S.Amdt. 3601Senate110th Congress (2007-2009)

S.Amdt. 3601

Submitted November 13, 2007

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Senate amendment submitted

November 13, 2007

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Senate amendment submitted

November 13, 2007

Intro Referral

Referred to the Committee on Health, Education, Labor, and Pensions.

November 13, 2007

Text

Submitted

TEXT OF AMENDMENTS

  SA 3597. Mr. LOTT submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       At the end of chapter 4 of subtitle D of title II, add the
     following:

     SEC. 2399A. MISSISSIPPI RIVER/GULF OF MEXICO NUTRIENT TASK
                   FORCE ACTION PLAN FOR REDUCING, MITIGATING, AND
                   CONTROLLING HYPOXIA IN THE NORTHERN GULF OF
                   MEXICO WATERSHED.

       Notwithstanding any other provision of this Act, the
     Secretary shall ensure that, for each of fiscal years 2008
     through 2012, the amount spent for the fiscal year in
     accordance with this Act to implement the action plan of the
     Mississippi River/Gulf of Mexico Nutrient Task Force for
     reducing, mitigating, and controlling hypoxia in the Northern
     Gulf of Mexico watershed is an amount equal to 10 percent
     more than the amount spent to implement the action plan
     during the preceding fiscal year.
                                 ______

  SA 3598. Mr. BAUCUS submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:


[[Page S14303]]


       On page 245, between lines 22 and 23, insert the following:
       (b) Eligibility.--Section 101 of the Specialty Crops
     Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
     108-465) is amended by striking subsection (e) and inserting
     the following:
       ``(e) Plan Requirements.--
       ``(1) In general.--The State plan shall identify the lead
     agency charged with the responsibility for carrying out the
     plan and indicate how the grant funds will be used to enhance
     the competitiveness of specialty crops.
       ``(2) Representation of certain individuals.--To the
     maximum extent practicable and appropriate, the State plan
     shall be developed taking into consideration the opinions and
     expertise of beginning farmers or ranchers (as defined in
     section 343(a) of the Consolidated Farm and Rural Development
     Act (7 U.S.C. 1991(a)) and socially disadvantaged farmers or
     ranchers (as defined in section 355(e) of the Consolidated
     Farm and Rural Development Act (7 U.S.C. 2003(e))).''.
       (c) Audit and Plan Requirements.--Section 101 of the
     Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621
     note; Public Law 108-465) is amended by striking subsection
     (h) and inserting the following:
       ``(h) Audit and Plan Requirements.--
       ``(1) In general.--For each year that a State receives a
     grant under this section, the State shall conduct an audit of
     the expenditures of grant funds by the State.
       ``(2) Submission of audit and description.--Not later than
     30 days after the date of completion of an audit under
     paragraph (1), the State shall submit to the Secretary of
     Agriculture--
       ``(A) a copy of the audit;
       ``(B) a description of the ways in which the State is
     complying with the requirement under subsection (e); and
       ``(C) such additional information as the Secretary may
     request to ensure, to the maximum extent practicable, that
     the State is complying with that requirement.''.
       On page 245, line 23, strike ``(b)'' and insert ``(d)''.
       On page 246, line 11, strike ``(c)'' and insert ``(e)''.
       On page 247, line 11, strike ``(d)'' and insert ``(f)''.
       On page 247, line 19, strike ``(e)'' and insert ``(g)''.
                                 ______

  SA 3599. Mr. FEINGOLD (for himself and Mr. Sanders) submitted an
amendment intended to be proposed by him to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       At the appropriate place in title XI, insert the following:

     SEC. 11___. OFFICE OF SMALL FARMS AND BEGINNING FARMERS AND
                   RANCHERS.

       (a) In General.--Subtitle B of title II of the Department
     of Agriculture Reorganization Act of 1994 (as amended by
     section 11059(a)) is amended by inserting after section 226B
     the following:

     ``SEC. 226C. OFFICE OF SMALL FARMS AND BEGINNING FARMERS AND
                   RANCHERS.

       ``(a) Establishment.--Not less than 180 days after the date
     of enactment of this section, the Secretary shall establish
     and maintain within the executive operations of the
     Department an office, to be known as the `Office of Small
     Farms and Beginning Farmers and Ranchers' (referred to in
     this section as the `Office').
       ``(b) Purposes.--The purposes of the Office are--
       ``(1) to ensure coordination across all agencies of the
     Department--
       ``(A) to improve use of the programs and services of the
     Department; and
       ``(B) to enhance the viability of small, beginning, and
     socially disadvantaged farmers and ranchers and others, as
     the Secretary determines to be necessary;
       ``(2) to ensure small, beginning, and socially
     disadvantaged farmers and ranchers access to, and equitable
     participation in, commodity, credit, risk management and
     disaster protection, conservation, marketing, nutrition,
     value-added, rural development, and other programs and
     services of the Department;
       ``(3) to ensure that the number and economic contributions
     of small, limited-resource, beginning, and socially
     disadvantaged farmers and ranchers are accurately reflected
     in the Census of Agriculture and in other reports; and
       ``(4) to assess and enhance the effectiveness of outreach
     and programs of the Department--
       ``(A) to reduce barriers to program participation;
       ``(B) to improve service provided through programs of the
     Department to small, beginning, and socially disadvantaged
     farmers and ranchers; and
       ``(C) by suggesting to the Secretary new initiatives and
     programs to better serve the needs of small, socially
     disadvantaged, and beginning farmers and ranchers.
       ``(c) Director.--
       ``(1) In general.--The Office shall be headed by a
     Director.
       ``(2) Assumption of duties.--Effective on the date of
     establishment of the Office under subsection (a), the
     Director shall assume the duties and personnel of the
     Director of Small Farms Coordination, as in existence on the
     day before the date of enactment of this section.
       ``(d) Duties.--The Office shall--
       ``(1) in collaboration with such other agencies and offices
     of the Department as the Secretary determines to be
     necessary, develop and implement a plan to coordinate the
     activities established under Departmental Regulation 9700-1
     (August 3, 2006), including activities of the Small and
     Beginning Farmers and Ranchers Council and services provided
     by the Department to small farms and beginning farmers and
     ranchers;
       ``(2) coordinate with the Office of Outreach to provide
     consultation, training, and liaison activities with eligible
     entities (as defined in section 2501(e) of the Food,
     Agriculture, Conservation, and Trade Act of 1990 7 U.S.C.
     2279(e));
       ``(3) cooperate with, and monitor, agencies and offices of
     the Department to ensure that the Department is meeting the
     needs of small farms and of beginning farmers and ranchers;
       ``(4) establish cross-cutting and strategic departmental
     goals and objectives for small farms and beginning farmers
     and ranchers and for each associated program;
       ``(5) provide input to agencies and offices of the
     Department on program and policy decisions to ensure that the
     interests of small farms and of beginning farmers and
     ranchers are represented;
       ``(6) measure outcomes of all small farm programs and
     beginning farmer and rancher programs and track progress made
     in achieving the goals of the programs;
       ``(7) supervise data collection by agencies and offices of
     the Department regarding characteristics of small farms and
     beginning farmers and ranchers to ensure that the goals and
     objectives, and measures carried out to achieve those goals
     and objectives, can be measured and evaluated; and
       ``(8) carry out any other related duties that the Secretary
     determines to be appropriate.
       ``(e) Outreach.--The Office shall establish and maintain an
     Internet website--
       ``(1) to share information with interested producers; and
       ``(2) to collect and respond to comments from small and
     beginning farmers and ranchers, including comments of the
     Small and Beginning Farmers and Ranchers Council.
       ``(f) Resources.--Using funds made available to the
     Secretary in appropriations Acts, the Secretary shall provide
     to the Office such human and capital resources as are
     sufficient to allow the Office to carry out the duties of the
     Office under this section in a timely and efficient manner.
       ``(g) Annual Report.--The Secretary shall submit to the
     Committee on Agriculture of the House of Representatives and
     the Committee on Agriculture, Nutrition, and Forestry of the
     Senate annual reports that describe actions taken by the
     Office during the preceding calendar year to advance the
     interests of small farms and beginning farmers and
     ranchers.''.
       (b) Conforming Amendment.--Section 296(b) of the Department
     of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b))
     is amended--
       (1) in paragraph (6) (as added by section 7401(c)(1)), by
     striking ``or'' at the end;
       (2) in paragraph (7) (as added by section 11059(b)), by
     striking the period at the end and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(8) the authority of the Secretary to establish in the
     Department the Office of Small Farms and Beginning Farmers
     and Ranchers in accordance with section 226C.''.
                                 ______

  SA 3600. Mr. ALLARD submitted an amendment intended to be proposed by
him to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

       On page 1362, between lines 19 and 20, insert the
     following:

     SEC. 110___. USDA PROGRAM GOALS.

       (a) In General.--Not later than 120 days after the date of
     enactment of this Act, the Secretary shall submit to Congress
     a report that describes--
       (1) each program of the Department of Agriculture that has
     received a Program Assessment Rating Tool (referred to in
     this section as ``PART'') score of ``results not
     demonstrated''; and
       (2) for each such program, the steps being taken by the
     Secretary to develop acceptable and quantifiable performance
     goals to determine whether the program is performing as
     Congress intended.
       (b) Annual Budget.--
       (1) In general.--The Secretary shall include in the annual
     submission to Congress of the budget for the Department of
     Agriculture a report that identifies each program within the
     Department of Agriculture that has, as of the date of the
     report, a PART score of ``results not demonstrated'' or
     ``ineffective''.
       (2) Funding.--If a program of the Department of Agriculture
     receives a PART score described in paragraph (1) for 2 or
     more consecutive years, the amount made available to the
     Secretary to carry out the program for each subsequent fiscal
     year shall be not more than the amount made available to
     carry out the program for the preceding fiscal year until
     such time as the program receives a PART score of at least
     ``adequate''.
       (c) Reduction of Debt.--For each fiscal year for which a
     program of the Department

[[Page S14304]]

     of Agriculture receives funding as described in subsection
     (b)(2), an amount equal to the amount of funding withheld
     from the Department of Agriculture for that program shall be
     deposited in the account established under section 3113(d) of
     title 31, United States Code, for use in reducing the Federal
     debt.
                                 ______

  SA 3601. Ms. MURKOWSKI submitted an amendment intended to be proposed
by her to the bill S. 901, to amend the Public Health Service Act to
provide additional authorizations of appropriations for the health
centers program under section 330 of such Act; which was referred to
the Committee on Health, Education, Labor, and Pensions; as follows:

       At the appropriate place in section 2, insert the
     following:

     SEC. __. GRANTS TO EXPAND MEDICAL RESIDENCY TRAINING PROGRAMS
                   AND INCREASE PROVIDER RETENTION RATES IN RURAL
                   AND UNDERSERVED AREAS.

       Title III of the Public Health Service Act (42 U.S.C. 241
     et seq.) is amended by inserting after section 340G the
     following:

    ``Subpart XI--Medical Residency Training Programs and Provider
                               Retention

     ``SEC. 340H. GRANTS TO EXPAND MEDICAL RESIDENCY TRAINING
                   PROGRAMS AND INCREASE PROVIDER RETENTION RATES
                   IN RURAL AND UNDERSERVED AREAS.

       ``(a) Program Authorized.--The Secretary may make grants to
     community health centers--
       ``(1) to establish, at the centers, new or alternative-
     campus accredited medical residency training programs
     affiliated with a hospital or other health care facility; or
       ``(2) to fund new residency positions within existing
     accredited medical residency training programs at the centers
     and their affiliated partners.
       ``(b) Use of Funds.--Amounts from a grant under this
     section shall be used to cover the costs of establishing or
     expanding a medical residency training program described in
     subsection (a), including costs associated with--
       ``(1) curriculum development;
       ``(2) equipment acquisition;
       ``(3) recruitment, training, and retention of residents and
     faculty; and
       ``(4) residency stipends.
       ``(c) Applications.--A community health center seeking 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.
       ``(d) Preference.--In selecting recipients for a grant
     under this section, the Secretary shall give preference to
     funding medical residency training programs focusing on
     primary health care.
       ``(e) Definitions.--In this section:
       ``(1) The term `accredited', as applied to a new or
     alternative-campus medical residency training program, means
     a program that is accredited by a recognized body or bodies
     approved for such purpose by the Accreditation Council for
     Graduate Medical Education, except that a new medical
     residency training program that, by reason of an insufficient
     period of operation, is not eligible for accreditation on or
     before the date of submission of an application under
     subsection (c) shall be deemed accredited if the
     Accreditation Council for Graduate Medical Education finds,
     after consultation with the appropriate accreditation body or
     bodies, that there is substantial assurance that the program
     will meet the accreditation standards of such body or bodies
     prior to the date of graduation of the first entering class
     in that program.
       ``(2) The term `community health center' means a health
     center as defined in section 330.''.
                                 ______

  SA 3602. Mr. DORGAN (for himself, Mr. Enzi, Mr. Conrad, Ms. Cantwell,
Mr. Johnson, Mr. Tester, Mr. Barrasso, and Mr. Wyden) submitted an
amendment intended to be proposed by him to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       At the end of subtitle D of title X, add the following:

     SEC. 103__. DISAPPROVAL OF RULE.

       Congress disapproves the rule submitted by the Secretary
     relating to bovine spongiform encephalopathy, minimal-risk
     regions, and importation of live bovines and products derived
     from bovines (72 Fed. Reg. 53314 (2007)), and such rule shall
     have no force or effect.
                                 ______

  SA 3603. Mrs. BOXER (for herself and Mrs. Feinstein) submitted an
amendment intended to be proposed by her to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       On page 392, strike line 25 and insert the following:

     as determined by the Secretary.
       ``(i) Air Quality Improvement.--
       ``(1) In general.--Under the environmental quality section
     of the program established under this chapter, the Secretary
     shall promote air quality by providing cost-share payments
     and incentive payments to individual producers for use in
     addressing air quality concerns associated with agriculture.
       ``(2) Eligible practices, cost-share.--
       ``(A) Reduction of emissions of air pollutants and
     precursors of air pollutants.--In addition to practices
     eligible for cost-share payments under the environmental
     quality section of the program established under this
     chapter, the Secretary shall provide cost-share payments to
     producers under this section for mobile or stationary
     equipment (including engines) used in an agricultural
     operation that would reduce emissions and precursors of air
     pollutants.
       ``(B) Considerations.--In evaluating applications for cost-
     share assistance for equipment described in subparagraph (A),
     the Secretary shall prioritize assistance for equipment
     that--
       ``(i) is the most cost-effective in addressing air quality
     concerns; and
       ``(ii) would assist producers in meeting Federal, State, or
     local regulatory requirements relating to air quality.
       ``(3) Locations.--To receive a payment for a project under
     this subsection, a producer shall carry out the project in a
     county--
       ``(A) that is in nonattainment with respect to ambient air
     quality standards;
       ``(B) in which there is air quality degradation, recognized
     by a State or local agency, to which agricultural emissions
     significantly contribute; or
       ``(C) in which the Secretary determines that pesticide
     drift is a priority concern.
       ``(4) Priority.--The Secretary shall give priority to
     projects that--
       ``(A) involve multiple producers implementing eligible
     conservation activities in a coordinated manner to promote
     air quality; or
       ``(B) are designed to encourage broad adoption of
     innovative approaches, including approaches involving the use
     of innovative technologies and integrated pest management, on
     the condition that the technologies do not have the
     unintended consequence of compromising other environmental
     goals.''.
                                 ______

  SA 3604. Mr. KERRY (for himself, Ms. Snowe, Ms. Landrieu, and Mr.
Vitter) submitted an amendment intended to be proposed to amendment SA
3500 proposed by Mr. Harkin (for himself, Mr. Chambliss, Mr. Baucus,
and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       On page 1362, between lines 19 and 20, insert the
     following:

                   Subtitle C--Disaster Loan Program

     SEC. 11101. SHORT TITLE.

       This subtitle may be cited as the ``Small Business Disaster
     Response and Loan Improvements Act of 2007''.

     SEC. 11102. DEFINITIONS.

       In this subtitle--
       (1) the terms ``Administration'' and ``Administrator'' mean
     the Small Business Administration and the Administrator
     thereof, respectively;
       (2) the term ``catastrophic national disaster'' means a
     catastrophic national disaster declared under section
     7(b)(11) of the Small Business Act (15 U.S.C. 636(b)), as
     added by this Act;
       (3) the term ``declared disaster'' means a major disaster
     or a catastrophic national disaster;
       (4) the term ``disaster area'' means an area affected by a
     natural or other disaster, as determined for purposes of
     paragraph (1) or (2) of section 7(b) of the Small Business
     Act (15 U.S.C. 636(b)), during the period of such
     declaration;
       (5) the term ``disaster loan program of the
     Administration'' means assistance under section 7(b) of the
     Small Business Act (15 U.S.C. 636(b));
       (6) the term ``disaster update period'' means the period
     beginning on the date on which the President declares a major
     disaster or a catastrophic national disaster and ending on
     the date on which such declaration terminates;
       (7) the term ``major disaster'' has the meaning given that
     term in section 102 of the Robert T. Stafford Disaster Relief
     and Emergency Assistance Act (42 U.S.C. 5122);
       (8) the term ``small business concern'' has the same
     meaning as in section 3 of the Small Business Act (15 U.S.C.
     632); and
       (9) the term ``State'' means any State of the United
     States, the District of Columbia, the Commonwealth of Puerto
     Rico, the Northern Mariana Islands, the Virgin Islands, Guam,
     American Samoa, and any territory or possession of the United
     States.

                 PART I--DISASTER PLANNING AND RESPONSE

     SEC. 11121. DISASTER LOANS TO NONPROFITS.

       Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
     is amended by inserting immediately after paragraph (3) the
     following:
       ``(4) Loans to nonprofits.--In addition to any other loan
     authorized by this subsection, the Administrator 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) as the Administrator
     determines appropriate to a nonprofit organization located or
     operating in an area affected by a natural or other disaster,
     as determined

[[Page S14305]]

     under paragraph (1) or (2), or providing services to persons
     who have evacuated from any such area.''.

     SEC. 11122. DISASTER LOAN AMOUNTS.

       (a) Increased Loan Caps.--Section 7(b) of the Small
     Business Act (15 U.S.C. 636(b)) is amended by inserting
     immediately after paragraph (4), as added by this Act, the
     following:
       ``(5) Increased loan caps.--
       ``(A) Aggregate loan amounts.--Except as provided in
     subparagraph (B), and notwithstanding any other provision of
     law, the aggregate loan amount outstanding and committed to a
     borrower under this subsection may not exceed $2,000,000.
       ``(B) Waiver authority.--The Administrator may, at the
     discretion of the Administrator, increase the aggregate loan
     amount under subparagraph (A) for loans relating to a
     disaster to a level established by the Administrator, based
     on appropriate economic indicators for the region in which
     that disaster occurred.''.
       (b) Disaster Mitigation.--
       (1) In general.--Section 7(b)(1)(A) of the Small Business
     Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ``of the
     aggregate costs of such damage or destruction (whether or not
     compensated for by insurance or otherwise)'' after ``20 per
     centum''.
       (2) Effective date.--The amendment made by paragraph (1)
     shall apply with respect to a loan or guarantee made after
     the date of enactment of this Act.
       (c) Technical Amendments.--Section 7(b) of the Small
     Business Act (15 U.S.C. 636(b)) is amended--
       (1) in the matter preceding paragraph (1), by striking
     ``the, Administration'' and inserting ``the Administration'';
       (2) in paragraph (2)(A), by striking ``Disaster Relief and
     Emergency Assistance Act'' and inserting ``Robert T. Stafford
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121
     et seq.) (in this subsection referred to as a `major
     disaster')''; and
       (3) in the undesignated matter at the end--
       (A) by striking ``, (2), and (4)'' and inserting ``and
     (2)''; and
       (B) by striking ``, (2), or (4)'' and inserting ``(2)''.

     SEC. 11123. SMALL BUSINESS DEVELOPMENT CENTER PORTABILITY
                   GRANTS.

       Section 21(a)(4)(C)(viii) of the Small Business Act (15
     U.S.C. 648(a)(4)(C)(viii)) is amended--
       (1) in the first sentence, by striking ``as a result of a
     business or government facility down sizing or closing, which
     has resulted in the loss of jobs or small business
     instability'' and inserting ``due to events that have
     resulted or will result in, business or government facility
     downsizing or closing''; and
       (2) by adding at the end ``At the discretion of the
     Administrator, the Administrator may make an award greater
     than $100,000 to a recipient to accommodate extraordinary
     occurrences having a catastrophic impact on the small
     business concerns in a community.''.

     SEC. 11124. ASSISTANCE TO OUT-OF-STATE BUSINESSES.

