventional transportation fuels, if displacement
by use of renewable fuels had not occurred.
``(3) Reports to congress.--The Administrator shall submit
to Congress a report summarizing the assessments and findings
of--
``(A) the first study, along with any recommendations by
the Administrator to mitigate adverse effects identified by
the study, not later than 3 years after the date of enactment
of this subsection; and
``(B) the second study, along with any recommendations by
the Administrator to mitigate adverse effects identified by
the study, not later December 31, 2015.''.
SEC. 163. INTEGRATED CONSIDERATION OF WATER QUALITY IN
DETERMINATIONS ON FUELS AND FUEL ADDITIVES.
Section 211(c)(1) of the Clean Air Act (42 U.S.C.
7545(c)(1)) is amended--
(1) by striking ``nonroad vehicle (A) if in the judgment of
the Administrator'' and inserting ``nonroad vehicle--
``(A) if, in the judgment of the Administrator, any fuel or
fuel additive or'';
(2) in subparagraph (A), by striking ``air pollution
which'' and inserting ``air pollution or water pollution
(including any degradation in the quality of groundwater)
that''; and
(3) by striking ``, or (B) if'' and inserting the
following: ``; or
``(B) if''.
SEC. 164. ANTI-BACKSLIDING.
Section 211 of the Clean Air Act (42 U.S.C. 7545) (as
amended by section 162) is amended by adding at the end the
following:
``(u) Prevention of Air Quality Deterioration.--
``(1) Study.--
``(A) In general.--Not later than 18 months after the date
of enactment of the Renewable Fuels, Consumer Protection, and
Energy Efficiency Act of 2007, the Administrator shall
complete a study to determine whether the renewable fuel
volumes required by that Act will adversely impact air
quality as a result of changes in vehicle and engine
emissions of air pollutants regulated under this Act.
``(B) Considerations.--The study shall include
consideration of--
``(i) different blend levels, types of renewable fuels, and
available vehicle technologies; and
``(ii) appropriate national, regional, and local air
quality control measures.
``(2) Regulations.--Not later than 3 years after the date
of enactment of the Renewable Fuels, Consumer Protection, and
Energy Efficiency Act of 2007, the Administrator shall--
``(A) promulgate regulations to implement appropriate
measures to mitigate, to the greatest extent achievable,
considering the results of the study under paragraph (1), any
adverse impacts on air quality, as the result of the
renewable volumes required by that Act; or
``(B) make a determination that no such measures are
necessary.
``(3) Other requirements.--Nothing in title I of the
Renewable Fuels, Consumer Protection, and Energy Efficiency
Act of 2007 supercedes or otherwise affects any Federal or
State requirement under any other provision of law that is
more stringent than any requirement of this title.''.
______
SA 1694. Mr. BINGAMAN (for himself, Mrs. Boxer, and Mr. Reid)
submitted an amendment intended to be proposed to amendment SA 1502
proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's
dependency on foreign oil by investing in clean, renewable, and
alternative energy resources, promoting new emerging energy
technologies, developing greater efficiency, and creating a Strategic
Energy Efficiency and Renewables Reserve to invest in alternative
energy, and for other purposes; which was ordered to lie on the table;
as follows:
At the end of the amendment, add the following:
SEC. 165. LIFECYCLE GREENHOUSE GAS EMISSIONS FOR ADVANCED
BIOFUELS.
(a) 50-Percent Reduction.--In addition to or as part of the
regulations promulgated under section 111(a)(1), the
President shall promulgate regulations to ensure that
advanced biofuels achieve at least a 50-percent reduction in
lifecycle greenhouse gas emissions compared to the comparable
transportation fuel.
(b) Failure To Achieve.--Notwithstanding paragraphs (1) and
(3) of section 102 and section 111(a)--
(1) an advanced biofuel that achieves a reduction of at
least 20 percent, but less than 50 percent, in lifecycle
greenhouse gas emissions compared to gasoline shall be
considered a conventional biofuel under section 111(a); and
(2) an advanced biofuel that achieves a reduction of less
than 20 percent in lifecycle greenhouse gas emissions
compared to gasoline shall not be considered to be a
renewable fuel under section 111(a).
______
SA 1695. Mr. BINGAMAN (for himself, Mrs. Boxer, and Mr. Reid)
submitted an amendment intended to be proposed to amendment SA 1502
proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's
dependency on foreign oil by investing in clean, renewable, and
alternative energy resources, promoting new emerging energy
technologies, developing greater efficiency, and creating a Strategic
Energy Efficiency and Renewables Reserve to invest in alternative
energy, and for other purposes; which was ordered to lie on the table;
as follows:
On page 7, between lines 23 and 24, insert the following:
(4) Lifecycle greenhouse gas emissions.--The term
``lifecycle greenhouse gas emissions'' means the aggregate
quantity of greenhouse gases attributable to the production,
transportation, and use of renewable fuel, including the
production, extraction, cultivation, distribution, marketing,
and transportation of feedstocks, as modified by deducting,
as determined by the Administrator of the Environmental
Protection Agency--
(A) any greenhouse gases captured at the facility and
sequestered; and
(B) the carbon content, expressed in units of carbon
dioxide equivalent, of any feedstock that is renewable
biomass.
On page 7, line 24, strike ``(4)'' and insert ``(5)''.
On page 9, line 11, strike ``(5)'' and insert ``(6)''.
On page 10, line 1, strike ``(6)'' and insert ``(7)''.
[[Page S7931]]
On page 10, line 3, strike ``(7)'' and insert ``(8)''.
______
SA 1696. Mr. NELSON of Nebraska (for himself, Mr. Craig, Mr. Crapo,
Mr. Kohl, Mr. Allard, and Mr. Thune) submitted an amendment intended to
be proposed to amendment SA 1502 proposed by Mr. Reid to the bill H.R.
6, to reduce our Nation's dependency on foreign oil by investing in
clean, renewable, and alternative energy resources, promoting new
emerging energy technologies, developing greater efficiency, and
creating a Strategic Energy Efficiency and Renewables Reserve to invest
in alternative energy, and for other purposes; which was ordered to lie
on the table; as follows:
At the appropriate place, insert the following:
SEC. 2. CREDIT FOR PRODUCTION OF BIOGAS FROM CERTAIN
RENEWABLE FEEDSTOCKS.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 40A the following new section:
``SEC. 40B. BIOGAS PRODUCED FROM CERTAIN RENEWABLE
FEEDSTOCKS.
``(a) General Rule.--For purposes of section 38, the
qualified biogas production credit for any taxable year is an
amount equal to the product of--
``(1) $4.27, and
``(2) each million British thermal units (mmBtu) of
biogas--
``(A) produced by the taxpayer--
``(i) from qualified energy feedstock, and
``(ii) at a qualified facility, and
``(B) either--
``(i) sold by the taxpayer to an unrelated person during
the taxable year, or
``(ii) used by the taxpayer during the taxable year.
``(b) Definitions.--
``(1) Biogas.--The term `biogas' means a gas that--
``(A) is derived by processing qualified energy feedstock
through anaerobic digestion, gasification, or other similar
processes, and
``(B) is an energy or fuel alternative to fossil fuels such
as coal, natural gas or petroleum-based products.''
``(2) Qualified energy feedstock.--
``(A) In general.--The term `qualified energy feedstock'
means--
``(i) manure of agricultural livestock, including litter,
wood shavings, straw, rice hulls, bedding material, and other
materials incidentally collected with the manure,
``(ii) any nonhazardous, cellulosic, or other organic
agricultural or food industry byproduct or waste material
that is derived from--
``(I) harvesting residues,
``(II) wastes or byproducts from fermentation processes,
ethanol production, biodiesel production, slaughter of
agricultural livestock, food production, food processing, or
food service, or
``(III) other organic wastes, byproducts, or sources, or
``(iii) solid wood waste materials, including waste
pallets, crates, dunnage, manufacturing and construction wood
wastes, and landscape or right-of-way tree trimmings.
``(B) Exclusions.--The term `qualified energy feedstock'
does not include--
``(i) pressure-treated, chemically-treated, or painted wood
wastes,
``(ii) municipal solid waste,
``(iii) landfills, or
``(iv) paper that is commonly recycled.
``(C) Agricultural livestock.--The term `agricultural
livestock' means poultry, cattle, sheep, swine, goats,
horses, mules, and other equines.
``(3) Qualified facility.--The term `qualified facility'
means a facility that--
``(A) uses anaerobic digestion technology, gasification
technology, or other similar technologies to process
qualified energy feedstock into biogas,
``(B) is owned by the taxpayer,
``(C) is located in the United States,
``(D) is originally placed in service before January 1,
2018, and
``(E) the biogas output of which is--
``(i) marketed through interconnection with a gas
distribution or transmission pipeline, or
``(ii) used on-site or off-site in a quantity that is
sufficient to offset the consumption of at least 50,000 mmBtu
annually of commercially-marketed fuel derived from coal,
crude oil, natural gas, propane, or other fossil fuel.
``(c) Special Rules.--For purposes of this section--
``(1) Production attributable to the taxpayer.--In the case
of a facility in which more than 1 person has an ownership
interest, except to the extent provided in regulations
prescribed by the Secretary, production from the qualified
facility shall be allocated among such persons in proportion
to their respective ownership interests in the gross sales
from such qualified facility.
``(2) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section
52(b). In the case of a corporation which is a member of an
affiliated group of corporations filing a consolidated
return, such corporation shall be treated as selling biogas
to an unrelated person if such biogas is sold to such a
person by another member of such group.
``(3) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(4) Coordination with credit from producing fuel from a
nonconventional source.--The amount of biogas produced and
sold or used by the taxpayer during any taxable year which is
taken into account under this section shall be reduced by the
amount of biogas produced and sold by the taxpayer in such
taxable year which is taken into account under section 45K.
``(5) Credit eligibility in the case of government-owned
facilities using poultry waste.--In the case of a facility
using poultry waste to produce biogas and owned by a
governmental unit, subparagraph (B) of subsection (b)(3)
shall be applied by substituting `is leased or operated by
the taxpayer' for `is owned by the taxpayer'.
``(d) Transferability of Credit.--
``(1) In general.--A taxpayer may transfer the credit under
this section through an assignment to any person. Such
transfer may be revoked only with the consent of the
Secretary.
``(2) Regulations.--The Secretary shall prescribe such
regulations as necessary to ensure that any credit
transferred under paragraph (1) is claimed once and not
reassigned by such other person.
``(e) Adjustment Based on Inflation.--
``(1) In general.--The $4.27 amount under subsection (b)(1)
shall be adjusted by multiplying such amount by the inflation
adjustment factor for the calendar year in which the sale
occurs. If any amount as increased under the preceding
sentence is not a multiple of 0.1 cent, such amount shall be
rounded to the nearest multiple of 0.1 cent.
``(2) Computation of inflation adjustment factor.--
``(A) In general.--The Secretary shall, not later than
April 1 of each calendar year, determine and publish in the
Federal Register the inflation adjustment factor in
accordance with this paragraph.
``(B) Inflation adjustment factor.--The term `inflation
adjustment factor' means, with respect to a calendar year, a
fraction the numerator of which is the GDP implicit price
deflator for the preceding calendar year and the denominator
of which is the GDP implicit price deflator for calendar year
2007. The term `GDP implicit price deflator' means the most
recent revision of the implicit price deflator for the gross
domestic product as computed and published by the Department
of Commerce before March 15 of the calendar year.
``(f) Application of Section.--This section shall apply
with respect to biogas produced and sold--
``(1) after the date of the enactment of this section, and
``(2) before the date on which the Secretary of Energy
certifies that 100,000,000 British thermal units of biogas
have been produced at qualified facilities after such
date.''.
(b) Credit Treated as Business Credit.--Section 38(b) of
the Internal Revenue Code of 1986 is amended by striking
``plus'' at the end of paragraph (30), by striking the period
at the end of paragraph (31) and inserting ``, plus'', and by
adding at the end the following new paragraph:
``(32) the qualified biogas production credit under section
40B(a).''.
(c) Credit Allowed Against AMT.--Section 38(c)(4)(B) 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)(II) and inserting ``, and'', and by adding at
the end the following new clause:
``(iii) the credit determined under section 40B.''.
(d) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 is amended by inserting after the item
relating to section 40A the following new item:
``Sec. 40B. Biogas produced from certain renewable feedstocks.''.
(e) Effective Date.--The amendments made by this section
shall apply to biogas produced and sold or used in taxable
years beginning after the date of the enactment of this Act.
______
SA 1697. Mr. WEBB submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 283, after line 20, insert the following:
(d) Major Energy Producer Records.--
(1) In general.--Following the declaration of an energy
emergency by the President under section 606, a major energy
producer (as defined by section 702) shall maintain and shall
make available to the Federal Trade Commission, such books,
accounts, memoranda, and other records as the Commission
determines are relevant to determine whether the producer is
in violation of this title.
(2) Retention.--A major energy producer subject to
paragraph (1) shall retain records
[[Page S7932]]
required by paragraph (1) for a period of 1 year after the
expiration of the declaration of an energy emergency.
______
SA 1698. Ms. CANTWELL submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
In section 102(4), strike subparagraph (A) and insert the
following:
(A) nonmerchantable materials or precommercial thinnings
that--
(i) are byproducts of preventive treatments, such as trees,
wood, brush, thinnings, chips, and slash, that are removed--
(I) to reduce hazardous fuels;
(II) to reduce or contain disease or insect infestation; or
(III) to restore forest health;
(ii) would not otherwise be used for higher-value products;
and
(iii) are harvested from 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))--
(I) where permitted by law; and
(II) in accordance with--
(aa) applicable land management plans; and
(bb) the requirements for old-growth maintenance,
restoration, and management direction of paragraphs (2), (3),
and (4) of subsection (e) and the requirements for large-tree
retention of subsection (f) of section 102 of the Healthy
Forests Restoration Act of 2003 (16 U.S.C. 6512); or
______
SA 1699. Ms. CANTWELL submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
Beginning on page 117, strike line 21 and all that follows
through page 118, line 10, and insert the following:
SEC. 241. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary shall establish a
research and development program to determine ways in which--
(1) the weight of motor vehicle structures may be reduced
to improve fuel efficiency without compromising passenger
safety;
(2) the cost of primary lightweight materials (such as
high-strength steel alloys, aluminum, magnesium, and carbon
fiber for reinforced polymer composites) with the properties
required for the construction of lighter-weight vehicles may
be reduced; and
(3) the cost of processing, joining, and recycling
lightweight materials for high-volume applications may be
reduced.
(b) Authorization of Appropriations.--There is authorized
to the appropriated to carry out this section $90,000,000 for
each of fiscal years 2007 through 2012.
______
SA 1700. Ms. COLLINS submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the end of subtitle B of title I, add the following:
SEC. 13_. RESEARCH AND DEVELOPMENT IN SUPPORT OF LOW-CARBON
FUELS.
(a) Declaration of Policy.--Congress declares that, in
order to achieve maximum reductions in greenhouse gas
emissions, enhance national security, and ensure the
protection of wildlife habitat, biodiversity, water quality,
air quality, and rural and regional economies throughout the
lifecycle of each low-carbon fuel, it is necessary and
desirable to undertake a combination of basic and applied
research, as well as technology development and
demonstration, involving the colleges and universities of the
United States, in partnership with the Federal Government,
State governments, and the private sector.
(b) Purpose.--The purpose of this section is to provide for
research support to facilitate the development of sustainable
markets and technologies to produce and use woody biomass and
other low-carbon fuels for the production of thermal and
electric energy, biofuels, and bioproducts.
(c) Definition of Fuel Emission Baseline.--In this section,
the term ``fuel emission baseline'' means the average
lifecycle greenhouse gas emissions per unit of energy of the
fossil fuel component of conventional transportation fuels in
commerce in the United States in calendar year 2008, as
determined by the President.
(d) Grant Program.--The President shall establish a program
to provide to eligible entities (as identified by the
President) grants for use in--
(1) providing financial support for not more than 4 nor
less than 6 demonstration facilities that--
(A) use woody biomass to deploy advanced technologies for
production of thermal and electric energy, biofuels, and
bioproducts; and
(B) are targeted at regional feedstocks and markets;
(2) conducting targeted research for the development of
cellulosic ethanol and other liquid fuels from woody or other
biomass that may be used in transportation or stationary
applications, such as industrial processes or industrial,
commercial, and residential heating;
(3) conducting research into the best scientifically-based
and periodically-updated methods of assessing and certifying
the impacts of each low-carbon fuel with respect to--
(A) the reduction in lifecycle greenhouse gas emissions of
each fuel as compared to--
(i) the fuel emission baseline; and
(ii) the greenhouse gas emissions of other sectors, such as
the agricultural, industrial, and manufacturing sectors;
(B) the contribution of the fuel toward enhancing the
energy security of the United States by displacing imported
petroleum and petroleum products;
(C) any impacts of the fuel on wildlife habitat,
biodiversity, water quality, and air quality; and
(D) any effect of the fuel with respect to rural and
regional economies;
(4) conducting research to determine to what extent the use
of low-carbon fuels in the transportation sector would impact
greenhouse gas emissions in other sectors, such as the
agricultural, industrial, and manufacturing sectors;
(5) conducting research for the development of the supply
infrastructure that may provide renewable biomass feedstocks
in a consistent, predictable, and environmentally-sustainable
manner;
(6) conducting research for the development of supply
infrastructure that may provide renewable low-carbon fuels in
a consistent, predictable, and environmentally-sustainable
manner; and
(7) conducting policy research on the global movement of
low-carbon fuels in a consistent, predictable, and
environmentally-sustainable manner.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $45,000,000 for fiscal year 2009;
(2) $50,000,000 for fiscal year 2010;
(3) $55,000,000 for fiscal year 2011;
(4) $60,000,000 for fiscal year 2012; and
(5) $65,000,000 for fiscal year 2013.
______
SA 1701. Mrs. DOLE submitted an amendment to be proposed by her to
the bill S. 1639, to provide for comprehensive immigration reform and
for other purposes; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
(s) Definition of Aggravated Felony and Additional Grounds
for Ineligibility for Z Nonimmigrant Status.--
(1) Aggravated felony.--Section 101(a)(43) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)(43)) is
amended--
(A) by striking ``and'' at the end of subparagraph (T);
(B) by striking the period at the end of subparagraph (U)
and inserting ``; and'' and
(C) by adding at the end the following:
``(V) a second conviction for drunk driving, regardless of
the State in which the conviction occurred or whether the
offense is classified as a misdemeanor or a felony under
State law.''.
(2) Grounds for ineligibility.--In addition to the grounds
of ineligibility described in subsection (d)(1)(F), an alien
shall be ineligible for Z nonimmigrant status if the alien
has been convicted of drunk driving, regardless of the State
in which the conviction occurred or whether the offense is
classified as a misdemeanor or a felony under State law.
______
SA 1702. Ms. SNOWE (for herself and Mr. Kerry) submitted an amendment
intended to be proposed to amendment SA 1502 proposed by Mr. Reid to
the bill H.R. 6, to reduce our Nation's dependency on foreign oil by
investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
On page 161, between lines 2 and 3, insert the following:
[[Page S7933]]
SEC. 269. EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY
EFFICIENCY.
Section 7(a)(31) of the Small Business Act (15 U.S.C.
636(a)(31)) is amended by adding at the end the following:
``(F) Express loans for renewable energy and energy
efficiency.--
``(i) Definitions.--In this subparagraph--
``(I) the term `biomass'--
``(aa) means any organic material that is available on a
renewable or recurring basis, including--
``(AA) agricultural crops;
``(BB) trees grown for energy production;
``(CC) wood waste and wood residues;
``(DD) plants (including aquatic plants and grasses);
``(EE) residues;
``(FF) fibers;
``(GG) animal wastes and other waste materials; and
``(HH) fats, oils, and greases (including recycled fats,
oils, and greases); and
``(bb) does not include--
``(AA) paper that is commonly recycled; or
``(BB) unsegregated solid waste;
``(II) the term `energy efficiency project' means the
installation or upgrading of equipment that results in a
significant reduction in energy usage; and
``(III) the term `renewable energy system' means a system
of energy derived from--
``(aa) a wind, solar, biomass (including biodiesel), or
geothermal source; or
``(bb) hydrogen derived from biomass or water using an
energy source described in item (aa).
``(ii) Loans.--Loans may be made under the `Express Loan
Program' for the purpose of--
``(I) purchasing a renewable energy system; or
``(II) an energy efficiency project for an existing
business.''.
______
SA 1703. Ms. MURKOWSKI submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place insert the following:
SEC. ___. TAX TREATMENT OF INCOME RECEIVED IN CONNECTION WITH
THE EXXON VALDEZ LITIGATION.
(a) Income Averaging of Amounts Received From the Exxon
Valdez Litigation.--For purposes of section 1301 of the
Internal Revenue Code of 1986--
(1) any qualified taxpayer who receives any qualified
settlement income in any taxable year shall be treated as
engaged in a fishing business (determined without regard to
the commercial nature of the business), and
(2) such qualified settlement income shall be treated as
income attributable to such a fishing business for such
taxable year.
(b) Qualified Settlement Income Not Included in SECA.--For
purposes of chapter 2 of the Internal Revenue Code of 1986
and section 211 of the Social Security Act, no portion of
qualified settlement income received by a qualified taxpayer
shall be treated as self-employment income.
(c) Qualified Taxpayer.--For purposes of this section, the
term ``qualified taxpayer'' means--
(1) any plaintiff in the civil action In re Exxon Valdez,
No. 89-095-CV (HRH) (Consolidated) (D. Alaska); or
(2) any beneficiary of the estate of such a plaintiff who--
(A) acquired the right to receive qualified settlement
income from that plaintiff; and
(B) was the spouse or an immediate relative of that
plaintiff.
(d) Qualified Settlement Income.--For purposes of this
section, the term ``qualified settlement income'' means
income, including interest and any punitive damage award,
received (whether as lump sums or periodic payments) in
connection with the civil action In re Exxon Valdez, No. 89-
095-CV (HRH) (Consolidated) (D. Alaska) (whether pre- or post
judgment and whether related to a settlement or judgment).
______
SA 1704. Mr. BAUCUS (for himself, Mr. Grassley, Mr. Bingaman, Ms.
Cantwell, Mr. Wyden, Mr. Schumer, Mr. Salazar, and Ms. Snowe) proposed
an amendment to amendment SA 1502 proposed by Mr. Reid to the bill H.R.
6, to reduce our Nation's dependency on foreign oil by investing in
clean, renewable, and alternative energy resources, promoting new
emerging energy technologies, developing greater efficiency, and
creating a Strategic Energy Efficiency and Renewables Reserve to invest
in alternative energy, and for other purposes; which was ordered to lie
on the table; as follows:
At the end add the following:
TITLE VIII--ENERGY TAX PROVISIONS
SEC. 800. SHORT TITLE; ETC.
(a) Short Title.--This title may be cited as the ``Energy
Advancement and Investment Act of 2007''.
(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.
(c) Table of Contents.--The table of contents for this
title is as follows:
TITLE VIII--ENERGY TAX PROVISIONS
Sec. 800. Short title; etc.
Subtitle A--Energy Advancement and Investment
PART I--Advanced Electricity Infrastructure
Sec. 801. Extension and modification of renewable electricity, refined
coal, and Indian coal production credit.
Sec. 802. Extension and modification of credit for clean renewable
energy bonds.
Sec. 803. Clean coal energy bonds.
Sec. 804. Extension and modification of energy credit.
Sec. 805. Energy credit for combined heat and power system property.
Sec. 806. Special depreciation allowance for certain electric
transmission property.
Sec. 807. Extension of special rule to implement FERC restructuring
policy.
Sec. 808. Extension and modification of credit for residential energy
efficient property.
Sec. 809. Credit for residential wind property.
Sec. 810. Expansion and modification of advanced coal project
investment credit.
Sec. 811. Expansion and modification of coal gasification investment
credit.
Sec. 812. Seven-year applicable recovery period for depreciation of
qualified energy management devices.
Sec. 813. Landowner incentive to encourage electric transmission build-
out.
PART II--Carbon Dioxide Sequestration
Sec. 815. Tax credit for carbon dioxide sequestration.
Sec. 816. Seven-year applicable recovery period for depreciation of
qualified carbon dioxide pipeline property.
Sec. 817. Certain income and gains relating to industrial source carbon
dioxide treated as qualifying income for publicly traded
partnerships.
PART III--Domestic Fuel Security
Sec. 821. Credit for production of cellulosic biomass alcohol.
Sec. 822. Expansion of special allowance to cellulosic biomass alcohol
fuel plant property.
Sec. 823. Extension of small ethanol producer credit.
Sec. 824. Credit for producers of fossil free alcohol.
Sec. 825. Modification of alcohol credit.
Sec. 826. Extension and modification of credit for biodiesel used as
fuel .
Sec. 827. Extension and modification of alternative fuel credit.
Sec. 828. Extension of alternative fuel vehicle refueling property
credit.
Sec. 829. Extension of suspension of taxable income limit on percentage
depletion for oil and natural gas produced from marginal
properties.
Sec. 830. Extension and modification of election to expense certain
refineries.
Sec. 831. Ethanol tariff extension.
Sec. 832. Elimination of duty drawback on certain imported ethanol.
Sec. 833. Certain income and gains relating to alcohol fuel mixtures,
biodiesel fuel mixtures, and alternative fuel treated as
qualifying income for publicly traded partnerships.
Sec. 834. Technical amendments.
PART IV--Advanced Technology Vehicles
Sec. 841. Expansion and modification of credit for alternative fuel
motor vehicles.
Sec. 842. Credit for plug-in electric drive motor vehicles.
Sec. 843. Exclusion from heavy truck tax for idling reduction units and
advanced insulation added after purchase.
PART V--Conservation and Energy Efficiency
Sec. 851. Extension and modification of nonbusiness energy property
credit.
Sec. 852. Extension and modification of new energy efficient home
credit.
Sec. 853. Extension and modification of energy efficient commercial
buildings deduction.
Sec. 854. Modifications of energy efficient appliance credit for
appliances produced after 2007.
PART VI--Accountability Studies
Sec. 861. Cost-benefit analysis of pollution reduction and saving in
imported oil per dollar of tax benefit.
Sec. 862. Effect of energy related tax benefits on prices for consumer
goods.
Sec. 863. Study on tax-credit bonds.
[[Page S7934]]
PART VII--Other Provisions
SUBPART A--Timber Provisions
Sec. 871. Deduction for qualified timber gain.
Sec. 872. Excise tax not applicable to section 1203 deduction of real
estate investment trusts.
Sec. 873. Timber REIT modernization.
Sec. 874. Mineral royalty income qualifying income for timber REITs.
Sec. 875. Modification of taxable REIT subsidiary asset test for timber
REITs.
Sec. 876. Safe harbor for timber property.
SUBPART B--Miscellaneous
Sec. 877. Special rules for refund of the coal excise tax to certain
coal producers and exporters.
Sec. 878. Credit to holders of rural renaissance bonds.
Subtitle B--Revenue Raising Provisions
Sec. 881. Denial of deduction for major integrated oil companies for
income attributable to domestic production of oil,
natural gas, or primary products thereof.
Sec. 882. Elimination of the different treatment of foreign oil and gas
extraction income and foreign oil related income for
purposes of the foreign tax credit.
Sec. 883. Increase and extension of Oil Spill Liability Trust Fund tax.
Sec. 884. Limitation on drawback claimed for amounts deposited into the
Oil Spill Liability Trust Fund.
Sec. 885. Tax on crude oil and natural gas produced from the outer
Continental Shelf in the Gulf of Mexico.
Sec. 886. Taxation of taxable fuels in foreign trade zones.
Sec. 887. Clarification of penalty for sale of fuel failing to meet EPA
regulations.
Sec. 888. Clarification of eligibility for certain fuels credits for
fuel with insufficient nexus to the United States.
Sec. 889. Treatment of qualified alcohol fuel mixtures and qualified
biodiesel fuel mixtures as taxable fuels.
Sec. 890. Calculation of volume of alcohol for fuel credits.
Sec. 891. Bulk transfer exception not to apply to finished gasoline.
Sec. 892. Application of rules treating inverted corporations as
domestic corporations to certain transactions occurring
after March 20, 2002.
Sec. 893. Modification of effective date of leasing provisions of the
American Jobs Creation Act of 2004.
Sec. 894. Revision of tax rules on expatriation of individuals.
Subtitle C--Secure Rural Schools and Community Self-Determination
Program
Sec. 901. Secure rural schools and community self-determination
program.
Subtitle A--Energy Advancement and Investment
PART I--ADVANCED ELECTRICITY INFRASTRUCTURE
SEC. 801. EXTENSION AND MODIFICATION OF RENEWABLE
ELECTRICITY, REFINED COAL, AND INDIAN COAL
PRODUCTION CREDIT.
(a) Extension.--
(1) In general.--Section 45(d) (relating to qualified
facilities) is amended--
(A) by striking ``January 1, 2009'' each place it appears
in paragraphs (1), (2), (3), (4), (5), (6), (7), (8), and (9)
and inserting ``January 1, 2014'', and
(B) by striking ``7-year period'' both places it appears in
paragraph (10)(A) and inserting ``8-year period''.
(2) Effective date.--The amendments made by this subsection
shall take effect on the date of the enactment of this Act.
(b) Credit Rate for Electricity Maintained at 2007 Level.--
(1) In general.--Section 45(a)(1) (relating to general
rule) is amended by striking ``1.5 cents'' and inserting ``2
cents''.
(2) No inflation adjustment.--Section 45(b)(2) (relating to
credit and phaseout adjustment based on inflation) is amended
by striking ``1.5 cent amount in subsection (a), the''.
(3) Conforming amendments.--Section 45(b)(4)(A) is
amended--
(A) by striking ``2003'' and inserting ``2006'', and
(B) by striking ``the amount in effect'' and all that
follows and inserting ``subsection (a)(1) shall be applied by
substituting `0.9 cent' for `2 cents'.''.
(4) Effective date.--The amendments made by this subsection
shall apply to electricity produced and sold after December
31, 2006.
(c) Modification of Refined Coal as a Qualified Energy
Resource.--
(1) Elimination of increased market value test.--Section
45(c)(7)(A) (defining refined coal) is amended--
(A) by striking clause (iv),
(B) by adding ``and'' at the end of clause (ii), and
(C) by striking ``, and'' at the end of clause (iii) and
inserting a period.
(2) Increase in required emission reduction.--Section
45(c)(7)(B) (defining qualified emission reduction) is
amended by inserting ``at least 40 percent of the emissions
of'' after ``nitrogen oxide and''.
(3) Effective date.--The amendments made by this subsection
shall apply to coal produced and sold after December 31,
2007.
(d) Credit Allowed for On-Site Use of Electricity Produced
From Biomass.--
(1) On-site use.--Section 45(e) (relating to definitions
and special rules) is amended by adding at the end the
following new paragraph:
``(12) Credit allowed for on-site use of electricity
produced from biomass.--In the case of electricity produced
after December 31, 2007, at any facility described in
paragraph (2) or (3) which is equipped with net metering to
determine electricity consumption or sale (such consumption
or sale to be verified by a third party as determined by the
Secretary), subsection (a)(2) shall be applied without regard
to subparagraph (B) thereof.''.
(2) Effective date.--The amendment made by this subsection
shall take effect on the date of the enactment of this Act.
(e) Expansion of Resources to Wave, Current, Tidal, and
Ocean Thermal Energy.--
(1) In general.--Section 45(c)(1) (defining qualified
energy resources) is amended by striking ``and'' at the end
of subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(I) wave, current, tidal, and ocean thermal energy.''.
(2) Definition of resources.--Section 45(c) is amended by
adding at the end the following new paragraph:
``(10) Wave, current, tidal, and ocean thermal energy.--The
term `wave, current, tidal, and ocean thermal energy' means
electricity produced from any of the following:
``(A) Free flowing ocean water derived from tidal currents,
ocean currents, waves, or estuary currents.
``(B) Ocean thermal energy.''.
(3) Facilities.--Section 45(d) is amended by adding at the
end the following new paragraph:
``(11) Wave, current, tidal, and ocean thermal facility.--
In the case of a facility using resources described in
subparagraph (A), (B), or (C) of subsection (c)(10) to
produce electricity, the term `qualified facility' means any
facility owned by the taxpayer which is originally placed in
service after the date of the enactment of this paragraph and
before January 1, 2014, but such term shall not include a
facility which includes impoundment structures or a small
irrigation power facility.''.
(4) Credit rate.--Section 45(b)(4)(A) (relating to credit
rate), as amended by this section, is amended by striking
``or (9)'' and inserting ``(9), or (11)''.
(5) Effective date.--The amendments made by this subsection
shall take effect on the date of the enactment of this Act.
(f) Trash Facility Clarification.--
(1) In general.--Paragraph (7) of section 45(d) is
amended--
(A) by striking ``facility which burns'' and inserting
``facility (other than a facility described in paragraph (6))
which uses'', and
(B) by striking ``combustion''.
(2) Effective date.--The amendments made by this subsection
shall apply to electricity produced and sold before, on, or
after December 31, 2007.
SEC. 802. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN
RENEWABLE ENERGY BONDS.
(a) Increase in Amount of Bonds Designated; 4-Year
Extension.--
(1) In general.--Section 54(f) (relating to limitation on
amount of bonds designated) is amended by adding at the end
the following new paragraph:
``(3) National annual limitation.--
``(A) In general.--There is a national clean renewable
energy bond annual limitation for each calendar year. Such
limitation is $900,000,000 for 2008, 2009, 2010, and 2011,
and, except as provided in subparagraph (C), zero thereafter.
``(B) Allocation by secretary.--The national clean
renewable energy bond limitation for a calendar year shall be
allocated by the Secretary among qualified projects in such
manner as the Secretary determines appropriate, except that
the Secretary may not allocate more than $563,000,000 of such
limitation for each calendar year to finance qualified
projects of qualified borrowers which are governmental
bodies, of which not less than one-half of such amount shall
be allocated with respect to qualified projects equaling or
exceeding $10,000,000 in capital expenditures per project.
``(C) Carryover of unused limitation.--If for any calendar
year, the national clean renewable energy bond annual
limitation for such year exceeds the amount of bonds
allocated during such year, such limitation for the following
calendar year shall be increased by the amount of such
excess. Any carryforward of a limitation may be carried only
to the first year following the unused limitation year. For
purposes of the preceding sentence, a limitation shall be
treated as used on a first-in first-out basis.''.
(2) Conforming amendment.--Section 54 is amended by
striking subsection (m).
(b) Limitation on Time for Issuance.--Section 54(d)(1)(A)
(defining clean renewable energy bond) is amended by
inserting ``, or is issued by the qualified issuer pursuant
to an allocation by the Secretary to such issuer of a portion
of the national clean renewable energy bond annual limitation
under subsection (f)(3) by not later than the end of the
calendar year following the year of such allocation'' after
``subsection (f)(2)''.
[[Page S7935]]
(c) Modification of Ratable Principal Amortization
Requirement.--
(1) In general.--Paragraph (5) of section 54(l) is amended
to read as follows:
``(5) Ratable principal amortization required.--A bond
shall not be treated as a clean renewable energy bond unless
it is part of an issue which provides for an equal amount of
principal to be paid by the qualified issuer during each 12-
month period that the issue is outstanding (other than the
first 12-month period in the case of bonds issued pursuant to
an allocation under subsection (f)(3)).''.
(2) Conforming amendment.--The third sentence of section
54(e)(2) is amended by striking ``subsection (l)(6)'' and
inserting ``subsection (l)(5)''.
(d) Qualified Project Includes Certain Transmission
Lines.--Section 54(d)(2)(A) (defining qualified project) is
amended by inserting ``and any electric transmission property
capital expenditures (as defined in section
172(b)(1)(I)(v)(I)) related to such facility'' after
``qualified borrower''.
(e) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 803. CLEAN COAL ENERGY BONDS.
(a) In General.--Subpart H of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
section:
``SEC. 54A. CREDIT TO HOLDERS OF CLEAN COAL ENERGY BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a clean
coal energy bond on 1 or more credit allowance dates of the
bond occurring during any taxable year, there shall be
allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the sum of the
credits determined under subsection (b) with respect to such
dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance
date for a clean coal energy bond is 25 percent of the annual
credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any clean coal energy bond is the product of--
``(A) the credit rate determined by the Secretary under
paragraph (3) for the day on which such bond was sold,
multiplied by
``(B) the outstanding face amount of the bond.
``(3) Determination.--For purposes of paragraph (2), with
respect to any clean coal energy bond, the Secretary shall
determine daily or cause to be determined daily a credit rate
which shall apply to the first day on which there is a
binding, written contract for the sale or exchange of the
bond. The credit rate for any day is the credit rate which
the Secretary or the Secretary's designee estimates will
permit the issuance of clean coal energy bonds with a
specified maturity or redemption date without discount and
without interest cost to the qualified issuer.
``(4) Credit allowance date.--For purposes of this section,
the term `credit allowance date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
``Such term also includes the last day on which the bond is
outstanding.
``(5) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month
period during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--The credit
allowed under subsection (a) for any taxable year shall not
exceed the excess of--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under this part
(other than subpart C, section 1400N(l), and this section).
``(d) Clean Coal Energy Bond.--For purposes of this
section--
``(1) In general.--The term `clean coal energy bond' means
any bond issued as part of an issue if--
``(A) the bond is issued by a qualified issuer pursuant to
an allocation by the Secretary to such issuer of a portion of
the national clean coal energy bond limitation under
subsection (f)(2),
``(B) 95 percent or more of the proceeds from the sale of
such issue are to be used for capital expenditures incurred
by qualified borrowers for 1 or more qualified projects,
``(C) the qualified issuer designates such bond for
purposes of this section and the bond is in registered form,
and
``(D) the issue meets the requirements of subsection (h).
``(2) Qualified project; special use rules.--
``(A) In general.--The term `qualified project' means a
qualifying advanced coal project (as defined in section
48A(c)(1)) placed in service by a qualified borrower.
``(B) Refinancing rules.--For purposes of paragraph (1)(B),
a qualified project may be refinanced with proceeds of a
clean coal energy bond only if the indebtedness being
refinanced (including any obligation directly or indirectly
refinanced by such indebtedness) was originally incurred by a
qualified borrower after the date of the enactment of this
section.
``(C) Reimbursement.--For purposes of paragraph (1)(B), a
clean coal energy bond may be issued to reimburse a qualified
borrower for amounts paid after the date of the enactment of
this section with respect to a qualified project, but only
if--
``(i) prior to the payment of the original expenditure, the
qualified borrower declared its intent to reimburse such
expenditure with the proceeds of a clean coal energy bond,
``(ii) not later than 60 days after payment of the original
expenditure, the qualified issuer adopts an official intent
to reimburse the original expenditure with such proceeds, and
``(iii) the reimbursement is made not later than 18 months
after the date the original expenditure is paid.
``(D) Treatment of changes in use.--For purposes of
paragraph (1)(B), the proceeds of an issue shall not be
treated as used for a qualified project to the extent that a
qualified borrower takes any action within its control which
causes such proceeds not to be used for a qualified project.
The Secretary shall prescribe regulations specifying remedial
actions that may be taken (including conditions to taking
such remedial actions) to prevent an action described in the
preceding sentence from causing a bond to fail to be a clean
coal energy bond.
``(e) Maturity Limitations.--
``(1) Duration of term.--A bond shall not be treated as a
clean coal energy bond if the maturity of such bond exceeds
the maximum term determined by the Secretary under paragraph
(2) with respect to such bond.
``(2) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under
this paragraph for bonds issued during the following calendar
month. Such maximum term shall be the term which the
Secretary estimates will result in the present value of the
obligation to repay the principal on the bond being equal to
50 percent of the face amount of such bond. Such present
value shall be determined without regard to the requirements
of subsection (l)(5) and using as a discount rate the average
annual interest rate of tax of tax-exempt obligations having
a term of 10 years or more which are issued during the month.
If the term as so determined is not a multiple of a whole
year, such term shall be rounded to the next highest whole
year.
``(f) Limitation on Amount of Bonds Designated.--
``(1) National limitation.--There is a national clean coal
energy bond limitation of $3,000,000,000.
``(2) Allocation by secretary.--The Secretary shall
allocate the amount described in paragraph (1) among
qualified projects in such manner as the Secretary determines
appropriate, except that the Secretary may not allocate more
than $1,875,000,000 of the national clean coal energy bond
limitation to finance qualified projects of qualified
borrowers which are governmental bodies.
``(g) Credit Included in Gross Income.--Gross income
includes the amount of the credit allowed to the taxpayer
under this section (determined without regard to subsection
(c)) and the amount so included shall be treated as interest
income.
``(h) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of
issuance, the qualified issuer reasonably expects--
``(A) at least 95 percent of the proceeds from the sale of
the issue are to be spent for 1 or more qualified projects
within the 5-year period beginning on the date of issuance of
the clean coal energy bond,
``(B) a binding commitment with a third party to spend at
least 10 percent of the proceeds from the sale of the issue
will be incurred within the 6-month period beginning on the
date of issuance of the clean coal energy bond or, in the
case of a clean coal energy bond the proceeds of which are to
be loaned to 2 or more qualified borrowers, such binding
commitment will be incurred within the 6-month period
beginning on the date of the loan of such proceeds to a
qualified borrower, and
``(C) such projects will be completed with due diligence
and the proceeds from the sale of the issue will be spent
with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the qualified
issuer establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related
projects will continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of
the proceeds of such issue are expended by the close of the
5-year period beginning on the date of issuance (or if an
extension has been obtained under paragraph (2), by the close
of the extended period), the qualified issuer shall redeem
all of the nonqualified bonds within 90 days after the end of
such period. For purposes of this paragraph, the amount of
the nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(i) Special Rules Relating to Arbitrage.--A bond which is
part of an issue
[[Page S7936]]
shall not be treated as a clean coal energy bond unless, with
respect to the issue of which the bond is a part, the
qualified issuer satisfies the arbitrage requirements of
section 148 with respect to proceeds of the issue.
``(j) Cooperative Electric Company; Clean Coal Energy Bond
Lender; Governmental Body; Qualified Borrower.--For purposes
of this section--
``(1) Cooperative electric company.--The term `cooperative
electric company' means a mutual or cooperative electric
company described in section 501(c)(12) or section
1381(a)(2)(C), or a not-for-profit electric utility which has
received a loan or loan guarantee under the Rural
Electrification Act.
``(2) Clean coal energy bond lender.--The term `clean coal
energy bond lender' means a lender which is a cooperative
which is owned by, or has outstanding loans to, 100 or more
cooperative electric companies and is in existence on
February 1, 2002, and shall include any affiliated entity
which is controlled by such lender.
``(3) Governmental body.--The term `governmental body'
means any State, territory, possession of the United States,
the District of Columbia, Indian tribal government, and any
political subdivision thereof.
``(4) Qualified issuer.--The term `qualified issuer'
means--
``(A) a clean coal energy bond lender,
``(B) a cooperative electric company, or
``(C) a governmental body.
``(5) Qualified borrower.--The term `qualified borrower'
means--
``(A) a mutual or cooperative electric company described in
section 501(c)(12) or 1381(a)(2)(C), or
``(B) a governmental body.
``(k) Special Rules Relating to Pool Bonds.--No portion of
a pooled financing bond may be allocable to any loan unless
the borrower has entered into a written loan commitment for
such portion prior to the issue date of such issue.
``(l) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Bond.--The term `bond' includes any obligation.
``(2) Pooled financing bond.--The term `pooled financing
bond' shall have the meaning given such term by section
149(f)(4)(A).
``(3) Partnership; s corporation; and other pass-thru
entities.--
``(A) In general.--Under regulations prescribed by the
Secretary, in the case of a partnership, trust, S
corporation, or other pass-thru entity, rules similar to the
rules of section 41(g) shall apply with respect to the credit
allowable under subsection (a).
``(B) No basis adjustment.--Rules similar to the rules
under section 1397E(l) shall apply.
``(4) Bonds held by regulated investment companies.--If any
clean coal energy bond is held by a regulated investment
company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures
prescribed by the Secretary.
``(5) Ratable principal amortization required.--A bond
shall not be treated as a clean coal energy bond unless it is
part of an issue which provides for an equal amount principal
to be paid by the qualified issuer during each 12-month
period that the issue is outstanding (other than the first
12-month period).
``(6) Reporting.--Issuers of clean coal energy bonds shall
submit reports similar to the reports required under section
149(e).
``(m) Termination.--This section shall not apply with
respect to any bond issued after December 31, 2012.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding
at the end the following new paragraph:
``(9) Reporting of credit on clean coal energy bonds.--
``(A) In general.--For purposes of subsection (a), the term
`interest' includes amounts includible in gross income under
section 54A(g) and such amounts shall be treated as paid on
the credit allowance date (as defined in section 54A(b)(4)).
``(B) Reporting to corporations, etc.--Except as otherwise
provided in regulations, in the case of any interest
described in subparagraph (A), subsection (b)(4) shall be
applied without regard to subparagraphs (A), (H), (I), (J),
(K), and (L)(i) of such subsection.
``(C) Regulatory authority.--The Secretary may prescribe
such regulations as are necessary or appropriate to carry out
the purposes of this paragraph, including regulations which
require more frequent or more detailed reporting.''.
(c) Conforming Amendment.--Section 54(c)(2) is amended by
inserting ``section 54A,'' after ``subpart C,''.
(d) Clerical Amendment.--The table of sections for subpart
H of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:
``Sec. 54A. Credit to holders of clean coal energy bonds.''.
(e) Issuance of Regulations.--The Secretary of the Treasury
shall issues regulations required under section 54A of the
Internal Revenue Code of 1986 (as added by this section) not
later than 120 days after the date of the enactment of this
Act.
(f) Effective Date.--The amendments made by this section
shall apply to bonds issued after December 31, 2007.
SEC. 804. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) Extension.--
(1) Qualified fuel cell property.--Subparagraph (E) of
section 48(c)(1) is amended by striking ``December 31, 2008''
and inserting ``December 31, 2016''.
(2) Qualified microturbine property.--Subparagraph (E) of
section 48(c)(2) is amended by striking ``December 31, 2008''
and inserting ``December 31, 2016''.
(3) Solar property.--Paragraphs (2)(i)(II) and (3)(A)(ii)
of section 48(a) are each amended by striking ``January 1,
2009'' and inserting ``January 1, 2017''.
(b) Repeal of Public Utility Property Exclusion.--
(1) In general.--Paragraph (3) of section 48(a), as amended
by subsection (a)(3), is amended by striking the first
sentence which follows subparagraph (D).
(2) Conforming amendments.--
(A) Section 48(c)(1), as amended by subsection (a)(1), is
amended by striking subparagraph (D) and by redesignating
subparagraph (E) as subparagraph (D).
(B) Section 48(c)(2), as amended by subsection (a)(2), is
amended by striking subparagraph (D) and by redesignating
subparagraph (E) as subparagraph (D).
(c) Repeal of Dollar Per Kilowatt Limitation for Fuel Cell
Property.--
(1) In general.--Section 48(c)(1), as amended by subsection
(b)(2)(A), is amended by striking subparagraph (B) and by
redesignating subparagraphs (C) and (D) as subparagraphs (B)
and (C), respectively.
(2) Conforming amendment.--Section 48(a)(1) is amended by
striking ``paragraphs (1)(B) and (2)(B) of subsection (c)''
and inserting ``subsection (c)(2)(B)''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by section shall apply to periods after the
date of the enactment of this Act, in taxable years ending
after such date, under rules similar to the rules of section
48(m) of the Internal Revenue Code of 1986 (as in effect on
the day before the date of the enactment of the Revenue
Reconciliation Act of 1990).
(2) Extensions.--The amendments made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 805. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM
PROPERTY.
(a) In General.--Section 48(a)(3)(A) (defining energy
property) is amended by striking ``or'' at the end of clause
(iii), by inserting ``or'' at the end of clause (iv), and by
adding at the end the following new clause:
``(v) combined heat and power system property,''.
(b) Combined Heat and Power System Property.--Section 48
(relating to energy credit; reforestation credit) is amended
by adding at the end the following new subsection:
``(d) Combined Heat and Power System Property.--For
purposes of subsection (a)(3)(A)(v)--
``(1) Combined heat and power system property.--The term
`combined heat and power system property' means property
comprising a system--
``(A) which uses the same energy source for the
simultaneous or sequential generation of electrical power,
mechanical shaft power, or both, in combination with the
generation of steam or other forms of useful thermal energy
(including heating and cooling applications),
``(B) which has an electrical capacity of not more than 15
megawatts or a mechanical energy capacity of not more than
2,000 horsepower or an equivalent combination of electrical
and mechanical energy capacities,
``(C) which produces--
``(i) at least 20 percent of its total useful energy in the
form of thermal energy which is not used to produce
electrical or mechanical power (or combination thereof), and
``(ii) at least 20 percent of its total useful energy in
the form of electrical or mechanical power (or combination
thereof),
``(D) the energy efficiency percentage of which exceeds 60
percent, and
``(E) which is placed in service before January 1, 2017.
``(2) Special rules.--
``(A) Energy efficiency percentage.--For purposes of this
subsection, the energy efficiency percentage of a system is
the fraction--
``(i) the numerator of which is the total useful
electrical, thermal, and mechanical power produced by the
system at normal operating rates, and expected to be consumed
in its normal application, and
``(ii) the denominator of which is the lower heating value
of the fuel sources for the system.
``(B) Determinations made on btu basis.--The energy
efficiency percentage and the percentages under paragraph
(1)(C) shall be determined on a Btu basis.
``(C) Input and output property not included.--The term
`combined heat and power system property' does not include
property used to transport the energy source to the facility
or to distribute energy produced by the facility.
``(3) Systems using biomass.--If a system is designed to
use biomass (within the meaning of paragraphs (2) and (3) of
section 45(c) without regard to the last sentence of
paragraph (3)(A)) for at least 90 percent of the energy
source--
``(A) paragraph (1)(D) shall not apply, but
``(B) the amount of credit determined under subsection (a)
with respect to such system shall not exceed the amount which
bears the same ratio to such amount of credit (determined
without regard to this paragraph) as the energy efficiency
percentage of such system bears to 60 percent.''.
[[Page S7937]]
(c) Effective Date.--The amendments made by this section
shall apply to periods after the date of the enactment of
this Act, in taxable years ending after such date, under
rules similar to the rules of section 48(m) of the Internal
Revenue Code of 1986 (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of 1990).
SEC. 806. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN ELECTRIC
TRANSMISSION PROPERTY.
(a) In General.--Section 168 (relating to accelerated cost
recovery system) is amended by adding at the end the
following:
``(m) Special Allowance for Certain Electric Transmission
Property.--
``(1) Additional allowance.--In the case of any specified
electric transmission property--
``(A) the depreciation deduction provided by section 167(a)
for the taxable year in which such property is placed in
service shall include an allowance equal to 50 percent of the
adjusted basis of such property, and
``(B) the adjusted basis of such property shall be reduced
by the amount of such deduction before computing the amount
otherwise allowable as a depreciation deduction under this
chapter for such taxable year and any subsequent taxable
year.
``(2) Specified electric transmission property.--The term
`specified electric transmission property' means property of
a character subject to the allowance for depreciation--
``(A) which is used in the United States as a generator tie
to solely transmit electricity from any qualified facility
described in section 45(d) (without regard to any placed in
service date or the last sentence of paragraph (4) thereof)
to the grid,
``(B) the original use of which commences with the taxpayer
after the date of the enactment of this subsection,
``(C) which is acquired by the taxpayer by purchase (as
defined in section 179(d)) after the date of the enactment of
this subsection, but only if no written binding contract for
the acquisition was in effect on or before the date of the
enactment of this subsection, and
``(D) which is placed in service by the taxpayer before
January 1, 2014.
``(3) Exceptions.--
``(A) Alternative depreciation property.--Such term shall
not include any property described in section
168(k)(2)(D)(i).
``(B) Election out.--If a taxpayer makes an election under
this subparagraph 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 during such taxable
year.
``(4) Special rules.--For purposes of this subsection,
rules similar to the rules of subparagraph (E) of section
168(k)(2) shall apply, except that such subparagraph shall be
applied--
``(A) by substituting `the date of the enactment of
subsection (l)' for `September 10, 2001' each place it
appears therein,
``(B) by substituting `January 1, 2014' for `January 1,
2005' in clause (i) thereof, and
``(C) by substituting `specified electric transmission
property' for `qualified property' in clause (iv) thereof.
``(5) Recapture.--For purposes of this subsection, rules
similar to the rules under section 179(d)(10) shall apply
with respect to any specified electric transmission property
which ceases to be specified electric transmission
property.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after the date of
the enactment of this Act in taxable years ending after such
date.
SEC. 807. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC
RESTRUCTURING POLICY.
(a) Qualifying Electric Transmission Transaction.--
(1) In general.--Section 451(i)(3) (defining qualifying
electric transmission transaction) is amended by striking
``January 1, 2008'' and inserting ``January 1, 2010''.
(2) Effective date.--The amendment made by this subsection
shall apply to transactions after December 31, 2007.
(b) Independent Transmission Company.--
(1) In general.--Section 451(i)(4)(B)(ii) (defining
independent transmission company) is amended by striking
``December 31, 2007'' and inserting ``the date which is 2
years after the date of such transaction''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the amendments made by
section 909 of the American Jobs Creation Act of 2004.
SEC. 808. EXTENSION AND MODIFICATION OF CREDIT FOR
RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2014''.
(b) Maximum Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1)(A) (relating to maximum
credit) is amended by striking ``$2,000'' and inserting
``$4,000''.
(2) Conforming amendment.--Section 25D(e)(4)(A)(i) is
amended by striking ``$6,667'' and inserting ``$13,334''.
(c) Effective Date.--The amendments made by this section
shall apply to expenditures made after December 31, 2007.
SEC. 809. CREDIT FOR RESIDENTIAL WIND PROPERTY.
(a) In General.--Section 25D(a) (relating to allowance of
credit) is amended by striking ``and'' at the end of
paragraph (2), by striking the period at the end of paragraph
(3) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(4) 30 percent of the qualified small wind energy
property expenditures made by the taxpayer during such
year.''.
(b) Limitation.--Section 25D(b)(1) (relating to maximum
credit) is amended by striking ``and'' at the end of
subparagraph (B), by striking the period at the end of
subparagraph (A) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(D) $500 with respect to each half kilowatt of capacity
(not to exceed $4,000) of wind turbines for which qualified
small wind energy property expenditures are made.''.
(c) Qualified Small Wind Energy Property Expenditures.--
(1) In general.--Section 25D(d) (relating to definitions)
is amended by adding at the end the following new paragraph:
``(4) Qualified small wind energy property expenditure.--
The term `qualified small wind energy property expenditure'
means an expenditure for property which uses a wind turbine
to generate electricity for use in connection with a dwelling
unit located in the United States and used as a residence by
the taxpayer.''.
(2) No double benefit.--Section 45(d)(1) (relating to wind
facility) is amended by adding at the end the following new
sentence: ``Such term shall not include any facility with
respect to which any qualified small wind energy property
expenditure (as defined in subsection (d)(4) of section 25D)
is taken into account in determining the credit under such
section.''.
(d) Maximum Expenditures in Case of Joint Occupancy.--
Section 25D(e)(4)(A) (relating to maximum expenditures) is
amended by striking ``and'' at the end of clause (iii), by
striking the period at the end of clause (iv) and inserting
``, and'', and by adding at the end the following new clause:
``(v) $1,667 in the case of each half kilowatt of capacity
of wind turbines for which qualified small wind energy
property expenditures are made.''.
(e) Effective Date.--The amendments made by this section
shall apply to expenditures after December 31, 2007.
SEC. 810. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT
INVESTMENT CREDIT.
(a) Credit Rate Parity Among Projects.--Section 48A(a)
(relating to qualifying advanced coal project credit) is
amended by striking ``equal to'' and all that follows and
inserting ``equal to30 percent of the qualified investment
for such taxable year.''.
(b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A)
(relating to aggregate credits) is amended by striking
``$1,300,000,000'' and inserting ``$3,800,000,000''.
(c) Authorization of Additional Projects.--
(1) In general.--Subparagraph (B) of section 48A(d)(3)
(relating to aggregate credits) is amended to read as
follows:
``(B) Particular projects.--Of the dollar amount in
subparagraph (A), the Secretary is authorized to certify--
``(i) $800,000,000 for integrated gasification combined
cycle projects the application for which is submitted during
the period described in paragraph (2)(A)(i),
``(ii) $500,000,000 for projects which use other advanced
coal-based generation technologies the application for which
is submitted during the period described in paragraph
(2)(A)(i),
``(iii) $1,500,000,000 for integrated gasification combined
cycle projects the application for which is submitted during
the period described in paragraph (2)(A)(ii), and
``(iv) $1,000,000,000 for other advanced coal-based
generation technology projects the application for which is
submitted during the period described in paragraph
(2)(A)(ii).''.
(2) Application period for additional projects.--
Subparagraph (A) of section 48A(d)(2) (relating to
certification) is amended to read as follows:
``(A) Application period.--Each applicant for certification
under this paragraph shall submit an application meeting the
requirements of subparagraph (B). An applicant may only
submit an application--
``(i) for an allocation from the dollar amount specified in
clause (i) or (ii) of paragraph (3)(A) during the 3-year
period beginning on the date the Secretary establishes the
program under paragraph (1), and
``(ii) for an allocation from the dollar amount specified
in clause (iii) or (iv) of paragraph (3)(A) during the 3-year
period beginning at the earlier of the termination of the
period described in clause (i) or the date prescribed by the
Secretary.''.
(3) Capture and sequestration of carbon dioxide emissions
requirement.--Section 48A(e)(1) (relating to requirements) is
amended by striking ``and'' at the end of subparagraph (E),
by striking the period at the end of subparagraph (F) and
inserting ``, and'', and by adding at the end the following
new subparagraph:
``(G) in the case of any project the application for which
is submitted during the period described in paragraph
(2)(A)(ii), the project includes equipment to separate and
sequester 65 percent of such project's total carbon dioxide
emissions.''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
[[Page S7938]]
SEC. 811. EXPANSION AND MODIFICATION OF COAL GASIFICATION
INVESTMENT CREDIT.
(a) Credit Rate.--Section 48B(a) (relating to qualifying
gasification project credit) is amended by striking ``20
percent'' and inserting ``30 percent''.
(b) Expansion of Aggregate Credits.--Section 48B(d)(1)
(relating to qualifying gasification project program) is
amended by striking ``$350,000,000'' and inserting
``$1,850,000,000 (of which $1,500,000,000 shall be allocated
for qualifying gasification projects that include equipment
to separate and sequester 75 percent of such a project's
total carbon dioxide emissions)''.
(c) Eligible Projects Include Fischer-Tropsch Process.--
Section 48B(c)(7) (defining eligible entity) is amended by
striking ``and'' at the end of subparagraph (F), by striking
the period at the end of subparagraph (G) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(H) transportation grade liquid fuels.''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 812. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR
DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT
DEVICES.
(a) In General.--Section 168(e)(3)(C) (defining 7-year
property) is amended by striking ``and'' at the end of clause
(iv), by redesignating clause (v) as clause (vi), and by
inserting after clause (iv) the following new clause:
``(v) any qualified energy management device, and''.
(b) Definition of Qualified Energy Management Device.--
Section 168(i) (relating to definitions and special rules) is
amended by inserting at the end the following new paragraph:
``(18) Qualified energy management device.--
``(A) In general.--The term `qualified energy management
device' means any energy management device which is placed in
service before January 1, 2011, by a taxpayer who is a
supplier of electric energy or a provider of electric energy
services.
``(B) Energy management device.--For purposes of
subparagraph (A), the term `energy management device' means
any two-way communications network and associated equipment,
including equipment installed on the premises of a consumer,
which is used by the taxpayer--
``(i) to measure and record electricity usage data on a
time-differentiated basis of at least 60 minutes, and
``(ii) to provide such data on demand to both consumers and
the taxpayer.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 813. LANDOWNER INCENTIVE TO ENCOURAGE ELECTRIC
TRANSMISSION BUILD-OUT.
(a) In General.--Part III of subchapter B of chapter 1
(relating to items specifically excluded from gross income)
is amended by inserting after section 139A the following new
section:
``SEC. 139B. ELECTRIC TRANSMISSION EASEMENT PAYMENTS.
``(a) In General.--Gross income shall not include any
qualified electric transmission easement payment.
``(b) Qualified Electric Transmission Easement Payment.--
For purposes of this section, the term `qualified electric
transmission payment' means any payment by an electric
utility or electric transmission entity pursuant to an
easement or other agreement granted by the payee (or any
predecessor of such payee) for the right of such entity (or
any successors of such entity) to locate on such payee's
property transmission lines and equipment used to transmit
electricity at 230 or more kilovolts primarily from qualified
facilities described in section 45(d) (without regard to any
placed in service date or the last sentence of paragraph (4)
thereof) or energy property (as defined in section 48(a)(3))
placed in service after the date of the enactment of this
section.
``(c) No Increase in Basis.--Notwithstanding any other
provision of this subtitle, no increase in the basis or
adjusted basis of any property shall result from any amount
excluded under this subsection with respect to such property.
``(d) Denial of Double Benefit.--Notwithstanding any other
provision of this subtitle, no deduction or credit shall be
allowed (to the person for whose benefit a qualified electric
transmission easement payment is made) for, or by reason of,
any expenditure to the extent of the amount excluded under
this section with respect to such expenditure.''.
(b) Clerical Amendment.--The table of sections for such
part III is amended by inserting after the item relating to
section 139A the following new item:
``Sec. 139B. Electric transmission easement payments.''.
(c) Effective Date.--The amendments made by this section
shall apply to payments received after the date of the
enactment of this Act.
PART II--CARBON DIOXIDE SEQUESTRATION
SEC. 815. TAX CREDIT FOR CARBON DIOXIDE SEQUESTRATION.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business credits) is amended by adding
at the end the following new section:
``SEC. 45O. CREDIT FOR CARBON DIOXIDE SEQUESTRATION.
``(a) General Rule.--For purposes of section 38, the carbon
dioxide sequestration credit for any taxable year is an
amount equal to the sum of--
``(1) $20 per metric ton of qualified carbon dioxide which
is--
``(A) captured by the taxpayer at a qualified facility, and
``(B) disposed of by the taxpayer in secure geological
storage, and
``(2) $10 per metric ton of qualified carbon dioxide which
is--
``(A) captured by the taxpayer at a qualified facility, and
``(B) used by the taxpayer as a tertiary injectant in a
qualified enhanced oil or natural gas recovery project.
``(b) Qualified Carbon Dioxide.--For purposes of this
section--
``(1) In general.--The term `qualified carbon dioxide'
means carbon dioxide captured from an industrial source
which--
``(A) would otherwise be released into the atmosphere as
industrial emission of greenhouse gas, and
``(B) is measured at the source of capture and verified at
the point of disposal or injection.
``(2) Recycled carbon dioxide.--The term `qualified carbon
dioxide' includes the initial deposit of captured carbon
dioxide used as a tertiary injectant. Such term does not
include carbon dioxide that is re-captured, recycled, and re-
injected as part of the enhanced oil and natural gas recovery
process.
``(c) Qualified Facility.--For purposes of this section,
the term `qualified facility' means any industrial facility--
``(1) which is owned by the taxpayer,
``(2) at which carbon capture equipment is placed in
service, and
``(3) which captures not less than 500,000 metric tons of
carbon dioxide during the taxable year.
``(d) Special Rules and Other Definitions.--For purposes of
this section--
``(1) Only carbon dioxide captured within the united states
taken into account.--The credit under this section shall
apply only with respect to qualified carbon dioxide the
capture of which is within--
``(A) the United States (within the meaning of section
638(1)), or
``(B) a possession of the United States (within the meaning
of section 638(2)).
``(2) Secure geological storage.--The Secretary, in
consultation with the Administrator of the Environmental
Protection Agency, shall establish regulations for
determining adequate security measures for the geological
storage of carbon dioxide under subsection (a)(1)(B) such
that the carbon dioxide does not escape into the atmosphere.
Such term shall include storage at deep saline formations and
unminable coal seems under such conditions as the Secretary
may determine under such regulations.
``(3) Tertiary injectant.--The term `tertiary injectant'
has the same meaning as when used within section 193(b)(1).
``(4) Qualified enhanced oil or natural gas recovery
project.--The term `qualified enhanced oil or natural gas
recovery project' has the meaning given the term `qualified
enhanced oil recovery project' by section 43(c)(2), by
substituting `crude oil or natural gas' for `crude oil' in
subparagraph (A)(i) thereof.
``(5) Credit attributable to taxpayer.--Any credit under
this section shall be attributable to the person that
captures and physically or contractually ensures the disposal
of or the use as a tertiary injectant of the qualified carbon
dioxide, except to the extent provided in regulations
prescribed by the Secretary.
``(6) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any qualified carbon
dioxide which ceases to be captured, disposed of, or used as
a tertiary injectant in a manner consistent with the
requirements of this section.
``(7) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2008, there shall be
substituted for each dollar amount contained in subsection
(a) an amount equal to the product of--
``(A) such dollar amount, multiplied by
``(B) the inflation adjustment factor for such calendar
year determined under section 43(b)(3)(B) for such calendar
year, determined by substituting `2007' for `1990'.
``(e) Application of Section.--The credit under this
section shall apply with respect to qualified carbon dioxide
before the end of the calendar year in which the Secretary,
in consultation with the Administrator of the Environmental
Protection Agency, certifies that 75,000,000 metric tons of
qualified carbon dioxide have been captured and disposed of
or used as a tertiary injectant.''.
(b) Conforming Amendment.--Section 38(b) (relating to
general business credit) is amended by striking ``plus'' at
the end of paragraph (30), by striking the period at the end
of paragraph (31) and inserting ``, plus'', and by adding at
the end of following new paragraph:
``(32) the carbon dioxide sequestration credit determined
under section 45O(a).''.
(c) Clerical Amendment.--The table of sections for subpart
B of part IV of subchapter A of chapter 1 (relating to other
credits) is amended by adding at the end the following new
section:
``Sec. 45O. Credit for carbon dioxide sequestration.''.
[[Page S7939]]
(d) Effective Date.--The amendments made by this section
shall apply carbon dioxide captured after the date of the
enactment of this Act.
SEC. 816. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR
DEPRECIATION OF QUALIFIED CARBON DIOXIDE
PIPELINE PROPERTY.
(a) In General.--Section 168(e)(3)(C) (defining 7-year
property), as amended by this Act, is amended by striking
``and'' at the end of clause (v), by redesignating clause
(vi) as clause (vii), and by inserting after clause (iv) the
following new clause:
``(vi) any qualified carbon dioxide pipeline property--
``(I) the original use of which commences with the taxpayer
after the date of the enactment of this clause,
``(II) the original purpose of which is to transport carbon
dioxide, and
``(III) which is placed in service before January 1,
2014.''.
(b) Definition of Qualified Carbon Dioxide Pipeline
Property.--Section 168(e) (relating to classification of
property) is amended by inserting at the end the following
new paragraph:
``(8) Qualified carbon dioxide pipeline property.--The term
`qualified carbon dioxide pipeline property' means property
which is used in the United States solely to transmit
qualified carbon dioxide (as defined in section 45O(b)) from
the point of capture to the point of disposal (as described
in section 45O(a)(1)(B)) or the point at which such qualified
carbon dioxide is used as a tertiary injectant (as described
in section 45O(a)(2)(B)).''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 817. CERTAIN INCOME AND GAINS RELATING TO INDUSTRIAL
SOURCE CARBON DIOXIDE TREATED AS QUALIFYING
INCOME FOR PUBLICLY TRADED PARTNERSHIPS.
(a) In General.--Subparagraph (E) of section 7704(d)(1)
(defining qualifying income) is amended by inserting ``or
industrial source carbon dioxide'' after ``timber)''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act,
in taxable years ending after such date.
PART III--DOMESTIC FUEL SECURITY
SEC. 821. CREDIT FOR PRODUCTION OF CELLULOSIC BIOMASS
ALCOHOL.
(a) In General.--Subsection (a) of section 40 (relating to
alcohol used as fuel) is amended by striking ``plus'' at the
end of paragraph (2), by striking the period at the end of
paragraph (3) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(4) the small cellulosic alcohol producer credit.''.
(b) Small Cellulosic Alcohol Producer Credit.--
(1) In general.--Subsection (b) of section 40 is amended by
adding at the end the following new paragraph:
``(6) Small cellulosic alcohol producer credit.--
``(A) In general.--In addition to any other credit allowed
under this section, there shall be allowed as a credit
against the tax imposed by this chapter for the taxable year
an amount equal to the applicable amount for each gallon of
qualified cellulosic alcohol production.
``(B) Applicable amount.--For purposes of subparagraph (A),
the applicable amount means the excess of--
``(i) $1.11, over
``(ii) the sum of--
``(I) the amount of the credit allowable for alcohol which
is ethanol under subsection (b)(1) (without regard to
subsection (b)(3)) at the time of the qualified cellulosic
alcohol production, plus
``(II) the amount of the credit allowable under subsection
(b)(4) at the time of such production.
``(C) Qualified cellulosic alcohol production.--For
purposes of this section, the term `qualified cellulosic
alcohol production' means any cellulosic biomass alcohol
which is produced by an eligible small cellulosic alcohol
producer and which during the taxable year--
``(i) is sold by the taxpayer to another person--
``(I) for use by such other person in the production of a
qualified alcohol mixture in such other person's trade or
business (other than casual off-farm production),
``(II) for use by such other person as a fuel in a trade or
business, or
``(III) who sells such cellulosic biomass alcohol at retail
to another person and places such cellulosic biomass alcohol
in the fuel tank of such other person, or
``(ii) is used or sold by the taxpayer for any purpose
described in clause (i).
``(D) Additional distillation excluded.--The qualified
cellulosic alcohol production of any taxpayer for any taxable
year shall not include any alcohol which is purchased by the
taxpayer and with respect to which such producer increases
the proof of the alcohol by additional distillation.
``(E) Application of paragraph.--This paragraph shall apply
with respect to qualified cellulosic alcohol production--
``(i) after December 31, 2007, and
``(ii) before the end of the later of--
``(I) December 31, 2012, or
``(II) the calendar year in which the Secretary, in
consultation with the Administrator of the Environmental
Protection Agency, certifies that 1,000,000,000 gallons of
cellulosic biomass alcohol (as so defined) have been produced
in or imported into the United States after such date.''.
(2) Termination date not to apply.--Subsection (e) of
section 40 (relating to termination) is amended by adding at
the end the following new paragraph:
``(3) Exception for small cellulosic alcohol producer
credit.--Paragraph (1) shall not apply to the portion of the
credit allowed under this section by reason of subsection
(a)(4).''.
(c) Eligible Small Cellulosic Alcohol Producer.--Section 40
is amended by adding at the end the following new subsection:
``(i) Definitions and Special Rules for Small Cellulosic
Alcohol Producer.--For purposes of this section--
``(1) In general.--The term `eligible small cellulosic
alcohol producer' means a person, who at all times during the
taxable year, has a productive capacity for cellulosic
biomass alcohol not in excess of 60,000,000 gallons.
``(2) Cellulosic biomass alcohol.--
``(A) In general.--The term `cellulosic biomass alcohol'
has the meaning given such term under section 168(l)(3), but
does not include any alcohol with a proof of less than 150.
``(B) Determination of proof.--The determination of the
proof of any alcohol shall be made without regard to any
added denaturants.
``(3) Aggregation rule.--For purposes of the 60,000,000
gallon limitation under paragraph (1), 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.
``(4) Partnership, s corporations, and other pass-thru
entities.--In the case of a partnership, trust, S
corporation, or other pass-thru entity, the limitation
contained in paragraph (1) shall be applied at the entity
level and at the partner or similar level.
``(5) Allocation.--For purposes of this subsection, in the
case of a facility in which more than 1 person has an
interest, productive capacity shall be allocated among such
persons in such manner as the Secretary may prescribe.
``(6) Regulations.--The Secretary may prescribe such
regulations as may be necessary to prevent the credit
provided for in subsection (a)(4) from directly or indirectly
benefitting any person with a direct or indirect productive
capacity of more than 60,000,000 gallons of cellulosic
biomass alcohol during the taxable year.
``(7) Allocation of small cellulosic producer credit to
patrons of cooperative.--Rules similar to the rules under
subsection (g)(6) shall apply for purposes of this
subsection.''.
(d) Alcohol Not Used as a Fuel, etc.--
(1) In general.--Paragraph (3) of section 40(d) is amended
by redesignating subparagraph (D) as subparagraph (E) and by
inserting after subparagraph (C) the following new
subparagraph:
``(D) Small cellulosic alcohol producer credit.--If--
``(i) any credit is allowed under subsection (a)(4), and
``(ii) any person does not use such fuel for a purpose
described in subsection (b)(6)(C),
then there is hereby imposed on such person a tax equal to
the applicable amount for each gallon of such cellulosic
biomass alcohol.''.
(2) Conforming amendments.--
(A) Subparagraph (C) of section 40(d)(3) is amended by
striking ``producer'' in the heading and inserting ``small
ethanol producer''.
(B) Subparagraph (E) of section 40(d)(3), as redesignated
by paragraph (1), is amended by striking ``or (C)'' and
inserting ``(C), or (D)''.
(e) Effective Date.--The amendments made by this section
shall apply to fuel produced after December 31, 2007.
SEC. 822. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC
BIOMASS ALCOHOL FUEL PLANT PROPERTY.
(a) In General.--Paragraph (3) of section 168(l) (relating
to special allowance for cellulosic biomass ethanol plant
property) is amended to read as follows:
``(3) Cellulosic biomass alcohol.--For purposes of this
subsection, the term `cellulosic biomass alcohol' means any
alcohol produced from any lignocellulosic or hemicellulosic
matter that is available on a renewable or recurring
basis.''.
(b) Conforming Amendments.--
(1) Subsection (l) of section 168 is amended by striking
``cellulosic biomass ethanol'' each place it appears and
inserting ``cellulosic biomass alcohol''.
(2) The heading of section 168(l) is amended by striking
``Cellulosic Biomass Ethanol'' and inserting ``Cellulosic
Biomass Alcohol''.
(3) The heading of paragraph (2) of section 168(l) is
amended by striking ``cellulosic biomass ethanol'' and
inserting ``cellulosic biomass alcohol''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.
SEC. 823. EXTENSION OF SMALL ETHANOL PRODUCER CREDIT.
Paragraph (1) of section 40(e) (relating to termination) is
amended--
[[Page S7940]]
(1) in subparagraph (A), by inserting ``(December 31, 2012,
in the case of the credit allowed by reason of subsection
(a)(3))'' after ``December 31, 2010'', and
(2) in subparagraph (B), by inserting ``(January 1, 2013,
in the case of the credit allowed by reason of subsection
(a)(3))'' after ``January 1, 2011''.
SEC. 824. CREDIT FOR PRODUCERS OF FOSSIL FREE ALCOHOL.
(a) In General.--Subsection (a) of section 40 (relating to
alcohol used as fuel), as amended by section 821, is amended
by striking ``plus'' at the end of paragraph (3), by striking
the period at the end of paragraph (4) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(5) the small fossil free alcohol producer credit.''.
(b) Small Fossil Free Alcohol Producer Credit.--
(1) In general.--Subsection (b) of section 40, as amended
by section 821, is amended by adding at the end the following
new paragraph:
``(7) Small fossil free alcohol producer credit.--
``(A) In general.--In addition to any other credit allowed
under this section, there shall be allowed as a credit
against the tax imposed by this chapter for the taxable year
an amount equal to 25 cents for each gallon of qualified
fossil free alcohol production.
``(B) Qualified fossil free alcohol production.--For
purposes of this section, the term `qualified fossil free
alcohol production' means alcohol which is produced by an
eligible small fossil free alcohol producer at a fossil free
alcohol production facility and which during the taxable
year--
``(i) is sold by the taxpayer to another person--
``(I) for use by such other person in the production of a
qualified alcohol mixture in such other person's trade or
business (other than casual off-farm production),
``(II) for use by such other person as a fuel in a trade or
business, or
``(III) who sells such alcohol at retail to another person
and places such alcohol in the fuel tank of such other
person, or
``(ii) is used or sold by the taxpayer for any purpose
described in clause (i).
``(C) Additional distillation excluded.--The qualified
fossil free alcohol production of any taxpayer for any
taxable year shall not include any alcohol which is purchased
by the taxpayer and with respect to which such producer
increases the proof of the alcohol by additional
distillation.''.
(c) Eligible Small Fossil Free Alcohol Producer.--Section
40, as amended by section 821, is amended by adding at the
end the following new subsection:
``(j) Definitions and Special Rules for Small Fossil Free
Alcohol Producer.--For purposes of this section--
``(1) In general.--The term `eligible small fossil free
alcohol producer' means a person, who at all times during the
taxable year, has a productive capacity for alcohol from all
fossil free alcohol production facilities of the taxpayer
which is not in excess of 60,000,000 gallons.
``(2) Fossil free alcohol production facility.--The term
`fossil free alcohol production facility' means any facility
at which 90 percent of the fuel used in the production of
alcohol is from biomass (as defined in section 45K(c)(3)).
``(3) Aggregation rule.--For purposes of the 60,000,000
gallon limitation under paragraph (1), 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.
``(4) Partnership, s corporations, and other pass-thru
entities.--In the case of a partnership, trust, S
corporation, or other pass-thru entity, the limitation
contained in paragraph (1) shall be applied at the entity
level and at the partner or similar level.
``(5) Allocation.--For purposes of this subsection, in the
case of a facility in which more than 1 person has an
interest, productive capacity shall be allocated among such
persons in such manner as the Secretary may prescribe.
``(6) Regulations.--The Secretary may prescribe such
regulations as may be necessary to prevent the credit
provided for in subsection (a)(5) from directly or indirectly
benefitting any person with a direct or indirect productive
capacity of more than 60,000,000 gallons of alcohol from
fossil free alcohol production facilities during the taxable
year.
``(7) Allocation of small fossil free alcohol producer
credit to patrons of cooperative.--Rules similar to the rules
under subsection (g)(6) shall apply for purposes of this
subsection.''.
(d) Alcohol Not Used as a Fuel, etc.--
(1) In general.--Paragraph (3) of section 40(d), as amended
by section 821, is amended by redesignating subparagraph (E)
as subparagraph (F) and by inserting after subparagraph (D)
the following new subparagraph:
``(E) Small fossil free alcohol producer credit.--If--
``(i) any credit is allowed under subsection (a)(5), and
``(ii) any person does not use such fuel for a purpose
described in subsection (b)(7)(B),
then there is hereby imposed on such person a tax equal to 25
cents for each gallon of such alcohol.''.
(2) Conforming amendment.--Subparagraph (E) of section
40(d)(3), as redesignated by paragraph (1) and amended by
section 821, is amended by striking ``or (D)'' and inserting
``(C), or (E)''.
(e) Termination.--Paragraph (1) of section 40(e), as
amended by section 823, is amended--
(1) in subparagraph (A), by striking ``(December 31, 2012,
in the case of the credit allowed by reason of subsection
(a)(3))'' and inserting ``(December 31, 2012, in the case of
the credits allowed by reason of paragraphs (3) and (5) of
subsection (a))'', and
(2) in subparagraph (B), by striking ``(January 1, 2013, in
the case of the credit allowed by reason of subsection
(a)(3))'' and inserting ``(January 1, 2013, in the case of
the credits allowed by reason of paragraphs (3) and (5) of
subsection (a))''.
(f) Effective Date.--The amendments made by this section
shall apply to fuel produced after December 31, 2007.
SEC. 825. MODIFICATION OF ALCOHOL CREDIT.
(a) Income Tax Credit.--Subsection (h) of section 40
(relating to reduced credit for ethanol blenders) is amended
by adding at the end the following new paragraph:
``(3) Reduced amount after sale of 7,500,000,000 gallons.--
``(A) In general.--In the case of any calendar year
beginning after the date described in subparagraph (B), the
last row in the table in paragraph (2) shall be applied by
substituting `46 cents' for `51 cents'.
``(B) Date described.--The date described in this
subparagraph is the first date on which 7,500,000,000 gallons
of ethanol (including cellulosic ethanol) have been produced
in or imported into the United States after the date of the
enactment of this paragraph, as certified by the Secretary,
in consultation with the Administrator of the Environmental
Protection Agency.''.
(b) Excise Tax Credit.--
(1) In general.--Paragraph (2) of section 6426(b) (relating
to alcohol fuel mixture credit) is amended by adding at the
end the following new subparagraph:
``(C) Reduced amount after sale of 7,500,000,000 gallons.--
In the case of any alcohol fuel mixture produced in a
calendar year beginning after the date described in section
40(h)(3)(B), subparagraph (A) shall be applied by
substituting `46 cents' for `51 cents'.''.
(2) Conforming amendment.--Subparagraph (A) of section
6426(b)(2) is amended by striking ``subparagraph (B)'' and
inserting ``subparagraphs (B) and (C)''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 826. EXTENSION AND MODIFICATION OF CREDIT FOR BIODIESEL
USED AS FUEL .
(a) Extension.--
(1) Income tax credits for biodiesel and renewable diesel
and small agri-biodiesel producer credit.--Section 40A(g)
(relating to termination) is amended by striking ``December
31, 2008'' and inserting ``December 31, 2010 (December 31,
2012, in the case of the credit allowed by reason of
subsection (a)(3))''.
(2) Excise tax credit.--Section 6426(c)(6) (relating to
termination) is amended by striking ``2008'' and inserting
``2010''.
(3) Fuels not used for taxable purposes.--Section
6427(e)(5)(B) (relating to termination) is amended by
striking ``2008'' and inserting ``2010''.
(b) Modification of Credit for Renewable Diesel.--
(1) In general.--Section 40A(f) (relating to renewable
diesel) is amended by adding at the end the following new
paragraph:
``(4) Special rule for co-processed renewable diesel.--In
the case of a taxpayer which produces renewable diesel
through the co-processing of biomass and petroleum at any
facility, this subsection shall not apply to so much of the
renewable diesel produced at such facility and sold or used
during the taxable year in a qualified biodiesel mixture as
exceeds 60,000,000 gallons.''.
(c) Modification Relating to Definition of Agri-
Biodiesel.--Paragraph (2) of section 40A(d) (relating to
agri-biodiesel) is amended by striking ``and mustard seeds''
and inserting ``mustard seeds, and camelina''.
(d) Effective Dates.--The amendments made by this section
shall apply to fuel sold or used after the date of the
enactment of this Act.
SEC. 827. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL
CREDIT.
(a) Extension.--
(1) Alternative fuel credit.--Paragraph (4) of section
6426(d) (relating to alternative fuel credit) is amended by
striking ``September 30, 2009'' and inserting ``December 31,
2012''.
(2) Alternative fuel mixture credit.--Paragraph (3) of
section 6426(e) (relating to alternative fuel mixture credit)
is amended by striking ``September 30, 2009'' and inserting
``December 31, 2012''.
(3) Payments.--Subparagraph (C) of section 6427(e)(5)
(relating to termination) is amended by striking ``September
30, 2009'' and inserting ``December 31, 2012''.
(b) Modifications.--
(1) Alternative fuel to include compressed or liquified
biomass gas.--Paragraph (2) of section 6426(d) (relating to
alternative fuel credit) is amended by striking ``and'' at
the end of subparagraph (E), by redesignating subparagraph
(F) as subparagraph (G), and by inserting after subparagraph
(E) the following new subparagraph:
``(F) compressed or liquified biomass gas, and''.
[[Page S7941]]
(2) Credit allowed for aviation use of fuel.--Paragraph (1)
of section 6426(d) is amended by inserting ``sold by the
taxpayer for use as a fuel in aviation,'' after
``motorboat,''.
(c) Carbon Capture Requirement for Certain Fuels.--
(1) In general.--Subsection (d) of section 6426, as amended
by subsection (a), is amended by redesignating paragraph (4)
as paragraph (5) and by inserting after paragraph (3) the
following new paragraph:
``(4) Carbon capture requirement.--The requirements of this
paragraph are met if the fuel is certified, under such
procedures as required by the Secretary, as having been
produced at a facility which is primarily a liquid coal
facility which separates and sequesters not less than 75
percent of such facility's total carbon dioxide emissions.''.
(2) Conforming amendment.--Subparagraph (E) of section
6426(d)(2) is amended by inserting ``which meets the
requirements of paragraph (4) and which is'' after ``any
liquid fuel''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel sold or
used after the date of the enactment of this Act.
(2) Carbon capture requirements.--The amendments made by
subsection (c) shall apply to fuel sold or used after
December 31, 2007.
SEC. 828. EXTENSION OF ALTERNATIVE FUEL VEHICLE REFUELING
PROPERTY CREDIT.
Paragraph (2) of section 30C(g) (relating to termination)
is amended by striking ``December 31, 2009'' and inserting
``December 31, 2012''.
SEC. 829. EXTENSION OF SUSPENSION OF TAXABLE INCOME LIMIT ON
PERCENTAGE DEPLETION FOR OIL AND NATURAL GAS
PRODUCED FROM MARGINAL PROPERTIES.
Subparagraph (H) of section 613A(c)(6) (relating to oil and
gas produced from marginal properties) is amended by striking
``January 1, 2008'' and inserting ``January 1, 2010''.
SEC. 830. EXTENSION AND MODIFICATION OF ELECTION TO EXPENSE
CERTAIN REFINERIES.
(a) Extension.--Paragraph (1) of section 179C(c) (relating
to qualified refinery property) is amended--
(1) by striking ``January 1, 2012'' in subparagraph (B) and
inserting ``January 1, 2014'', and
(2) by striking ``January 1, 2008'' each place it appears
in subparagraph (F) and inserting ``January 1, 2010''.
(b) Inclusion of Fuel Derived From Shale and Tar Sands.--
(1) In general.--Subsection (d) of section 179C is amended
by inserting ``, or directly from shale or tar sands'' after
``(as defined in section 45K(c))''.
(2) Conforming amendment.--Paragraph (2) of section 179C(e)
is amended by inserting ``shale, tar sands, or'' before
``qualified fuels''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 831. ETHANOL TARIFF EXTENSION.
Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff
Schedule of the United States are each amended in the
effective period column by striking ``1/1/2009'' and
inserting ``1/1/2011''.
SEC. 832. ELIMINATION AND REDUCTIONS OF DUTY DRAWBACK ON
CERTAIN IMPORTED ETHANOL.
(a) In General.--Section 313(p)(3)(A)(i)(I) of the Tariff
Act of 1930 (19 U.S.C. 1313(p)(3)(A)(i)(I)) is amended by
striking ``or'' and inserting the following: ``other than an
article that contains either--
``(aa) imported ethyl alcohol (provided for in subheading
2207.10.60 or 2207.20.00 of such Schedule), or
``(bb) any imported mixture (provided for in heading 2710
or 3824 of such Schedule) that contains ethyl alcohol, or''.
(b) Limitations on, and Reductions of, Drawbacks.--Section
313 of the Tariff Act of 1930 (19 U.S.C. 1313) is amended by
adding at the end the following new subsection:
``(z) Limitations on, and Reductions of, Drawbacks.--
``(1) Limitations.--
``(A) In general.--Ethyl alcohol or mixture containing
ethyl alcohol described in subparagraph (B) may be treated as
being of the same kind and quality under subsection (b) of
this section or may be treated as being commercially
interchangeable with any other ethyl alcohol or mixture
containing ethyl alcohol under subsection (j)(2) of this
section, only if the other ethyl alcohol or mixture--
``(i) if imported, is subject to the additional duty under
subheading 9901.00.50 of the Harmonized Tariff Schedule of
the United States; or
``(ii) if domestic, is subject to Federal excise tax under
section 4041 or 4081 of the Internal Revenue Code of 1986 in
an amount equal to or greater than the amount of drawback
claimed.
``(B) Ethyl alcohol or mixture containing ethyl alcohol
described.--Ethyl alcohol or mixture containing ethyl alcohol
described in this subparagraph means--
``(i) ethyl alcohol classifiable under subheading
2207.10.60 or 2207.20.00 of the Harmonized Tariff Schedule of
the United States, or
``(ii) a mixture containing ethyl alcohol classifiable
under heading 2710 or 3824 of the Harmonized Tariff Schedule
of the United States,
which, if imported would be subject to additional duty under
subheading 9901.00.50 of such Schedule.
``(2) Reduction of drawback.--For purposes of subsections
(b), (j)(2), and (p) of this section, the amount of the
refund as drawback under this section shall be reduced by an
amount equal to any Federal tax credit or refund of any
Federal tax paid on the merchandise with respect to which the
drawback is claimed.''.
(c) Effective Date.--The amendments made by this section
apply to articles exported on or after the date that is 15
days after the date of the enactment of this Act.
SEC. 833. CERTAIN INCOME AND GAINS RELATING TO ALCOHOL FUEL
MIXTURES, BIODIESEL FUEL MIXTURES, AND
ALTERNATIVE FUEL TREATED AS QUALIFYING INCOME
FOR PUBLICLY TRADED PARTNERSHIPS.
(a) In General.--Subparagraph (E) of section 7704(d)(1)
(defining qualifying income), as amended by this Act, is
amended by inserting ``, or the transportation or storage of
any fuel described in subsection (b), (c), or (d) of section
6426'' after ``carbon dioxide)''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act,
in taxable years ending after such date.
SEC. 834. TECHNICAL AMENDMENTS.
(a) Amendments Related to Section 11113 of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users.--
(1) Paragraph (3) of section 6427(i) is amended--
(A) by inserting ``or under subsection (e)(2) by any person
with respect to an alternative fuel (as defined in section
6426(d)(2))'' after ``section 6426'' in subparagraph (A),
(B) by inserting ``or (e)(2)'' after ``subsection (e)(1)''
in subparagraphs (A)(i) and (B), and
(C) by inserting ``and alternative fuel credit'' after
``mixture credit'' in the heading thereof.
(2)(A) Subparagraph (G) of section 6426(d)(2), as
redesignated by section 827, is amended by striking
``hydrocarbons'' and inserting ``fuel''.
(B) Section 6426 is amended by adding at the end the
following new subsection:
``(h) Denial of Double Benefit.--No credit shall be
determined under subsection (d) or (e) with respect to any
fuel which is described in subsection (b) or (c) or section
40 or 40A.''.
(3) The amendments made by this subsection shall take
effect as if included in section 11113 of the SAFETEA-LU.
(b) Amendments Related to the Energy Policy Act of 2005.--
(1) Amendment related to section 1342 of the act.--
(A) So much of subsection (b) of section 30C as precedes
paragraph (1) thereof is amended to read as follows:
``(b) Limitation.--The credit allowed under subsection (a)
with respect to all alternative fuel vehicle refueling
property placed in service by the taxpayer during the taxable
year at a location shall not exceed--''.
(B) Subsection (c) of section 30C is amended to read as
follows:
``(c) Qualified Alternative Fuel Vehicle Refueling
Property.----For purposes of this section, the term
`qualified alternative fuel vehicle refueling property' has
the same meaning as the term `qualified clean-fuel vehicle
refueling property' would have under section 179A if--
``(1) paragraph (1) of section 179A(d) did not apply to
property installed on property which is used as the principal
residence (within the meaning of section 121) of the
taxpayer, and
``(2) only the following were treated as clean burning
fuels for purposes of section 179A(d):
``(A) Any fuel at least 85 percent of the volume of which
consists of one or more of the following: ethanol, natural
gas, compressed natural gas, liquified natural gas, liquefied
petroleum gas, or hydrogen.
``(B) Biodiesel (as defined in section 40A(d)(1)).
``(C) Any mixture--
``(i) which consists of two or more of the following:
biodiesel (as so defined), diesel fuel (as defined in section
4083(a)(3)), or kerosene, and
``(ii) at least 20 percent of the volume of which consists
of biodiesel (as so defined) determined without regard to any
kerosene in such mixture.''.
(2) Amendments related to section 1362 of the act.--
(A)(i) Paragraph (1) of section 4041(d) is amended by
adding at the end the following new sentence: ``No tax shall
be imposed under the preceding sentence on the sale or use of
any liquid if tax was imposed with respect to such liquid
under section 4081 at the Leaking Underground Storage Tank
Trust Fund financing rate.''.
(ii) Paragraph (3) of section 4042(b) is amended to read as
follows:
``(3) Exception for fuel on which leaking underground
storage tank trust fund financing rate separately imposed.--
The Leaking Underground Storage Tank Trust Fund financing
rate under paragraph (2)(B) shall not apply to the use of any
fuel if tax was imposed with respect to such fuel under
section 4041(d) or 4081 at the Leaking Underground Storage
Tank Trust Fund financing rate.''.
[[Page S7942]]
(iii) Notwithstanding section 6430 of the Internal Revenue
Code of 1986, a refund, credit, or payment may be made under
subchapter B of chapter 65 of such Code for taxes imposed
with respect to any liquid after September 30, 2005, and
before the date of the enactment of this Act under section
4041(d)(1) or 4042 of such Code at the Leaking Underground
Storage Tank Trust Fund financing rate to the extent that tax
was imposed with respect to such liquid under section 4081 at
the Leaking Underground Storage Tank Trust Fund financing
rate.
(B)(i) Paragraph (5) of section 4041(d) is amended--
(I) by striking ``(other than with respect to any sale for
export under paragraph (3) thereof)'', and
(II) by adding at the end the following new sentence: ``The
preceding sentence shall not apply with respect to subsection
(g)(3) and so much of subsection (g)(1) as relates to vessels
(within the meaning of section 4221(d)(3)) employed in
foreign trade or trade between the United States and any of
its possessions.''
(ii) Section 4082 is amended--
(I) by striking ``(other than such tax at the Leaking
Underground Storage Tank Trust Fund financing rate imposed in
all cases other than for export)'' in subsection (a), and
(II) by redesignating subsections (f) and (g) as
subsections (g) and (h) and by inserting after subsection (e)
the following new subsection:
``(f) Exception for Leaking Underground Storage Tank Trust
Fund Financing Rate.--
``(1) In general.--Subsection (a) shall not apply to the
tax imposed under section 4081 at the Leaking Underground
Storage Tank Trust Fund financing rate.
``(2) Exception for export, etc.--Paragraph (1) shall not
apply with respect to any fuel if the Secretary determines
that such fuel is destined for export or for use by the
purchaser as supplies for vessels (within the meaning of
section 4221(d)(3)) employed in foreign trade or trade
between the United States and any of its possessions.''.
(iii) Subsection (e) of section 4082 is amended--
(I) by striking ``an aircraft, the rate of tax under
section 4081(a)(2)(A)(iii) shall be zero.'' and inserting
``an aircraft--
``(1) the rate of tax under section 4081(a)(2)(A)(iii)
shall be zero, and
``(2) if such aircraft is employed in foreign trade or
trade between the United States and any of its possessions,
the increase in such rate under section 4081(a)(2)(B) shall
be zero.''; and
(II) by moving the last sentence flush with the margin of
such subsection (following the paragraph (2) added by clause
(i)).
(iv) Section 6430 is amended to read as follows:
``SEC. 6430. TREATMENT OF TAX IMPOSED AT LEAKING UNDERGROUND
STORAGE TANK TRUST FUND FINANCING RATE.
``No refunds, credits, or payments shall be made under this
subchapter for any tax imposed at the Leaking Underground
Storage Tank Trust Fund financing rate, except in the case of
fuels--
``(1) which are exempt from tax under section 4081(a) by
reason of section 4081(f)(2),
``(2) which are exempt from tax under section 4041(d) by
reason of the last sentence of paragraph (5) thereof, or
``(3) with respect to which the rate increase under section
4081(a)(2)(B) is zero by reason of section 4082(e)(2).''.
(C) Paragraph (5) of section 4041(d) is amended by
inserting ``(b)(1)(A)'' after ``subsections''.
(3) Effective date.--
(A) In general.--Except as otherwise provided in this
paragraph, the amendments made by this subsection shall take
effect as if included in the provisions of the Energy Policy
Act of 2005 to which they relate.
(B) Nonapplication of exemption for off-highway business
use.--The amendment made by paragraph (2)(C) shall apply to
fuel sold for use or used after the date of the enactment of
this Act.
(C) Amendment made by the safetea-lu.--The amendment made
by paragraph (2)(B)(iii)(II) shall take effect as if included
in section 11161 of the SAFETEA-LU.
(c) Amendments Related to Section 339 of the American Jobs
Creation Act of 2004.--
(1)(A) Section 45H is amended by striking subsection (d)
and by redesignating subsections (e), (f), and (g) as
subsections (d), (e), and (f), respectively.
(B) Subsection (d) of section 280C is amended to read as
follows:
``(d) Credit for Low Sulfur Diesel Fuel Production.--The
deductions otherwise allowed under this chapter for the
taxable year shall be reduced by the amount of the credit
determined for the taxable year under section 45H(a).''.
(C) Subsection (a) of section 1016 is amended by striking
paragraph (31) and by redesignating paragraphs (32) through
(37) as paragraphs (31) through (36), respectively.
(2)(A) Section 45H, as amended by paragraph (1), is amended
by adding at the end the following new subsection:
``(g) Election to Not Take Credit.--No credit shall be
determined under subsection (a) for the taxable year if the
taxpayer elects not to have subsection (a) apply to such
taxable year.''.
(B) Subsection (m) of section 6501 is amended by inserting
``45H(g),'' after ``45C(d)(4),''.
(3)(A) Subsections (b)(1)(A), (c)(2), (e)(1), and (e)(2) of
section 45H (as amended by paragraph (1)) and section 179B(a)
are each amended by striking ``qualified capital costs'' and
inserting ``qualified costs''.
(B) The heading of paragraph (2) of section 45H(c) is
amended by striking ``capital''.
(C) Subsection (a) of section 179B is amended by inserting
``and which are properly chargeable to capital account''
before the period at the end.
(4) The amendments made by this subsection shall take
effect as if included in section 339 of the American Jobs
Creation Act of 2004.
PART IV--ADVANCED TECHNOLOGY VEHICLES
SEC. 841. EXPANSION AND MODIFICATION OF CREDIT FOR
ALTERNATIVE FUEL MOTOR VEHICLES.
(a) Extension.--Section 30B(j) (relating to termination) is
amended--
(1) by striking ``December 31, 2014'' in paragraph (1) and
inserting ``December 31, 2016'',
(2) by striking ``December 31, 2010'' in paragraph (2) and
inserting ``December 31, 2012'',
(3) by striking ``December 31, 2009'' in paragraph (3) and
inserting ``December 31, 2012'', and
(4) by striking ``December 31, 2010'' in paragraph (4) and
inserting ``December 31, 2012''.
(b) Modification Relating to New Qualified Alternative Fuel
Motor Vehicle Credit.--The last sentence of section 30B(e)(2)
is amended to read as follows: ``A new qualified alternative
fuel motor vehicle which weighs more than 14,000 pounds gross
vehicle weight rating shall be deemed to satisfy the
preceding sentence if it is certified as exceeding the most
stringent standard applicable to the model year in which such
motor vehicle was produced.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 842. CREDIT FOR PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
(a) Plug-in Electric Drive Motor Vehicle Credit.--
(1) In general.--Subpart B of part IV of subchapter A of
chapter 1 (relating to other credits) is amended by adding at
the end the following new section:
``SEC. 30D. PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year
an amount equal to the applicable amount with respect to each
new qualified plug-in electric drive motor vehicle placed in
service by the taxpayer during the taxable year.
``(2) Applicable amount.--For purposes of paragraph (1),
the applicable amount is sum of--
``(A) $2,500, plus
``(B) $400 for each kilowatt hour of traction battery
capacity of at least 5 kilowatt hours, plus
``(C) $400 for each kilowatt hour of traction battery
capacity in excess of 5 kilowatt hours.
``(b) Limitations.--
``(1) Limitation based on weight.--The amount of the credit
allowed under subsection (a) by reason of subsection
(a)(2)(A) shall not exceed--
``(A) $7,500, in the case of any new qualified plug-in
electric drive motor vehicle with a gross vehicle weight
rating of not more than 10,000 pounds,
``(B) $10,000, in the case of any new qualified plug-in
electric drive motor vehicle with a gross vehicle weight
rating of more than 10,000 pounds but not more than 14,000
pounds,
``(C) $12,500, in the case of any new qualified plug-in
electric drive motor vehicle with a gross vehicle weight
rating of more than 14,000 pounds but not more than 26,000
pounds, and
``(D) $15,000, in the case of any new qualified plug-in
electric drive motor vehicle with a gross vehicle weight
rating of more than 26,000 pounds.
``(2) Limitation on number of passenger vehicles and light
trucks eligible for credit.--No credit shall be allowed under
subsection (a) for any new qualified plug-in electric drive
motor vehicle which is a passenger vehicle or light truck in
any calendar year following the calendar year which includes
the first date on which the total number of such new
qualified plug-in electric drive motor vehicles sold for use
in the United States after December 31, 2007, is at least
250,000.
``(c) New Qualified Plug-in Electric Drive Motor Vehicle.--
For purposes of this section, the term `new qualified plug-in
electric drive motor vehicle' means a motor vehicle--
``(1) which draws propulsion using a traction battery with
at least 4 kilowatt hours of capacity,
``(2) which uses an offboard source of energy to recharge
such battery,
``(3) which, in the case of a passenger vehicle or light
truck which has a gross vehicle weight rating of not more
than 8,500 pounds, has received a certificate of conformity
under the Clean Air Act and meets or exceeds the equivalent
qualifying California low emission vehicle standard under
section 243(e)(2) of the Clean Air Act for that make and
model year, and
``(A) in the case of a vehicle having a gross vehicle
weight rating of 6,000 pounds or less,
[[Page S7943]]
the Bin 5 Tier II emission standard established in
regulations prescribed by the Administrator of the
Environmental Protection Agency under section 202(i) of the
Clean Air Act for that make and model year vehicle, and
``(B) in the case of a vehicle having a gross vehicle
weight rating of more than 6,000 pounds but not more than
8,500 pounds, the Bin 8 Tier II emission standard which is so
established,
``(4) the original use of which commences with the
taxpayer,
``(5) which is acquired for use or lease by the taxpayer
and not for resale, and
``(6) which is made by a manufacturer.
``(d) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without
regard to this subsection) that is attributable to property
of a character subject to an allowance for depreciation shall
be treated as a credit listed in section 38(b) for such
taxable year (and not allowed under subsection (a)).
``(2) Personal credit.--The credit allowed under subsection
(a) (after the application of paragraph (1)) for any taxable
year shall not exceed the excess (if any) of--
``(A) the regular tax liability (as defined in section
26(b)) reduced by the sum of the credits allowable under
subpart A and sections 27, 30, 30B, and 30C, over
``(B) the tentative minimum tax for the taxable year.
``(e) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Motor vehicle.--The term `motor vehicle' has the
meaning given such term by section 30(c)(2).
``(2) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meanings given
such terms in regulations prescribed by the Administrator of
the Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C.
7521 et seq.).
``(3) Traction battery capacity.--Traction battery capacity
shall be measured in kilowatt hours from a 100 percent state
of charge to a zero percent state of charge.
``(4) Reduction in basis.--For purposes of this subtitle,
the basis of any property for which a credit is allowable
under subsection (a) shall be reduced by the amount of such
credit so allowed.
``(5) No double benefit.--The amount of any deduction or
other credit allowable under this chapter for a new qualified
plug-in electric drive motor vehicle shall be reduced by the
amount of credit allowed under subsection (a) for such
vehicle for the taxable year.
``(6) Property used by tax-exempt entity.--In the case of a
vehicle the use of which is described in paragraph (3) or (4)
of section 50(b) and which is not subject to a lease, the
person who sold such vehicle to the person or entity using
such vehicle shall be treated as the taxpayer that placed
such vehicle in service, but only if such person clearly
discloses to such person or entity in a document the amount
of any credit allowable under subsection (a) with respect to
such vehicle (determined without regard to subsection
(b)(2)).
``(7) Property used outside united states, etc., not
qualified.--No credit shall be allowable under subsection (a)
with respect to any property referred to in section 50(b)(1)
or with respect to the portion of the cost of any property
taken into account under section 179.
``(8) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which
ceases to be property eligible for such credit (including
recapture in the case of a lease period of less than the
economic life of a vehicle).
``(9) Election to not take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects not to have this section apply to such vehicle.
``(10) Interaction with air quality and motor vehicle
safety standards.--Unless otherwise provided in this section,
a motor vehicle shall not be considered eligible for a credit
under this section unless such vehicle is in compliance
with--
``(A) the applicable provisions of the Clean Air Act for
the applicable make and model year of the vehicle (or
applicable air quality provisions of State law in the case of
a State which has adopted such provision under a waiver under
section 209(b) of the Clean Air Act), and
``(B) the motor vehicle safety provisions of sections 30101
through 30169 of title 49, United States Code.
``(f) Regulations.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall promulgate such regulations as necessary to
carry out the provisions of this section.
``(2) Coordination in prescription of certain
regulations.--The Secretary of the Treasury, in coordination
with the Secretary of Transportation and the Administrator of
the Environmental Protection Agency, shall prescribe such
regulations as necessary to determine whether a motor vehicle
meets the requirements to be eligible for a credit under this
section.
``(g) Termination.--This section shall not apply to
property purchased after December 31, 2014.''.
(2) Coordination with other motor vehicle credits.--
(A) New qualified fuel cell motor vehicles.--Paragraph (3)
of section 30B(b) is amended by adding at the end the
following new flush sentence:
``Such term shall not include any motor vehicle which is a
new qualified plug-in electric drive motor vehicle (as
defined by section 30D(c)).''.
(B) New qualified hybrid motor vehicles.--Paragraph (3) of
section 30B(d) is amended by adding at the end the following
new flush sentence:
``Such term shall not include any motor vehicle which is a
new qualified plug-in electric drive motor vehicle (as
defined by section 30D(c)).''.
(3) Conforming amendments.--
(A) Section 38(b), as amended by this Act, is amended by
striking ``plus'' at the end of paragraph (31), by striking
the period at the end of paragraph (32) and inserting
``plus'', and by adding at the end the following new
paragraph:
``(33) the portion of the new qualified plug-in electric
drive motor vehicle credit to which section 30D(d)(1)
applies.''.
(B) Section 55(c)(3) is amended by inserting ``30D(d)(2),''
after ``30C(d)(2),''.
(C) Section 1016(a), as amended by this Act, is amended by
striking ``and'' at the end of paragraph (35), by striking
the period at the end of paragraph (36) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(37) to the extent provided in section 30D(e)(4).''.
(D) Section 6501(m) is amended by inserting ``30D(e)(9)''
after ``30C(e)(5)''.
(E) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 30D. Plug-in electric drive motor vehicle credit.''.
(b) Conversion Kits.--
(1) In general.--Section 30B (relating to alternative motor
vehicle credit) is amended by redesignating subsections (i)
and (j) as subsections (j) and (k), respectively, and by
inserting after subsection (h) the following new subsection:
``(i) Plug-in Conversion Credit.--
``(1) In general.--For purposes of subsection (a), the
plug-in conversion credit determined under this subsection
with respect to any motor vehicle which is converted to a
qualified plug-in electric drive motor vehicle is an amount
equal to 10 percent of the cost of the plug-in traction
battery module installed in such vehicle as part of such
conversion.
``(2) Limitations.--The amount of the credit allowed under
this subsection shall not exceed $2,500 with respect to the
conversion of any motor vehicle.
``(3) Definitions and special rules.--For purposes of this
subsection--
``(A) Qualified plug-in electric drive motor vehicle.--The
term `qualified plug-in electric drive motor vehicle' means
any new qualified plug-in electric drive motor vehicle (as
defined in section 30D(c), determined without regard to
paragraphs (4) and (6) thereof).
``(B) Plug-in traction battery module.--The term `plug-in
traction battery module' means an electro-chemical energy
storage device which--
``(i) has a traction battery capacity of not less than 2.5
kilowatt hours,
``(ii) is equipped with an electrical plug by means of
which it can be energized and recharged when plugged into an
external source of electric power,
``(iii) consists of a standardized configuration and is
mass produced,
``(iv) has been tested and approved by the National Highway
Transportation Safety Administration as compliant with
applicable motor vehicle and motor vehicle equipment safety
standards when installed by a mechanic with standardized
training in protocols established by the battery manufacturer
as part of a nationwide distribution program, and
``(v) is certified by a battery manufacturer as meeting the
requirements of clauses (i) through (iv).
``(C) Credit allowed to lessor of battery module.--In the
case of a plug-in traction battery module which is leased to
the taxpayer, the credit allowed under this subsection shall
be allowed to the lessor of the plug-in traction battery
module.
``(D) Credit allowed in addition to other credits.--The
credit allowed under this subsection shall be allowed with
respect to a motor vehicle notwithstanding whether a credit
has been allowed with respect to such motor vehicle under
this section (other than this subsection) in any preceding
taxable year.
``(4) Termination.--This subsection shall not apply to
conversions made after December 31, 2009.''.
(2) Credit treated as part of alternative motor vehicle
credit.--Section 30B(a) is amended by striking ``and'' at the
end of paragraph (3), by striking the period at the end of
paragraph (4) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(5) the plug-in conversion credit determined under
subsection (i).''.
(3) No recapture for vehicles converted to qualified plug-
in electric drive motor vehicles.--Paragraph (8) of section
30B(h) is amended by adding at the end the following: ``,
except that no benefit shall be recaptured if such property
ceases to be eligible for such
[[Page S7944]]
credit by reason of conversion to a qualified plug-in
electric drive motor vehicle.''
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2007, in taxable years beginning after such date.
SEC. 843. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION
UNITS AND ADVANCED INSULATION ADDED AFTER
PURCHASE.
(a) In General.--Section 4053 (relating to exemptions) is
amended by adding at the end the following new paragraphs:
``(7) Idling reduction device.--Any device or system of
devices which--
``(A) is designed to provide to a vehicle those services
(such as heat, air conditioning, or electricity) that would
otherwise require the operation of the main drive engine
while the vehicle is temporarily parked or remains stationary
using either--
``(i) an all electric unit, such as a battery powered unit
or from grid-supplied electricity, or
``(ii) a dual fuel unit powered by diesel or other fuels,
and capable of providing such services from grid-supplied
electricity or on-truck batteries alone, and
``(B) is certified by the Secretary of Energy, in
consultation with the Administrator of the Environmental
Protection Agency and the Secretary of Transportation, to
reduce long-duration idling of such vehicle at a motor
vehicle rest stop or other location where such vehicles are
temporarily parked or remain stationary.
For purposes of subparagraph (B), the term `long-duration
idling' means the operation of a main drive engine, for a
period greater than 15 consecutive minutes, where the main
drive engine is not engaged in gear. Such term does not apply
to routine stoppages associated with traffic movement or
congestion.
``(8) Advanced insulation.--Any insulation that has an R
value of not less than R35 per inch.''.
(b) Effective Date.--The amendment made by this section
shall apply to sales or installations after December 31,
2007.
PART V--CONSERVATION AND ENERGY EFFICIENCY
SEC. 851. EXTENSION AND MODIFICATION OF NONBUSINESS ENERGY
PROPERTY CREDIT.
(a) Extension of Credit.--Section 25C(g) (relating to
termination) is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2009''.
(b) Natural Gas Fired Heat Pumps.--Section 25C(d)(3)
(relating to energy-efficient building property) is amended--
(1) by striking ``and'' at the end of subparagraph (D),
(2) by striking the period at the end of subparagraph (E)
and inserting ``, and'', and
(3) by adding at the end the following new subparagraph:
``(F) a natural gas fired heat pump with a heating
coefficient of performance (COP) of at least 1.1.''.
(c) Modifications of Standards for Energy-Efficient
Building Property.--
(1) Increased limitation for oil furnaces and natural gas,
propane, and oil hot water boilers.--
(A) In general.--Subparagraphs (B) and (C) of section
25C(b)(3) are amended to read as follows:
``(B) $150 for any qualified natural gas furnace or
qualified propane furnace, and
``(C) $300 for--
``(i) any item of energy-efficient building property, and
``(ii) any qualified oil furnace, qualified natural gas hot
water boiler, qualified propane hot water boiler, or
qualified oil hot water boiler.''.
(B) Conforming amendment.--Clause (ii) of section
25C(d)(2)(A) is amended to read as follows:
``(ii) any qualified natural gas furnace, qualified propane
furnace, qualified oil furnace, qualified natural gas hot
water boiler, qualified propane hot water boiler, or
qualified oil hot water boiler, or''.
(2) Electric heat pumps.--Subparagraph (B) of section
25C(d)(3) is amended to read as follows:
``(B) an electric heat pump which achieves the highest
efficiency tier established by the Consortium for Energy
Efficiency, as in effect on January 1, 2008.''.
(3) Water heaters.--Subparagraph (E) of section 25C(d)(3)
is amended to read as follows:
``(E) a natural gas, propane, or oil water heater which has
either an energy factor of at least 0.80 or a thermal
efficiency of at least 90 percent.''.
(4) Oil furnaces and hot water boilers.--Paragraph (4) of
section 25C(d) is amended to read as follows:
``(4) Qualified natural gas, propane, and oil furnaces and
hot water boilers.--
``(A) Qualified natural gas furnace.--The term `qualified
natural gas furnace' means any natural gas furnace which
achieves an annual fuel utilization efficiency rate of not
less than 95.
``(B) Qualified natural gas hot water boiler.--The term
`qualified natural gas hot water boiler' means any natural
gas hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than 90.
``(C) Qualified propane furnace.--The term `qualified
propane furnace' means any propane furnace which achieves an
annual fuel utilization efficiency rate of not less than 95.
``(D) Qualified propane hot water boiler.--The term
`qualified propane hot water boiler' means any propane hot
water boiler which achieves an annual fuel utilization
efficiency rate of not less than 90.
``(E) Qualified oil furnaces.--The term `qualified oil
furnace' means any oil furnace which achieves an annual fuel
utilization efficiency rate of not less than 90.
``(F) Qualified oil hot water boiler.--The term `qualified
oil hot water boiler' means any oil hot water boiler which
achieves an annual fuel utilization efficiency rate of not
less than 90.''.
(d) Effective Date.--The amendments made this section shall
apply to expenditures made after December 31, 2007.
SEC. 852. EXTENSION AND MODIFICATION OF NEW ENERGY EFFICIENT
HOME CREDIT.
(a) Extension of Credit.--Subsection (g) of section 45L
(relating to termination), as amended by section 205 of
division A of the Tax Relief and Health Care Act of 2006, is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2011''.
(b) Modification.--
(1) In general.--Subparagraph (B) of section 45L(a)(1) is
amended to read as follows:
``(B)(i) acquired by a person from such eligible contractor
and used by any person as a residence during the taxable
year, or
``(ii) used by such eligible contractor as a residence
during the taxable year.''.
(2) Effective date.--The amendments made by this subsection
shall apply to homes purchased after December 31, 2008.
SEC. 853. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT
COMMERCIAL BUILDINGS DEDUCTION.
(a) Extension.--Section 179D(h) (relating to termination)
is amended by striking ``December 31, 2008'' and inserting
``December 31, 2013''.
(b) Adjustment of Maximum Deduction Amount.--
(1) In general.--Subparagraph (A) of section 179D(b)(1)
(relating to maximum amount of deduction) is amended by
striking ``$1.80'' and inserting ``$2.25''.
(2) Partial allowance.--Paragraph (1) of section 179D(d) is
amended--
(A) by striking ``$.60'' and inserting ``$0.75'', and
(B) by striking ``$1.80'' and inserting ``$2.25''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 854. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT
FOR APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Section 45M of the Internal Revenue Code
of 1986 is amended to read as follows:
``SEC. 45M. ENERGY EFFICIENT APPLIANCE CREDIT.
``(a) General Rule.--
``(1) In general.--For purposes of section 38, the energy
efficient appliance credit determined under this section for
any taxable year is an amount equal to the sum of the credit
amounts determined under paragraph (2) for each type of
qualified energy efficient appliance produced by the taxpayer
during the calendar year ending with or within the taxable
year.
``(2) Credit amounts.--The credit amount determined for any
type of qualified energy efficient appliance is--
``(A) the applicable amount determined under subsection (b)
with respect to such type, multiplied by
``(B) the eligible production for such type.
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is $75 in the
case of a residential model dishwasher which--
``(A) is manufactured in calendar year 2008, 2009, or 2010,
and
``(B) uses not more than 307 kilowatt hours per year and
5.0 gallons per cycle (5.5 gallons for dishwashers designed
for greater than 12 place settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $125 in the case of a residential model top-loading
clothes washer which--
``(i) is manufactured in calendar year 2008 or 2009, and
``(ii) meets or exceeds a 1.8 MEF and does not exceed a 7.5
water consumption factor,
``(B) $150 in the case of a residential or commercial model
clothes washer which--
``(i) is manufactured in calendar year 2008, 2009, or 2010,
and
``(ii) meets or exceeds a 2.0 MEF and does not exceed a 6.0
water consumption factor, and
``(C) $250 in the case of a residential or commercial model
clothes washer which--
``(i) is manufactured in calendar year 2008, 2009, or 2010,
and
``(ii) meets or exceeds a 2.2 MEF and does not exceed a 4.5
water consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $75 in the case of a residential model refrigerator
which--
``(i) is manufactured in calendar year 2008 or 2009, and
``(ii) consumes at least 23 percent, but not more than 24.9
percent, fewer kilowatt hours per year than the 2001 energy
conservation standards,
``(B) $100 in the case of a residential model refrigerator
which--
``(i) is manufactured in calendar year 2008, 2009, or 2010,
and
``(ii) consumes at least 25 percent, but not more than 29.9
percent, fewer kilowatt hours
[[Page S7945]]
per year than the 2001 energy conservation standards, and
``(C) $200 in the case of a residential model refrigerator
which--
``(i) is manufactured in calendar year 2008, 2009, or 2010,
and
``(ii) consumes at least 30 percent fewer kilowatt hours
per year than the 2001 energy conservation standards.
``(c) Eligible Production.--The eligible production in a
calendar year with respect to each type of qualified energy
efficient appliance is the excess of--
``(1) the number of appliances of such type which are
produced in the United States by the taxpayer during such
calendar year, over
``(2) the average number of appliances of such type which
were produced in the United States by the taxpayer (or any
predecessor) during the preceding 2-calendar year period.
``(d) Types of Qualified Energy Efficient Appliances.--For
purposes of this section, the types of qualified energy
efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2), and
``(3) refrigerators described in subsection (b)(3).
``(e) Limitations.--
``(1) Aggregate credit amount allowed.--Except as provided
in paragraph (2), the aggregate amount of credit allowed
under subsection (a) with respect to a taxpayer for any
taxable year shall not exceed $75,000,000 reduced by the
amount of the credit allowed under subsection (a) to the
taxpayer (or any predecessor) for all prior taxable years
beginning after December 31, 2007.
``(2) Limitation based on gross receipts.--The credit
allowed under subsection (a) with respect to a taxpayer for
the taxable year shall not exceed an amount equal to 2
percent of the average annual gross receipts of the taxpayer
for the 3 taxable years preceding the taxable year in which
the credit is determined beginning after December 31, 2007.
``(3) Gross receipts.--For purposes of this subsection, the
rules of paragraphs (2) and (3) of section 448(c) shall
apply.
``(f) Definitions.--For purposes of this section:
``(1) Dishwasher.--The term `dishwasher' means a dishwasher
subject to the energy conservation standards established by
the Department of Energy.
``(2) Clothes washer.--The term `clothes washer' includes a
clothes washer subject to the energy conservation standards
established by the Department of Energy.
``(3) Top-loading clothes washer.--The term `top-loading
clothes washer' means a clothes washer with the clothes
container compartment access located on the top of the
machine.
``(4) Refrigerator.--The term `refrigerator' means an
automatic defrost refrigerator-freezer which has an internal
volume of at least 16.5 cubic feet.
``(5) Gallons per cycle.--The term `gallons per cycle'
means the amount of water, expressed in gallons, required to
complete a normal cycle of a dishwasher.
``(6) MEF.--The term `MEF' means the modified energy factor
established by the Department of Energy for compliance with
the Federal energy conservation standard.
``(7) Water consumption factor.--The term `water
consumption factor' means the quotient of the total weighted
per-cycle water consumption divided by the cubic foot
capacity of the clothes washer.
``(8) 2001 energy conservation standard.--The term `2001
energy conservation standard' means the energy conservation
standards promulgated by the Department of Energy and
effective July 1, 2001.
``(g) Special Rules.--For purposes of this section:
``(1) In general.--Rules similar to the rules of
subsections (c), (d), and (e) of section 52 shall apply.
``(2) Controlled group.--
``(A) In general.--All persons treated as a single employer
under subsection (a) or (b) of section 52 or subsection (m)
or (o) of section 414 shall be treated as a single producer.
``(B) Inclusion of foreign corporations.--For purposes of
subparagraph (A), in applying subsections (a) and (b) of
section 52 to this section, section 1563 shall be applied
without regard to subsection (b)(2)(C) thereof.
``(3) Verification.--No amount shall be allowed as a credit
under subsection (a) with respect to which the taxpayer has
not submitted such information or certification as the
Secretary, in consultation with the Secretary of Energy,
determines necessary.''.
(b) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2007.
PART VI--ACCOUNTABILITY STUDIES
SEC. 861. COST-BENEFIT ANALYSIS OF POLLUTION REDUCTION AND
SAVING IN IMPORTED OIL PER DOLLAR OF TAX
BENEFIT.
(a) Cost-Benefit Analysis.--The Secretary of the Treasury
shall undertake a cost-benefit analysis of those provisions
of this Act that use tax incentives to reduce the use of
imported oil and to reduce the emissions of carbon dioxide
and harmful air pollutants.
(b) Report.--Not later than December 31 of the 2nd calendar
year after the date of the enactment of this Act, the
Secretary of the Treasury shall prepare and submit to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a report on the
cost-benefit analysis conducted pursuant to subsection (a).
SEC. 862. EFFECT OF ENERGY RELATED TAX BENEFITS ON PRICES FOR
CONSUMER GOODS.
(a) Study.--The Secretary of the Treasury shall undertake a
study of the estimated effects on the price of consumer goods
that may result from the enactment of the amendments to the
Internal Revenue Code of 1986 made by this Act, including the
effect on the price of foodstuffs, soaps, automobiles, motor
fuels, and any other product for which the amendments made by
this Act may be expected to significantly alter the supply
and demand conditions of a consumer goods market.
(b) Report.--Not later than December 31 of the 2nd calendar
year after the date of the enactment of this Act, the
Secretary of the Treasury shall prepare and submit to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a report on the
study conducted pursuant to subsection (a).
SEC. 863. STUDY ON TAX-CREDIT BONDS.
(a) Study.--The Secretary of the Treasury shall undertake a
study of the use of tax-credit bonds as a means of
subsidizing the borrowing costs of the beneficiaries of such
financing. In addition to providing a general examination of
the effectiveness of the tax-credit bonds described in
paragraph (2) and of the Federal subsidy provided by tax-
credit bonds relative to the subsidy provided by tax-exempt
bonds, the study shall--
(1) examine the extent to which projects eligible for tax-
credit bonds also receive other Federal tax benefits under
present law,
(2) examine any market or administrative issues associated
with present-law tax-credit bonds under sections 54 and 1397E
of the Internal Revenue Code of 1986 and sections 54A and 54B
of such Code, as added by this Act, including--
(A) the effect of the Department of the Treasury setting
the credit rate,
(B) the Department's selection of projects eligible for
financing,
(C) the potential for arbitrage earnings and the extent to
which this may affect the level of subsidy,
(D) the lack of uniform rules for tax-credit bonds, and
(E) the direct issuance of tax-credit bonds by private
parties, and
(3) discuss the changes to present-law that would be
necessary to provide a tax-credit bond that delivers a
subsidy comparable to that provided by tax-exempt bonds and
reduces the market and administrative issues associated with
present-law tax-credit bonds.
(b) Report.--Not later than December 31 of the 2nd calendar
year after the date of the enactment of this Act, the
Secretary of the Treasury shall prepare and submit to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a report on the
results of the study conducted pursuant to subsection (a).
PART VII--OTHER PROVISIONS
Subpart A--Timber Provisions
SEC. 871. DEDUCTION FOR QUALIFIED TIMBER GAIN.
(a) In General.--Part I of subchapter P of chapter 1 is
amended by adding at the end the following new section:
``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.
``(a) In General.--In the case of a taxpayer which elects
the application of this section for a taxable year, there
shall be allowed a deduction against gross income in an
amount equal to 60 percent of the lesser of--
``(1) the taxpayer's qualified timber gain for such year,
or
``(2) the taxpayer's net capital gain for such year.
``(b) Qualified Timber Gain.--For purposes of this section,
the term `qualified timber gain' means, with respect to any
taxpayer for any taxable year, the excess (if any) of--
``(1) the sum of the taxpayer's gains described in
subsections (a) and (b) of section 631 for such year, over
``(2) the sum of the taxpayer's losses described in such
subsections for such year.
``(c) Special Rules for Pass-Thru Entities.--
``(1) In the case of any qualified timber gain of a pass-
thru entity (as defined in section 1(h)(10)) other than a
real estate investment trust, the election under this section
shall be made separately by each taxpayer subject to tax on
such gain.
``(2) In the case of any qualified timber gain of a real
estate investment trust, the election under this section
shall be made by the real estate investment trust.
``(d) Termination.--
``(1) In general.--This section shall not apply to any
taxable year beginning after the date that is 1 year after
the date of the enactment of this section.
``(2) Taxable years which include date of termination.--In
the case of any taxable year which includes the date of the
termination described in paragraph (1), for purposes of this
section, the taxpayer's qualified timber gain shall not
exceed the excess that would be described in subsection (b)
if only dispositions of timber before such date were taken
into account.''.
(b) Coordination With Maximum Capital Gains Rates.--
(1) Taxpayers other than corporations.--Paragraph (2) of
section 1(h) is amended to read as follows:
[[Page S7946]]
``(2) Reduction of net capital gain.--For purposes of this
subsection, the net capital gain for any taxable year shall
be reduced (but not below zero) by the sum of--
``(A) the amount which the taxpayer takes into account as
investment income under section 163(d)(4)(B)(iii), and
``(B) in the case of a taxable year with respect to which
an election is in effect under section 1203, the lesser of--
``(i) the amount described in paragraph (1) of section
1203(a), or
``(ii) the amount described in paragraph (2) of such
section.''.
(2) Corporations.--Section 1201 is amended by redesignating
subsection (b) as subsection (c) and inserting after
subsection (a) the following new subsection:
``(b) Qualified Timber Gain Not Taken Into Account.--For
purposes of this section, in the case of a corporation with
respect to which an election is in effect under section 1203,
the net capital gain for any taxable year shall be reduced
(but not below zero) by the corporation's qualified timber
gain (as defined in section 1203(b)).''.
(c) Deduction Allowed Whether or Not Individual Itemizes
Other Deductions.--Subsection (a) of section 62 is amended by
inserting before the last sentence the following new
paragraph:
``(22) Qualified timber gains.--The deduction allowed by
section 1203.''.
(d) Deduction Allowed in Computing Adjusted Current
Earnings.--Subparagraph (C) of section 56(g)(4) is amended by
adding at the end the following new clause:
``(vii) Deduction for qualified timber gain.--Clause (i)
shall not apply to any deduction allowed under section
1203.''.
(e) Deduction Allowed in Computing Taxable Income of
Electing Small Business Trusts.--Subparagraph (C) of section
641(c)(2) is amended by inserting after clause (iii) the
following new clause:
``(iv) The deduction allowed under section 1203.''.
(f) Treatment of Qualified Timber Gain of Real Estate
Investment Trusts.--Paragraph (3) of section 857(b) is
amended by inserting after subparagraph (F) the following new
subparagraph:
``(G) Treatment of qualified timber gain.--For purposes of
this part, in the case of a real estate investment trust with
respect to which an election is in effect under section
1203--
``(i) Reduction of net capital gain.--The net capital gain
of the real estate investment trust for any taxable year
shall be reduced (but not below zero) by the real estate
investment trust's qualified timber gain (as defined in
section 1203(b)).
``(ii) Adjustment to shareholder's basis attributable to
deduction for qualified timber gains.--
``(I) In general.--The adjusted basis of shares in the
hands of the shareholder shall be increased by the amount of
the deduction allowable under section 1203(a) as provided in
subclauses (II) and (III).
``(II) Allocation of basis increase for distributions made
during taxable year.--For any taxable year of a real estate
investment trust for which an election is in effect under
section 1203, in the case of a distribution made with respect
to shares during such taxable year of amounts attributable to
the deduction allowable under section 1203(a), the adjusted
basis of such shares shall be increased by the amount of such
distributions.
``(III) Allocation of excess.--If the deduction allowable
under section 1203(a) for a taxable year exceeds the amount
of distributions described in subclause (II), the excess
shall be allocated to every shareholder of the real estate
investment trust at the close of the trust's taxable year in
the same manner as if a distribution of such excess were made
with respect to such shares.
``(IV) Designations.--To the extent provided in
regulations, a real estate investment trust shall designate
the amounts described in subclauses (II) and (III) in a
manner similar to the designations provided with respect to
capital gains described in subparagraphs (C) and (D).
``(V) Definitions.--As used in this subparagraph, the terms
`share' and `shareholder' shall include beneficial interests
and holders of beneficial interests, respectively.
``(iii) Earnings and profits deduction for qualified timber
gains.--The deduction allowable under section 1203(a) for a
taxable year shall be allowed as a deduction in computing the
earnings and profits of the real estate investment trust for
such taxable year. The earnings and profits of any such
shareholder which is a corporation shall be appropriately
adjusted in accordance with regulations prescribed by the
Secretary.''.
(g) Loss Attributable to Basis Adjustment for Deduction for
Qualified Timber Gain of Real Estate Investment Trusts.--
(1) Section 857(b)(8) is amended by redesignating
subparagraphs (B) and (C) as subparagraphs (C) and (D),
respectively, and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Loss attributable to basis adjustment for deduction
for qualified timber gain.--If--
``(i) a shareholder of a real estate investment trust
receives a basis adjustment provided under subsection
(b)(3)(G)(ii), and
``(ii) the taxpayer has held such share or interest for 6
months or less,
then any loss on the sale or exchange of such share or
interest shall, to the extent of the amount described in
clause (i), be disallowed.''.
(2) Subparagraph (D) of section 857(b)(8), as redesignated
by paragraph (1), is amended by striking ``subparagraph (A)''
and inserting ``subparagraphs (A) and (B)''.