       Section 21(b)(3) of the Small Business Act (15 U.S.C.
     648(b)(3)) is amended--
       (1) by striking ``At the discretion'' and inserting the
     following: ``Small business development centers.--
       ``(A) In general.--At the discretion''; and
       (2) by adding at the end the following:
       ``(B) During disasters.--
       ``(i) In general.--At the discretion of the Administrator,
     the Administrator may authorize a small business development
     center to provide such assistance to small business concerns
     located outside of the State, without regard to geographic
     proximity, if the small business concerns are located in a
     disaster area declared under section 7(b)(2)(A).
       ``(ii) Continuity of services.--A small business
     development center that provides counselors to an area
     described in clause (i) shall, to the maximum extent
     practicable, ensure continuity of services in any State in
     which such small business development center otherwise
     provides services.
       ``(iii) Access to disaster recovery facilities.--For
     purposes of providing disaster recovery assistance under this
     subparagraph, the Administrator shall, to the maximum extent
     practicable, permit small business development center
     personnel to use any site or facility designated by the
     Administrator for use to provide disaster recovery
     assistance.''.

     SEC. 11125. OUTREACH PROGRAMS.

       (a) In General.--Not later than 30 days after the date of
     the declaration of a disaster area, the Administrator may
     establish a contracting outreach and technical assistance
     program for small business concerns which have had a primary
     place of business in, or other significant presence in, such
     disaster area.
       (b) Administrator Action.--The Administrator may carry out
     subsection (a) by acting through--
       (1) the Administration;
       (2) the Federal agency small business officials designated
     under section 15(k)(1) of the Small Business Act (15 U.S.C.
     644(k)(1)); or
       (3) any Federal, State, or local government entity, higher
     education institution, procurement technical assistance
     center, or private nonprofit organization that the
     Administrator may determine appropriate, upon conclusion of a
     memorandum of understanding or assistance agreement, as
     appropriate, with the Administrator.

     SEC. 11126. SMALL BUSINESS BONDING THRESHOLD.

       (a) In General.--Except as provided in subsection (b), and
     notwithstanding any other provision of law, for any
     procurement related to a major disaster, the Administrator
     may, upon such terms and conditions as the Administrator may
     prescribe, guarantee and enter into commitments to guarantee
     any surety against loss resulting from a breach of the terms
     of a bid bond, payment bond, performance bond, or bonds
     ancillary thereto, by a principal on any total work order or
     contract amount at the time of bond execution that does not
     exceed $5,000,000.
       (b) Increase of Amount.--Upon request of the head of any
     Federal agency other than the Administration involved in
     reconstruction efforts in response to a major disaster, the
     Administrator may guarantee and enter into a commitment to
     guarantee any security against loss under subsection (a) on
     any total work order or contract amount at the time of bond
     execution that does not exceed $10,000,000.

     SEC. 11127. TERMINATION OF PROGRAM.

       Section 711(c) of the Small Business Competitive
     Demonstration Program Act of 1988 (15 U.S.C. 644 note) is
     amended by inserting after ``January 1, 1989'' the following:
     ``, and shall terminate on the date of enactment of the Small
     Business Disaster Response and Loan Improvements Act of
     2007''.

     SEC. 11128. INCREASING COLLATERAL REQUIREMENTS.

       Section 7(c)(6) of the Small Business Act (15 U.S.C.
     636(c)(6)) is amended by striking ``$10,000 or less'' and
     inserting ``$14,000 or less (or such higher amount as the
     Administrator determines appropriate in the event of a
     catastrophic national disaster declared under subsection
     (b)(11))''.

     SEC. 11129. PUBLIC AWARENESS OF DISASTER DECLARATION AND
                   APPLICATION PERIODS.

       (a) In General.--Section 7(b) of the Small Business Act (15
     U.S.C. 636(b)) is amended by inserting immediately after
     paragraph (5), as added by this Act, the following:
       ``(6) Coordination with fema.--
       ``(A) In general.--Notwithstanding any other provision of
     law, for any disaster (including a catastrophic national
     disaster) declared under this subsection or major disaster,
     the Administrator, in consultation with the Administrator of
     the Federal Emergency Management Agency, shall ensure, to the
     maximum extent practicable, that all application periods for
     disaster relief under this Act correspond with application
     deadlines established under the Robert T. Stafford Disaster
     Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.),
     or as extended by the President.
       ``(B) Deadlines.--Notwithstanding any other provision of
     law, not later than 10 days before the closing date of an
     application period for a major disaster (including a
     catastrophic national disaster), the Administrator, in
     consultation with the Administrator of the Federal Emergency
     Management Agency, 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
     that includes--
       ``(i) the deadline for submitting applications for
     assistance under this Act relating to that major disaster;
       ``(ii) information regarding the number of loan
     applications and disbursements processed by the Administrator
     relating to that major disaster for each day during the
     period beginning on the date on which that major disaster was
     declared and ending on the date of that report; and
       ``(iii) an estimate of the number of potential applicants
     that have not submitted an application relating to that major
     disaster.
       ``(7) Public awareness of disasters.--If a disaster
     (including a catastrophic national disaster) is declared
     under this subsection, the Administrator shall make every
     effort to communicate through radio, television, print, and
     web-based outlets, all relevant information needed by
     disaster loan applicants, including--
       ``(A) the date of such declaration;
       ``(B) cities and towns within the area of such declaration;
       ``(C) loan application deadlines related to such disaster;
       ``(D) all relevant contact information for victim services
     available through the Administration (including links to
     small business development center websites);
       ``(E) links to relevant Federal and State disaster
     assistance websites, including links to websites providing
     information regarding assistance available from the Federal
     Emergency Management Agency;
       ``(F) information on eligibility criteria for
     Administration loan programs, including where such
     applications can be found; and
       ``(G) application materials that clearly state the function
     of the Administration as the Federal source of disaster loans
     for homeowners and renters.''.
       (b) Marketing and Outreach.--Not later than 90 days after
     the date of enactment of this Act, the Administrator shall
     create a marketing and outreach plan that--
       (1) encourages a proactive approach to the disaster relief
     efforts of the Administration;
       (2) makes clear the services provided by the
     Administration, including contact information, application
     information, and timelines for submitting applications, the
     review of applications, and the disbursement of funds;
       (3) describes the different disaster loan programs of the
     Administration, including how they are made available and the
     eligibility requirements for each loan program;

[[Page S14306]]

       (4) provides for regional marketing, focusing on disasters
     occurring in each region before the date of enactment of this
     Act, and likely scenarios for disasters in each such region;
     and
       (5) ensures that the marketing plan is made available at
     small business development centers and on the website of the
     Administration.

     SEC. 11130. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS
                   AND STANDARD OPERATING PROCEDURES.

       (a) In General.--The Administrator shall, promptly
     following the date of enactment of this Act, conduct a study
     of whether the standard operating procedures of the
     Administration for loans offered under section 7(b) of the
     Small Business Act (15 U.S.C. 636(b)) are consistent with the
     regulations of the Administration for administering the
     disaster loan program.
       (b) Report.--Not later than 180 days after the date of
     enactment of this Act, the Administration shall submit to
     Congress a report containing all findings and recommendations
     of the study conducted under subsection (a).

     SEC. 11131. PROCESSING DISASTER LOANS.

       (a) Authority for Qualified Private Contractors To Process
     Disaster Loans.--Section 7(b) of the Small Business Act (15
     U.S.C. 636(b)) is amended by inserting immediately after
     paragraph (7), as added by this Act, the following:
       ``(8) Authority for qualified private contractors.--
       ``(A) Disaster loan processing.--The Administrator may
     enter into an agreement with a qualified private contractor,
     as determined by the Administrator, to process loans under
     this subsection in the event of a major disaster or a
     catastrophic national disaster declared under paragraph (11),
     under which the Administrator shall pay the contractor a fee
     for each loan processed.
       ``(B) Loan loss verification services.--The Administrator
     may enter into an agreement with a qualified lender or loss
     verification professional, as determined by the
     Administrator, to verify losses for loans under this
     subsection in the event of a major disaster or a catastrophic
     national disaster declared under paragraph (11), under which
     the Administrator shall pay the lender or verification
     professional a fee for each loan for which such lender or
     verification professional verifies losses.''.
       (b) Coordination of Efforts Between the Administrator and
     the Internal Revenue Service To Expedite Loan Processing.--
     The Administrator and the Commissioner of Internal Revenue
     shall, to the maximum extent practicable, ensure that all
     relevant and allowable tax records for loan approval are
     shared with loan processors in an expedited manner, upon
     request by the Administrator.

     SEC. 11132. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER
                   RESPONSE PLAN.

       (a) In General.--Not later than 3 months after the date of
     enactment of this Act, the Administrator shall--
       (1) by rule, amend the 2006 Atlantic hurricane season
     disaster response plan of the Administration (in this section
     referred to as the ``disaster response plan'') to apply to
     major disasters; and
       (2) submit a report to the Committee on Small Business and
     Entrepreneurship of the Senate and the Committee on Small
     Business of the House of Representatives detailing the
     amendments to the disaster response plan.
       (b) Contents.--The report required under subsection (a)(2)
     shall include--
       (1) any updates or modifications made to the disaster
     response plan since the report regarding the disaster
     response plan submitted to Congress on July 14, 2006;
       (2) a description of how the Administrator plans to utilize
     and integrate District Office personnel of the Administration
     in the response to a major disaster, including information on
     the utilization of personnel for loan processing and loan
     disbursement;
       (3) a description of the disaster scalability model of the
     Administration and on what basis or function the plan is
     scaled;
       (4) a description of how the agency-wide Disaster Oversight
     Council is structured, which offices comprise its membership,
     and whether the Associate Deputy Administrator for
     Entrepreneurial Development of the Administration is a
     member;
       (5) a description of how the Administrator plans to
     coordinate the disaster efforts of the Administration with
     State and local government officials, including
     recommendations on how to better incorporate State
     initiatives or programs, such as State-administered bridge
     loan programs, into the disaster response of the
     Administration;
       (6) recommendations, if any, on how the Administration can
     better coordinate its disaster response operations with the
     operations of other Federal, State, and local entities;
       (7) any surge plan for the disaster loan program of the
     Administration in effect on or after August 29, 2005
     (including surge plans for loss verification, loan
     processing, mailroom, customer service or call center
     operations, and a continuity of operations plan);
       (8) the number of full-time equivalent employees and job
     descriptions for the planning and disaster response staff of
     the Administration;
       (9) the in-service and preservice training procedures for
     disaster response staff of the Administration;
       (10) information on the logistical support plans of the
     Administration (including equipment and staffing needs, and
     detailed information on how such plans will be scalable
     depending on the size and scope of the major disaster;
       (11) a description of the findings and recommendations of
     the Administrator, if any, based on a review of the response
     of the Administration to Hurricane Katrina of 2005, Hurricane
     Rita of 2005, and Hurricane Wilma of 2005; and
       (12) a plan for how the Administrator, in consultation with
     the Administrator of the Federal Emergency Management Agency,
     will coordinate the provision of accommodations and necessary
     resources for disaster assistance personnel to effectively
     perform their responsibilities in the aftermath of a major
     disaster.
       (c) Exercises.--Not later than 6 months after the date of
     the submission of the report under subsection (a)(2), the
     Administrator shall develop and execute simulation exercises
     to demonstrate the effectiveness of the amended disaster
     response plan required under this section.

     SEC. 11133. DISASTER PLANNING RESPONSIBILITIES.

       (a) Assignment of Small Business Administration Disaster
     Planning Responsibilities.--The Administrator shall
     specifically assign the disaster planning responsibilities
     described in subsection (b) to an employee of the
     Administration who--
       (1) is not an employee of the Office of Disaster Assistance
     of the Administration;
       (2) shall report directly to the Administrator; and
       (3) has a background and expertise demonstrating
     significant experience in the area of disaster planning.
       (b) Responsibilities.--The responsibilities described in
     this subsection are--
       (1) creating and maintaining the comprehensive disaster
     response plan of the Administration;
       (2) ensuring in-service and pre-service training procedures
     for the disaster response staff of the Administration;
       (3) coordinating and directing Administration training
     exercises, including mock disaster responses, with other
     Federal agencies; and
       (4) other responsibilities, as determined by the
     Administrator.
       (c) Report.--Not later than 30 days after the date of
     enactment of this Act, 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 containing--
       (1) a description of the actions of the Administrator to
     assign an employee under subsection (a);
       (2) information detailing the background and expertise of
     the employee assigned under subsection (a); and
       (3) information on the status of the implementation of the
     responsibilities described in subsection (b).

     SEC. 11134. ADDITIONAL AUTHORITY FOR DISTRICT OFFICES OF THE
                   ADMINISTRATION.

       (a) In General.--Section 7(b) of the Small Business Act (15
     U.S.C. 636(b)) is amended by inserting immediately after
     paragraph (8), as added by this Act, the following:
       ``(9) Use of district offices.--In the event of a major
     disaster, the Administrator may authorize a district office
     of the Administration to process loans under paragraph (1) or
     (2).''.
       (b) Designation.--
       (1) In general.--The Administrator may designate an
     employee in each district office of the Administration to act
     as a disaster loan liaison between the disaster processing
     center and applicants under the disaster loan program of the
     Administration.
       (2) Responsibilities.--Each employee designated under
     paragraph (1) shall--
       (A) be responsible for coordinating and facilitating
     communications between applicants under the disaster loan
     program of the Administration and disaster loan processing
     staff regarding documentation and information required for
     completion of an application; and
       (B) provide information to applicants under the disaster
     loan program of the Administration regarding additional
     services and benefits that may be available to such
     applicants to assist with recovery.
       (3) Outreach.--In providing outreach to disaster victims
     following a declared disaster, the Administrator shall make
     disaster victims aware of--
       (A) any relevant employee designated under paragraph (1);
     and
       (B) how to contact that employee.

     SEC. 11135. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF DISASTER
                   ASSISTANCE AND DISASTER CADRE.

       (a) In General.--Section 7(b) of the Small Business Act (15
     U.S.C. 636(b)) is amended by inserting immediately after
     paragraph (9), as added by this Act, the following:
       ``(10) Disaster assistance employees.--
       ``(A) In general.--In carrying out this section, the
     Administrator may, where practicable, ensure that the number
     of full-time equivalent employees--
       ``(i) in the Office of the Disaster Assistance is not fewer
     than 800; and
       ``(ii) in the Disaster Cadre of the Administration is not
     fewer than 750.
       ``(B) Report.--In carrying out this subsection, if the
     number of full-time employees for either the Office of
     Disaster Assistance or the Disaster Cadre of the
     Administration is

[[Page S14307]]

     below the level described in subparagraph (A) for that
     office, not later than 21 days after the date on which that
     staffing level decreased below the level described in
     subparagraph (A), the Administrator shall submit to the
     Committee on Appropriations and the Committee on Small
     Business and Entrepreneurship of the Senate and the Committee
     on Appropriations and Committee on Small Business of the
     House of Representatives, a report--
       ``(i) detailing staffing levels on that date;
       ``(ii) requesting, if practicable and determined
     appropriate by the Administrator, additional funds for
     additional employees; and
       ``(iii) containing such additional information, as
     determined appropriate by the Administrator.''.

                       PART II--DISASTER LENDING

     SEC. 11141. CATASTROPHIC NATIONAL DISASTER DECLARATION.

       Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
     is amended by inserting immediately after paragraph (10), as
     added by this Act, the following:
       ``(11) Catastrophic national disasters.--
       ``(A) In general.--The President may make a catastrophic
     national disaster declaration in accordance with this
     paragraph.
       ``(B) Promulgation of rules.--
       ``(i) In general.--Not later than 6 months after the date
     of enactment of this paragraph, the Administrator, with the
     concurrence of the Secretary of Homeland Security and the
     Administrator of the Federal Emergency Management Agency,
     shall promulgate regulations establishing a threshold for a
     catastrophic national disaster declaration.
       ``(ii) Considerations.--In promulgating the regulations
     required under clause (i), the Administrator shall establish
     a threshold that--

       ``(I) is similar in size and scope to the events relating
     to the terrorist attacks of September 11, 2001, and Hurricane
     Katrina of 2005;
       ``(II) requires that the President declares a major
     disaster before making a catastrophic national disaster
     declaration under this paragraph;
       ``(III) requires consideration of--

       ``(aa) the dollar amount per capita of damage to the State,
     its political subdivisions, or a region;
       ``(bb) the number of small business concerns damaged,
     physically or economically, as a direct result of the event;
       ``(cc) the number of individuals and households displaced
     from their predisaster residences by the event;
       ``(dd) the severity of the impact on employment rates in
     the State, its political subdivisions, or a region;
       ``(ee) the anticipated length and difficulty of the
     recovery process;
       ``(ff) whether the events leading to the relevant major
     disaster declaration are of an unusually large and calamitous
     nature that is orders of magnitude larger than for an average
     major disaster; and
       ``(gg) any other factor determined relevant by the
     Administrator.
       ``(C) Authorization.--If the President makes a catastrophic
     national disaster declaration under this paragraph, the
     Administrator may make such loans under this paragraph
     (either directly or in cooperation with banks or other
     lending institutions through agreements to participate on an
     immediate or deferred basis) as the Administrator determines
     appropriate to small business concerns located anywhere in
     the United States that are economically adversely impacted as
     a result of that catastrophic national disaster.
       ``(D) Loan terms.--A loan under this paragraph shall be
     made on the same terms as a loan under paragraph (2).''.

     SEC. 11142. PRIVATE DISASTER LOANS.

       (a) In General.--Section 7 of the Small Business Act (15
     U.S.C. 636) is amended--
       (1) by redesignating subsections (c) and (d) as subsections
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Private Disaster Loans.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `disaster area' means any area for which the
     President declared a major disaster (as that term is defined
     in section 102 of the Robert T. Stafford Disaster Relief and
     Emergency Assistance Act (42 U.S.C. 5122)) that subsequently
     results in the President making a catastrophic national
     disaster declaration under subsection (b)(11);
       ``(B) the term `eligible small business concern' means a
     business concern that is--
       ``(i) a small business concern, as defined in this Act; or
       ``(ii) a small business concern, as defined in section 103
     of the Small Business Investment Act of 1958; and
       ``(C) the term `qualified private lender' means any
     privately-owned bank or other lending institution that the
     Administrator determines meets the criteria established under
     paragraph (9).
       ``(2) Authorization.--The Administrator may guarantee
     timely payment of principal and interest, as scheduled on any
     loan issued by a qualified private lender to an eligible
     small business concern located in a disaster area.
       ``(3) Use of loans.--A loan guaranteed by the Administrator
     under this subsection may be used for any purpose authorized
     under subsection (b).
       ``(4) Online applications.--
       ``(A) Establishment.--The Administrator may establish,
     directly or through an agreement with another entity, an
     online application process for loans guaranteed under this
     subsection.
       ``(B) Other federal assistance.--The Administrator may
     coordinate with the head of any other appropriate Federal
     agency so that any application submitted through an online
     application process established under this paragraph may be
     considered for any other Federal assistance program for
     disaster relief.
       ``(C) Consultation.--In establishing an online application
     process under this paragraph, the Administrator shall consult
     with appropriate persons from the public and private sectors,
     including private lenders.
       ``(5) Maximum amounts.--
       ``(A) Guarantee percentage.--The Administrator may
     guarantee not more than 85 percent of a loan under this
     subsection.
       ``(B) Loan amounts.--The maximum amount of a loan
     guaranteed under this subsection shall be $2,000,000.
       ``(6) Loan term.--The longest term of a loan for a loan
     guaranteed under this subsection shall be--
       ``(A) 15 years for any loan that is issued without
     collateral; and
       ``(B) 25 years for any loan that is issued with collateral.
       ``(7) Fees.--
       ``(A) In general.--The Administrator may not collect a
     guarantee fee under this subsection.
       ``(B) Origination fee.--The Administrator may pay a
     qualified private lender an origination fee for a loan
     guaranteed under this subsection in an amount agreed upon in
     advance between the qualified private lender and the
     Administrator.
       ``(8) Documentation.--A qualified private lender may use
     its own loan documentation for a loan guaranteed by the
     Administrator, to the extent authorized by the Administrator.
     The ability of a lender to use its own loan documentation for
     a loan guaranteed under this subsection shall not be
     considered part of the criteria for becoming a qualified
     private lender under the regulations promulgated under
     paragraph (9).
       ``(9) Implementation regulations.--
       ``(A) In general.--Not later than 1 year after the date of
     enactment of the Small Business Disaster Response and Loan
     Improvements Act of 2007, the Administrator shall issue final
     regulations establishing permanent criteria for qualified
     private lenders.
       ``(B) Report to congress.--Not later than 6 months after
     the date of enactment of the Small Business Disaster Response
     and Loan Improvements Act of 2007, the Administrator shall
     submit a report on the progress of the regulations required
     by subparagraph (A) to the Committee on Small Business and
     Entrepreneurship of the Senate and the Committee on Small
     Business of the House of Representatives.
       ``(10) Authorization of appropriations.--
       ``(A) In general.--Amounts necessary to carry out this
     subsection shall be made available from amounts appropriated
     to the Administration to carry out subsection (b).
       ``(B) Authority to reduce interest rates.--Funds
     appropriated to the Administration to carry out this
     subsection, may be used by the Administrator, to the extent
     available, to reduce the rate of interest for any loan
     guaranteed under this subsection by not more than 3
     percentage points.
       ``(11) Purchase of loans.--The Administrator may enter into
     an agreement with a qualified private lender to purchase any
     loan issued under this subsection.''.
       (b) Effective Date.--The amendments made by this section
     shall apply to disasters declared under section 7(b)(2) of
     the Small Business Act (631 U.S.C. 636(b)(2)) before, on, or
     after the date of enactment of this Act.