(h) Conforming Amendments.--
(1) Subparagraph (B) of section 172(d)(2) is amended to
read as follows:
``(B) the exclusion under section 1202, and the deduction
under section 1203, shall not be allowed.''.
(2) Paragraph (4) of section 642(c) is amended by striking
the first sentence and inserting ``To the extent that the
amount otherwise allowable as a deduction under this
subsection consists of gain described in section 1202(a) or
qualified timber gain (as defined in section 1203(b)), proper
adjustment shall be made for any exclusion allowable to the
estate or trust under section 1202 and for any deduction
allowable to the estate or trust under section 1203.''
(3) Paragraph (3) of section 643(a) is amended by striking
the last sentence and inserting ``The exclusion under section
1202 and the deduction under section 1203 shall not be taken
into account.''.
(4) Subparagraph (C) of section 643(a)(6) is amended to
read as follows:
``(C) Paragraph (3) shall not apply to a foreign trust. In
the case of such a trust--
``(i) there shall be included gains from the sale or
exchange of capital assets, reduced by losses from such sales
or exchanges to the extent such losses do not exceed gains
from such sales or exchanges, and
``(ii) the deduction under section 1203 shall not be taken
into account.''.
(5) Paragraph (4) of section 691(c) is amended by inserting
``1203,'' after ``1202,''.
(6) Paragraph (2) of section 871(a) is amended by inserting
``or 1203,'' after ``1202,''.
(7) The table of sections for part I of subchapter P of
chapter 1 is amended by adding at the end the following new
item:
``Sec. 1203. Deduction for qualified timber gain.''.
(i) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment
of this Act.
(2) Taxable years which include date of enactment.--In the
case of any taxable year which includes the date of the
enactment of this Act, for purposes of the Internal Revenue
Code of 1986, the taxpayer's qualified timber gain shall not
exceed the excess that would be described in section 1203(b)
of such Code, as added by this section, if only dispositions
of timber after such date were taken into account.
SEC. 872. EXCISE TAX NOT APPLICABLE TO SECTION 1203 DEDUCTION
OF REAL ESTATE INVESTMENT TRUSTS.
(a) In General.--Subparagraph (B) of section 4981(b)(1) is
amended to read as follows:
``(B) 95 percent of the real estate investment trust's
capital gain net income, without regard to any reduction that
would be applied for purposes of section 857(b)(3)(G)(i).''.
(b) Effective Date.--
(1) In general.--The amendment made by this section shall
apply to taxable years ending after the date of the enactment
of this Act.
(2) Taxable years which include date of enactment.--In the
case of any taxable year which includes the date of the
enactment of this Act, for purposes of the Internal Revenue
Code of 1986, the taxpayer's qualified timber gain shall not
exceed the excess that would be described in section 1203(b)
of such Code, as added by this Act, if only dispositions of
timber after such date were taken into account.
SEC. 873. TIMBER REIT MODERNIZATION.
(a) In General.--Section 856(c)(5) is amended by adding
after subparagraph (G) the following new subparagraph:
``(H) Treatment of timber gains.--
``(i) In general.--Gain from the sale of real property
described in paragraph (2)(D) and (3)(C) shall include gain
which is--
``(I) recognized by an election under section 631(a) from
timber owned by the real estate investment trust, the cutting
of which is provided by a taxable REIT subsidiary of the real
estate investment trust;
``(II) recognized under section 631(b); or
``(III) income which would constitute gain under subclause
(I) or (II) but for the failure to meet the 1-year holding
period requirement.
``(ii) Special rules.--
``(I) For purposes of this subtitle, cut timber, the gain
of which is recognized by a real estate investment trust
pursuant to an election under section 631(a) described in
clause (i)(I) or so much of clause (i)(III) as relates to
clause (i)(I), shall be deemed to be sold to the taxable REIT
subsidiary of the real estate investment trust on the first
day of the taxable year.
``(II) For purposes of this subtitle, income described in
this subparagraph shall not be treated as gain from the sale
of property described in section 1221(a)(1).
``(iii) Termination.--
``(I) In general.--This subparagraph shall not apply to
dispositions on or after the termination date.
``(II) Termination date.--For purposes of this subsection,
the termination date is the date that is 1 year after the
date of the enactment of this subparagraph.''.
(b) Effective Date.--The amendments made by this section
shall apply to dispositions after the date of the enactment
of this Act.
[[Page S7947]]
SEC. 874. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR TIMBER
REITS.
(a) In General.--Section 856(c)(2) is amended by striking
``and'' at the end of subparagraph (G), by inserting ``and''
at the end of subparagraph (H), and by adding after
subparagraph (H) the following new subparagraph:
``(I) mineral royalty income earned before the termination
date, from real property owned by a timber real estate
investment trust held, or once held, in connection with the
trade or business of producing timber by such real estate
investment trust;''.
(b) Timber Real Estate Investment Trust.--Section
856(c)(5), as amended by this Act, is amended by adding after
subparagraph (H) the following new subparagraph:
``(I) Timber real estate investment trust.--The term
`timber real estate investment trust' means a real estate
investment trust in which more than 50 percent in value of
its total assets consists of real property held in connection
with the trade or business of producing timber.''.
(c) Effective Dates.--
(1) Subsection (a).--The amendment made by subsection (a)
shall apply to income earned after the date of the enactment
of this Act.
(2) Subsection (b).--The amendments made by subsection (b)
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. 875. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST
FOR TIMBER REITS.
(a) In General.--Section 856(c)(4)(B)(ii) is amended by
inserting ``(in the case of a quarter which closes before the
termination date, 25 percent in the case of a timber real
estate investment trust)'' after ``not more than 20 percent
of the value of its total assets is represented by securities
of one or more taxable REIT subsidiaries''.
(b) Effective Date.--The amendment made by this section
shall apply to quarters closing after the date of the
enactment of this Act.
SEC. 876. SAFE HARBOR FOR TIMBER PROPERTY.
(a) In General.--Section 857(b)(6) (relating to income from
prohibited transactions) is amended by adding at the end the
following new subparagraph:
``(G) Special rules for sales to qualified organizations.--
``(i) In general.--In the case of sale of a real estate
asset (as defined in section 856(c)(5)(B)) to a qualified
organization (as defined in section 170(h)(3)) exclusively
for conservation purposes (within the meaning of section
170(h)(1)(C)), subparagraph (D) shall be applied--
``(I) by substituting `2 years' for `4 years' in clause
(i), and
``(II) by substituting `2-year period' for `4-year period'
in clauses (ii) and (iii).
``(ii) Termination.--This subparagraph shall not apply to
sales on or after the termination date.''.
(b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is
amended by inserting ``or, in the case of a sale before the
termination date, a taxable REIT subsidiary'' after
``independent contractor (as defined in section 856(d)(3))
from whom the trust itself does not derive or receive any
income''.
(c) Sales That Are Not Prohibited Transactions.--Section
857(b)(6), as amended by subsection (a), is amended by adding
at the end the following new subparagraph:
``(H) Sales of property that are not a prohibited
transaction.--In the case of a sale before the termination
date, the sale of property which is not a prohibited
transaction through application of subparagraph (D) shall be
considered property held for investment or for use in a trade
or business and not property described in section 1221(a)(1)
for all purposes of this subtitle.''.
(d) Termination Date.--Section 857(b)(6), as amended by
subsections (a) and (c), is amended by adding at the end the
following new subparagraph:
``(I) Termination date.--For purposes of this paragraph,
the termination date is the date that is 1 year after the
date of the enactment of this subparagraph.''.
(e) Effective Date.--The amendments made by this section
shall apply to dispositions after the date of the enactment
of this Act.
Subpart B--Miscellaneous
SEC. 877. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO
CERTAIN COAL PRODUCERS AND EXPORTERS.
(a) Refund.--
(1) Coal producers.--
(A) In general.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, if--
(i) a coal producer establishes that such coal producer, or
a party related to such coal producer, exported coal produced
by such coal producer to a foreign country or shipped coal
produced by such coal producer to a possession of the United
States, the export or shipment of which was other than
through an exporter who has filed a claim for a refund under
paragraph (2),
(ii) such coal producer filed a return on or after October
1, 1990, and on or before the date of the enactment of this
Act, and
(iii) such coal producer files a claim for refund not later
than the close of the 30-day period beginning on the date of
the enactment of this Act,
then the Secretary of the Treasury shall pay to such coal
producer an amount equal to the tax paid under section 4121
of such Code on such coal exported by the coal producer or a
party related to such coal producer.
(B) Special rules for certain taxpayers.--For purposes of
this section--
(i) Establishment of export.--If a coal producer or a party
related to a coal producer has received a judgment described
in clause (iii), such coal producer shall be deemed to have
established the export of coal to a foreign country or
shipment of coal to a possession of the United States under
subparagraph (A)(i).
(ii) Amount of payment.--If a taxpayer described in clause
(i) is entitled to a payment under subparagraph (A), the
amount of such payment shall be reduced by any amount awarded
under the judgment described in clause (iii).
(iii) Judgment described.--A judgment is described in this
subparagraph if such judgment--
(I) is made by a court of competent jurisdiction within the
United States,
(II) relates to the constitutionality of any tax paid on
exported coal under section 4121 of the Internal Revenue Code
of 1986, and
(III) is in favor of the coal producer or the party related
to the coal producer.
(iv) Recapture.--In the case any judgment described in
clause (iii) is overturned, the coal producer shall pay to
the Secretary the amount of any payment received under
subparagraph (A) unless the coal producer establishes the
export of the coal to a foreign country or shipment of coal
to a possession of the United States.
(2) Exporters.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, and a judgment described in paragraph (1)(B)(iii) of
this subsection, if--
(A) an exporter establishes that such exporter exported
coal to a foreign country or shipped coal to a possession of
the United States, or caused such coal to be so exported or
shipped,
(B) such exporter filed a return on or after October 1,
1990, and on or before the date of the enactment of this Act,
and
(C) such exporter files a claim for refund not later than
the close of the 30-day period beginning on the date of the
enactment of this Act,
then the Secretary of the Treasury shall pay to such exporter
an amount equal to $0.825 per ton of such coal exported by
the exporter or caused to be exported by the exporter.
(b) Limitations.--Subsection (a) shall not apply with
respect to exported coal if a credit or refund of tax imposed
by section 4121 of such Code on such coal has been allowed or
made to, or if a settlement with the Federal Government has
been made with and accepted by, the coal producer, a party
related to such coal producer, or the exporter, of such coal,
as of the date that the claim is filed under this section
with respect to such exported coal. For purposes of this
subsection, the term ``settlement with the Federal
Government'' shall not include any settlement or stipulation
entered into as of the date of the enactment of this Act, the
terms of which contemplate a judgment concerning which any
party has reserved the right to file an appeal, or has filed
an appeal.
(c) Subsequent Refund Prohibited.--No refund shall be made
under this section to the extent that a credit or refund of
such tax on such exported coal has been paid to any person.
(d) Definitions.--For purposes of this section--
(1) Coal producer.--The term ``coal producer'' means the
person in whom is vested ownership of the coal immediately
after the coal is severed from the ground, without regard to
the existence of any contractual arrangement for the sale or
other disposition of the coal or the payment of any royalties
between the producer and third parties. The term includes any
person who extracts coal from coal waste refuse piles or from
the silt waste product which results from the wet washing (or
similar processing) of coal.
(2) Exporter.--The term ``exporter'' means a person, other
than a coal producer, who does not have a contract, fee
arrangement, or any other agreement with a producer or seller
of such coal to sell or export such coal to a third party on
behalf of the producer or seller of such coal and--
(A) is indicated in the shipper's export declaration or
other documentation as the exporter of record, or
(B) actually exported such coal to a foreign country or
shipped such coal to a possession of the United States, or
caused such coal to be so exported or shipped.
(3) Related party.--The term ``a party related to such coal
producer'' means a person who--
(A) is related to such coal producer through any degree of
common management, stock ownership, or voting control,
(B) is related (within the meaning of section 144(a)(3) of
such Code) to such coal producer, or
(C) has a contract, fee arrangement, or any other agreement
with such coal producer to sell such coal to a third party on
behalf of such coal producer.
(e) Timing of Refund.--With respect to any claim for refund
filed pursuant to this section, the Secretary of the Treasury
shall determine whether the requirements of this section are
met not later than 180 days after such claim is filed. If the
Secretary determines that the requirements of this section
are met, the claim for refund shall be paid not later than
180 days after the Secretary makes such determination.
(f) Interest.--Any refund paid pursuant to this section
shall be paid by the Secretary of
[[Page S7948]]
the Treasury with interest from the date of overpayment
determined by using the overpayment rate and method under
section 6621 of such Code.
(g) Denial of Double Benefit.--The payment under subsection
(a) with respect to any coal shall not exceed--
(1) in the case of a payment to a coal producer, the amount
of tax paid under section 4121 of the Internal Revenue Code
of 1986 with respect to such coal by such coal producer or a
party related to such coal producer, and
(2) in the case of a payment to an exporter, an amount
equal to $0.825 per ton with respect to such coal exported by
the exporter or caused to be exported by the exporter.
(h) Application of Section.--This section applies only to
claims on coal exported on or after October 1, 1990, through
the date of the enactment of this Act.
(i) Standing Not Conferred.--
(1) Exporters.--With respect to exporters, this section
shall not confer standing upon an exporter to commence, or
intervene in, any judicial or administrative proceeding
concerning a claim for refund by a coal producer of any
Federal or State tax, fee, or royalty paid by the coal
producer.
(2) Coal producers.--With respect to coal producers, this
section shall not confer standing upon a coal producer to
commence, or intervene in, any judicial or administrative
proceeding concerning a claim for refund by an exporter of
any Federal or State tax, fee, or royalty paid by the
producer and alleged to have been passed on to an exporter.
SEC. 878. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.
(a) In General.--Subpart H of part IV of subchapter A of
chapter 1 (relating to credits against tax), as amended by
this Act, is amended by adding at the end the following new
section:
``SEC. 54B. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who
holds a rural renaissance bond on 1 or more credit allowance
dates of the bond occurring during any taxable year, there
shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to the sum of
the credits determined under subsection (b) with respect to
such dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance
date for a rural renaissance bond is 25 percent of the annual
credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any rural renaissance bond is the product of--
``(A) the credit rate determined by the Secretary under
paragraph (3) for the day on which such bond was sold,
multiplied by
``(B) the outstanding face amount of the bond.
``(3) Determination.--For purposes of paragraph (2), with
respect to any rural renaissance bond, the Secretary shall
determine daily or caused to be determined daily a credit
rate which shall apply to the first day on which there is a
binding, written contract for the sale or exchange of the
bond. The credit rate for any day is the credit rate which
the Secretary or the Secretary's designee estimates will
permit the issuance of rural renaissance bonds with a
specified maturity or redemption date without discount and
without interest cost to the qualified issuer.
``(4) Credit allowance date.--For purposes of this section,
the term `credit allowance date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term also includes the last day on which the bond is
outstanding.
``(5) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month
period during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--The credit
allowed under subsection (a) for any taxable year shall not
exceed the excess of--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under this part
(other than subpart C, section 1400N(l), and this section).
``(d) Rural Renaissance Bond.--For purposes of this
section--
``(1) In general.--The term `rural renaissance bond' means
any bond issued as part of an issue if--
``(A) the bond is issued by a qualified issuer pursuant to
an allocation by the Secretary to such issuer of a portion of
the national rural renaissance bond limitation under
subsection (f)(2),
``(B) 95 percent or more of the proceeds from the sale of
such issue are to be used for capital expenditures incurred
by qualified borrowers for 1 or more qualified projects,
``(C) the qualified issuer designates such bond for
purposes of this section and the bond is in registered form,
``(D) the issue meets the requirements of subsection (h),
and
``(E) such bond is not a federally guaranteed bond (within
the meaning of section 149(b)(2)).
``(2) Qualified project; special use rules.--
``(A) In general.--The term `qualified project' means 1 or
more projects described in subparagraph (B) located in a
rural area.
``(B) Projects described.--A project described in this
subparagraph is a project eligible for assistance under--
``(i) the utilities programs described in section
381E(d)(2) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2009d(d)(2)),
``(ii) the distance learning or telemedicine programs
authorized pursuant to chapter 1 of subtitle D of title XXIII
of the Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 950aaa et seq.),
``(iii) the rural electric programs authorized pursuant to
the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.),
``(iv) the rural telephone programs authorized pursuant to
the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.),
``(v) the broadband access programs authorized pursuant to
title VI of the Rural Electrification Act of 1936 (7 U.S.C.
950bb et seq.), and
``(vi) the rural community facility programs as described
in section 381E(d)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009d(d)(1)).
``(C) Refinancing rules.--For purposes of paragraph (1)(B),
a qualified project may be refinanced with proceeds of a
rural renaissance bond only if the indebtedness being
refinanced (including any obligation directly or indirectly
refinanced by such indebtedness) was originally incurred by a
qualified borrower after the date of the enactment of this
section.
``(D) Reimbursement.--For purposes of paragraph (1)(B), a
rural renaissance bond may be issued to reimburse a qualified
borrower for amounts paid after the date of the enactment of
this section with respect to a qualified project, but only
if--
``(i) prior to the payment of the original expenditure, the
qualified borrower declared its intent to reimburse such
expenditure with the proceeds of a rural renaissance bond,
``(ii) not later than 60 days after payment of the original
expenditure, the qualified issuer adopts an official intent
to reimburse the original expenditure with such proceeds, and
``(iii) the reimbursement is made not later than 18 months
after the date the original expenditure is paid.
``(E) Treatment of changes in use.--For purposes of
paragraph (1)(B), the proceeds of an issue shall not be
treated as used for a qualified project to the extent that a
qualified borrower or qualified issuer takes any action
within its control which causes such proceeds not to be used
for a qualified project. The Secretary shall prescribe
regulations specifying remedial actions that may be taken
(including conditions to taking such remedial actions) to
prevent an action described in the preceding sentence from
causing a bond to fail to be a rural renaissance bond.
``(F) Treatment of other subsidies.--For purposes of
subparagraph (B), a qualified project does not include any
portion of a project financed by grants or subsidized
financing provided (directly or indirectly) under a Federal
program, including any State or local obligation used to
provide financing for such portion the interest on which is
exempt from tax under section 103.
``(e) Maturity Limitations.--
``(1) Duration of term.--A bond shall not be treated as a
rural renaissance bond if the maturity of such bond exceeds
the maximum term determined by the Secretary under paragraph
(2) with respect to such bond.
``(2) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under
this paragraph for bonds issued during the following calendar
month. Such maximum term shall be the term which the
Secretary estimates will result in the present value of the
obligation to repay the principal on the bond being equal to
50 percent of the face amount of such bond. Such present
value shall be determined without regard to the requirements
of paragraph (3) and using as a discount rate the average
annual interest rate of tax-exempt obligations having a term
of 10 years or more which are issued during the month. If the
term as so determined is not a multiple of a whole year, such
term shall be rounded to the next highest whole year.
``(3) Ratable principal amortization required.--A bond
shall not be treated as a rural renaissance bond unless it is
part of an issue which provides for an equal amount of
principal to be paid by the qualified issuer during each
calendar year that the issue is outstanding.
``(f) Limitation on Amount of Bonds Designated.--
``(1) National limitation.--There is a national rural
renaissance bond limitation of $400,000,000.
``(2) Allocation by secretary.--
``(A) In general.--In accordance with subparagraph (B), the
Secretary shall allocate the amount described in paragraph
(1) among at least 20 qualified projects, or such lesser
number of qualified projects with proper applications filed
after 12 months after the adoption of the selection process
under subparagraph (B).
[[Page S7949]]
``(B) Selection process.--In consultation with the
Secretary of Agriculture, the Secretary shall adopt a process
to select projects described in subparagraph (A). Under such
process, the Secretary shall not allocate more than 15
percent of the allocation under subparagraph (A) to qualified
projects within a single State.
``(g) Credit Included in Gross Income.--Gross income
includes the amount of the credit allowed to the taxpayer
under this section (determined without regard to subsection
(c)) and the amount so included shall be treated as interest
income.
``(h) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of
issuance, the qualified issuer reasonably expects--
``(A) at least 95 percent of the proceeds from the sale of
the issue are to be spent for 1 or more qualified projects
within the 5-year period beginning on the date of issuance of
the rural renaissance bond,
``(B) a binding commitment with a third party to spend at
least 10 percent of the proceeds from the sale of the issue
will be incurred within the 6-month period beginning on the
date of issuance of the rural renaissance bond or, in the
case of a rural renaissance bond the proceeds of which are to
be loaned to 2 or more qualified borrowers, such binding
commitment will be incurred within the 6-month period
beginning on the date of the loan of such proceeds to a
qualified borrower, and
``(C) such projects will be completed with due diligence
and the proceeds from the sale of the issue will be spent
with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the qualified
issuer establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related
projects will continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of
the proceeds of such issue are expended by the close of the
5-year period beginning on the date of issuance (or if an
extension has been obtained under paragraph (2), by the close
of the extended period), the qualified issuer shall redeem
all of the nonqualified bonds within 90 days after the end of
such period. For purposes of this paragraph, the amount of
the nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(i) Special Rules Relating to Arbitrage.--A bond which is
part of an issue shall not be treated as a rural renaissance
bond unless, with respect to the issue of which the bond is a
part, the qualified issuer satisfies the arbitrage
requirements of section 148 with respect to proceeds of the
issue.
``(j) Definitions and Special Rules Relating to Issuers and
Borrowers.--For purposes of this section--
``(1) Qualified issuer.--The term `qualified issuer'
means--
``(A) a rural renaissance bond lender,
``(B) a cooperative electric company, or
``(C) a governmental body.
``(2) Qualified borrower.--The term `qualified borrower'
means--
``(A) a mutual or cooperative electric company described in
section 501(c)(12) or 1381(a)(2)(C), or
``(B) a governmental body.
``(3) Rural renaissance bond lender.--The term `rural
renaissance bond lender' means a lender which is a
cooperative which is owned by, or has outstanding loans to,
100 or more cooperative electric companies and is in
existence on February 1, 2002, and shall include any
affiliated entity which is controlled by such lender.
``(4) Cooperative electric company.--The term `cooperative
electric company' means a mutual or cooperative electric
company described in section 501(c)(12) or section
1381(a)(2)(C), or a not-for-profit electric utility which has
received a loan or loan guarantee under the Rural
Electrification Act.
``(5) Governmental body.--The term `governmental body'
means any State, territory, possession of the United States,
the District of Columbia, Indian tribal government, and any
political subdivision thereof.
``(k) Special Rules Relating to Pool Bonds.--No portion of
a pooled financing bond may be allocable to loan unless the
borrower has entered into a written loan commitment for such
portion prior to the issue date of such issue.
``(l) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Bond.--The term `bond' includes any obligation.
``(2) Pooled financing bond.--The term `pooled financing
bond' shall have the meaning given such term by section
149(f)(4)(A).
``(3) Rural area.--The term `rural area' shall have the
meaning given such term by section 1393(a)(2).
``(4) Partnership; s corporation; and other pass-thru
entities.--
``(A) In general.--Under regulations prescribed by the
Secretary, in the case of a partnership, trust, S
corporation, or other pass-thru entity, rules similar to the
rules of section 41(g) shall apply with respect to the credit
allowable under subsection (a).
``(B) No basis adjustment.--In the case of a bond held by a
partnership or an S corporation, rules similar to the rules
under section 1397E(i) shall apply.
``(5) Bonds held by regulated investment companies.--If any
rural renaissance bond is held by a regulated investment
company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures
prescribed by the Secretary.
``(6) Reporting.--Issuers of rural renaissance bonds shall
submit reports similar to the reports required under section
149(e).
``(7) Termination.--This section shall not apply with
respect to any bond issued after December 31, 2008.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest), as amended by this
Act, is amended by adding at the end the following new
paragraph:
``(10) Reporting of credit on rural renaissance bonds.--
``(A) In general.--For purposes of subsection (a), the term
`interest' includes amounts includible in gross income under
section 54B(g) and such amounts shall be treated as paid on
the credit allowance date (as defined in section 54B(b)(4)).
``(B) Reporting to corporations, etc.--Except as otherwise
provided in regulations, in the case of any interest
described in subparagraph (A), subsection (b)(4) shall be
applied without regard to subparagraphs (A), (H), (I), (J),
(K), and (L)(i) of such subsection.
``(C) Regulatory authority.--The Secretary may prescribe
such regulations as are necessary or appropriate to carry out
the purposes of this paragraph, including regulations which
require more frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) The table of sections for subpart H of part IV of
subchapter A of chapter 1, as amended by this Act, is amended
by adding at the end the following new item:
``Sec. 54B. Credit to holders of rural renaissance bonds.''.
(2) Section 54(c)(2), as amended by this Act, is amended by
inserting ``section 54B,'' after ``section 54A,''.
(3) Section 54A(c)(2), as added by this Act, is amended by
inserting ``section 54B,'' after ``subpart C,''.
(d) Issuance of Regulations.--The Secretary of Treasury
shall issue regulations required under section 54B of the
Internal Revenue Code of 1986 (as added by this section) not
later than 120 days after the date of the enactment of this
Act.
(e) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.
Subtitle B--Revenue Raising Provisions
SEC. 881. DENIAL OF DEDUCTION FOR MAJOR INTEGRATED OIL
COMPANIES FOR INCOME ATTRIBUTABLE TO DOMESTIC
PRODUCTION OF OIL, NATURAL GAS, OR PRIMARY
PRODUCTS THEREOF.
(a) In General.--Subparagraph (B) of section 199(c)(4) of
the Internal Revenue Code of 1986 (relating to exceptions) is
amended by striking ``or'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting
``, or'', and by inserting after clause (iii) the following
new clause:
``(iv) in the case of any major integrated oil company (as
defined in section 167(h)(5)(B)), the production, refining,
processing, transportation, or distribution of oil, natural
gas, or any primary product thereof during any taxable year
described in section 167(h)(5)(B).''.
(b) Primary Product.--Section 199(c)(4)(B) of such Code is
amended by adding at the end the following flush sentence:
``For purposes of clause (iv), the term `primary product' has
the same meaning as when used in section 927(a)(2)(C), as in
effect before its repeal.''.
(c) Conforming Amendments.--Section 199(c)(4) of such Code
is amended--
(1) in subparagraph (A)(i)(III) by striking ``electricity,
natural gas,'' and inserting ``electricity'', and
(2) in subparagraph (B)(ii) by striking ``electricity,
natural gas,'' and inserting ``electricity''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 882. ELIMINATION OF THE DIFFERENT TREATMENT OF FOREIGN
OIL AND GAS EXTRACTION INCOME AND FOREIGN OIL
RELATED INCOME FOR PURPOSES OF THE FOREIGN TAX
CREDIT.
(a) In General.--Subsections (a) and (b) of section 907
(relating to special rules in case of foreign oil and gas
income) are amended to read as follows:
``(a) Reduction in Amount Allowed as Foreign Tax Under
Section 901.--In applying section 901, the amount of any
foreign oil and gas taxes paid or accrued (or deemed to have
been paid) during the taxable year which would (but for this
subsection) be taken into account for purposes of section 901
shall be reduced by the amount (if any) by which the amount
of such taxes exceeds the product of--
``(1) the amount of the combined foreign oil and gas income
for the taxable year,
``(2) multiplied by--
``(A) in the case of a corporation, the percentage which is
equal to the highest rate of tax specified under section
11(b), or
``(B) in the case of an individual, a fraction the
numerator of which is the tax against which the credit under
section 901(a) is taken and the denominator of which is the
taxpayer's entire taxable income.
``(b) Combined Foreign Oil and Gas Income; Foreign Oil and
Gas Taxes.--For purposes of this section--
[[Page S7950]]
``(1) Combined foreign oil and gas income.--The term
`combined foreign oil and gas income' means, with respect to
any taxable year, the sum of--
``(A) foreign oil and gas extraction income, and
``(B) foreign oil related income.
``(2) Foreign oil and gas taxes.--The term `foreign oil and
gas taxes' means, with respect to any taxable year, the sum
of--
``(A) oil and gas extraction taxes, and
``(B) any income, war profits, and excess profits taxes
paid or accrued (or deemed to have been paid or accrued under
section 902 or 960) during the taxable year with respect to
foreign oil related income (determined without regard to
subsection (c)(4)) or loss which would be taken into account
for purposes of section 901 without regard to this
section.''.
(b) Recapture of Foreign Oil and Gas Losses.--Paragraph (4)
of section 907(c) (relating to recapture of foreign oil and
gas extraction losses by recharacterizing later extraction
income) is amended to read as follows:
``(4) Recapture of foreign oil and gas losses by
recharacterizing later combined foreign oil and gas income.--
``(A) In general.--The combined foreign oil and gas income
of a taxpayer for a taxable year (determined without regard
to this paragraph) shall be reduced--
``(i) first by the amount determined under subparagraph
(B), and
``(ii) then by the amount determined under subparagraph
(C).
The aggregate amount of such reductions shall be treated as
income (from sources without the United States) which is not
combined foreign oil and gas income.
``(B) Reduction for pre-2008 foreign oil extraction
losses.--The reduction under this paragraph shall be equal to
the lesser of--
``(i) the foreign oil and gas extraction income of the
taxpayer for the taxable year (determined without regard to
this paragraph), or
``(ii) the excess of--
``(I) the aggregate amount of foreign oil extraction losses
for preceding taxable years beginning after December 31,
1982, and before January 1, 2008, over
``(II) so much of such aggregate amount as was
recharacterized under this paragraph (as in effect before and
after the date of the enactment of the Energy Advancement and
Investment Act of 2007) for preceding taxable years beginning
after December 31, 1982.
``(C) Reduction for post-2007 foreign oil and gas losses.--
The reduction under this paragraph shall be equal to the
lesser of--
``(i) the combined foreign oil and gas income of the
taxpayer for the taxable year (determined without regard to
this paragraph), reduced by an amount equal to the reduction
under subparagraph (A) for the taxable year, or
``(ii) the excess of--
``(I) the aggregate amount of foreign oil and gas losses
for preceding taxable years beginning after December 31,
2007, over
``(II) so much of such aggregate amount as was
recharacterized under this paragraph for preceding taxable
years beginning after December 31, 2007.
``(D) Foreign oil and gas loss defined.--
``(i) In general.--For purposes of this paragraph, the term
`foreign oil and gas loss' means the amount by which--
``(I) the gross income for the taxable year from sources
without the United States and its possessions (whether or not
the taxpayer chooses the benefits of this subpart for such
taxable year) taken into account in determining the combined
foreign oil and gas income for such year, is exceeded by
``(II) the sum of the deductions properly apportioned or
allocated thereto.
``(ii) Net operating loss deduction not taken into
account.--For purposes of clause (i), the net operating loss
deduction allowable for the taxable year under section 172(a)
shall not be taken into account.
``(iii) Expropriation and casualty losses not taken into
account.--For purposes of clause (i), there shall not be
taken into account--
``(I) any foreign expropriation loss (as defined in section
172(h) (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990)) for the
taxable year, or
``(II) any loss for the taxable year which arises from
fire, storm, shipwreck, or other casualty, or from theft,
to the extent such loss is not compensated for by insurance
or otherwise.
``(iv) Foreign oil extraction loss.--For purposes of
subparagraph (B)(ii)(I), foreign oil extraction losses shall
be determined under this paragraph as in effect on the day
before the date of the enactment of the Energy Advancement
and Investment Act of 2007.''.
(c) Carryback and Carryover of Disallowed Credits.--Section
907(f) (relating to carryback and carryover of disallowed
credits) is amended--
(1) by striking ``oil and gas extraction taxes'' each place
it appears and inserting ``foreign oil and gas taxes'', and
(2) by adding at the end the following new paragraph:
``(4) Transition rules for pre-2008 and 2008 disallowed
credits.--
``(A) Pre-2008 credits.--In the case of any unused credit
year beginning before January 1, 2008, this subsection shall
be applied to any unused oil and gas extraction taxes carried
from such unused credit year to a year beginning after
December 31, 2007--
``(i) by substituting `oil and gas extraction taxes' for
`foreign oil and gas taxes' each place it appears in
paragraphs (1), (2), and (3), and
``(ii) by computing, for purposes of paragraph (2)(A), the
limitation under subparagraph (A) for the year to which such
taxes are carried by substituting `foreign oil and gas
extraction income' for `foreign oil and gas income' in
subsection (a).
``(B) 2008 credits.--In the case of any unused credit year
beginning in 2008, the amendments made to this subsection by
the Energy Advancement and Investment Act of 2007 shall be
treated as being in effect for any preceding year beginning
before January 1, 2008, solely for purposes of determining
how much of the unused foreign oil and gas taxes for such
unused credit year may be deemed paid or accrued in such
preceding year.''.
(d) Conforming Amendment.--Section 6501(i) is amended by
striking ``oil and gas extraction taxes'' and inserting
``foreign oil and gas taxes''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 883. INCREASE AND EXTENSION OF OIL SPILL LIABILITY TRUST
FUND TAX.
(a) Increase in Rate.--
(1) In general.--Section 4611(c)(2)(B) (relating to rates)
is amended by striking ``5 cents'' and inserting ``10
cents''.
(2) Effective date.--The amendment made by this subsection
shall apply on and after the first day of the first calendar
quarter beginning more than 60 days after the date of the
enactment of this Act.
(b) Extension.--
(1) In general.--Section 4611(f) (relating to application
of Oil Spill Liability Trust Fund financing rate) is amended
by striking paragraphs (2) and (3) and inserting the
following new paragraph:
``(2) Termination.--The Oil Spill Liability Trust Fund
financing rate shall not apply after December 31, 2017.''.
(2) Conforming amendment.--Section 4611(f)(1) is amended by
striking ``paragraphs (2) and (3)'' and inserting ``paragraph
(2)''.
(3) Effective date.--The amendments made by this subsection
shall take effect on the date of the enactment of this Act.
SEC. 884. LIMITATION ON DRAWBACK CLAIMED FOR AMOUNTS
DEPOSITED INTO THE OIL SPILL LIABILITY TRUST
FUND.
Section 313(j) of the Tariff Act of 1930 (19 U.S. C.
1313(j)) is amended by adding at the end the following new
paragraph:
``(5) Limitation on certain drawbacks.--Any tax or fee
imposed under section 4611 of the Internal Revenue Code of
1986 for deposit in the Oil Spill Liability Trust Fund
pursuant to section 9509 of such Code shall not be eligible
for refund as drawback under this section.''.
SEC. 885. TAX ON CRUDE OIL AND NATURAL GAS PRODUCED FROM THE
OUTER CONTINENTAL SHELF IN THE GULF OF MEXICO.
(a) In General.--Subtitle E (relating to alcohol, tobacco,
and certain other excise taxes) is amended by adding at the
end the following new chapter:
``CHAPTER 56--TAX ON SEVERANCE OF CRUDE OIL AND NATURAL GAS FROM THE
OUTER CONTINENTAL SHELF IN THE GULF OF MEXICO
``Sec. 5896. Imposition of tax.
``Sec. 5897. Taxable crude oil or natural gas and removal price.
``Sec. 5898. Special rules and definitions.
``SEC. 5896. IMPOSITION OF TAX.
``(a) In General.--In addition to any other tax imposed
under this title, there is hereby imposed a tax equal to 13
percent of the removal price of any taxable crude oil or
natural gas removed from the premises during any taxable
period.
``(b) Credit for Federal Royalties Paid.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by subsection (a) with respect to the
production of any taxable crude oil or natural gas an amount
equal to the aggregate amount of royalties paid under Federal
law with respect to such production.
``(2) Limitation.--The aggregate amount of credits allowed
under paragraph (1) to any taxpayer for any taxable period
shall not exceed the amount of tax imposed by subsection (a)
for such taxable period.
``(c) Tax Paid by Producer.--The tax imposed by this
section shall be paid by the producer of the taxable crude
oil or natural gas.
``SEC. 5897. TAXABLE CRUDE OIL OR NATURAL GAS AND REMOVAL
PRICE.
``(a) Taxable Crude Oil or Natural Gas.--For purposes of
this chapter, the term `taxable crude oil or natural gas'
means crude oil or natural gas which is produced from Federal
submerged lands on the outer Continental Shelf in the Gulf of
Mexico pursuant to a lease entered into with the United
States which authorizes the production.
``(b) Removal Price.--For purposes of this chapter--
``(1) In general.--Except as otherwise provided in this
subsection, the term `removal price' means--
``(A) in the case of taxable crude oil, the amount for
which a barrel of such crude oil is sold, and
``(B) in the case of taxable natural gas, the amount per
1,000 cubic feet for which such natural gas is sold.
[[Page S7951]]
``(2) Sales between related persons.--In the case of a sale
between related persons, the removal price shall not be less
than the constructive sales price for purposes of determining
gross income from the property under section 613.
``(3) Oil or gas removed from property before sale.--If
crude oil or natural gas is removed from the property before
it is sold, the removal price shall be the constructive sales
price for purposes of determining gross income from the
property under section 613.
``(4) Refining begun on property.--If the manufacture or
conversion of crude oil into refined products begins before
such oil is removed from the property--
``(A) such oil shall be treated as removed on the day such
manufacture or conversion begins, and
``(B) the removal price shall be the constructive sales
price for purposes of determining gross income from the
property under section 613.
``(5) Property.--The term `property' has the meaning given
such term by section 614.
``SEC. 5898. SPECIAL RULES AND DEFINITIONS.
``(a) Administrative Requirements.--
``(1) Withholding and deposit of tax.--The Secretary shall
provide for the withholding and deposit of the tax imposed
under section 5896 on a quarterly basis.
``(2) Records and information.--Each taxpayer liable for
tax under section 5896 shall keep such records, make such
returns, and furnish such information (to the Secretary and
to other persons having an interest in the taxable crude oil
or natural gas) with respect to such oil as the Secretary may
by regulations prescribe.
``(3) Taxable periods; return of tax.--
``(A) Taxable period.--Except as provided by the Secretary,
each calendar year shall constitute a taxable period.
``(B) Returns.--The Secretary shall provide for the filing,
and the time for filing, of the return of the tax imposed
under section 5896.
``(b) Definitions.--For purposes of this chapter--
``(1) Producer.--The term `producer' means the holder of
the economic interest with respect to the crude oil or
natural gas.
``(2) Crude oil.--The term `crude oil' includes crude oil
condensates and natural gasoline.
``(3) Premises and crude oil product.--The terms `premises'
and `crude oil product' have the same meanings as when used
for purposes of determining gross income from the property
under section 613.
``(c) Adjustment of Removal Price.--In determining the
removal price of oil or natural gas from a property in the
case of any transaction, the Secretary may adjust the removal
price to reflect clearly the fair market value of oil or
natural gas removed.
``(d) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this chapter.''.
(b) Deductibility of Tax.--The first sentence of section
164(a) (relating to deduction for taxes) is amended by
inserting after paragraph (5) the following new paragraph:
``(6) The tax imposed by section 5896(a) (after application
of section 5896(b)) on the severance of crude oil or natural
gas from the outer Continental Shelf in the Gulf of
Mexico.''.
(c) Clerical Amendment.--The table of chapters for subtitle
E is amended by adding at the end the following new item:
``Chapter 56. Tax on severance of crude oil and natural gas from the
outer Continental Shelf in the Gulf of Mexico.''.
(d) Effective Date.--The amendments made by this section
shall apply to crude oil or natural gas removed after the
date of the enactment of this Act.
SEC. 886. TAXATION OF TAXABLE FUELS IN FOREIGN TRADE ZONES.
(a) Tax Imposed on Removals and Entries in Foreign Trade
Zones.--
(1) In general.--Subsection (a) of section 4083 (relating
to definitions) is amended by adding at the end the following
new paragraph:
``(4) United states.--The term `United States' includes any
foreign trade zone or bonded warehouse located in the United
States.''.
(2) Conforming amendment.--Section 4081(a)(1)(A) (relating
to imposition of tax) is amended--
(A) in clause (i), by inserting ``in the United States''
after ``refinery''; and
(B) in clause (ii), by inserting ``in the United States''
after ``terminal''.
(b) Treatment of Taxable Fuel in Foreign Trade Zones.--
Paragraph (2) of section 81c(a) of title 19, United States
Code, is amended by inserting ``(other than the provisions
relating to taxable fuel (as defined under section 4083(a) of
the Internal Revenue Code of 1986))'' after ``thereunder''.
(c) Effective Dates.--
(1) Subsection (a).--The amendments made by subsection (a)
shall apply to removals and entries after December 31, 2007.
(2) Subsection (b).--The amendment made by subsection (b)
shall take effect on January 1, 2008.
SEC. 887. CLARIFICATION OF PENALTY FOR SALE OF FUEL FAILING
TO MEET EPA REGULATIONS.
(a) In General.--Subsection (a) of section 6720A (relating
to penalty with respect to certain adulterated fuels) is
amended by striking ``applicable EPA regulations (as defined
in section 45H(c)(3))'' and inserting ``the requirements for
diesel fuel under section 211 of the Clean Air Act, as
determined by the Secretary,''.
(b) Effective Date.--The amendments made by this section
shall apply to any transfer, sale, or holding out for sale or
resale occurring after the date of the enactment of this Act.
SEC. 888. CLARIFICATION OF ELIGIBILITY FOR CERTAIN FUELS
CREDITS FOR FUEL WITH INSUFFICIENT NEXUS TO THE
UNITED STATES.
(a) In General.--
(1) Alcohol credit.--Subsection (d) of section 40 is
amended by adding at the end the following new paragraph:
``(6) Limitation to alcohol with connection to the united
states.--
``(A) Alcohol credit.--No alcohol credit shall be
determined under this section with respect to any alcohol
unless such alcohol is produced in the United States for
consumption in the United States or entered into the United
States for consumption in the United States.
``(B) Alcohol mixture credit.--No alcohol mixture credit
shall be determined under this section with respect to any
mixture unless such mixture is produced in the United States
for consumption in the United States or entered into the
United States for consumption in the United States.
``(C) No credits for alcohol destined for export.--No
credit (other than the small ethanol producer credit) shall
be determined under this section with respect to any mixture
or alcohol if such mixture or alcohol is destined for export
from the United States (as determined by the Secretary).
``(D) Special rule for small producer credits.--No small
ethanol producer credit, small cellulosic alcohol producer
credit, or small fossil free alcohol producer credit shall be
determined under this section with respect to any alcohol
unless such alcohol is produced in the United States.''.
(2) Biodiesel credit.--Subsection (d) of section 40A is
amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united
states.--
``(A) Biodiesel credit.--No biodiesel credit shall be
determined under this section with respect to any biodiesel
unless such biodiesel is produced in the United States for
consumption in the United States or is entered into the
United States for consumption in the United States.
``(B) Biodiesel mixture credit.--No biodiesel mixture
credit shall be determined under this section with respect to
any mixture unless such mixture is produced in the United
States for consumption in the United States or is entered
into the United States for consumption in the United States.
``(C) No credits for biodiesel destined for export.--No
credit (other than the small agri-biodiesel producer credit)
shall be determined under this section with respect to any
mixture or biodiesel if such mixture or biodiesel is destined
for export from the United States (as determined by the
Secretary).
``(D) Special rule for small agri-biodiesel producer
credit.--No small agri-biodiesel producer credit shall be
determined under this section with respect to any agri-
biodiesel unless such agri-biodiesel is produced in the
United States.''.
(3) Excise tax credits.--Section 6426, as amended by
section 833, is amended by adding at the end the following
new subsection:
``(i) Limitation to Fuels With Connection to the United
States.--
``(1) Mixture credits.--No credit shall be determined under
this section with respect to any mixture unless such mixture
is produced in the United States for consumption in the
United States or is entered into the United States for
consumption in the United States.
``(2) Alternative fuel credit.--No alternative fuel credit
shall be determined under this section with respect to any
alternative fuel unless such alternative fuel is produced in
the United States for consumption in the United States or is
entered into the United States for consumption in the United
States.
``(3) No credits for fuels destined for export.--No credit
shall be determined under this section with respect to any
mixture or alternative fuel if such mixture or alternative
fuel is destined for export from the United States (as
determined by the Secretary).''.
(4) Payments.--Subsection (e) of section 6427 is amended by
redesignating paragraph (5), as amended by this Act, as
paragraph (6) and by inserting after paragraph (4) the
following new paragraph:
``(5) Limitation to fuels with connection to the united
states.--No amount shall be payable under paragraph (1) or
(2) with respect to any mixture or alternative fuel if credit
is not allowed with respect to such mixture or alternative
fuel by reason of section 6426(i).''.
(b) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after the date of the
enactment of this Act.
SEC. 889. TREATMENT OF QUALIFIED ALCOHOL FUEL MIXTURES AND
QUALIFIED BIODIESEL FUEL MIXTURES AS TAXABLE
FUELS.
(a) In General.--Subparagraph (A) of section 4083(a)(3)
(relating to diesel fuel) is amended by striking ``and'' at
the end of clause (ii), by redesignating clause (iii) as
clause (v), and inserting after clause (ii) the following new
clauses:
``(iii) any qualified mixture (as defined in section
40(b)(1)(B)) which is a mixture of alcohol and special fuel,
[[Page S7952]]
``(iv) any qualified biodiesel mixture (as defined in
section 40A(b)(1)(B)), and''.
(b) Effective Date.--The amendments made by this section
shall apply to fuels removed, entered, or sold after December
31, 2007.
SEC. 890. CALCULATION OF VOLUME OF ALCOHOL FOR FUEL CREDITS.
(a) In General.--Paragraph (4) of section 40(d) (relating
to volume of alcohol) is amended by striking ``the volume of
alcohol'' and all that follows and inserting ``the volume of
alcohol shall not include any denaturant added to such
alcohol.''.
(b) Effective Date.--The amendment made by this section
shall apply to fuel sold or used after December 31, 2007.
SEC. 891. BULK TRANSFER EXCEPTION NOT TO APPLY TO FINISHED
GASOLINE.
(a) In General.--Subparagraph (B) of section 4081(a)(1)
(relating to tax on removal, entry, or sale) is amended by
adding at the end the following new clause:
``(iii) Exception for finished gasoline.--Clause (i) shall
not apply to any gasoline which meets the requirements for
gasoline under section 211 of the Clean Air Act.''.
(b) Exception to Tax on Finished Gasoline for Prior Taxable
Removals.--Paragraph (1) of section 4081(a) is amended by
adding at the end the following new subparagraph:
``(C) Exemption for previously taxed finished gasoline.--
The tax imposed by this paragraph shall not apply to the
removal of gasoline described in subparagraph (B)(iii) from
any terminal if there was a prior taxable removal or entry of
such fuel under clause (i), (ii), or (iii) of subparagraph
(A). The preceding sentence shall not apply to the volume of
any product added to such gasoline at the terminal unless
there was a prior taxable removal or entry of such product
under clause (i), (ii), or (iii) of subparagraph (A).''.
(c) Effective Date.--The amendment made by this section
shall apply to fuel removed, entered, or sold after December
31, 2007.
SEC. 892. APPLICATION OF RULES TREATING INVERTED CORPORATIONS
AS DOMESTIC CORPORATIONS TO CERTAIN
TRANSACTIONS OCCURRING AFTER MARCH 20, 2002.
(a) In General.--Section 7874(b) (relating to inverted
corporations treated as domestic corporations) is amended to
read as follows:
``(b) Inverted Corporations Treated as Domestic
Corporations.--
``(1) In general.--Notwithstanding section 7701(a)(4), a
foreign corporation shall be treated for purposes of this
title as a domestic corporation if such corporation would be
a surrogate foreign corporation if subsection (a)(2) were
applied by substituting `80 percent' for `60 percent'.
``(2) Special rule for certain transactions occurring after
march 20, 2002.--
``(A) In general.--If--
``(i) paragraph (1) does not apply to a foreign
corporation, but
``(ii) paragraph (1) would apply to such corporation if, in
addition to the substitution under paragraph (1), subsection
(a)(2) were applied by substituting `March 20, 2002' for
`March 4, 2003' each place it appears,
then paragraph (1) shall apply to such corporation but only
with respect to taxable years of such corporation beginning
after December 31, 2006.
``(B) Special rules.--Subject to such rules as the
Secretary may prescribe, in the case of a corporation to
which paragraph (1) applies by reason of this paragraph--
``(i) the corporation shall be treated, as of the close of
its last taxable year beginning before January 1, 2007, as
having transferred all of its assets, liabilities, and
earnings and profits to a domestic corporation in a
transaction with respect to which no tax is imposed under
this title,
``(ii) the bases of the assets transferred in the
transaction to the domestic corporation shall be the same as
the bases of the assets in the hands of the foreign
corporation, subject to any adjustments under this title for
built-in losses,
``(iii) the basis of the stock of any shareholder in the
domestic corporation shall be the same as the basis of the
stock of the shareholder in the foreign corporation for which
it is treated as exchanged, and
``(iv) the transfer of any earnings and profits by reason
of clause (i) shall be disregarded in determining any deemed
dividend or foreign tax creditable to the domestic
corporation with respect to such transfer.
``(C) Regulations.--The Secretary may prescribe such
regulations as may be necessary or appropriate to carry out
this paragraph, including regulations to prevent the
avoidance of the purposes of this paragraph.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.
SEC. 893. MODIFICATION OF EFFECTIVE DATE OF LEASING
PROVISIONS OF THE AMERICAN JOBS CREATION ACT OF
2004.
(a) Leases to Foreign Entities.--Section 849(b) of the
American Jobs Creation Act of 2004 is amended by adding at
the end the following new paragraph:
``(5) Leases to foreign entities.--In the case of tax-
exempt use property leased to a tax-exempt entity which is a
foreign person or entity, the amendments made by this part
shall apply to taxable years beginning after December 31,
2006, with respect to leases entered into on or before March
12, 2004.''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the enactment of the
American Jobs Creation Act of 2004.
SEC. 894. REVISION OF TAX RULES ON EXPATRIATION OF
INDIVIDUALS.
(a) In General.--Subpart A of part II of subchapter N of
chapter 1 is amended by inserting after section 877 the
following new section:
``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.
``(a) General Rules.--For purposes of this subtitle--
``(1) Mark to market.--Except as provided in subsections
(d) and (f), all property of a covered expatriate to whom
this section applies shall be treated as sold on the day
before the expatriation date for its fair market value.
``(2) Recognition of gain or loss.--In the case of any sale
under paragraph (1)--
``(A) notwithstanding any other provision of this title,
any gain arising from such sale shall be taken into account
for the taxable year of the sale, and
``(B) any loss arising from such sale shall be taken into
account for the taxable year of the sale to the extent
otherwise provided by this title, except that section 1091
shall not apply to any such loss.
Proper adjustment shall be made in the amount of any gain or
loss subsequently realized for gain or loss taken into
account under the preceding sentence.
``(3) Exclusion for certain gain.--
``(A) In general.--The amount which, but for this
paragraph, would be includible in the gross income of any
individual by reason of this section shall be reduced (but
not below zero) by $600,000. For purposes of this paragraph,
allocable expatriation gain taken into account under
subsection (f)(2) shall be treated in the same manner as an
amount required to be includible in gross income.
``(B) Cost-of-living adjustment.--
``(i) In general.--In the case of an expatriation date
occurring in any calendar year after 2007, the $600,000
amount under subparagraph (A) shall 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 such calendar year, determined by
substituting `calendar year 2006' for `calendar year 1992' in
subparagraph (B) thereof.
``(ii) Rounding rules.--If any amount after adjustment
under clause (i) is not a multiple of $1,000, such amount
shall be rounded to the next lower multiple of $1,000.
``(4) Election to continue to be taxed as united states
citizen.--
``(A) In general.--If a covered expatriate elects the
application of this paragraph--
``(i) this section (other than this paragraph and
subsection (i)) shall not apply to the expatriate, but
``(ii) in the case of property to which this section would
apply but for such election, the expatriate shall be subject
to tax under this title in the same manner as if the
individual were a United States citizen.
``(B) Requirements.--Subparagraph (A) shall not apply to an
individual unless the individual--
``(i) provides security for payment of tax in such form and
manner, and in such amount, as the Secretary may require,
``(ii) consents to the waiver of any right of the
individual under any treaty of the United States which would
preclude assessment or collection of any tax which may be
imposed by reason of this paragraph, and
``(iii) complies with such other requirements as the
Secretary may prescribe.
``(C) Election.--An election under subparagraph (A) shall
apply to all property to which this section would apply but
for the election and, once made, shall be irrevocable. Such
election shall also apply to property the basis of which is
determined in whole or in part by reference to the property
with respect to which the election was made.
``(b) Election To Defer Tax.--
``(1) In general.--If the taxpayer elects the application
of this subsection with respect to any property treated as
sold by reason of subsection (a), the payment of the
additional tax attributable to such property shall be
postponed until the due date of the return for the taxable
year in which such property is disposed of (or, in the case
of property disposed of in a transaction in which gain is not
recognized in whole or in part, until such other date as the
Secretary may prescribe).
``(2) Determination of tax with respect to property.--For
purposes of paragraph (1), the additional tax attributable to
any property is an amount which bears the same ratio to the
additional tax imposed by this chapter for the taxable year
solely by reason of subsection (a) as the gain taken into
account under subsection (a) with respect to such property
bears to the total gain taken into account under subsection
(a) with respect to all property to which subsection (a)
applies.
``(3) Termination of postponement.--No tax may be postponed
under this subsection later than the due date for the return
of tax imposed by this chapter for the taxable year which
includes the date of death of the expatriate (or, if earlier,
the time that the security provided with respect to the
property fails to meet the requirements of paragraph (4),
unless the taxpayer corrects such failure within the time
specified by the Secretary).
``(4) Security.--
``(A) In general.--No election may be made under paragraph
(1) with respect to
[[Page S7953]]
any property unless adequate security is provided to the
Secretary with respect to such property.
``(B) Adequate security.--For purposes of subparagraph (A),
security with respect to any property shall be treated as
adequate security if--
``(i) it is a bond in an amount equal to the deferred tax
amount under paragraph (2) for the property, or
``(ii) the taxpayer otherwise establishes to the
satisfaction of the Secretary that the security is adequate.
``(5) Waiver of certain rights.--No election may be made
under paragraph (1) unless the taxpayer consents to the
waiver of any right under any treaty of the United States
which would preclude assessment or collection of any tax
imposed by reason of this section.
``(6) Elections.--An election under paragraph (1) shall
only apply to property described in the election and, once
made, is irrevocable. An election may be made under paragraph
(1) with respect to an interest in a trust with respect to
which gain is required to be recognized under subsection
(f)(1).
``(7) Interest.--For purposes of section 6601--
``(A) the last date for the payment of tax shall be
determined without regard to the election under this
subsection, and
``(B) section 6621(a)(2) shall be applied by substituting
`5 percentage points' for `3 percentage points' in
subparagraph (B) thereof.
``(c) Covered Expatriate.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
term `covered expatriate' means an expatriate.
``(2) Exceptions.--An individual shall not be treated as a
covered expatriate if--
``(A) the individual--
``(i) became at birth a citizen of the United States and a
citizen of another country and, as of the expatriation date,
continues to be a citizen of, and is taxed as a resident of,
such other country, and
``(ii) has not been a resident of the United States (as
defined in section 7701(b)(1)(A)(ii)) during the 5 taxable
years ending with the taxable year during which the
expatriation date occurs, or
``(B)(i) the individual's relinquishment of United States
citizenship occurs before such individual attains age 18\1/
2\, and
``(ii) the individual has been a resident of the United
States (as so defined) for not more than 5 taxable years
before the date of relinquishment.
``(d) Exempt Property; Special Rules for Pension Plans.--
``(1) Exempt property.--This section shall not apply to the
following:
``(A) United states real property interests.--Any United
States real property interest (as defined in section
897(c)(1)), other than stock of a United States real property
holding corporation which does not, on the day before the
expatriation date, meet the requirements of section
897(c)(2).
``(B) Specified property.--Any property or interest in
property not described in subparagraph (A) which the
Secretary specifies in regulations.
``(2) Special rules for certain retirement plans.--
``(A) In general.--If a covered expatriate holds on the day
before the expatriation date any interest in a retirement
plan to which this paragraph applies--
``(i) such interest shall not be treated as sold for
purposes of subsection (a)(1), but
``(ii) an amount equal to the present value of the
expatriate's nonforfeitable accrued benefit shall be treated
as having been received by such individual on such date as a
distribution under the plan.
``(B) Treatment of subsequent distributions.--In the case
of any distribution on or after the expatriation date to or
on behalf of the covered expatriate from a plan from which
the expatriate was treated as receiving a distribution under
subparagraph (A), the amount otherwise includible in gross
income by reason of the subsequent distribution shall be
reduced by the excess of the amount includible in gross
income under subparagraph (A) over any portion of such amount
to which this subparagraph previously applied.
``(C) Treatment of subsequent distributions by plan.--For
purposes of this title, a retirement plan to which this
paragraph applies, and any person acting on the plan's
behalf, shall treat any subsequent distribution described in
subparagraph (B) in the same manner as such distribution
would be treated without regard to this paragraph.
``(D) Applicable plans.--This paragraph shall apply to--
``(i) any qualified retirement plan (as defined in section
4974(c)),
``(ii) an eligible deferred compensation plan (as defined
in section 457(b)) of an eligible employer described in
section 457(e)(1)(A), and
``(iii) to the extent provided in regulations, any foreign
pension plan or similar retirement arrangements or programs.
``(e) Definitions.--For purposes of this section--
``(1) Expatriate.--The term `expatriate' means--
``(A) any United States citizen who relinquishes
citizenship, and
``(B) any long-term resident of the United States who--
``(i) ceases to be a lawful permanent resident of the
United States (within the meaning of section 7701(b)(6)), or
``(ii) commences to be treated as a resident of a foreign
country under the provisions of a tax treaty between the
United States and the foreign country and who does not waive
the benefits of such treaty applicable to residents of the
foreign country.
``(2) Expatriation date.--The term `expatriation date'
means--
``(A) the date an individual relinquishes United States
citizenship, or
``(B) in the case of a long-term resident of the United
States, the date of the event described in clause (i) or (ii)
of paragraph (1)(B).
``(3) Relinquishment of citizenship.--A citizen shall be
treated as relinquishing United States citizenship on the
earliest of--
``(A) the date the individual renounces such individual's
United States nationality before a diplomatic or consular
officer of the United States pursuant to paragraph (5) of
section 349(a) of the Immigration and Nationality Act (8
U.S.C. 1481(a)(5)),
``(B) the date the individual furnishes to the United
States Department of State a signed statement of voluntary
relinquishment of United States nationality confirming the
performance of an act of expatriation specified in paragraph
(1), (2), (3), or (4) of section 349(a) of the Immigration
and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
``(C) the date the United States Department of State issues
to the individual a certificate of loss of nationality, or
``(D) the date a court of the United States cancels a
naturalized citizen's certificate of naturalization.
Subparagraph (A) or (B) shall not apply to any individual
unless the renunciation or voluntary relinquishment is
subsequently approved by the issuance to the individual of a
certificate of loss of nationality by the United States
Department of State.
``(4) Long-term resident.--The term `long-term resident'
has the meaning given to such term by section 877(e)(2).
``(f) Special Rules Applicable to Beneficiaries' Interests
in Trust.--
``(1) In general.--Except as provided in paragraph (2), if
an individual is determined under paragraph (3) to hold an
interest in a trust on the day before the expatriation date--
``(A) the individual shall not be treated as having sold
such interest,
``(B) such interest shall be treated as a separate share in
the trust, and
``(C)(i) such separate share shall be treated as a separate
trust consisting of the assets allocable to such share,
``(ii) the separate trust shall be treated as having sold
its assets on the day before the expatriation date for their
fair market value and as having distributed all of its assets
to the individual as of such time, and
``(iii) the individual shall be treated as having
recontributed the assets to the separate trust.
Subsection (a)(2) shall apply to any income, gain, or loss of
the individual arising from a distribution described in
subparagraph (C)(ii). In determining the amount of such
distribution, proper adjustments shall be made for
liabilities of the trust allocable to an individual's share
in the trust.
``(2) Special rules for interests in qualified trusts.--
``(A) In general.--If the trust interest described in
paragraph (1) is an interest in a qualified trust--
``(i) paragraph (1) and subsection (a) shall not apply, and
``(ii) in addition to any other tax imposed by this title,
there is hereby imposed on each distribution with respect to
such interest a tax in the amount determined under
subparagraph (B).
``(B) Amount of tax.--The amount of tax under subparagraph
(A)(ii) shall be equal to the lesser of--
``(i) the highest rate of tax imposed by section 1(e) for
the taxable year which includes the day before the
expatriation date, multiplied by the amount of the
distribution, or
``(ii) the balance in the deferred tax account immediately
before the distribution determined without regard to any
increases under subparagraph (C)(ii) after the 30th day
preceding the distribution.
``(C) Deferred tax account.--For purposes of subparagraph
(B)(ii)--
``(i) Opening balance.--The opening balance in a deferred
tax account with respect to any trust interest is an amount
equal to the tax which would have been imposed on the
allocable expatriation gain with respect to the trust
interest if such gain had been included in gross income under
subsection (a).
``(ii) Increase for interest.--The balance in the deferred
tax account shall be increased by the amount of interest
determined (on the balance in the account at the time the
interest accrues), for periods after the 90th day after the
expatriation date, by using the rates and method applicable
under section 6621 for underpayments of tax for such periods,
except that section 6621(a)(2) shall be applied by
substituting `5 percentage points' for `3 percentage points'
in subparagraph (B) thereof.
``(iii) Decrease for taxes previously paid.--The balance in
the tax deferred account shall be reduced--
``(I) by the amount of taxes imposed by subparagraph (A) on
any distribution to the person holding the trust interest,
and
``(II) in the case of a person holding a nonvested
interest, to the extent provided in regulations, by the
amount of taxes imposed by subparagraph (A) on distributions
from
[[Page S7954]]
the trust with respect to nonvested interests not held by
such person.
``(D) Allocable expatriation gain.--For purposes of this
paragraph, the allocable expatriation gain with respect to
any beneficiary's interest in a trust is the amount of gain
which would be allocable to such beneficiary's vested and
nonvested interests in the trust if the beneficiary held
directly all assets allocable to such interests.
``(E) Tax deducted and withheld.--
``(i) In general.--The tax imposed by subparagraph (A)(ii)
shall be deducted and withheld by the trustees from the
distribution to which it relates.
``(ii) Exception where failure to waive treaty rights.--If
an amount may not be deducted and withheld under clause (i)
by reason of the distributee failing to waive any treaty
right with respect to such distribution--
``(I) the tax imposed by subparagraph (A)(ii) shall be
imposed on the trust and each trustee shall be personally
liable for the amount of such tax, and
``(II) any other beneficiary of the trust shall be entitled
to recover from the distributee the amount of such tax
imposed on the other beneficiary.
``(F) Disposition.--If a trust ceases to be a qualified
trust at any time, a covered expatriate disposes of an
interest in a qualified trust, or a covered expatriate
holding an interest in a qualified trust dies, then, in lieu
of the tax imposed by subparagraph (A)(ii), there is hereby
imposed a tax equal to the lesser of--
``(i) the tax determined under paragraph (1) as if the day
before the expatriation date were the date of such cessation,
disposition, or death, whichever is applicable, or
``(ii) the balance in the tax deferred account immediately
before such date.
Such tax shall be imposed on the trust and each trustee shall
be personally liable for the amount of such tax and any other
beneficiary of the trust shall be entitled to recover from
the covered expatriate or the estate the amount of such tax
imposed on the other beneficiary.
``(G) Definitions and special rules.--For purposes of this
paragraph--
``(i) Qualified trust.--The term `qualified trust' means a
trust which is described in section 7701(a)(30)(E).
``(ii) Vested interest.--The term `vested interest' means
any interest which, as of the day before the expatriation
date, is vested in the beneficiary.
``(iii) Nonvested interest.--The term `nonvested interest'
means, with respect to any beneficiary, any interest in a
trust which is not a vested interest. Such interest shall be
determined by assuming the maximum exercise of discretion in
favor of the beneficiary and the occurrence of all
contingencies in favor of the beneficiary.
``(iv) Adjustments.--The Secretary may provide for such
adjustments to the bases of assets in a trust or a deferred
tax account, and the timing of such adjustments, in order to
ensure that gain is taxed only once.
``(v) Coordination with retirement plan rules.--This
subsection shall not apply to an interest in a trust which is
part of a retirement plan to which subsection (d)(2) applies.
``(3) Determination of beneficiaries' interest in trust.--
``(A) Determinations under paragraph (1).--For purposes of
paragraph (1), a beneficiary's interest in a trust shall be
based upon all relevant facts and circumstances, including
the terms of the trust instrument and any letter of wishes or
similar document, historical patterns of trust distributions,
and the existence of and functions performed by a trust
protector or any similar adviser.
``(B) Other determinations.--For purposes of this section--
``(i) Constructive ownership.--If a beneficiary of a trust
is a corporation, partnership, trust, or estate, the
shareholders, partners, or beneficiaries shall be deemed to
be the trust beneficiaries for purposes of this section.
``(ii) Taxpayer return position.--A taxpayer shall clearly
indicate on its income tax return--
``(I) the methodology used to determine that taxpayer's
trust interest under this section, and
``(II) if the taxpayer knows (or has reason to know) that
any other beneficiary of such trust is using a different
methodology to determine such beneficiary's trust interest
under this section.
``(g) Termination of Deferrals, etc.--In the case of any
covered expatriate, notwithstanding any other provision of
this title--
``(1) any period during which recognition of income or gain
is deferred shall terminate on the day before the
expatriation date, and
``(2) any extension of time for payment of tax shall cease
to apply on the day before the expatriation date and the
unpaid portion of such tax shall be due and payable at the
time and in the manner prescribed by the Secretary.
``(h) Imposition of Tentative Tax.--
``(1) In general.--If an individual is required to include
any amount in gross income under subsection (a) for any
taxable year, there is hereby imposed, immediately before the
expatriation date, a tax in an amount equal to the amount of
tax which would be imposed if the taxable year were a short
taxable year ending on the expatriation date.
``(2) Due date.--The due date for any tax imposed by
paragraph (1) shall be the 90th day after the expatriation
date.
``(3) Treatment of tax.--Any tax paid under paragraph (1)
shall be treated as a payment of the tax imposed by this
chapter for the taxable year to which subsection (a) applies.
``(4) Deferral of tax.--The provisions of subsection (b)
shall apply to the tax imposed by this subsection to the
extent attributable to gain includible in gross income by
reason of this section.
``(i) Special Liens for Deferred Tax Amounts.--
``(1) Imposition of lien.--
``(A) In general.--If a covered expatriate makes an
election under subsection (a)(4) or (b) which results in the
deferral of any tax imposed by reason of subsection (a), the
deferred amount (including any interest, additional amount,
addition to tax, assessable penalty, and costs attributable
to the deferred amount) shall be a lien in favor of the
United States on all property of the expatriate located in
the United States (without regard to whether this section
applies to the property).
``(B) Deferred amount.--For purposes of this subsection,
the deferred amount is the amount of the increase in the
covered expatriate's income tax which, but for the election
under subsection (a)(4) or (b), would have occurred by reason
of this section for the taxable year including the
expatriation date.
``(2) Period of lien.--The lien imposed by this subsection
shall arise on the expatriation date and continue until--
``(A) the liability for tax by reason of this section is
satisfied or has become unenforceable by reason of lapse of
time, or
``(B) it is established to the satisfaction of the
Secretary that no further tax liability may arise by reason
of this section.
``(3) Certain rules apply.--The rules set forth in
paragraphs (1), (3), and (4) of section 6324A(d) shall apply
with respect to the lien imposed by this subsection as if it
were a lien imposed by section 6324A.
``(j) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Inclusion in Income of Gifts and Bequests Received by
United States Citizens and Residents From Expatriates.--
Section 102 (relating to gifts, etc. not included in gross
income) is amended by adding at the end the following new
subsection:
``(d) Gifts and Inheritances From Covered Expatriates.--
``(1) Treatment of gifts and inheritances.--
``(A) In general.--Subsection (a) shall not exclude from
gross income the value of any property acquired by gift,
bequest, devise, or inheritance from a covered expatriate
after the expatriation date.
``(B) Determination of basis.--Notwithstanding sections
1015 or 1022, the basis of any property described in
subparagraph (A) in the hands of the donee or the person
acquiring such property from the decedent shall be equal to
the fair market value of the property at the time of the
gift, bequest, devise, or inheritance.
``(2) Exceptions for transfers otherwise subject to estate
or gift tax.--Paragraph (1) shall not apply to any property
if either--
``(A) the gift, bequest, devise, or inheritance is--
``(i) shown on a timely filed return of tax imposed by
chapter 12 as a taxable gift by the covered expatriate, or
``(ii) included in the gross estate of the covered
expatriate for purposes of chapter 11 and shown on a timely
filed return of tax imposed by chapter 11 of the estate of
the covered expatriate, or
``(B) no such return was timely filed but no such return
would have been required to be filed even if the covered
expatriate were a citizen or long-term resident of the United
States.
``(3) Definitions.--For purposes of this subsection, any
term used in this subsection which is also used in section
877A shall have the same meaning as when used in section
877A.''.
(c) Definition of Termination of United States
Citizenship.--Section 7701(a) is amended by adding at the end
the following new paragraph:
``(50) Termination of united states citizenship.--
``(A) In general.--An individual shall not cease to be
treated as a United States citizen before the date on which
the individual's citizenship is treated as relinquished under
section 877A(e)(3).
``(B) Dual citizens.--Under regulations prescribed by the
Secretary, subparagraph (A) shall not apply to an individual
who became at birth a citizen of the United States and a
citizen of another country.''.
(d) Ineligibility for Visa or Admission to United States.--
(1) In general.--Section 212(a)(10)(E) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to
read as follows:
``(E) Former citizens not in compliance with expatriation
revenue provisions.--Any alien who is a former citizen of the
United States who relinquishes United States citizenship
(within the meaning of section 877A(e)(3) of the Internal
Revenue Code of 1986) and who is not in compliance with
section 877A of such Code (relating to expatriation) is
inadmissible.''.
(2) Availability of information.--
[[Page S7955]]
(A) In general.--Section 6103(l) (relating to disclosure of
returns and return information for purposes other than tax
administration) is amended by adding at the end the following
new paragraph:
``(21) Disclosure to deny visa or admission to certain
expatriates.--Upon written request of the Attorney General or
the Attorney General's delegate, the Secretary shall disclose
whether an individual is in compliance with section 877A (and
if not in compliance, any items of noncompliance) to officers
and employees of the Federal agency responsible for
administering section 212(a)(10)(E) of the Immigration and
Nationality Act solely for the purpose of, and to the extent
necessary in, administering such section 212(a)(10)(E).''.
(B) Safeguards.--Section 6103(p)(4) (relating to
safeguards) is amended by striking ``or (20)'' each place it
appears and inserting ``(20), or (21)''.
(3) Effective dates.--The amendments made by this
subsection shall apply to individuals who relinquish United
States citizenship on or after the date of the enactment of
this Act.
(e) Conforming Amendments.--
(1) Section 877 is amended by adding at the end the
following new subsection:
``(h) Application.--This section shall not apply to an
expatriate (as defined in section 877A(e)) whose expatriation
date (as so defined) occurs on or after the date of the
enactment of this subsection.''.
(2) Section 2107 is amended by adding at the end the
following new subsection:
``(f) Application.--This section shall not apply to any
expatriate subject to section 877A.''.
(3) Section 2501(a)(3) is amended by adding at the end the
following new subparagraph:
``(C) Application.--This paragraph shall not apply to any
expatriate subject to section 877A.''.
(4) Section 6039G(a) is amended by inserting ``or 877A''
after ``section 877(b)''.
(5) The second sentence of section 6039G(d) is amended by
inserting ``or who relinquishes United States citizenship
(within the meaning of section 877A(e)(3))'' after ``section
877(a))''.
(6) Section 7701(n) is amended by adding at the end the
following new paragraph:
``(3) Application.--This subsection shall not apply to any
expatriate subject to section 877A.''.
(f) Clerical Amendment.--The table of sections for subpart
A of part II of subchapter N of chapter 1 is amended by
inserting after the item relating to section 877 the
following new item:
``Sec. 877A. Tax responsibilities of expatriation.''.
(g) Effective Date.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to expatriates
(within the meaning of section 877A(e) of the Internal
Revenue Code of 1986, as added by this section) whose
expatriation date (as so defined) occurs on or after the date
of the enactment of this Act.
(2) Gifts and bequests.--Section 102(d) of the Internal
Revenue Code of 1986 (as added by subsection (b)) shall apply
to gifts and bequests received on or after the date of the
enactment of this Act, from an individual or the estate of an
individual whose expatriation date (as so defined) occurs
after such date.
(3) Due date for tentative tax.--The due date under section
877A(h)(2) of the Internal Revenue Code of 1986, as added by
this section, shall in no event occur before the 90th day
after the date of the enactment of this Act.
Subtitle C--Secure Rural Schools and Community Self-Determination
Program
SEC. 901. SECURE RURAL SCHOOLS AND COMMUNITY SELF-
DETERMINATION PROGRAM.
(a) Reauthorization of the Secure Rural Schools and
Community Self-Determination Act of 2000.--The Secure Rural
Schools and Community Self-Determination Act of 2000 (16
U.S.C. 500 note; Public Law 106-393) is amended by striking
sections 1 through 403 and inserting the following:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Secure Rural Schools and
Community Self-Determination Act of 2000'.
``SEC. 2. PURPOSES.
``The purposes of this Act are--
``(1) to stabilize and transition payments to counties to
provide funding for schools and roads that supplements other
available funds;
``(2) to make additional investments in, and create
additional employment opportunities through, projects that--
``(A)(i) improve the maintenance of existing
infrastructure;
``(ii) implement stewardship objectives that enhance forest
ecosystems; and
``(iii) restore and improve land health and water quality;
``(B) enjoy broad-based support; and
``(C) have objectives that may include--
``(i) road, trail, and infrastructure maintenance or
obliteration;
``(ii) soil productivity improvement;
``(iii) improvements in forest ecosystem health;
``(iv) watershed restoration and maintenance;
``(v) the restoration, maintenance, and improvement of
wildlife and fish habitat;
``(vi) the control of noxious and exotic weeds; and
``(vii) the reestablishment of native species; and
``(3) to improve cooperative relationships among--
``(A) the people that use and care for Federal land; and
``(B) the agencies that manage the Federal land.
``SEC. 3. DEFINITIONS.
``In this Act:
``(1) Adjusted share.--The term `adjusted share' means the
number equal to the quotient obtained by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the base share for the eligible county; by
``(ii) the income adjustment for the eligible county; by
``(B) the number equal to the sum of the quotients obtained
under subparagraph (A) and paragraph (8)(A) for all eligible
counties.
``(2) Base share.--The term `base share' means the number
equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land described in
paragraph (7)(A) in each eligible county; by
``(ii) the total number acres of Federal land in all
eligible counties in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of the 3 highest 25-
percent payments and safety net payments made to each
eligible State for each eligible county during the
eligibility period; by
``(ii) the amount equal to the sum of the amounts
calculated under clause (i) and paragraph (9)(B)(i) for all
eligible counties in all eligible States during the
eligibility period.
``(3) County payment.--The term `county payment' means the
payment for an eligible county calculated under section
101(b).
``(4) Eligible county.--The term `eligible county' means
any county that--
``(A) contains Federal land (as defined in paragraph (7));
and
``(B) elects to receive a share of the State payment or the
county payment under section 102(b).
``(5) Eligibility period.--The term `eligibility period'
means fiscal year 1986 through fiscal year 1999.
``(6) Eligible state.--The term `eligible State' means a
State or territory of the United States that received a 25-
percent payment for 1 or more fiscal years of the eligibility
period.
``(7) Federal land.--The term `Federal land' means--
``(A) land within the National Forest System, as defined in
section 11(a) of the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C. 1609(a)) exclusive of the
National Grasslands and land utilization projects designated
as National Grasslands administered pursuant to the Act of
July 22, 1937 (7 U.S.C. 1010-1012); and
``(B) such portions of the revested Oregon and California
Railroad and reconveyed Coos Bay Wagon Road grant land as are
or may hereafter come under the jurisdiction of the
Department of the Interior, which have heretofore or may
hereafter be classified as timberlands, and power-site land
valuable for timber, that shall be managed, except as
provided in the former section 3 of the Act of August 28,
1937 (50 Stat. 875; 43 U.S.C. 1181c), for permanent forest
production.
``(8) 50-Percent adjusted share.--The term `50-percent
adjusted share' means the number equal to the quotient
obtained by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the 50-percent base share for the eligible county; by
``(ii) the income adjustment for the eligible county; by
``(B) the number equal to the sum of the quotients obtained
under subparagraph (A) and paragraph (1)(A) for all eligible
counties.
``(9) 50-Percent base share.--The term `50-percent base
share' means the number equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land described in
paragraph (7)(B) in each eligible county; by
``(ii) the total number acres of Federal land in all
eligible counties in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of the 3 highest 50-
percent payments made to each eligible county during the
eligibility period; by
``(ii) the amount equal to the sum of the amounts
calculated under clause (i) and paragraph (2)(B)(i) for all
eligible counties in all eligible States during the
eligibility period.
``(10) 50-percent payment.--The term `50-percent payment'
means the payment that is the sum of the 50-percent share
otherwise paid to a county pursuant to title II of the Act of
August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f),
and the payment made to a county pursuant to the Act of May
24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et
seq.).
``(11) Full funding amount.--The term `full funding amount'
means--
``(A) $526,079,656 for fiscal year 2007;
``(B) $520,000,000 for fiscal year 2008; and
``(C) for fiscal year 2009 and each fiscal year thereafter,
the amount that is equal to
[[Page S7956]]
90 percent of the full funding amount for the preceding
fiscal year.
``(12) Income adjustment.--The term `income adjustment'
means the square of the quotient obtained by dividing--
``(A) the per capita personal income for each eligible
county; by
``(B) the median per capita personal income of all eligible
counties.
``(13) Per capita personal income.--The term `per capita
personal income' means the most recent per capita personal
income data, as determined by the Bureau of Economic
Analysis.
``(14) Safety net payments.--The term `safety net payments'
means the special payment amounts paid to States and counties
required by section 13982 or 13983 of the Omnibus Budget
Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500
note; 43 U.S.C. 1181f note).
``(15) Secretary concerned.--The term `Secretary concerned'
means--
``(A) the Secretary of Agriculture or the designee of the
Secretary of Agriculture with respect to the Federal land
described in paragraph (7)(A); and
``(B) the Secretary of the Interior or the designee of the
Secretary of the Interior with respect to the Federal land
described in paragraph (7)(B).
``(16) State payment.--The term `State payment' means the
payment for an eligible State calculated under section
101(a).
``(17) 25-Percent payment.--The term `25-percent payment'
means the payment to States required by the sixth paragraph
under the heading of `forest service' in the Act of May 23,
1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act
of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).
``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL
LAND
``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL
LAND.
``(a) State Payment.--For each of fiscal years 2007 through
2011, the Secretary of Agriculture shall calculate for each
eligible State an amount equal to the sum of the products
obtained by multiplying--
``(1) the adjusted share for each eligible county within
the eligible State; by
``(2) the full funding amount for the fiscal year.
``(b) County Payment.--For each of fiscal years 2007
through 2011, the Secretary of the Interior shall calculate
for each eligible county that received a 50-percent payment
during the eligibility period an amount equal to the product
obtained by multiplying--
``(1) the 50-percent adjusted share for the eligible
county; by
``(2) the full funding amount for the fiscal year.
``SEC. 102. PAYMENTS TO STATES AND COUNTIES.
``(a) Payment Amounts.--Except as provided in section 103,
the Secretary of the Treasury shall pay to--
``(1) a State or territory of the United States an amount
equal to the sum of the amounts elected under subsection (b)
by each county within the State or territory for--
``(A) if the county is eligible for the 25-percent payment,
the share of the 25-percent payment; or
``(B) the share of the State payment of the eligible
county; and
``(2) a county an amount equal to the amount elected under
subsection (b) by each county for--
``(A) if the county is eligible for the 50-percent payment,
the 50-percent payment; or
``(B) the county payment for the eligible county.
``(b) Election to Receive Payment Amount.--
``(1) Election; submission of results.--
``(A) In general.--The election to receive a share of the
State payment, the county payment, a share of the State
payment and the county payment, a share of the 25-percent
payment, the 50-percent payment, or a share of the 25-percent
payment and the 50-percent payment, as applicable, shall be
made at the discretion of each affected county by August 1,
2007, and August 1 of each second fiscal year thereafter, in
accordance with paragraph (2), and transmitted to the
Secretary concerned by the Governor of each eligible State.
``(B) Failure to transmit.--If an election for an affected
county is not transmitted to the Secretary concerned by the
date specified under subparagraph (A), the affected county
shall be considered to have elected to receive a share of the
State payment, the county payment, or a share of the State
payment and the county payment, as applicable.
``(2) Duration of election.--
``(A) In general.--A county election to receive a share of
the 25-percent payment or 50-percent payment, as applicable
shall be effective for 2 fiscal years.
``(B) Full funding amount.--If a county elects to receive a
share of the State payment or the county payment, the
election shall be effective for all subsequent fiscal years
through fiscal year 2011.
``(3) Source of payment amounts.--The payment to an
eligible State or eligible county under this section for a
fiscal year shall be derived from--
``(A) any revenues, fees, penalties, or miscellaneous
receipts, exclusive of deposits to any relevant trust fund,
special account, or permanent operating funds, received by
the Federal Government from activities by the Bureau of Land
Management or the Forest Service on the applicable Federal
land;
``(B) for fiscal year 2007, any funds appropriated to carry
out this Act; and
``(C) to the extent of any shortfall, out of any amounts in
the Treasury of the United States not otherwise appropriated.
``(c) Distribution and Expenditure of Payments.--
``(1) Distribution method.--A State that receives a payment
under subsection (a) for Federal land described in section
3(7)(A) shall distribute the appropriate payment amount among
the appropriate counties in the State in accordance with--
``(A) the Act of May 23, 1908 (16 U.S.C. 500); and
``(B) section 13 of the Act of March 1, 1911 (36 Stat. 963;
16 U.S.C. 500).
``(2) Expenditure purposes.--Subject to subsection (d),
payments received by a State under subsection (a) and
distributed to counties in accordance with paragraph (1)
shall be expended as required by the laws referred to in
paragraph (1).
``(d) Expenditure Rules for Eligible Counties.--
``(1) Allocations.--
``(A) Use of portion in same manner as 25-percent payment
or 50-percent payment, as applicable.--Except as provided in
paragraph (3)(B), if an eligible county elects to receive its
share of the State payment or the county payment, not less
than 80 percent, but not more than 85 percent, of the funds
shall be expended in the same manner in which the 25-percent
payments or 50-percent payment, as applicable, are required
to be expended.
``(B) Election as to use of balance.--Except as provided in
subparagraph (C), an eligible county shall elect to do 1 or
more of the following with the balance of any funds not
expended pursuant to subparagraph (A):
``(i) Reserve any portion of the balance for projects in
accordance with title II.
``(ii) Reserve not more than 7 percent of the total share
for the eligible county of the State payment or the county
payment for projects in accordance with title III.
``(iii) Return the portion of the balance not reserved
under clauses (i) and (ii) to the Treasury of the United
States.
``(C) Counties with modest distributions.--In the case of
each eligible county to which more than $100,000, but less
than $350,000, is distributed for any fiscal year pursuant to
either or both of paragraphs (1)(B) and (2)(B) of subsection
(a), the eligible county, with respect to the balance of any
funds not expended pursuant to subparagraph (A) for that
fiscal year, shall--
``(i) reserve any portion of the balance for--
``(I) carrying out projects under title II;
``(II) carrying out projects under title III; or
``(III) a combination of the purposes described in
subclauses (I) and (II); or
``(ii) return the portion of the balance not reserved under
clause (i) to the Treasury of the United States.
``(2) Distribution of funds.--
``(A) In general.--Funds reserved by an eligible county
under subparagraph (B)(i) or (C)(i) of paragraph (1) for
carrying out projects under title II shall be deposited in a
special account in the Treasury of the United States.
``(B) Availability.--Amounts deposited under subparagraph
(A) shall--
``(i) be available for expenditure by the Secretary
concerned, without further appropriation; and
``(ii) remain available until expended in accordance with
title II.
``(3) Election.--
``(A) Notification.--
``(i) In general.--An eligible county shall notify the
Secretary concerned of an election by the eligible county
under this subsection not later than September 30 of each
fiscal year.
``(ii) Failure to elect.--Except as provided in
subparagraph (B), if the eligible county fails to make an
election by the date specified in clause (i), the eligible
county shall--
``(I) be considered to have elected to expend 85 percent of
the funds in accordance with paragraph (1)(A); and
``(II) return the balance to the Treasury of the United
States.
``(B) Counties with minor distributions.--In the case of
each eligible county to which less than $100,000 is
distributed for any fiscal year pursuant to either or both of
paragraphs (1)(B) and (2)(B) of subsection (a), the eligible
county may elect to expend all the funds in the same manner
in which the 25-percent payments or 50-percent payments, as
applicable, are required to be expended.
``(e) Time for Payment.--The payments required under this
section for a fiscal year shall be made as soon as
practicable after the end of that fiscal year.
``SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALIFORNIA,
OREGON, AND WASHINGTON.
``(a) Definitions.--In this section:
``(1) Adjusted amount.--The term `adjusted amount' means,
with respect to a covered State--
``(A) for fiscal year 2007--
``(i) the sum of the amounts paid for fiscal year 2006
under section 102(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State
payment for fiscal year 2007; and
``(ii) the sum of the amounts paid for fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected
[[Page S7957]]
under section 102(b) to receive the county payment for fiscal
year 2007;
``(B) for fiscal year 2008, 90 percent of--
``(i) the sum of the amounts paid for fiscal year 2006
under section 102(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State
payment for fiscal year 2008; and
``(ii) the sum of the amounts paid for fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2008;
``(C) for fiscal year 2009, 81 percent of--
``(i) the sum of the amounts paid for fiscal year 2006
under section 102(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State
payment for fiscal year 2009; and
``(ii) the sum of the amounts paid for fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2009; and
``(D) for fiscal year 2010, 73 percent of--
``(i) the sum of the amounts paid for fiscal year 2006
under section 102(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State
payment for fiscal year 2010; and
``(ii) the sum of the amounts paid for fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2010.
``(2) Covered state.--The term `covered State' means each
of the States of California, Oregon, and Washington.
``(b) Transition Payments.--For each of fiscal years 2007
through 2010, in lieu of the payment amounts that otherwise
would have been made under paragraphs (1)(B) and (2)(B) of
section 102(a), the Secretary of the Treasury shall pay the
adjusted amount to each covered State and the eligible
counties within the covered State, as applicable.
``(c) Distribution of Adjusted Amount in Oregon and
Washington.--It is the intent of Congress that the method of
distributing the payments under subsection (b) among the
counties in the States of Oregon and Washington for each of
fiscal years 2007 through 2010 be in the same proportion that
the payments were distributed to the eligible counties in
fiscal year 2006.
``(d) Distribution of Payments in California.--The
following payments shall be distributed among the eligible
counties in the State of California in the same proportion
that payments under section 102(a)(2) (as in effect on
September 29, 2006) were distributed to the eligible counties
for fiscal year 2006:
``(1) Payments to the State of California under subsection
(b).
``(2) The shares of the eligible counties of the State
payment for California under section 102 for fiscal year
2011.
``(e) Treatment of Payments.--For purposes of this Act, any
payment made under subsection (b) shall be considered to be a
payment made under section 102(a).
``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND
``SEC. 201. DEFINITIONS.
``In this title:
``(1) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received
under section 102 in accordance with this title.
``(2) Project funds.--The term `project funds' means all
funds an eligible county elects under section 102(d) to
reserve for expenditure in accordance with this title.
``(3) Resource advisory committee.--The term `resource
advisory committee' means--
``(A) an advisory committee established by the Secretary
concerned under section 205; or
``(B) an advisory committee determined by the Secretary
concerned to meet the requirements of section 205.
``(4) Resource management plan.--The term `resource
management plan' means--
``(A) a land use plan prepared by the Bureau of Land
Management for units of the Federal land described in section
3(7)(B) pursuant to section 202 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1712); or
``(B) a land and resource management plan prepared by the
Forest Service for units of the National Forest System
pursuant to section 6 of the Forest and Rangeland Renewable
Resources Planning Act of 1974l (16 U.S.C. 1604).
``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.
``(a) Limitation.--Project funds shall be expended solely
on projects that meet the requirements of this title.
``(b) Authorized Uses.--Project funds may be used by the
Secretary concerned for the purpose of entering into and
implementing cooperative agreements with willing Federal
agencies, State and local governments, private and nonprofit
entities, and landowners for protection, restoration, and
enhancement of fish and wildlife habitat, and other resource
objectives consistent with the purposes of this Act on
Federal land and on non-Federal land where projects would
benefit the resources on Federal land.
``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.
``(a) Submission of Project Proposals to Secretary
Concerned.--
``(1) Projects funded using project funds.--Not later than
September 30 for fiscal year 2007, and each September 30
thereafter for each succeeding fiscal year through fiscal
year 2011, each resource advisory committee shall submit to
the Secretary concerned a description of any projects that
the resource advisory committee proposes the Secretary
undertake using any project funds reserved by eligible
counties in the area in which the resource advisory committee
has geographic jurisdiction.
``(2) Projects funded using other funds.--A resource
advisory committee may submit to the Secretary concerned a
description of any projects that the committee proposes the
Secretary undertake using funds from State or local
governments, or from the private sector, other than project
funds and funds appropriated and otherwise available to do
similar work.
``(3) Joint projects.--Participating counties or other
persons may propose to pool project funds or other funds,
described in paragraph (2), and jointly propose a project or
group of projects to a resource advisory committee
established under section 205.
``(b) Required Description of Projects.--In submitting
proposed projects to the Secretary concerned under subsection
(a), a resource advisory committee shall include in the
description of each proposed project the following
information:
``(1) The purpose of the project and a description of how
the project will meet the purposes of this title.
``(2) The anticipated duration of the project.
``(3) The anticipated cost of the project.
``(4) The proposed source of funding for the project,
whether project funds or other funds.
``(5)(A) Expected outcomes, including how the project will
meet or exceed desired ecological conditions, maintenance
objectives, or stewardship objectives.
``(B) An estimate of the amount of any timber, forage, and
other commodities and other economic activity, including jobs
generated, if any, anticipated as part of the project.
``(6) A detailed monitoring plan, including funding needs
and sources, that--
``(A) tracks and identifies the positive or negative
impacts of the project, implementation, and provides for
validation monitoring; and
``(B) includes an assessment of the following:
``(i) Whether or not the project met or exceeded desired
ecological conditions; created local employment or training
opportunities, including summer youth jobs programs such as
the Youth Conservation Corps where appropriate.
``(ii) Whether the project improved the use of, or added
value to, any products removed from land consistent with the
purposes of this title.
``(7) An assessment that the project is to be in the public
interest.
``(c) Authorized Projects.--Projects proposed under
subsection (a) shall be consistent with section 2.
``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY
CONCERNED.
``(a) Conditions for Approval of Proposed Project.--The
Secretary concerned may make a decision to approve a project
submitted by a resource advisory committee under section 203
only if the proposed project satisfies each of the following
conditions:
``(1) The project complies with all applicable Federal laws
(including regulations).
``(2) The project is consistent with the applicable
resource management plan and with any watershed or subsequent
plan developed pursuant to the resource management plan and
approved by the Secretary concerned.
``(3) The project has been approved by the resource
advisory committee in accordance with section 205, including
the procedures issued under subsection (e) of that section.
``(4) A project description has been submitted by the
resource advisory committee to the Secretary concerned in
accordance with section 203.
``(5) The project will improve the maintenance of existing
infrastructure, implement stewardship objectives that enhance
forest ecosystems, and restore and improve land health and
water quality.
``(b) Environmental Reviews.--
``(1) Request for payment by county.--The Secretary
concerned may request the resource advisory committee
submitting a proposed project to agree to the use of project
funds to pay for any environmental review, consultation, or
compliance with applicable environmental laws required in
connection with the project.
``(2) Conduct of environmental review.--If a payment is
requested under paragraph (1) and the resource advisory
committee agrees to the expenditure of funds for this
purpose, the Secretary concerned shall conduct environmental
review, consultation, or other compliance responsibilities in
accordance with Federal laws (including regulations).
``(3) Effect of refusal to pay.--
``(A) In general.--If a resource advisory committee does
not agree to the expenditure of funds under paragraph (1),
the project shall be deemed withdrawn from further
consideration by the Secretary concerned pursuant to this
title.
``(B) Effect of withdrawal.--A withdrawal under
subparagraph (A) shall be
[[Page S7958]]
deemed to be a rejection of the project for purposes of
section 207(c).
``(c) Decisions of Secretary Concerned.--
``(1) Rejection of projects.--
``(A) In general.--A decision by the Secretary concerned to
reject a proposed project shall be at the sole discretion of
the Secretary concerned.
``(B) No administrative appeal or judicial review.--
Notwithstanding any other provision of law, a decision by the
Secretary concerned to reject a proposed project shall not be
subject to administrative appeal or judicial review.
``(C) Notice of rejection.--Not later than 30 days after
the date on which the Secretary concerned makes the rejection
decision, the Secretary concerned shall notify in writing the
resource advisory committee that submitted the proposed
project of the rejection and the reasons for rejection.
``(2) Notice of project approval.--The Secretary concerned
shall publish in the Federal Register notice of each project
approved under subsection (a) if the notice would be required
had the project originated with the Secretary.
``(d) Source and Conduct of Project.--Once the Secretary
concerned accepts a project for review under section 203, the
acceptance shall be deemed a Federal action for all purposes.
``(e) Implementation of Approved Projects.--
``(1) Cooperation.--Notwithstanding chapter 63 of title 31,
United States Code, using project funds the Secretary
concerned may enter into contracts, grants, and cooperative
agreements with States and local governments, private and
nonprofit entities, and landowners and other persons to
assist the Secretary in carrying out an approved project.
``(2) Best value contracting.--
``(A) In general.--For any project involving a contract
authorized by paragraph (1) the Secretary concerned may elect
a source for performance of the contract on a best value
basis.
``(B) Factors.--The Secretary concerned shall determine
best value based on such factors as--
``(i) the technical demands and complexity of the work to
be done;
``(ii)(I) the ecological objectives of the project; and
``(II) the sensitivity of the resources being treated;
``(iii) the past experience by the contractor with the type
of work being done, using the type of equipment proposed for
the project, and meeting or exceeding desired ecological
conditions; and
``(iv) the commitment of the contractor to hiring highly
qualified workers and local residents.
``(3) Merchantable timber contracting pilot program.--
``(A) Establishment.--The Secretary concerned shall
establish a pilot program to implement a certain percentage
of approved projects involving the sale of merchantable
timber using separate contracts for--
``(i) the harvesting or collection of merchantable timber;
and
``(ii) the sale of the timber.
``(B) Annual percentages.--Under the pilot program, the
Secretary concerned shall ensure that, on a nationwide basis,
not less than the following percentage of all approved
projects involving the sale of merchantable timber are
implemented using separate contracts:
``(i) For fiscal year 2007, 25 percent.
``(ii) For fiscal year 2008, 35 percent.
``(iii) For fiscal year 2009, 45 percent.
``(iv) For each of fiscal years 2010 and 2011, 50 percent.
``(C) Inclusion in pilot program.--The decision whether to
use separate contracts to implement a project involving the
sale of merchantable timber shall be made by the Secretary
concerned after the approval of the project under this title.
``(D) Assistance.--
``(i) In general.--The Secretary concerned may use funds
from any appropriated account available to the Secretary for
the Federal land to assist in the administration of projects
conducted under the pilot program.
``(ii) Maximum amount of assistance.--The total amount
obligated under this subparagraph may not exceed $1,000,000
for any fiscal year during which the pilot program is in
effect.
``(E) Review and report.--
``(i) Initial report.--Not later than September 30, 2009,
the Comptroller General shall submit to the Committees on
Agriculture, Nutrition, and Forestry and Energy and Natural
Resources of the Senate and the Committees on Agriculture and
Natural Resources of the House of Representatives a report
assessing the pilot program.
``(ii) Annual report.--The Secretary concerned shall submit
to the Committees on Agriculture, Nutrition, and Forestry and
Energy and Natural Resources of the Senate and the Committees
on Agriculture and Natural Resources of the House of
Representatives an annual report describing the results of
the pilot program.
``(f) Requirements for Project Funds.--The Secretary shall
ensure that at least 50 percent of all project funds be used
for projects that are primarily dedicated--
``(1) to road maintenance, decommissioning, or
obliteration; or
``(2) to restoration of streams and watersheds.
``SEC. 205. RESOURCE ADVISORY COMMITTEES.
``(a) Establishment and Purpose of Resource Advisory
Committees.--
``(1) Establishment.--The Secretary concerned shall
establish and maintain resource advisory committees to
perform the duties in subsection (b), except as provided in
paragraph (4).
``(2) Purpose.--The purpose of a resource advisory
committee shall be--
``(A) to improve collaborative relationships; and
``(B) to provide advice and recommendations to the land
management agencies consistent with the purposes of this
title.
``(3) Access to resource advisory committees.--To ensure
that each unit of Federal land has access to a resource
advisory committee, and that there is sufficient interest in
participation on a committee to ensure that membership can be
balanced in terms of the points of view represented and the
functions to be performed, the Secretary concerned may,
establish resource advisory committees for part of, or 1 or
more, units of Federal land.
``(4) Existing advisory committees.--
``(A) In general.--An advisory committee that meets the
requirements of this section, a resource advisory committee
established before September 29, 2006, or an advisory
committee determined by the Secretary concerned before
September 29, 2006, to meet the requirements of this section
may be deemed by the Secretary concerned to be a resource
advisory committee for the purposes of this title.
``(B) Charter.--A charter for a committee described in
subparagraph (A) that was filed on or before September 29,
2006, shall be considered to be filed for purposes of this
Act.
``(C) Bureau of land management advisory committees.--The
Secretary of the Interior may deem a resource advisory
committee meeting the requirements of subpart 1784 of part
1780 of title 43, Code of Federal Regulations, as a resource
advisory committee for the purposes of this title.
``(b) Duties.--A resource advisory committee shall--
``(1) review projects proposed under this title by
participating counties and other persons;
``(2) propose projects and funding to the Secretary
concerned under section 203;
``(3) provide early and continuous coordination with
appropriate land management agency officials in recommending
projects consistent with purposes of this Act under this
title;
``(4) provide frequent opportunities for citizens,
organizations, tribes, land management agencies, and other
interested parties to participate openly and meaningfully,
beginning at the early stages of the project development
process under this title;
``(5)(A) monitor projects that have been approved under
section 204; and
``(B) advise the designated Federal official on the
progress of the monitoring efforts under subparagraph (A);
and
``(6) make recommendations to the Secretary concerned for
any appropriate changes or adjustments to the projects being
monitored by the resource advisory committee.
``(c) Appointment by the Secretary.--
``(1) Appointment and term.--
``(A) In general.--The Secretary concerned, shall appoint
the members of resource advisory committees for a term of 4
years beginning on the date of appointment.
``(B) Reappointment.--The Secretary concerned may reappoint
members to subsequent 4-year terms.
``(2) Basic requirements.--The Secretary concerned shall
ensure that each resource advisory committee established
meets the requirements of subsection (d).
``(3) Initial appointment.--Not later than 180 days after
the date of the enactment of this Act, the Secretary
concerned shall make initial appointments to the resource
advisory committees.
``(4) Vacancies.--The Secretary concerned shall make
appointments to fill vacancies on any resource advisory
committee as soon as practicable after the vacancy has
occurred.
``(5) Compensation.--Members of the resource advisory
committees shall not receive any compensation.
``(d) Composition of Advisory Committee.--
``(1) Number.--Each resource advisory committee shall be
comprised of 15 members.
``(2) Community interests represented.--Committee members
shall be representative of the interests of the following 3
categories:
``(A) 5 persons that--
``(i) represent organized labor or non-timber forest
product harvester groups;
``(ii) represent developed outdoor recreation, off highway
vehicle users, or commercial recreation activities;
``(iii) represent--
``(I) energy and mineral development interests; or
``(II) commercial or recreational fishing interests;
``(iv) represent the commercial timber industry; or
``(v) hold Federal grazing or other land use permits, or
represent nonindustrial private forest land owners, within
the area for which the committee is organized.
``(B) 5 persons that represent--
``(i) nationally recognized environmental organizations;
``(ii) regionally or locally recognized environmental
organizations;
``(iii) dispersed recreational activities;
``(iv) archaeological and historical interests; or
[[Page S7959]]
``(v) nationally or regionally recognized wild horse and
burro interest groups, wildlife or hunting organizations, or
watershed associations.
``(C) 5 persons that--
``(i) hold State elected office (or a designee);
``(ii) hold county or local elected office;
``(iii) represent American Indian tribes within or adjacent
to the area for which the committee is organized;
``(iv) are school officials or teachers; or
``(v) represent the affected public at large.
``(3) Balanced representation.--In appointing committee
members from the 3 categories in paragraph (2), the Secretary
concerned shall provide for balanced and broad representation
from within each category.
``(4) Geographic distribution.--The members of a resource
advisory committee shall reside within the State in which the
committee has jurisdiction and, to extent practicable, the
Secretary concerned shall ensure local representation in each
category in paragraph (2).
``(5) Chairperson.--A majority on each resource advisory
committee shall select the chairperson of the committee.
``(e) Approval Procedures.--
``(1) In general.--Subject to paragraph (3), each resource
advisory committee shall establish procedures for proposing
projects to the Secretary concerned under this title.
``(2) Quorum.--A quorum must be present to constitute an
official meeting of the committee.
``(3) Approval by majority of members.--A project may be
proposed by a resource advisory committee to the Secretary
concerned under section 203(a), if the project has been
approved by a majority of members of the committee from each
of the 3 categories in subsection (d)(2).
``(f) Other Committee Authorities and Requirements.--
``(1) Staff assistance.--A resource advisory committee may
submit to the Secretary concerned a request for periodic
staff assistance from Federal employees under the
jurisdiction of the Secretary.
``(2) Meetings.--All meetings of a resource advisory
committee shall be announced at least 1 week in advance in a
local newspaper of record and shall be open to the public.
``(3) Records.--A resource advisory committee shall
maintain records of the meetings of the committee and make
the records available for public inspection.
``SEC. 206. USE OF PROJECT FUNDS.
``(a) Agreement Regarding Schedule and Cost of Project.--
``(1) Agreement between parties.--The Secretary concerned
may carry out a project submitted by a resource advisory
committee under section 203(a) using project funds or other
funds described in section 203(a)(2), if, as soon as
practicable after the issuance of a decision document for the
project and the exhaustion of all administrative appeals and
judicial review of the project decision, the Secretary
concerned and the resource advisory committee enter into an
agreement addressing, at a minimum, the following:
``(A) The schedule for completing the project.
``(B) The total cost of the project, including the level of
agency overhead to be assessed against the project.
``(C) For a multiyear project, the estimated cost of the
project for each of the fiscal years in which it will be
carried out.
``(D) The remedies for failure of the Secretary concerned
to comply with the terms of the agreement consistent with
current Federal law.
``(2) Limited use of federal funds.--The Secretary
concerned may decide, at the sole discretion of the Secretary
concerned, to cover the costs of a portion of an approved
project using Federal funds appropriated or otherwise
available to the Secretary for the same purposes as the
project.
``(b) Transfer of Project Funds.--
``(1) Initial transfer required.--As soon as practicable
after the agreement is reached under subsection (a) with
regard to a project to be funded in whole or in part using
project funds, or other funds described in section 203(a)(2),
the Secretary concerned shall transfer to the applicable unit
of National Forest System land or Bureau of Land Management
District an amount of project funds equal to--
``(A) in the case of a project to be completed in a single
fiscal year, the total amount specified in the agreement to
be paid using project funds, or other funds described in
section 203(a)(2); or
``(B) in the case of a multiyear project, the amount
specified in the agreement to be paid using project funds, or
other funds described in section 203(a)(2) for the first
fiscal year.
``(2) Condition on project commencement.--The unit of
National Forest System land or Bureau of Land Management
District concerned, shall not commence a project until the
project funds, or other funds described in section 203(a)(2)
required to be transferred under paragraph (1) for the
project, have been made available by the Secretary concerned.
``(3) Subsequent transfers for multiyear projects.--
``(A) In general.--For the second and subsequent fiscal
years of a multiyear project to be funded in whole or in part
using project funds, the unit of National Forest System land
or Bureau of Land Management District concerned shall use the
amount of project funds required to continue the project in
that fiscal year according to the agreement entered into
under subsection (a).
``(B) Suspension of work.--The Secretary concerned shall
suspend work on the project if the project funds required by
the agreement in the second and subsequent fiscal years are
not available.
``SEC. 207. AVAILABILITY OF PROJECT FUNDS.
``(a) Submission of Proposed Projects to Obligate Funds.--
By September 30 of each fiscal year through fiscal year 2011,
a resource advisory committee shall submit to the Secretary
concerned pursuant to section 203(a)(1) a sufficient number
of project proposals that, if approved, would result in the
obligation of at least the full amount of the project funds
reserved by the participating county in the preceding fiscal
year.
``(b) Use or Transfer of Unobligated Funds.--Subject to
section 208, if a resource advisory committee fails to comply
with subsection (a) for a fiscal year, any project funds
reserved by the participating county in the preceding fiscal
year and remaining unobligated shall be available for use as
part of the project submissions in the next fiscal year.
``(c) Effect of Rejection of Projects.--Subject to section
208, any project funds reserved by a participating county in
the preceding fiscal year that are unobligated at the end of
a fiscal year because the Secretary concerned has rejected
one or more proposed projects shall be available for use as
part of the project submissions in the next fiscal year.
``(d) Effect of Court Orders.--
``(1) In general.--If an approved project under this Act is
enjoined or prohibited by a Federal court, the Secretary
concerned shall return the unobligated project funds related
to the project to the participating county or counties that
reserved the funds.
``(2) Expenditure of funds.--The returned funds shall be
available for the county to expend in the same manner as the
funds reserved by the county under subparagraph (B) or (C)(i)
of section 102(d)(1).
``SEC. 208. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under
this title shall terminate on September 30, 2011.
``(b) Deposits in Treasury.--Any project funds not
obligated by September 30, 2012, shall be deposited in the
Treasury of the United States.
``TITLE III--COUNTY FUNDS
``SEC. 301. DEFINITIONS.
``In this title:
``(1) County funds.--The term `county funds' means all
funds an eligible county elects under section 102(d) to
reserve for expenditure in accordance with this title.
``(2) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received
under section 102 in accordance with this title.
``SEC. 302. USE.
``(a) Authorized Uses.--A participating county, including
any applicable agencies of the participating county, shall
use county funds, in accordance with this title, only--
``(1) to carry out activities under the Firewise
Communities program to provide to homeowners in fire-
sensitive ecosystems education on, and assistance with
implementing, techniques in home siting, home construction,
and home landscaping that can increase the protection of
people and property from wildfires;
``(2) to reimburse the participating county for search and
rescue and other emergency services, including firefighting,
that are--
``(A) performed on Federal land after the date on which the
use was approved under subsection (b);
``(B) paid for by the participating county; and
``(3) to develop community wildfire protection plans in
coordination with the appropriate Secretary concerned.
``(b) Proposals.--A participating county shall use county
funds for a use described in subsection (a) only after a 45-
day public comment period, at the beginning of which the
participating county shall--
``(1) publish in any publications of local record a
proposal that describes the proposed use of the county funds;
and
``(2) submit the proposal to any resource advisory
committee established under section 205 for the participating
county.
``SEC. 303. CERTIFICATION.
``(a) In General.--Not later than February 1 of the year
after the year in which any county funds were expended by a
participating county, the appropriate official of the
participating county shall submit to the Secretary concerned
a certification that the county funds expended in the
applicable year have been used for the uses authorized under
section 302(a), including a description of the amounts
expended and the uses for which the amounts were expended.
``(b) Review.--The Secretary concerned shall review the
certifications submitted under subsection (a) as the
Secretary concerned determines to be appropriate.
``SEC. 304. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under
this title terminates on September 30, 2011.
``(b) Availability.--Any county funds not obligated by
September 30, 2012, shall be returned to the Treasury of the
United States.
``TITLE IV--MISCELLANEOUS PROVISIONS
``SEC. 401. REGULATIONS.
``The Secretary of Agriculture and the Secretary of the
Interior shall issue regulations to carry out the purposes of
this Act.
[[Page S7960]]
``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are
necessary to carry out this Act for each of fiscal years 2007
through 2011.
``SEC. 403. TREATMENT OF FUNDS AND REVENUES.
``(a) Relation to Other Appropriations.--Funds made
available under section 402 and funds made available to a
Secretary concerned under section 206 shall be in addition to
any other annual appropriations for the Forest Service and
the Bureau of Land Management.
``(b) Deposit of Revenues and Other Funds.--All revenues
generated from projects pursuant to title II, including any
interest accrued from the revenues, shall be deposited in the
Treasury of the United States.''.
(b) Forest Receipt Payments to Eligible States and
Counties.--
(1) Act of may 23, 1908.--The sixth paragraph under the
heading ``forest service'' in the Act of May 23, 1908 (16
U.S.C. 500) is amended in the first sentence by striking
``twenty-five percentum'' and all that follows through
``shall be paid'' and inserting the following: ``an amount
equal to the annual average of 25 percent of all amounts
received for the applicable fiscal year and each of the
preceding 6 fiscal years from each national forest shall be
paid''.
(2) Weeks law.--Section 13 of the Act of March 1, 1911
(commonly known as the ``Weeks Law'') (16 U.S.C. 500) is
amended in the first sentence by striking ``twenty-five
percentum'' and all that follows through ``shall be paid''
and inserting the following: ``an amount equal to the annual
average of 25 percent of all amounts received for the
applicable fiscal year and each of the preceding 6 fiscal
years from each national forest shall be paid''.
(c) Payments in Lieu of Taxes.--
(1) In general.--Section 6906 of title 31, United States
Code, is amended to read as follows:
``Sec. 6906. Funding
``For each of fiscal years 2008 through 2012--
``(1) each county or other eligible unit of local
government shall be entitled to payment under this chapter;
and
``(2) sums shall be made available to the Secretary of the
Interior for obligation or expenditure in accordance with
this chapter.''.
(2) Conforming amendment.--The table of sections for
chapter 69 of title 31, United States Code, is amended by
striking the item relating to section 6906 and inserting the
following:
``6906. Funding.''.
(3) Budget scorekeeping.--
(A) In general.--Notwithstanding the Budget Scorekeeping
Guidelines and the accompanying list of programs and accounts
set forth in the joint explanatory statement of the committee
of conference accompanying Conference Report 105-217, the
amendment made by paragraph (1) shall be treated in the
baseline for purposes of section 257 of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C. 907) (as
in effect before September 30, 2002), by the Chairpersons of
the Committee on the Budget of the House of Representatives
and the Committee on the Budget of the Senate, as
appropriate, for purposes of budget enforcement in the House
of Representatives and the Senate, and under the
Congressional Budget Act of 1974 (2 U.S.C. 601 et seq.) as if
Payment in Lieu of Taxes (14-1114-0-1-806) were an account
designated as Appropriated Entitlements and Mandatories for
Fiscal Year 1997 in the joint explanatory statement of the
committee of conference accompanying Conference Report 105-
217.
(B) Effective date.--This paragraph shall--
(i) be effective beginning on the date of enactment of this
Act; and
(ii) remain in effect for any fiscal year for which the
entitlement in section 6906 of title 31, United States Code
(as amended by paragraph (1)), applies.
______
SA 1705. Mr. KERRY (for himself, Ms. Cantwell, and Mr. Tester)
submitted an amendment intended to be proposed to amendment SA 1502
proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's
dependency on foreign oil by investing in clean, renewable, and
alternative energy resources, promoting new emerging energy
technologies, developing greater efficiency, and creating a Strategic
Energy Efficiency and Renewables Reserve to invest in alternative
energy, and for other purposes; which was ordered to lie on the table;
as follows:
On page 177, after line 21, insert the following:
SEC. 279. SMALL BUSINESS EMERGENCY FUEL ASSISTANCE.
(a) Short Title.--This section may be cited as the ``Small
Business Emergency Fuel Assistance Act of 2007''.
(b) Emergency Fuel Assistance Program.--There is
established within the Economic Development Administration of
the Department of Commerce, an emergency assistance program
for small businesses dependent on fuel.
(c) Declaration of Fuel Emergency.--
(1) By the secretary.--The Secretary of Commerce may
declare a severe fuel supply interruption for small
businesses if--
(A) the retail price of gasoline in the United States is at
least 60 percent higher than the 5-year rolling average
retail price for 2 consecutive weeks; and
(B) the price differential continues to increase during the
most recent week for which price information is available.
(2) By a governor.--If the Secretary does not declare a
fuel emergency during a period that meets the criteria
described in paragraph (1)--
(A) a Governor may certify that small businesses in the
State have incurred economic injury as a result of a fuel
interruption in the State;
(B) a Governor may request financial assistance through the
program established under this section; and
(C) the Secretary shall provide the Governor with a written
determination not later than 30 days after receiving a
request under subparagraph (B).
(d) Grants Authorized.--
(1) In general.--The Secretary of Commerce is authorized to
award grants to States under a declaration of fuel supply
interruption in accordance with this section.
(2) In general.--Subject to paragraph (3), the Secretary
shall award grants to States, in accordance with an
allocation formula established by the Secretary based on the
pro rata share of each State of the total need among all
States, as applicable, for emergency assistance for fuel
interruption, as determined on the basis of--
(A) the number and percentage of qualifying small
businesses operating within the State;
(B) the increase in the retail price of fuel in the State;
and
(C) such other factors as the Secretary determines to be
appropriate.
(3) Allocation plan.--Each State shall establish, after
giving notice to the public, an opportunity for public
comment, and consideration of public comments received, an
allocation plan for the distribution of financial assistance
received under this subsection, which shall be submitted to
the Secretary, shall be made available to the public by the
State, and shall include--
(A) application requirements for qualifying small
businesses seeking to receive assistance under this
subsection, including a requirement that each application
include--
(i) demonstration of need for assistance under this
subsection;
(ii) a plan to decrease the total commercial energy usage
of the small business through energy efficiency measures,
such as those promoted through the Energy Star Program; and
(iii) if a small business has previously received
assistance under this subsection, evidence that the small
business has implemented the plan previously documented under
clause (ii); and
(B) factors for selecting among small businesses that meet
the application requirements, with preference given to
applicants based on the percentage of operating costs
expended on fuel.
(e) Eligibility.--A small business is eligible for a grant
under this section if--
(1) the average gross receipts of the small business for
the 3 preceding taxable years does not exceed $5,000,000; or
(2) the small business employed an average of more than 1
and fewer than 50 qualified employees on business days during
the preceding taxable year.
(f) Defined Term.--In this section, the term ``aggregate
gross assets'' has the meaning given such term in section
1202(d)(2) of the Internal Revenue Code of 1986.
(g) Authorization of Appropriations.--There are authorized
to be appropriated to the Department of Commerce $100,000,000
for each of the fiscal years 2008 through 2012 to carry out
this section.
______
SA 1706. Mr. KERRY (for himself and Ms. Snowe) submitted an amendment
intended to be proposed to amendment SA 1502 proposed by Mr. Reid to
the bill H.R. 6, to reduce our Nation's dependency on foreign oil by
investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
On page 161, between lines 2 and 3, insert the following:
SEC. 269. SMALL BUSINESS ENERGY EFFICIENCY.
(a) Definitions.--In this section--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``association'' means the association of small
business development centers established under section
21(a)(3)(A) of the Small Business Act (15 U.S.C.
648(a)(3)(A));
(3) the term ``disability'' has the meaning given that term
in section 3 of the Americans with Disabilities Act of 1990
(42 U.S.C. 12102);
(4) the term ``electric utility'' has the meaning given
that term in section 3 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2602);
(5) the term ``on-bill financing'' means a low interest or
no interest financing agreement between a small business
concern and
[[Page S7961]]
an electric utility for the purchase or installation of
equipment, under which the regularly scheduled payment of
that small business concern to that electric utility is not
reduced by the amount of the reduction in cost attributable
to the new equipment and that amount is credited to the
electric utility, until the cost of the purchase or
installation is repaid;
(6) the term ``small business concern'' has the meaning
given that term in section 3 of the Small Business Act (15
U.S.C. 636);
(7) the term ``small business development center'' means a
small business development center described in section 21 of
the Small Business Act (15 U.S.C. 648);
(8) the term ``telecommuting'' means the use of
telecommunications to perform work functions under
circumstances which reduce or eliminate the need to commute;
and
(9) the term ``veteran'' has the meaning given that term in
section 101 of title 38, United States Code.
(b) Implementation of Small Business Energy Efficiency
Program.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall promulgate
final rules establishing the Government-wide program
authorized under subsection (d) of section 337 of the Energy
Policy and Conservation Act (42 U.S.C. 6307) that ensure
compliance with that subsection by not later than 6 months
after such date of enactment.
(2) Plan.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall publish a
detailed plan regarding how the Administrator will--
(A) assist small business concerns in becoming more energy
efficient; and
(B) build on the Energy Star for Small Business Program of
the Department of Energy and the Environmental Protection
Agency.
(3) Assistant administrator for small business energy
policy.--
(A) In general.--There is in the Administration an
Assistant Administrator for Small Business Energy Policy, who
shall be appointed by, and report to, the Administrator.
(B) Duties.--The Assistant Administrator for Small Business
Energy Policy shall--
(i) oversee and administer the requirements under this
subsection and section 337(d) of the Energy Policy and
Conservation Act (42 U.S.C. 6307(d)); and
(ii) promote energy efficiency efforts for small business
concerns and reduce energy costs of small business concerns.
(4) Reports.--The Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives an annual report on the progress of the
Administrator in encouraging small business concerns to
become more energy efficient, including data on the rate of
use of the Small Business Energy Clearinghouse established
under section 337(d)(4) of the Energy Policy and Conservation
Act (42 U.S.C. 6307(d)(4)).
(c) Small Business Energy Efficiency.--
(1) Authority.--The Administrator shall establish a Small
Business Energy Efficiency Pilot Program (in this subsection
referred to as the ``Efficiency Pilot Program'') to provide
energy efficiency assistance to small business concerns
through small business development centers.
(2) Small business development centers.--
(A) In general.--In carrying out the Efficiency Pilot
Program, the Administrator shall enter into agreements with
small business development centers under which such centers
shall--
(i) provide access to information and resources on energy
efficiency practices, including on-bill financing options;
(ii) conduct training and educational activities;
(iii) offer confidential, free, one-on-one, in-depth energy
audits to the owners and operators of small business concerns
regarding energy efficiency practices;
(iv) give referrals to certified professionals and other
providers of energy efficiency assistance who meet such
standards for educational, technical, and professional
competency as the Administrator shall establish; and
(v) act as a facilitator between small business concerns,
electric utilities, lenders, and the Administration to
facilitate on-bill financing arrangements.
(B) Reports.--Each small business development center
participating in the Efficiency Pilot Program shall submit to
the Administrator and the Administrator of the Environmental
Protection Agency an annual report that includes--
(i) a summary of the energy efficiency assistance provided
by that center under the Efficiency Pilot Program;
(ii) the number of small business concerns assisted by that
center under the Efficiency Pilot Program;
(iii) statistics on the total amount of energy saved as a
result of assistance provided by that center under the
Efficiency Pilot Program; and
(iv) any additional information determined necessary by the
Administrator, in consultation with the association.
(C) Reports to congress.--Not later than 60 days after the
date on which all reports under subparagraph (B) relating to
a year are submitted, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives a report summarizing the information
regarding the Efficiency Pilot Program submitted by small
business development centers participating in that program.
(3) Eligibility.--A small business development center shall
be eligible to participate in the Efficiency Pilot Program
only if that center is certified under section 21(k)(2) of
the Small Business Act (15 U.S.C. 648(k)(2)).
(4) Selection of participating state programs.--
(A) Groupings.--
(i) Selection of programs.--The Administrator shall select
the small business development center programs of 2 States
from each of the groupings of States described in clauses
(ii) through (xi) to participate in the pilot program
established under this subsection.
(ii) Group 1.--Group 1 shall consist of Maine,
Massachusetts, New Hampshire, Connecticut, Vermont, and Rhode
Island.
(iii) Group 2.--Group 2 shall consist of New York, New
Jersey, Puerto Rico, and the Virgin Islands.
(iv) Group 3.--Group 3 shall consist of Pennsylvania,
Maryland, West Virginia, Virginia, the District of Columbia,
and Delaware.
(v) Group 4.--Group 4 shall consist of Georgia, Alabama,
North Carolina, South Carolina, Mississippi, Florida,
Kentucky, and Tennessee.
(vi) Group 5.--Group 5 shall consist of Illinois, Ohio,
Michigan, Indiana, Wisconsin, and Minnesota.
(vii) Group 6.--Group 6 shall consist of Texas, New Mexico,
Arkansas, Oklahoma, and Louisiana.
(viii) Group 7.--Group 7 shall consist of Missouri, Iowa,
Nebraska, and Kansas.
(ix) Group 8.--Group 8 shall consist of Colorado, Wyoming,
North Dakota, South Dakota, Montana, and Utah.
(x) Group 9.--Group 9 shall consist of California, Guam,
American Samoa, Hawaii, Nevada, and Arizona.
(xi) Group 10.--Group 10 shall consist of Washington,
Alaska, Idaho, and Oregon.
(5) Matching requirement.--Subparagraphs (A) and (B) of
section 21(a)(4) of the Small Business Act (15 U.S.C.
648(a)(4)) shall apply to assistance made available under the
Efficiency Pilot Program.
(6) Grant amounts.--Each small business development center
selected to participate in the Efficiency Pilot Program under
paragraph (4) shall be eligible to receive a grant in an
amount equal to--
(A) not less than $100,000 in each fiscal year; and
(B) not more than $300,000 in each fiscal year.
(7) Evaluation and report.--The Comptroller General of the
United States shall--
(A) not later than 30 months after the date of disbursement
of the first grant under the Efficiency Pilot Program,
initiate an evaluation of that pilot program; and
(B) not later than 6 months after the date of the
initiation of the evaluation under subparagraph (A), submit
to the Administrator, the Committee on Small Business and
Entrepreneurship of the Senate, and the Committee on Small
Business of the House of Representatives, a report
containing--
(i) the results of the evaluation; and
(ii) any recommendations regarding whether the Efficiency
Pilot Program, with or without modification, should be
extended to include the participation of all small business
development centers.
(8) Guarantee.--The Administrator may guarantee the timely
payment of a loan made to a small business concern through an
on-bill financing agreement on such terms and conditions as
the Administrator shall establish through a formal rule
making, after providing notice and an opportunity for
comment.
(9) Authorization of appropriations.--
(A) In general.--There are authorized to be appropriated to
carry out this subsection--
(i) $5,000,000 for the first fiscal year beginning after
the date of enactment of this Act; and
(ii) $5,000,000 for each of the 3 fiscal years following
the fiscal year described in clause (i).
(B) Limitation on use of other funds.--The Administrator
may carry out the Efficiency Pilot Program only with amounts
appropriated in advance specifically to carry out this
subsection.
(10) Termination.--The authority under this subsection
shall terminate 4 years after the date of disbursement of the
first grant under the Efficiency Pilot Program.
(d) Small Business Telecommuting.--
(1) Pilot program.--
(A) In general.--In accordance with this subsection, the
Administrator shall conduct, in not more than 5 of the
regions of the Administration, a pilot program to provide
information regarding telecommuting to employers that are
small business concerns and to encourage such employers to
offer telecommuting options to employees (in this subsection
referred to as the ``Telecommuting Pilot Program'').
(B) Special outreach to individuals with disabilities.--In
carrying out the Telecommuting Pilot Program, the
Administrator shall make a concerted effort to provide
information to--
[[Page S7962]]
(i) small business concerns owned by or employing
individuals with disabilities, particularly veterans who are
individuals with disabilities;
(ii) Federal, State, and local agencies having knowledge
and expertise in assisting individuals with disabilities,
including veterans who are individuals with disabilities; and
(iii) any group or organization, the primary purpose of
which is to aid individuals with disabilities or veterans who
are individuals with disabilities.
(C) Permissible activities.--In carrying out the
Telecommuting Pilot Program, the Administrator may--
(i) produce educational materials and conduct presentations
designed to raise awareness in the small business community
of the benefits and the ease of telecommuting;
(ii) conduct outreach--
(I) to small business concerns that are considering
offering telecommuting options; and
(II) as provided in subparagraph (B); and
(iii) acquire telecommuting technologies and equipment to
be used for demonstration purposes.
(D) Selection of regions.--In determining which regions
will participate in the Telecommuting Pilot Program, the
Administrator shall give priority consideration to regions in
which Federal agencies and private-sector employers have
demonstrated a strong regional commitment to telecommuting.
(2) Report to congress.--Not later than 2 years after the
date on which funds are first appropriated to carry out this
subsection, the Administrator shall transmit to the Committee
on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives a
report containing the results of an evaluation of the
Telecommuting Pilot Program and any recommendations regarding
whether the pilot program, with or without modification,
should be extended to include the participation of all
regions of the Administration.
(3) Termination.--The Telecommuting Pilot Program shall
terminate 4 years after the date on which funds are first
appropriated to carry out this subsection.
(4) Authorization of appropriations.--There is authorized
to be appropriated to the Administration $5,000,000 to carry
out this subsection.
(e) Encouraging Innovation in Energy Efficiency.--Section 9
of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following:
``(z) Encouraging Innovation in Energy Efficiency.--
``(1) Federal agency energy-related priority.--In carrying
out its duties under this section to SBIR and STTR
solicitations by Federal agencies, the Administrator shall--
``(A) ensure that such agencies give high priority to small
business concerns that participate in or conduct energy
efficiency or renewable energy system research and
development projects; and
``(B) include in the annual report to Congress under
subsection (b)(7) a determination of whether the priority
described in subparagraph (A) is being carried out.
``(2) Consultation required.--The Administrator shall
consult with the heads of other Federal agencies and
departments in determining whether priority has been given to
small business concerns that participate in or conduct energy
efficiency or renewable energy system research and
development projects, as required by this section.
``(3) Guidelines.--The Administrator shall, as soon as is
practicable after the date of enactment of this subsection,
issue guidelines and directives to assist Federal agencies in
meeting the requirements of this section.
``(4) Definitions.--In this subsection--
``(A) the term `biomass'--
``(i) means any organic material that is available on a
renewable or recurring basis, including--
``(I) agricultural crops;
``(II) trees grown for energy production;
``(III) wood waste and wood residues;
``(IV) plants (including aquatic plants and grasses);
``(V) residues;
``(VI) fibers;
``(VII) animal wastes and other waste materials; and
``(VIII) fats, oils, and greases (including recycled fats,
oils, and greases); and
``(ii) does not include--
``(I) paper that is commonly recycled; or
``(II) unsegregated solid waste;
``(B) the term `energy efficiency project' means the
installation or upgrading of equipment that results in a
significant reduction in energy usage; and
``(C) the term `renewable energy system' means a system of
energy derived from--
``(i) a wind, solar, biomass (including biodiesel), or
geothermal source; or
``(ii) hydrogen derived from biomass or water using an
energy source described in clause (i).''.
______
SA 1707. Mr. KERRY submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy techniques, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
TITLE __--ENERGY EMERGENCIES
SEC. _01. FINDINGS.
Congress finds that--
(1) a significant number of small business concerns in the
United States, including nonfarm and agricultural producers,
use heating oil, natural gas, propane, or kerosene to heat
their facilities and for other purposes;
(2) a significant number of small business concerns in the
United States sell, distribute, market, or otherwise engage
in commerce directly related to heating oil, natural gas,
propane, and kerosene; and
(3) significant increases in the price of heating oil,
natural gas, propane, or kerosene--
(A) disproportionately harm small business concerns
dependent on those fuels or that use, sell, or distribute
those fuels in the ordinary course of their business, and can
cause them substantial economic injury;
(B) can negatively affect the national economy and regional
economies;
(C) occurred during the winters of 1983 to 1984, 1988 to
1989, 1996 to 1997, 1999 to 2000, 2000 to 2001, and 2004 to
2005; and
(D) can be caused by a host of factors, including
international conflicts, global or regional supply
difficulties, weather conditions, insufficient inventories,
refinery capacity, transportation, and competitive structures
in the markets, causes that are often unforeseeable to, and
beyond the control of, those who own and operate small
business concerns.
SEC. _02. SMALL BUSINESS ENERGY EMERGENCY DISASTER LOAN
PROGRAM.
(a) In General.--Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting after paragraph (3)
the following:
``(4) Energy emergencies.--
``(A) Definitions.--In this paragraph--
``(i) the term `base price index' means the moving average
of the closing unit price on the New York Mercantile Exchange
for heating oil, natural gas, or propane for the 10 days, in
each of the most recent 2 preceding years, which correspond
to the trading days described in clause (ii);
``(ii) the term `current price index' means the moving
average of the closing unit price on the New York Mercantile
Exchange, for the 10 most recent trading days, for contracts
to purchase heating oil, natural gas, or propane during the
subsequent calendar month, commonly known as the `front
month';
``(iii) the term `heating fuel' means heating oil, natural
gas, propane, or kerosene; and
``(iv) the term `significant increase' means--
``(I) with respect to the price of heating oil, natural
gas, or propane, any time the current price index exceeds the
base price index by not less than 40 percent; and
``(II) with respect to the price of kerosene, any increase
which the Administrator, in consultation with the Secretary
of Energy, determines to be significant.
``(B) Authorization.--The Administration may make such
loans, either directly or in cooperation with banks or other
lending institutions through agreements to participate on an
immediate or deferred basis, to assist a small business
concern that has suffered or that is likely to suffer
substantial economic injury as the result of a significant
increase in the price of heating fuel occurring on or after
October 1, 2004.
``(C) Interest rate.--Any loan or guarantee extended under
this paragraph shall be made at the same interest rate as
economic injury loans under paragraph (2).
``(D) Maximum amount.--No loan may be made under this
paragraph, either directly or in cooperation with banks or
other lending institutions through agreements to participate
on an immediate or deferred basis, if the total amount
outstanding and committed to the borrower under this
subsection would exceed $1,500,000, unless such borrower
constitutes a major source of employment in its surrounding
area, as determined by the Administrator, in which case the
Administrator, in the discretion of the Administrator, may
waive the $1,500,000 limitation.