     SEC. 11143. TECHNICAL AND CONFORMING AMENDMENTS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) in section 4(c)--
       (A) in paragraph (1), by striking ``7(c)(2)'' and inserting
     ``7(d)(2)''; and
       (B) in paragraph (2)--
       (i) by striking ``7(c)(2)'' and inserting ``7(d)(2)''; and
       (ii) by striking ``7(e),''; and
       (2) in section 7(b), in the undesignated matter following
     paragraph (3)--
       (A) by striking ``That the provisions of paragraph (1) of
     subsection (c)'' and inserting ``That the provisions of
     paragraph (1) of subsection (d)''; and
       (B) by striking ``Notwithstanding the provisions of any
     other law the interest rate on the Administration's share of
     any loan made under subsection (b) except as provided in
     subsection (c),'' and inserting ``Notwithstanding any other
     provision of law, and except as provided in subsection (d),
     the interest rate on the Administration's share of any loan
     made under subsection (b)''.

     SEC. 11144. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``immediate disaster assistance'' means
     assistance provided during the period beginning on the date
     on which the President makes a catastrophic disaster
     declaration under paragraph (11) of section 7(b) of the Small
     Business Act (15 U.S.C. 636(b)), as added by this Act, and
     ending on the date that an impacted small business concern is
     able to secure funding through insurance claims, Federal
     assistance programs, or other sources; and
       (2) the term ``program'' means the expedited disaster
     assistance business loan program established under subsection
     (b).
       (b) Creation of Program.--The Administrator shall take such
     administrative action

[[Page S14308]]

     as is necessary to establish and implement an expedited
     disaster assistance business loan program to provide small
     business concerns with immediate disaster assistance under
     paragraph (11) of section 7(b) of the Small Business Act (15
     U.S.C. 636(b)), as added by this Act.
       (c) Consultation Required.--In establishing the program,
     the Administrator shall consult with--
       (1) appropriate personnel of the Administration (including
     District Office personnel of the Administration);
       (2) appropriate technical assistance providers (including
     small business development centers);
       (3) appropriate lenders and credit unions;
       (4) the Committee on Small Business and Entrepreneurship of
     the Senate; and
       (5) the Committee on Small Business of the House of
     Representatives.
       (d) Rules.--
       (1) In general.--Not later than 1 year after the date of
     enactment of this Act, the Administrator shall issue rules in
     final form establishing and implementing the program in
     accordance with this section. Such rules shall apply as
     provided for in this section, beginning 90 days after their
     issuance in final form.
       (2) Contents.--The rules promulgated under paragraph (1)
     shall--
       (A) identify whether appropriate uses of funds under the
     program may include--
       (i) paying employees;
       (ii) paying bills and other financial obligations;
       (iii) making repairs;
       (iv) purchasing inventory;
       (v) restarting or operating a small business concern in the
     community in which it was conducting operations prior to the
     declared disaster, or to a neighboring area, county, or
     parish in the disaster area; or
       (vi) covering additional costs until the small business
     concern is able to obtain funding through insurance claims,
     Federal assistance programs, or other sources; and
       (B) set the terms and conditions of any loan made under the
     program, subject to paragraph (3).
       (3) Terms and conditions.--A loan made by the
     Administration under this section--
       (A) shall be for not more than $150,000;
       (B) shall be a short-term loan, not to exceed 180 days,
     except that the Administrator may extend such term as the
     Administrator determines necessary or appropriate on a case-
     by-case basis;
       (C) shall have an interest rate not to exceed 1 percentage
     point above the prime rate of interest that a private lender
     may charge;
       (D) shall have no prepayment penalty;
       (E) may only be made to a borrower that meets the
     requirements for a loan under section 7(b) of the Small
     Business Act (15 U.S.C. 636(b));
       (F) may be refinanced as part of any subsequent disaster
     assistance provided under section 7(b) of the Small Business
     Act;
       (G) may receive expedited loss verification and loan
     processing, if the applicant is--
       (i) a major source of employment in the disaster area
     (which shall be determined in the same manner as under
     section 7(b)(3)(B) of the Small Business Act (15 U.S.C.
     636(b)(3)(B))); or
       (ii) vital to recovery efforts in the region (including
     providing debris removal services, manufactured housing, or
     building materials); and
       (H) shall be subject to such additional terms as the
     Administrator determines necessary or appropriate.
       (e) Report to Congress.--Not later than 5 months after the
     date of enactment of this Act, the Administrator shall report
     to the Committee on Small Business and Entrepreneurship of
     the Senate and the Committee on Small Business of the House
     of Representatives on the progress of the Administrator in
     establishing the program.
       (f) Authorization.--There are authorized to be appropriated
     to the Administrator such sums as are necessary to carry out
     this section.

     SEC. 11145. HUBZONES.

       (a) In General.--Section 3(p) of the Small Business Act (15
     U.S.C. 632(p)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (D), by striking ``or'';
       (B) in subparagraph (E), by striking the period at the end
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(F) areas in which the President has declared a major
     disaster (as that term is defined in section 102 of the
     Robert T. Stafford Disaster Relief and Emergency Assistance
     Act (42 U.S.C. 5122)) as a result of Hurricane Katrina of
     August 2005 or Hurricane Rita of September 2005, during the
     time period described in paragraph (8); or
       ``(G) catastrophic national disaster areas.'';
       (2) in paragraph (4), by adding at the end the following:
       ``(E) Catastrophic national disaster area.--
       ``(i) In general.--The term `catastrophic national disaster
     area' means an area--

       ``(I) affected by a catastrophic national disaster declared
     under section 7(b)(11), during the time period described in
     clause (ii); and
       ``(II) for which the Administrator determines that
     designation as a HUBZone would substantially contribute to
     the reconstruction and recovery effort in that area.

       ``(ii) Time period.--The time period for the purposes of
     clause (i)--

       ``(I) shall be the 2-year period beginning on the date that
     the applicable catastrophic national disaster was declared
     under section 7(b)(11); and
       ``(II) may, at the discretion of the Administrator, be
     extended to be the 3-year period beginning on the date
     described in subclause (I).''; and

       (3) by adding at the end the following:
       ``(8) Time period.--The time period for the purposes of
     paragraph (1)(F)--
       ``(A) shall be the 2-year period beginning on the later of
     the date of enactment of this paragraph and August 29, 2007;
     and
       ``(B) may, at the discretion of the Administrator, be
     extended to be the 3-year period beginning on the later of
     the date of enactment of this paragraph and August 29,
     2007.''.
       (b) Tolling of Graduation.--Section 7(j)(10)(C) of the
     Small Business Act (15 U.S.C. 636(j)(10)(C)) is amended by
     adding at the end the following:
       ``(iii)(I) For purposes of this subparagraph, if the
     Administrator designates an area as a HUBZone under section
     3(p)(4)(E)(i)(II), the Administrator shall not count the time
     period described in subclause (II) of this clause for any
     small business concern--
       ``(aa) that is participating in any program, activity, or
     contract under section 8(a); and
       ``(bb) the principal place of business of which is located
     in that area.
       ``(II) The time period for purposes of subclause (I)--
       ``(aa) shall be the 2-year period beginning on the date
     that the applicable catastrophic national disaster was
     declared under section 7(b)(11); and
       ``(bb) may, at the discretion of the Administrator, be
     extended to be the 3-year period beginning on the date
     described in item (aa).''.
       (c) Study of HUBZone Disaster Areas.--Not later than 1 year
     after the date of enactment of this Act, the Comptroller
     General of the United States shall submit a report to the
     Committee on Small Business and Entrepreneurship of the
     Senate and the Committee on Small Business of the House of
     Representatives evaluating the designation by the
     Administrator of catastrophic national disaster areas, as
     that term is defined in section 3(p)(4)(E) of the Small
     Business Act (as added by this Act), as HUBZones.

                PART III--DISASTER ASSISTANCE OVERSIGHT

     SEC. 11161. CONGRESSIONAL OVERSIGHT.

       (a) Monthly Accounting Report to Congress.--
       (1) Reporting requirements.--Not later than the fifth
     business day of each month during the applicable period for a
     major disaster, the Administrator shall provide to the
     Committee on Small Business and Entrepreneurship and the
     Committee on Appropriations of the Senate and to the
     Committee on Small Business and the Committee on
     Appropriations of the House of Representatives a report on
     the operation of the disaster loan program authorized under
     section 7 of the Small Business Act (15 U.S.C. 636) for that
     major disaster during the preceding month.
       (2) Contents.--Each report under paragraph (1) shall
     include--
       (A) the daily average lending volume, in number of loans
     and dollars, and the percent by which each category has
     increased or decreased since the previous report under
     paragraph (1);
       (B) the weekly average lending volume, in number of loans
     and dollars, and the percent by which each category has
     increased or decreased since the previous report under
     paragraph (1);
       (C) the amount of funding spent over the month for loans,
     both in appropriations and program level, and the percent by
     which each category has increased or decreased since the
     previous report under paragraph (1);
       (D) the amount of funding available for loans, both in
     appropriations and program level, and the percent by which
     each category has increased or decreased since the previous
     report under paragraph (1), noting the source of any
     additional funding;
       (E) an estimate of how long the available funding for such
     loans will last, based on the spending rate;
       (F) the amount of funding spent over the month for staff,
     along with the number of staff, and the percent by which each
     category has increased or decreased since the previous report
     under paragraph (1);
       (G) the amount of funding spent over the month for
     administrative costs, and the percent by which such spending
     has increased or decreased since the previous report under
     paragraph (1);
       (H) the amount of funding available for salaries and
     expenses combined, and the percent by which such funding has
     increased or decreased since the previous report under
     paragraph (1), noting the source of any additional funding;
     and
       (I) an estimate of how long the available funding for
     salaries and expenses will last, based on the spending rate.
       (b) Daily Disaster Updates to Congress for Presidentially
     Declared Disasters.--
       (1) In general.--Each day during a disaster update period,
     excluding Federal holidays and weekends, the Administration
     shall provide to the Committee on Small Business and
     Entrepreneurship of the Senate and to the Committee on Small
     Business of the House of Representatives a report on the
     operation of the disaster loan program of the Administration
     for the area in which the President declared a major
     disaster.
       (2) Contents.--Each report under paragraph (1) shall
     include--

[[Page S14309]]

       (A) the number of Administration staff performing loan
     processing, field inspection, and other duties for the
     declared disaster, and the allocations of such staff in the
     disaster field offices, disaster recovery centers, workshops,
     and other Administration offices nationwide;
       (B) the daily number of applications received from
     applicants in the relevant area, as well as a breakdown of
     such figures by State;
       (C) the daily number of applications pending application
     entry from applicants in the relevant area, as well as a
     breakdown of such figures by State;
       (D) the daily number of applications withdrawn by
     applicants in the relevant area, as well as a breakdown of
     such figures by State;
       (E) the daily number of applications summarily declined by
     the Administration from applicants in the relevant area, as
     well as a breakdown of such figures by State;
       (F) the daily number of applications declined by the
     Administration from applicants in the relevant area, as well
     as a breakdown of such figures by State;
       (G) the daily number of applications in process from
     applicants in the relevant area, as well as a breakdown of
     such figures by State;
       (H) the daily number of applications approved by the
     Administration from applicants in the relevant area, as well
     as a breakdown of such figures by State;
       (I) the daily dollar amount of applications approved by the
     Administration from applicants in the relevant area, as well
     as a breakdown of such figures by State;
       (J) the daily amount of loans dispersed, both partially and
     fully, by the Administration to applicants in the relevant
     area, as well as a breakdown of such figures by State;
       (K) the daily dollar amount of loans disbursed, both
     partially and fully, from the relevant area, as well as a
     breakdown of such figures by State;
       (L) the number of applications approved, including dollar
     amount approved, as well as applications partially and fully
     disbursed, including dollar amounts, since the last report
     under paragraph (1); and
       (M) the declaration date, physical damage closing date,
     economic injury closing date, and number of counties included
     in the declaration of a major disaster.
       (c) Notice of the Need for Supplemental Funds.--On the same
     date that the Administrator notifies any committee of the
     Senate or the House of Representatives that supplemental
     funding is necessary for the disaster loan program of the
     Administration in any fiscal year, the Administrator shall
     notify in writing the Committee on Small Business and
     Entrepreneurship of the Senate and the Committee on Small
     Business of the House of Representatives regarding the need
     for supplemental funds for that loan program.
       (d) Report on Contracting.--
       (1) In general.--Not later than 6 months after the date on
     which the President declares a major disaster, and every 6
     months thereafter until the date that is 18 months after the
     date on which the major disaster was declared, the
     Administrator shall submit a report to the Committee on Small
     Business and Entrepreneurship of the Senate and to the
     Committee on Small Business of the House of Representatives
     regarding Federal contracts awarded as a result of that major
     disaster.
       (2) Contents.--Each report submitted under paragraph (1)
     shall include--
       (A) the total number of contracts awarded as a result of
     that major disaster;
       (B) the total number of contracts awarded to small business
     concerns as a result of that major disaster;
       (C) the total number of contracts awarded to women and
     minority-owned businesses as a result of that major disaster;
     and
       (D) the total number of contracts awarded to local
     businesses as a result of that major disaster.
       (e) Report on Loan Approval Rate.--
       (1) In general.--Not later than 6 months after the date of
     enactment of this Act, the Administrator shall submit a
     report to the Committee on Small Business and
     Entrepreneurship of the Senate and the Committee on Small
     Business of the House of Representatives detailing how the
     Administration can improve the processing of applications
     under the disaster loan program of the Administration.
       (2) Contents.--The report submitted under paragraph (1)
     shall include--
       (A) recommendations, if any, regarding--
       (i) staffing levels during a major disaster;
       (ii) how to improve the process for processing, approving,
     and disbursing loans under the disaster loan program of the
     Administration, to ensure that the maximum assistance is
     provided to victims in a timely manner;
       (iii) the viability of using alternative methods for
     assessing the ability of an applicant to repay a loan,
     including the credit score of the applicant on the day before
     the date on which the disaster for which the applicant is
     seeking assistance was declared;
       (iv) methods, if any, for the Administration to expedite
     loss verification and loan processing of disaster loans
     during a major disaster for businesses affected by, and
     located in the area for which the President declared, the
     major disaster that are a major source of employment in the
     area or are vital to recovery efforts in the region
     (including providing debris removal services, manufactured
     housing, or building materials);
       (v) legislative changes, if any, needed to implement
     findings from the Accelerated Disaster Response Initiative of
     the Administration; and
       (vi) a description of how the Administration plans to
     integrate and coordinate the response to a major disaster
     with the technical assistance programs of the Administration;
     and
       (B) the plans of the Administrator for implementing any
     recommendation made under subparagraph (A).
                                 ______

  SA 3605. Mr. SMITH (for himself and Mr. Rockefeller) submitted an
amendment intended to be proposed by him to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       At the appropriate place, insert the following:

     SEC. 12___. CLASSIFICATION OF AUTOMATIC FIRE SPRINKLER
                   SYSTEMS.

       (a) Findings.--The Congress finds that--
       (1) the publication of the original study and comprehensive
     list of recommendations in America Burning, written in 1974,
     requesting advances in fire prevention through the
     installation of automatic sprinkler systems in existing
     buildings have yet to be fully implemented;
       (2) fire departments responded to approximately 1,600,000
     fires in 2005;
       (3) there were 3,675 non-terrorist related deaths in the
     United States and almost 17,925 civilian injuries resulting
     from fire in 2005;
       (4) 87 firefighters were killed in 2005;
       (5) fire caused $10,672,000,000 in direct property damage
     in 2005, and sprinklers are responsible for a 70 percent
     reduction in property damage from fires in public assembly,
     educational, residential, commercial, industrial and
     manufacturing buildings;
       (6) fire departments respond to a fire every 20 seconds, a
     fire breaks out in a structure every 61 seconds and in a
     residential structure every 79 seconds in the United States;
       (7) the Station Nightclub in West Warwick, Rhode Island,
     did not contain an automated sprinkler system and burned
     down, killing 99 people on February 20, 2003;
       (8) due to an automated sprinkler system, not a single
     person was injured from a fire beginning in the Fine Line
     Music Cafe in Minneapolis after the use of pyrotechnics on
     February 17, 2003;
       (9) the National Fire Protection Association has no record
     of a fire killing more than 2 people in a completely
     sprinklered public assembly, educational, institutional or
     residential building where the system was properly installed
     and fully operational;
       (10) sprinkler systems dramatically improve the chances of
     survival of those who cannot save themselves, specifically
     older adults, young children and people with disabilities;
       (11) the financial cost of upgrading fire counter measures
     in buildings built prior to fire safety codes is prohibitive
     for most property owners;
       (12) many State and local governments lack any requirements
     for older structures to contain automatic sprinkler systems;
       (13) under the present straight-line method of
     depreciation, there is a disincentive for building safety
     improvements due to an extremely low rate of return on
     investment; and
       (14) the Nation is in need of incentives for the voluntary
     installation and retrofitting of buildings with automated
     sprinkler systems to save the lives of countless individuals
     and responding firefighters as well as drastically reduce the
     costs from property damage.
       (b) In General.--Subparagraph (B) of section 168(e)(3)
     (relating to 5-year property), as amended by this Act, is
     amended by striking ``and'' at the end of clause (vi), by
     striking the period at the end of clause (vii) and inserting
     ``, and'', and by inserting after clause (vii) the following:
       ``(viii) any automatic fire sprinkler system placed in
     service after the date of the enactment of this clause in a
     building structure which was placed in service before such
     date of enactment.''.
       (c) Alternative System.--The table contained in section
     168(g)(3)(B) (relating to special rule for certain property
     assigned to classes), as amended by this Act, is amended by
     inserting after the item relating to subparagraph (B)(vii)
     the following:

``(B)(vii).........................................................7''.

       (d) Definition of Automatic Fire Sprinkler System.--
     Subsection (i) of section 168 is amended by adding at the end
     the following:
       ``(18) Automated fire sprinkler system.--The term
     `automated fire sprinkler system' means those sprinkler
     systems classified under one or more of the following
     publications of the National Fire Protection Association--
       ``(A) NFPA 13, Installation of Sprinkler Systems,
       ``(B) NFPA 13 D, Installation of Sprinkler Systems in One
     and Two Family Dwellings and Manufactured Homes, and
       ``(C) NFPA 13 R, Installation of Sprinkler Systems in
     Residential Occupancies up to and Including Four Stories in
     Height.''.
       (e) Effective Date.--The amendments made by this section
     shall apply to property placed in service after the date of
     the enactment of this Act.
                                 ______

  SA 3606. Mr. COBURN submitted an amendment intended to be proposed to

[[Page S14310]]

amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       On page 994, strike lines 7 through 17 and insert the
     following:

     SEC. 7312. NATIONAL ARBORETUM.

       The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is
     amended by adding at the end the following:

     ``SEC. 7. CONSTRUCTION OF A CHINESE GARDEN AT NATIONAL
                   ARBORETUM.

       ``(a) In General.--A Chinese Garden may be constructed at
     the National Arboretum established under this Act with--
       ``(1) funds accepted under section 5; and
       ``(2) authorities provided to the Secretary of Agriculture
     under section 6.
       ``(b) Report.--Each year the Secretary of Agriculture shall
     submit to Congress, and post on the public website of the
     National Arboretum, an itemized budget that shall describe,
     for the preceding year--
       ``(1) the total costs of the National Arboretum;
       ``(2) the costs of--
       ``(A) operation and maintenance;
       ``(B) horticulture and grounds;
       ``(C) visitor services; and
       ``(D) supplies and materials;
       ``(3) indirect costs of the Agricultural Research Service
     relating to the National Arboretum; and
       ``(4) the total number of visitors to the National
     Arboretum.
       ``(c) Limitation.--No Federal funds shall be used for the
     construction of the Chinese Garden authorized under
     subsection (a).''.
                                 ______

  SA 3607. Mr. MENENDEZ submitted an amendment intended to be proposed
to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       On page 1362, between lines 19 and 20, insert the
     following:

     SEC. 110__. STUDY OF IMPACTS OF LOCAL FOOD SYSTEMS AND
                   COMMERCE.

       (a) Study.--The Secretary shall conduct a study on the
     impacts of local food systems and commerce that shall, at a
     minimum--
       (1) develop a working definition of local food systems and
     commerce; and
       (2) identify indicators, and include an assessment of--
       (A) the market share of local food systems and commerce
     throughout the United States and by region;
       (B) the potential community, economic, health and
     nutrition, environmental, food safety, and food security
     impacts of advancing local food systems and commerce;
       (C) the potential energy, transportation, water resource,
     and climate change impacts of local food systems and
     commerce;
       (D) the structure of agricultural considerations and
     impacts throughout the United States and by region;
       (E) the interest of agricultural producers in diversifying
     to access local markets and the barriers and opportunities
     confronted by agricultural producers in the process of
     diversification;
       (F) the current availability and present and future need of
     independent processing plants that cater to local food
     commerce, including difficulty in meeting regulatory
     requirements;
       (G) the key gaps in food processing, distribution,
     marketing, and economic development, including regional
     differences in infrastructure gaps and other barriers;
       (H) the role of public and private institutions and
     institutional and governmental buying systems and procurement
     policies in purchasing products through local food systems;
       (I) the benefits and challenges for children and families
     in the most vulnerable rural and urban sectors of the United
     States; and
       (J) the challenges that prevent local foods from comprising
     a larger share of the per capita food consumption in the
     United States, and existing and potential strategies,
     policies, and programs to address those challenges.
       (b) Collaboration.--
       (1) In general.--The Secretary shall appoint a
     collaborative study team to oversee and conduct the research
     necessary to conduct the study described in subsection (a)
     and the case studies described in subsection (c).
       (2) Membership.--The study team shall include
     representatives of--
       (A) the Economic Research Service, Agricultural Marketing
     Service, and other appropriate agencies of the Department of
     Agriculture or other Federal agencies;
       (B) the Environmental Protection Agency;
       (C) institutions of higher education, including at least 1
     institution of higher education representative from each of
     the regions studied;
       (D) small farmers;
       (E) nongovernmental organizations with appropriate
     expertise; and
       (F) State and local governments.
       (c) Case Studies.--
       (1) In general.--The study team appointed by the Secretary
     under subsection (b) shall carry out case studies in
     representative production and marketing regions in the United
     States to address the issues being studied under subsection
     (a).
       (2) Requirements.--In carrying out case studies, the study
     team shall--
       (A) identify opportunities for primary research; and
       (B) to the maximum extent practicable, use existing
     surveys, data, and research.
       (3) Components.--Each case study shall--
       (A) identify and, to the maximum extent practicable,
     evaluate the success of relevant Federal, State, and local
     policies that are intended to induce local food purchasing
     and commerce;
       (B) examine the agricultural structure in each region to
     account for the impact of farm size and type of production on
     local economies and barriers to accessing local markets;
       (C) determine regional market trends and the share of the
     market supplied by current agricultural producers in the
     region; and
       (D) assess the potential for local food system value chains
     and supply networks and map the supply chain factors in each
     region involved in agricultural production, processing, and
     distribution of locally grown produce, meat, dairy, and other
     products.
       (d) Reports.--Not later than 2 years after the date of
     enactment of this Act, and thereafter as the Secretary
     considers appropriate, the Secretary shall submit to the
     Committee on Agriculture of the House of Representatives and
     the Committee on Agriculture, Nutrition, and Forestry of the
     Senate a report that--
       (1) describes the results of the study conducted under
     subsection (a) and the case studies under subsection (c); and
       (2) includes such recommendations for legislative action as
     the Secretary considers appropriate.
                                 ______

  SA 3608. Mr. MENENDEZ (for himself, Mr. Reed, Mr. Cardin, Mr.
Kennedy, Mr. Kerry, Mr. Dodd, Mr. Lieberman, Mr. Whitehouse, Mr.
Lautenberg, and Mr. Schumer) submitted an amendment intended to be
proposed to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       Beginning on page 774, strike line 10 and all that follows
     through page 776, line 19, and insert the following:
       (a) Rural Area.--
       (1) Definition.--Section 343(a)(13) of the Consolidated
     Farm and Rural Development Act (7 U.S.C. 1991(a)(13)) is
     amended by striking subparagraph (A) and inserting the
     following:
       ``(A) In general.--The terms `rural' and `rural area'
     mean--
       ``(i) any area other than a city or town that has a
     population of greater than 50,000 inhabitants, except that,
     for all activities under programs in the rural development
     mission area within the areas of the County of Honolulu,
     Hawaii, and the Commonwealth of Puerto Rico, the Secretary
     may designate any portion of the areas as a rural area or
     eligible rural community that the Secretary determines is not
     urban in character, other than any area included in the
     Honolulu Census Designated Place or the San Juan Census
     Designated Place; and
       ``(ii) any urbanized area contiguous and adjacent to such a
     city or town.''.
       (2) Report.--Not later than 60 days after the date of
     enactment of this Act, the Secretary shall prepare and submit
     to the Committee on Agriculture of the House of
     Representatives and the Committee on Agriculture, Nutrition,
     and Forestry of the Senate a report that--
       (A) assesses the various definitions of the term ``rural''
     that are used with respect to programs administered by the
     Secretary;
       (B) describes the effects that the variations in those
     definitions have on those programs; and
       (C) makes recommendations for ways to better target funds
     provided through rural development programs.
                                 ______

  SA 3609. Mr. CASEY (for himself and Mr. Cardin) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

       On page 272, between lines 2 and 3, insert the following:

     SEC. 19__. ENTERPRISE AND WHOLE FARM UNITS.

       Section 508(e) of Federal Crop Insurance Act (7 U.S.C.
     1508(e)) is amended by adding at the end the following:
       ``(6) Enterprise and whole farm units.--
       ``(A) In general.--The Corporation may carry out a pilot
     program under which the Corporation pays a portion of the
     premiums for plans or policies of insurance for which the
     insurable unit is defined on a whole farm

[[Page S14311]]

     or enterprise unit basis that is higher than would otherwise
     be paid in accordance with paragraph (2) for policyholders
     that convert from a plan or policy of insurance for which the
     insurable unit is defined on optional or basic unit basis.
       ``(B) Eligibility.--To be eligible to participate in a
     pilot program established under this paragraph, a
     policyholder shall--
       ``(i) have purchased additional coverage for the 2005 crop
     on an optional or basic unit basis for at least 90 percent of
     the acreage to be covered by enterprise or whole farm unit
     policy for the current crop; and
       ``(ii) purchase the enterprise or whole farm unit policy at
     not less than the highest coverage level that was purchased
     for the acreage for the 2005 crop.
       ``(C) Amount.--
       ``(i) In general.--The amount of the premium per acre paid
     by the Corporation to a policyholder for a policy with an
     enterprise and whole farm unit under this paragraph shall be,
     the maximum extent practicable, equal to the average dollar
     amount of subsidy per acre paid by the Corporation under
     paragraph (2) for a basic or optional unit.
       ``(ii) Limitation.--The amount of the premium paid by the
     Corporation under this paragraph may not exceed the total
     premium for the enterprise or whole farm unit policy.
       ``(D) Conversion of pilot to a permanent program.--Not
     earlier than 180 days after the date of enactment of this
     paragraph, the Corporation may convert the pilot program
     described in this paragraph to a permanent program if the
     Corporation has--
       ``(i) carried out the pilot program;
       ``(ii) analyzed the results of the pilot program; and
       ``(iii) submitted to Congress a report describing the
     results of the analysis.''.
                                 ______

  SA 3610. Mr. CASEY submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       Strike section 2371 and insert the following:

     SEC. 2371. FARM AND RANCHLAND PROTECTION PROGRAM.

       Subchapter B of chapter 2 of subtitle D of title XII of the
     Food Security Act of 1985 (16 U.S.C. 3838h et seq.) is
     amended to read as follows:

         ``Subchapter B--Farm and Ranchland Protection Program

     ``SEC. 1238H. DEFINITIONS.

       ``In this subchapter:
       ``(1) Eligible entity.--The term `eligible entity' means
     any of the following:
       ``(A) An agency of a State or local government or an Indian
     tribe (including a farmland protection board or land resource
     council established under State law).
       ``(B) An organization that is organized for, and at all
     times since the formation of the organization has been
     operated principally for, 1 or more of the conservation
     purposes specified in clause (i), (ii), (iii), or (iv) of
     section 170(h)(4)(A) of the Internal Revenue Code of 1986.
       ``(C) An organization described in section 501(c)(3) of the
     Internal Revenue Code of 1986 that is exempt from taxation
     under section 501(a) of that Code.
       ``(D) An organization described in section 509(a)(2) of the
     Internal Revenue Code of 1986.
       ``(E) An organization described in section 509(a)(3) of the
     Internal Revenue Code of 1986 that is controlled by an
     organization described in section 509(a)(2), of that Code.
       ``(2) Eligible land.--The term `eligible land' means land
     on a farm or ranch that--
       ``(A) is cropland;
       ``(B) is rangeland;
       ``(C) is grassland;
       ``(D) is pasture land;
       ``(E) is forest land that is an incidental part of an
     agricultural operation, as determined by the Secretary; or
       ``(F) contains historical or archaeological resources.
       ``(3) Indian tribe.--The term `Indian tribe' has the
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(4) Program.--The term `program' means the farm and
     ranchland protection program established under section
     1238I(a).
       ``(5) Secretary.--The term `Secretary' means the Secretary
     of Agriculture.

     ``SEC. 1238I. FARM AND RANCHLAND PROTECTION PROGRAM.

       ``(a) Establishment.--
       ``(1) Establishment and purpose.--The Secretary shall
     establish and carry out a farm and ranchland protection
     program under which the Secretary shall facilitate and
     provide funding for the purchase of conservation easements or
     other interests in eligible land that is subject to a pending
     offer from a certified State or eligible entity for the
     purpose of protecting the agricultural use and related
     conservation values of the land by limiting incompatible
     nonagricultural uses of the land.
       ``(2) Priority.--In carrying out the program, the Secretary
     shall give the highest priority--
       ``(A) to protecting farm and ranchland with prime, unique
     or other productive soils that are at risk of non-
     agricultural development; or
       ``(B) to projects that further a State or local policy
     consistent with the purposes of the program.
       ``(b) Grants to Certified States.--The Secretary shall make
     grants to States certified by the Secretary under subsection
     (c). Such grants shall be made based on demonstrated need for
     farm and ranch land protection. Grants may be made for
     multiple transactions so long as all funds provided under the
     program are used to purchase conservation easements or other
     interests in land in a timely and effective manner. A State
     receiving a grant under this subsection may use up to 10
     percent of the grant funds for reasonable costs of purchasing
     and enforcing conservation easements.
       ``(c) Certification of States for Grants.--
       ``(1) Certification process.--The Secretary shall implement
     a process, to be published in the Federal Register, for
     certifying States as eligible to participate in the program.
     The Secretary may provide a reasonable transitional period,
     not to extend past September 30, 2008, in order to allow
     continued operation of the program for such time as needed
     for the Secretary to implement the certification process.
       ``(2) Certification requirements.--To be certified under
     the process implemented under paragraph (1), a State shall
     demonstrate, at a minimum, the following:
       ``(A) A legislative or organizational purpose consistent
     with the purposes of the program.
       ``(B) The necessary authority and the resources and
     technical ability to monitor and enforce the terms of
     conservation easements or other interests in land or to
     require the holder of such easements or other interests in
     land acquired with the use of funding under the program to
     monitor and enforce the terms of such easements or other
     interests in land.
       ``(C) The capacity to provide the necessary matching funds
     from non-Federal sources for projects undertaken under the
     program and to use program funds in a timely and effective
     manner.
       ``(D) Policies and procedures to ensure that, on average,
     the purchase price of conservation easements or other
     interests in land purchased with program funds do not exceed
     the fair market value of the easements or other interests in
     land.
       ``(E) Policies and procedures that ensure that conservation
     easements or other interests in land purchased with program
     funds will continue to protect the agricultural use and
     related conservation values of the land.
       ``(F) Provision for continued stewardship of the
     conservation easements or other interest in land purchased
     with program funds in the event the State loses its
     certification under the program.
       ``(G) A determination of its own criteria and priorities
     for purchasing conservation easements and other interests in
     land under the program.
       ``(d) Agreements With Eligible Entities.--
       ``(1) Agreements authorized.--The Secretary may enter into
     an agreement with an eligible entity, under which the entity
     may purchase conservation easements using a combination of
     its own funds and funds distributed by the Secretary under
     the program.
       ``(2) Terms and conditions.--An agreement under this
     subsection shall stipulate the terms and conditions under
     which the eligible entity shall use funds provided by the
     Secretary under the program. The eligible entity shall be
     authorized to use its own terms and conditions for
     conservation easements and other purchases of interests in
     land, so long as--
       ``(A) such terms and conditions are consistent with the
     purposes of the program and permit effective enforcement of
     the conservation purposes of such easements or other
     interests;
       ``(B) the eligible entity has in place a requirement
     consistent with agricultural activities regarding the
     impervious surfaces to be allowed for any conservation
     easement or other interest in land purchased using grant
     funds provided under the program; and
       ``(C) the eligible entity requires use of a conservation
     plan for any highly erodible cropland for which a
     conservation easement or other interest in land has been
     purchased using grant funds provided under the program.
       ``(e) Federal Contingent Right of Enforcement.--The
     Secretary may require the inclusion of a Federal contingent
     right of enforcement or executory limitation in a
     conservation easement or other interest in land for
     conservation purposes purchased with Federal funds provided
     under the program, in order to preserve the easement as a
     party of last resort. The inclusion of such a right or
     interest shall not be considered to be the Federal
     acquisition of real property and the Federal standards and
     procedures for land acquisition shall not apply to the
     inclusion of the right or interest
       ``(f) Review; Revocation.--
       ``(1) Review.--Every 3 years, the Secretary shall review
     the certification of States under subsection (c) and the
     performance of eligible entities in meeting the terms and
     conditions of an agreement under subsection (d).
       ``(2) Revocation.--If, in the determination of the
     Secretary, a State no longer meets the qualifications
     described in subsection (c)(2) or an eligible entity is not
     meeting the terms and conditions of an agreement under
     subsection (d), the Secretary may--

[[Page S14312]]

       ``(A) revoke the certification of the State or terminate
     the agreement with the eligible entity; or
       ``(B) allow the State or eligible entity a specified period
     of time in which to take such actions as may be necessary to
     retain its certification or to meet the terms and conditions
     of the agreement, as the case may be.
       ``(g) Conservation Plan.--Any highly erodible cropland for
     which a conservation easement or other interest is purchased
     under this subchapter shall be subject to the requirements of
     a conservation plan. In the case of an easement or other
     interest in land that is perpetual in duration, the Secretary
     may not require the conversion of the cropland to less
     intensive uses if, under such plan, soil erosion can be
     reduced to `T' or below.
       ``(h) Cost Sharing.--The share of the cost provided under
     this section for purchasing a conservation easement or other
     interest in land shall not exceed 50 percent of the appraised
     fair market value of the conservation easement or other
     interest in eligible land. Fair market value shall be
     determined on the basis of an appraisal of the conservation
     easement or other interest in eligible land using an
     industry-approved methodology determined by the entity.''.
                                 ______

  SA 3611. Mr. FEINGOLD submitted an amendment intended to be proposed
to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       On page 182, between lines 16 and 17, insert the following:

     SEC. 1610. ADDITIONAL MANDATORY DAIRY REPORTING.

       Subsection (b) of section 273 of the Agricultural Marketing
     Act of 1946 (7 U.S.C. 1637b) (as redesignated by section
     1609(2)) is amended--
       (1) in paragraph (3)--
       (A) by striking ``shall take such actions'' and inserting
     ``shall--
       ``(A) take such actions'';
       (B) in subparagraph (A) (as designated by subparagraph
     (A)), by striking the period at the end and inserting ``;
     and''; and
       (C) by adding at the end the following:
       ``(B) include regular audits and comparisons with other
     related dairy market statistics collected by other Federal
     agencies or private entities on at least a monthly basis.'';
     and
       (2) in paragraph (4)(A)--
       (A) by striking ``subtitle to willfully fail'' and
     inserting ``subtitle--
       ``(i) to willfully fail'';
       (B) in clause (i) (as designated by subparagraph (A)), by
     striking the period at the end and inserting ``, including
     provision or reporting of erroneous prices (including prices
     for sales covered by fixed price contracts with terms of more
     than 30 days); and''; and
       (C) by adding at the end the following:
       ``(ii) to manipulate spot market prices or other markets to
     provide a false price signal to the market and influence
     prices reported under this subtitle.''.
       On page 1243, between lines 13 and 14, insert the
     following:

     SEC. 10309. COORDINATION OF DAIRY OVERSIGHT.

       (a) In General.--The Secretary shall select an official
     within the Department of Agriculture to coordinate the
     sharing of information on oversight of the dairy industry to
     ensure fair competition.
       (b) Duties.--The official selected under subsection (a)
     shall--
       (1) serve as a liaison among the Agricultural Marketing
     Service, Farm Service Agency, and National Agricultural
     Statistics Service;
       (2) coordinate with the Commodity Futures Trading
     Commission, the Department of Justice, and the Federal Trade
     Commission, as appropriate;
       (3) maintain informal communication among the Federal
     agencies specified in paragraphs (1) and (2) and other
     Federal agencies, as necessary;
       (4) hold at least 1 formal annual meeting during each
     calendar year; and
       (5) submit to the Committee on Agriculture of the House of
     Representatives and the Committee on Agriculture, Nutrition,
     and Forestry of the Senate, and make available to the public,
     an annual report that describes issues of concern in the
     dairy industry, including--
       (A) concentration among cooperatives or processors;
       (B) the farm-retail price spread (including flat pricing);
       (C) an examination of the competition implications of
     cooperative and processor joint ventures; and
       (D) statistics on volumes of dairy products traded on dairy
     markets and reported through mandatory price reporting
     relative to the overall market.
                                 ______

  SA 3612. Mr. BOND submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       On page 973, strike lines 21 through 24 and inset the
     following:
       (a) Funding.--
       (1) Mandatory funding.--
       (A) In general.--Section 401(b) of the Agricultural
     Research, Extension, and Education Reform Act of 1998 (7
     U.S.C. 7621(b)) is amended by striking paragraph (1) and
     inserting the following:
       ``(1) In general.--Not later than 30 days after the date of
     enactment of the Food and Energy Security Act of 2007, on
     October 1, 2008, and each October 1 thereafter through
     October 1, 2011, out of any funds in the Treasury not
     otherwise appropriated, the Secretary of the Treasury shall
     transfer to the Account the amount that the Secretary
     estimates will be made available for the applicable fiscal
     year as a result of the enactment of section 7201(a)(1)(B) of
     that Act.''.
       (B) Offset.--Notwithstanding title I or any amendment made
     by title I, a person or legal entity shall not be eligible
     for, and the Secretary shall not make to any person or legal
     entity, any individual payment under subtitles A through E of
     title I or an amendment made by those titles in an amount
     that is less than $25.
       (2) Discretionary funding.--Section 401(b) of the
     Agricultural Research, Extension, and Education Reform Act of
     1998 (7 U.S.C. 7621(b)) is amended by striking paragraph (3)
     and inserting the following:
                                 ______

  SA 3613. Mr. STEVENS submitted an amendment intended to be proposed
to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       On page 883, line 2, strike the closing quotation marks and
     the semicolon.
       On page 883, between lines 2 and 3, insert the following:
       ``(6) Online safety requirement for schools.--An elementary
     or secondary school may not receive assistance under
     paragraph (1)(E) for computers with Internet access unless
     the school, school board, local educational agency, or other
     authority with responsibility for administration of the
     school certifies to the Administrator that the school has an
     Internet safety policy that includes educating minors about
     age-appropriate online behavior, including interaction with
     other individuals on social net-working websites and in chat
     rooms, and cyber-bullying awareness and response.''.
       At the appropriate place, insert the following:

          TITLE     --PROTECTING CHILDREN IN THE 21ST CENTURY

     SEC. --001. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This title may be cited as the
     ``Protecting Children in the 21st Century Act''.
       (b) Table of Contents.--The table of contents for this
     title is as follows:

Sec. --001. Short title; table of contents.

            TITLE I--PROMOTING A SAFE INTERNET FOR CHILDREN

Sec. --101. Internet safety.
Sec. --102. Public awareness campaign.
Sec. --103. Annual reports.
Sec. --104. Authorization of appropriations.
Sec. --105. Online safety and technology working group.
Sec. --106. Promoting online safety in schools.
Sec. --107. Definitions.