``(E) Declarations.--For purposes of assistance under this
paragraph--
``(i) a declaration of a disaster area based on conditions
specified in this paragraph shall be required, and shall be
made by the President or the Administrator; or
``(ii) if no declaration has been made under clause (i),
the Governor of a State in which a significant increase in
the price of heating fuel has occurred may certify to the
Administration that small business concerns have suffered
economic injury as a result of such increase and are in need
of financial assistance which is not otherwise available on
reasonable terms in that State, and upon receipt of such
certification, the Administration may make such loans as
would have been available under this paragraph if a disaster
declaration had been issued.
``(F) Use of funds.--Notwithstanding any other provision of
law, loans made under this paragraph may be used by a small
business concern described in subparagraph (B) to convert
from the use of heating fuel to a renewable or alternative
energy source, including agriculture and urban waste,
geothermal
[[Page S7963]]
energy, cogeneration, solar energy, wind energy, or fuel
cells.''.
(b) Conforming Amendments Relating to Heating Fuel.--
Section 3(k) of the Small Business Act (15 U.S.C. 632(k)) is
amended--
(1) by inserting ``, significant increases in the price of
heating fuel'' after ``civil disorders''; and
(2) by inserting ``other'' before ``economic''.
(c) Effective Period.--The amendments made by this section
shall apply during the 4-year period beginning on the date on
which guidelines are published by the Administrator of the
Small Business Administration under section _04.
SEC. _03. AGRICULTURAL PRODUCER EMERGENCY LOANS.
(a) In General.--Section 321(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1961(a)) is amended--
(1) in the first sentence--
(A) by striking ``operations have'' and inserting
``operations (i) have''; and
(B) by inserting before ``: Provided,'' the following: ``,
or (ii)(I) are owned or operated by such an applicant that is
also a small business concern (as defined in section 3 of the
Small Business Act (15 U.S.C. 632)), and (II) have suffered
or are likely to suffer substantial economic injury on or
after October 1, 2004, as the result of a significant
increase in energy costs or input costs from energy sources
occurring on or after October 1, 2004, in connection with an
energy emergency declared by the President or by the
Secretary'';
(2) in the third sentence, by inserting before the period
at the end the following: ``or by an energy emergency
declared by the President or by the Secretary''; and
(3) in the fourth sentence--
(A) by striking ``or natural disaster'' each place such
term appears and inserting ``, natural disaster, or energy
emergency'';
(B) by inserting ``or declaration'' after ``emergency
designation''; and
(C) by inserting ``or energy emergency'' after ``such
natural disaster''.
(b) Funding.--Funds available on the date of the enactment
of this Act for emergency loans under subtitle C of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et
seq.) shall be available to carry out the amendments made by
subsection (a) to meet the needs resulting from energy
emergencies.
(c) Effective Period.--The amendments made by this section
shall apply during the 4-year period beginning on the date on
which guidelines are published by the Secretary of
Agriculture under section _04.
SEC. _04. GUIDELINES AND RULEMAKING.
(a) Guidelines.--Not later than 30 days after the date of
the enactment of this Act, the Administrator of the Small
Business Administration and the Secretary of Agriculture
shall each issue such guidelines as the Administrator or the
Secretary, as applicable, determines to be necessary to carry
out this title and the amendments made by this title.
(b) Rulemaking.--Not later than 30 days after the date of
enactment of this Act, the Administrator, after consultation
with the Secretary of Energy, shall promulgate regulations
specifying the method for determining a significant increase
in the price of kerosene under section 7(b)(4)(A)(iv)(II) of
the Small Business Act, as added by section _02.
SEC. _05. REPORTS.
(a) Small Business Administration.--Not later than 12
months after the date on which the Administrator issues
guidelines under section _04, and annually thereafter until
the date that is 12 months after the end of the effective
period of section 7(b)(4) of the Small Business Act, as added
section _02, the Administrator shall submit to the Committee
on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives,
a report on the effectiveness of the assistance made
available under such section, including--
(1) the number of small business concerns that applied for
a loan under such section and the number of those that
received such loans;
(2) the dollar value of those loans;
(3) the States in which the small business concerns that
received such loans are located;
(4) the type of heating fuel or energy that caused the
significant increase in the cost for the participating small
business concerns; and
(5) recommendations for ways to improve the assistance
provided under such section, if any.
(b) Department of Agriculture.--
(1) In general.--Not later than 1 year after the date on
which the Secretary of Agriculture issues guidelines under
section _04, and annually thereafter until the date that is 1
year after the end of the effective period of the amendments
made to section 321(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)) by this title, the
Secretary shall submit a report to the committees listed in
paragraph (2) that--
(A) describes the effectiveness of the assistance made
available under section 321(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1961(a)); and
(B) contains recommendations for ways to improve the
assistance provided under such section 321(a), if any.
(2) Report recipients.--The report described in paragraph
(1) shall be submitted to--
(A) the Committee on Small Business and Entrepreneurship of
the Senate;
(B) the Committee on Agriculture, Nutrition, and Forestry
of the Senate;
(C) the Committee on Small Business of the House of
Representatives; and
(D) the Committee on Agriculture of the House of
Representatives.
______
SA 1708. Mr. TESTER (for himself, Mr. Coleman) submitted an amendment
intended to be proposed to amendment SA 1502 proposed by Mr. Reid to
the bill H.R. 6, to reduce our Nation's dependency on foreign oil by
investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:
On page 177, after line 21, add the following:
SEC. 279. ENERGY EFFICIENT SCHOOLS.
(a) Definitions.--In this section:
(1) Baseline energy efficiency standard.--The term
``baseline energy efficiency standard'' means--
(A) in the case of new construction of a building, the most
recent version of applicable provisions of the International
Energy Conservation Code; and
(B) in the case of renovation of a building, a standard to
be calculated based on a 3-year, weather-normalized average
for the building.
(2) High-performance school building.--The term ``high-
performance school building'' means a school building that
integrates and optimizes all major high-performance building
attributes, including energy and water efficiency, renewable
energy, indoor air quality, durability, lifecycle cost
performance, and occupant productivity.
(3) Renewable energy.--The term ``renewable energy''
means--
(A) energy produced using solar, wind, biomass, ocean,
geothermal, or hydroelectric energy; or
(B) heating and cooling from a ground source heat pump.
(4) School.--The term ``school'' means an accredited public
school that is--
(A) subject to the authority of a State education agency;
and
(B)(i) an elementary school or secondary school (as those
terms are defined in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801)); or
(ii) a BIA school (within the meaning of section
9101(26)(C) of that Act (20 U.S.C. 7801(26)(C))).
(5) State educational agency.--The term ``State educational
agency'' has the meaning given the term in section 9101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801)).
(6) State energy office.--The term ``State energy office''
means--
(A) the State agency that is responsible for developing
State energy conservation plans under section 362 of the
Energy Policy and Conservation Act (42 U.S.C. 6322); or
(B) if an agency described in subparagraph (A) does not
exist in a State, a State agency designated by the Governor
of the State.
(b) Establishment of Program.--There is established in the
Department of Energy a program, to be known as the ``High-
Performance Schools Program'', under which the Secretary may
provide grants to State energy offices to assist school
districts in the State--
(1) to improve the energy efficiency of, and use of
renewable energy in, school buildings;
(2) to educate students regarding--
(A) energy consumption in buildings; and
(B) the benefits of energy efficiency and renewable energy;
(3) to administer the program; and
(4) to promote participation in the program.
(c) Conditions of Receipt.--As a condition of receiving a
grant under this section, a State energy office shall agree
to use the grant only to provide assistance to school
districts in the State that demonstrate to the satisfaction
of the State energy office--
(1) financial need with respect to the construction of new
or renovated high-performance school buildings;
(2) a commitment to use the grant funds to develop high-
performance school buildings, in accordance with a plan that
the State energy office, in consultation with the State
educational agency, determines to be feasible and appropriate
to achieve the purposes for which the grant is provided;
(3) a commitment to educate students and the public
regarding the energy efficiency and renewable energy uses
relating to the program; and
(4) that the school district has conducted an energy audit
satisfactory to the State energy office of the baseline
energy consumption of the district.
(d) Administration.--
(1) Selection of projects.--In selecting school districts
to receive funds provided under this section, the Secretary
shall--
(A) give priority to States that carry out, or propose to
carry out, projects that--
(i) achieve maximum increases in energy efficiency; and
(ii) achieve maximum cost savings as a result of that
increased efficiency; and
[[Page S7964]]
(B) ensure geographical diversity of distribution of funds
throughout the United States, to the maximum extent
practicable.
(2) Use of grants by state energy offices.--A State energy
office may use a portion of a grant received under this
section--
(A) to evaluate compliance by school districts in the State
with the requirements of this section;
(B) to develop and conduct programs for school board
members, school personnel, architects, engineers, and other
interested persons to advance the concepts of high-
performance school buildings;
(C) to obtain technical services and assistance in planning
and designing high-performance school buildings;
(D) to collect and monitor data relating to high-
performance school building projects; or
(E) for promotional and marketing activities.
(e) Supplementing Grant Funds.--Each State energy office
that receives a grant under this section shall encourage each
school district provided funds by the State energy office to
supplement, to the maximum extent practicable, the funds
using funds from other sources in the implementation of the
plans of the school districts.
(f) Other Funds.--Of amounts made available to carry out
this section, the Secretary may reserve an amount equal to
the lesser of 10 percent of the amounts and $500,000 for a
fiscal year to provide assistance to State energy offices
with respect to the coordination and implementation of the
program under this section, including the development of
reference materials--
(1) to clarify and support the purposes of this section;
and
(2) to increase the quantity in the States of high-
performance school buildings.
(g) Report.--Not later than 3 years after the date on which
the Secretary provides the initial grant to a State energy
office pursuant to this section, the Secretary shall submit
to the Committee on Energy and Natural Resources of the
Senate and the Committee on Energy and Commerce of the House
of Representatives a report that describes, with respect to
each school that uses funds provided under this section--
(1) the projected quantity of energy savings of the school,
as compared to the baseline energy efficiency standard
applicable to a similar school that does not use--
(A) energy efficient technologies; or
(B) renewable energy;
(2) the projected amount of savings relating to reduced
operation and maintenance costs due to use by the school of--
(A) any energy efficiency technology; or
(B) renewable energy; and
(3) the level of participation of students and faculty
members of the school in each applicable energy efficiency
and renewable energy technology.
(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of fiscal years 2008 through 2012.
______
SA 1709. Mr. ENZI proposed an amendment to the bill S. 277, to modify
the boundaries of Grand Teton National Park to include certain land
within the GT Park Subdivision, and for other purposes; as follows:
Strike section 4 and insert the following:
SEC. 4. CRAIG THOMAS DISCOVERY AND VISITOR CENTER.
(a) Findings.--Congress finds that--
(1) Craig Thomas was raised on a ranch just outside of
Cody, Wyoming, near Yellowstone National Park and Grand Teton
National Park, where he--
(A) began a lifelong association with those parks; and
(B) developed a deep and abiding dedication to the values
of the public land of the United States;
(2) during his 18-year tenure in Congress, including
service in both the Senate and the House of Representatives,
Craig Thomas forged a distinguished legislative record on
issues as diverse as public land management, agriculture,
fiscal responsibility, and rural health care;
(3) as Chairman and Ranking Member of the National Parks
Subcommittee of the Committee on Energy and Natural Resources
of the Senate and a frequent visitor to many units of the
National Park System, including Yellowstone National Park and
Grand Teton National Park, Craig Thomas was a strong
proponent for ensuring that people of all ages and abilities
had a wide range of opportunities to learn more about the
natural and cultural heritage of the United States;
(4) Craig Thomas authored legislation to provide critical
funding and management reforms to protect units of the
National Park System into the 21st century, ensuring quality
visits to units of the National Park System and the
protection of natural and cultural resources;
(5) Craig Thomas strongly supported public-private
partnerships and collaboration between the National Park
Service and other organizations that foster new opportunities
for providing visitor services while encouraging greater
citizen involvement in the stewardship of units of the
National Park System;
(6) Craig Thomas was instrumental in obtaining the Federal
share for a public-private partnership with the Grand Teton
National Park Foundation and the Grand Teton Natural History
Association to construct a new discovery and visitor center
at Grand Teton National Park;
(7) on June 4, 2007, Craig Thomas passed away after
battling cancer for 7 months;
(8) Craig Thomas is survived by his wife, Susan, and
children, Patrick, Greg, Peter, and Lexie; and
(9) in memory of the distinguished career of service of
Craig Thomas to the people of the United States, the
dedication of Craig Thomas to units of the National Park
System, generally, and to Grand Teton National Park,
specifically, and the critical role of Craig Thomas in the
new discovery and visitor center at Grand Teton National
Park, the Grand Teton Discovery and Visitor Center should be
designated as the ``Craig Thomas Discovery and Visitor
Center''.
(b) The Craig Thomas Discovery and Visitor Center.--
(1) Designation.--The Grand Teton Discovery and Visitor
Center located in Moose, Wyoming, and scheduled for
completion in August 2007 shall be known and designated as
the ``Craig Thomas Discovery and Visitor Center''.
(2) Reference.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
Grand Teton Discovery and Visitor Center referred to in
paragraph (1) shall be deemed to be a reference to the
``Craig Thomas Discovery and Visitor Center''.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary
such sums as are necessary to carry out this Act.
______
SA 1710. Mr. FEINGOLD (for himself, Mr. Sanders, and Mr. Menendez)
submitted an amendment intended to be proposed to amendment SA 1502
proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's
dependency on foreign oil by investing in clean, renewable, and
alternative energy resources, promoting new emerging energy
technologies, developing greater efficiency, and creating a Strategic
Energy Efficiency and Renewables Reserve to invest in alternative
energy, and for other purposes; which was ordered to lie on the table;
as follows:
On page 166, strike lines 17 through 19, and insert the
following:
``(1) to reduce fossil fuel emissions created as a result
of activities within the boundaries of the States or units of
local government in an environmentally sustainable way that,
to the maximum extent practicable, maximizes benefits for
local and regional communities;
______
SA 1711. Mr. PRYOR (for himself, Mr. Bond, Mr. Levin, Mr. Voinovich,
Ms. Stabenow, and Mrs. McCaskill) submitted an amendment intended to be
proposed to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6,
to reduce our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 239, strike line 16 and all that follows through
page 277, line 5 and insert the following:
TITLE V--CORPORATE AVERAGE FUEL ECONOMY STANDARDS
SEC. 501. INCREASING THE EFFICIENCY OF AUTOMOBILES.
(a) Definitions.--In this section:
(1) Automobile.--The term ``automobile'' means, as defined
in regulations promulgated by the Administrator of the
Environmental Protection Agency that are in effect on the
date of the enactment of this Act--
(A) a light-duty truck; or
(B) a light-duty vehicle.
(2) Alternative fuel.--The term ``alternative fuel'' has
the meaning given the term in section 32901(a) of title 49,
United States Code.
(3) E85.--The term ``E85'' means a fuel blend containing 85
percent denatured ethanol and 15 percent gasoline by volume.
(4) Flexible fuel automobile.--The term ``flexible fuel
automobile'' means an automobile warrantied by the
manufacturer of the vehicle to operate on any combination of
gasoline, E85, and M85 or diesel fuel blends containing not
less than 20 percent non-petroleum based fuel alternatives.
(5) Hybrid motor vehicle.--The term ``hybrid motor
vehicle'' means a new qualified hybrid motor vehicle (as
defined in section 30B(d)(3) of the Internal Revenue Code of
1986) that achieves at least 125 percent of the model year
2002 city fuel economy.
(6) M85.--The term ``M85'' means a fuel blend containing 85
percent methanol and 15 percent gasoline by volume.
(7) Plug-in hybrid automobile.--The term ``plug-in hybrid
automobile'' means a hybrid automobile that--
(A) has an onboard, rechargeable storage device capable of
propelling the vehicle by electricity for at least 10 miles;
and
(B) achieves at least 125 percent of the model year 2002
city fuel economy.
(8) Qualified automobile.--The term ``qualified
automobile'' means--
(A) a new advanced lean burn technology motor vehicle (as
defined in section 30B(c)(3)
[[Page S7965]]
of the Internal Revenue Code of 1986) that achieves at least
125 percent of the model year 2002 city fuel economy;
(B) an alternative fueled automobile (as defined in section
32901(a) of title 49, United States Code);
(C) a flexible fuel automobile;
(D) a new qualified fuel cell motor vehicle (as defined in
section 30B(b)(3) of the Internal Revenue Code of 1986);
(E) a hybrid automobile;
(F) a plug-in hybrid automobile;
(G) an electric automobile;
(H) a hydrogen internal combustion engine automobile; and
(I) any other appropriate automobile that uses
substantially new technology and achieves at least 175
percent of the model year 2002 city fuel economy, as
determined by the Secretary of Transportation, by regulation.
(b) Requirements.--
(1) In general.--For each model year, the percentage of new
automobiles manufactured by a manufacturer for sale in the
United States that are qualified automobiles shall be not
less than the corresponding percentage in the following
table:
For model year: The percentage that are qualified
automobiles shall be not less than:
2012.........................................................20 percent
2013.........................................................30 percent
2014.........................................................40 percent
2015 and thereafter..........................................50 percent
(2) New technology.--Not less than 10 percent of the number
of qualified automobiles required to be manufactured by a
manufacturer for sale in the United States in each model year
after 2016 pursuant to paragraph (1), shall be--
(A) hybrid automobiles;
(B) plug-in hybrid automobiles;
(C) new advanced lean burn technology motor vehicles (as
defined in section 30B(c)(3) of the Internal Revenue Code of
1986);
(D) new qualified fuel cell motor vehicles (as defined in
section 30B(b)(3) of the Internal Revenue Code of 1986);
(E) electric automobiles; or
(F) any other appropriate automobile that uses
substantially new technology and achieves at least 175
percent of the model year 2002 combined fuel economy, as
determined by the Secretary of Transportation, by regulation.
(c) Qualified Automobile Credits.--
(1) In general.--The Secretary shall issue qualified
automobile production credits to manufacturers for
automobiles manufactured for model year 2012 and for each
subsequent model year, in accordance with this subsection.
(2) Effect of credit.--Each credit issued to a manufacturer
under this subsection shall reduce the qualified automobile
mandate requirement under subsection (b)(1) by 1 automobile
for the model year to which the credit applies.
(3) Rate of credit issuance.--For each qualified automobile
(except for automobiles described in subparagraphs (B) and
(C) of subsection (a)(8)) manufactured for model year 2012,
2013, 2014, 2015, or 2016, the manufacturer shall be issued--
(A) 1.25 qualified automobile production credits if the
combined fuel economy for such automobile is greater than 110
percent and less than 125 percent of the combined fuel
economy of the model year 2002 inertia weight class;
(B) 1.5 qualified automobile production credits if the
combined fuel economy for such automobile is at least 125
percent and less than 150 percent of the combined fuel
economy of the model year 2002 inertia weight class;
(C) 2.0 qualified automobile production credits if the
combined fuel economy for such automobile is at least 150
percent and less than 175 percent of the combined fuel
economy of the model year 2002 inertia weight class; and
(D) 3.0 qualified automobile production credits if the
combined fuel economy for such automobile is at least 175
percent of the combined fuel economy of the model year 2002
inertia weight class;
(4) Defined term.--For purposes of this paragraph, the term
``model year 2002 inertia weight class'' has the same meaning
as the term ``vehicle inertia weight class'' as defined in
Section 30B of the Internal Revenue Code of 1986.
(d) Rulemaking.--Not later than 1 year after the date of
the enactment of this Act, the Secretary of Transportation
shall promulgate regulations to carry out this section.
SEC. 502. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES.
(a) Increased Standards.--Section 32902 of title 49, United
States Code, is amended--
(1) by amending subsection (a) to read as follows:
``(a) Nonpassenger Automobiles.--
``(1) Annual prescription of average fuel economy
standards.--
``(A) In general.--Not later than 18 months before the
beginning of each model year, the Secretary of Transportation
shall prescribe by regulation average fuel economy standards
for nonpassenger automobiles manufactured by a manufacturer
in that model year.
``(B) Standards based on class.--The Secretary may
prescribe separate standards for different classes of
nonpassenger automobiles.
``(C) Standards based on vehicle attributes.--The Secretary
may prescribe such standards based on vehicle attributes
pursuant to subsection (j).
``(D) Minimum standard.--Each standard prescribed under
this paragraph shall be the maximum feasible average fuel
economy level that the Secretary determines the manufacturers
can achieve in that model year, consistent with subsection
(e).
``(2) Average fuel economy standard for model years 2012
through 2014.--Not later than April 1, 2010, the Secretary
shall establish average fuel economy standards for
nonpassenger automobiles for each of the model years 2012,
2013, and 2014. Each such standard shall be set at the
maximum feasible average fuel economy level that the
Secretary determines the manufacturers can achieve in each
such model year.
``(3) Average fuel economy standard for model year 2015.--
Not later than April 1, 2013, the Secretary shall establish
the average fuel economy standard for nonpassenger
automobiles for model year 2015--
``(A) at least 25.3 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(4) Average fuel economy standard for model years 2016
through 2019.--Not later than April 1, 2014, the Secretary
shall establish average fuel economy standards for
nonpassenger automobiles for each of the model years 2016,
2017, 2018, and 2019. Each such standard shall be set at the
maximum feasible average fuel economy level that the
Secretary determines the manufacturers can achieve in each
such model year.
``(5) Average fuel economy standard for model year 2020.--
Not later than April 1, 2018, the Secretary shall establish
the average fuel economy standard for nonpassenger
automobiles for model year 2020--
``(A) at least 27.7 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(6) Average fuel economy standard for model years 2021
through 2024.--Not later than April 1, 2019, the Secretary
shall establish average fuel economy standards for
nonpassenger automobiles for each of the model years 2021,
2022, 2023, and 2024. Each such standard shall be set at the
maximum feasible average fuel economy level that the
Secretary determines the manufacturers can achieve in each
such model year.
``(7) Average fuel economy standard for model years 2025
and thereafter.--Not later than April 1, 2023, the Secretary
shall establish the average fuel economy standard for
nonpassenger automobiles for model year 2025 and each
subsequent model year--
``(A) at least 30 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).''; and
(2) by amending subsection (b) to read as follows:
``(b) Passenger Automobiles.--
``(1) Annual prescription of average fuel economy
standards.--
``(A) In general.--Not later than 18 months before the
beginning of each model year after model year 2011, the
Secretary of Transportation shall prescribe by regulation
average fuel economy standards for passenger automobiles
manufactured by a manufacturer in that model year.
``(B) Authority for prescription of differing standards
based on class.--The Secretary may prescribe separate
standards for different classes of passenger automobiles.
``(C) Standards based on vehicle attributes.--The Secretary
may prescribe such standards based on vehicle attributes
pursuant to subsection (j).
``(D) Minimum standard.--Each standard prescribed under
this paragraph shall be the maximum feasible average fuel
economy level that the Secretary determines the manufacturers
can achieve in that model year, consistent with subsection
(e).
``(2) Average fuel economy standard for model year 2012.--
Not later than April 1, 2010, the Secretary shall establish
the average fuel economy standard for passenger automobiles
for model year 2012--
``(A) at least 29 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(3) Average fuel economy standard for model years 2013
through 2016.--Not later than April 1, 2011, the Secretary
shall establish average fuel economy standards for passenger
automobiles for each of the model years 2013, 2014, 2015, and
2016. Each such standard shall be set at the maximum feasible
average fuel economy level that the
[[Page S7966]]
Secretary determines the manufacturers can achieve in each
such model year.
``(4) Average fuel economy standard for model years 2017.--
Not later than April 1, 2015, the Secretary shall establish
the average fuel economy standard for passenger automobiles
for model year 2017--
``(A) at least 32.5 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(5) Average fuel economy standard for model years 2018
through 2021.--Not later than April 1, 2016, the Secretary
shall establish average fuel economy standards for passenger
automobiles for model years 2018, 2019, 2020, and 2021. Each
such standard shall be set at the maximum feasible average
fuel economy level that the Secretary determines the
manufacturers can achieve in each such model year.
``(6) Average fuel economy standard for model years 2022
and thereafter.--Not later than April 1, 2020, the Secretary
shall establish the average fuel economy standard for
passenger automobiles for model year 2022 and each subsequent
model year--
``(A) at least 36 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(7) Minimum for average fuel economy standards based on
vehicle attributes.--
``(A) In general.--Notwithstanding any other provision of
this section, for any model year in which the Secretary
prescribes average fuel economy standards for passenger
automobiles on the basis of vehicle attributes pursuant to
subsection (j), the average fuel economy standard for
passenger automobiles manufactured by a manufacturer in that
model year shall also provide for an alternative minimum
standard that shall apply only to a manufacturer's
domestically manufactured passenger automobiles, as
calculated under section 32904 as in effect on the day before
the date of the enactment of the Renewable Fuels, Consumer
Protection, and Energy Efficiency Act of 2007.
``(B) Alternative minimum standard.--The alternative
minimum standard referred to in subparagraph (A) shall be the
greater of--
``(i) 27.5 miles per gallon; or
``(ii) 92 percent of the average fuel economy projected by
the Secretary for the combined domestic and foreign fleets
manufactured for sale in the United States by all
manufacturers in that model year, which projection shall be
published in the Federal Register when the standard for that
model year is promulgated in accordance with this section.
``(C) Applicability.--The alternative minimum standard
under this paragraph shall apply to a manufacturer's
domestically manufactured passenger automobiles only if the
passenger automobile standard established on the basis of
vehicle attributes pursuant to subsection (j), excluding any
credits transferred by the manufacturer pursuant to
subsection (g) from other categories of automobiles described
in paragraph (5)(B), would allow that manufacturer to comply
with a less stringent passenger automobile standard than the
alternative minimum standard.''.
(b) Repeal of Authority to Amend Passenger Automobile Fuel
Economy Standards.--
(1) In general.--Section 32902 of title 49, United States
Code, is amended--
(A) by striking subsection (c); and
(B) by redesignating subsections (d) through (j) as
subsections (c) through (i), respectively.
(2) Conforming amendments.--
(A) Section 32901(a)(12) of such title is amended by
striking ``section 32902(d)'' and inserting ``section
32902(c)''.
(B) Section 32902 of such title is amended--
(i) in subsection (c)(1), as redesignated by paragraph
(1)(B), by striking ``under subsection (b) or (c)'' and
inserting ``under subsection (b)'';
(ii) in subsection (d)(2), as redesignated by paragraph
(1)(B), by striking ``under subsection (a), (b), (c), or
(d)'' and inserting ``under subsection (a), (b), or (c)'';
(iii) in subsection (f), as redesignated by paragraph
(1)(B)--
(I) in paragraph (1)--
(aa) by striking ``under subsection (a) or (d)'' and
inserting ``under subsection (a), (b), or (c)''; and
(bb) by striking ``of subsection (a) or (d)'' and inserting
``of subsection (a), (b), or (c)''; and
(II) in paragraph (2), by striking ``(and submit the
amendment to Congress when required under subsection (c)(2)
of this section)'';
(iv) in subsection (g), as redesignated by paragraph
(1)(B), by striking ``carrying out subsections (c), (f), and
(g)'' and inserting ``carrying out subsections (a), (b), (e),
and (f)''; and
(v) in subsection (i), as redesignated by paragraph (1)(B),
by striking ``under subsection (a), (c), or (g) of this
section'' and inserting ``under subsection (a), (b), or
(f)''.
(C) Section 32904(a)(1)(B) of such title is amended by
striking ``section 32902(b)-(d)'' and inserting ``subsections
(b) and (c) of section 32902''.
(D) Section 32907(a)(4) of such title is amended by
striking ``section 32902(d)'' and inserting ``section
32902(c)''.
(E) Section 32909(b) of such title is amended by striking
``, except that a petition for review'' and all that follows
through ``referred to in section 32902(c)(2)''.
(F) Section 32917(b)(1)(B) of such title is amended by
striking ``or (c)''.
(c) Authority of the Secretary to Prescribe Standards Based
on Vehicle Attributes.--Section 32902 of title 49, United
States Code, as amended by this section, is further amended
by adding at the end the following:
``(j) Authority of the Secretary to Prescribe Standards
Based on Vehicle Attributes.--
``(1) In general.--The authority of the Secretary of
Transportation to prescribe by regulation average fuel
economy standards for passenger automobiles and nonpassenger
automobiles includes the authority to prescribe standards
based on vehicle attributes related to fuel economy and to
express any such attribute-based standard in the form of a
mathematical function.
``(2) Transition period.--If the Secretary prescribes
standards for passenger automobiles on the basis of vehicle
attributes, the Secretary shall provide a transition period
during the first 3 model years in which an attribute-based
standard would apply during which each manufacturer may elect
whether to comply with the attribute-based standard or with
the single corporate average fuel economy level prescribed
under subsection (b).
``(3) Prescription of standards for multiple years.--The
authority of the Secretary to prescribe by regulation average
fuel economy standards for automobiles includes the authority
to prescribe standards by issuing regulations governing more
than 1 model year at a time, up to 5 consecutive model
years.''.
(d) Technical and Conforming Amendments.--
(1) Section 32901(a) of title 49, United States Code, is
amended--
(A) by redesignating paragraph (16) as paragraph (17); and
(B) by inserting after paragraph (15) the following:
``(16) `nonpassenger automobile' means an automobile that
is not a passenger automobile; and''.
(2) Section 32903 of title 49, United States Code, is
amended--
(A) by striking ``section 32902(b)-(d) of this title'' each
place it appears and inserting ``subsections (b) and (c) of
section 32902'';
(B) in subsection (a)(2), by striking ``clause (1) of this
subsection,'' and inserting ``paragraph (1)''; and
(C) in subsection (e), by striking ``automobiles that are
not passenger automobiles'' and inserting ``nonpassenger
automobiles''.
(e) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this Act.
(2) Transition for passenger automobiles.--The standard or
standards for passenger automobiles under the authority of
section 32902(b) of title 49, United States Code, in effect
on the day before the date of the enactment of this Act,
shall remain in effect until a standard for passenger
automobiles is established under the authority of section
32902(b) of such title, as amended by this section.
(3) Average fuel economy standard for nonpassenger
automobiles in model years through 2011.--The average fuel
economy standard for nonpassenger automobiles, under the
authority of section 32902(a) of such title for model years
through 2011, shall be the standard described in the final
rule issued by the National Highway Traffic Safety
Administration entitled ``Average Fuel Economy Standards for
Light Trucks Model Years 2008-2011'' (71 Fed. Reg. 17566), as
amended in a notice published by the National Highway Traffic
Safety Administration on April 14, 2006 (71 Fed. Reg. 19449).
SEC. 503. FUEL ECONOMY TARGET FOR COMMERCIAL MEDIUM-DUTY AND
HEAVY-DUTY ON-HIGHWAY VEHICLES.
Section 32902 of title 49, United States Code, as amended
by section 502, is further amended by adding at the end the
following:
``(k) Commercial Medium- and Heavy-Duty On-Highway
Vehicles.--
``(1) Study.--Not later than 18 months after the date of
the enactment of the Renewable Fuels, Consumer Protection,
and Energy Efficiency Act of 2007, the Secretary of
Transportation, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection Agency,
shall examine the fuel efficiency of commercial medium- and
heavy-duty on-highway vehicles and determine--
``(A) the appropriate test procedures and methodologies for
measuring commercial medium- and heavy-duty on-highway
vehicle fuel efficiency;
``(B) the appropriate metric for measuring and expressing
commercial medium- and heavy-duty on-highway vehicle fuel
efficiency performance, taking into consideration, among
other things, the work performed by such on-highway vehicles
and types of operations in which they are used;
``(C) the range of factors, including, without limitation,
design, functionality, use,
[[Page S7967]]
duty cycle, infrastructure, and total overall energy
consumption and operating costs that effect commercial
medium- and heavy-duty on-highway vehicle fuel efficiency;
and
``(D) such other factors and conditions that could have an
impact on a program to improve commercial medium- and heavy-
duty on-highway vehicle fuel efficiency.
``(2) Rulemaking.--Not later than 24 months after
completion of the study required under paragraph (1), the
Secretary of Transportation, in consultation with the
Secretary of Energy and the Administrator of the
Environmental Protection Agency, and based on the results of
that study, shall determine in a rulemaking procedure how to
implement a commercial medium- and heavy-duty on-highway
vehicle fuel efficiency improvement program and, as
appropriate, shall adopt test methods, measurement metrics,
fuel efficiency standards, and compliance and enforcement
protocols that are appropriate, cost-effective, and
technologically feasible for commercial medium- and heavy-
duty on-highway vehicles.
``(3) Lead-time; regulatory stability.--Any commercial
medium- and heavy-duty on-highway vehicle fuel efficiency
regulatory program adopted pursuant to this subsection shall
provide no less than 4 full model years of regulatory lead-
time and 3 full model years of regulatory stability.
``(4) Commercial medium- and heavy-duty on-highway vehicle
defined.--In this subsection, the term `commercial medium-
and heavy-duty on-highway vehicle' means a commercial on-
highway vehicle with a gross vehicle weight rating of more
than 10,000 pounds.''.
SEC. 504. CREDIT AVAILABILITY.
(a) In General.--Section 32903 of title 49, United States
Code, is amended--
(1) by striking ``section 32902(b)-(d) of this title'' each
place it appears and inserting ``subsections (b) and (c) of
section 32902'';
(2) in subsection (a)--
(A) by striking ``3 consecutive model years'' each place it
appears and inserting ``5 consecutive model years''; and
(B) in paragraph (2), by striking ``clause (1) of this
subsection,'' and inserting ``paragraph (1)'';
(3) in subsection (b)--
(A) in paragraph (1), by striking ``paragraph (2) of this
subsection'' and inserting ``paragraph (2) and subsection
(g)''; and
(B) in paragraph (2), by striking ``3 model years'' and
inserting ``5 model years'';
(4) in subsection (e), by striking ``automobiles that are
not passenger automobiles'' and inserting ``nonpassenger
automobiles''; and
(5) by adding at the end the following:
``(g) Credit Transferring Within a Manufacturer's Fleet.--
``(1) Average fuel economy credit transferring program.--
The Secretary of Transportation shall establish, by
regulation, a corporate average fuel economy credit
transferring program to allow any manufacturer whose
automobiles exceed any of the average fuel economy standards
prescribed under section 32902 to transfer the credits earned
under this section and to apply them within that
manufacturer's fleet to a compliance category of automobiles
that fails to achieve the prescribed standards.
``(2) Availability of credits transferred.--Credits
transferred under this section are available to be used in
the same model years that the manufacturer could have applied
them under subsections (a), (b), (d) and (e) as well as for
the model year in which the manufacturer earned them. The
maximum increase in any compliance category attributable to
transferred credits is 1.0 mile per gallon in any single
model year.
``(3) Limitation on credit transfers to category of
passenger automobiles.--In the case of transfers to the
category of automobiles described in paragraph 5(B)(i), the
transfer is limited to the extent that the fuel economy level
of the manufacturer's fleet of passenger automobiles
manufactured domestically shall comply with the provisions
established under section 32902(b)(7), excluding any
transfers from other categories of automobiles described in
paragraph 5(B).
``(4) Effective date.--A credit transferred in conformance
with this section may only be so transferred if such credit
is earned no earlier than the first model year after the date
of the enactment of the Renewable Fuels, Consumer Protection,
and Energy Efficiency Act of 2007.
``(5) Definitions.--In this subsection:
``(A) Fleet.--The term `fleet' means all automobiles
manufactured by a manufacturer in a given model year.
``(B) Compliance category of automobiles.--The term
`compliance category of automobiles' means any of the 3
categories of automobiles for which compliance is separately
calculated under this chapter, namely--
``(i) passenger automobiles manufactured domestically;
``(ii) passenger automobiles not manufactured domestically;
and
``(iii) nonpassenger automobiles.''.
(b) Flexible Fueled Vehicles.--
(1) Extension of alternative fuel automobiles manufacturing
incentives.--Section 32905 of title 49, United States Code,
is amended--
(A) by striking ``1993-2010'' each place it appears and
inserting ``1993 through 2020.'';
(B) by striking subsections (f) and (g); and
(C) by redesignating subsection (h) as subsection (f).
(2) Extension of maximum increase period.--Section 32906(a)
of title 49, United States Code, is amended--
(A) by striking ``1993-2010'' and inserting ``1993 through
2020'';
(B) in paragraph (1)--
(i) in subparagraph (A), by striking ``(A)''; and
(ii) by striking subparagraph (B); and
(C) in paragraph (2), by striking ``described--'' and all
that follows and inserting ``is more than 1.2 miles per
gallon, the limitation in paragraph (1) applies.''.
SEC. 505. RESEARCH ON AND DEVELOPMENT OF LEAP-AHEAD
TECHNOLOGY.
(a) Program.--The Secretary of Energy (referred to in this
section as the ``Secretary''), in cooperation with heads of
other Federal agencies, shall carry out a comprehensive
program to develop advanced vehicle technologies (including
associated components and parts) that will offer--
(1) the potential for significantly-improved fuel economy;
and
(2) significant reductions in emissions.
(b) Components.--The program carried out under subsection
(a) shall include research and development in the areas of--
(1) advanced lightweight materials;
(2) advanced battery technology;
(3) hybrid systems, including--
(A) power electronics, electric motors, power control
units, and power controls;
(B) hydraulic accumulators or other energy storage devices;
and
(C) testing and analysis;
(4) plug-in hybrids;
(5) advanced clean diesel;
(6) hydrogen internal combustion engines;
(7) fuel cell technology;
(8) hydrogen storage;
(9) fuel cell membranes;
(10) cellulosic ethanol;
(11) biodiesel fuel;
(12) biodiesel fuel and technology;
(13) ethanol and biofuels technology; and
(14) such other related areas as the Secretary determines
to be appropriate.
(c) Advanced Lightweight Materials.--In carrying out this
section, the Secretary shall carry out an advanced
lightweight materials research and development program the
primary focuses of which shall include--
(1) the provision of--
(A) technical advice for compliance with applicable Federal
and State environmental requirements;
(B) assistance in identifying supply sources and securing
long-term contracts; and
(C) public outreach, education, and labeling materials; and
(2) the development of--
(A) low-cost, durable, abuse-tolerant lithium ion-based
chemistries or other advanced chemistries;
(B) advanced lightweight steels that provide a 30-percent
weight reduction;
(C) advanced lightweight metals (such as magnesium,
aluminum, and titanium);
(D) advanced composites, particularly carbon fiber
precursors and forming; and
(E) advanced forming and joining processes for lightweight
materials, including mixed materials (such as combinations of
steel, aluminum, magnesium, and carbon fiber into a single
assembly or vehicle).
(d) Advanced Batteries.--
(1) In general.--In carrying out this section, the
Secretary shall carry out an advanced battery program the
primary focuses of which shall be--
(A) research in the chemistry of exploratory battery
technologies (other than lithium ion batteries); and
(B) battery and battery systems production process research
and development.
(2) Industry alliance.--In carrying out the advanced
battery program under this subsection, the Secretary shall
competitively select an Industry Alliance to represent
participants who are private, for-profit firms headquartered
in the United States, the primary business of which is the
manufacturing of batteries and battery systems.
(3) Research.--
(A) Grants.--The Secretary shall carry out research
activities of the Initiative through competitively-awarded
grants to--
(i) researchers, including Industry Alliance participants;
(ii) small businesses;
(iii) National Laboratories; and
(iv) institutions of higher education.
(B) Industry alliance.--The Secretary shall annually
solicit from the Industry Alliance--
(i) comments to identify advanced battery technology needs
relevant to electric drive technology;
(ii) an assessment of the progress of research activities
of the Initiative; and
(iii) assistance in annually updating advanced battery
technology road maps.
(4) Availability to the public.--The information and road
maps developed under this subsection shall be available to
the public.
(5) Preference.--In making awards under this subsection,
the Secretary shall give preference to participants in the
Industry Alliance.
(6) Cost sharing.--In carrying out this subsection, the
Secretary shall require cost sharing in accordance with
section 120(b) of title 23, United States Code.
(e) Hybrid Systems.--In carrying out this section, the
Secretary shall carry out a program relating to hybrid
systems, the primary focus of which shall be research on and
development of--
(1) advanced electric traction systems and wheel motors;
(2) advanced power electronics;
(3) systems integration; and
[[Page S7968]]
(4) hydraulic accumulators or other energy storage devices.
(f) Plug-in Hybrids.--In carrying out this section, the
Secretary shall carry out a program relating to plug-in
hybrids, the primary focus of which shall be--
(1) research on and development of advanced batteries with
appropriate power to energy ratios necessary for minimum
electric range and vehicle performance, such as acceleration;
and
(2) the early demonstration of vehicles and infrastructure
through the provision of procurement assistance to fleet
purchasers.
(g) Advanced Clean Diesel.--In carrying out this section,
the Secretary shall carry out a program of research and
development relating to diesel combustion and emissions, the
primary focuses of which shall be--
(1) the development of clean-burn and after treatment
technologies, including advanced low-temperature combustion
(including homogeneous charge compression-ignition);
(2) the development of mixed mode operation that combines
attributes of compression- and spark-ignition engine
technologies;
(3) the integration of advanced technologies, including
increased expansion ratio, variable valve timing, reduced
friction, and improved exhaust gas heat recovery;
(4) the development of NO<inf>X</inf> after treatment
systems, including absorber-catalysts, selective catalytic
reduction, and lean NO<inf>X</inf> catalysts;
(5) the development of particulate matter after treatment
systems;
(6) the development of powertrain integration of engine and
after treatment systems; and
(7) enhancements in durability and reliability and
reduction of costs.
(h) Hydrogen Internal Combustion Engines.--In carrying out
this section, the Secretary shall carry out a program of
research and development relating to hydrogen internal
combustion engines, the primary focuses of which shall be--
(1) to advance hydrogen internal combustion engine
technology to a level at which the robustness and durability
of such an engine would be acceptable to real-world
customers; and
(2) to use those engines to provide an affordable
transition to a hydrogen economy by creating a demand for
hydrogen refueling infrastructure and bridging to hydrogen-
powered fuel cells.
(i) Fuel Cell Technology.--In carrying out this section,
the Secretary shall carry out a program of research and
development relating to fuel cell technology, the primary
focuses of which shall be research on and development of--
(1) fuel cell stack components and fuel cell manufacturing
processes; and
(2) materials resistant to hydrogen embrittlement.
(j) Hydrogen Storage.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to hydrogen storage, the primary focus
of which shall be research on and development of competitive
storage methods for sufficient quantities of hydrogen onboard
a vehicle (including a demonstration of hydrogen refueling
infrastructure for not less than 10 nor more than 20
stations)--
(1) to enable increased development and use of hydrogen
internal combustion engines and hydrogen-powered fuel cell
vehicles; and
(2) to meet or surpass the customer-discernable attributes
of vehicles available as of the date of enactment of this Act
with respect to range and cost per mile.
(k) Fuel Cell Membranes.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to fuel cell membranes, the primary
focuses of which shall be--
(1) the achievement of a fundamental understanding of the
catalytic materials for fuel cells; and
(2) the development of low-cost fuel cell membranes.
(l) Cellulosic Ethanol.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to cellulosic ethanol, the primary focus
of which shall be research on and development of enzymes
necessary for the production of cellulosic ethanol.
(m) Biodiesel Fuel.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to biodiesel fuel, the primary focuses
of which shall be--
(1) the development of a national B-20 standard;
(2) fundamental research on biomass-to-liquid alternatives;
(3) total lifecycle analyses of the total potential for
petroleum replacement, total fossil fuel replacement, or
greenhouse gas reductions for biodiesel options;
(4) an assessment of feedstock options; and
(5) an assessment of the effects on engine durability and
reliability including the effects due to fuel quality
variations, stability, and degradation parameters.
(n) Biodiesel Fuel and Technology.--In carrying out this
section, the Secretary shall carry out a program of research
and development relating to biodiesel fuel, the primary
focuses of which shall be--
(1) the evaluation and optimization of B-100 processing
variables to enhance blendstock stability, maintain uniform
quality and specifications, and reduce cost;
(2) the development and expansion of processing, blending,
and distribution infrastructure;
(3) the development of standardized labeling and dispensing
of equipment information;
(4) establishment of a consumer education outreach program;
(5) assessment and evaluation of biodiesel on advanced
engine (such as high-pressure injector) and after treatment
components; and
(6) assessment of the effects of biodiesel on advanced
combustion clean-burn strategies.
(o) Ethanol and Biofuels Technology.--In carrying out this
section, the Secretary shall carry out a program of research
and development relating to ethanol and biofuels technology,
the primary focus of which shall be research and development
into--
(1) ethanol and biofuels transport systems, such as truck,
rail, and pipelines;
(2) advanced high-efficiency combustion research for fuels,
such as E-85;
(3) materials compatibility for E-85 fuel;
(4) E-85 vehicle engineering and calibration to speed
conversion of systems; and
(5) advanced combustion and after-treatment systems to
support fuel efficiency gains
(p) Authorization of Appropriations.--There are authorized
to be appropriated--
(1) to carry out subsection (a), $60,000,000 for each of
fiscal years 2008 through 2012;
(2) to carry out subsection (b), $143,000,000 for each of
the fiscal years 2008 through 2012;
(3) to conduct research and development into hybrid systems
(power electronics, electric motors, hydraulic accumulators,
other energy storage devices, testing, and analysis),
$64,000,000 for each of the fiscal years 2008 through 2012;
(4) to conduct research and development into plug-in
hybrids, $56,000,000 for each of the fiscal years 2008
through 2012;
(5) to conduct research and development into advanced clean
diesel, $54,000,000 for each of the fiscal years 2008 through
2010;
(6) to conduct research and development into hydrogen
internal combustion engines, $11,000,000 for each of the
fiscal years 2008 through 2012;
(7) to conduct research and development into fuel cell
technology, $40,000,000 for each of the fiscal years 2008
through 2012;
(8) to conduct research and development into hydrogen
storage, $88,000,000 for each of the fiscal years 2008
through 2012;
(9) to conduct research and development into fuel cell
membranes, $64,000,000 for each of the fiscal years 2008
through 2012;
(10) to conduct research and development into cellulosic
ethanol, $340,000,000 for each of the fiscal years 2008
through 2012;
(11) to conduct research and development into biodiesel
fuel and technology, $7,000,000 for each of the fiscal years
2008 through 2012; and
(12) to conduct research and development into ethanol
biofuels technology, $23,000,000 for each of the fiscal years
2008 through 2012.
SEC. 506. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS
RELATED TO ALTERNATIVE FUEL INFRASTRUCTURE.
(a) In General.--Title I of the Petroleum Marketing
Practices Act (15 U.S.C. 2801 et seq.) is amended by adding
at the end the following:
``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF
ALTERNATIVE FUEL PUMPS.
``(a) Definition.--In this section:
``(1) Alternative fuel.--The term `alternative fuel' means
any fuel--
``(A) at least 85 percent of the volume of which consists
of ethanol, natural gas, compressed natural gas, liquefied
natural gas, liquefied petroleum gas, hydrogen, or any
combination of those fuels; or
``(B) any mixture of biodiesel (as defined in section
40A(d)(1) of the Internal Revenue Code of 1986) and diesel
fuel (as defined in section 4083(a)(3) of the Internal
Revenue Code of 1986), determined without regard to any use
of kerosene and containing at least 20 percent biodiesel.
``(2) Franchise-related document.--The term `franchise-
related document' means--
``(A) a franchise under this Act; and
``(B) any other contract or directive of a franchisor
relating to terms or conditions of the sale of fuel by a
franchisee.
``(b) Prohibitions.--
``(1) In general.--Notwithstanding any provision of a
franchise-related document in effect on the date of enactment
of this section, no franchisee or affiliate of a franchisee
shall be restricted from--
``(A) installing on the marketing premises of the
franchisee an alternative fuel pump or storage tank;
``(B) converting an existing tank and pump on the marketing
premises of the franchisee for alternative fuel use;
``(C) advertising (including through the use of signage or
logos) the sale of any alternative fuel;
``(D) selling alternative fuel in any specified area on the
marketing premises of the franchisee (including any area in
which a name or logo of a franchisor or any other entity
appears);
``(E) purchasing alternative fuel solely from the
franchisor if the franchisor does not offer its own renewable
fuel for sale by the franchisee;
``(F) listing alternative fuel availability or prices,
including on service station signs, fuel dispensers, or light
poles; or
``(G) allowing payment of alternative fuel with a credit
card.
[[Page S7969]]
``(2) Enforcement.--Any restriction described in paragraph
(1) that is contained in a franchise-related document and in
effect on the date of enactment of this section--
``(A) shall be considered to be null and void as of that
date; and
``(B) shall not be enforced under section 105.
``(c) Exception to 3-Grade Requirement.--No franchise-
related document that requires that 3 grades of gasoline be
sold by the applicable franchisee shall prevent the
franchisee from selling an alternative fuel in lieu of 1
grade of gasoline.''.
(b) Conforming Amendments.--
(1) In general.--Section 101(13) of the Petroleum Marketing
Practices Act (15 U.S.C. 2801(13)) is amended by adjusting
the indentation of subparagraph (C) appropriately.
(2) Table of contents.--The table of contents of the
Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is
amended by inserting after the item relating to section 106
the following:
``Sec. 107. Prohibition on restriction of installation of alternative
fuel pumps.''.
SEC. 507. PIPELINE FEASIBILITY STUDY.
(a) In General.--The Secretary of Energy, in consultation
with the Secretary of Transportation, shall conduct a study
of the feasibility of the construction of dedicated ethanol
pipelines.
(b) Factors.--In conducting the study, the Secretary of
Energy shall consider--
(1) the quantity of ethanol production that would make
dedicated pipelines economically viable;
(2) existing or potential barriers to dedicated ethanol
pipelines, including technical, siting, financing, and
regulatory barriers;
(3) market risk (including throughput risk) and means of
mitigating the risk;
(4) regulatory, financing, and siting options that would
mitigate risk in those areas and help ensure the construction
of 1 or more dedicated ethanol pipelines;
(5) financial incentives that may be necessary for the
construction of dedicated ethanol pipelines, including the
return on equity that sponsors of the initial dedicated
ethanol pipelines will require to invest in the pipelines;
(6) technical factors that may compromise the safe
transportation of ethanol in pipelines, including an
identification of any remedial or preventative measures to
ensure pipeline integrity; and
(7) such other factors as the Secretary of Energy considers
to be appropriate.
(c) Report.--Not later than 15 months after the date of
enactment of this Act, the Secretary of Energy shall submit
to Congress a report describing the results of the study
conducted under this section.
SEC. 508. PUBLIC ACCESS TO FEDERAL ALTERNATIVE REFUELING
STATIONS.
(a) Definitions.--In this section:
(1) Alternative fuel refueling station.--The term
``alternative fuel refueling station'' has the meaning given
the term ``qualified alternative fuel vehicle refueling
property'' in section 30C(c)(1) of the Internal Revenue Code
of 1986.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Access to Federal Alternative Refueling Stations.--Not
later than 18 months after the date of enactment of this
Act--
(1) except as provided in subsection (d)(1), any Federal
property that includes at least 1 fuel refueling station
shall include at least 1 alternative fuel refueling station;
and
(2) except as provided in subsection (d)(2), any
alternative fuel refueling station located on property owned
by the Federal government shall permit full public access for
the purpose of refueling using alternative fuel.
(c) Duration.--The requirements described in subsection (b)
shall remain in effect until the sooner of--
(1) the date that is 7 years after the date of enactment of
this Act; or
(2) the date on which the Secretary determines that not
less than 5 percent of the commercial refueling
infrastructure in the United States offers alternative fuels
to the general public.
(d) Exceptions.--
(1) Waiver.--Subsection (b)(1) shall not apply to any
Federal property under the jurisdiction of a Federal agency
if the Secretary determines that alternative fuel is not
reasonably available to retail purchasers of the fuel, as
certified by the head of the agency to the Secretary.
(2) National security exemption.--Subsection (b)(2) does
not apply to property of the Federal government that the
Secretary, in consultation with the Secretary of Defense, has
certified must be exempt for national security reasons.
(e) Report.--Not later than October 31 of each year
beginning after the date of enactment of this Act, the
President shall submit to Congress a report that describes
the progress of the agencies of the Federal Government
(including the Executive Office of the President) in
complying with--
(1) the Energy Policy Act of 1992 (42 U.S.C. 13201 et
seq.);
(2) Executive Order 13149 (65 Fed. Reg. 24595; relating to
greening the government through Federal fleet and
transportation efficiency); and
(3) the fueling center requirements of this section.
______
SA 1712. Mr. PRYOR (for himself, Mr. Bond, Mr. Levin, Mr. Voinovich,
Ms. Stabenow, and Mrs. McCaskill) submitted an amendment intended to be
proposed to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6,
to reduce our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 239, strike line 16 and all that follows through
page 263, line 8 and insert the following:
TITLE V--CORPORATE AVERAGE FUEL ECONOMY STANDARDS
SEC. 501. INCREASING THE EFFICIENCY OF AUTOMOBILES.
(a) Definitions.--In this section:
(1) Automobile.--The term ``automobile'' means, as defined
in regulations promulgated by the Administrator of the
Environmental Protection Agency that are in effect on the
date of the enactment of this Act--
(A) a light-duty truck;
(B) a light-duty vehicle; or
(C) a medium-duty passenger vehicle.
(2) Alternative fuel.--The term ``alternative fuel'' has
the meaning given the term in section 32901(a) of title 49,
United States Code.
(3) E85.--The term ``E85'' means a fuel blend containing 85
percent denatured ethanol and 15 percent gasoline by volume.
(4) Flexible fuel automobile.--The term ``flexible fuel
automobile'' means an automobile warrantied by the
manufacturer of the vehicle to operate on any combination of
gasoline, E85, and M85 or diesel fuel blends containing not
less than 20 percent non-petroleum based fuel alternatives.
(5) Hybrid motor vehicle.--The term ``hybrid motor
vehicle'' means a new qualified hybrid motor vehicle (as
defined in section 30B(d)(3) of the Internal Revenue Code of
1986) that achieves at least 125 percent of the model year
2002 city fuel economy.
(6) M85.--The term ``M85'' means a fuel blend containing 85
percent methanol and 15 percent gasoline by volume.
(7) Plug-in hybrid automobile.--The term ``plug-in hybrid
automobile'' means a hybrid automobile that--
(A) has an onboard, rechargeable storage device capable of
propelling the vehicle by electricity for at least 10 miles;
and
(B) achieves at least 125 percent of the model year 2002
city fuel economy.
(8) Qualified automobile.--The term ``qualified
automobile'' means--
(A) a new advanced lean burn technology motor vehicle (as
defined in section 30B(c)(3) of the Internal Revenue Code of
1986) that achieves at least 125 percent of the model year
2002 city fuel economy;
(B) an alternative fueled automobile (as defined in section
32901(a) of title 49, United States Code);
(C) a flexible fuel automobile;
(D) a new qualified fuel cell motor vehicle (as defined in
section 30B(b)(3) of the Internal Revenue Code of 1986);
(E) a hybrid automobile;
(F) a plug-in hybrid automobile;
(G) an electric automobile;
(H) a hydrogen internal combustion engine automobile; and
(I) any other appropriate automobile that uses
substantially new technology and achieves at least 175
percent of the model year 2002 city fuel economy, as
determined by the Secretary of Transportation, by regulation.
(b) Requirements.--
(1) In general.--For each model year, the percentage of new
automobiles manufactured by a manufacturer for sale in the
United States that are qualified automobiles shall be not
less than the corresponding percentage in the following
table:
For model year: The percentage that are qualified
automobiles shall be not less than:
2012.........................................................20 percent
2013.........................................................30 percent
2014.........................................................40 percent
2015 and thereafter..........................................50 percent
(2) New technology.--Not less than 10 percent of the number
of qualified automobiles required to be manufactured by a
manufacturer for sale in the United States in each model year
after 2016 pursuant to paragraph (1), shall be--
(A) hybrid automobiles;
(B) plug-in hybrid automobiles;
(C) new advanced lean burn technology motor vehicles (as
defined in section 30B(c)(3) of the Internal Revenue Code of
1986);
(D) new qualified fuel cell motor vehicles (as defined in
section 30B(b)(3) of the Internal Revenue Code of 1986);
(E) electric automobiles; or
(F) any other appropriate automobile that uses
substantially new technology and achieves at least 175
percent of the model year 2002 combined fuel economy, as
determined by the Secretary of Transportation, by regulation.
(c) Qualified Automobile Credits.--
(1) In general.--The Secretary shall issue qualified
automobile production credits to
[[Page S7970]]
manufacturers for automobiles manufactured for model year
2012 and for each subsequent model year, in accordance with
this subsection.
(2) Effect of credit.--Each credit issued to a manufacturer
under this subsection shall reduce the qualified automobile
mandate requirement under subsection (b)(1) by 1 automobile
for the model year to which the credit applies.
(3) Rate of credit issuance.--For each qualified automobile
(except for automobiles described in subparagraphs (B) and
(C) of subsection (a)(8)) manufactured for model year 2012,
2013, 2014, 2015, or 2016, the manufacturer shall be issued--
(A) 1.25 qualified automobile production credits if the
combined fuel economy for such automobile is greater than 110
percent and less than 125 percent of the combined fuel
economy of the model year 2002 inertia weight class;
(B) 1.5 qualified automobile production credits if the
combined fuel economy for such automobile is at least 125
percent and less than 150 percent of the combined fuel
economy of the model year 2002 inertia weight class;
(C) 2.0 qualified automobile production credits if the
combined fuel economy for such automobile is at least 150
percent and less than 175 percent of the combined fuel
economy of the model year 2002 inertia weight class; and
(D) 3.0 qualified automobile production credits if the
combined fuel economy for such automobile is at least 175
percent of the combined fuel economy of the model year 2002
inertia weight class;
(4) Defined term.--For purposes of this paragraph, the term
``model year 2002 inertia weight class'' has the same meaning
as the term ``vehicle inertia weight class'' as defined in
Section 30B of the Internal Revenue Code of 1986.
(d) Rulemaking.--Not later than 1 year after the date of
the enactment of this Act, the Secretary of Transportation
shall promulgate regulations to carry out this section.
SEC. 502. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES.
(a) Increased Standards.--Section 32902 of title 49, United
States Code, is amended--
(1) by amending subsection (a) to read as follows:
``(a) Nonpassenger Automobiles.--
``(1) Annual prescription of average fuel economy
standards.--
``(A) In general.--Not later than 18 months before the
beginning of each model year, the Secretary of Transportation
shall prescribe by regulation average fuel economy standards
for nonpassenger automobiles manufactured by a manufacturer
in that model year.
``(B) Standards based on class.--The Secretary may
prescribe separate standards for different classes of
nonpassenger automobiles.
``(C) Standards based on vehicle attributes.--The Secretary
may prescribe such standards based on vehicle attributes
pursuant to subsection (j).
``(D) Minimum standard.--Each standard prescribed under
this paragraph shall be the maximum feasible average fuel
economy level that the Secretary determines the manufacturers
can achieve in that model year, consistent with subsection
(e).
``(2) Average fuel economy standard for model years 2012
through 2014.--Not later than April 1, 2010, the Secretary
shall establish average fuel economy standards for
nonpassenger automobiles for each of the model years 2012,
2013, and 2014. Each such standard shall be set at the
maximum feasible average fuel economy level that the
Secretary determines the manufacturers can achieve in each
such model year.
``(3) Average fuel economy standard for model year 2015.--
Not later than April 1, 2013, the Secretary shall establish
the average fuel economy standard for nonpassenger
automobiles for model year 2015--
``(A) at least 25.3 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(4) Average fuel economy standard for model years 2016
through 2019.--Not later than April 1, 2014, the Secretary
shall establish average fuel economy standards for
nonpassenger automobiles for each of the model years 2016,
2017, 2018, and 2019. Each such standard shall be set at the
maximum feasible average fuel economy level that the
Secretary determines the manufacturers can achieve in each
such model year.
``(5) Average fuel economy standard for model year 2020.--
Not later than April 1, 2018, the Secretary shall establish
the average fuel economy standard for nonpassenger
automobiles for model year 2020--
``(A) at least 27.7 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(6) Average fuel economy standard for model years 2021
through 2024.--Not later than April 1, 2019, the Secretary
shall establish average fuel economy standards for
nonpassenger automobiles for each of the model years 2021,
2022, 2023, and 2024. Each such standard shall be set at the
maximum feasible average fuel economy level that the
Secretary determines the manufacturers can achieve in each
such model year.
``(7) Average fuel economy standard for model years 2025
and thereafter.--Not later than April 1, 2023, the Secretary
shall establish the average fuel economy standard for
nonpassenger automobiles for model year 2025 and each
subsequent model year--
``(A) at least 30 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).''; and
(2) by amending subsection (b) to read as follows:
``(b) Passenger Automobiles.--
``(1) Annual prescription of average fuel economy
standards.--
``(A) In general.--Not later than 18 months before the
beginning of each model year after model year 2011, the
Secretary of Transportation shall prescribe by regulation
average fuel economy standards for passenger automobiles
manufactured by a manufacturer in that model year.
``(B) Authority for prescription of differing standards
based on class.--The Secretary may prescribe separate
standards for different classes of passenger automobiles.
``(C) Standards based on vehicle attributes.--The Secretary
may prescribe such standards based on vehicle attributes
pursuant to subsection (j).
``(D) Minimum standard.--Each standard prescribed under
this paragraph shall be the maximum feasible average fuel
economy level that the Secretary determines the manufacturers
can achieve in that model year, consistent with subsection
(e).
``(2) Average fuel economy standard for model year 2012.--
Not later than April 1, 2010, the Secretary shall establish
the average fuel economy standard for passenger automobiles
for model year 2012--
``(A) at least 29 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(3) Average fuel economy standard for model years 2013
through 2016.--Not later than April 1, 2011, the Secretary
shall establish average fuel economy standards for passenger
automobiles for each of the model years 2013, 2014, 2015, and
2016. Each such standard shall be set at the maximum feasible
average fuel economy level that the Secretary determines the
manufacturers can achieve in each such model year.
``(4) Average fuel economy standard for model years 2017.--
Not later than April 1, 2015, the Secretary shall establish
the average fuel economy standard for passenger automobiles
for model year 2017--
``(A) at least 32.5 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(5) Average fuel economy standard for model years 2018
through 2021.--Not later than April 1, 2016, the Secretary
shall establish average fuel economy standards for passenger
automobiles for model years 2018, 2019, 2020, and 2021. Each
such standard shall be set at the maximum feasible average
fuel economy level that the Secretary determines the
manufacturers can achieve in each such model year.
``(6) Average fuel economy standard for model years 2022
and thereafter.--Not later than April 1, 2020, the Secretary
shall establish the average fuel economy standard for
passenger automobiles for model year 2022 and each subsequent
model year--
``(A) at least 36 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(7) Minimum for average fuel economy standards based on
vehicle attributes.--
``(A) In general.--Notwithstanding any other provision of
this section, for any model year in which the Secretary
prescribes average fuel economy standards for passenger
automobiles on the basis of vehicle attributes pursuant to
subsection (j), the average fuel economy standard for
passenger automobiles manufactured by a manufacturer in that
model year shall also provide for an alternative minimum
standard that shall apply only to a manufacturer's
domestically manufactured passenger automobiles, as
calculated under section 32904 as in effect on the day before
the date of the enactment of the Renewable Fuels, Consumer
Protection, and Energy Efficiency Act of 2007.
``(B) Alternative minimum standard.--The alternative
minimum standard referred
[[Page S7971]]
to in subparagraph (A) shall be the greater of--
``(i) 27.5 miles per gallon; or
``(ii) 92 percent of the average fuel economy projected by
the Secretary for the combined domestic and foreign fleets
manufactured for sale in the United States by all
manufacturers in that model year, which projection shall be
published in the Federal Register when the standard for that
model year is promulgated in accordance with this section.
``(C) Applicability.--The alternative minimum standard
under this paragraph shall apply to a manufacturer's
domestically manufactured passenger automobiles only if the
passenger automobile standard established on the basis of
vehicle attributes pursuant to subsection (j), excluding any
credits transferred by the manufacturer pursuant to
subsection (g) from other categories of automobiles described
in paragraph (5)(B), would allow that manufacturer to comply
with a less stringent passenger automobile standard than the
alternative minimum standard.''.
(b) Repeal of Authority To Amend Passenger Automobile Fuel
Economy Standards.--
(1) In general.--Section 32902 of title 49, United States
Code, is amended--
(A) by striking subsection (c); and
(B) by redesignating subsections (d) through (j) as
subsections (c) through (i), respectively.
(2) Conforming amendments.--
(A) Section 32901(a)(12) of such title is amended by
striking ``section 32902(d)'' and inserting ``section
32902(c)''.