           TITLE II--ENHANCING CHILD PORNOGRAPHY ENFORCEMENT

Sec. --201. Child pornography prevention; forfeitures related to child
              pornography violations.
Sec. --202. Additional child pornography amendments.

            TITLE I--PROMOTING A SAFE INTERNET FOR CHILDREN

     SEC. 101. INTERNET SAFETY.

       For the purposes of this subtitle, the issue of Internet
     safety includes issues regarding the use of the Internet in a
     manner that promotes safe online activity for children,
     protects children from cybercrimes, including crimes by
     online predators, and helps parents shield their children
     from material that is inappropriate for minors.

     SEC. 102. PUBLIC AWARENESS CAMPAIGN.

       The Federal Trade Commission shall carry out a nationwide
     program to increase public awareness and provide education
     regarding strategies to promote the safe use of the Internet
     by children. The program shall utilize existing resources and
     efforts of the Federal Government, State and local
     governments, nonprofit organizations, private technology and
     financial companies, Internet service providers, World Wide
     Web-based resources, and other appropriate entities, that
     includes--
       (1) identifying, promoting, and encouraging best practices
     for Internet safety;
       (2) establishing and carrying out a national outreach and
     education campaign regarding Internet safety utilizing
     various media and Internet-based resources;
       (3) facilitating access to, and the exchange of,
     information regarding Internet safety to promote up-to-date
     knowledge regarding current issues; and

[[Page S14313]]

       (4) facilitating access to Internet safety education and
     public awareness efforts the Commission considers appropriate
     by States, units of local government, schools, police
     departments, nonprofit organizations, and other appropriate
     entities.

     SEC. 103. ANNUAL REPORTS.

       The Commission shall submit a report to the Senate
     Committee on Commerce, Science, and Transportation not later
     than March 31 of each year that describes the activities
     carried out under section --102 by the Commission during the
     preceding calendar year.

     SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

       For carrying out the public awareness campaign under
     section --102, there are authorized to be appropriated to the
     Commission $5,000,000 for each of fiscal years 2008 and 2009.

     SEC. 105. ONLINE SAFETY AND TECHNOLOGY WORKING GROUP.

       (a) Establishment.--Within 90 days after the date of
     enactment of this Act, the Assistant Secretary of Commerce
     for Communications and Information shall establish an Online
     Safety and Technology working group comprised of
     representatives of relevant sectors of the business
     community, public interest groups, and other appropriate
     groups and Federal agencies to review and evaluate--
       (1) the status of industry efforts to promote online safety
     through educational efforts, parental control technology,
     blocking and filtering software, age-appropriate labels for
     content or other technologies or initiatives designed to
     promote a safe online environment for children;
       (2) the status of industry efforts to promote online safety
     among providers of electronic communications services and
     remote computing services by reporting apparent child
     pornography under section 227 of the Victims of Child Abuse
     Act of 1990 (42 U.S.C. 13032), including amendments made by
     this subtitle with respect to the content of such reports and
     any obstacles to such reporting;
       (3) the practices of electronic communications service
     providers and remote computing service providers related to
     record retention in connection with crimes against children;
     and
       (4) the development of technologies to help parents shield
     their children from inappropriate material on the Internet.
       (b) Report.--Within 1 year after the working group is first
     convened, it shall submit a report to the Assistant Secretary
     and the Senate Committee on Commerce, Science, and
     Transportation that--
       (1) describes in detail its findings, including any
     information related to the effectiveness of such strategies
     and technologies and any information about the prevalence
     within industry of educational campaigns, parental control
     technologies, blocking and filtering software, labeling, or
     other technologies to assist parents; and
       (2) includes recommendations as to what types of incentives
     could be used or developed to increase the effectiveness and
     implementation of such strategies and technologies.
       (c) FACA Not To Apply to Working Group.--The Federal
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the
     working group.

     SEC. 106. PROMOTING ONLINE SAFETY IN SCHOOLS.

       Section 254(h)(5)(B) of the Communications Act of 1934 (47
     U.S.C. 254(h)(5)(b)) is amended--
       (1) by striking ``and'' after the semicolon in clause (i);
       (2) by striking ``minors.'' in clause (ii) and inserting
     ``minors; and''; and
       (3) by adding at the end the following:
       ``(iii) as part of its Internet safety policy is educating
     minors about appropriate online behavior, including
     interacting with other individuals on social networking
     websites and in chat rooms and cyberbullying awareness and
     response.''.

     SEC. 107. DEFINITIONS.

       In this subtitle:
       (1) Commission.--The term ``Commission'' means the Federal
     Trade Commission.
       (2) Internet.--The term ``Internet'' means collectively the
     myriad of computer and telecommunications facilities,
     including equipment and operating software, which comprise
     the interconnected world-wide network of networks that employ
     the Transmission Control Protocol/Internet Protocol, or any
     predecessor successor protocols to such protocol, to
     communicate information of all kinds by wire or radio.

           TITLE II--ENHANCING CHILD PORNOGRAPHY ENFORCEMENT

     SEC. 201. CHILD PORNOGRAPHY PREVENTION; FORFEITURES RELATED
                   TO CHILD PORNOGRAPHY VIOLATIONS.

       (a) In General.--Section 503(b)(1) of the Communications
     Act of 1934 (47 U.S.C. 503(b)(1)) is amended--
       (1) by striking ``or'' after the semicolon in subparagraph
     (C);
       (2) by striking ``or 1464'' in subparagraph (D) and
     inserting ``1464, or 2252'';
       (3) by inserting ``or'' after the semicolon in subparagraph
     (D); and
       (4) by inserting after subparagraph (D) the following:
       ``(E) violated any provision of section 227 of the Victims
     of Child Abuse Act of 1990 (42 U.S.C. 13032);''.

     SEC. 202. ADDITIONAL CHILD PORNOGRAPHY AMENDMENTS.

       (a) Increase in Fine for Failure To Report.--Section
     227(b)(4) of the Crime Control Act of 1990 (42 U.S.C.
     13032(b)(4)) is amended--
       (1) by striking ``$50,000;'' in subparagraph (A) and
     inserting ``$150,000;''; and
       (2) by striking ``$100,000.'' in subparagraph (B) and
     inserting ``$300,000.''.
       (b) International Information Sharing.--Section 227 of the
     Victims of Child Abuse Act of 1990 (42 U.S.C. 13032) is
     amended--
       (1) by striking ``a law enforcement agency or'' in
     subsection (b)(1) and inserting ``appropriate Federal, State,
     or foreign law enforcement agencies'';
       (2) by inserting ``Federal, State, or foreign'' after
     ``designate the'' in subsection (b)(2);
       (3) by striking ``law.'' in subsection (b)(3) and inserting
     ``law, or appropriate officials of foreign law enforcement
     agencies designated by the Attorney General for the purpose
     of enforcing State or Federal laws of the United States.'';
       (4) by redesignating paragraphs (3) and (4) of subsection
     (b) as paragraphs (4) and (5), respectively, and inserting
     after paragraph (2) the following:
       ``(3) Contents of report.--To the extent this information
     is reasonably available to an electronic communication
     service provider or a remote computing service provider, each
     report under paragraph (1) shall include--
       ``(A) information relating to the Internet identity of any
     individual who appears to have violated any section of title
     18, United States Code, referenced in paragraph (1),
     including any relevant user ID or other online identifier,
     electronic mail addresses, website address, uniform resource
     locator, or other identifying information;
       ``(B) information relating to when any apparent child
     pornography was uploaded, transmitted, reported to, or
     discovered by the electronic communication service provider
     or a remote computing service provider, as the case may be,
     including a date and time stamp and time zone.
       ``(C) information relating to geographic location of the
     involved individual or reported content, including the
     hosting website, uniform resource locator, street address,
     zip code, area code, telephone number, or Internet Protocol
     address;
       ``(D) any image of any apparent child pornography relating
     to the incident, and any images commingled with images of
     apparent child pornography, such report is regarding; and
       ``(E) accurate contact information for the electronic
     communication service provider or remote computing service
     provider making the report, including the address, telephone
     number, facsimile number, electronic mail address of, and
     individual point of contact for such electronic communication
     service provider or remote computing service provider.'';
       (5) by inserting ``section 404 of the Missing Children's
     Assistance Act (42 U.S.C. 5773),'' after ``section,'' in
     subsection (g)(1); and
       (6) by adding at the end thereof the following:
       ``(h) Use of Information To Combat Child Pornography.--The
     National Center for Missing and Exploited Children is
     authorized to provide elements relating to any image1 or
     other relevant information reported to its Cyber Tip Line to
     an electronic communication service provider or a remote
     computing service provider for the sole and exclusive purpose
     of permitting that electronic communication service provider
     or remote computing service provider to stop the further
     transmission of images and develop anti-child pornography
     technologies and related industry best practices. Any
     electronic communication service provider or remote computing
     service provider that receives information from the National
     Center for Missing and Exploited Children under this
     subsection may use such information only for the purposes
     described in this subsection.''.
                                 ______

  SA 3614. Mr. DOMENICI (for himself and Mr. Thune) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

       At the end of title IX, add the following:

      Subtitle B--Biofuels for Energy Security and Transportation

     SEC. 9101. SHORT TITLE.

       This subtitle may be cited as the ``Biofuels for Energy
     Security and Transportation Act of 2007''.

     SEC. 9102. DEFINITIONS.

       In this subtitle:
       (1) Advanced biofuel.--
       (A) In general.--The term ``advanced biofuel'' means fuel
     derived from renewable biomass other than corn starch.
       (B) Inclusions.--The term ``advanced biofuel'' includes--
       (i) ethanol derived from cellulose, hemicellulose, or
     lignin;
       (ii) ethanol derived from sugar or starch, other than
     ethanol derived from corn starch;
       (iii) ethanol derived from waste material, including crop
     residue, other vegetative waste material, animal waste, and
     food waste and yard waste;
       (iv) diesel-equivalent fuel derived from renewable biomass,
     including vegetable oil and animal fat;

[[Page S14314]]

       (v) biogas (including landfill gas and sewage waste
     treatment gas) produced through the conversion of organic
     matter from renewable biomass;
       (vi) butanol or other alcohols produced through the
     conversion of organic matter from renewable biomass; and
       (vii) other fuel derived from cellulosic biomass.
       (2) Cellulosic biomass ethanol.--The term ``cellulosic
     biomass ethanol'' means ethanol derived from any cellulose,
     hemicellulose, or lignin that is derived from renewable
     biomass.
       (3) Conventional biofuel.--The term ``conventional
     biofuel'' means ethanol derived from corn starch.
       (4) Renewable biomass.--The term ``renewable biomass''
     means--
       (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
       (B) any organic matter that is available on a renewable or
     recurring basis from non-Federal land or from land belonging
     to an Indian tribe, or an Indian individual, that is held in
     trust by the United States or subject to a restriction
     against alienation imposed by the United States, including--
       (i) renewable plant material, including--

       (I) feed grains;
       (II) other agricultural commodities;
       (III) other plants and trees; and
       (IV) algae; and

       (ii) waste material, including--

       (I) crop residue;
       (II) other vegetative waste material (including wood waste
     and wood residues);
       (III) animal waste and byproducts (including fats, oils,
     greases, and manure); and
       (IV) food waste and yard waste.

       (5) Renewable fuel.--
       (A) In general.--The term ``renewable fuel'' means motor
     vehicle fuel or home heating fuel that is--
       (i) produced from renewable biomass; and
       (ii) used to replace or reduce the quantity of fossil fuel
     present in a fuel or fuel mixture used to operate a motor
     vehicle or furnace.
       (B) Inclusion.--The term ``renewable fuel'' includes--
       (i) conventional biofuel; and
       (ii) advanced biofuel.
       (6) Secretary.--The term ``Secretary'' means the Secretary
     of Energy
       (7) Small refinery.--The term ``small refinery'' means a
     refinery for which the average aggregate daily crude oil
     throughput for a calendar year (as determined by dividing the
     aggregate throughput for the calendar year by the number of
     days in the calendar year) does not exceed 75,000 barrels.

                    PART I--RENEWABLE FUEL STANDARD

     SEC. 9111. RENEWABLE FUEL STANDARD.

       (a) Renewable Fuel Program.--
       (1) Regulations.--
       (A) In general.--Not later than 1 year after the date of
     enactment of this Act, the President shall promulgate
     regulations to ensure that motor vehicle fuel and home
     heating oil sold or introduced into commerce in the United
     States (except in noncontiguous States or territories), on an
     annual average basis, contains the applicable volume of
     renewable fuel determined in accordance with paragraph (2).
       (B) Provisions of regulations.--Regardless of the date of
     promulgation, the regulations promulgated under subparagraph
     (A)--
       (i) shall contain compliance provisions applicable to
     refineries, blenders, distributors, and importers, as
     appropriate, to ensure that--

       (I) the requirements of this subsection are met; and
       (II) renewable fuels produced from facilities that commence
     operations after the date of enactment of this Act achieve at
     least a 20 percent reduction in life cycle greenhouse gas
     emissions compared to gasoline; but

       (ii) shall not--

       (I) restrict geographic areas in the contiguous United
     States in which renewable fuel may be used; or
       (II) impose any per-gallon obligation for the use of
     renewable fuel.

       (C) Relationship to other regulations.--Regulations
     promulgated under this paragraph shall, to the maximum extent
     practicable, incorporate the program structure, compliance,
     and reporting requirements established under the final
     regulations promulgated to implement the renewable fuel
     program established by the amendment made by section
     1501(a)(2) of the Energy Policy Act of 2005 (Public Law 109-
     58; 119 Stat. 1067).
       (2) Applicable volume.--
       (A) Calendar years 2008 through 2022.--
       (i) Renewable fuel.--For the purpose of paragraph (1),
     subject to clause (ii), the applicable volume for any of
     calendar years 2008 through 2022 shall be determined in
     accordance with the following table:

                                   Applicable volume of renewable fuel
Calendar year:                               (in billions of gallons):
  2008.........................................................8.5 ....

  2009........................................................10.5 ....

  2010........................................................12.0 ....

  2011........................................................12.6 ....

  2012........................................................13.2 ....

  2013........................................................13.8 ....

  2014........................................................14.4 ....

  2015........................................................15.0 ....

  2016........................................................18.0 ....

  2017........................................................21.0 ....

  2018........................................................24.0 ....

  2019........................................................27.0 ....

  2020........................................................30.0 ....

  2021........................................................33.0 ....

  2022........................................................36.0.....

       (ii) Advanced biofuels.--For the purpose of paragraph (1),
     of the volume of renewable fuel required under clause (i),
     the applicable volume for any of calendar years 2016 through
     2022 for advanced biofuels shall be determined in accordance
     with the following table:

                                Applicable volume of advanced biofuels
Calendar year:                               (in billions of gallons):
  2016.........................................................3.0 ....

  2017.........................................................6.0 ....

  2018.........................................................9.0 ....

  2019........................................................12.0 ....

  2020........................................................15.0 ....

  2021........................................................18.0 ....

  2022........................................................21.0.....

       (B) Calendar year 2023 and thereafter.--Subject to
     subparagraph (C), for the purposes of paragraph (1), the
     applicable volume for calendar year 2023 and each calendar
     year thereafter shall be determined by the President, in
     coordination with the Secretary of Energy, the Secretary of
     Agriculture, and the Administrator of the Environmental
     Protection Agency, based on a review of the implementation of
     the program during calendar years 2007 through 2022,
     including a review of--
       (i) the impact of renewable fuels on the energy security of
     the United States;
       (ii) the expected annual rate of future production of
     renewable fuels, including advanced biofuels;
       (iii) the impact of renewable fuels on the infrastructure
     of the United States, including deliverability of materials,
     goods, and products other than renewable fuel, and the
     sufficiency of infrastructure to deliver renewable fuel; and
       (iv) the impact of the use of renewable fuels on other
     factors, including job creation, the price and supply of
     agricultural commodities, rural economic development, and the
     environment.
       (C) Minimum applicable volume.--Subject to subparagraph
     (D), for the purpose of paragraph (1), the applicable volume
     for calendar year 2023 and each calendar year thereafter
     shall be equal to the product obtained by multiplying--
       (i) the number of gallons of gasoline that the President
     estimates will be sold or introduced into commerce in the
     calendar year; and
       (ii) the ratio that--

       (I) 36,000,000,000 gallons of renewable fuel; bears to
       (II) the number of gallons of gasoline sold or introduced
     into commerce in calendar year 2022.

       (D) Minimum percentage of advanced biofuel.--For the
     purpose of paragraph (1) and subparagraph (C), at least 60
     percent of the minimum applicable volume for calendar year
     2023 and each calendar year thereafter shall be advanced
     biofuel.
       (b) Applicable Percentages.--
       (1) Provision of estimate of volumes of gasoline sales.--
     Not later than October 31 of each of calendar years 2008
     through 2021, the Administrator of the Energy Information
     Administration shall provide to the President an estimate,
     with respect to the following calendar year, of the volumes
     of gasoline projected to be sold or introduced into commerce
     in the United States.
       (2) Determination of applicable percentages.--
       (A) In general.--Not later than November 30 of each of
     calendar years 2008 through 2022, based on the estimate
     provided under paragraph (1), the President shall determine
     and publish in the Federal Register, with respect to the
     following calendar year, the renewable fuel obligation that
     ensures that the requirements of subsection (a) are met.
       (B) Required elements.--The renewable fuel obligation
     determined for a calendar year under subparagraph (A) shall--
       (i) be applicable to refineries, blenders, and importers,
     as appropriate;
       (ii) be expressed in terms of a volume percentage of
     gasoline sold or introduced into commerce in the United
     States; and
       (iii) subject to paragraph (3)(A), consist of a single
     applicable percentage that applies to all categories of
     persons specified in clause (i).
       (3) Adjustments.--In determining the applicable percentage
     for a calendar year, the President shall make adjustments--
       (A) to prevent the imposition of redundant obligations on
     any person specified in paragraph (2)(B)(i); and

[[Page S14315]]

       (B) to account for the use of renewable fuel during the
     previous calendar year by small refineries that are exempt
     under subsection (g).
       (c) Volume Conversion Factors for Renewable Fuels Based on
     Energy Content or Requirements.--
       (1) In general.--For the purpose of subsection (a), the
     President shall assign values to specific types of advanced
     biofuels for the purpose of satisfying the fuel volume
     requirements of subsection (a)(2) in accordance with this
     subsection.
       (2) Energy content relative to ethanol.--For advanced
     biofuel, 1 gallon of the advanced biofuel shall be considered
     to be the equivalent of 1 gallon of renewable fuel multiplied
     by the ratio that--
       (A) the number of British thermal units of energy produced
     by the combustion of 1 gallon of the advanced biofuel (as
     measured under conditions determined by the Secretary); bears
     to
       (B) the number of British thermal units of energy produced
     by the combustion of 1 gallon of pure ethanol (as measured
     under conditions determined by the Secretary to be comparable
     to conditions described in subparagraph (A)).
       (3) Transitional energy-related conversion factors for
     cellulosic biomass ethanol.--For any of calendar years 2008
     through 2015, 1 gallon of cellulosic biomass ethanol shall be
     considered to be the equivalent of 2.5 gallons of renewable
     fuel.
       (d) Credit Program.--
       (1) In general.--The President, in consultation with the
     Secretary and the Administrator of the Environmental
     Protection Agency, shall implement a credit program to manage
     the renewable fuel requirement of this section in a manner
     consistent with the credit program established by the
     amendment made by section 1501(a)(2) of the Energy Policy Act
     of 2005 (Public Law 109-58; 119 Stat. 1067).
       (2) Market transparency.--In carrying out the credit
     program under this subsection, the President shall facilitate
     price transparency in markets for the sale and trade of
     credits, with due regard for the public interest, the
     integrity of those markets, fair competition, and the
     protection of consumers and agricultural producers.
       (e) Seasonal Variations in Renewable Fuel Use.--
       (1) Study.--For each of calendar years 2008 through 2022,
     the Administrator of the Energy Information Administration
     shall conduct a study of renewable fuel blending to determine
     whether there are excessive seasonal variations in the use of
     renewable fuel.
       (2) Regulation of excessive seasonal variations.--If, for
     any calendar year, the Administrator of the Energy
     Information Administration, based on the study under
     paragraph (1), makes the determinations specified in
     paragraph (3), the President shall promulgate regulations to
     ensure that 25 percent or more of the quantity of renewable
     fuel necessary to meet the requirements of subsection (a) is
     used during each of the 2 periods specified in paragraph (4)
     of each subsequent calendar year.
       (3) Determinations.--The determinations referred to in
     paragraph (2) are that--
       (A) less than 25 percent of the quantity of renewable fuel
     necessary to meet the requirements of subsection (a) has been
     used during 1 of the 2 periods specified in paragraph (4) of
     the calendar year;
       (B) a pattern of excessive seasonal variation described in
     subparagraph (A) will continue in subsequent calendar years;
     and
       (C) promulgating regulations or other requirements to
     impose a 25 percent or more seasonal use of renewable fuels
     will not significantly--
       (i) increase the price of motor fuels to the consumer; or
       (ii) prevent or interfere with the attainment of national
     ambient air quality standards.
       (4) Periods.--The 2 periods referred to in this subsection
     are--
       (A) April through September; and
       (B) January through March and October through December.
       (f) Waivers.--
       (1) In general.--The President, in consultation with the
     Secretary of Energy, the Secretary of Agriculture, and the
     Administrator of the Environmental Protection Agency, may
     waive the requirements of subsection (a) in whole or in part
     on petition by one or more States by reducing the national
     quantity of renewable fuel required under subsection (a),
     based on a determination by the President (after public
     notice and opportunity for comment), that--
       (A) implementation of the requirement would severely harm
     the economy or environment of a State, a region, or the
     United States; or
       (B) extreme and unusual circumstances exist that prevent
     distribution of an adequate supply of domestically-produced
     renewable fuel to consumers in the United States.
       (2) Petitions for waivers.--The President, in consultation
     with the Secretary of Energy, the Secretary of Agriculture,
     and the Administrator of the Environmental Protection Agency,
     shall approve or disapprove a State petition for a waiver of
     the requirements of subsection (a) within 30 days after the
     date on which the petition is received by the President.
       (3) Termination of waivers.--A waiver granted under
     paragraph (1) shall terminate after 1 year, but may be
     renewed by the President after consultation with the
     Secretary of Energy, the Secretary of Agriculture, and the
     Administrator of the Environmental Protection Agency.
       (g) Small Refineries.--
       (1) Temporary exemption.--
       (A) In general.--The requirements of subsection (a) shall
     not apply to--
       (i) small refineries (other than a small refinery described
     in clause (ii)) until calendar year 2013; and
       (ii) small refineries owned by a small business refiner (as
     defined in section 45H(c) of the Internal Revenue Code of
     1986) until calendar year 2015.
       (B) Extension of exemption.--
       (i) Study by secretary.--Not later than December 31, 2008,
     the Secretary shall submit to the President and Congress a
     report describing the results of a study to determine whether
     compliance with the requirements of subsection (a) would
     impose a disproportionate economic hardship on small
     refineries.
       (ii) Extension of exemption.--In the case of a small
     refinery that the Secretary determines under clause (i) would
     be subject to a disproportionate economic hardship if
     required to comply with subsection (a), the President shall
     extend the exemption under subparagraph (A) for the small
     refinery for a period of not less than 2 additional years.
       (2) Petitions based on disproportionate economic
     hardship.--
       (A) Extension of exemption.--A small refinery may at any
     time petition the President for an extension of the exemption
     under paragraph (1) for the reason of disproportionate
     economic hardship.
       (B) Evaluation of petitions.--In evaluating a petition
     under subparagraph (A), the President, in consultation with
     the Secretary, shall consider the findings of the study under
     paragraph (1)(B) and other economic factors.
       (C) Deadline for action on petitions.--The President shall
     act on any petition submitted by a small refinery for a
     hardship exemption not later than 90 days after the date of
     receipt of the petition.
       (3) Opt-in for small refineries.--A small refinery shall be
     subject to the requirements of subsection (a) if the small
     refinery notifies the President that the small refinery
     waives the exemption under paragraph (1).
       (h) Penalties and Enforcement.--
       (1) Civil penalties.--
       (A) In general.--Any person that violates a regulation
     promulgated under subsection (a), or that fails to furnish
     any information required under such a regulation, shall be
     liable to the United States for a civil penalty of not more
     than the total of--
       (i) $25,000 for each day of the violation; and
       (ii) the amount of economic benefit or savings received by
     the person resulting from the violation, as determined by the
     President.
       (B) Collection.--Civil penalties under subparagraph (A)
     shall be assessed by, and collected in a civil action brought
     by, the Secretary or such other officer of the United States
     as is designated by the President.
       (2) Injunctive authority.--
       (A) In general.--The district courts of the United States
     shall have jurisdiction to--
       (i) restrain a violation of a regulation promulgated under
     subsection (a);
       (ii) award other appropriate relief; and
       (iii) compel the furnishing of information required under
     the regulation.
       (B) Actions.--An action to restrain such violations and
     compel such actions shall be brought by and in the name of
     the United States.
       (C) Subpoenas.--In the action, a subpoena for a witness who
     is required to attend a district court in any district may
     apply in any other district.
       (i) Voluntary Labeling Program.--
       (1) In general.--The President shall establish criteria for
     a system of voluntary labeling of renewable fuels based on
     life cycle greenhouse gas emissions.
       (2) Consumer education.--The President shall ensure that
     the labeling system under this subsection provides useful
     information to consumers making fuel purchases.
       (3) Flexibility.--In carrying out this subsection, the
     President may establish more than 1 label, as appropriate.
       (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

[[Page S14316]]

     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).
       (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).

     SEC. 9112. PRODUCTION OF RENEWABLE FUEL USING RENEWABLE
                   ENERGY.

       (a) Definitions.--In this section:
       (1) Facility.--The term ``facility'' means a facility used
     for the production of renewable fuel.
       (2) Renewable energy.--
       (A) In general.--The term ``renewable energy'' has the
     meaning given the term in section 203(b) of the Energy Policy
     Act of 2005 (42 U.S.C. 15852(b)).
       (B) Inclusion.--The term ``renewable energy'' includes
     biogas produced through the conversion of organic matter from
     renewable biomass.
       (b) Additional Credit.--
       (1) In general.--The President shall provide a credit under
     the program established under section 9111(d) to the owner of
     a facility that uses renewable energy to displace more than
     90 percent of the fossil fuel normally used in the production
     of renewable fuel.
       (2) Credit amount.--The President may provide the credit in
     a quantity that is not more than the equivalent of 1.5
     gallons of renewable fuel for each gallon of renewable fuel
     produced in a facility described in paragraph (1).

     SEC. 9113. SENSE OF CONGRESS RELATING TO THE USE OF RENEWABLE
                   RESOURCES TO GENERATE ENERGY.

       (a) Findings.--Congress finds that--
       (1) the United States has a quantity of renewable energy
     resources that is sufficient to supply a significant portion
     of the energy needs of the United States;
       (2) the agricultural, forestry, and working land of the
     United States can help ensure a sustainable domestic energy
     system;
       (3) accelerated development and use of renewable energy
     technologies provide numerous benefits to the United States,
     including improved national security, improved balance of
     payments, healthier rural economies, improved environmental
     quality, and abundant, reliable, and affordable energy for
     all citizens of the United States;
       (4) the production of transportation fuels from renewable
     energy would help the United States meet rapidly growing
     domestic and global energy demands, reduce the dependence of
     the United States on energy imported from volatile regions of
     the world that are politically unstable, stabilize the cost
     and availability of energy, and safeguard the economy and
     security of the United States;
       (5) increased energy production from domestic renewable
     resources would attract substantial new investments in energy
     infrastructure, create economic growth, develop new jobs for
     the citizens of the United States, and increase the income
     for farm, ranch, and forestry jobs in the rural regions of
     the United States;
       (6) increased use of renewable energy is practical and can
     be cost effective with the implementation of supportive
     policies and proper incentives to stimulate markets and
     infrastructure; and
       (7) public policies aimed at enhancing renewable energy
     production and accelerating technological improvements will
     further reduce energy costs over time and increase market
     demand.
       (b) Sense of Congress.--It is the sense of Congress that it
     is the goal of the United States that, not later than January
     1, 2025, the agricultural, forestry, and working land of the
     United States should--
       (1) provide from renewable resources not less than 25
     percent of the total energy consumed in the United States;
     and
       (2) continue to produce safe, abundant, and affordable
     food, feed, and fiber.

                PART II--RENEWABLE FUELS INFRASTRUCTURE

     SEC. 9121. INFRASTRUCTURE PILOT PROGRAM FOR RENEWABLE FUELS.

       (a) In General.--The Secretary, in consultation with the
     Secretary of Transportation and the Administrator of the
     Environmental Protection Agency, shall establish a
     competitive grant pilot program (referred to in this section
     as the ``pilot program''), to be administered through the
     Vehicle Technology Deployment Program of the Department of
     Energy, to provide not more than 10 geographically-dispersed
     project grants to State governments, Indian tribal
     governments, local governments, metropolitan transportation
     authorities, or partnerships of those entities to carry out 1
     or more projects for the purposes described in subsection
     (b).
       (b) Grant Purposes.--A grant under this section shall be
     used for the establishment of refueling infrastructure
     corridors, as designated by the Secretary, for gasoline
     blends that contain not less than 11 percent, and not more
     than 85 percent, renewable fuel or diesel fuel that contains
     at least 10 percent renewable fuel, including--
       (1) installation of infrastructure and equipment necessary
     to ensure adequate distribution of renewable fuels within the
     corridor;
       (2) installation of infrastructure and equipment necessary
     to directly support vehicles powered by renewable fuels; and
       (3) operation and maintenance of infrastructure and
     equipment installed as part of a project funded by the grant.
       (c) Applications.--
       (1) Requirements.--
       (A) In general.--Subject to subparagraph (B), not later
     than 90 days after the date of enactment of this Act, the
     Secretary shall issue requirements for use in applying for
     grants under the pilot program.
       (B) Minimum requirements.--At a minimum, the Secretary
     shall require that an application for a grant under this
     section--
       (i) be submitted by--

       (I) the head of a State, tribal, or local government or a
     metropolitan transportation authority, or any combination of
     those entities; and
       (II) a registered participant in the Vehicle Technology
     Deployment Program of the Department of Energy; and

       (ii) include--

       (I) a description of the project proposed in the
     application, including the ways in which the project meets
     the requirements of this section;
       (II) an estimate of the degree of use of the project,
     including the estimated size of fleet of vehicles operated
     with renewable fuel available within the geographic region of
     the corridor, measured as a total quantity and a percentage;
       (III) an estimate of the potential petroleum displaced as a
     result of the project (measured as a total quantity and a
     percentage), and a plan to collect and disseminate petroleum
     displacement and other relevant data relating to the project
     to be funded under the grant, over the expected life of the
     project;
       (IV) a description of the means by which the project will
     be sustainable without Federal assistance after the
     completion of the term of the grant;
       (V) a complete description of the costs of the project,
     including acquisition, construction, operation, and
     maintenance costs over the expected life of the project; and
       (VI) a description of which costs of the project will be
     supported by Federal assistance under this subsection.

       (2) Partners.--An applicant under paragraph (1) may carry
     out a project under the pilot program in partnership with
     public and private entities.
       (d) Selection Criteria.--In evaluating applications under
     the pilot program, the Secretary shall--
       (1) consider the experience of each applicant with
     previous, similar projects; and
       (2) give priority consideration to applications that--
       (A) are most likely to maximize displacement of petroleum
     consumption, measured as a total quantity and a percentage;
       (B) are best able to incorporate existing infrastructure
     while maximizing, to the extent practicable, the use of
     advanced biofuels;
       (C) demonstrate the greatest commitment on the part of the
     applicant to ensure funding for the proposed project and the
     greatest likelihood that the project will be maintained or
     expanded after Federal assistance under this subsection is
     completed;
       (D) represent a partnership of public and private entities;
     and
       (E) exceed the minimum requirements of subsection
     (c)(1)(B).
       (e) Pilot Project Requirements.--
       (1) Maximum amount.--The Secretary shall provide not more
     than $20,000,000 in Federal assistance under the pilot
     program to any applicant.
       (2) Cost sharing.--The non-Federal share of the cost of any
     activity relating to renewable fuel infrastructure
     development carried out using funds from a grant under this
     section shall be not less than 20 percent.
       (3) Maximum period of grants.--The Secretary shall not
     provide funds to any applicant under the pilot program for
     more than 2 years.
       (4) Deployment and distribution.--The Secretary shall seek,
     to the maximum extent practicable, to ensure a broad
     geographic distribution of project sites funded by grants
     under this section.
       (5) Transfer of information and knowledge.--The Secretary
     shall establish mechanisms to ensure that the information and
     knowledge gained by participants in the pilot program are
     transferred among the pilot program participants and to other
     interested parties, including other applicants that submitted
     applications.
       (f) Schedule.--
       (1) Initial grants.--
       (A) In general.--Not later than 90 days after the date of
     enactment of this Act, the

[[Page S14317]]

     Secretary shall publish in the Federal Register, Commerce
     Business Daily, and such other publications as the Secretary
     considers to be appropriate, a notice and request for
     applications to carry out projects under the pilot program.
       (B) Deadline.--An application described in subparagraph (A)
     shall be submitted to the Secretary by not later than 180
     days after the date of publication of the notice under that
     subparagraph.
       (C) Initial selection.--Not later than 90 days after the
     date by which applications for grants are due under
     subparagraph (B), the Secretary shall select by competitive,
     peer-reviewed proposal up to 5 applications for projects to
     be awarded a grant under the pilot program.
       (2) Additional grants.--
       (A) In general.--Not later than 2 years after the date of
     enactment of this Act, the Secretary shall publish in the
     Federal Register, Commerce Business Daily, and such other
     publications as the Secretary considers to be appropriate, a
     notice and request for additional applications to carry out
     projects under the pilot program that incorporate the
     information and knowledge obtained through the implementation
     of the first round of projects authorized under the pilot
     program.
       (B) Deadline.--An application described in subparagraph (A)
     shall be submitted to the Secretary by not later than 180
     days after the date of publication of the notice under that
     subparagraph.
       (C) Initial selection.--Not later than 90 days after the
     date by which applications for grants are due under
     subparagraph (B), the Secretary shall select by competitive,
     peer-reviewed proposal such additional applications for
     projects to be awarded a grant under the pilot program as the
     Secretary determines to be appropriate.
       (g) Reports to Congress.--
       (1) Initial report.--Not later than 60 days after the date
     on which grants are awarded under this section, the Secretary
     shall submit to Congress a report containing--
       (A) an identification of the grant recipients and a
     description of the projects to be funded under the pilot
     program;
       (B) an identification of other applicants that submitted
     applications for the pilot program but to which funding was
     not provided; and
       (C) a description of the mechanisms used by the Secretary
     to ensure that the information and knowledge gained by
     participants in the pilot program are transferred among the
     pilot program participants and to other interested parties,
     including other applicants that submitted applications.
       (2) Evaluation.--Not later than 2 years after the date of
     enactment of this Act, and annually thereafter until the
     termination of the pilot program, the Secretary shall submit
     to Congress a report containing an evaluation of the
     effectiveness of the pilot program, including an assessment
     of the petroleum displacement and benefits to the environment
     derived from the projects included in the pilot program.
       (h) Authorization of Appropriations.--There is authorized
     to be appropriated to the Secretary to carry out this section
     $200,000,000, to remain available until expended.

     SEC. 9122. BIOENERGY RESEARCH AND DEVELOPMENT.

       Section 931(c) of the Energy Policy Act of 2005 (42 U.S.C.
     16231(c)) is amended--
       (1) in paragraph (2), by striking ``$251,000,000'' and
     inserting ``$377,000,000''; and
       (2) in paragraph (3), by striking ``$274,000,000'' and
     inserting ``$398,000,000''.

     SEC. 9123. BIORESEARCH CENTERS FOR SYSTEMS BIOLOGY PROGRAM.

       Section 977(a)(1) of the Energy Policy Act of 2005 (42
     U.S.C. 16317(a)(1)) is amended by inserting before the period
     at the end the following: ``, including the establishment of
     at least 11 bioresearch centers of varying sizes, as
     appropriate, that focus on biofuels, of which at least 2
     centers shall be located in each of the 4 Petroleum
     Administration for Defense Districts with no subdistricts and
     1 center shall be located in each of the subdistricts of the
     Petroleum Administration for Defense District with
     subdistricts''.

     SEC. 9124. GRANTS FOR RENEWABLE FUEL PRODUCTION RESEARCH AND
                   DEVELOPMENT IN CERTAIN STATES.

       (a) In General.--The Secretary shall provide grants to
     eligible entities to conduct research into, and develop and
     implement, renewable fuel production technologies in States
     with low rates of ethanol production, including low rates of
     production of cellulosic biomass ethanol, as determined by
     the Secretary.
       (b) Eligibility.--To be eligible to receive a grant under
     the section, an entity shall--
       (1)(A) be an institution of higher education (as defined in
     section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801))
     located in a State described in subsection (a);
       (B) be an institution--
       (i) referred to in section 532 of the Equity in Educational
     Land-Grant Status Act of 1994 (Public Law 103-382; 7 U.S.C.
     301 note);
       (ii) that is eligible for a grant under the Tribally
     Controlled College or University Assistance Act of 1978 (25
     U.S.C. 1801 et seq.), including Dine College; or
       (iii) that is eligible for a grant under the Navajo
     Community College Act (25 U.S.C. 640a et seq.); or
       (C) be a consortium of such institutions of higher
     education, industry, State agencies, Indian tribal agencies,
     or local government agencies located in the State; and
       (2) have proven experience and capabilities with relevant
     technologies.
       (c) Authorization of Appropriations.--There is authorized
     to be appropriated to carry out this section $25,000,000 for
     each of fiscal years 2008 through 2010.

     SEC. 9125. GRANTS FOR INFRASTRUCTURE FOR TRANSPORTATION OF
                   BIOMASS TO LOCAL BIOREFINERIES.

       (a) In General.--The Secretary shall conduct a program
     under which the Secretary shall provide grants to Indian
     tribal and local governments and other eligible entities (as
     determined by the Secretary) (referred to in this section as
     ``eligible entities'') to promote the development of
     infrastructure to support the separation, production,
     processing, and transportation of biomass to local
     biorefineries, including by portable processing equipment.
       (b) Phases.--The Secretary shall conduct the program in the
     following phases:
       (1) Development.--In the first phase of the program, the
     Secretary shall make grants to eligible entities to assist
     the eligible entities in the development of local projects to
     promote the development of infrastructure to support the
     separation, production, processing, and transportation of
     biomass to local biorefineries, including by portable
     processing equipment.
       (2) Implementation.--In the second phase of the program,
     the Secretary shall make competitive grants to eligible
     entities to implement projects developed under paragraph (1).
       (c) Authorization of Appropriations.--There are authorized
     to be appropriated such sums as are necessary to carry out
     this section.

     SEC. 9126. BIOREFINERY INFORMATION CENTER.

       (a) In General.--The Secretary, in cooperation with the
     Secretary of Agriculture, shall establish a biorefinery
     information center to make available to interested parties
     information on--
       (1) renewable fuel resources, including information on
     programs and incentives for renewable fuels;
       (2) renewable fuel producers;
       (3) renewable fuel users; and
       (4) potential renewable fuel users.
       (b) Administration.--In administering the biorefinery
     information center, the Secretary shall--
       (1) continually update information provided by the center;
       (2) make information available to interested parties on the
     process for establishing a biorefinery; and
       (3) make information and assistance provided by the center
     available through a toll-free telephone number and website.
       (c) Authorization of Appropriations.--There are authorized
     to be appropriated such sums as are necessary to carry out
     this section.

     SEC. 9127. ALTERNATIVE FUEL DATABASE AND MATERIALS.

       The Secretary and the Director of the National Institute of
     Standards and Technology shall jointly establish and make
     available to the public--
       (1) a database that describes the physical properties of
     different types of alternative fuel; and
       (2) standard reference materials for different types of
     alternative fuel.

     SEC. 9128. FUEL TANK CAP LABELING REQUIREMENT.

       Section 406(a) of the Energy Policy Act of 1992 (42 U.S.C.
     13232(a)) is amended--
       (1) by striking ``The Federal Trade Commission'' and
     inserting the following:
       ``(1) In general.--The Federal Trade Commission''; and
       (2) by adding at the end the following:
       ``(2) Fuel tank cap labeling requirement.--Beginning with
     model year 2010, the fuel tank cap of each alternative fueled
     vehicle manufactured for sale in the United States shall be
     clearly labeled to inform consumers that such vehicle can
     operate on alternative fuel.''.

     SEC. 9129. BIODIESEL.

       (a) In General.--Not later than 180 days after the date of
     enactment of this Act, the Secretary shall submit to Congress
     a report on any research and development challenges inherent
     in increasing to 5 percent the proportion of diesel fuel sold
     in the United States that is biodiesel (as defined in section
     757 of the Energy Policy Act of 2005 (42 U.S.C. 16105)).
       (b) Regulations.--The President shall promulgate
     regulations providing for the uniform labeling of biodiesel
     blends that are certified to meet applicable standards
     published by the American Society for Testing and Materials.
       (c) National Biodiesel Fuel Quality Standard.--
       (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.
       (2) Enforcement.--The President shall ensure that all
     biodiesel entering interstate commerce meets the requirements
     of paragraph (1).
       (3) Funding.--There are authorized to be appropriated to
     the President to carry out this section:
       (A) $3,000,000 for fiscal year 2008.
       (B) $3,000,000 for fiscal year 2009.