(B) Section 32902 of such title is amended--
(i) in subsection (c)(1), as redesignated by paragraph
(1)(B), by striking ``under subsection (b) or (c)'' and
inserting ``under subsection (b)'';
(ii) in subsection (d)(2), as redesignated by paragraph
(1)(B), by striking ``under subsection (a), (b), (c), or
(d)'' and inserting ``under subsection (a), (b), or (c)'';
(iii) in subsection (f), as redesignated by paragraph
(1)(B)--
(I) in paragraph (1)--
(aa) by striking ``under subsection (a) or (d)'' and
inserting ``under subsection (a), (b), or (c)''; and
(bb) by striking ``of subsection (a) or (d)'' and inserting
``of subsection (a), (b), or (c)''; and
(II) in paragraph (2), by striking ``(and submit the
amendment to Congress when required under subsection (c)(2)
of this section)'';
(iv) in subsection (g), as redesignated by paragraph
(1)(B), by striking ``carrying out subsections (c), (f), and
(g)'' and inserting ``carrying out subsections (a), (b), (e),
and (f)''; and
(v) in subsection (i), as redesignated by paragraph (1)(B),
by striking ``under subsection (a), (c), or (g) of this
section'' and inserting ``under subsection (a), (b), or
(f)''.
(C) Section 32904(a)(1)(B) of such title is amended by
striking ``section 32902(b)-(d)'' and inserting ``subsections
(b) and (c) of section 32902''.
(D) Section 32907(a)(4) of such title is amended by
striking ``section 32902(d)'' and inserting ``section
32902(c)''.
(E) Section 32909(b) of such title is amended by striking
``, except that a petition for review'' and all that follows
through ``referred to in section 32902(c)(2)''.
(F) Section 32917(b)(1)(B) of such title is amended by
striking ``or (c)''.
(c) Authority of the Secretary To Prescribe Standards Based
on Vehicle Attributes.--Section 32902 of title 49, United
States Code, as amended by this section, is further amended
by adding at the end the following:
``(j) Authority of the Secretary To Prescribe Standards
Based on Vehicle Attributes.--
``(1) In general.--The authority of the Secretary of
Transportation to prescribe by regulation average fuel
economy standards for passenger automobiles and nonpassenger
automobiles includes the authority to prescribe standards
based on vehicle attributes related to fuel economy and to
express any such attribute-based standard in the form of a
mathematical function.
``(2) Transition period.--If the Secretary prescribes
standards for passenger automobiles on the basis of vehicle
attributes, the Secretary shall provide a transition period
during the first 3 model years in which an attribute-based
standard would apply during which each manufacturer may elect
whether to comply with the attribute-based standard or with
the single corporate average fuel economy level prescribed
under subsection (b).
``(3) Prescription of standards for multiple years.--The
authority of the Secretary to prescribe by regulation average
fuel economy standards for automobiles includes the authority
to prescribe standards by issuing regulations governing more
than 1 model year at a time, up to 5 consecutive model
years.''.
(d) Technical and Conforming Amendments.--
(1) Section 32901(a) of title 49, United States Code, is
amended--
(A) by redesignating paragraph (16) as paragraph (17); and
(B) by inserting after paragraph (15) the following:
``(16) `nonpassenger automobile' means an automobile that
is not a passenger automobile; and''.
(2) Section 32903 of title 49, United States Code, is
amended--
(A) by striking ``section 32902(b)-(d) of this title'' each
place it appears and inserting ``subsections (b) and (c) of
section 32902'';
(B) in subsection (a)(2), by striking ``clause (1) of this
subsection,'' and inserting ``paragraph (1)''; and
(C) in subsection (e), by striking ``automobiles that are
not passenger automobiles'' and inserting ``nonpassenger
automobiles''.
(e) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this Act.
(2) Transition for passenger automobiles.--The standard or
standards for passenger automobiles under the authority of
section 32902(b) of title 49, United States Code, in effect
on the day before the date of the enactment of this Act,
shall remain in effect until a standard for passenger
automobiles is established under the authority of section
32902(b) of such title, as amended by this section.
(3) Average fuel economy standard for nonpassenger
automobiles in model years through 2011.--The average fuel
economy standard for nonpassenger automobiles, under the
authority of section 32902(a) of such title for model years
through 2011, shall be the standard described in the final
rule issued by the National Highway Traffic Safety
Administration entitled ``Average Fuel Economy Standards for
Light Trucks Model Years 2008-2011'' (71 Fed. Reg. 17566), as
amended in a notice published by the National Highway Traffic
Safety Administration on April 14, 2006 (71 Fed. Reg. 19449).
SEC. 503. FUEL EFFICIENCY TARGET FOR COMMERCIAL MEDIUM-DUTY
AND HEAVY-DUTY ON-HIGHWAY VEHICLES.
Section 32902 of title 49, United States Code, as amended
by section 502, is further amended by adding at the end the
following:
``(k) Commercial Medium- and Heavy-Duty On-Highway
Vehicles.--
``(1) Study.--Not later than 18 months after the date of
the enactment of the Renewable Fuels, Consumer Protection,
and Energy Efficiency Act of 2007, the Secretary of
Transportation, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection Agency,
shall examine the fuel efficiency of commercial medium- and
heavy-duty on-highway vehicles and determine--
``(A) the appropriate test procedures and methodologies for
measuring commercial medium- and heavy-duty on-highway
vehicle fuel efficiency;
``(B) the appropriate metric for measuring and expressing
commercial medium- and heavy-duty on-highway vehicle fuel
efficiency performance, taking into consideration, among
other things, the work performed by such on-highway vehicles
and types of operations in which they are used;
``(C) the range of factors, including, without limitation,
design, functionality, use, duty cycle, infrastructure, and
total overall energy consumption and operating costs that
effect commercial medium- and heavy-duty on-highway vehicle
fuel efficiency; and
``(D) such other factors and conditions that could have an
impact on a program to improve commercial medium- and heavy-
duty on-highway vehicle fuel efficiency.
``(2) Rulemaking.--Not later than 24 months after
completion of the study required under paragraph (1), the
Secretary of Transportation, in consultation with the
Secretary of Energy and the Administrator of the
Environmental Protection Agency, and based on the results of
that study, shall determine in a rulemaking procedure how to
implement a commercial medium- and heavy-duty on-highway
vehicle fuel efficiency improvement program and, as
appropriate, shall adopt test methods, measurement metrics,
fuel efficiency targets, and compliance and enforcement
protocols that are appropriate, cost-effective, and
technologically feasible for commercial medium- and heavy-
duty on-highway vehicles.
``(3) Lead-time; regulatory stability.--Any commercial
medium- and heavy-duty on-highway vehicle fuel efficiency
regulatory program adopted pursuant to this subsection shall
provide no less than 4 full model years of regulatory lead-
time and 3 full model years of regulatory stability.
``(4) Commercial medium- and heavy-duty on-highway vehicle
defined.--In this subsection, the term `commercial medium-
and heavy-duty on-highway vehicle' means a commercial on-
highway vehicle with a gross vehicle weight rating of more
than 10,000 pounds.''.
SEC. 504. CREDIT AVAILABILITY.
(a) In General.--Section 32903 of title 49, United States
Code, is amended--
(1) by striking ``section 32902(b)-(d) of this title'' each
place it appears and inserting ``subsections (b) and (c) of
section 32902'';
(2) in subsection (a)--
(A) by striking ``3 consecutive model years'' each place it
appears and inserting ``5 consecutive model years''; and
(B) in paragraph (2), by striking ``clause (1) of this
subsection,'' and inserting ``paragraph (1)'';
(3) in subsection (b)--
(A) in paragraph (1), by striking ``paragraph (2) of this
subsection'' and inserting ``paragraph (2) and subsection
(g)''; and
[[Page S7972]]
(B) in paragraph (2), by striking ``3 model years'' and
inserting ``5 model years'';
(4) in subsection (e), by striking ``automobiles that are
not passenger automobiles'' and inserting ``nonpassenger
automobiles''; and
(5) by adding at the end the following:
``(g) Credit Transferring Within a Manufacturer's Fleet.--
``(1) Average fuel economy credit transferring program.--
The Secretary of Transportation shall establish, by
regulation, a corporate average fuel economy credit
transferring program to allow any manufacturer whose
automobiles exceed any of the average fuel economy standards
prescribed under section 32902 to transfer the credits earned
under this section and to apply them within that
manufacturer's fleet to a compliance category of automobiles
that fails to achieve the prescribed standards.
``(2) Availability of credits transferred.--Credits
transferred under this section are available to be used in
the same model years that the manufacturer could have applied
them under subsections (a), (b), (d) and (e) as well as for
the model year in which the manufacturer earned them. The
maximum increase in any compliance category attributable to
transferred credits is 1.0 mile per gallon in any single
model year.
``(3) Limitation on credit transfers to category of
passenger automobiles.--In the case of transfers to the
category of automobiles described in paragraph 5(B)(i), the
transfer is limited to the extent that the fuel economy level
of the manufacturer's fleet of passenger automobiles
manufactured domestically shall comply with the provisions
established under section 32902(b)(7), excluding any
transfers from other categories of automobiles described in
paragraph 5(B).
``(4) Effective date.--A credit transferred in conformance
with this section may only be so transferred if such credit
is earned no earlier than the first model year after the date
of the enactment of the Renewable Fuels, Consumer Protection,
and Energy Efficiency Act of 2007.
``(5) Definitions.--In this subsection:
``(A) Fleet.--The term `fleet' means all automobiles
manufactured by a manufacturer in a given model year.
``(B) Compliance category of automobiles.--The term
`compliance category of automobiles' means any of the 3
categories of automobiles for which compliance is separately
calculated under this chapter, namely--
``(i) passenger automobiles manufactured domestically;
``(ii) passenger automobiles not manufactured domestically;
and
``(iii) nonpassenger automobiles.''.
(b) Flexible Fueled Vehicles.--
(1) Extension of alternative fuel automobiles manufacturing
incentives.--Section 32905 of title 49, United States Code,
is amended--
(A) by striking ``1993-2010'' each place it appears and
inserting ``1993 through 2020.'';
(B) by striking subsections (f) and (g); and
(C) by redesignating subsection (h) as subsection (f).
(2) Extension of maximum increase period.--Section 32906(a)
of title 49, United States Code, is amended--
(A) by striking ``1993-2010'' and inserting ``1993 through
2020'';
(B) in paragraph (1)--
(i) in subparagraph (A), by striking ``(A)''; and
(ii) by striking subparagraph (B); and
(C) in paragraph (2), by striking ``described--'' and all
that follows and inserting ``is more than 1.2 miles per
gallon, the limitation in paragraph (1) applies.''.
SEC. 505. RESEARCH ON AND DEVELOPMENT OF LEAP-AHEAD
TECHNOLOGY.
(a) Program.--The Secretary of Energy (referred to in this
section as the ``Secretary''), in cooperation with heads of
other Federal agencies, shall carry out a comprehensive
program to develop advanced vehicle technologies (including
associated components and parts) that will offer--
(1) the potential for significantly-improved fuel economy;
and
(2) significant reductions in emissions.
(b) Components.--The program carried out under subsection
(a) shall include research and development in the areas of--
(1) advanced lightweight materials;
(2) advanced battery technology and battery systems;
(3) hybrid systems, including--
(A) power electronics, electric motors, power control
units, and power controls;
(B) hydraulic accumulators or other energy storage devices;
and
(C) testing and analysis;
(4) plug-in hybrids;
(5) advanced clean diesel;
(6) hydrogen internal combustion engines;
(7) fuel cell technology;
(8) hydrogen storage;
(9) fuel cell membranes;
(10) cellulosic ethanol;
(11) biodiesel fuel;
(12) biodiesel fuel and technology;
(13) ethanol and biofuels technology; and
(14) such other related areas as the Secretary determines
to be appropriate.
(c) Advanced Lightweight Materials.--In carrying out this
section, the Secretary shall carry out an advanced
lightweight materials research and development program the
primary focuses of which shall include--
(1) the provision of--
(A) technical advice for compliance with applicable Federal
and State environmental requirements;
(B) assistance in identifying supply sources and securing
long-term contracts; and
(C) public outreach, education, and labeling materials; and
(2) the development of--
(A) low-cost, durable, abuse-tolerant lithium ion-based
chemistries or other advanced chemistries;
(B) advanced lightweight steels that provide a 30-percent
weight reduction;
(C) advanced lightweight metals (such as magnesium,
aluminum, and titanium);
(D) advanced composites, particularly carbon fiber
precursors and forming; and
(E) advanced forming and joining processes for lightweight
materials, including mixed materials (such as combinations of
steel, aluminum, magnesium, and carbon fiber into a single
assembly or vehicle).
(d) Advanced Batteries.--
(1) In general.--In carrying out this section, the
Secretary shall carry out an advanced battery program the
primary focuses of which shall be--
(A) research in the chemistry of exploratory battery
technologies (other than lithium ion batteries); and
(B) battery and battery systems production process research
and development.
(2) Industry alliance.--In carrying out the advanced
battery program under this subsection, the Secretary shall
competitively select an Industry Alliance to represent
participants who are private, for-profit firms headquartered
in the United States, the primary business of which is the
manufacturing of batteries and battery systems.
(3) Research.--
(A) Grants.--The Secretary shall carry out research
activities of the Initiative through competitively-awarded
grants to--
(i) researchers, including Industry Alliance participants;
(ii) small businesses;
(iii) National Laboratories; and
(iv) institutions of higher education.
(B) Industry alliance.--The Secretary shall annually
solicit from the Industry Alliance--
(i) comments to identify advanced battery technology needs
relevant to electric drive technology;
(ii) an assessment of the progress of research activities
of the Initiative; and
(iii) assistance in annually updating advanced battery
technology road maps.
(4) Availability to the public.--The information and road
maps developed under this subsection shall be available to
the public.
(5) Preference.--In making awards under this subsection,
the Secretary shall give preference to participants in the
Industry Alliance.
(6) Cost sharing.--In carrying out this subsection, the
Secretary shall require cost sharing in accordance with
section 120(b) of title 23, United States Code.
(e) Hybrid Systems.--In carrying out this section, the
Secretary shall carry out a program relating to hybrid
systems, the primary focus of which shall be research on and
development of--
(1) advanced electric traction systems and wheel motors;
(2) advanced power electronics;
(3) systems integration; and
(4) hydraulic accumulators or other energy storage devices.
(f) Plug-in Hybrids.--In carrying out this section, the
Secretary shall carry out a program relating to plug-in
hybrids, the primary focus of which shall be--
(1) research on and development of advanced batteries with
appropriate power to energy ratios necessary for minimum
electric range and vehicle performance, such as acceleration;
and
(2) the early demonstration of vehicles and infrastructure
through the provision of procurement assistance to fleet
purchasers.
(g) Advanced Clean Diesel.--In carrying out this section,
the Secretary shall carry out a program of research and
development relating to diesel combustion and emissions, the
primary focuses of which shall be--
(1) the development of clean-burn and after treatment
technologies, including advanced low-temperature combustion
(including homogeneous charge compression-ignition);
(2) the development of mixed mode operation that combines
attributes of compression- and spark-ignition engine
technologies;
(3) the integration of advanced technologies, including
increased expansion ratio, variable valve timing, reduced
friction, and improved exhaust gas heat recovery;
(4) the development of NO<inf>x</inf> after treatment
systems, including absorber-catalysts, selective catalytic
reduction, and lean NO<inf>x</inf> catalysts;
(5) the development of particulate matter after treatment
systems;
(6) the development of powertrain integration of engine and
after treatment systems; and
(7) enhancements in durability and reliability and
reduction of costs.
(h) Hydrogen Internal Combustion Engines.--In carrying out
this section, the Secretary shall carry out a program of
research and development relating to hydrogen internal
combustion engines, the primary focuses of which shall be--
(1) to advance hydrogen internal combustion engine
technology to a level at which the robustness and durability
of such an engine would be acceptable to real-world
customers; and
[[Page S7973]]
(2) to use those engines to provide an affordable
transition to a hydrogen economy by creating a demand for
hydrogen refueling infrastructure and bridging to hydrogen-
powered fuel cells.
(i) Fuel Cell Technology.--In carrying out this section,
the Secretary shall carry out a program of research and
development relating to fuel cell technology, the primary
focuses of which shall be research on and development of--
(1) fuel cell stack components and fuel cell manufacturing
processes; and
(2) materials resistant to hydrogen embrittlement.
(j) Hydrogen Storage.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to hydrogen storage, the primary focus
of which shall be research on and development of competitive
storage methods for sufficient quantities of hydrogen onboard
a vehicle (including a demonstration of hydrogen refueling
infrastructure for not less than 10 nor more than 20
stations)--
(1) to enable increased development and use of hydrogen
internal combustion engines and hydrogen-powered fuel cell
vehicles; and
(2) to meet or surpass the customer-discernable attributes
of vehicles available as of the date of enactment of this Act
with respect to range and cost per mile.
(k) Fuel Cell Membranes.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to fuel cell membranes, the primary
focuses of which shall be--
(1) the achievement of a fundamental understanding of the
catalytic materials for fuel cells; and
(2) the development of low-cost fuel cell membranes.
(l) Cellulosic Ethanol.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to cellulosic ethanol, the primary focus
of which shall be research on and development of enzymes
necessary for the production of cellulosic ethanol.
(m) Biodiesel Fuel.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to biodiesel fuel, the primary focuses
of which shall be--
(1) the development of a national B-20 standard;
(2) fundamental research on biomass-to-liquid alternatives;
(3) total lifecycle analyses of the total potential for
petroleum replacement, total fossil fuel replacement, or
greenhouse gas reductions for biodiesel options;
(4) an assessment of feedstock options; and
(5) an assessment of the effects on engine durability and
reliability including the effects due to fuel quality
variations, stability, and degradation parameters.
(n) Biodiesel Fuel and Technology.--In carrying out this
section, the Secretary shall carry out a program of research
and development relating to biodiesel fuel, the primary
focuses of which shall be--
(1) the evaluation and optimization of B-100 processing
variables to enhance blendstock stability, maintain uniform
quality and specifications, and reduce cost;
(2) the development and expansion of processing, blending,
and distribution infrastructure;
(3) the development of standardized labeling and dispensing
of equipment information;
(4) establishment of a consumer education outreach program;
(5) assessment and evaluation of biodiesel on advanced
engine (such as high-pressure injector) and after treatment
components; and
(6) assessment of the effects of biodiesel on advanced
combustion clean-burn strategies.
(o) Ethanol and Biofuels Technology.--In carrying out this
section, the Secretary shall carry out a program of research
and development relating to ethanol and biofuels technology,
the primary focus of which shall be research and development
into--
(1) ethanol and biofuels transport systems, such as truck,
rail, and pipelines;
(2) advanced high-efficiency combustion research for fuels,
such as E-85;
(3) materials compatibility for E-85 fuel;
(4) E-85 vehicle engineering and calibration to speed
conversion of systems; and
(5) advanced combustion and after-treatment systems to
support fuel efficiency gains.
(p) Authorization of Appropriations.--There are authorized
to be appropriated--
(1) to carry out subsection (a), $60,000,000 for each of
fiscal years 2008 through 2012;
(2) to carry out subsection (b), $143,000,000 for each of
the fiscal years 2008 through 2012;
(3) to conduct research and development into hybrid systems
(power electronics, electric motors, hydraulic accumulators,
other energy storage devices, testing, and analysis),
$64,000,000 for each of the fiscal years 2008 through 2012;
(4) to conduct research and development into plug-in
hybrids, $56,000,000 for each of the fiscal years 2008
through 2012;
(5) to conduct research and development into advanced clean
diesel, $54,000,000 for each of the fiscal years 2008 through
2010;
(6) to conduct research and development into hydrogen
internal combustion engines, $11,000,000 for each of the
fiscal years 2008 through 2012;
(7) to conduct research and development into fuel cell
technology, $40,000,000 for each of the fiscal years 2008
through 2012;
(8) to conduct research and development into hydrogen
storage, $88,000,000 for each of the fiscal years 2008
through 2012;
(9) to conduct research and development into fuel cell
membranes, $64,000,000 for each of the fiscal years 2008
through 2012;
(10) to conduct research and development into cellulosic
ethanol, $340,000,000 for each of the fiscal years 2008
through 2012;
(11) to conduct research and development into biodiesel
fuel and technology, $7,000,000 for each of the fiscal years
2008 through 2012; and
(12) to conduct research and development into ethanol
biofuels technology, $23,000,000 for each of the fiscal years
2008 through 2012.
SEC. 506. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS
RELATED TO ALTERNATIVE FUEL INFRASTRUCTURE.
(a) In General.--Title I of the Petroleum Marketing
Practices Act (15 U.S.C. 2801 et seq.) is amended by adding
at the end the following:
``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF
ALTERNATIVE FUEL PUMPS.
``(a) Definition.--In this section:
``(1) Alternative fuel.--The term `alternative fuel' means
any fuel--
``(A) at least 85 percent of the volume of which consists
of ethanol, natural gas, compressed natural gas, liquefied
natural gas, liquefied petroleum gas, hydrogen, or any
combination of those fuels; or
``(B) any mixture of biodiesel (as defined in section
40A(d)(1) of the Internal Revenue Code of 1986) and diesel
fuel (as defined in section 4083(a)(3) of the Internal
Revenue Code of 1986), determined without regard to any use
of kerosene and containing at least 20 percent biodiesel.
``(2) Franchise-related document.--The term `franchise-
related document' means--
``(A) a franchise under this Act; and
``(B) any other contract or directive of a franchisor
relating to terms or conditions of the sale of fuel by a
franchisee.
``(b) Prohibitions.--
``(1) In general.--Notwithstanding any provision of a
franchise-related document in effect on the date of enactment
of this section, no franchisee or affiliate of a franchisee
shall be restricted from--
``(A) installing on the marketing premises of the
franchisee an alternative fuel pump or storage tank;
``(B) converting an existing tank and pump on the marketing
premises of the franchisee for alternative fuel use;
``(C) advertising (including through the use of signage or
logos) the sale of any alternative fuel;
``(D) selling alternative fuel in any specified area on the
marketing premises of the franchisee (including any area in
which a name or logo of a franchisor or any other entity
appears);
``(E) purchasing alternative fuel solely from the
franchisor if the franchisor does not offer its own renewable
fuel for sale by the franchisee;
``(F) listing alternative fuel availability or prices,
including on service station signs, fuel dispensers, or light
poles; or
``(G) allowing payment of alternative fuel with a credit
card.
``(2) Enforcement.--Any restriction described in paragraph
(1) that is contained in a franchise-related document and in
effect on the date of enactment of this section--
``(A) shall be considered to be null and void as of that
date; and
``(B) shall not be enforced under section 105.
``(c) Exception to 3-Grade Requirement.--No franchise-
related document that requires that 3 grades of gasoline be
sold by the applicable franchisee shall prevent the
franchisee from selling an alternative fuel in lieu of 1
grade of gasoline.''.
(b) Conforming Amendments.--
(1) In general.--Section 101(13) of the Petroleum Marketing
Practices Act (15 U.S.C. 2801(13)) is amended by adjusting
the indentation of subparagraph (C) appropriately.
(2) Table of contents.--The table of contents of the
Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is
amended by inserting after the item relating to section 106
the following:
``Sec. 107. Prohibition on restriction of installation of alternative
fuel pumps.''.
SEC. 507. PUBLIC ACCESS TO FEDERAL ALTERNATIVE REFUELING
STATIONS.
(a) Definitions.--In this section:
(1) Alternative fuel refueling station.--The term
``alternative fuel refueling station'' has the meaning given
the term ``qualified alternative fuel vehicle refueling
property'' in section 30C(c)(1) of the Internal Revenue Code
of 1986.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Access to Federal Alternative Refueling Stations.--Not
later than 18 months after the date of enactment of this
Act--
(1) except as provided in subsection (d)(1), any Federal
property that includes at least 1 fuel refueling station
shall include at least 1 alternative fuel refueling station;
and
(2) except as provided in subsection (d)(2), any
alternative fuel refueling station located on property owned
by the Federal government shall permit full public access for
the purpose of refueling using alternative fuel.
(c) Duration.--The requirements described in subsection (b)
shall remain in effect until the sooner of--
(1) the date that is 7 years after the date of enactment of
this Act; or
[[Page S7974]]
(2) the date on which the Secretary determines that not
less than 5 percent of the commercial refueling
infrastructure in the United States offers alternative fuels
to the general public.
(d) Exceptions.--
(1) Waiver.--Subsection (b)(1) shall not apply to any
Federal property under the jurisdiction of a Federal agency
if the Secretary determines that alternative fuel is not
reasonably available to retail purchasers of the fuel, as
certified by the head of the agency to the Secretary.
(2) National security exemption.--Subsection (b)(2) shall
not apply to property of the Federal government that the
Secretary, in consultation with the Secretary of Defense, has
certified must be exempt for national security reasons.
(e) Report.--Not later than October 31 of each year
beginning after the date of enactment of this Act, the
President shall submit to Congress a report that describes
the progress of the agencies of the Federal Government
(including the Executive Office of the President) in
complying with--
(1) the Energy Policy Act of 1992 (42 U.S.C. 13201 et
seq.);
(2) Executive Order 13149 (65 Fed. Reg. 24595; relating to
greening the government through Federal fleet and
transportation efficiency); and
(3) the fueling center requirements of this section.
SEC. 508. LABELS FOR FUEL ECONOMY AND GREENHOUSE GAS
EMISSIONS.
Section 32908(b) of title 49, United States Code, is
amended--
(1) in paragraph (1)--
(A) by redesignating subparagraph (F) as subparagraph (H);
and
(B) by inserting after subparagraph (E) the following:
``(F) a label (or a logo imprinted on a label required by
this paragraph) that--
``(i) reflects an automobile's performance on the basis of
criteria developed by the Administrator to reflect the fuel
economy and greenhouse gas and other emissions consequences
of operating the automobile over its likely useful life;
``(ii) permits consumers to compare performance results
under clause (i) among all automobiles; and
``(iii) is designed to encourage the manufacture and sale
of automobiles that meet or exceed applicable fuel economy
standards under section 32902.
``(G) a fuelstar under paragraph (5).''; and
(2) by adding at the end the following:
``(4) Green label program.--
``(A) Marketing analysis.--Not later than 2 years after the
date of the enactment of the Ten-in-Ten Fuel Economy Act, the
Administrator shall implement a consumer education program
and execute marketing strategies to improve consumer
understanding of automobile performance described in
paragraph (1)(F).
``(B) Eligibility.--Not later than 3 years after the date
described in subparagraph (A), the Administrator shall issue
requirements for the label or logo required under paragraph
(1)(F) to ensure that an automobile is not eligible for the
label or logo unless it--
``(i) meets or exceeds the applicable fuel economy
standard; or
``(ii) will have the lowest greenhouse gas emissions over
the useful life of the vehicle of all vehicles in the vehicle
attribute class to which it belongs in that model year.
``(5) Fuelstar program.--
``(A) In general.--The Secretary shall establish a program,
to be known as the `Fuelstar Program', under which stars
shall be imprinted on or attached to the label required by
paragraph (1).
``(B) Green stars.--Under the Fuelstar Program, a
manufacturer may include on the label maintained on an
automobile under paragraph (1)--
``(i) 1 green star for any automobile that meets the
average fuel economy standard for the model year under
section 32902;
``(ii) 1 additional green star for each 2 miles per gallon
by which the automobile exceeds such standard; and
``(iii) 1 additional green star for the use of thermal
management technologies, including energy efficient air
conditioning systems, glass, and powertrain systems.
``(C) Gold stars.--Under the Fuelstar Program, a
manufacturer may include a gold star on the label maintained
on an automobile under paragraph (1) if the automobile
attains a fuel economy of at least 50 miles per gallon.''.
SEC. 509. NATIONAL ACADEMY OF SCIENCES STUDIES.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary of Transportation shall
execute an agreement with the National Academy of Sciences to
develop a report evaluating vehicle fuel economy standards,
including--
(1) an assessment of automotive technologies and costs to
reflect developments since the Academy's 2002 report
evaluating the corporate average fuel economy standards was
conducted;
(2) an analysis of existing and potential technologies that
may be used practically to improve automobile fuel economy;
(3) an analysis of how such technologies may be practically
integrated into the automotive manufacturing process; and
(4) an assessment of how such technologies may be used to
meet the new fuel economy standards under chapter 329 of
title 49, United States Code, as amended by this title.
(b) Quinquennial Updates.--After submitting the initial
report, the Academy shall update the report at 5 year
intervals thereafter through 2025.
(c) Report.--The Academy shall submit the report to the
Secretary, the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Energy and Commerce, with its findings and recommendations no
later than 18 months after the date on which the Secretary
executes the agreement with the Academy.
SEC. 510. STANDARDS FOR EXECUTIVE AGENCY AUTOMOBILES.
(a) In General.--Section 32917 of title 49, United States
Code, is amended to read as follows:
``Sec. 32917. Standards for Executive agency automobiles
``(a) Fuel Efficiency.--The head of an Executive agency
shall ensure that each new automobile procured by the
Executive agency is as fuel efficient as practicable.
``(b) Definitions.--In this section:
``(1) Executive agency.--The term `Executive agency' has
the meaning given that term in section 105 of title 5.
``(2) New automobile.--The term `new automobile', with
respect to the fleet of automobiles of an executive agency,
means an automobile that is leased for at least 60
consecutive days or bought, by or for the Executive agency,
after September 30, 2008. The term does not include any
vehicle designed for combat-related missions, law enforcement
work, or emergency rescue work.''.
(b) Report.--The Administrator of the General Services
Administration shall develop a report describing and
evaluating the efforts of the heads of the Executive agencies
to comply with section 32917 of title 49, United States Code,
for fiscal year 2009. The Administrator shall submit the
report to Congress no later than December 31, 2009.
______
SA 1713. Mr. PRYOR (for himself, Mr. Bond, Mr. Levin, Mr. Voinovich,
Ms. Stabenow, and Mrs. McCaskill) submitted an amendment intended to be
proposed to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6,
to reduce our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 239, strike line 16 and all that follows through
page 263, line 8 and insert the following:
TITLE V--CORPORATE AVERAGE FUEL ECONOMY STANDARDS
SEC. 501. INCREASING THE EFFICIENCY OF AUTOMOBILES.
(a) Definitions.--In this section:
(1) Automobile.--The term ``automobile'' means, as defined
in regulations promulgated by the Administrator of the
Environmental Protection Agency that are in effect on the
date of the enactment of this Act--
(A) a light-duty truck;
(B) a light-duty vehicle; or
(C) a medium-duty passenger vehicle.
(2) Alternative fuel.--The term ``alternative fuel'' has
the meaning given the term in section 32901(a) of title 49,
United States Code.
(3) E85.--The term ``E85'' means a fuel blend containing 85
percent denatured ethanol and 15 percent gasoline by volume.
(4) Flexible fuel automobile.--The term ``flexible fuel
automobile'' means an automobile warrantied by the
manufacturer of the vehicle to operate on any combination of
gasoline, E85, and M85 or diesel fuel blends containing not
less than 20 percent non-petroleum based fuel alternatives.
(5) Hybrid motor vehicle.--The term ``hybrid motor
vehicle'' means a new qualified hybrid motor vehicle (as
defined in section 30B(d)(3) of the Internal Revenue Code of
1986) that achieves at least 125 percent of the model year
2002 city fuel economy.
(6) M85.--The term ``M85'' means a fuel blend containing 85
percent methanol and 15 percent gasoline by volume.
(7) Plug-in hybrid automobile.--The term ``plug-in hybrid
automobile'' means a hybrid automobile that--
(A) has an onboard, rechargeable storage device capable of
propelling the vehicle by electricity for at least 10 miles;
and
(B) achieves at least 125 percent of the model year 2002
city fuel economy.
(8) Qualified automobile.--The term ``qualified
automobile'' means--
(A) a new advanced lean burn technology motor vehicle (as
defined in section 30B(c)(3) of the Internal Revenue Code of
1986) that achieves at least 125 percent of the model year
2002 city fuel economy;
(B) an alternative fueled automobile (as defined in section
32901(a) of title 49, United States Code);
(C) a flexible fuel automobile;
(D) a new qualified fuel cell motor vehicle (as defined in
section 30B(b)(3) of the Internal Revenue Code of 1986);
(E) a hybrid automobile;
(F) a plug-in hybrid automobile;
(G) an electric automobile;
(H) a hydrogen internal combustion engine automobile; and
(I) any other appropriate automobile that uses
substantially new technology and achieves at least 175
percent of the model
[[Page S7975]]
year 2002 city fuel economy, as determined by the Secretary
of Transportation, by regulation.
(b) Requirements.--
(1) In general.--For each model year, the percentage of new
automobiles manufactured by a manufacturer for sale in the
United States that are qualified automobiles shall be not
less than the corresponding percentage in the following
table:
For model year: The percentage that are qualified
automobiles shall be not less than:
2012.........................................................20 percent
2013.........................................................30 percent
2014.........................................................40 percent
2015 and thereafter..........................................50 percent
(2) New technology.--Not less than 10 percent of the number
of qualified automobiles required to be manufactured by a
manufacturer for sale in the United States in each model year
after 2016 pursuant to paragraph (1), shall be--
(A) hybrid automobiles;
(B) plug-in hybrid automobiles;
(C) new advanced lean burn technology motor vehicles (as
defined in section 30B(c)(3) of the Internal Revenue Code of
1986);
(D) new qualified fuel cell motor vehicles (as defined in
section 30B(b)(3) of the Internal Revenue Code of 1986);
(E) electric automobiles; or
(F) any other appropriate automobile that uses
substantially new technology and achieves at least 175
percent of the model year 2002 combined fuel economy, as
determined by the Secretary of Transportation, by regulation.
(c) Qualified Automobile Credits.--
(1) In general.--The Secretary shall issue qualified
automobile production credits to manufacturers for
automobiles manufactured for model year 2012 and for each
subsequent model year, in accordance with this subsection.
(2) Effect of credit.--Each credit issued to a manufacturer
under this subsection shall reduce the qualified automobile
mandate requirement under subsection (b)(1) by 1 automobile
for the model year to which the credit applies.
(3) Rate of credit issuance.--For each qualified automobile
(except for automobiles described in subparagraphs (B) and
(C) of subsection (a)(8)) manufactured for model year 2012,
2013, 2014, 2015, or 2016, the manufacturer shall be issued--
(A) 1.25 qualified automobile production credits if the
combined fuel economy for such automobile is greater than 110
percent and less than 125 percent of the combined fuel
economy of the model year 2002 inertia weight class;
(B) 1.5 qualified automobile production credits if the
combined fuel economy for such automobile is at least 125
percent and less than 150 percent of the combined fuel
economy of the model year 2002 inertia weight class;
(C) 2.0 qualified automobile production credits if the
combined fuel economy for such automobile is at least 150
percent and less than 175 percent of the combined fuel
economy of the model year 2002 inertia weight class; and
(D) 3.0 qualified automobile production credits if the
combined fuel economy for such automobile is at least 175
percent of the combined fuel economy of the model year 2002
inertia weight class;
(4) Defined term.--For purposes of this paragraph, the term
``model year 2002 inertia weight class'' has the same meaning
as the term ``vehicle inertia weight class'' as defined in
Section 30B of the Internal Revenue Code of 1986.
(d) Rulemaking.--Not later than 1 year after the date of
the enactment of this Act, the Secretary of Transportation
shall promulgate regulations to carry out this section.
SEC. 502. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES.
(a) Increased Standards.--Section 32902 of title 49, United
States Code, is amended--
(1) by amending subsection (a) to read as follows:
``(a) Nonpassenger Automobiles.--
``(1) Annual prescription of average fuel economy
standards.--
``(A) In general.--Not later than 18 months before the
beginning of each model year, the Secretary of Transportation
shall prescribe by regulation average fuel economy standards
for nonpassenger automobiles manufactured by a manufacturer
in that model year.
``(B) Standards based on class.--The Secretary may
prescribe separate standards for different classes of
nonpassenger automobiles.
``(C) Standards based on vehicle attributes.--The Secretary
may prescribe such standards based on vehicle attributes
pursuant to subsection (j).
``(D) Minimum standard.--Each standard prescribed under
this paragraph shall be the maximum feasible average fuel
economy level that the Secretary determines the manufacturers
can achieve in that model year, consistent with subsection
(e).
``(2) Average fuel economy standard for model years 2012
through 2014.--Not later than April 1, 2010, the Secretary
shall establish average fuel economy standards for
nonpassenger automobiles for each of the model years 2012,
2013, and 2014. Each such standard shall be set at the
maximum feasible average fuel economy level that the
Secretary determines the manufacturers can achieve in each
such model year.
``(3) Average fuel economy standard for model year 2015.--
Not later than April 1, 2013, the Secretary shall establish
the average fuel economy standard for nonpassenger
automobiles for model year 2015--
``(A) at least 25.3 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(4) Average fuel economy standard for model years 2016
through 2019.--Not later than April 1, 2014, the Secretary
shall establish average fuel economy standards for
nonpassenger automobiles for each of the model years 2016,
2017, 2018, and 2019. Each such standard shall be set at the
maximum feasible average fuel economy level that the
Secretary determines the manufacturers can achieve in each
such model year.
``(5) Average fuel economy standard for model year 2020.--
Not later than April 1, 2018, the Secretary shall establish
the average fuel economy standard for nonpassenger
automobiles for model year 2020--
``(A) at least 27.7 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(6) Average fuel economy standard for model years 2021
through 2024.--Not later than April 1, 2019, the Secretary
shall establish average fuel economy standards for
nonpassenger automobiles for each of the model years 2021,
2022, 2023, and 2024. Each such standard shall be set at the
maximum feasible average fuel economy level that the
Secretary determines the manufacturers can achieve in each
such model year.
``(7) Average fuel economy standard for model years 2025
and thereafter.--Not later than April 1, 2023, the Secretary
shall establish the average fuel economy standard for
nonpassenger automobiles for model year 2025 and each
subsequent model year--
``(A) at least 30 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).''; and
(2) by amending subsection (b) to read as follows:
``(b) Passenger Automobiles.--
``(1) Annual prescription of average fuel economy
standards.--
``(A) In general.--Not later than 18 months before the
beginning of each model year after model year 2011, the
Secretary of Transportation shall prescribe by regulation
average fuel economy standards for passenger automobiles
manufactured by a manufacturer in that model year.
``(B) Authority for prescription of differing standards
based on class.--The Secretary may prescribe separate
standards for different classes of passenger automobiles.
``(C) Standards based on vehicle attributes.--The Secretary
may prescribe such standards based on vehicle attributes
pursuant to subsection (j).
``(D) Minimum standard.--Each standard prescribed under
this paragraph shall be the maximum feasible average fuel
economy level that the Secretary determines the manufacturers
can achieve in that model year, consistent with subsection
(e).
``(2) Average fuel economy standard for model year 2012.--
Not later than April 1, 2010, the Secretary shall establish
the average fuel economy standard for passenger automobiles
for model year 2012--
``(A) at least 29 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(3) Average fuel economy standard for model years 2013
through 2016.--Not later than April 1, 2011, the Secretary
shall establish average fuel economy standards for passenger
automobiles for each of the model years 2013, 2014, 2015, and
2016. Each such standard shall be set at the maximum feasible
average fuel economy level that the Secretary determines the
manufacturers can achieve in each such model year.
``(4) Average fuel economy standard for model years 2017.--
Not later than April 1, 2015, the Secretary shall establish
the average fuel economy standard for passenger automobiles
for model year 2017--
``(A) at least 32.5 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by
[[Page S7976]]
the average fuel economy standard described in subparagraph
(A).
``(5) Average fuel economy standard for model years 2018
through 2021.--Not later than April 1, 2016, the Secretary
shall establish average fuel economy standards for passenger
automobiles for model years 2018, 2019, 2020, and 2021. Each
such standard shall be set at the maximum feasible average
fuel economy level that the Secretary determines the
manufacturers can achieve in each such model year.
``(6) Average fuel economy standard for model years 2022
and thereafter.--Not later than April 1, 2020, the Secretary
shall establish the average fuel economy standard for
passenger automobiles for model year 2022 and each subsequent
model year--
``(A) at least 36 miles per gallon, consistent with
paragraph (1)(D); or
``(B) if the Secretary prescribes average fuel economy
standards on the basis of vehicle attributes pursuant to
subsection (j), at a level that yields estimated fuel savings
not less than those that would be achieved by the average
fuel economy standard described in subparagraph (A).
``(7) Minimum for average fuel economy standards based on
vehicle attributes.--
``(A) In general.--Notwithstanding any other provision of
this section, for any model year in which the Secretary
prescribes average fuel economy standards for passenger
automobiles on the basis of vehicle attributes pursuant to
subsection (j), the average fuel economy standard for
passenger automobiles manufactured by a manufacturer in that
model year shall also provide for an alternative minimum
standard that shall apply only to a manufacturer's
domestically manufactured passenger automobiles, as
calculated under section 32904 as in effect on the day before
the date of the enactment of the Renewable Fuels, Consumer
Protection, and Energy Efficiency Act of 2007.
``(B) Alternative minimum standard.--The alternative
minimum standard referred to in subparagraph (A) shall be the
greater of--
``(i) 27.5 miles per gallon; or
``(ii) 92 percent of the average fuel economy projected by
the Secretary for the combined domestic and foreign fleets
manufactured for sale in the United States by all
manufacturers in that model year, which projection shall be
published in the Federal Register when the standard for that
model year is promulgated in accordance with this section.
``(C) Applicability.--The alternative minimum standard
under this paragraph shall apply to a manufacturer's
domestically manufactured passenger automobiles only if the
passenger automobile standard established on the basis of
vehicle attributes pursuant to subsection (j), excluding any
credits transferred by the manufacturer pursuant to
subsection (g) from other categories of automobiles described
in paragraph (5)(B), would allow that manufacturer to comply
with a less stringent passenger automobile standard than the
alternative minimum standard.''.
(b) Repeal of Authority To Amend Passenger Automobile Fuel
Economy Standards.--
(1) In general.--Section 32902 of title 49, United States
Code, is amended--
(A) by striking subsection (c); and
(B) by redesignating subsections (d) through (j) as
subsections (c) through (i), respectively.
(2) Conforming amendments.--
(A) Section 32901(a)(12) of such title is amended by
striking ``section 32902(d)'' and inserting ``section
32902(c)''.
(B) Section 32902 of such title is amended--
(i) in subsection (c)(1), as redesignated by paragraph
(1)(B), by striking ``under subsection (b) or (c)'' and
inserting ``under subsection (b)'';
(ii) in subsection (d)(2), as redesignated by paragraph
(1)(B), by striking ``under subsection (a), (b), (c), or
(d)'' and inserting ``under subsection (a), (b), or (c)'';
(iii) in subsection (f), as redesignated by paragraph
(1)(B)--
(I) in paragraph (1)--
(aa) by striking ``under subsection (a) or (d)'' and
inserting ``under subsection (a), (b), or (c)''; and
(bb) by striking ``of subsection (a) or (d)'' and inserting
``of subsection (a), (b), or (c)''; and
(II) in paragraph (2), by striking ``(and submit the
amendment to Congress when required under subsection (c)(2)
of this section)'';
(iv) in subsection (g), as redesignated by paragraph
(1)(B), by striking ``carrying out subsections (c), (f), and
(g)'' and inserting ``carrying out subsections (a), (b), (e),
and (f)''; and
(v) in subsection (i), as redesignated by paragraph (1)(B),
by striking ``under subsection (a), (c), or (g) of this
section'' and inserting ``under subsection (a), (b), or
(f)''.
(C) Section 32904(a)(1)(B) of such title is amended by
striking ``section 32902(b)-(d)'' and inserting ``subsections
(b) and (c) of section 32902''.
(D) Section 32907(a)(4) of such title is amended by
striking ``section 32902(d)'' and inserting ``section
32902(c)''.
(E) Section 32909(b) of such title is amended by striking
``, except that a petition for review'' and all that follows
through ``referred to in section 32902(c)(2)''.
(F) Section 32917(b)(1)(B) of such title is amended by
striking ``or (c)''.
(c) Authority of the Secretary To Prescribe Standards Based
on Vehicle Attributes.--Section 32902 of title 49, United
States Code, as amended by this section, is further amended
by adding at the end the following:
``(j) Authority of the Secretary To Prescribe Standards
Based on Vehicle Attributes.--
``(1) In general.--The authority of the Secretary of
Transportation to prescribe by regulation average fuel
economy standards for passenger automobiles and nonpassenger
automobiles includes the authority to prescribe standards
based on vehicle attributes related to fuel economy and to
express any such attribute-based standard in the form of a
mathematical function.
``(2) Transition period.--If the Secretary prescribes
standards for passenger automobiles on the basis of vehicle
attributes, the Secretary shall provide a transition period
during the first 3 model years in which an attribute-based
standard would apply during which each manufacturer may elect
whether to comply with the attribute-based standard or with
the single corporate average fuel economy level prescribed
under subsection (b).
``(3) Prescription of standards for multiple years.--The
authority of the Secretary to prescribe by regulation average
fuel economy standards for automobiles includes the authority
to prescribe standards by issuing regulations governing more
than 1 model year at a time, up to 5 consecutive model
years.''.
(d) Technical and Conforming Amendments.--
(1) Section 32901(a) of title 49, United States Code, is
amended--
(A) by redesignating paragraph (16) as paragraph (17); and
(B) by inserting after paragraph (15) the following:
``(16) `nonpassenger automobile' means an automobile that
is not a passenger automobile; and''.
(2) Section 32903 of title 49, United States Code, is
amended--
(A) by striking ``section 32902(b)-(d) of this title'' each
place it appears and inserting ``subsections (b) and (c) of
section 32902'';
(B) in subsection (a)(2), by striking ``clause (1) of this
subsection,'' and inserting ``paragraph (1)''; and
(C) in subsection (e), by striking ``automobiles that are
not passenger automobiles'' and inserting ``nonpassenger
automobiles''.
(e) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this Act.
(2) Transition for passenger automobiles.--The standard or
standards for passenger automobiles under the authority of
section 32902(b) of title 49, United States Code, in effect
on the day before the date of the enactment of this Act,
shall remain in effect until a standard for passenger
automobiles is established under the authority of section
32902(b) of such title, as amended by this section.
(3) Average fuel economy standard for nonpassenger
automobiles in model years through 2011.--The average fuel
economy standard for nonpassenger automobiles, under the
authority of section 32902(a) of such title for model years
through 2011, shall be the standard described in the final
rule issued by the National Highway Traffic Safety
Administration entitled ``Average Fuel Economy Standards for
Light Trucks Model Years 2008-2011'' (71 Fed. Reg. 17566), as
amended in a notice published by the National Highway Traffic
Safety Administration on April 14, 2006 (71 Fed. Reg. 19449).
SEC. 503. FUEL EFFICIENCY TARGET FOR COMMERCIAL MEDIUM-DUTY
AND HEAVY-DUTY ON-HIGHWAY VEHICLES.
Section 32902 of title 49, United States Code, as amended
by section 502, is further amended by adding at the end the
following:
``(k) Commercial Medium- and Heavy-Duty On-Highway
Vehicles.--
``(1) Study.--Not later than 18 months after the date of
the enactment of the Renewable Fuels, Consumer Protection,
and Energy Efficiency Act of 2007, the Secretary of
Transportation, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection Agency,
shall examine the fuel efficiency of commercial medium- and
heavy-duty on-highway vehicles and determine--
``(A) the appropriate test procedures and methodologies for
measuring commercial medium- and heavy-duty on-highway
vehicle fuel efficiency;
``(B) the appropriate metric for measuring and expressing
commercial medium- and heavy-duty on-highway vehicle fuel
efficiency performance, taking into consideration, among
other things, the work performed by such on-highway vehicles
and types of operations in which they are used;
``(C) the range of factors, including, without limitation,
design, functionality, use, duty cycle, infrastructure, and
total overall energy consumption and operating costs that
effect commercial medium- and heavy-duty on-highway vehicle
fuel efficiency; and
``(D) such other factors and conditions that could have an
impact on a program to improve commercial medium- and heavy-
duty on-highway vehicle fuel efficiency.
``(2) Rulemaking.--Not later than 24 months after
completion of the study required under paragraph (1), the
Secretary of Transportation, in consultation with the
Secretary of Energy and the Administrator
[[Page S7977]]
of the Environmental Protection Agency, and based on the
results of that study, shall determine in a rulemaking
procedure how to implement a commercial medium- and heavy-
duty on-highway vehicle fuel efficiency improvement program
and, as appropriate, shall adopt test methods, measurement
metrics, fuel efficiency targets, and compliance and
enforcement protocols that are appropriate, cost-effective,
and technologically feasible for commercial medium- and
heavy-duty on-highway vehicles.
``(3) Lead-time; regulatory stability.--Any commercial
medium- and heavy-duty on-highway vehicle fuel efficiency
regulatory program adopted pursuant to this subsection shall
provide no less than 4 full model years of regulatory lead-
time and 3 full model years of regulatory stability.
``(4) Commercial medium- and heavy-duty on-highway vehicle
defined.--In this subsection, the term `commercial medium-
and heavy-duty on-highway vehicle' means a commercial on-
highway vehicle with a gross vehicle weight rating of more
than 10,000 pounds.''.
SEC. 504. CREDIT AVAILABILITY.
(a) In General.--Section 32903 of title 49, United States
Code, is amended--
(1) by striking ``section 32902(b)-(d) of this title'' each
place it appears and inserting ``subsections (b) and (c) of
section 32902'';
(2) in subsection (a)--
(A) by striking ``3 consecutive model years'' each place it
appears and inserting ``5 consecutive model years''; and
(B) in paragraph (2), by striking ``clause (1) of this
subsection,'' and inserting ``paragraph (1)'';
(3) in subsection (b)--
(A) in paragraph (1), by striking ``paragraph (2) of this
subsection'' and inserting ``paragraph (2) and subsection
(g)''; and
(B) in paragraph (2), by striking ``3 model years'' and
inserting ``5 model years'';
(4) in subsection (e), by striking ``automobiles that are
not passenger automobiles'' and inserting ``nonpassenger
automobiles''; and
(5) by adding at the end the following:
``(g) Credit Transferring Within a Manufacturer's Fleet.--
``(1) Average fuel economy credit transferring program.--
The Secretary of Transportation shall establish, by
regulation, a corporate average fuel economy credit
transferring program to allow any manufacturer whose
automobiles exceed any of the average fuel economy standards
prescribed under section 32902 to transfer the credits earned
under this section and to apply them within that
manufacturer's fleet to a compliance category of automobiles
that fails to achieve the prescribed standards.
``(2) Availability of credits transferred.--Credits
transferred under this section are available to be used in
the same model years that the manufacturer could have applied
them under subsections (a), (b), (d) and (e) as well as for
the model year in which the manufacturer earned them. The
maximum increase in any compliance category attributable to
transferred credits is 1.0 mile per gallon in any single
model year.
``(3) Limitation on credit transfers to category of
passenger automobiles.--In the case of transfers to the
category of automobiles described in paragraph 5(B)(i), the
transfer is limited to the extent that the fuel economy level
of the manufacturer's fleet of passenger automobiles
manufactured domestically shall comply with the provisions
established under section 32902(b)(7), excluding any
transfers from other categories of automobiles described in
paragraph 5(B).
``(4) Effective date.--A credit transferred in conformance
with this section may only be so transferred if such credit
is earned no earlier than the first model year after the date
of the enactment of the Renewable Fuels, Consumer Protection,
and Energy Efficiency Act of 2007.
``(5) Definitions.--In this subsection:
``(A) Fleet.--The term `fleet' means all automobiles
manufactured by a manufacturer in a given model year.
``(B) Compliance category of automobiles.--The term
`compliance category of automobiles' means any of the 3
categories of automobiles for which compliance is separately
calculated under this chapter, namely--
``(i) passenger automobiles manufactured domestically;
``(ii) passenger automobiles not manufactured domestically;
and
``(iii) nonpassenger automobiles.''.
(b) Flexible Fueled Vehicles.--
(1) Extension of alternative fuel automobiles manufacturing
incentives.--Section 32905 of title 49, United States Code,
is amended--
(A) by striking ``1993-2010'' each place it appears and
inserting ``1993 through 2020.'';
(B) by striking subsections (f) and (g); and
(C) by redesignating subsection (h) as subsection (f).
(2) Extension of maximum increase period.--Section 32906(a)
of title 49, United States Code, is amended--
(A) by striking ``1993-2010'' and inserting ``1993 through
2020'';
(B) in paragraph (1)--
(i) in subparagraph (A), by striking ``(A)''; and
(ii) by striking subparagraph (B); and
(C) in paragraph (2), by striking ``described--'' and all
that follows and inserting ``is more than 1.2 miles per
gallon, the limitation in paragraph (1) applies.''.
SEC. 505. RESEARCH ON AND DEVELOPMENT OF LEAP-AHEAD
TECHNOLOGY.
(a) Program.--The Secretary of Energy (referred to in this
section as the ``Secretary''), in cooperation with heads of
other Federal agencies, shall carry out a comprehensive
program to develop advanced vehicle technologies (including
associated components and parts) that will offer--
(1) the potential for significantly-improved fuel economy;
and
(2) significant reductions in emissions.
(b) Components.--The program carried out under subsection
(a) shall include research and development in the areas of--
(1) advanced lightweight materials;
(2) advanced battery technology and battery systems;
(3) hybrid systems, including--
(A) power electronics, electric motors, power control
units, and power controls;
(B) hydraulic accumulators or other energy storage devices;
and
(C) testing and analysis;
(4) plug-in hybrids;
(5) advanced clean diesel;
(6) hydrogen internal combustion engines;
(7) fuel cell technology;
(8) hydrogen storage;
(9) fuel cell membranes;
(10) cellulosic ethanol;
(11) biodiesel fuel;
(12) biodiesel fuel and technology;
(13) ethanol and biofuels technology; and
(14) such other related areas as the Secretary determines
to be appropriate.
(c) Advanced Lightweight Materials.--In carrying out this
section, the Secretary shall carry out an advanced
lightweight materials research and development program the
primary focuses of which shall include--
(1) the provision of--
(A) technical advice for compliance with applicable Federal
and State environmental requirements;
(B) assistance in identifying supply sources and securing
long-term contracts; and
(C) public outreach, education, and labeling materials; and
(2) the development of--
(A) low-cost, durable, abuse-tolerant lithium ion-based
chemistries or other advanced chemistries;
(B) advanced lightweight steels that provide a 30-percent
weight reduction;
(C) advanced lightweight metals (such as magnesium,
aluminum, and titanium);
(D) advanced composites, particularly carbon fiber
precursors and forming; and
(E) advanced forming and joining processes for lightweight
materials, including mixed materials (such as combinations of
steel, aluminum, magnesium, and carbon fiber into a single
assembly or vehicle).
(d) Advanced Batteries.--
(1) In general.--In carrying out this section, the
Secretary shall carry out an advanced battery program the
primary focuses of which shall be--
(A) research in the chemistry of exploratory battery
technologies (other than lithium ion batteries); and
(B) battery and battery systems production process research
and development.
(2) Industry alliance.--In carrying out the advanced
battery program under this subsection, the Secretary shall
competitively select an Industry Alliance to represent
participants who are private, for-profit firms headquartered
in the United States, the primary business of which is the
manufacturing of batteries and battery systems.
(3) Research.--
(A) Grants.--The Secretary shall carry out research
activities of the Initiative through competitively-awarded
grants to--
(i) researchers, including Industry Alliance participants;
(ii) small businesses;
(iii) National Laboratories; and
(iv) institutions of higher education.
(B) Industry alliance.--The Secretary shall annually
solicit from the Industry Alliance--
(i) comments to identify advanced battery technology needs
relevant to electric drive technology;
(ii) an assessment of the progress of research activities
of the Initiative; and
(iii) assistance in annually updating advanced battery
technology road maps.
(4) Availability to the public.--The information and road
maps developed under this subsection shall be available to
the public.
(5) Preference.--In making awards under this subsection,
the Secretary shall give preference to participants in the
Industry Alliance.
(6) Cost sharing.--In carrying out this subsection, the
Secretary shall require cost sharing in accordance with
section 120(b) of title 23, United States Code.
(e) Hybrid Systems.--In carrying out this section, the
Secretary shall carry out a program relating to hybrid
systems, the primary focus of which shall be research on and
development of--
(1) advanced electric traction systems and wheel motors;
(2) advanced power electronics;
(3) systems integration; and
(4) hydraulic accumulators or other energy storage devices.
(f) Plug-In Hybrids.--In carrying out this section, the
Secretary shall carry out a program relating to plug-in
hybrids, the primary focus of which shall be--
(1) research on and development of advanced batteries with
appropriate power to energy ratios necessary for minimum
electric range and vehicle performance, such as acceleration;
and
[[Page S7978]]
(2) the early demonstration of vehicles and infrastructure
through the provision of procurement assistance to fleet
purchasers.
(g) Advanced Clean Diesel.--In carrying out this section,
the Secretary shall carry out a program of research and
development relating to diesel combustion and emissions, the
primary focuses of which shall be--
(1) the development of clean-burn and after treatment
technologies, including advanced low-temperature combustion
(including homogeneous charge compression-ignition);
(2) the development of mixed mode operation that combines
attributes of compression- and spark-ignition engine
technologies;
(3) the integration of advanced technologies, including
increased expansion ratio, variable valve timing, reduced
friction, and improved exhaust gas heat recovery;
(4) the development of NO<inf>x</inf> after treatment
systems, including absorber-catalysts, selective catalytic
reduction, and lean NO<inf>x</inf> catalysts;
(5) the development of particulate matter after treatment
systems;
(6) the development of powertrain integration of engine and
after treatment systems; and
(7) enhancements in durability and reliability and
reduction of costs.
(h) Hydrogen Internal Combustion Engines.--In carrying out
this section, the Secretary shall carry out a program of
research and development relating to hydrogen internal
combustion engines, the primary focuses of which shall be--
(1) to advance hydrogen internal combustion engine
technology to a level at which the robustness and durability
of such an engine would be acceptable to real-world
customers; and
(2) to use those engines to provide an affordable
transition to a hydrogen economy by creating a demand for
hydrogen refueling infrastructure and bridging to hydrogen-
powered fuel cells.
(i) Fuel Cell Technology.--In carrying out this section,
the Secretary shall carry out a program of research and
development relating to fuel cell technology, the primary
focuses of which shall be research on and development of--
(1) fuel cell stack components and fuel cell manufacturing
processes; and
(2) materials resistant to hydrogen embrittlement.
(j) Hydrogen Storage.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to hydrogen storage, the primary focus
of which shall be research on and development of competitive
storage methods for sufficient quantities of hydrogen onboard
a vehicle (including a demonstration of hydrogen refueling
infrastructure for not less than 10 nor more than 20
stations)--
(1) to enable increased development and use of hydrogen
internal combustion engines and hydrogen-powered fuel cell
vehicles; and
(2) to meet or surpass the customer-discernable attributes
of vehicles available as of the date of enactment of this Act
with respect to range and cost per mile.
(k) Fuel Cell Membranes.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to fuel cell membranes, the primary
focuses of which shall be--
(1) the achievement of a fundamental understanding of the
catalytic materials for fuel cells; and
(2) the development of low-cost fuel cell membranes.
(l) Cellulosic Ethanol.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to cellulosic ethanol, the primary focus
of which shall be research on and development of enzymes
necessary for the production of cellulosic ethanol.
(m) Biodiesel Fuel.--In carrying out this section, the
Secretary shall carry out a program of research and
development relating to biodiesel fuel, the primary focuses
of which shall be--
(1) the development of a national B-20 standard;
(2) fundamental research on biomass-to-liquid alternatives;
(3) total lifecycle analyses of the total potential for
petroleum replacement, total fossil fuel replacement, or
greenhouse gas reductions for biodiesel options;
(4) an assessment of feedstock options; and
(5) an assessment of the effects on engine durability and
reliability including the effects due to fuel quality
variations, stability, and degradation parameters.
(n) Biodiesel Fuel and Technology.--In carrying out this
section, the Secretary shall carry out a program of research
and development relating to biodiesel fuel, the primary
focuses of which shall be--
(1) the evaluation and optimization of B-100 processing
variables to enhance blendstock stability, maintain uniform
quality and specifications, and reduce cost;
(2) the development and expansion of processing, blending,
and distribution infrastructure;
(3) the development of standardized labeling and dispensing
of equipment information;
(4) establishment of a consumer education outreach program;
(5) assessment and evaluation of biodiesel on advanced
engine (such as high-pressure injector) and after treatment
components; and
(6) assessment of the effects of biodiesel on advanced
combustion clean-burn strategies.
(o) Ethanol and Biofuels Technology.--In carrying out this
section, the Secretary shall carry out a program of research
and development relating to ethanol and biofuels technology,
the primary focus of which shall be research and development
into--
(1) ethanol and biofuels transport systems, such as truck,
rail, and pipelines;
(2) advanced high-efficiency combustion research for fuels,
such as E-85;
(3) materials compatibility for E-85 fuel;
(4) E-85 vehicle engineering and calibration to speed
conversion of systems; and
(5) advanced combustion and after-treatment systems to
support fuel efficiency gains
(p) Authorization of Appropriations.--There are authorized
to be appropriated--
(1) to carry out subsection (a), $60,000,000 for each of
fiscal years 2008 through 2012;
(2) to carry out subsection (b), $143,000,000 for each of
the fiscal years 2008 through 2012;
(3) to conduct research and development into hybrid systems
(power electronics, electric motors, hydraulic accumulators,
other energy storage devices, testing, and analysis),
$64,000,000 for each of the fiscal years 2008 through 2012;
(4) to conduct research and development into plug-in
hybrids, $56,000,000 for each of the fiscal years 2008
through 2012;
(5) to conduct research and development into advanced clean
diesel, $54,000,000 for each of the fiscal years 2008 through
2010;
(6) to conduct research and development into hydrogen
internal combustion engines, $11,000,000 for each of the
fiscal years 2008 through 2012;
(7) to conduct research and development into fuel cell
technology, $40,000,000 for each of the fiscal years 2008
through 2012;
(8) to conduct research and development into hydrogen
storage, $88,000,000 for each of the fiscal years 2008
through 2012;
(9) to conduct research and development into fuel cell
membranes, $64,000,000 for each of the fiscal years 2008
through 2012;
(10) to conduct research and development into cellulosic
ethanol, $340,000,000 for each of the fiscal years 2008
through 2012;
(11) to conduct research and development into biodiesel
fuel and technology, $7,000,000 for each of the fiscal years
2008 through 2012; and
(12) to conduct research and development into ethanol
biofuels technology, $23,000,000 for each of the fiscal years
2008 through 2012.
SEC. 506. LABELS FOR FUEL ECONOMY AND GREENHOUSE GAS
EMISSIONS.
Section 32908(b) of title 49, United States Code, is
amended--
(1) in paragraph (1)--
(A) by redesignating subparagraph (F) as subparagraph (H);
and
(B) by inserting after subparagraph (E) the following:
``(F) a label (or a logo imprinted on a label required by
this paragraph) that--
``(i) reflects an automobile's performance on the basis of
criteria developed by the Administrator to reflect the fuel
economy and greenhouse gas and other emissions consequences
of operating the automobile over its likely useful life;
``(ii) permits consumers to compare performance results
under clause (i) among all automobiles; and
``(iii) is designed to encourage the manufacture and sale
of automobiles that meet or exceed applicable fuel economy
standards under section 32902.
``(G) a fuelstar under paragraph (5).''; and
(2) by adding at the end the following:
``(4) Green Label Program.--
``(A) Marketing analysis.--Not later than 2 years after the
date of the enactment of the Ten-in-Ten Fuel Economy Act, the
Administrator shall implement a consumer education program
and execute marketing strategies to improve consumer
understanding of automobile performance described in
paragraph (1)(F).
``(B) Eligibility.--Not later than 3 years after the date
described in subparagraph (A), the Administrator shall issue
requirements for the label or logo required under paragraph
(1)(F) to ensure that an automobile is not eligible for the
label or logo unless it--
``(i) meets or exceeds the applicable fuel economy
standard; or
``(ii) will have the lowest greenhouse gas emissions over
the useful life of the vehicle of all vehicles in the vehicle
attribute class to which it belongs in that model year.
``(5) Fuelstar Program.--
``(A) In general.--The Secretary shall establish a program,
to be known as the `Fuelstar Program', under which stars
shall be imprinted on or attached to the label required by
paragraph (1).
``(B) Green stars.--Under the Fuelstar Program, a
manufacturer may include on the label maintained on an
automobile under paragraph (1)--
``(i) 1 green star for any automobile that meets the
average fuel economy standard for the model year under
section 32902;
``(ii) 1 additional green star for each 2 miles per gallon
by which the automobile exceeds such standard; and
``(iii) 1 additional green star for the use of thermal
management technologies, including energy efficient air
conditioning systems, glass, and powertrain systems.
``(C) Gold stars.--Under the Fuelstar Program, a
manufacturer may include a gold star on the label maintained
on an automobile under paragraph (1) if the automobile
[[Page S7979]]
attains a fuel economy of at least 50 miles per gallon.''.
SEC. 507. NATIONAL ACADEMY OF SCIENCES STUDIES.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary of Transportation shall
execute an agreement with the National Academy of Sciences to
develop a report evaluating vehicle fuel economy standards,
including--
(1) an assessment of automotive technologies and costs to
reflect developments since the Academy's 2002 report
evaluating the corporate average fuel economy standards was
conducted;
(2) an analysis of existing and potential technologies that
may be used practically to improve automobile fuel economy;
(3) an analysis of how such technologies may be practically
integrated into the automotive manufacturing process; and
(4) an assessment of how such technologies may be used to
meet the new fuel economy standards under chapter 329 of
title 49, United States Code, as amended by this title.
(b) Quinquennial Updates.--After submitting the initial
report, the Academy shall update the report at 5 year
intervals thereafter through 2025.
(c) Report.--The Academy shall submit the report to the
Secretary, the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Energy and Commerce, with its findings and recommendations no
later than 18 months after the date on which the Secretary
executes the agreement with the Academy.
SEC. 508. STANDARDS FOR EXECUTIVE AGENCY AUTOMOBILES.
(a) In General.--Section 32917 of title 49, United States
Code, is amended to read as follows:
``Sec. 32917. Standards for Executive agency automobiles
``(a) Fuel Efficiency.--The head of an Executive agency
shall ensure that each new automobile procured by the
Executive agency is as fuel efficient as practicable.
``(b) Definitions.--In this section:
``(1) Executive agency.--The term `Executive agency' has
the meaning given that term in section 105 of title 5.
``(2) New automobile.--The term `new automobile', with
respect to the fleet of automobiles of an executive agency,
means an automobile that is leased for at least 60
consecutive days or bought, by or for the Executive agency,
after September 30, 2008. The term does not include any
vehicle designed for combat-related missions, law enforcement
work, or emergency rescue work.''.
(b) Report.--The Administrator of the General Services
Administration shall develop a report describing and
evaluating the efforts of the heads of the Executive agencies
to comply with section 32917 of title 49, United States Code,
for fiscal year 2009. The Administrator shall submit the
report to Congress no later than December 31, 2009.
______
SA 1714. Mr. SCHUMER (for Mr. Kennedy) proposed an amendment to the
bill H.R. 1429, to reauthorize the Head Start Act, to improve program
quality, to expand access, and for other purposes; as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Head Start for School
Readiness Act''.
SEC. 2. STATEMENT OF PURPOSE.
Section 636 of the Head Start Act (42 U.S.C. 9831) is
amended to read as follows:
``SEC. 636. STATEMENT OF PURPOSE.
``It is the purpose of this subchapter to promote the
school readiness of low-income children by enhancing their
cognitive and social development--
``(1) with a learning environment that supports cognitive
development (including the growth of language, pre-literacy,
and premathematics skills) and the growth of social,
emotional, and physical skills; and
``(2) through the provision to low-income children and
their families of health, educational, nutritional, social,
and other services that are determined, based on family needs
assessments, to be necessary.''.
SEC. 3. DEFINITIONS.
Section 637 of the Head Start Act (42 U.S.C. 9832) is
amended--
(1) in paragraph (2), by inserting ``(including a
community-based organization, as defined in section 9101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801))'' after ``nonprofit'';
(2) in paragraph (3)(C), by inserting ``, including
financial literacy,'' after ``Parent literacy'';
(3) in paragraph (17), by striking ``Mariana Islands,'' and
all that follows and inserting ``Mariana Islands.''; and
(4) by adding at the end the following:
``(18) The term `deficiency' means--
``(A) a systemic or substantial material failure of an
agency in an area of performance that the Secretary
determines involves--
``(i) a threat to the health, safety, or civil rights of
children or staff;
``(ii) a denial to parents of the exercise of their full
roles and responsibilities related to program operations;
``(iii) a failure to comply with standards related to early
childhood development and health services, family and
community partnerships, or program design and management;
``(iv) the misuse of funds under this subchapter;
``(v) loss of legal status or financial viability, loss of
permits, debarment from receiving Federal grants or
contracts, or the improper use of Federal funds; or
``(vi) failure to meet any other Federal or State
requirement that the agency has shown an unwillingness or
inability to correct, after notice from the Secretary, within
the period specified;
``(B) systemic failure of the board of directors of an
agency to fully exercise its legal and fiduciary
responsibilities;
``(C) substantial failure of an agency to meet the
administrative requirements of section 644(b);
``(D) failure of an agency to demonstrate that the agency
attempted to meet the coordination and collaboration
requirements with entities described in section
640(a)(5)(D)(ii)(I); or
``(E) having an unresolved area of noncompliance.
``(19) The term `homeless child' means a child described in
section 725(2) of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11434a(2)).
``(20) 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)).
``(21) The term `interrater reliability' means the extent
to which 2 or more independent raters or observers
consistently obtain the same result when using the same
assessment tool.
``(22) The term `limited English proficient', used with
respect to a child, means a child--
``(A) who is enrolled or preparing to enroll in a Head
Start program (which may include an Early Head Start
program), or other early care and education program;
``(B)(i) who was not born in the United States or whose
native language is a language other than English;
``(ii)(I) who is a Native American, Alaska Native, or a
native resident of an outlying area (as defined in section
9101 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7801)); and
``(II) who comes from an environment where a language other
than English has had a significant impact on the child's
level of English language proficiency; or
``(iii) who is migratory, whose native language is a
language other than English, and who comes from an
environment where a language other than English is dominant;
and
``(C) whose difficulties in speaking or understanding the
English language may be sufficient to deny such child--
``(i) the ability to successfully achieve in a classroom in
which the language of instruction is English; or
``(ii) the opportunity to participate fully in society.
``(23) The term `unresolved area of noncompliance' means
failure to correct a noncompliance item within 120 days, or
within such additional time (if any) authorized by the
Secretary, after receiving from the Secretary notice of such
noncompliance item, pursuant to section 641A(d).''.
SEC. 4. FINANCIAL ASSISTANCE FOR HEAD START PROGRAMS.
Section 638 of the Head Start Act (42 U.S.C. 9833) is
amended by inserting ``for a period of 5 years'' after
``provide financial assistance to such agency''.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
Section 639 of the Head Start Act (42 U.S.C. 9834) is
amended to read as follows:
``SEC. 639. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated
for carrying out the provisions of this subchapter
$7,350,000,000 for fiscal year 2008, $7,650,000,000 for
fiscal year 2009, $7,995,000,000 for fiscal year 2010, and
such sums as may be necessary for each of fiscal years 2011
and 2012.
``(b) Specific Programs.--From the amount appropriated
under subsection (a), the Secretary shall make available to
carry out research, demonstration, and evaluation activities,
including longitudinal studies under section 649, not more
than $20,000,000 for fiscal year 2008, and such sums as may
be necessary for each of fiscal years 2009 through 2012, of
which not more than $7,000,000 for each of fiscal years 2008
through 2012 shall be available to carry out impact studies
under section 649(g).''.
SEC. 6. ALLOTMENT OF FUNDS.
(a) Allotment.--Section 640(a) of the Head Start Act (42
U.S.C. 9835(a)) is amended--
(1) in paragraph (2)--
(A) by striking subparagraph (A) and inserting the
following:
``(A) Indian Head Start programs, services for children
with disabilities, and migrant and seasonal Head Start
programs, except that the Secretary shall reserve for each
fiscal year for use by Indian Head Start and migrant and
seasonal Head Start programs (referred to in this paragraph
as `covered programs'), on a nationwide basis, a sum that is
the total of a percentage specified by the Secretary that is
not less than 4 percent of the amount appropriated under
section 639 for that fiscal year (for Indian Head Start
programs) and a percentage specified by the Secretary that is
not less than 5 percent of that appropriated amount (for
migrant and seasonal Head Start programs) (referred to in
this paragraph as the `specified percentages'), except that--
``(i) if reserving the specified percentages would reduce
the number of children served
[[Page S7980]]
by Head Start programs, relative to the number of children
served on the date of enactment of the Head Start for School
Readiness Act, taking into consideration an appropriate
adjustment for inflation, the Secretary shall reserve
percentages that approach, as closely as practicable, the
specified percentages and that do not cause such a reduction;
and
``(ii) notwithstanding any other provision of this
subparagraph, the Secretary shall reserve for each fiscal
year for use by Indian Head Start programs and by migrant and
seasonal Head Start programs, on a nationwide basis, not less
than the amount that was obligated for use by Indian Head
Start programs and by migrant and seasonal Head Start
programs for the previous fiscal year;'';
(B) by striking subparagraph (C) and inserting the
following:
``(C) training and technical assistance activities that are
sufficient to meet the needs associated with program
expansion and to foster program and management improvement
activities as described in any of paragraphs (1) through (18)
of section 648(d), in an amount for each fiscal year that is
not less than 2 percent of the amount appropriated under
section 639 for such fiscal year, of which--
``(i) 50 percent shall be made available to Head Start
agencies to use directly, or by establishing local or
regional agreements with community experts, institutions of
higher education, or private consultants, for any of the
following training and technical assistance activities,
including--
``(I) activities that ensure that Head Start programs meet
or exceed the performance standards described in section
641A(a)(1);
``(II) activities that ensure that Head Start programs have
adequate numbers of trained, qualified staff who have skills
in working with children and families, including children who
are limited English proficient and their families and
children with disabilities;
``(III) activities to pay expenses, including direct
training for expert consultants working with any staff, to
improve the management and implementation of Head Start
services and systems;
``(IV) activities that help ensure that Head Start programs
have qualified staff who can promote language skills and
literacy growth of children and who can provide children with
a variety of skills that have been identified as predictive
of later reading achievement, school success, and the skills,
knowledge, abilities, development, and progress described in
section 641A(a)(1)(B)(ii);
``(V) activities to improve staff qualifications and to
assist with the implementation of career development programs
and to encourage the staff to continually improve their
skills and expertise, including developing partnerships with
programs that recruit, train, place, and support college
students in Head Start centers to deliver an innovative early
childhood development program to preschool children;
``(VI) activities that help local programs ensure that the
arrangement, condition, and implementation of the learning
environments in Head Start programs are conducive to
providing effective program services to children and
families;
``(VII) activities to provide training necessary to improve
the qualifications of Head Start staff and to support staff
training, child counseling, health services, and other
services necessary to address the needs of children enrolled
in Head Start programs, including children from families in
crises, children who experience chronic violence or
homelessness, children who experience substance abuse in
their families, and children under 3 years of age, where
applicable;
``(VIII) activities to provide classes or in-service-type
programs to improve or enhance parenting skills, job skills,
adult and family literacy, including financial literacy, or
training to become a classroom aide or bus driver in a Head
Start program;
``(IX) additional activities determined appropriate for the
improvement of Head Start agencies' programs, as determined
in the agencies' technical assistance and training plans; or
``(X) any other activities regarding the use of funds as
determined by the Secretary;
``(ii) 50 percent shall be made available to the
Secretary--
``(I) to provide directly training and technical assistance
on early childhood education and care or to support, through
grants or other arrangements, a State system of training and
technical assistance (which may include such a system for a
consortium of States within a region); and
``(II) to assist local programs (including Indian Head
Start programs and migrant and seasonal Head Start programs)
in meeting the performance standards described in section
641A(a)(1); and
``(iii) not less than $3,000,000 of the amount in clause
(ii) appropriated for such fiscal year shall be made
available to carry out activities described in section
648(d)(4);'';
(C) in subparagraph (D), by striking ``agencies;'' and
inserting ``agencies);''; and
(D) by adding at the end of the flush matter at the end the
following: ``In no case shall the Secretary use funds
appropriated under this subchapter to expand or create
additional slots or services in non-Indian and non-migrant
and seasonal Head Start programs until the amounts based on
the specified percentages for Indian Head Start programs and
migrant and seasonal Head Start programs pursuant to
subparagraph (A) are reached. The Secretary shall require
each Head Start agency to report at the end of each budget
year on how funds provided to carry out subparagraph (C)(i)
were used.'';
(2) in paragraph (3)--
(A) in subparagraph (A)(i)(I)--
(i) by striking ``60 percent of such excess amount for
fiscal year 1999'' and all that follows through ``2003;'';
and
(ii) by inserting the following: ``30 percent of such
excess amount for fiscal year 2008, and 40 percent of such
excess amount for each of fiscal years 2009 through 2012;'';
(B) in subparagraph (B)--
(i) in clause (i), by striking ``performance standards''
and all that follows and inserting ``performance standards
pursuant to section 641A(a)(1).'';
(ii) by striking clause (ii) and inserting the following:
``(ii) Ensuring that such programs have adequate numbers of
qualified staff, and that such staff is furnished adequate
training, including training to promote the development of
language, premathematics, and pre-literacy skills in young
children and in working with limited English proficient
children, children in foster care, children referred by child
welfare services, and children with disabilities, when
appropriate.'';
(iii) by striking clause (iii) and inserting the following:
``(iii) Developing and financing the salary scales and
benefits standards under section 644(a) and section 653, in
order to ensure that salary levels and benefits are adequate
to attract and retain qualified staff for such programs.'';
(iv) by striking clause (iv) and inserting the following:
``(iv) Using salary increases to--
``(I) assist with the implementation of quality programs
and improve staff qualifications;
``(II) ensure that staff can promote the language skills
and literacy growth of children and can provide children with
a variety of skills that have been identified, through
scientifically based early reading research, as predictive of
later reading achievement, as well as the skills, knowledge,
abilities, development, and progress described in section
641A(a)(1)(B)(ii); and
``(III) encourage the staff to continually improve their
skills and expertise--
``(aa) through the implementation of career development
programs; and
``(bb) through the completion of postsecondary coursework
in early childhood education.'';
(v) in clause (v)--
(I) by striking ``community-wide'' and inserting
``communitywide''; and
(II) by inserting ``, including collaborations to increase
program participation by underserved populations of eligible
children'' before the period; and
(vi) by striking clauses (vii) and (viii) and inserting the
following:
``(vii) Providing assistance to complete postsecondary
coursework, to enable Head Start teachers to improve
competencies and the resulting child outcomes, including
informing the teachers of the availability of Federal and
State incentive and loan forgiveness programs.
``(viii) Promoting the regular attendance and stability of
all Head Start children with particular attention to highly
mobile children, including children of migrant or seasonal
farmworkers (where appropriate), homeless children, and
children in foster care.
``(ix) Making such other improvements in the quality of
such programs as the Secretary may designate.'';
(C) in subparagraph (C)--
(i) in clause (i)(I), by striking the last sentence and
inserting ``Salary increases, in excess of cost-of-living
allowances, provided with such funds shall be subject to the
specific standards governing salaries and salary increases
established pursuant to section 644(a).'';
(ii) in clause (ii)--
(I) in the matter preceding subclause (I), by striking
``education performance'' and all that follows through
``641A(a)(1)(B)''and inserting ``standards and measures
described in section 641A'';
(II) in subclause (I), by inserting ``, pre-literacy,''
after ``language'';
(III) by striking subclause (II) and inserting the
following:
``(II) to help limited English proficient children attain
the knowledge, skills, abilities, and development specified
in section 641A(a)(1)(B)(ii) and to promote the acquisition
of the English language by such children and their
families;''; and
(IV) by striking subclause (IV) and inserting the
following:
``(IV) to provide education and training necessary to
improve the qualifications of Head Start staff, particularly
assistance to enable more instructors to be fully competent
and to meet the degree requirements under section
648A(a)(2)(A), and to support staff training, child
counseling, and other services necessary to address the
challenges of children participating in Head Start programs,
including children from immigrant, refugee, and asylee
families, children from families in crisis, homeless
children, children in foster care, children referred to Head
Start programs by child welfare agencies, and children who
are exposed to chronic violence or substance abuse.'';
(iii) in clause (iii), by inserting ``, educational staff
who have the qualifications described in section 648A(a),''
after ``ratio'';
[[Page S7981]]
(iv) in clause (v), by striking ``programs, including'' and
all that follows and inserting ``programs.'';
(v) by redesignating clause (vi) as clause (x); and
(vi) by inserting after clause (v) the following:
``(vi) To conduct outreach to homeless families in an
effort to increase the program participation of homeless
children.
``(vii) To conduct outreach to migrant and seasonal
farmworker families and families with limited English
proficient children.
``(viii) To partner with institutions of higher education
and nonprofit organizations, including community-based
organizations, that recruit, train, place, and support
college students, to serve as mentors and reading partners to
preschool children in Head Start programs.
``(ix) To upgrade the qualifications and skills of
educational personnel to meet the professional standards
described in section 648A(a)(1), including certification and
licensure as bilingual education teachers, as teachers of
English as a second language, and for other educational
personnel who serve limited English proficient children.'';
(3) in paragraph (4), in the first sentence--
(A) in subparagraph (A), by striking ``1998'' and inserting
``2007''; and
(B) by striking subparagraph (B) and inserting the
following:
``(B) any amount available after all allotments are made
under subparagraph (A) for such fiscal year shall be
distributed as follows:
``(i) Each State shall receive an amount sufficient to
serve the same number of children in Head Start programs in
each State as were served on the date of enactment of the
Head Start for School Readiness Act, taking into
consideration an appropriate adjustment for inflation.
``(ii) After ensuring that each State has received the
amount described in clause (i), the Secretary shall
distribute the remaining balance, by--
``(I) distributing 65 percent of the balance among the
States serving less than 60 percent (as determined by the
Secretary) of children who are 3 or 4 years of age from
families whose income is below the poverty line, by allotting
to each of those States an amount that bears the same
relationship to that 65 percent as the number of children who
are less than 5 years of age from families whose income is
below the poverty line (referred to in this clause as `young
low-income children') in that State bears to the number of
young low-income children in all those States; and
``(II) distributing 35 percent of the balance among the
States, by allotting to each State an amount that bears the
same relationship to that 35 percent as the number of young
low-income children in that State bears to the number of
young low-income children in all the States.'';
(4) in paragraph (5)--
(A) in subparagraph (A), by inserting after ``paragraph
(4)'' the following: ``(and amounts reserved, before such
allotments, for national administrative offices)'';
(B) by redesignating subparagraphs (E) and (F) as
subparagraphs (G) and (H), respectively;
(C) by striking subparagraphs (B), (C), and (D) and
inserting the following:
``(B)(i) From the reserved sums, the Secretary shall award
a collaboration grant to each State and to each national
administrative office serving Indian Head Start programs and
migrant and seasonal Head Start programs to facilitate
collaboration between Head Start agencies and entities
(including the State or national administrative office) that
carry out other activities designed to benefit low-income
families and children from birth to school entry. The
national administrative offices shall use the funds made
available through the grants to carry out the authorities and
responsibilities described in subparagraphs (B) and (C).
``(ii) Grants described in clause (i) shall be used to--
``(I) assist Head Start agencies to collaborate with
entities involved in State and local planning processes to
better meet the needs of low-income families and children
from birth to school entry;
``(II) assist Head Start agencies to coordinate activities
with the State agency responsible for administering the State
program carried out under the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) and entities
providing resource and referral services in the State, to
make full-working-day and full calendar year services
available to children;
``(III) promote alignment of Head Start services with the
Head Start Child Outcomes Framework and, as appropriate,
State early learning standards;
``(IV) promote better linkages between Head Start agencies
and other child and family agencies, including agencies that
provide health, mental health, or family services, or other
child or family supportive services, such as services
provided under section 619 or part C of the Individuals with
Disabilities Education Act (20 U.S.C. 1419, 1431 et seq.);
and
``(V) carry out the activities of the State Director of
Head Start Collaboration authorized in subparagraph (D).
``(C) In order to improve coordination and delivery of
early childhood education and care to children in the State,
a State that receives a collaboration grant under
subparagraph (B) shall--
``(i) appoint or designate an individual to serve as, or
carry out the responsibilities of, the State Director of Head
Start Collaboration;
``(ii) ensure that the State Director of Head Start
Collaboration holds a position with sufficient authority and
access to ensure that the collaboration described in
subparagraph (B) is effective and involves a range of State
agencies; and
``(iii) involve the State Head Start Association in the
selection of the Director and involve the Association in
determinations relating to the ongoing direction of the
collaboration office involved.
``(D) The State Director of Head Start Collaboration,
shall--
``(i) not later than 1 year after the State receives a
collaboration grant under subparagraph (B), conduct an
assessment that--
``(I) addresses the needs of Head Start agencies in the
State with respect to collaboration, coordination of
services, and alignment of services with the Head Start Child
Outcomes Framework and, as appropriate, State early learning
standards;
``(II) shall be updated on an annual basis; and
``(III) shall be made available to the general public
within the State;
``(ii) develop a strategic plan that is based on the
assessment described in clause (i) that will--
``(I) enhance collaboration and coordination of Head Start
services with other entities providing early childhood
education and care (such as child care or services offered by
museums), health care, mental health care, welfare, child
protective services, education and community service
activities, family literacy services, reading readiness
programs (including such programs offered by public and
school libraries), services relating to children with
disabilities, other early childhood education and care for
limited English proficient children and homeless children,
and services provided for children in foster care and
children referred to Head Start programs by child welfare
agencies, including agencies and State officials responsible
for such services;
``(II) assist Head Start agencies to develop a plan for the
provision of full-working-day, full calendar year services
for children enrolled in Head Start programs who need such
care;
``(III) assist Head Start agencies to align services with
the Head Start Child Outcomes Framework and, as appropriate,
State early learning standards; and
``(IV) enable Head Start agencies in the State to better
access professional development opportunities for Head Start
staff, such as by--
``(aa) working with local Head Start agencies to meet the
degree requirements described in section 648A(a)(2)(A),
including providing distance learning opportunities for Head
Start staff, where needed to make higher education more
accessible to Head Start staff; and
``(bb) enabling the State Head Start agencies to better
conduct outreach to eligible families;
``(iii) promote partnerships between Head Start agencies,
State and local governments, and the private sector to help
ensure that children from low-income families, who are in
Head Start programs or are preschool age, are receiving
comprehensive services to prepare the children to enter
school ready to learn;
``(iv) consult with the chief State school officer, local
educational agencies, and providers of early childhood
education and care, regarding early childhood education and
care at both the State and local levels;
``(v) promote partnerships (such as the partnerships
involved with the Free to Grow initiative) between Head Start
agencies, schools, law enforcement, relevant community-based
organizations, and substance abuse and mental health
treatment agencies to strengthen family and community
environments and to reduce the impact on child development of
substance abuse, child abuse, domestic violence, and other
high risk behaviors that compromise healthy development;
``(vi) promote partnerships between Head Start agencies and
other organizations in order to enhance the Head Start
curriculum, including partnerships to promote inclusion of
more books in Head Start classrooms and partnerships to
promote coordination of activities with the Ready-to-Learn
Television program carried out under subpart 3 of part D of
title II of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6775 et seq.); and
``(vii) identify other resources and organizations (both
public and private) for the provision of in-kind services to
Head Start agencies in the State.
``(E)(i) The Governor of the State shall--
``(I) designate or establish a council to serve as the
State Advisory Council on Early Childhood Education and Care,
for children from birth to school entry (in this subchapter
referred to as the `State Advisory Council'); and
``(II) designate an individual to coordinate activities of
the State Advisory Council, as described in clause (iv)(I).
``(ii) The Governor may designate an existing entity to
serve as the State Advisory Council, if the entity includes
representatives consistent with clause (iii).
``(iii) Members of the State Advisory Council shall
include, to the maximum extent possible--
``(I) the State Director of Head Start Collaboration;
[[Page S7982]]
``(II) a representative of the State educational agency and
local educational agencies;
``(III) a representative of institutions of higher
education;
``(IV) a representative (or representatives) of the State
agency (or agencies) responsible for health or mental health
care;
``(V) a representative of the State agency responsible for
professional standards, certification, and licensing for
early childhood educators;
``(VI) a representative of the State agency responsible for
child care;
``(VII) early childhood educators, including professionals
with expertise in second language acquisition and
instructional strategies in teaching limited English
proficient children;
``(VIII) kindergarten teachers and teachers in grades 1
through 3;
``(IX) health care professionals;
``(X) child development specialists, including specialists
in prenatal, infant, and toddler development;
``(XI) a representative of the State agency responsible for
assisting children with developmental disabilities;
``(XII) a representative of the State agency responsible
for programs under section 619 or part C of the Individuals
with Disabilities Education Act (20 U.S.C. 1419, 1431 et
seq.);
``(XIII) a representative of the State interagency
coordinating councils established under section 641 of the
Individuals with Disabilities Education Act (20 U.S.C. 1441);
``(XIV) a representative of the State Head Start
Association (where appropriate), and other representatives of
Head Start programs in the State;
``(XV) a representative of the State network of child care
resource and referral agencies;
``(XVI) a representative of community-based organizations;
``(XVII) a representative of State and local providers of
early childhood education and care;
``(XVIII) a representative of Indian Head Start programs
(where appropriate) and a representative of migrant and
seasonal Head Start programs (where appropriate);
``(XIX) parents;
``(XX) religious and business leaders;
``(XXI) the head of the State library administrative
agency;
``(XXII) representatives of State and local organizations
and other entities providing professional development to
early childhood educators and child care providers;
``(XXIII) a representative from the Office of Coordinator
for Education of Homeless Children and Youths in the State;
``(XXIV) a State legislator; and
``(XXV) a representative of other entities determined to be
relevant by the Governor of the State.
``(iv)(I) The State Advisory Council shall be responsible
for, in addition to responsibilities assigned to the council
by the Governor of the State--
``(aa) conducting a periodic statewide needs assessment
concerning early childhood education and care for children
from birth to school entry and assessing the availability of
high quality prekindergarten services for low-income children
in the State;
``(bb) identifying barriers to, and opportunities for,
collaboration and coordination among entities carrying out
federally-funded and State-funded child development, child
care, and early childhood education programs;
``(cc) developing recommendations regarding means of
establishing a unified data collection system for early
childhood education and care throughout the State;
``(dd) developing a statewide professional development and
career ladder plan for early childhood education and care in
the State;
``(ee) assisting 2-year and 4-year public and private
institutions of higher education, which may include assisting
the institutions with development of articulation agreements
or model programs of early childhood education and care,
including practica or internships for students to spend time
in a Head Start or prekindergarten program; and
``(ff) undertaking collaborative efforts to develop, and
make recommendations for improvements in, State early
learning standards.
``(II) The State Advisory Council shall hold public
hearings and provide an opportunity for public comment on the
activities described in subclause (I). The State Advisory
Council shall submit a statewide strategic report addressing
the activities described in subclause (I) to the State
Director of Head Start Collaboration and the Governor of the
State.
``(III) After submission of a statewide strategic report
under subclause (II), the State Advisory Council shall meet
periodically to review any implementation of the
recommendations in such report and any changes in State and
local needs.
``(F)(i)(I) Prior to carrying out paragraph (4), the
Secretary shall reserve a portion to carry out this
subparagraph for a fiscal year. The Secretary shall reserve
the portion from the amount (if any) by which the funds
appropriated under section 639(a) for the fiscal year exceed
the adjusted prior year appropriation (as defined in
paragraph (3)(A)(ii)), without reducing the share available
for quality improvement funds described in paragraph (3)(B).
``(II) To the extent consistent with subclause (I), the
Secretary shall reserve $100,000,000 for fiscal year 2008.
Funds reserved under this subclause shall remain available
for obligation through fiscal year 2012.
``(ii) The Secretary shall use the portion reserved under
clause (i) to award, on a competitive basis, one-time startup
grants of not less than $500,000 to eligible States to enable
such States to pay for the Federal share of the cost of
further developing and implementing the recommendations and
plans for which the State's State Advisory Council is
responsible under subparagraph (E)(iv)(I). Such grants
shall--
``(I) facilitate the development of high-quality systems of
early childhood education and care designed to improve school
preparedness;
``(II) increase and make effective use of existing and new
delivery systems and funds for early childhood education and
care; and
``(III) enhance existing early childhood education and care
(in existence on the date on which the grant involved is
awarded).
``(iii) To be eligible to receive a grant under this
subparagraph, a State shall prepare and submit to the
Secretary an application, for a 3-year period, at such time,
in such manner, and containing such information as the
Secretary shall require, including--
``(I) a description of the State's State Advisory Council's
responsibilities under subparagraph (E)(iv)(I);
``(II) a description, for each fiscal year, of how the
State will make effective use of funds available under this
subparagraph, with funds described in clause (iv), to create
an early childhood education and care system, by developing
or enhancing programs and activities described in
subparagraph (E)(iv)(I);
``(III) a description of the State early learning standards
and the State's goals for increasing the number of children
entering kindergarten ready to learn;
``(IV) information identifying the agency or joint
interagency office and individual designated to carry out the
activities under this subparagraph, which may be the
individual designated under subparagraph (E)(i)(II); and
``(V) a description of how the State plans to sustain
activities under this subparagraph beyond the grant period.
``(iv) The Federal share of the cost described in clause
(ii) shall be 30 percent, and the State shall provide the
non-Federal share.
``(v) Funds made available under this subparagraph shall be
used to supplement, and not supplant, other Federal, State,
and local funds expended to carry out activities related to
early childhood education and care in the State.
``(vi) Not later than 18 months after the date a State
receives a grant under this subparagraph, the State shall
submit an interim report to the Secretary. A State that
receives a grant under this subparagraph shall submit a final
report to the Secretary at the end of the grant period.'';
and
(D) in subparagraph (G), as redesignated by subparagraph
(B) of this paragraph--
(i) in clause (i)(I), by striking ``child care and early
childhood education programs and resources'' and inserting
``early childhood education and care programs and
resources''; and
(ii) in clause (ii), by striking ``Federal child care or
early childhood education'' and inserting ``Federal early
childhood education or child care''; and
(5) in paragraph (6)--
(A) in subparagraph (A), by striking ``7.5 percent'' and
all that follows and inserting ``not less than 12 percent for
fiscal year 2008, not less than 14 percent for fiscal year
2009, not less than 16 percent for fiscal year 2010, not less
than 18 percent for fiscal year 2011, and not less than 20
percent for fiscal year 2012, of the amount appropriated
pursuant to section 639(a).'';
(B) by striking subparagraph (B);
(C) in subparagraph (C)(i), by striking ``required to be''
each place it appears; and
(D) by redesignating subparagraph (C) as subparagraph (B).
(b) Minimum Enrollment Requirement for Children With
Disabilities.--The first sentence of section 640(d) of the
Head Start Act (42 U.S.C. 9835(d)) is amended to read as
follows: ``The Secretary shall establish policies and
procedures to assure that, for fiscal year 2008 and
thereafter, not less than 10 percent of the total number of
children actually enrolled by each Head Start agency and each
delegate agency will be children with disabilities who are
eligible for special education or early intervention
services, as appropriate, as determined under the Individuals
with Disabilities Education Act (20 U.S.C. 1400 et seq.), and
that the Head Start agency or delegate agency involved will
collaborate with the State or local agency providing services
under section 619 or part C of the Individuals with
Disabilities Education Act (20 U.S.C. 1419, 1431 et seq.) to
ensure the provision of services to meet the special needs of
such children.''.
(c) Service Delivery Models.--Section 640(f) of the Head
Start Act (42 U.S.C. 9835(f)) is amended--
(1) by striking ``(f) The'' and inserting ``(f)(1) Not
later than 1 year after the date of enactment of the Head
Start for School Readiness Act, the'';
(2) by striking ``needs.'' and inserting ``needs, including
models that leverage the capacity and capabilities of the
delivery system of early childhood education and care.''; and
(3) by adding at the end the following:
[[Page S7983]]
``(2) In establishing the procedures the Secretary shall
establish procedures to provide for--
``(A) the conversion of part-day programs to full-day
programs or part-day slots to full-day slots; and
``(B) serving additional infants and toddlers pursuant to
section 645(a)(5).''.
(d) Additional Funds.--Section 640(g)(2) of the Head Start
Act (42 U.S.C. 9835(g)(2)) is amended--
(1) by striking subparagraph (C) and inserting the
following:
``(C) the extent to which the applicant has undertaken
communitywide strategic planning and needs assessments
involving other community organizations and Federal, State,
and local public agencies serving children and families
(including organizations and agencies providing family
support services and protective services to children and
families and organizations serving families in whose homes
English is not the language customarily spoken), and
individuals, organizations, and public entities serving
children with disabilities, children in foster care, and
homeless children including the local educational agency
liaison designated under section 722(g)(1)(J)(ii) of the
McKinney-Vento Homeless Assistance Act (42 U.S.C.
11432(g)(1)(J)(ii));'';
(2) in subparagraph (D)--
(A) by striking ``community'' the first place it appears
and inserting ``communitywide''; and
(B) by striking ``other local'' and inserting ``the State
and local'';
(3) in subparagraph (E)--
(A) by inserting ``would like to participate but'' after
``community who''; and
(B) by striking ``early childhood program'' and inserting
``early childhood education and care program'';
(4) in subparagraph (G), by inserting ``leverage the
existing delivery systems of such services (existing as of
the date of the allocation decision) and'' after ``manner
that will''; and
(5) in subparagraph (H), by inserting ``, including the
local educational agency liaison designated under section
722(g)(1)(J)(ii) of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11432(g)(1)(J)(ii)),'' after ``community
involved''.
(e) Vehicle Safety Requirements.--Section 640(i) of the
Head Start Act (42 U.S.C. 9835(i)) is amended--
(1) by striking ``(i)'' and inserting ``(i)(1)'';
(2) in paragraph (1), as so designated, by adding at the
end the following: ``The regulations shall also establish
requirements to ensure the appropriate supervision of, and
appropriate background checks for, individuals with whom the
agencies contract to transport those children.''; and
(3) by adding at the end the following:
``(2)(A) Section 1310.12(a) of title 45, Code of Federal
Regulations, shall take effect 30 days after the date of
enactment of this Act.
``(B)(i) Not later than 60 days after the National Highway
Traffic Safety Administration of the Department of
Transportation submits its study on occupant protection on
Head Start transit vehicles (related to Government
Accountability Office report GAO-06-767R), the Secretary of
Health and Human Services shall review and shall revise as
necessary the allowable alternate vehicle standards described
in part 1310 of that title (or any corresponding similar
regulation or ruling) relating to allowable alternate
vehicles used to transport children for a Head Start program.
In making any such revision, the Secretary shall revise the
standards to be consistent with the findings contained in
such study, including making a determination on the exemption
of such a vehicle from Federal seat spacing requirements, and
Federal supporting seating requirements related to
compartmentalization, if such vehicle meets all other
applicable Federal motor vehicle safety standards, including
standards for seating systems, occupant crash protection,
seat belt assemblies, and child restraint anchorage systems
consistent with that part 1310 (or any corresponding similar
regulation or ruling).
``(ii) Notwithstanding subparagraph (A), until such date as
the Secretary of Health and Human Services completes the
review and any necessary revision specified in clause (i),
the provisions of section 1310.12(a) of that title relating
to Federal seat spacing requirements, and Federal supporting
seating requirements related to compartmentalization, for
allowable alternate vehicles used to transport children for a
Head Start program, shall not apply to such a vehicle if such
vehicle meets all other applicable Federal motor vehicle
safety standards, as described in clause (i).''.
(f) Migrant and Seasonal Head Start Programs.--Section
640(l) of the Head Start Act (42 U.S.C. 9835(l)) is amended--
(1) in paragraph (1), by striking ``and seasonal farmworker
families'' and inserting ``or seasonal farmworkers''; and
(2) by striking paragraph (3) and inserting the following:
``(3) In carrying out this subchapter, the Secretary shall
continue the administrative arrangement at the national level
for meeting the needs of Indian children and children of
migrant or seasonal farmworkers and shall ensure--
``(A) that appropriate funding is provided to meet such
needs, including training and technical assistance provided
by staff with knowledge of and experience in working with
such populations; and
``(B) the appointment of a national Indian Head Start
collaboration director and a national migrant and seasonal
Head Start program collaboration director.
``(4)(A) For the purposes of paragraph (3), the Secretary
shall conduct an annual consultation in each affected Head
Start region, with tribal governments operating Head Start
(including Early Head Start) programs.
``(B) The consultations shall be for the purpose of better
meeting the needs of American Indian and Alaska Native
children and families pertinent to subsection (a)(2)(A),
taking into consideration funding allocations, distribution
formulas, and other issues affecting the delivery of Head
Start services within tribal communities.
``(C) The Secretary shall publish a notification of the
consultations in the Federal Register prior to conducting the
consultations.
``(D) A detailed report of each consultation shall be
prepared and made available, on a timely basis, to all tribal
governments receiving funds under this subchapter.
``(5)(A) In order to increase access to Head Start services
for children of migrant or seasonal farmworkers, the
Secretary shall work in collaboration with providers of
migrant and seasonal Head Start programs, the Secretary of
Agriculture, the Secretary of Labor, and the Secretary of
Education to--
``(i) collect, report, and share data on farmworkers and
their families in order to adequately account for the number
of children of migrant or seasonal farmworkers who are
eligible for Head Start services and determine how many of
such children receive the services; and
``(ii) identify barriers that prevent children of migrant
or seasonal farmworkers who are eligible for Head Start
services from accessing Head Start services, and develop a
plan for eliminating such barriers, including certain
requirements relating to tracking, health records, and
educational documents.
``(B) Not later than 1 year after the date of enactment of
the Head Start for School Readiness Act, the Secretary shall
publish in the Federal Register a notice about how the
Secretary plans to carry out the activities identified in
subparagraph (A) and shall provide a period for public
comment. To the extent practicable, the Secretary shall
consider comments received before implementing any of the
activities identified in subparagraph (A).
``(C) Not later than 18 months after the date of enactment
of the Head Start for School Readiness Act, the Secretary
shall submit a report to the Committee on Education and Labor
of the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate detailing how
the Secretary plans to carry out the activities identified in
subparagraph (A).
``(D) The Secretary shall take appropriate caution to
ensure the protection of the confidentiality of any
personally identifiable data, information, and records
collected or maintained regarding children and families
served by migrant and seasonal Head Start programs.
``(E) Nothing in this paragraph shall be construed to
authorize the development of a nationwide database of
personally identifiable data, information, or records on
individuals involved in studies or other collections of data
under this paragraph.''.
(g) Homeless Children.--Section 640 of the Head Start Act
(42 U.S.C. 9835) is amended by adding at the end the
following:
``(m) Enrollment of Homeless Children.--The Secretary shall
issue regulations to remove barriers to the enrollment and
participation of homeless children in Head Start programs.
Such regulations shall require Head Start agencies to--
``(1) implement policies and procedures to ensure that
homeless children are identified and receive priority for
enrollment;
``(2) allow homeless children to apply to, enroll in, and
attend Head Start programs while required documents, such as
proof of residency, proof of immunization, and other medical
records, birth certificates, and other documents, are
obtained within a reasonable timeframe; and
``(3) coordinate individual Head Start programs with
efforts to implement subtitle B of title VII of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.).
``(n) Rule of Construction.--Nothing in this subchapter
shall be construed to require a State to establish a program
of early childhood education and care for children in the
State, to require any child to participate in a program in
order to attend preschool, or to participate in any initial
screening prior to participation in a program of early
childhood education and care, except as provided under
section 612(a)(3) of the Individuals with Disabilities
Education Act (20 U.S.C. 1412(a)(3)) and consistent with
section 635(a)(5) of such Act (20 U.S.C. 1435(a)(5)).
``(o) Curricula.--All curricula funded under this
subchapter shall be scientifically based, developmentally and
linguistically based (to the extent practicable), and age
appropriate. The curricula shall reflect all areas of child
development and learning. Parents shall have the opportunity
to examine any such curricula or instructional materials
funded under this subchapter.''.
SEC. 7. DESIGNATION OF HEAD START AGENCIES.
Section 641 of the Head Start Act (42 U.S.C. 9836) is
amended to read as follows:
``SEC. 641. DESIGNATION OF HEAD START AGENCIES.
``(a) Designation.--
``(1) In general.--The Secretary is authorized to designate
as a Head Start agency any local public or private nonprofit
or for-profit agency, within a community, including a
community-based organization that--
[[Page S7984]]
``(A) has power and authority to carry out the purpose of
this subchapter and perform the functions set forth in
section 642 within a community; and
``(B) is determined to have the capacity to plan, conduct,
administer, and evaluate, either directly or by other
arrangements, a Head Start program.
``(2) Required goals for designation.--In order to be
designated as a Head Start agency, an entity described in
paragraph (1) shall--
``(A) establish program goals for improving the school
readiness of children participating in a program under this
subchapter, including goals for meeting the performance
standards described in section 641A(a)(1) and shall establish
results-based school readiness goals that are aligned with
the Head Start Child Outcomes Framework, State early learning
standards (as appropriate), and requirements and expectations
for local public schools; and
``(B) have a governing body--
``(i) with legal and fiscal responsibility for
administering and overseeing programs under this subchapter;
``(ii) that fully participates in the development,
planning, and evaluation of the programs to ensure the
operation of programs of high quality;
``(iii) that is responsible for ensuring compliance with
Federal laws and regulations, including the performance
standards described in section 641A(a)(1), as well as
applicable State, tribal, and local laws and regulations,
including laws defining the nature and operations of the
governing body; and
``(iv) that has procedures to facilitate meaningful
consultation and collaboration about decisions of the
governing body and the policy council established under
paragraph (3).
``(3) Establishment of policy council upon designation.--
Upon receiving designation as a Head Start agency, the agency
shall establish a policy council that--
``(A) in accordance with paragraph (5)(C), shall make
decisions that influence the character of programs consistent
with paragraph (5)(F); and
``(B) with the governing body, shall establish processes to
resolve internal disputes.
``(4) Eligibility for subsequent grants.--In order to
receive a grant under this subchapter subsequent to the
initial grant provided following the date of enactment of the
Head Start for School Readiness Act, an entity described in
paragraph (1) shall demonstrate that the entity has met or is
making progress toward meeting the goals described in
paragraph (2)(A).
``(5) Governing body and policy council.--
``(A) Establishment of governing body.--Each Head Start
agency shall establish a governing body in accordance with
paragraph (2)(B).
``(B) Composition of governing body.--
``(i) In general.--The governing body shall be composed as
follows:
``(I) Not less than 1 member of the governing body shall
have a background in fiscal management.
``(II) Not less than 1 member of the governing body shall
have a background in early childhood education and care.
``(III) Not less than 1 member of the governing body shall
be a licensed attorney familiar with issues that come before
the governing body.
``(IV) Additional members shall reflect the community to be
served, and include parents of children who are currently, or
were formerly, enrolled in Head Start programs.
``(V) In the case in which the governing body is a part of
a Head Start agency that is a public agency, members of the
governing body shall include elected or appointed public
officials.
``(ii) Consultants.--In the case that persons described in
clause (i) are not available to serve as members of the
governing body, the governing body shall make use of
consultants in the areas described in clause (i) to work
directly with the governing body.
``(iii) Conflict of interest.--Members of the governing
body shall--
``(I) not have a conflict of interest with the Head Start
agency (including any delegate agency); and
``(II) not receive compensation for the purposes of serving
on the governing body or for providing services to the Head
Start agency.
``(C) Responsibilities of governing body.--
``(i) In general.--The governing body shall be responsible
for--
``(I) the selection of delegate agencies and such agencies'
service areas;
``(II) establishing procedures and criteria for
recruitment, selection, and enrollment;
``(III) all funding applications and amendments to funding
applications for programs under this subchapter;
``(IV) establishing procedures and guidelines to access and
collect the information described in paragraph (6);
``(V) review and approval of--
``(aa) the annual self-assessment, financial audit, and
findings from the Federal monitoring review, of the Head
Start agency (including any delegate agency); and
``(bb) such agency's progress in carrying out the
programmatic and fiscal intent of such agency's grant
application;
``(VI) developing procedures for how members of the policy
council of the Head Start agency are selected, consistent
with subparagraph (E)(ii);
``(VII) financial audits, accounting, and reporting;
``(VIII) personnel policies and procedures regarding
hiring, termination, salary scales (and changes made to the
scale), and salaries of the Executive Director, Head Start
Director, the Director of Human Resources, the Chief Fiscal
Officer, and any equivalent position; and
``(IX) review and approval of the community assessment,
including any updates to such assessment.
``(ii) Conduct of responsibilities.--The governing body
shall ensure the development and approval of an internal
control structure to facilitate those responsibilities in
order to--
``(I) safeguard Federal funds;
``(II) comply with laws and regulations that have an impact
on financial statements;
``(III) detect or prevent noncompliance with this
subchapter; and
``(IV) receive financial audit reports and direct and
monitor staff implementation of corrective actions.
``(iii) Committees.--The governing body shall, to the
extent practicable and appropriate, establish--
``(I) advisory committees to oversee responsibilities
related to financial auditing and finances of the Head Start
agency, as well as compliance with Federal, State, and local
laws and regulations; and
``(II) at the discretion of the governing body, additional
advisory committees to study and make recommendations on
areas related to the improvement of the Head Start program.
``(D) Establishment of policy council.--Each Head Start
agency shall establish a policy council in accordance with
paragraph (3).
``(E) Composition of policy council.--
``(i) In general.--The policy council shall consist of--
``(I) parents of children currently enrolled in the
programs of the Head Start agency (including any delegate
agency), which shall constitute a majority of the membership
of the policy council; and
``(II) members at large of the community served by the Head
Start agency, which may include parents of children
previously enrolled in the programs of the Head Start agency
(including any delegate agency).
``(ii) Selection.--Parents serving on the policy council
shall be elected by parents of children currently enrolled in
the programs of the Head Start agency (including any delegate
agency) and shall represent, proportionately, all program
options and settings operated by the Head Start agency
(including any delegate agency).
``(iii) Conflict of interest.--Members of the policy
council shall--
``(I) not have a conflict of interest with the Head Start
agency (including any delegate agency); and
``(II) not receive compensation for serving on the policy
council or for providing services to the Head Start agency.
``(F) Responsibilities of policy council.--The policy
council shall be responsible for--
``(i) program planning, including--
``(I) program design, including long and short term program
goals, all funding applications and amendments to funding
applications, and objectives based on the annual
communitywide assessment and self-assessment;
``(II) program recruitment, selection, and enrollment
priorities; and
``(III) budget planning for program expenditures consistent
with subparagraph (C)(i)(VII), including polices for
reimbursement and participation in policy council activities;
``(ii) program operation consistent with subparagraph
(C)(i)(VIII), including implementation of standards of
conduct for program staff, contractors, and volunteers and
criteria for the employment and dismissal of program staff;
and
``(iii) activities to support the active involvement of
parents in supporting program operations, including policies
to ensure that the Head Start program is responsive to
community and parent needs.
``(6) Information sharing.--The governing body and the
policy council shall share with each other regular and
accurate information for use by both entities about program
planning, policies, and Head Start agency operations,
including--
``(A) monthly financial statements (including detailed
credit card account expenditures for any employee with a Head
Start agency credit card or who seeks reimbursement for
charged expenses);
``(B) monthly program information summaries;
``(C) program enrollment reports, including attendance
reports for children whose care is partially subsidized by
another public agency;
``(D) monthly reports of meals and snacks provided through
programs of the Department of Agriculture;
``(E) the financial audit;
``(F) the annual self-assessment, including any findings
related to the annual self-assessment;
``(G) the community assessment of the Head Start agency's
service area and any applicable updates;
``(H) communication and guidance from the Secretary; and
``(I) the program information reports.
``(7) Training and technical assistance.--Appropriate
training and technical assistance shall be provided to the
members of the
[[Page S7985]]
governing body and the policy council to ensure that the
members understand the information the members receive and
can effectively oversee and participate in the programs of
the Head Start agency.
``(b) Communities.--For purposes of this subchapter, a
community may be a city, county, or multicity or multicounty
unit within a State, an Indian reservation (including Indians
in any off-reservation area designated by an appropriate
tribal government in consultation with the Secretary), or a
neighborhood or other area (irrespective of boundaries or
political subdivisions) that provides a suitable
organizational base and possesses the commonality of interest
needed to operate a Head Start program.
``(c) Redesignation.--
``(1) In general.--In administering the provisions of this
section, the Secretary shall, in consultation with the
Governor of the State involved, redesignate as a Head Start
agency any Head Start agency (including any delegate agency)
that is high performing, as determined by meeting each of the
following criteria:
``(A) Is receiving assistance under this subchapter.
``(B) Meets or exceeds standards described in section
641A(a)(1) (including program and financial management
requirements).
``(C) Has no unresolved deficiencies, including having
resolved any deficiencies found during the last triennial
review under section 641A(c).
``(D) Can demonstrate, through agreements such as memoranda
of understanding, active collaboration with the State or
local community in the provision of services for children
(such as the provision of extended day services, education,
professional development and training for staff, and other
types of cooperative endeavors).
``(E) Completes and submits the appropriate reapplication
forms as required by the Secretary.
``(2) Limitation.--A Head Start agency with a triennial
review under section 641A(c) scheduled not later than 18
months after the date of enactment of the Head Start for
School Readiness Act shall not be subject to the criteria
described in paragraph (1) for that review in order to be
redesignated. The Head Start agency shall be subject to the
criteria for any subsequent triennial review.
``(d) Designation When No Entity Is Redesignated.--If no
entity in a community is redesignated according to subsection
(c), the Secretary shall, after conducting an open
competition, designate a Head Start agency from among
qualified applicants in such community.
``(e) Effectiveness.--In selecting from among qualified
applicants for designation as a Head Start agency, the
Secretary shall consider the effectiveness of each such
applicant to provide Head Start services, based on--
``(1) any past performance of such applicant in providing
services comparable to Head Start services, including how
effectively such applicant provided such comparable services;
``(2) the plan of such applicant to provide comprehensive
health, educational, nutritional, social, and other services
needed to aid participating children in attaining their full
potential, and to prepare children to succeed in school;
``(3) the capacity of such applicant to serve eligible
children with programs that use scientifically based research
that promote school readiness of children participating in
the program;
``(4) the plan of such applicant to meet standards set
forth in section 641A(a)(1), with particular attention to the
standards set forth in subparagraphs (A) and (B) of such
section;
``(5) the plan of such applicant to coordinate the Head
Start program the applicant proposes to carry out with other
preschool programs, including--
``(A) the Early Reading First and Even Start programs under
subparts 2 and 3 of part B of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6371 et seq., 6381
et seq.);
``(B) other preschool program under title I of that Act (20
U.S.C. 6301 et seq.);
``(C) programs under section 619 and part C of the
Individuals with Disabilities Education Act (20 U.S.C. 1419,
1431 et seq.);
``(D) State prekindergarten programs;
``(E) child care programs;
``(F) the educational programs that the children in the
Head Start program involved will enter at the age of
compulsory school attendance; and
``(G) reading readiness programs such as those conducted by
public and school libraries;
``(6) the plan of such applicant to coordinate the Head
Start program that the applicant proposes to carry out with
public and private entities who are willing to commit
resources to assist the Head Start program in meeting its
program needs;
``(7) the plan of such applicant to collaborate with a
local library, where available, that is interested in that
collaboration, to--
``(A) develop innovative programs to excite children about
the world of books, such as programs that involve--
``(i) taking children to the library for a story hour;
``(ii) promoting the use of library cards;
``(iii) developing a lending library or using a mobile
library van; and
``(iv) providing fresh books in the Head Start classroom on
a regular basis;
``(B) assist in literacy training for Head Start teachers;
and
``(C) support parents and other caregivers in literacy
efforts;
``(8) the plan of such applicant--
``(A) to facilitate the involvement of parents of
participating children in activities (at home and in the
center involved where practicable) designed to help such
parents become full partners in the education of their
children;
``(B) to afford such parents the opportunity to participate
in the development and overall conduct of the program at the
local level, including through providing transportation
costs;
``(C) to offer (directly or through referral to local
entities, such as entities carrying out Even Start programs
under subpart 3 of part B of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6381 et seq.),
public and school libraries, and entities carrying out family
support programs) to such parents--
``(i) family literacy services; and
``(ii) parenting skills training;
``(D) to offer to parents of participating children
substance abuse counseling (either directly or through
referral to local entities), if needed, including information
on the effect of drug exposure on infants and fetal alcohol
syndrome;
``(E) at the option of such applicant, to offer (directly
or through referral to local entities) to such parents--
``(i) training in basic child development (including
cognitive development);
``(ii) assistance in developing literacy and communication
skills;
``(iii) opportunities to share experiences with other
parents (including parent mentor relationships);
``(iv) regular in-home visitation; or
``(v) any other activity designed to help such parents
become full partners in the education of their children;
``(F) to provide, with respect to each participating
family, a family needs assessment that includes consultation
with such parents (including foster parents and grandparents,
where applicable) about the benefits of parent involvement
and about the activities described in subparagraphs (C), (D),
and (E) in which such parents may choose to become involved
(taking into consideration their specific family needs, work
schedules, and other responsibilities); and
``(G) to extend outreach to fathers, in appropriate cases,
in order to strengthen the role of fathers in families, in
the education of their young children, and in the Head Start
program, by working directly with fathers and father figures
through activities such as--
``(i) in appropriate cases, including fathers in home
visits and providing opportunities for direct father-child
interactions; and
``(ii) targeting increased male participation in the
conduct of the program;
``(9) the ability of such applicant to carry out the plans
described in paragraphs (2), (4), and (5);
``(10) other factors related to the requirements of this
subchapter;
``(11) the plan of such applicant to meet the needs of
limited English proficient children and their families,
including procedures to identify such children, plans to
provide trained personnel, and plans to provide services to
assist the children in making progress toward the acquisition
of the English language;
``(12) the plan of such applicant to meet the needs of
children with disabilities, including procedures to identify
such children, procedures for referral of such children for
evaluation to State and local agencies providing services
under section 619 or part C of the Individuals with
Disabilities Education Act (20 U.S.C. 1419, 1431 et seq), and
plans for collaboration with those State and local agencies;
``(13) the plan of such applicant who chooses to assist
younger siblings of children who will participate in the Head
Start program, to obtain health services from other sources;
``(14) the plan of such applicant to collaborate with other
entities providing early childhood education and care in the
community;
``(15) the plan of such applicant to meet the needs of
homeless children and children in foster care, including the
transportation needs of such children; and
``(16) the plan of such applicant to recruit and retain
qualified staff.
``(f) Involvement of Parents and Area Residents.--The
Secretary shall continue the practice of involving parents
and area residents who are affected by programs under this
subchapter in the selection of qualified applicants for
designation as Head Start agencies.
``(g) Priority.--In selecting from among qualified
applicants for designation as a Head Start agency, the
Secretary shall give priority to applicants that have
demonstrated capacity in providing effective, comprehensive,
and well-coordinated early childhood education and care to
children and their families.
``(h) Interim Basis.--If there is not a qualified applicant
in a community for designation as a Head Start agency, the
Secretary shall designate a qualified agency to carry out the
Head Start program in the community on an interim basis until
a qualified applicant from the community is so designated.
[[Page S7986]]
``(i) Prohibition Against Non-Indian Head Start Agency
Receiving a Grant for an Indian Head Start Program.--
``(1) In general.--Notwithstanding any other provision of
law except as provided in paragraph (2), under no condition
may a non-Indian Head Start agency receive a grant to carry
out an Indian Head Start program.
``(2) Exception.--In a community in which there is no
Indian Head Start agency available for designation to carry
out an Indian Head Start program, a non-Indian Head Start
agency may receive a grant to carry out an Indian Head Start
program but only until such time as an Indian Head Start
agency in such community becomes available and is designated
pursuant to this section.''.
SEC. 8. QUALITY STANDARDS; MONITORING OF HEAD START AGENCIES
AND PROGRAMS.
Section 641A of the Head Start Act (42 U.S.C. 9836a) is
amended--
(1) in subsection (a)--
(A) in paragraph (1)(A), by striking ``642(d)'' and
inserting ``642(c)'';
(B) in paragraph (1)(B)--
(i) in clause (i), by striking ``education performance
standards'' and inserting ``educational performance
standards''; and
(ii) by striking clause (ii) and inserting the following:
``(ii) additional educational standards based on the
recommendations of the National Academy of Sciences panel
described in section 649(h) and other experts in the field,
to ensure that the curriculum involved addresses, and that
the children participating in the program show appropriate
progress toward developing and applying, the recommended
educational outcomes, after the panel considers the
appropriateness of additional educational standards relating
to--
``(I) language skills related to listening, understanding,
speaking, and communicating;
``(II) pre-literacy knowledge and skills;
``(III) premathematics knowledge and skills;
``(IV) scientific abilities;
``(V) general cognitive abilities related to academic
achievement and child development;
``(VI) social and emotional development related to early
learning and school success;
``(VII) physical development; and
``(VIII) in the case of limited English proficient
children, progress toward acquisition of the English language
(which may include progress made with linguistically
appropriate instructional services) while making meaningful
progress in attaining the knowledge, skills, abilities, and
development described in subclauses (I) through (VII);'';
(C) in paragraph (1)(D), by striking ``projects; and'' and
inserting ``projects, including regulations that require that
the facilities used by Head Start agencies (including Early
Head Start agencies and including any delegate agencies) for
regularly scheduled center-based and combination program
option classroom activities--
``(i) shall be in compliance with State and local
requirements concerning licensing for such facilities; and
``(ii) shall be accessible by State and local authorities
for purposes of monitoring and ensuring compliance; and'';
(D) in paragraph (2)--
(i) in subparagraph (B)--
(I) in clause (i), by striking ``the date of enactment of
this section'' and inserting ``the date of enactment of the
Head Start for School Readiness Act'';
(II) in clause (ii), by striking ``the date of enactment of
this Act'' and inserting ``the date of enactment of the Head
Start for School Readiness Act'';
(III) in clause (iii)--
(aa) by striking ``early childhood education and
development'' and inserting ``early childhood education and
care''; and
(bb) by inserting ``homeless children, children in foster
care,'' after ``children with disabilities,'';
(IV) in clause (vi), by striking ``including the language''
and all that follows and inserting ``and the language
background and family structure of such children, and changes
in the population and number of such children who are in
foster care or are homeless children'';
(V) by striking clause (vii) and inserting the following:
``(vii) the need for Head Start agencies to maintain close
and frequent communications with parents, including
conducting periodic meetings to discuss the progress of
individual children in Head Start programs; and
``(viii) the unique challenges faced by individual
programs, including those programs that are seasonal or short
term and those programs that serve rural populations;'';
(ii) in subparagraph (C)(ii), by striking ``the date of
enactment of the Coats Human Services Reauthorization Act of
1998.'' and inserting ``the date of enactment of the Head
Start for School Readiness Act; and''; and
(iii) by adding at the end the following:
``(D) consult with Indian tribes, American Indian and
Alaska Native experts in early childhood education and care,
linguists, and the National Indian Head Start Directors
Association on the review and promulgation of standards under
this subchapter (including standards for language acquisition
and school readiness).'';
(E) by adding at the end the following:
``(4) Evaluations and corrective actions for delegate
agencies.--
``(A) Procedures.--
``(i) In general.--Subject to clause (ii), the Head Start
agency shall establish procedures relating to its delegate
agencies, including--
``(I) procedures for evaluating delegate agencies;
``(II) procedures for defunding delegate agencies; and
``(III) procedures for appealing a defunding decision
relating to a delegate agency.
``(ii) Termination.--The Head Start agency may not
terminate a delegate agency's contract or reduce a delegate
agency's service area without showing cause or demonstrating
the cost-effectiveness of such a decision.
``(B) Evaluations.--Each Head Start agency--
``(i) shall evaluate its delegate agencies using the
procedures established pursuant to this section, including
subparagraph (A); and
``(ii) shall inform the delegate agencies of the
deficiencies identified through the evaluation that shall be
corrected.
``(C) Remedies to ensure corrective actions.--In the event
that the Head Start agency identifies a deficiency for a
delegate agency through the evaluation, the Head Start agency
shall take action, which may include--
``(i) initiating procedures to terminate the designation of
the agency unless the agency corrects the deficiency;
``(ii) conducting monthly monitoring visits to such
delegate agency until all deficiencies are corrected or the
Head Start agency decides to defund such delegate agency; and
``(iii) releasing funds to such delegate agency--
``(I) only as reimbursements, until all deficiencies are
corrected or the Head Start agency decides to defund such
delegate agency; and
``(II) only if there is continuity of services for children
and families.
``(D) Rule of construction.--Nothing in this paragraph
shall be construed to impact or obviate the responsibilities
of the Secretary with respect to Head Start agencies
(including any delegate agencies) receiving funding under
this subchapter.'';
(2) in subsection (b)--
(A) in paragraph (2)--
(i) by striking the paragraph heading and inserting the
following:
``(2) Characteristics and use of measures.--'';
(ii) in subparagraph (B), by striking ``, not later than
July 1, 1999; and'' and inserting a semicolon;
(iii) in subparagraph (C), by striking the period and
inserting a semicolon;
(iv) by striking the flush matter following subparagraph
(C); and
(v) by adding at the end the following:
``(D) measure characteristics that are strongly predictive
(as determined on a scientific basis) of a child's school
readiness and later performance in school;
``(E) be appropriate for the population served; and
``(F) be reviewed not less than every 4 years, based on
advances in the science of early childhood development.
The performance measures shall be issued by regulation and
shall include the performance standards and additional
educational standards described in subparagraphs (A) and (B)
of subsection (a)(1).'';
(B) in paragraph (3)--
(i) in subparagraph (A), by striking ``; and'' and
inserting a semicolon;
(ii) in subparagraph (B), by striking the period and
inserting ``; and''; and
(iii) by adding at the end the following:
``(C) to enable Head Start agencies to individualize
programs of instruction to better meet the needs of the child
involved.'';
(C) by striking paragraph (4);
(D) by redesignating paragraph (5) as paragraph (4); and
(E) by adding at the end the following:
``(5) Rule of construction.--Nothing in this subchapter
shall be construed to authorize or permit the Secretary or
any employee or contractor of the Department of Health and
Human Services to mandate, direct, control, or suggest the
selection of a curriculum, a program of instruction, or
instructional materials, for a Head Start program.'';
(3) in subsection (c)--
(A) in paragraph (1)--
(i) by striking subparagraph (C) and inserting the
following:
``(C) Unannounced site inspections for health and safety
reasons, as appropriate.'';
(ii) by redesignating subparagraph (D) as subparagraph (E);
and
(iii) by inserting after subparagraph (C) the following:
``(D) Followup reviews, including--
``(i) prompt return visits as necessary for failure to meet
1 or more of the performance measures developed by the
Secretary under subsection (b);
``(ii) a review of agencies and programs with citations
that include findings of deficiencies not later than 6 months
after the date of such citation; and
``(iii) followup reviews that incorporate a monitoring
visit without prior notice of the visit to the agency or
program involved or with such limited prior notice as is
necessary to ensure the participation of parents and key
staff members.''; and
(B) by striking paragraph (2) and inserting the following:
``(2) Conduct of reviews.--
[[Page S7987]]
``(A) In general.--The Secretary shall ensure that reviews
described in paragraph (1)--
``(i) are performed, to the maximum extent practicable, by
employees of the Department of Health and Human Services who
are knowledgeable about Head Start programs;
``(ii) are conducted by review teams that shall include
individuals who are knowledgeable about Head Start programs
and other early childhood education and care and, to the
maximum extent practicable, the diverse (including linguistic
and cultural) needs of eligible children (including children
with disabilities, homeless children, and children in foster
care) and limited English proficient children and their
families, and personnel management, financial accountability,
and systems development and monitoring;
``(iii) include as part of the reviews of the programs, a
review and assessment of program effectiveness, including
strengths and weaknesses, as measured in accordance with the
results-based performance measures developed by the Secretary
pursuant to subsection (b) and with the performance standards
established pursuant to subsection (a)(1);
``(iv) seek information from the communities and States
where Head Start programs exist about innovative or effective
collaborative efforts, barriers to collaboration, and the
efforts of the Head Start agencies to collaborate with the
entities providing early childhood education and care in the
community;
``(v) include as part of the reviews of the programs, a
review and assessment of whether the programs are in
conformity with the income eligibility requirements under
section 645 and regulations promulgated under such section;
``(vi) include as part of the reviews of the programs, a
review and assessment of whether programs have adequately
addressed population and community needs (including needs of
populations of limited English proficient children and
children of migrant or seasonal farmworkers);
``(vii) include as part of the reviews of the programs, a
review and assessment of whether programs have adequately
addressed the needs of children with disabilities, including
whether the agencies involved have met the 10 percent minimum
enrollment requirement specified in section 640(d) and
whether the agencies have made sufficient efforts to
collaborate with State and local agencies providing services
under section 619 or part C of the Individuals with
Disabilities Education Act (20 U.S.C. 1419, 1431 et seq.);
``(viii) include as part of the reviews of the programs,
data from the results of periodic child assessments, and a
review and assessment of child outcomes and performance as
they relate to agency-determined school readiness goals
described in section 641(a)(2)(A); and
``(ix) in the case of Early Head Start agencies and
programs, are conducted by a review team that includes
individuals who are knowledgeable about the development of
infants and toddlers.
``(B) Training; quality and consistency.--The Secretary,
from funds available under section 640(a)(2)(D), shall
provide periodic training for supervisors and members of
review teams in such topics as program management and
financial audit performance. The Secretary shall ensure the
quality and consistency across and within regions of reviews
and non-compliance and deficiency determinations by
conducting periodic interrater reliability checks.'';
(4) in subsection (d)(1)--
(A) in the matter preceding subparagraph (A), by inserting
``or fails to address the communitywide strategic plan and
needs assessment identified in section 640(g)(2)(C),'' after
``subsection (b),''; and
(B) in subparagraph (A), by inserting ``and identify the
assistance to be provided consistent with paragraph (3)''
after ``corrected'';
(5) in subsection (e), by striking the last sentence and
inserting ``The information contained in such report shall be
made available to parents with children receiving assistance
under this subchapter in an understandable and uniform
format, and to the extent practicable, in a language that the
parents can understand. Such information shall be made widely
available through public means such as distribution through
public agencies, and, at a minimum, by posting such
information on the Internet immediately upon publication.'';
and
(6) by adding at the end the following:
``(f) Self-Assessments.--
``(1) In general.--Not less frequently than once each
program year, with the consultation and participation of
policy councils, and, as applicable, policy committees, and,
as appropriate, other community members, each agency
receiving funds under this subchapter shall conduct a
comprehensive self-assessment of the agency's effectiveness
and progress in meeting program goals and objectives and in
implementing and complying with performance standards
described in subsection (a)(1).