[[Page S14318]]

       (C) $3,000,000 for fiscal year 2010.

     SEC. 9130. TRANSITIONAL ASSISTANCE FOR FARMERS WHO PLANT
                   DEDICATED ENERGY CROPS FOR A LOCAL CELLULOSIC
                   REFINERY.

       (a) Definitions.--In this section:
       (1) Cellulosic crop.--The term ``cellulosic crop'' means a
     tree or grass that is grown specifically--
       (A) to provide raw materials (including feedstocks) for
     conversion to liquid transportation fuels or chemicals
     through biochemical or thermochemical processes; or
       (B) for energy generation through combustion, pyrolysis, or
     cofiring.
       (2) Cellulosic refiner.--The term ``cellulosic refiner''
     means the owner or operator of a cellulosic refinery.
       (3) Cellulosic refinery.--The term ``cellulosic refinery''
     means a refinery that processes a cellulosic crop.
       (4) Qualified cellulosic crop.--The term ``qualified
     cellulosic crop'' means, with respect to an agricultural
     producer, a cellulosic crop that is--
       (A) the subject of a contract or memorandum of
     understanding between the producer and a cellulosic refiner,
     under which the producer is obligated to sell the crop to the
     cellulosic refiner by a certain date; and
       (B) produced not more than 70 miles from a cellulosic
     refinery owned or operated by the cellulosic refiner.
       (5) Secretary.--The term ``Secretary'' means the Secretary
     of Agriculture.
       (b) Transitional Assistance Payments.--The Secretary shall
     make transitional assistance payments to an agricultural
     producer during the first year in which the producer devotes
     land to the production of a qualified cellulosic crop.
       (c) Amount of Payment.--
       (1) Determined by formula.--Subject to paragraph (2), the
     Secretary shall devise a formula to be used to calculate the
     amount of a payment to be made to an agricultural producer
     under this section, based on the opportunity cost (as
     determined in accordance with such standard as the Secretary
     may establish, taking into consideration land rental rates
     and other applicable costs) incurred by the producer during
     the first year in which the producer devotes land to the
     production of the qualified cellulosic crop.
       (2) Limitation.--The total of the amount paid to a producer
     under this section shall not exceed an amount equal to 25
     percent of the amounts made available under subsection (e)
     for the applicable fiscal year.
       (d) Regulations.--The Secretary shall promulgate such
     regulations as the Secretary determines to be necessary to
     carry out this section.
       (e) Authorization of Appropriations.--There is authorized
     to be appropriated to carry out this section $4,088,000 for
     each of fiscal years 2008 through 2012, to remain available
     until expended.

     SEC. 9131. 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.--Of the funding
     authorized under section 9122, 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.

                           PART III--STUDIES

     SEC. 9141. STUDY OF ADVANCED BIOFUELS TECHNOLOGIES.

       (a) In General.--Not later than October 1, 2012, the
     Secretary shall offer to enter into a contract with the
     National Academy of Sciences under which the Academy shall
     conduct a study of technologies relating to the production,
     transportation, and distribution of advanced biofuels.
       (b) Scope.--In conducting the study, the Academy shall--
       (1) include an assessment of the maturity of advanced
     biofuels technologies;
       (2) consider whether the rate of development of those
     technologies will be sufficient to meet the advanced biofuel
     standards required under section 9111;
       (3) consider the effectiveness of the research and
     development programs and activities of the Department of
     Energy relating to advanced biofuel technologies; and
       (4) make policy recommendations to accelerate the
     development of those technologies to commercial viability, as
     appropriate.
       (c) Report.--Not later than November 30, 2014, 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 describing
     the results of the study conducted under this section.

     SEC. 9142. STUDY OF INCREASED CONSUMPTION OF ETHANOL-BLENDED
                   GASOLINE WITH HIGHER LEVELS OF ETHANOL.

       (a) In General.--The Secretary, in cooperation with the
     Secretary of Agriculture, the Administrator of the
     Environmental Protection Agency, 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 that are 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 consumption of ethanol;
       (2) an evaluation of the economic, market, and energy-
     related impacts of State and regional differences in ethanol
     blends;
       (3) an evaluation of the economic, market, and energy-
     related impacts on gasoline retailers and consumers of
     separate and distinctly labeled fuel storage facilities and
     dispensers;
       (4) an evaluation of 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 on-
     road, 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 1 year after the date of
     enactment of this Act, the Secretary shall submit to Congress
     a report describing the results of the study conducted under
     this section.

     SEC. 9143. PIPELINE FEASIBILITY STUDY.

       (a) In General.--The Secretary, in coordination with the
     Secretary of Agriculture and 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 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;

[[Page S14319]]

       (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, identifying remedial
     and preventative measures to ensure pipeline integrity; and
       (7) such other factors as the Secretary considers
     appropriate.
       (c) Report.--Not later than 15 months after the date of
     enactment of this Act, the Secretary shall submit to Congress
     a report describing the results of the study conducted under
     this section.

     SEC. 9144. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES
                   TO USE E-85 FUEL.

       (a) In General.--The Secretary shall conduct a study of
     methods of increasing the fuel efficiency of flexible fueled
     vehicles by optimizing flexible fueled vehicles to operate
     using E-85 fuel.
       (b) Report.--Not later than 180 days after the date of
     enactment of this Act, the Secretary shall submit to the
     Committee on Energy and Natural Resources of the Senate and
     the Committee on Natural Resources of the House of
     Representatives a report that describes the results of the
     study, including any recommendations of the Secretary.

     SEC. 9145. STUDY OF CREDITS FOR USE OF RENEWABLE ELECTRICITY
                   IN ELECTRIC VEHICLES.

       (a) Definition of Electric Vehicle.--In this section, the
     term ``electric vehicle'' means an electric motor vehicle (as
     defined in section 601 of the Energy Policy Act of 1992 (42
     U.S.C. 13271)) for which the rechargeable storage battery--
       (1) receives a charge directly from a source of electric
     current that is external to the vehicle; and
       (2) provides a minimum of 80 percent of the motive power of
     the vehicle.
       (b) Study.--The Secretary shall conduct a study on the
     feasibility of issuing credits under the program established
     under section 9111(d) to electric vehicles powered by
     electricity produced from renewable energy sources.
       (c) Report.--Not later than 18 months after the date of
     enactment of this Act, 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 the results of the
     study, including a description of--
       (1) existing programs and studies on the use of renewable
     electricity as a means of powering electric vehicles; and
       (2) alternatives for--
       (A) designing a pilot program to determine the feasibility
     of using renewable electricity to power electric vehicles as
     an adjunct to a renewable fuels mandate;
       (B) allowing the use, under the pilot program designed
     under subparagraph (A), of electricity generated from nuclear
     energy as an additional source of supply;
       (C) identifying the source of electricity used to power
     electric vehicles; and
       (D) equating specific quantities of electricity to
     quantities of renewable fuel under section 9111(d).

     SEC. 9146. STUDY OF ENGINE DURABILITY ASSOCIATED WITH THE USE
                   OF BIODIESEL.

       (a) In General.--Not later than 30 days after the date of
     enactment of this Act, the Secretary shall initiate a study
     on the effects of the use of biodiesel on engine durability.
       (b) Components.--The study under this section shall
     include--
       (1) an assessment of whether the use of biodiesel in
     conventional diesel engines lessens engine durability; and
       (2) an assessment of the effects referred to in subsection
     (a) with respect to biodiesel blends at varying
     concentrations, including--
       (A) B5;
       (B) B10;
       (C) B20; and
       (D) B30.

     SEC. 9147. STUDY OF INCENTIVES FOR RENEWABLE FUELS.

       (a) Study.--The President shall conduct a study of the
     renewable fuels industry and markets in the United States,
     including--
       (1) the costs to produce conventional and advanced
     biofuels;
       (2) the factors affecting the future market prices for
     those biofuels, including world oil prices; and
       (3) the financial incentives necessary to enhance, to the
     maximum extent practicable, the biofuels industry of the
     United States to reduce the dependence of the United States
     on foreign oil during calendar years 2011 through 2030.
       (b) Goals.--The study shall include an analysis of the
     options for financial incentives and the advantage and
     disadvantages of each option.
       (c) Report.--Not later than 1 year after the date of
     enactment of this Act, the President shall submit to Congress
     a report that describes the results of the study.

     SEC. 9148. STUDY OF STREAMLINED LIFECYCLE ANALYSIS TOOLS FOR
                   THE EVALUATION OF RENEWABLE CARBON CONTENT OF
                   BIOFUELS.

       (a) In General.--The Secretary, in consultation with the
     Secretary of Agriculture and the Administrator of the
     Environmental Protection Agency, shall conduct a study of--
       (1) published methods for evaluating the lifecycle fossil
     and renewable carbon content of fuels, including conventional
     and advanced biofuels; and
       (2) methods for performing simplified, streamlined
     lifecycle analyses of the fossil and renewable carbon content
     of biofuels.
       (b) Report.--Not later than 1 year after the date of
     enactment of this Act, 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 the results of the
     study under subsection (a), including recommendations for a
     method for performing a simplified, streamlined lifecycle
     analysis of the fossil and renewable carbon content of
     biofuels that includes--
       (1) carbon inputs to feedstock production; and
       (2) carbon inputs to the biofuel production process,
     including the carbon associated with electrical and thermal
     energy inputs.

     SEC. 9149. STUDY OF EFFECTS OF ETHANOL-BLENDED GASOLINE ON
                   OFF-ROAD VEHICLES.

       (a) Study.--
       (1) In general.--The Secretary, in consultation with the
     Secretary of Transportation and the Administrator of the
     Environmental Protection Agency, shall conduct a study to
     determine the effects of ethanol-blended gasoline on off-road
     vehicles and recreational boats.
       (2) Evaluation.--The study shall include an evaluation of
     the operational, safety, durability, and environmental
     impacts of ethanol-blended gasoline on off-road and marine
     engines, recreational boats, and related equipment.
       (b) Report.--Not later than 1 year after the date of
     enactment of this Act, the Secretary shall submit to Congress
     a report describing the results of the study.

     SEC. 9150. STUDY OF OFFSHORE WIND RESOURCES.

       (a) Definitions.--In this section:
       (1) Eligible institution.--The term ``eligible
     institution'' means a college or university that--
       (A) as of the date of enactment of this Act, has an
     offshore wind power research program; and
       (B) is located in a region of the United States that is in
     reasonable proximity to the eastern outer Continental Shelf,
     as determined by the Secretary.
       (2) Secretary.--The term ``Secretary'' means the Secretary
     of the Interior, acting through the Director of the Minerals
     Management Service.
       (b) Study.--The Secretary, in cooperation with an eligible
     institution, as selected by the Secretary, shall conduct a
     study to assess each offshore wind resource located in the
     region of the eastern outer Continental Shelf.
       (c) Report.--Upon completion of the study under subsection
     (b), the Secretary shall submit to Congress a report that
     includes--
       (1) a description of--
       (A) the locations and total power generation resources of
     the best offshore wind resources located in the region of the
     eastern outer Continental Shelf, as determined by the
     Secretary;
       (B) based on conflicting zones relating to any
     infrastructure that, as of the date of enactment of this Act,
     is located in close proximity to any offshore wind resource,
     the likely exclusion zones of each offshore wind resource
     described in subparagraph (A);
       (C) the relationship of the temporal variation of each
     offshore wind resource described in subparagraph (A) with--
       (i) any other offshore wind resource; and
       (ii) with loads and corresponding system operator markets;
       (D) the geological compatibility of each offshore wind
     resource described in subparagraph (A) with any potential
     technology relating to sea floor towers; and
       (E) with respect to each area in which an offshore wind
     resource described in subparagraph (A) is located, the
     relationship of the authority under any coastal management
     plan of the State in which the area is located with the
     Federal Government; and
       (2) recommendations on the manner by which to handle
     offshore wind intermittence.
       (d) Incorporation of Study.--Effective beginning on the
     date on which the Secretary completes the study under
     subsection (b), the Secretary shall incorporate the findings
     included in the report under subsection (c) into the planning
     process documents for any wind energy lease sale--
       (1) relating to any offshore wind resource located in any
     appropriate area of the outer Continental Shelf, as
     determined by the Secretary; and
       (2) that is completed on or after the date of enactment of
     this Act.
       (e) Effect.--Nothing in this section--
       (1) delays any final regulation to be promulgated by the
     Secretary of the Interior to carry out section 8(p) of the
     Outer Continental Shelf Lands Act (43 U.S.C. 1337(p)); or
       (2) limits the authority of the Secretary to lease any
     offshore wind resource located in any appropriate area of the
     outer Continental Shelf, as determined by the Secretary.
       (f) Authorization of Appropriations.--There is authorized
     to be appropriated to carry out this section $5,000,000, to
     remain available until expended.

[[Page S14320]]

                   PART IV--ENVIRONMENTAL SAFEGUARDS

     SEC. 9161. 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. 9162. 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. 9163. 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. 9164. ANTI-BACKSLIDING.

       Section 211 of the Clean Air Act (42 U.S.C. 7545) (as
     amended by section 9162) 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 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 3615. Mr. GREGG (for himself and Mr. Kennedy) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

       At the appropriate place in title XI, insert the following:

                  Subtitle __--Public Safety Officers

     SEC. ___1. SHORT TITLE.

       This subtitle may be cited as the ``Public Safety Employer-
     Employee Cooperation Act of 2007''.

     SEC. ___2. DECLARATION OF PURPOSE AND POLICY.

       The Congress declares that the following is the policy of
     the United States:
       (1) Labor-management relationships and partnerships are
     based on trust, mutual respect, open communication, bilateral
     consensual problem solving, and shared accountability. Labor-
     management cooperation fully utilizes the strengths of both
     parties to best serve the interests of the public, operating
     as a team, to carry out the public safety mission in a
     quality work environment. In many public safety agencies it
     is the union that provides the institutional stability as
     elected leaders and appointees come and go.
       (2) State and local public safety officers play an
     essential role in the efforts of the United States to detect,
     prevent, and respond to terrorist attacks, and to respond to
     natural disasters, hazardous materials, and other mass
     casualty incidents. State and local public safety officers,
     as first responders, are a component of our Nation's National
     Incident Management System, developed by the Department of
     Homeland Security to coordinate response to and recovery from
     terrorism, major natural disasters, and other major
     emergencies. Public safety employer-employee cooperation is
     essential in meeting these needs and is, therefore, in the
     National interest.
       (3) The Federal Government needs to encourage conciliation,
     mediation, and voluntary arbitration to aid and encourage
     employers and the representatives of their employees to reach
     and maintain agreements concerning rates of pay, hours, and
     working conditions, and to make all reasonable efforts
     through negotiations to settle their differences by mutual
     agreement reached through collective bargaining or by such
     methods as may be provided for in any applicable agreement
     for the settlement of disputes.
       (4) The absence of adequate cooperation between public
     safety employers and employees has implications for the
     security of employees and can affect interstate and
     intrastate commerce. The lack of such labor-management
     cooperation can detrimentally impact the upgrading of police
     and fire services of local communities, the health and well-
     being of public safety officers, and the morale of the fire
     and police departments. Additionally, these factors could
     have significant commercial repercussions. Moreover,
     providing minimal standards for collective bargaining
     negotiations in the public safety sector can prevent
     industrial strife between labor and management that
     interferes with the normal flow of commerce.

     SEC. ___3. DEFINITIONS.

       In this subtitle:
       (1) Authority.--The term ``Authority'' means the Federal
     Labor Relations Authority.
       (2) Emergency medical services personnel.--The term
     ``emergency medical services personnel'' means an individual
     who provides out-of-hospital emergency medical care,
     including an emergency medical technician, paramedic, or
     first responder.
       (3) Employer; public safety agency.--The terms ``employer''
     and ``public safety agency'' mean any State, or political
     subdivision of a State, that employs public safety officers.
       (4) Firefighter.--The term ``firefighter'' has the meaning
     given the term ``employee engaged in fire protection
     activities'' in section 3(y) of the Fair Labor Standards Act
     (29 U.S.C. 203(y)).
       (5) Labor organization.--The term ``labor organization''
     means an organization composed in whole or in part of
     employees, in which employees participate, and which
     represents such employees before public safety

[[Page S14321]]

     agencies concerning grievances, conditions of employment, and
     related matters.
       (6) Law enforcement officer.--The term ``law enforcement
     officer'' has the meaning given such term in section 1204 of
     the Omnibus Crime Control and Safe Streets Act of 1968 (42
     U.S.C. 3796b).
       (7) Management employee.--The term ``management employee''
     has the meaning given such term under applicable State law in
     effect on the date of enactment of this subtitle. If no such
     State law is in effect, the term means an individual employed
     by a public safety employer in a position that requires or
     authorizes the individual to formulate, determine, or
     influence the policies of the employer.
       (8) Person.--The term ``person'' means an individual or a
     labor organization.
       (9) Public safety officer.--The term ``public safety
     officer''--
       (A) means an employee of a public safety agency who is a
     law enforcement officer, a firefighter, or an emergency
     medical services personnel;
       (B) includes an individual who is temporarily transferred
     to a supervisory or management position; and
       (C) does not include a permanent supervisory or management
     employee.
       (10) State.--The term ``State'' means each of the several
     States of the United States, the District of Columbia, and
     any territory or possession of the United States.
       (11) Substantially provides.--The term ``substantially
     provides'' means compliance with the essential requirements
     of this subtitle, specifically, the right to form and join a
     labor organization, the right to bargain over wages, hours,
     and conditions of employment, the right to sign an
     enforceable contract, and availability of some form of
     mechanism to break an impasse, such as arbitration,
     mediation, or fact-finding.
       (12) Supervisory employee.--The term ``supervisory
     employee'' has the meaning given such term under applicable
     State law in effect on the date of enactment of this
     subtitle. If no such State law is in effect, the term means
     an individual, employed by a public safety employer, who--
       (A) has the authority in the interest of the employer to
     hire, direct, assign, promote, reward, transfer, furlough,
     lay off, recall, suspend, discipline, or remove public safety
     officers, to adjust their grievances, or to effectively
     recommend such action, if the exercise of the authority is
     not merely routine or clerical in nature but requires the
     consistent exercise of independent judgment; and
       (B) devotes a majority of time at work exercising such
     authority.

     SEC. ___4. DETERMINATION OF RIGHTS AND RESPONSIBILITIES.

       (a) Determination.--
       (1) In general.--Not later than 180 days after the date of
     enactment of this subtitle, the Authority shall make a
     determination as to whether a State substantially provides
     for the rights and responsibilities described in subsection
     (b). In making such determinations, the Authority shall
     consider and give weight, to the maximum extent practicable,
     to the opinion of affected parties.
       (2) Subsequent determinations.--
       (A) In general.--A determination made pursuant to paragraph
     (1) shall remain in effect unless and until the Authority
     issues a subsequent determination, in accordance with the
     procedures set forth in subparagraph (B).
       (B) Procedures for subsequent determinations.--Upon
     establishing that a material change in State law or its
     interpretation has occurred, an employer or a labor
     organization may submit a written request for a subsequent
     determination. If satisfied that a material change in State
     law or its interpretation has occurred, the Authority shall
     issue a subsequent determination not later than 30 days after
     receipt of such request.
       (3) Judicial review.--Any person or employer aggrieved by a
     determination of the Authority under this section may, during
     the 60-day period beginning on the date on which the
     determination was made, petition any United States Court of
     Appeals in the circuit in which the person or employer
     resides or transacts business or in the District of Columbia
     circuit, for judicial review. In any judicial review of a
     determination by the Authority, the procedures contained in
     subsections (c) and (d) of section 7123 of title 5, United
     States Code, shall be followed.
       (b) Rights and Responsibilities.--In making a determination
     described in subsection (a), the Authority shall consider
     whether State law provides rights and responsibilities
     comparable to or greater than the following:
       (1) Granting public safety officers the right to form and
     join a labor organization, which may exclude management
     employees and supervisory employees, that is, or seeks to be,
     recognized as the exclusive bargaining representative of such
     employees.
       (2) Requiring public safety employers to recognize the
     employees' labor organization (freely chosen by a majority of
     the employees), to agree to bargain with the labor
     organization, and to commit any agreements to writing in a
     contract or memorandum of understanding.
       (3) Permitting bargaining over hours, wages, and terms and
     conditions of employment.
       (4) Making available an interest impasse resolution
     mechanism, such as fact-finding, mediation, arbitration, or
     comparable procedures.
       (5) Requiring enforcement through State courts of--
       (A) all rights, responsibilities, and protections provided
     by State law and enumerated in this section; and
       (B) any written contract or memorandum of understanding.
       (c) Failure To Meet Requirements.--
       (1) In general.--If the Authority determines, acting
     pursuant to its authority under subsection (a), that a State
     does not substantially provide for the rights and
     responsibilities described in subsection (b), such State
     shall be subject to the regulations and procedures described
     in section ___5.
       (2) Effective date.--Paragraph (1) shall take effect on the
     date that is 2 years after the date of enactment of this
     subtitle.