``(2) Report and improvement plans.--
``(A) Report.--An agency conducting a self-assessment shall
report the findings of the self-assessment to the relevant
policy council, policy committee, governing body, and
regional office of the Administration for Children and
Families of the Department of Health and Human Services. Each
self-assessment shall identify areas of strength and
weakness.
``(B) Improvement plan.--The agency shall develop an
improvement plan approved by the governing body of the agency
to strengthen any areas identified in the self-assessment as
weaknesses or in need of improvement. The agency shall report
the areas to the appropriate regional office of the
Administration for Children and Families.
``(3) Ongoing monitoring.--Each Head Start agency
(including each Early Head Start agency and including any
delegate agency) shall establish and implement procedures for
the ongoing monitoring of their Head Start (including Early
Head Start) programs, to ensure that the operations of the
programs work toward meeting program goals and objectives and
Head Start performance standards.
``(4) Training and technical assistance.--Funds may be made
available, through section 648(d), for training and technical
assistance to assist agencies in conducting self-assessments.
``(g) Reduction of Grants and Redistribution of Funds in
Cases of Under-Enrollment.--
``(1) Definitions.--In this subsection:
``(A) Actual enrollment.--The term `actual enrollment'
means, with respect to the program of a Head Start agency,
the actual number of children enrolled in such program and
reported by the agency (as required in paragraph (2)) in a
given month.
``(B) Base grant.--The term `base grant' means, with
respect to a Head Start agency for a fiscal year, that
portion of the grant derived--
``(i) from amounts reserved for use in accordance with
section 640(a)(2)(A), for a Head Start agency administering
an Indian Head Start program or migrant or seasonal Head
Start program;
``(ii) from amounts reserved for payments under section
640(a)(2)(B); or
``(iii) from amounts available under section 640(a)(2)(D)
or allotted among States under section 640(a)(4).
``(C) Funded enrollment.--The term `funded enrollment'
means, with respect to the program of a Head Start agency in
a fiscal year, the number of children that the agency is
funded to serve through a grant for the program during such
fiscal year, as indicated in the grant award.
``(2) Enrollment reporting requirement for current fiscal
year.--Each entity carrying out a Head Start program shall
report on a monthly basis to the Secretary and the relevant
Head Start agency--
``(A) the actual enrollment in such program; and
``(B) if such actual enrollment is less than the funded
enrollment, any apparent reason for such enrollment
shortfall.
``(3) Secretarial review and plan.--The Secretary shall--
``(A) on a semiannual basis, determine which Head Start
agencies are operating with an actual enrollment that is less
than the funded enrollment based on not less than 4
consecutive months of data;
``(B) for each such Head Start agency operating a program
with an actual enrollment that is less than 95 percent of its
funded enrollment, as determined under subparagraph (A),
develop, in collaboration with such agency, a plan and
timetable for reducing or eliminating under-enrollment taking
into consideration--
``(i) the quality and extent of the outreach, recruitment,
and communitywide needs assessment conducted by such agency;
``(ii) changing demographics, mobility of populations, and
the identification of new underserved low-income populations;
``(iii) facilities-related issues that may impact
enrollment;
``(iv) the ability to provide full-day programs, where
needed, through funds made available under this subchapter or
through collaboration with entities carrying out other
preschool or child care programs, or programs with other
funding sources (where available);
``(v) the availability and use by families of other
preschool and child care options (including parental care) in
the community served; and
``(vi) agency management procedures that may impact
enrollment; and
``(C) provide timely and ongoing technical assistance to
each agency described in subparagraph (B) for the purpose of
implementing the plan described in such subparagraph.
``(4) Implementation.--Upon receipt of the technical
assistance described in paragraph (3)(C), a Head Start agency
shall immediately implement the plan described in paragraph
(3)(B).
``(5) Secretarial action for continued under-enrollment.--
If, 1 year after the date of implementation of the plan
described in paragraph (3)(B), the Head Start agency
continues to operate a program at less than funded
enrollment, the Secretary shall, where determined
appropriate, continue to provide technical assistance to such
agency.
``(6) Secretarial review and adjustment for chronic under-
enrollment.--
``(A) In general.--If, after receiving technical assistance
and developing and implementing a plan to the extent
described in paragraphs (3), (4), and (5) for 9 months, a
Head Start agency is still operating a program with an actual
enrollment that is less than 95 percent of its funded
enrollment, the Secretary may--
``(i) designate such agency as chronically under-enrolled;
and
``(ii) recapture, withhold, or reduce the base grant for
the program by a percentage
[[Page S7988]]
equal to the percentage difference between funded enrollment
and actual enrollment for the program for the most recent
year in which the agency is determined to be under-enrolled
under paragraph (3)(A).
``(B) Waiver or limitation of reductions.--If the
Secretary, after the implementation of the plan described in
paragraph (3)(B), finds that--
``(i) the causes of the enrollment shortfall, or a portion
of the shortfall, are beyond the agency's control (such as
serving significant numbers of children of migrant or
seasonal farmworkers, homeless children, children in foster
care, or other highly mobile children);
``(ii) the shortfall can reasonably be expected to be
temporary; or
``(iii) the number of slots allotted to the agency is small
enough that under-enrollment does not constitute a
significant shortfall, the Secretary may, as appropriate,
waive or reduce the percentage recapturing, withholding, or
reduction otherwise required by subparagraph (A).
``(C) Procedural requirements; effective date.--The actions
taken by the Secretary under this paragraph with respect to a
Head Start agency shall take effect 1 day after the date on
which--
``(i) the time allowed for appeal under section 646(a)
expires without an appeal by the agency; or
``(ii) the action is upheld in an administrative hearing
under section 646.
``(7) Redistribution of funds.--
``(A) In general.--The Secretary shall use amounts
recovered from a Head Start agency through recapturing,
withholding, or reduction under paragraph (6) in a fiscal
year--
``(i) in the case of a Head Start agency administering an
Indian Head Start program or a migrant or seasonal Head Start
program, whose base grant is derived from amounts specified
in paragraph (1)(B)(i), to redirect funds to 1 or more
agencies that--
``(I) are administering Head Start programs serving the
same special population; and
``(II) demonstrate that the agencies will use such
redirected funds to increase enrollment in their Head Start
programs in such fiscal year; or
``(ii) in the case of a Head Start agency in a State, whose
base grant is derived from amounts specified in clause (ii)
or (iii) of paragraph (1)(B), to redirect funds to 1 or more
agencies that--
``(I) are administering Head Start programs in the same
State; and
``(II) make the demonstration described in clause (i)(II).
``(B) Special rule.--If there is no agency located in a
State that meets the requirements of subclauses (I) and (II)
of subparagraph (A)(ii), in the case of a Head Start agency
described in subparagraph (A)(ii), the Secretary shall use
amounts described in subparagraph (A) to redirect funds to
Head Start agencies located in other States that make the
demonstration described in subparagraph (A)(i)(II).
``(C) Adjustment to funded enrollment.--The Secretary shall
adjust as necessary the requirements relating to funded
enrollment indicated in the grant agreement of a Head Start
agency receiving redistributed amounts under this paragraph.
``(h) Contract With Nonprofit Intermediary Organization.--
From funds reserved under clause (i) or (ii) of section
640(a)(2)(C) or from whatever other resources the Secretary
determines appropriate, in carrying out the provisions of
this section, the Secretary or a Head Start agency may
contract with a nonprofit intermediary organization that--
``(1) provides evaluations and technical assistance to
improve overall performance management; and
``(2) has an exclusive focus of improving the performance
management and the use of technology in assessing performance
and meeting Head Start regulations and can provide on-site,
hands-on guidance with the implementation of Head Start
programs.''.
SEC. 9. CENTERS OF EXCELLENCE IN EARLY CHILDHOOD.
The Head Start Act is amended by inserting after section
641A (42 U.S.C. 9836a) the following:
``SEC. 641B. CENTERS OF EXCELLENCE IN EARLY CHILDHOOD.
``(a) Definition.--In this section, the term `center of
excellence' means a Center of Excellence in Early Childhood
designated under subsection (b).
``(b) Designation and Bonus Grants.--The Secretary shall,
subject to the availability of funds under this subchapter,
including under subsection (f), establish a program under
which the Secretary shall--
``(1) designate not more than 200 exemplary Head Start
agencies (including Early Head Start agencies, Indian Head
Start agencies, and migrant and seasonal Head Start agencies)
as Centers of Excellence in Early Childhood; and
``(2) make bonus grants to the centers of excellence to
carry out the activities described in subsection (d).
``(c) Application and Designation.--
``(1) Application.--
``(A) Nomination and submission.--
``(i) In general.--To be eligible to receive a designation
as a center of excellence under subsection (b), except as
provided in clause (ii), a Head Start agency in a State shall
be nominated by the Governor of the State and shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
``(ii) Indian and migrant and seasonal head start
programs.--In the case of an Indian Head Start agency or a
migrant or seasonal Head Start agency, to be eligible to
receive a designation as a center of excellence under
subsection (b), such an agency shall be nominated by the head
of the appropriate regional office of the Department of
Health and Human Services and shall submit an application to
the Secretary in accordance with clause (i).
``(B) Contents.--At a minimum, the application shall
include--
``(i) evidence that the Head Start program carried out by
the agency has significantly improved the school readiness
of, and enhanced academic outcomes for, children who have
participated in the program;
``(ii) evidence that the program meets or exceeds
performance standards described in section 641A(a)(1), as
evidenced by successful completion of programmatic and
monitoring reviews, and has no findings of deficiencies with
respect to such standards;
``(iii) evidence that the program is making progress toward
meeting the requirements described in section 648A;
``(iv) evidence demonstrating the existence of a
collaborative partnership among the Head Start agency, the
State (or a State agency), and other providers of early
childhood education and care in the local community involved;
``(v) a nomination letter from the Governor, or appropriate
regional office, demonstrating the agency's ability to
provide the coordination, transition, and training services
of the program to be carried out under the bonus grant
involved, including coordination of activities with State and
local agencies that provide early childhood education and
care to children and families in the community served by the
agency;
``(vi) information demonstrating the existence of a local
council for excellence in early childhood, which shall
include representatives of all the institutions, agencies,
and groups involved in the work of the center for, and the
local provision of services to, eligible children and other
at-risk children, and their families; and
``(vii) a description of how the Center, in order to expand
accessibility and continuity of quality early childhood
education and care, will coordinate activities assisted under
this section with--
``(I) programs carried out under the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.);
``(II) other programs carried out under this subchapter,
including the Early Head Start programs carried out under
section 645A;
``(III)(aa) Early Reading First and Even Start programs
carried out under subparts 2 and 3 of part B of title I of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6371 et seq., 6381 et seq.);
``(bb) other preschool programs carried out under title I
of that Act (20 U.S.C. 6301 et seq.); and
``(cc) the Ready-to-Learn Television program carried out
under subpart 3 of part D of title II of that Act (20 U.S.C.
6775 et seq.);
``(IV) programs carried out under section 619 and part C of
the Individuals with Disabilities Education Act (20 U.S.C.
1419, 1431 et seq.);
``(V) State prekindergarten programs; and
``(VI) other programs of early childhood education and
care.
``(2) Selection.--In selecting agencies to designate as
centers of excellence under subsection (b), the Secretary
shall designate not less than 1 from each of the 50 States,
the District of Columbia, an Indian Head Start program, a
migrant or seasonal Head Start program, and the Commonwealth
of Puerto Rico.
``(3) Priority.--In making bonus grant determinations under
this section, the Secretary shall give priority to programs
that, through their applications, demonstrate that they are
of exceptional quality and would serve as exemplary models
for programs in the same geographic region. The Secretary may
also consider the populations served by the applicants, such
as programs that serve large proportions of families of
limited English proficient children or other underserved
populations, and may make bonus grants to programs that do an
exceptional job meeting the needs of children in such
populations.
``(4) Term of designation.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall designate a Head Start agency as a center of
excellence for a 5-year term. During the period of that
designation, subject to the availability of appropriations,
the agency shall be eligible to receive a bonus grant under
subsection (b).
``(B) Revocation.--The Secretary may revoke an agency's
designation under subsection (b) if the Secretary determines
that the agency is not demonstrating adequate performance or
has had findings of deficiencies described in paragraph
(1)(B)(ii).
``(5) Amount of bonus grant.--The Secretary shall base the
amount of funding provided through a bonus grant made under
subsection (b) to a center of excellence on the number of
children eligible for Head Start services in the community
involved. The Secretary shall, subject to the availability of
funding, make such a bonus grant in an amount of not less
than $200,000 per year.
``(d) Use of Funds.--
[[Page S7989]]
``(1) Activities.--A center of excellence that receives a
bonus grant under subsection (b)--
``(A) shall use the funds made available through the bonus
grant to model and disseminate, to other Head Start centers
in the State involved, best practices for achieving early
academic success, including--
``(i) best practices for achieving school readiness and
developing pre-literacy and premathematics skills for at-risk
children and achieving the acquisition of the English
language for limited English proficient children; and
``(ii) best practices for providing seamless service
delivery for eligible children and their families;
``(B) may use the funds made available through the bonus
grant--
``(i) to provide Head Start services to additional eligible
children;
``(ii) to better meet the needs of working families in the
community served by the center by serving more children in
existing Early Head Start programs (existing as of the date
the center is designated under this section) or in full-
working-day, full calendar year Head Start programs;
``(iii) to further coordinate early childhood education and
care and social services available in the community served by
the center for at-risk children (birth through age 8), their
families, and pregnant women;
``(iv) to provide training and cross training for Head
Start teachers and staff, child care providers, public and
private preschool and elementary school teachers, and
other providers of early childhood education and care, and
training and cross training to develop agency leaders;
``(v) to provide effective transitions between Head Start
programs and elementary school, to facilitate ongoing
communication between Head Start and elementary school
teachers concerning children receiving Head Start services,
and to provide training and technical assistance to providers
who are public elementary school teachers and other staff of
local educational agencies, child care providers, family
service providers, and other providers of early childhood
education and care, to help the providers described in this
clause increase their ability to work with low-income, at-
risk children and their families;
``(vi) to develop or maintain partnerships with
institutions of higher education and nonprofit organizations,
including community-based organizations, that recruit, train,
place, and support college students to serve as mentors and
reading partners to preschool children in Head Start
programs; and
``(vii) to carry out other activities determined by the
center to improve the overall quality of the Head Start
program carried out by the agency and the program carried out
under the bonus grant involved.
``(2) Involvement of other head start agencies and
providers.--A center that receives a bonus grant under
subsection (b), in carrying out activities under this
subsection, shall work with the center's delegate agencies
and several additional Head Start agencies (especially
agencies that are low-performing on the performance standards
described in section 641A(a)(1)), and other providers of
early childhood education and care in the community involved,
to encourage the agencies and providers described in this
paragraph to carry out model programs.
``(e) Research and Reports.--
``(1) Research.--The Secretary shall, subject to the
availability of funds to carry out this subsection, award a
grant or contract to an independent organization to conduct
research on the ability of the centers of excellence to
improve the school readiness of children receiving Head Start
services, and to positively impact school results in the
earliest grades. The organization shall also conduct research
to measure the success of the centers of excellence at
encouraging the center's delegate agencies, additional Head
Start agencies, and other providers of early childhood
education and care in the communities involved to meet
measurable improvement goals, particularly in the area of
school readiness.
``(2) Report.--Not later than 48 months after the date of
enactment of the Head Start for School Readiness Act, the
organization shall prepare and submit to the Secretary and
Congress a report containing the results of the research
described in paragraph (1).
``(f) Authorization of Appropriations.--There are
authorized to be appropriated for each of fiscal years 2008
through 2012--
``(1) $90,000,000 to make bonus grants to centers of
excellence under subsection (b) to carry out activities
described in subsection (d);
``(2) $500,000 to pay for the administrative costs of the
Secretary in carrying out this section; and
``(3) $2,000,000 for research activities described in
subsection (e).''.
SEC. 10. POWERS AND FUNCTIONS OF HEAD START AGENCIES.
Section 642 of the Head Start Act (42 U.S.C. 9837) is
amended--
(1) by striking all that precedes ``In order'' the first
place it appears and inserting the following:
``SEC. 642. POWERS AND FUNCTIONS OF HEAD START AGENCIES.
``(a) In General.--''; and
(2) by striking subsections (b) through (e) and inserting
the following:
``(b) Additional Requirements.--In order to be designated
as a Head Start agency under this subchapter, a Head Start
agency shall also--
``(1) establish a program with all standards set forth in
section 641A(a)(1), with particular attention to the
standards set forth in subparagraphs (A) and (B) of such
section;
``(2) demonstrate the capacity to serve eligible children
with scientifically based curricula and other interventions
and support services that help promote the school readiness
of children participating in the program;
``(3) establish effective procedures and provide for the
regular assessment of Head Start children, including
observational and direct formal assessment, where
appropriate;
``(4) establish effective procedures, for determining the
needs of children, that include high quality research based
developmental screening tools that have been demonstrated to
be valid, reliable, and accurate for children from a range of
backgrounds;
``(5) establish effective procedures for timely referral of
children with disabilities to State and local agencies
providing services under section 619 and part C of the
Individuals with Disabilities Education Act (20 U.S.C. 1419,
1431 et seq.), and collaboration with those agencies;
``(6) establish effective procedures for providing
necessary services to children with disabilities prior to an
eligibility determination by the State or local agency
responsible for providing services under section 619 or part
C of such Act;
``(7) require each delegate agency to create a policy
committee, which shall--
``(A) be comprised of members of the community to be
served, including parents of children who are currently
enrolled in the Head Start programs of the Head Start agency;
and
``(B) serve in an advisory capacity to the delegate agency,
to make decisions and recommendations regarding program
planning and operation and parental involvement.
``(8) seek the involvement of parents, area residents, and
local business in the design and implementation of the
program;
``(9) provide for the regular participation of parents and
area residents in the implementation of the program;
``(10) provide technical and other support needed to enable
such parents and area residents to secure, on their own
behalf, available assistance from public and private sources;
``(11) establish effective procedures to carry out
subparagraphs (A) and (B) of section 641(f)(8);
``(12) conduct outreach to schools in which Head Start
children will enroll, local educational agencies, the local
business community, community-based organizations, faith-
based organizations, museums, and libraries to generate
support and leverage the resources of the entire local
community in order to improve school readiness;
``(13) establish effective procedures to carry out section
641(f)(8)(C);
``(14) establish effective procedures to carry out section
641(f)(8)(D);
``(15) establish effective procedures to carry out section
641(f)(8)(E);
``(16) establish effective procedures to carry out section
641(f)(8)(F);
``(17) consider providing services to assist younger
siblings of children participating in its Head Start program,
to obtain health services from other sources;
``(18) perform community outreach to encourage individuals
previously unaffiliated with Head Start programs to
participate in its Head Start program as volunteers;
``(19)(A) inform custodial parents in single-parent
families that participate in programs, activities, or
services carried out or provided under this subchapter about
the availability of child support services for purposes of
establishing paternity and acquiring child support; and
``(B) refer eligible parents to the child support offices
of State and local governments;
``(20) provide parents of limited English proficient
children outreach and information in an understandable and
uniform format and, to the extent practicable, in a language
that the parents can understand; and
``(21) at the option of such agency, partner with an
institution of higher education and a nonprofit organization
to provide college students with the opportunity to serve as
mentors or reading partners to Head Start participants.
``(c) Transition Activities To Facilitate Continued
Progress.--
``(1) In general.--Each Head Start agency shall collaborate
with the entities listed in this subsection, to the maximum
extent possible, to ensure the successful transition of Head
Start children to school, so that such children are able to
build upon the developmental and educational gains achieved
in Head Start programs in further schooling.
``(2) Coordination.--
``(A) Local educational agency.--In communities where both
public prekindergarten programs and Head Start programs
operate, a Head Start agency shall collaborate and coordinate
activities with the local educational agency or other public
agency responsible for the operation of the prekindergarten
program and providers of prekindergarten, including outreach
activities to identify eligible children.
``(B) Elementary schools.--Head Start staff shall, with the
permission of the parents of children enrolled in Head Start
programs, regularly communicate with the elementary schools
such children will be attending to--
``(i) share information about such children;
[[Page S7990]]
``(ii) collaborate with the teachers in such elementary
schools regarding teaching strategies and options; and
``(iii) ensure a smooth transition to elementary school for
such children.
``(C) Other programs.--The head of each Head Start agency
shall coordinate activities and collaborate with the State
agency responsible for administering the State program
carried out under the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858 et seq.), other entities
providing early childhood education and care, and the
agencies responsible for administering section 106 of the
Child Abuse Prevention and Treatment Act (42 U.S.C. 5106a),
parts B and E of title IV of the Social Security Act (42
U.S.C. 621 et seq. and 670 et seq.), programs under subtitle
B of title VII of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11431 et seq.), Even Start programs under subpart
3 of part B of title I of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6381 et seq.), and programs
under section 619 and part C of the Individuals with
Disabilities Education Act (20 U.S.C. 1419, 1431 et seq.),
serving the children and families served by the Head Start
agency.
``(3) Collaboration.--A Head Start agency shall take steps
to coordinate activities with the local educational agency
serving the community involved and with schools in which
children participating in a Head Start program operated by
such agency will enroll following such program, including--
``(A) collaborating on the shared use of transportation and
facilities, in appropriate cases;
``(B) collaborating to reduce the duplication of services
while increasing the program participation of underserved
populations of eligible children; and
``(C) exchanging information on the provision of
noneducational services to such children.
``(4) Parental involvement.--In order to promote the
continued involvement of the parents of children that
participate in Head Start programs in the education of their
children, the Head Start agency shall--
``(A) provide training to the parents--
``(i) to inform the parents about their rights and
responsibilities concerning the education of their children;
and
``(ii) to enable the parents, upon the transition of their
children to school--
``(I) to understand and work with schools in order to
communicate with teachers and other school personnel;
``(II) to support the schoolwork of their children; and
``(III) to participate as appropriate in decisions relating
to the education of their children; and
``(B) take other actions, as appropriate and feasible, to
support the active involvement of the parents with schools,
school personnel, and school-related organizations.
``(d) Assessment or Evaluation.--Each Head Start agency
shall adopt, in consultation with experts in child
development and with classroom teachers, an assessment or
evaluation to measure whether classroom teachers have
mastered the functions described in section 648A(a)(1) and
have attained a level of literacy appropriate to implement
Head Start curricula.
``(e) Funded Enrollment; Waiting List.--Each Head Start
agency shall enroll 100 percent of its funded enrollment and
maintain an active waiting list at all times with ongoing
outreach to the community and activities to identify
underserved populations.
``(f) Technical Assistance and Training Plan.--In order to
receive funds under this subchapter, a Head Start agency
shall develop an annual technical assistance and training
plan. Such plan shall be based on the agency's self-
assessment, the communitywide needs assessment, and the needs
of parents to be served by such agency.''.
SEC. 11. HEAD START TRANSITION.
Section 642A of the Head Start Act (42 U.S.C. 9837a) is
amended to read as follows:
``SEC. 642A. HEAD START TRANSITION AND ALIGNMENT WITH K-12
EDUCATION.
``(a) In General.--Each Head Start agency shall take steps
to coordinate activities with the local educational agency
serving the community involved and with schools in which
children participating in a Head Start program operated by
such agency will enroll following such program, which may
include--
``(1) developing and implementing a systematic procedure
for transferring, with parental consent, Head Start program
records for each participating child to the school in which
such child will enroll;
``(2) establishing ongoing channels of communication
between Head Start staff and their counterparts in the
schools (including, as appropriate, teachers, social workers,
health staff, and local educational agency liaisons
designated under section 722(g)(1)(J)(ii) of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii)))
to--
``(A) facilitate coordination of programs;
``(B) develop continuity of developmentally appropriate
curricular objectives and practices, in order to ensure an
effective transition to school and appropriate shared
expectations for the learning and development of children as
they make the transition to school; and
``(C) provide appropriate linkages between the Head Start
program and educational services, including services related
to language, literacy, and numeracy, provided by such local
educational agency;
``(3) establishing comprehensive transition policies and
procedures that support children transitioning to school,
including by engaging the local education agency in the
establishment of such policies;
``(4) conducting outreach to parents, elementary school
(such as kindergarten) teachers, and Head Start teachers to
discuss the educational, developmental, and other needs of
individual children;
``(5) organizing and participating in joint training,
including transition-related training of school staff and
Head Start staff;
``(6) developing and implementing a family outreach and
support program, in cooperation with entities carrying out
parental involvement efforts under title I of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.),
and family outreach and support efforts under subtitle B of
title VII of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11431 et seq.), taking into consideration the language
needs of parents of limited English proficient children;
``(7) assisting families, administrators, and teachers in
enhancing educational and developmental continuity and
continuity of parental involvement in activities between Head
Start services and elementary school classes;
``(8) helping parents understand the importance of parental
involvement in a child's academic success while teaching the
parents strategies for maintaining parental involvement as
their child moves from the Head Start program to elementary
school;
``(9) helping parents understand the instructional and
other services provided by the school in which their child
will enroll after participation in the Head Start program;
and
``(10) coordinating activities and collaborating to ensure
that curricula used in the Head Start program are aligned
with the Head Start Child Outcomes Framework and, as
appropriate, State early learning standards, with regard to
cognitive development (including language, pre-literacy, and
premathematics competencies), and social, emotional, and
physical competencies that children entering kindergarten are
expected to demonstrate.
``(b) Construction.--In this section, a reference to a Head
Start agency, or its program, services, facility, or
personnel, shall not be construed to be a reference to an
Early Head Start agency, or its program, services, facility,
or personnel.''.
SEC. 12. SUBMISSION OF PLANS TO GOVERNORS.
Section 643 of the Head Start Act (42 U.S.C. 9838) is
amended--
(1) in the first sentence--
(A) by striking ``chief executive officer'' and inserting
``Governor''; and
(B) by striking ``45'' and inserting ``30'';
(2) in the last sentence, by striking ``, however,''; and
(3) by adding at the end the following: ``This section
shall not apply to contracts, agreements, grants, loans, or
other assistance for Indian Head Start programs and migrant
and seasonal Head Start programs.''.
SEC. 13. COSTS OF DEVELOPING AND ADMINISTERING A PROGRAM.
Section 644(b) of the Head Start Act (42 U.S.C. 9839(b)) is
amended--
(1) by striking ``Except'' and inserting ``(1) Except'';
and
(2) by adding at the end the following:
``(2)(A) The limitation prescribed by paragraph (1) shall
not prohibit a Head Start agency from expending an amount in
excess of allowable direct costs associated with developing
and administering a program assisted under this subchapter,
if--
``(i) the agency submits an application for a grant year
containing an assurance that--
``(I) the agency will serve a greater percentage of
children in the community involved than were served in the
preceding grant year; and
``(II) the agency will not diminish services provided to
currently enrolled children (as of the date of the
application), including the number of hours and days such
services are provided;
``(ii) any such excess amount does not exceed 5 percent of
the total costs, including the required non-Federal
contributions to such costs, of such program; and
``(iii) in the event that the applicant applies to expend
any such excess amount in a subsequent grant year, the
applicant continues to serve the same number of children as
proposed in the initial application submitted under this
paragraph and accomplishes, relative to the prior Head Start
agency, at least 3 of the 5 improved outcomes.
``(B) In subparagraph (A), the term `improved outcome'
means--
``(i) an increase in average teacher salary;
``(ii) an increase in the number of qualified teachers;
``(iii) a significant increase in the number of children
who receive full-day Head Start services;
``(iv) a decrease in the caseload for family workers; or
``(v) an increase in transportation options for families.
``(C) The Secretary shall approve not more than 10
applications described in subparagraph (A) for a fiscal year,
and to the extent practicable shall ensure participation
under this paragraph of a diverse group of Head Start
agencies, including public, private nonprofit, and for-profit
agencies operating Head Start programs.''.
[[Page S7991]]
SEC. 14. PARTICIPATION IN HEAD START PROGRAMS.
Section 645 of the Head Start Act (42 U.S.C. 9840) is
amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) by inserting ``130 percent of'' after ``below''; and
(II) by striking ``and'' at the end;
(ii) by redesignating subparagraph (B) as subparagraph (C);
(iii) by inserting after subparagraph (A) the following:
``(B) that the Head Start agencies involved make efforts to
ensure that the programs serve children from families with
incomes below the poverty line prior to serving other income-
eligible children; and''; and
(iv) in the flush matter at the end, by adding at the end
the following: ``A homeless child shall be deemed eligible
for Head Start services.''; and
(B) by adding at the end the following:
``(3)(A) In this paragraph:
``(i) The term `dependent' has the meaning given the term
in paragraphs (2)(A) and (4)(A)(i) of section 401(a) of title
37, United States Code.
``(ii) The terms `member' and `uniformed services' have the
meanings given the terms in paragraphs (23) and (3),
respectively, of section 101 of title 37, United States Code.
``(B) The following amounts of pay and allowance of a
member of the uniformed services shall not be considered to
be income for purposes of determining the eligibility of a
dependent of such member for programs funded under this
subchapter:
``(i) The amount of any special pay payable under section
310 of title 37, United States Code, relating to duty subject
to hostile fire or imminent danger.
``(ii) The amount of basic allowance payable under section
403 of such title, including any such amount that is provided
on behalf of the member for housing that is acquired or
constructed under the alternative authority for the
acquisition and improvement of military housing under
subchapter IV of chapter 169 of title 10, United States Code,
or any other related provision of law.
``(4) After demonstrating a need through a communitywide
needs assessment, a Head Start agency may apply to the
Secretary to convert part-day sessions, particularly
consecutive part-day sessions, into full-day sessions.
``(5)(A) Consistent with a communitywide needs assessment,
a Head Start agency may apply to the Secretary to serve
additional infants and toddlers if the agency submits an
application to the Secretary containing--
``(i) a description of how the needs of pregnant women,
infants, and toddlers will be addressed in accordance with
section 645A(b), and with regulations prescribed by the
Secretary pursuant to section 641A in areas including the
agency's approach to child development and provision of
health services, approach to family and community
partnerships, and approach to program design and management;
``(ii) a description of how the needs of eligible Head
Start children are being and will be served;
``(iii) assurances that the agency will participate in
technical assistance activities (including a planning period,
start-up site visits, and national training activities) in
the same manner as recipients of grants under section 645A;
and
``(iv) evidence that the agency meets the same eligibility
criteria as recipients of grants under section 645A.
``(B) In approving such applications, the Secretary shall
take into account the costs of serving persons under section
645A.
``(C) Any Head Start agency designated under this section
and permitted to use grant funds under subparagraph (A) to
serve additional infants and toddlers shall be considered to
be an Early Head Start agency and shall be subject to the
same rules, regulations, and conditions as apply to
recipients of grants under section 645A for those grant
funds.''; and
(2) in the first sentence of subsection (c), by striking
``(age 3 to compulsory school attendance)'' and inserting
``(other than children eligible for an Early Head Start
program)''; and
(3) in subsection (d), by adding at the end the following:
``(4) Notwithstanding any other provision of this Act, an
Indian tribe that operates both an Early Head Start program
under section 645A and a Head Start program may, at its
discretion, at any time during the grant period involved,
reallocate funds between the Early Head Start program and the
Head Start program in order to address fluctuations in client
population, including pregnant women and children birth to
compulsory school age. The reallocation of such funds between
programs by an Indian tribe shall not serve as the basis for
the Secretary to reduce a base grant (as defined in section
641A(g)(1)) for either program in succeeding years.''.
SEC. 15. EARLY HEAD START PROGRAMS.
Section 645A of the Head Start Act (42 U.S.C. 9840a) is
amended--
(1) by striking the section heading and inserting the
following:
``SEC. 645A. EARLY HEAD START PROGRAMS.'';
(2) in subsection (b)--
(A) in paragraph (4), by striking ``provide services to
parents to support their role as parents'' and inserting
``provide additional services and research-based activities
to parents to support their role as parents (including
parenting skills training and training in basic child
development)'';
(B) by redesignating paragraphs (5), (6), (7), (8), and (9)
as paragraphs (6), (8), (11), (12), and (13), respectively;
(C) by inserting after paragraph (4) the following:
``(5) where appropriate and in conjunction with services
provided under this section to the children's immediate
families (or as approved by the Secretary), provide home-
based services to family child care homes, and kin
caregivers, caring for infants and toddlers who also
participate in Early Head Start programs, to provide
continuity in supporting the children's cognitive, social,
emotional, and physical development;'';
(D) in paragraph (6), as redesignated by subparagraph (B)--
(i) by inserting ``(including home-based services)'' after
``with services'';
(ii) by inserting ``and homeless infants and toddlers''
after ``disabilities''; and
(iii) by inserting ``, and family support services'' after
``health services'';
(E) by inserting after paragraph (6), as redesignated by
subparagraph (B), the following:
``(7) ensure that children with documented behavioral
problems, including problems involving behavior related to
prior or existing trauma, receive appropriate screening and
referral;'';
(F) by inserting after paragraph (8), as redesignated by
subparagraph (B), the following:
``(9) develop and implement a systematic procedure for
transitioning children and parents from an Early Head Start
program to a Head Start program or another local program of
early childhood education and care;
``(10) establish channels of communication between staff of
Early Head Start programs and staff of Head Start programs or
other local providers of early childhood education and care,
to facilitate the coordination of programs;''; and
(G) in paragraph (12), as redesignated by subparagraph
(B)--
(i) by striking ``and providers'' and inserting ``,
providers''; and
(ii) by inserting ``, and the agencies responsible for
administering section 106 of the Child Abuse Prevention and
Treatment Act (42 U.S.C. 5106a) and parts B and E of title IV
of the Social Security Act (42 U.S.C. 621 et seq. and 670 et
seq.)'' after ``(20 U.S.C. 1400 et seq.)'';
(3) in subsection (d)--
(A) in paragraph (1), by inserting ``, including tribal
governments and entities operating migrant and seasonal Head
Start programs'' after ``subchapter''; and
(B) in paragraph (2), by inserting ``, including community-
based organizations'' after ``private entities'';
(4) in subsection (g)(2)--
(A) in subparagraph (A), by adding at the end the
following: ``In determining the amount so reserved, the
Secretary shall consider the number of Early Head Start
programs newly funded for that fiscal year.''; and
(B) in subparagraph (B)--
(i) in clause (ii), by inserting ``, including supporting
infant and toddler specialists to assist such staff and
improve the programs carried out under this section'' after
``section''; and
(ii) by striking clause (iv) and inserting the following:
``(iv) providing professional development and personnel
enhancement activities, including the provision of funds to
recipients of grants under subsection (a), relating to--
``(I) effective methods of conducting parent education,
home visiting, and promoting quality early childhood
development;
``(II) recruiting and retaining qualified staff; and
``(III) increasing program participation for underserved
populations of eligible children.''; and
(5) by adding at the end the following:
``(h) Staff Qualifications and Development.--
``(1) Center-based staff.--The Secretary shall establish
staff qualification goals to ensure that, not later than
September 30, 2012, all teachers providing direct services to
Early Head Start children and families in Early Head Start
centers have a minimum of a child development associate
credential or an associate degree, and have been trained (or
have equivalent course work) in early childhood development
with a focus on infant and toddler development.
``(2) Home visitor staff.--
``(A) Standards.--In order to further enhance the quality
of home visiting services provided to families of children
participating in home-based, center-based, or combination
program options under this subchapter, the Secretary shall
establish standards for training, qualifications, and the
conduct of home visits for home visitor staff in Early Head
Start programs.
``(B) Contents.--The standards for training,
qualifications, and the conduct of home visits shall include
content related to--
``(i) structured child-focused home visiting that promotes
parents' ability to support the child's cognitive, social,
emotional, and physical development;
``(ii) effective strengths-based parent education,
including methods to encourage parents as their child's first
teachers;
``(iii) early childhood development with respect to
children from birth through age 3;
``(iv) methods to help parents promote emergent literacy in
their children from
[[Page S7992]]
birth through age 3, including use of research-based
strategies to support the development of literacy and
language skills for children who are limited English
proficient;
``(v) health, vision, hearing, and developmental
screenings;
``(vi) strategies for helping families coping with crisis;
and
``(vii) the relationship of health and well-being of
pregnant women to prenatal and early child development.''.
SEC. 16. APPEALS, NOTICE, AND HEARING AND RECORDS AND
FINANCIAL AUDITS.
(a) Appeals, Notice, and Hearing.--Section 646(a) of the
Head Start Act (42 U.S.C. 9841(a)) is amended by striking
paragraphs (3) and (4) and inserting the following:
``(3) financial assistance under this subchapter may be
terminated or reduced, and an application for refunding may
be denied, after the recipient has been afforded reasonable
notice and opportunity for a full and fair hearing,
including--
``(A) a right to file a notice of appeal of a decision not
later than 30 days after notice of the decision from the
Secretary; and
``(B) access to a full and fair hearing of the appeal, not
later than 120 days after receipt by the Secretary of the
notice of appeal;
``(4) the Secretary shall develop and publish procedures
(including mediation procedures) to be used in order to--
``(A) resolve in a timely manner conflicts potentially
leading to an adverse action between--
``(i) recipients of financial assistance under this
subchapter; and
``(ii) delegate agencies, or policy councils of Head Start
agencies;
``(B) avoid the need for an administrative hearing on an
adverse action; and
``(C) prohibit a Head Start agency from expending financial
assistance awarded under this subchapter for the purpose of
paying legal fees pursuant to an appeal under paragraph (3),
except that such fees shall be reimbursed by the Secretary if
the agency prevails in such decision; and
``(5) the Secretary may suspend funds to a grantee under
this subchapter--
``(A) except as provided in subparagraph (B), for not more
than 30 days; or
``(B) in the case of a grantee under this subchapter that
has multiple and recurring deficiencies for 180 days or more
and has not made substantial and significant progress toward
meeting the goals of the grantee's quality improvement plan
or eliminating all deficiencies identified by the Secretary,
during the hearing of an appeal described in paragraph (3),
for any amount of time, including permanently.''.
(b) Records and Financial Audits.--
(1) Heading.--Section 647 of the Head Start Act (42 U.S.C.
9842) is amended by striking the section heading and
inserting the following: ``records and financial audits''.
(2) Recipients.--Section 647(a) of the Head Start Act (42
U.S.C. 9842(a)) is amended by striking ``Each recipient of''
and inserting ``Each Head Start center, including each Early
Head Start center, receiving''.
(3) Financial audits.--Subsections (a) and (b) of section
647 of the Head Start Act (42 U.S.C. 9842) are amended by
striking ``audit'' and inserting ``financial audit''.
(4) Accounting.--Section 647 of the Head Start Act (42
U.S.C. 9842) is amended by adding at the end the following:
``(c) Each Head Start center, including each Early Head
Start center, receiving financial assistance under this
subchapter shall maintain, and annually submit to the
Secretary, a complete accounting of its administrative
expenses, including expenses for salaries and compensation
funded under this subchapter and provide such additional
documentation as the Secretary may require.''.
SEC. 17. TECHNICAL ASSISTANCE AND TRAINING.
Section 648 of the Head Start Act (42 U.S.C. 9843) is
amended--
(1) in subsection (a)(2), by striking ``(b) and (c)'' and
inserting ``(b), (c), and (d)'';
(2) by redesignating subsections (b) through (e) as
subsections (c) through (f), respectively;
(3) by inserting after subsection (a) the following:
``(b) The Secretary shall make available funds set aside in
section 640(a)(2)(C)(ii) to support a State system of
training and technical assistance (which may include such a
system for a consortium of States within a region) that
improves the capacity of Head Start programs to deliver
services in accordance with the standards described in
section 641A(a)(1), with particular attention to the
standards described in subparagraphs (A) and (B) of such
section. The Secretary shall--
``(1) ensure that agencies with demonstrated expertise in
providing high-quality training and technical assistance to
improve the delivery of Head Start services, including the
State Head Start Associations, State agencies, Indian Head
Start agencies, migrant and seasonal Head Start agencies, and
other entities providing training and technical assistance in
early childhood education and care, for the State (including
such a consortium of States within a region), are included in
the planning and coordination of the system; and
``(2) encourage States (including such consortia) to
supplement the funds authorized in section 640(a)(2)(C)(ii)
with Federal, State, or local funds other than funds made
available under this subchapter, to expand training and
technical assistance activities beyond Head Start agencies to
include other providers of other early childhood education
and care within a State (including such a consortium).'';
(4) in paragraph (3) of subsection (c), as redesignated by
paragraph (2), by striking ``child care and early childhood
programs'' and inserting ``early childhood education and care
programs'';
(5) in subsection (d), as redesignated by paragraph (2)--
(A) in paragraph (1)(B)(ii), by striking ``educational
performance measures'' and inserting ``measures'';
(B) in paragraph (2), by inserting ``and for activities
described in section 1222(d) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6372(d))'' after ``children
with disabilities'';
(C) in paragraph (3), by striking ``early childhood
professional development systems'' and inserting
``professional development systems regarding early childhood
education and care'';
(D) in paragraph (5), by inserting ``, including assessing
the needs of homeless children and their families'' after
``needs assessment'';
(E) by striking paragraph (7) and inserting the following:
``(7) assist Head Start agencies in better serving the
needs of families with very young children, including
providing support and program planning and implementation
assistance for Head Start agencies that apply to serve or are
serving additional infants and toddlers with funds previously
used for 3- and 4-year-olds in accordance with section
645(a)(5);'';
(F) in paragraph (10), by striking ``; and'' and inserting
a semicolon;
(G) in paragraph (11), by striking the period and inserting
a semicolon; and
(H) by adding at the end the following:
``(12) assist Head Start agencies in increasing the program
participation of homeless children;
``(13) provide training and technical assistance to members
of governing bodies, policy councils, and, as appropriate,
policy committees, to ensure that the members can fulfill
their functions;
``(14) provide training and technical assistance to Head
Start agencies to assist such agencies in conducting self-
assessments;
``(15) assist Head Start agencies in improving outreach to,
and the quality of services available to, families of limited
English proficient children, including such services to help
such families learn English, particularly in communities that
have experienced a large percentage increase in the
population of such families;
``(16) assist Head Start agencies and improve programs to
increase the capacity of classroom staff to meet the needs of
children with disabilities in Head Start classrooms;
``(17) provide activities that help ensure that Head Start
programs have qualified staff who can promote prevention of
childhood obesity by integrating into the programs
developmentally appropriate research-based initiatives that
stress the importance of physical activity and nutrition
choices made by children and family, through daily classroom
and family routines; and
``(18) assist Indian Head Start agencies to provide on-site
and off-site training to staff, using approaches that
identify and enhance the positive resources and strengths of
Indian children and families, to improve parent and family
engagement and staff development, particularly with regard to
child and family development.'';
(6) in subsection (e), as redesignated by paragraph (2), by
inserting ``including community-based organizations,'' after
``nonprofit entities,'';
(7) in subsection (f), as redesignated by paragraph (2)--
(A) by striking ``early childhood development and child
care programs'' and inserting ``early childhood education and
care programs''; and
(B) by inserting ``or providing services to children
determined to be abused or neglected, training for personnel
providing services to children referred by entities providing
child welfare services or receiving child welfare services,''
after ``English language)''; and
(8) by adding at the end the following:
``(g) The Secretary shall provide, either directly or
through grants or other arrangements, funds for training of
Head Start personnel in addressing the unique needs of
children with disabilities and their families, migrant and
seasonal farmworker families, families of children with
limited English proficiency, and homeless families.
``(h) Funds used under this section shall be used to
provide high quality, sustained, and intensive, training and
technical assistance in order to have a positive and lasting
impact on classroom instruction. Funds shall be used to carry
out activities related to 1 or more of the following:
``(1) Education and early childhood development.
``(2) Child health, nutrition, and safety.
``(3) Family and community partnerships.
``(4) Other areas that impact the quality or overall
effectiveness of Head Start programs.
``(i) Funds used under this section for training shall be
used for needs identified annually by a grant applicant
(including any delegate agency) in its program improvement
plan, except that funds shall not be used for long-distance
travel expenses for training activities--
``(1) available locally or regionally; or
``(2) substantially similar to locally or regionally
available training activities.
[[Page S7993]]
``(j)(1) To support local efforts to enhance early language
and preliteracy development of children in Head Start
programs, and to provide the children with high-quality oral
language skills, and environments that are rich in
literature, in which to acquire language and preliteracy
skills, each Head Start agency, in coordination with the
appropriate State office and the relevant State Head Start
collaboration office, shall ensure that all of the agency's
Head Start teachers receive ongoing training in language and
emergent literacy (referred to in this subsection as
`literacy training'), including appropriate curricula and
assessments to improve instruction and learning. Such
training shall include training in methods to promote
phonological awareness (including phonemic awareness) and
vocabulary development in an age-appropriate and culturally
and linguistically appropriate manner.
``(2) The literacy training shall be provided at the local
level in order--
``(A) to be provided, to the extent feasible, in the
context of the Head Start programs of the State involved and
the children the program involved serves; and
``(B) to be tailored to the early childhood literacy
background and experience of the teachers involved.
``(3) The literacy training shall be culturally and
linguistically appropriate and support children's development
in their home language.
``(4) The literacy training shall include training in how
to work with parents to enhance positive language and early
literacy development at home.
``(5) The literacy training shall include specific methods
to best address the needs of children who are limited English
proficient.
``(6) The literacy training shall include training on how
to best address the language and literacy needs of children
with disabilities, including training on how to work with
specialists in language development.''.
SEC. 18. STAFF QUALIFICATION AND DEVELOPMENT.
Section 648A of the Head Start Act (42 U.S.C. 9843a) is
amended--
(1) in subsection (a)--
(A) by striking paragraph (2) and inserting the following:
``(2) Degree requirements.--
``(A) In general.--The Secretary shall establish staff
qualification goals to ensure that--
``(i) not later than September 30, 2012, all Head Start
teachers nationwide in center-based programs have at least--
``(I)(aa) an associate degree (or equivalent coursework)
relating to early childhood; or
``(bb) an associate degree in a related educational area
and, to the extent practicable, coursework relating to early
childhood; and
``(II) demonstrated teaching competencies, as determined by
the program director involved (including, at a minimum, an
appropriate level of literacy, a demonstrated capacity to be
highly engaged with children, and a demonstrated ability to
effectively implement an early childhood curriculum);
``(ii) not later than September 30, 2010, all Head Start
curriculum specialists and education coordinators nationwide
in center-based programs have--
``(I) the capacity to offer assistance to other teachers in
the implementation and adaptation of curricula to the group
and individual needs of a class; and
``(II)(aa) a baccalaureate or advanced degree relating to
early childhood; or
``(bb) a baccalaureate or advanced degree and coursework
equivalent to a major relating to early childhood;
``(iii) not later than September 30, 2010, all Head Start
teaching assistants nationwide in center-based programs
have--
``(I) at least a child development associate credential;
``(II) enrolled in a program leading to an associate or
baccalaureate degree; or
``(III) enrolled in a child development associate
credential program to be completed within 2 years; and
``(iv) not later than September 30, 2013, 50 percent of all
Head Start teachers in center-based programs in each State
(and geographic region for Indian Head Start programs and for
migrant and seasonal Head Start programs) have a
baccalaureate degree relating to early childhood (or a
related educational area), and demonstrated teaching
competencies, as determined by the program director involved
(including, at a minimum, an appropriate level of literacy, a
demonstrated capacity to be highly engaged with children, and
a demonstrated ability to effectively implement an early
childhood curriculum).
``(B) Teacher in-service requirement.--Each Head Start
teacher shall attend not less than 15 clock hours of
professional development per year. Such professional
development shall be high quality, sustained, intensive, and
classroom-focused in order to have a positive and lasting
impact on classroom instruction and the teacher's performance
in the classroom, and regularly evaluated for effectiveness.
``(C) Progress.--
``(i) Report.--The Secretary shall--
``(I) require Head Start agencies to--
``(aa) describe continuing progress each year toward
achieving the goals described in subparagraph (A);
``(bb) submit to the Secretary a report indicating the
number and percentage of classroom instructors in center-
based programs with child development associate credentials
or associate, baccalaureate, or advanced degrees; and
``(II) compile and submit a summary of all program reports
described in subclause (I)(bb) to the Committee on Education
and Labor of the House of Representatives and the Committee
on Health, Education, Labor, and Pensions of the Senate.
``(ii) Demonstrate progress.--A Head Start agency may
demonstrate that progress by partnering with institutions of
higher education or other programs that recruit, train,
place, and support college students to deliver an innovative
program of early childhood education and care to preschool
children.
``(D) Service requirements.--The Secretary shall establish
requirements to ensure that, in order to enable Head Start
agencies to comply with the requirements of subparagraph (A),
individuals who receive financial assistance under this
subchapter to pursue a degree or credential described in
subparagraph (A) shall--
``(i) teach or work in a Head Start program for a minimum
of 3 years after receiving the degree; or
``(ii) repay the total or a prorated amount of the
financial assistance received based on the length of service
completed after receiving the degree.''; and
(B) in paragraph (3), by striking ``(i) or (ii)'' and
inserting ``(i) or (iv)'';
(2) in subsection (c)--
(A) in paragraph (2), by striking ``and'' at the end;
(B) in paragraph (3), by striking the period and inserting
``; and''; and
(C) by adding at the end the following:
``(4) promote the use of appropriate strategies to meet the
needs of special populations (including populations of
limited English proficient children).'';
(3) in subsection (d)(3)(C) by inserting ``, including a
center,'' after ``any agency''; and
(4) by adding at the end the following:
``(f) Professional Development Plans.--Every Head Start
agency and center shall create, in consultation with
employees of the agency or center (including family service
workers), a professional development plan for employees who
provide direct services to children, including a plan for
classroom teachers, curriculum specialists, and education
coordinators, and teaching assistants to meet the
requirements set forth in subsection (a).
``(g) Construction.--In this section, a reference to a Head
Start agency, or its program, services, facility or
personnel, shall not be considered to be a reference to an
Early Head Start agency, or its program, services, facility
or personnel. For purposes of this section, a teacher who is
providing services, in a migrant or seasonal Head Start
program, in a classroom for children under age 3, shall be
considered to be a teacher in an Early Head Start program, as
described in section 645A.''.
SEC. 19. TRIBAL COLLEGES AND UNIVERSITIES HEAD START
PARTNERSHIP.
The Head Start Act (42 U.S.C. 9831 et seq.) is amended by
inserting after section 648A the following:
``SEC. 648B. TRIBAL COLLEGE OR UNIVERSITY HEAD START
PARTNERSHIP PROGRAM.
``(a) Purpose.--The purpose of this section is to promote
social competencies and school readiness in Indian children.
``(b) Tribal College or University Head Start Partnership
Program.--
``(1) Grants.--The Secretary is authorized to award grants,
for periods of not less than 5 years, to Tribal Colleges and
Universities to--
``(A) implement education programs that include education
concerning tribal culture and language and increase the
number of associate, baccalaureate, and advanced degrees in
early childhood education and related fields that are earned
by Indian Head Start agency staff members, parents of
children served by such an agency, and members of the tribal
community involved;
``(B) develop and implement the programs under subparagraph
(A) in technology-mediated formats, including providing the
programs through such means as distance learning and use of
advanced technology, as appropriate; and
``(C) provide technology literacy programs for Indian Head
Start agency staff members and children and families of
children served by such an agency.
``(2) Staffing.--The Secretary shall ensure that the
American Indian Programs Branch of the Head Start Bureau of
the Department of Health and Human Services shall have
staffing sufficient to administer the programs under this
section and to provide appropriate technical assistance to
Tribal Colleges and Universities receiving grants under this
section.
``(c) Application.--Each Tribal College or University
desiring a grant under this section shall submit an
application to the Secretary, at such time, in such manner,
and containing such information as the Secretary may require,
including a certification that the Tribal College or
University has established a partnership with 1 or more
Indian Head Start agencies for the purpose of conducting the
activities described in subsection (b).
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section,
$10,000,000 for fiscal year 2008 and such sums as may be
necessary for each of fiscal years 2009 through 2012.
``(e) Definitions.--In this section:
``(1) Institution of higher education.--The term
`institution of higher education' has the meaning given such
term in section
[[Page S7994]]
101(a) of the Higher Education Act of 1965 (20 U.S.C.
1001(a)).
``(2) Tribal college or university.--The term `Tribal
College or University'--
``(A) has the meaning given such term in section 316 of the
Higher Education Act of 1965 (20 U.S.C. 1059c); and
``(B) means an institution determined to be accredited or a
candidate for accreditation by a nationally recognized
accrediting agency or association.''.
SEC. 20. RESEARCH, DEMONSTRATIONS, AND EVALUATION.
Section 649 of the Head Start Act (42 U.S.C. 9844) is
amended--
(1) in subsection (a)(1)(B), by inserting ``, children
determined to be abused or neglected, homeless children, and
children in foster care'' after ``children with
disabilities'';
(2) in subsection (d)--
(A) by redesignating paragraphs (5), (6), (7), (8), (9),
and (10), as paragraphs (6), (8), (9), (10), (11), and (12);
(B) by inserting after paragraph (4) the following:
``(5)(A) identify successful strategies that promote good
oral health and provide effective linkages to quality dental
services through pediatric dental referral networks, for
infants and toddlers participating in Early Head Start
programs and children participating in other Head Start
programs; and
``(B) identify successful strategies that promote good
vision health through vision screenings for such infants,
toddlers, and children, and referrals for appropriate
followup care for those identified as having a vision
problem;'';
(C) in paragraph (6), as redesignated by subparagraph (A),
by striking ``child care, early childhood education, or child
development services'' and inserting ``early childhood
education and care services'';
(D) by inserting after that paragraph (6) the following:
``(7)(A) contribute to understanding the impact of services
related to children with disabilities, delivered in Head
Start classrooms, on both children with disabilities and
typically-developing children; and
``(B) disseminate promising practices for increasing the
availability and quality of such services;'';
(E) in paragraph (10), as redesignated by subparagraph (A),
by adding ``and'' after the semicolon;
(F) by striking paragraph (11), as redesignated by
subparagraph (A);
(G) by redesignating paragraph (12), as redesignated by
subparagraph (A), as paragraph (11); and
(H) by striking the last sentence;
(3) in subsection (e)(3), by striking ``child care, early
childhood education, or child development services'' and
inserting ``early childhood education and care services'';
(4) in subsection (g)--
(A) in paragraph (1)(A)--
(i) in the matter preceding clause (i), by striking
``education, and early childhood programs'' and inserting
``and early childhood education and care programs'';
(ii) by striking clause (i); and
(iii) by redesignating clauses (ii) and (iii) as clauses
(i) and (ii), respectively;
(B) in paragraph (2), by striking ``, and research,
education, and early childhood programs'' and inserting ``and
research, and early childhood education and care programs'';
(C) in paragraph (5)(D)--
(i) in clause (i), by striking ``early childhood programs''
and inserting ``early childhood education and care
programs''; and
(ii) in clause (ii), by striking ``early childhood
program'' and inserting ``early childhood education and care
program''; and
(D) in paragraph (7)(C)--
(i) in clause (i), by striking ``2003'' and inserting
``2008''; and
(ii) in clause (ii)--
(I) by striking ``Education and the Workforce'' and
inserting ``Education and Labor''; and
(II) by striking ``Labor and Human Resources'' and
inserting ``Health, Education, Labor, and Pensions''; and
(5) by striking subsection (h) and inserting the following:
``(h) Review of Assessments.--
``(1) Application of study.--When the study on
Developmental Outcomes and Assessments for Young Children by
the National Academy of Sciences is made available to the
Secretary, the Secretary shall--
``(A) incorporate the results of the study, as appropriate
and in accordance with paragraphs (2) and (3), into each
assessment used in the Head Start programs; and
``(B) use the results of the study to develop, inform, and
revise the standards and measures described in section 641A.
``(2) Development and refinement.--In developing and
refining any assessment used in the Head Start programs, the
Secretary shall--
``(A) receive recommendations from the Panel on
Developmental Outcomes and Assessments for Young Children of
the National Academy of Sciences; and
``(B) with respect to the development or refinement of such
assessment, ensure--
``(i) consistency with relevant, nationally recognized
professional and technical standards;
``(ii) validity and reliability for all purposes for which
assessments under this subchapter are designed and used;
``(iii) developmental and linguistic appropriateness of
such assessments for children assessed, including children
who are limited English proficient; and
``(iv) that the results can be used to improve the quality
of, accountability of, and training and technical assistance
in, Head Start programs.
``(3) Additional requirements.--The Secretary, in carrying
out the process described under paragraph (2), shall ensure
that--
``(A) staff administering any assessments under this
subchapter have received appropriate training to administer
such assessments;
``(B) appropriate accommodations for children with
disabilities and children who are limited English proficient
are made;
``(C) the English and Spanish (and any other language, as
appropriate) forms of such assessments are valid and
reliable; and
``(D) such assessments are not used to exclude children
from Head Start programs.
``(4) Suspended implementation of national reporting
system.--The Secretary shall--
``(A) suspend implementation and terminate further
development and use of the National Reporting System; and
``(B) incorporate, as appropriate, recommendations under
paragraph (2)(A) into any assessment used in the Head Start
programs.
``(i) Special Rule.--The use of assessment items and data
on any assessment authorized under this subchapter by any
agent of the Federal Government to rank or compare individual
children or teachers, or to provide rewards or sanctions for
individual children or teachers is prohibited. The Secretary
shall not use the results of a single assessment as the sole
method for assessing program effectiveness or making grantee
funding determinations at the national, regional, or local
level under this subchapter.
``(j) Services to Limited English Proficient Children and
Families.--
``(1) Study.--The Secretary shall conduct a study on the
status of limited English proficient children and their
families in Head Start (including Early Head Start) programs.
``(2) Report.--The Secretary shall prepare and submit to
Congress, not later than September 2011, a report containing
the results of the study, including information on--
``(A) the demographics of limited English proficient
children from birth through age 5, including the number of
such children receiving Head Start (including Early Head
Start) services and the geographic distribution of children
described in this subparagraph;
``(B) the nature of Head Start (including Early Head Start)
services provided to limited English proficient children and
their families, including the types, content, duration,
intensity, and costs of family services, language assistance,
and educational services;
``(C) procedures in Head Start programs for the assessment
of language needs and the transition of limited English
proficient children to kindergarten, including the extent to
which Head Start programs meet the requirements of section
642A for limited English proficient children;
``(D) the qualifications of and training provided to Head
Start (including Early Head Start) teachers serving limited
English proficient children and their families;
``(E) the rate of progress made by limited English
proficient children and their families in Head Start
(including Early Head Start) programs, including--
``(i) the rate of progress of the limited English
proficient children toward meeting the additional educational
standards described in section 641A(a)(1)(B)(ii) while
enrolled in Head Start programs, measured between 1990 and
2006;
``(ii) the correlation between the progress described in
this subparagraph and the type of instruction and educational
program provided to the limited English proficient children;
and
``(iii) the correlation between the progress described in
this subparagraph and the health and family services provided
by Head Start programs to limited English proficient children
and their families; and
``(F) the extent to which Head Start programs make use of
funds under section 640(a)(3) to improve the quality of Head
Start services provided to limited English proficient
children and their families.
``(k) Research and Evaluation Activities Relevant to
Diverse Communities.--For purposes of conducting the study in
described in subsection (j), activities described in section
640(l)(5)(A), and other research and evaluation activities
relevant to limited English proficient children and their
families, migrant and seasonal farmworker families, and other
families from diverse populations served by Head Start
programs, the Secretary shall award, on a competitive basis,
funds from amounts made available under section 639(b) to 1
or more organizations with a demonstrated capacity for
serving and studying the populations involved.''.
SEC. 21. REPORTS.
Section 650 of the Head Start Act (42 U.S.C. 9846) is
amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``Education and the Workforce'' and
inserting ``Education and Labor'';
(ii) by striking ``Labor and Human Resources'' and
inserting ``Health, Education, Labor, and Pensions''; and
(iii) by striking ``(including disabled and non-English
language background children)'' and inserting ``(including
children with disabilities, limited English proficient
children,
[[Page S7995]]
and children participating in Indian Head Start programs and
migrant and seasonal Head Start programs)'';
(B) in paragraph (8), by inserting ``homelessness, children
in foster care,'' after ``ethnic background,'';
(C) in paragraph (12), by inserting ``vision care,'' after
``dental care,'';
(D) in paragraph (14)--
(i) by striking ``Alaskan Natives'' and inserting ``Alaska
Natives''; and
(ii) by striking ``migrant and'' and inserting ``migrant
or''; and
(E) in the flush matter at the end--
(i) by striking ``Education and the Workforce'' and
inserting ``Education and Labor''; and
(ii) by striking ``Labor and Human Resources'' and
inserting ``Health, Education, Labor, and Pensions''; and
(2) in subsection (b)--
(A) by striking ``Education and the Workforce'' and
inserting ``Education and Labor'';
(B) by striking ``Labor and Human Resources'' and inserting
``Health, Education, Labor, and Pensions''; and
(C) by striking ``Native Alaskan'' and inserting ``Alaska
Native''.
SEC. 22. COMPARABILITY OF WAGES.
Section 653 of the Head Start Act (42 U.S.C. 9848) is
amended--
(1) by striking ``The Secretary shall take'' and inserting
``(a) The Secretary shall take''; and
(2) by adding at the end the following:
``(b) No Federal funds shall be used to pay the
compensation of an individual employed by a Head Start agency
in carrying out programs under this subchapter, either as
direct or indirect costs or any proration of such costs, in
an amount in excess of an amount based on the rate payable
for level II of the Executive Schedule under section 5313 of
title 5, United States Code.''.
SEC. 23. LIMITATION WITH RESPECT TO CERTAIN UNLAWFUL
ACTIVITIES.
Section 655 of the Head Start Act (42 U.S.C. 9850) is
amended by inserting ``or in'' after ``assigned by''.
SEC. 24. POLITICAL ACTIVITIES.
Section 656 of the Head Start Act (42 U.S.C. 9851) is
amended--
(1) by striking all that precedes ``chapter 15'' and
inserting the following:
``SEC. 656. POLITICAL ACTIVITIES.
``(a) State or Local Agency.--For purposes of''; and
(2) by striking subsection (b) and inserting the following:
``(b) Restrictions.--
``(1) In general.--A program assisted under this
subchapter, and any individual employed by, or assigned to or
in, a program assisted under this subchapter (during the
hours in which such individual is working on behalf of such
program), shall not engage in--
``(A) any partisan or nonpartisan political activity or any
other political activity associated with a candidate, or
contending faction or group, in an election for public or
party office; or
``(B) any activity to provide voters or prospective voters
with transportation to the polls or similar assistance in
connection with any such election.
``(2) Rules and regulations.--The Secretary, after
consultation with the Director of the Office of Personnel
Management, may issue rules and regulations to provide for
the enforcement of this section, which may include provisions
for summary suspension of assistance or other action
necessary to permit enforcement on an emergency basis.''.
SEC. 25. PARENTAL CONSENT REQUIREMENT FOR HEALTH SERVICES.
The Head Start Act (42 U.S.C. 9831 et seq.) is amended by
adding at the end the following new section:
``SEC. 657A. PARENTAL CONSENT REQUIREMENT FOR NONEMERGENCY
INTRUSIVE PHYSICAL EXAMINATIONS.
``(a) Definition.--The term `nonemergency intrusive
physical examination' means, with respect to a child, a
physical examination that--
``(1) is not immediately necessary to protect the health or
safety of the child involved or the health or safety of
another individual; and
``(2) requires incision or is otherwise invasive, or
involves exposure of private body parts.
``(b) Requirement.--A Head Start agency shall obtain
written parental consent before administration of any
nonemergency intrusive physical examination of a child in
connection with participation in a program under this
subchapter.
``(c) Rule of Construction.--Nothing in this section shall
be construed to prohibit agencies from using established
methods, for handling cases of suspected or known child abuse
and neglect, that are in compliance with applicable Federal,
State, or tribal law.''.
SEC. 26. CONFORMING AMENDMENT.
Section 2501(c)(1)(C) of the Children's Health Act of 2000
(42 U.S.C. 247b-1 note) is amended by striking ``9840a(h)''
and inserting ``9840a''.
SEC. 27. COMPLIANCE WITH THE IMPROPER PAYMENTS INFORMATION
ACT OF 2002.
(a) Definitions.--In this section, the term--
(1) ``appropriate committees'' means--
(A) the Committee on Health, Education, Labor, and Pensions
of the Senate; and
(B) the Committee on Education and Labor of the House of
Representatives; and
(2) ``improper payment'' has the meaning given that term
under section 2(d)(2) of the Improper Payments Information
Act of 2002 (31 U.S.C. 3321 note).
(b) Requirement for Compliance Certification and Report.--
The Secretary of Health and Human Services shall submit a
report to the appropriate committees that--
(1) contains a certification that the Department of Health
and Human Services has, for each program and activity of the
Administration for Children and Families, performed and
completed a risk assessment to determine programs and
activities that are at significant risk of making improper
payments; and
(2) describes the actions to be taken to reduce improper
payments for the programs and activities determined to be at
significant risk of making improper payments.
______
SA 1715. Mr. CRAIG submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:
On page 221, line 21, strike ``and''.
On page 221, between lines 21 and 22, insert the following:
(iv) wood products that are certified under all nationally
recognized sustainable forest certification programs, as
determined by the Director, that are carried out by a third
party; and
On page 221, line 22, strike ``(iv)'' and insert ``(v)''.
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