     SEC. ___5. ROLE OF FEDERAL LABOR RELATIONS AUTHORITY.

       (a) In General.--Not later than 1 year after the date of
     enactment of this subtitle, the Authority shall issue
     regulations in accordance with the rights and
     responsibilities described in section ___4(b) establishing
     collective bargaining procedures for employers and public
     safety officers in States which the Authority has determined,
     acting pursuant to section ___4(a), do not substantially
     provide for such rights and responsibilities.
       (b) Role of the Federal Labor Relations Authority.--The
     Authority, to the extent provided in this subtitle and in
     accordance with regulations prescribed by the Authority,
     shall--
       (1) determine the appropriateness of units for labor
     organization representation;
       (2) supervise or conduct elections to determine whether a
     labor organization has been selected as an exclusive
     representative by a voting majority of the employees in an
     appropriate unit;
       (3) resolve issues relating to the duty to bargain in good
     faith;
       (4) conduct hearings and resolve complaints of unfair labor
     practices;
       (5) resolve exceptions to the awards of arbitrators;
       (6) protect the right of each employee to form, join, or
     assist any labor organization, or to refrain from any such
     activity, freely and without fear of penalty or reprisal, and
     protect each employee in the exercise of such right; and
       (7) take such other actions as are necessary and
     appropriate to effectively administer this subtitle,
     including issuing subpoenas requiring the attendance and
     testimony of witnesses and the production of documentary or
     other evidence from any place in the United States, and
     administering oaths, taking or ordering the taking of
     depositions, ordering responses to written interrogatories,
     and receiving and examining witnesses.
       (c) Enforcement.--
       (1) Authority to petition court.--The Authority may
     petition any United States Court of Appeals with jurisdiction
     over the parties, or the United States Court of Appeals for
     the District of Columbia Circuit, to enforce any final orders
     under this section, and for appropriate temporary relief or a
     restraining order. Any petition under this section shall be
     conducted in accordance with subsections (c) and (d) of
     section 7123 of title 5, United States Code.
       (2) Private right of action.--Unless the Authority has
     filed a petition for enforcement as provided in paragraph
     (1), any party has the right to file suit in a State court of
     competent jurisdiction to enforce compliance with the
     regulations issued by the Authority pursuant to subsection
     (b), and to enforce compliance with any order issued by the
     Authority pursuant to this section. The right provided by
     this subsection to bring a suit to enforce compliance with
     any order issued by the Authority pursuant to this section
     shall terminate upon the filing of a petition seeking the
     same relief by the Authority.

     SEC. ___6. STRIKES AND LOCKOUTS PROHIBITED.

       (a) Prohibition.--An employer, public safety officer, or
     labor organization may not engage in a lockout, sickout, work
     slowdown, strike, or any other action that will measurably
     disrupt the delivery of emergency services and is designed to
     compel an employer, public safety officer, or labor
     organization to agree to the terms of a proposed contract.
       (b) Mandatory Terms and Conditions.--It shall not be a
     violation of subsection (a) for a public safety officer or
     labor organization to refuse to carry out services that are
     not required under the mandatory terms and conditions of
     employment applicable to the public safety officer or labor
     organization.

     SEC. ___7. EXISTING COLLECTIVE BARGAINING UNITS AND
                   AGREEMENTS.

       A certification, recognition, election-held, collective
     bargaining agreement or memorandum of understanding which has
     been issued, approved, or ratified by any public employee
     relations board or commission or by any State or political
     subdivision or its agents (management officials) and is in
     effect on the day before the date of enactment of this
     subtitle shall not be invalidated by the enactment of this
     subtitle.

     SEC. ___8. CONSTRUCTION AND COMPLIANCE.

       (a) Construction.--Nothing in this subtitle shall be
     construed--
       (1) to preempt or limit the remedies, rights, and
     procedures of any law of any State or political subdivision
     of any State or jurisdiction that provides greater or
     comparable rights and responsibilities than the rights and
     responsibilities described in section ___4(b);
       (2) to prevent a State from enforcing a right-to-work law
     that prohibits employers

[[Page S14322]]

     and labor organizations from negotiating provisions in a
     labor agreement that require union membership or payment of
     union fees as a condition of employment;
       (3) to preempt or limit any State law in effect on the date
     of enactment of this subtitle that provides for the rights
     and responsibilities described in section ___4(b) solely
     because such State law permits an employee to appear on the
     employee's own behalf with respect to the employee's
     employment relations with the public safety agency involved;
       (4) to preempt or limit any State law in effect on the date
     of enactment of this subtitle that provides for the rights
     and responsibilities described in section ___4(b) solely
     because such State law excludes from its coverage employees
     of a State militia or national guard;
       (5) to permit parties in States subject to the regulations
     and procedures described in section ___5 to negotiate
     provisions that would prohibit an employee from engaging in
     part-time employment or volunteer activities during off-duty
     hours;
       (6) to prohibit a State from exempting from coverage under
     this subtitle a political subdivision of the State that has a
     population of less than 5,000 or that employs less than 25
     full-time employees; or
       (7) to preempt or limit the laws or ordinances of any State
     or political subdivision of a State that provide for the
     rights and responsibilities described in section ___4(b)
     solely because such law does not require bargaining with
     respect to pension, retirement, or health benefits.

     For purposes of paragraph (6), the term ``employee'' includes
     each and every individual employed by the political
     subdivision except any individual elected by popular vote or
     appointed to serve on a board or commission.
       (b) Compliance.--
       (1) Actions of states.--Nothing in this subtitle or the
     regulations promulgated under this subtitle shall be
     construed to require a State to rescind or preempt the laws
     or ordinances of any of its political subdivisions if such
     laws provide rights and responsibilities for public safety
     officers that are comparable to or greater than the rights
     and responsibilities described in section ___4(b).
       (2) Actions of the authority.--Nothing in this subtitle or
     the regulations promulgated under this subtitle shall be
     construed to preempt--
       (A) the laws or ordinances of any State or political
     subdivision of a State, if such laws provide collective
     bargaining rights for public safety officers that are
     comparable to or greater than the rights enumerated in
     section ___4(b);
       (B) the laws or ordinance of any State or political
     subdivision of a State that provide for the rights and
     responsibilities described in section ___4(b) with respect to
     certain categories of public safety officers covered by this
     subtitle solely because such rights and responsibilities have
     not been extended to other categories of public safety
     officers covered by this subtitle; or
       (C) the laws or ordinances of any State or political
     subdivision of a State that provides for the rights and
     responsibilities described in section ___4(b), solely because
     such laws or ordinances provide that a contract or memorandum
     of understanding between a public safety employer and a labor
     organization must be presented to a legislative body as part
     of the process for approving such contract or memorandum of
     understanding.
       (3) Limited enforcement power.--In the case of a law
     described in paragraph (2)(B), the Authority shall only
     exercise the powers provided in section ___5 with respect to
     those categories of public safety officers who have not been
     afforded the rights and responsibilities described in section
     ___4(b).
       (4) Exclusive enforcement provision.--Notwithstanding any
     other provision of this subtitle, and in the absence of a
     waiver of a State's sovereign immunity, the Authority shall
     have the exclusive power to enforce the provisions of this
     subtitle with respect to employees of a State or political
     subdivision of a State.

     SEC. ___9. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be
     necessary to carry out the provisions of this subtitle.
                                 ______

  SA 3616. Mr. SALAZAR (for himself, Mr. Kerry, Ms. Stabenow, and Mr.
Schumer) submitted an amendment intended to be proposed to amendment SA
3500 proposed by Mr. Harkin (for himself, Mr. Chambliss, Mr. Baucus,
and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       Beginning on page 1472, line 1, strike all through page
     1480, line 3, and insert the following:

                    PART II--ALCOHOL AND OTHER FUELS

     SEC. 12311. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC
                   BIOFUEL 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 biofuel.--For purposes of this subsection,
     the term `cellulosic biofuel' means any alcohol, ether,
     ester, or hydrocarbon 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 biofuel''.
       (2) The heading of section 168(l) is amended by striking
     ``Cellulosic Biomass Ethanol'' and inserting ``Cellulosic
     Biofuel''.
       (3) The heading of paragraph (2) of section 168(l) is
     amended by striking ``cellulosic biomass ethanol'' and
     inserting ``cellulosic biofuel''.
       (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. 12312. CREDIT FOR PRODUCTION OF CELLULOSIC BIOFUEL.

       (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 biofuel producer credit.''.
       (b) Small Cellulosic Biofuel Producer Credit.--
       (1) In general.--Subsection (b) of section 40 is amended by
     adding at the end the following new paragraph:
       ``(6) Small cellulosic biofuel 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
     not more than 60,000,000 gallons of qualified cellulosic
     biofuel production.
       ``(B) Applicable amount.--For purposes of subparagraph (A),
     the applicable amount means the excess of--
       ``(i) $1.28, over
       ``(ii) the sum of--

       ``(I) the amount of the credit in effect for alcohol which
     is ethanol under subsection (b)(1) (without regard to
     subsection (b)(3)) at the time of the qualified cellulosic
     biofuel production, plus
       ``(II) the amount of the credit in effect under subsection
     (b)(4) at the time of such production.

       ``(C) Qualified cellulosic biofuel production.--For
     purposes of this section, the term `qualified cellulosic
     biofuel production' means any cellulosic biofuel which is
     produced by an eligible small cellulosic biofuel 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 cellulosic biofuel 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 biofuel at retail to
     another person and places such cellulosic biofuel 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) Qualified cellulosic biofuel mixture.--For purposes
     of this paragraph, the term `qualified cellulosic biofuel
     mixture' means a mixture of cellulosic biofuel and any
     petroleum fuel product which--
       ``(i) is sold by the person producing such mixture to any
     person for use as a fuel, or
       ``(ii) is used as a fuel by the person producing such
     mixture.
       ``(E) Additional distillation excluded.--The qualified
     cellulosic biofuel 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.
       ``(F) Application of paragraph.--This paragraph shall apply
     with respect to qualified cellulosic biofuel production after
     December 31, 2007, and before April 1, 2015.''.
       (2) Termination date not to apply.--Subsection (e) of
     section 40 (relating to termination) is amended--
       (A) by inserting ``or subsection (b)(6)(E)'' after ``by
     reason of paragraph (1)'' in paragraph (2), and
       (B) by adding at the end the following new paragraph:
       ``(3) Exception for small cellulosic biofuel 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 Biofuel Producer.--Section 40
     is amended by adding at the end the following new subsection:
       ``(i) Definitions and Special Rules for Small Cellulosic
     Biofuel Producer.--For purposes of this section--
       ``(1) In general.--The term `eligible small cellulosic
     biofuel producer' means a person, who at all times during the
     taxable year, has a productive capacity for cellulosic
     biofuel not in excess of 60,000,000 gallons.
       ``(2) Cellulosic biofuel.--
       ``(A) In general.--The term `cellulosic biofuel' 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.

[[Page S14323]]

       ``(3) Aggregation rule.--For purposes of the 60,000,000
     gallon limitation under paragraph (1) and subsection
     (b)(6)(A), 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
     biofuel 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) Cellulosic Biofuel 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 biofuel 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
     biofuel.''.
       (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) Biofuel Produced in the United States.--Section 40(d),
     as amended by this section, is amended by adding at the end
     the following new paragraph:
       ``(6) Special rule for small cellulosic biofuel
     producers.--No small cellulosic biofuel producer credit shall
     be determined under subsection (a) with respect to any
     biofuel unless such biofuel is produced in the United
     States.''.
       (f) Waiver of Credit Limit for Cellulosic Biofuel
     Production by Small Ethanol Producers.--Section 40(b)(4)(C)
     is amended by inserting ``(determined without regard to any
     qualified cellulosic biofuel production'' after ``15,000,000
     gallons''.
       (g) Effective Date.--The amendments made by this section
     shall apply to fuel produced after December 31, 2007.
                                 ______

  SA 3617. Mr. SESSIONS submitted an amendment intended to be proposed
by him to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

       On page 750, line 21, insert before the period at the end
     the following: ``, of which not less than $25,000,000 shall
     be for use at hospitals in rural areas with not more than 50
     acute beds''.
                                 ______

  SA 3618. Mr. BUNNING submitted an amendment intended to be proposed
by him to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

       Beginning on page 1363, strike line 7 and all that follows
     through page 1395, line 19.
       Beginning on page 1564, strike line 16 and all that follows
     through page 1565, line 6.
                                 ______

  SA 3619. Mr. DURBIN submitted an amendment intended to be proposed by
him to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

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

     SEC. 32__. IMPORTATION OF LIVE DOGS.

       (a) In General.--The Animal Welfare Act is amended by
     adding after section 17 (7 U.S.C. 2147) the following:

     ``SEC. 18. IMPORTATION OF LIVE DOGS.

       ``(a) Definitions.--In this section:
       ``(1) Importer.--The term `importer' means any person who,
     for purposes of resale, transports into the United States
     puppies from a foreign country.
       ``(2) Resale.--The term `resale' includes any transfer of
     ownership or control of an imported dog of less than 6 months
     of age to another person, for more than de minimis
     consideration.
       ``(b) Requirements.--
       ``(1) In general.--Except as provided in paragraph (2), no
     person shall import a dog into the United States for purposes
     of resale unless, as determined by the Secretary, the dog--
       ``(A) is in good health;
       ``(B) has received all necessary vaccinations; and
       ``(C) is at least 6 months of age, if imported for resale.
       ``(2) Exception.--The Secretary, by regulation, shall
     provide an exception to any requirement under paragraph (1)
     in any case in which a dog is imported for--
       ``(A) research purposes; or
       ``(B) veterinary treatment.
       ``(c) Implementation and Regulations.--The Secretary, the
     Secretary of Health and Human Services, the Secretary of
     Commerce, and the Secretary of Homeland Security shall
     promulgate such regulations as the Secretaries determine to
     be necessary to implement and enforce this section.
       ``(d) Enforcement.--An importer that fails to comply with
     this section shall--
       ``(1) be subject to penalties under section 19; and
       ``(2) provide for the care (including appropriate
     veterinary care), forfeiture, and adoption of each applicable
     dog, at the expense of the importer.''.
       (b) Effective Date.--The amendment made by subsection (a)
     takes effect on the date of enactment of this Act.
                                 ______

  SA 3620. Mr. LOTT submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       On page 1587, after line 18, add the following:

                  Subtitle G--Repeal of Individual AMT

     SEC. 12701. REPEAL OF INDIVIDUAL ALTERNATIVE MINIMUM TAX.

       (a) In General.--Section 55(a) (relating to alternative
     minimum tax imposed) is amended by adding at the end the
     following new flush sentence:

     ``For purposes of this title, the tentative minimum tax on
     any taxpayer other than a corporation for any taxable year
     beginning after December 31, 2006, shall be zero.''.
       (b) Modification of Limitation on Use of Credit for Prior
     Year Minimum Tax Liability.--Subsection (c) of section 53
     (relating to credit for prior year minimum tax liability) is
     amended to read as follows:
       ``(c) Limitation.--
       ``(1) In general.--Except as provided in paragraph (2), the
     credit allowable under subsection (a) for any taxable year
     shall not exceed the excess (if any) of--
       ``(A) the regular tax liability of the taxpayer for such
     taxable year reduced by the sum of the credits allowable
     under subparts A, B, D, E, and F of this part, over
       ``(B) the tentative minimum tax for the taxable year.
       ``(2) Taxable years beginning after 2006.--In the case of
     any taxable year beginning after 2006, the credit allowable
     under subsection (a) to a taxpayer other than a corporation
     for any taxable year shall not exceed 90 percent of the
     regular tax liability of the taxpayer for such taxable year
     reduced by the sum of the credits allowable under subparts A,
     B, D, E, and F of this part.''.
       (c) Effective Date.--The amendments made by this section
     shall apply to taxable years beginning after December 31,
     2006.

                     Subtitle H--One-Year Extenders

     SEC. 12801. RESEARCH CREDIT.

       (a) In General.--Subparagraph (B) of section 41(h)(1)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Conforming Amendment.--Subparagraph (D) of section
     45C(b)(1) (relating to qualified clinical testing expenses)
     is amended by striking ``December 31, 2007'' and inserting
     ``December 31, 2008''.
       (c) Effective Date.--The amendments made by this section
     shall apply to amounts paid or incurred after December 31,
     2007.

     SEC. 12802. INDIAN EMPLOYMENT CREDIT.

       (a) In General.--Subsection (f) of section 45A (relating to
     termination) is amended by striking ``December 31, 2007'' and
     inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12803. NEW MARKETS TAX CREDIT.

       Subparagraph (D) of section 45D(f)(1) (relating to national
     limitation on amount of investments designated) is amended by
     striking ``and 2008'' and inserting ``2008, and 2009''.

     SEC. 12804. RAILROAD TRACK MAINTENANCE.

       (a) In General.--Subsection (f) of section 45G (relating to
     application of section) is amended by striking ``January 1,
     2008'' and inserting ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to expenditures paid or incurred during taxable
     years beginning after December 31, 2007.

     SEC. 12805. MORTGAGE INSURANCE PREMIUMS TREATED AS INTEREST.

       (a) In General.--Subclause (I) of section 163(h)(3)(E)(iv)
     (relating to termination) is

[[Page S14324]]

     amended by striking ``December 31, 2007'' and inserting
     ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to amounts paid or accrued after December 31,
     2007.

     SEC. 12806. DEDUCTION FOR STATE AND LOCAL SALES TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is
     amended by striking ``January 1, 2008'' and inserting
     ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12807. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR
                   QUALIFIED LEASEHOLD IMPROVEMENTS AND QUALIFIED
                   RESTAURANT PROPERTY.

       (a) In General.--Clauses (iv) and (v) of section
     168(e)(3)(E) (relating to 15-year property) are each amended
     by striking ``January 1, 2008'' and inserting ``January 1,
     2009''.
       (b) Effective Date.--The amendments made by this section
     shall apply to property placed in service after December 31,
     2007.

     SEC. 12808. SEVEN-YEAR COST RECOVERY PERIOD FOR MOTORSPORTS
                   RACING TRACK FACILITY.

       (a) In General.--Subparagraph (D) of section 168(i)(15)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to property placed in service after December 31,
     2007.

     SEC. 12809. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON
                   INDIAN RESERVATION.

       (a) In General.--Paragraph (8) of section 168(j) (relating
     to termination) is amended by striking ``December 31, 2007''
     and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to property placed in service after December 31,
     2007.

     SEC. 12810. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

       (a) In General.--Subsection (h) of section 198 (relating to
     termination) is amended by striking ``December 31, 2007'' and
     inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to expenditures paid or incurred after December
     31, 2007.

     SEC. 12811. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME
                   ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES
                   IN PUERTO RICO.

       (a) In General.--Subparagraph (C) of section 199(d)(8)
     (relating to termination) is amended--
       (1) by striking ``first 2 taxable years'' and inserting
     ``first 3 taxable years'', and
       (2) by striking ``January 1, 2008'' and inserting ``January
     1, 2009''.
       (b) Effective Date.--The amendments made by this section
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12812. DEDUCTION OF QUALIFIED TUITION AND RELATED
                   EXPENSES.

       (a) In General.--Subsection (e) of section 222 (relating to
     termination) is amended by striking ``December 31, 2007'' and
     inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12813. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS
                   TO CONTROLLING EXEMPT ORGANIZATIONS.

       (a) In General.--Clause (iv) of section 512(b)(13)(E)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to payments received or accrued after December
     31, 2007.

     SEC. 12814. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED
                   INVESTMENT COMPANIES.

       (a) Interest-Related Dividends.--Subparagraph (C) of
     section 871(k)(1) (defining interest-related dividend) is
     amended by striking ``December 31, 2007'' and inserting
     ``December 31, 2008''.
       (b) Short-Term Capital Gain Dividends.--Subparagraph (C) of
     section 871(k)(2) (defining short-term capital gain dividend)
     is amended by striking ``December 31, 2007'' and inserting
     ``December 31, 2008''.
       (c) Effective Date.--The amendments made by this section
     shall apply to dividends with respect to taxable years of
     regulated investment companies beginning after December 31,
     2007.

     SEC. 12815. EXTENSION AND MODIFICATION OF CREDIT TO HOLDERS
                   OF QUALIFIED ZONE ACADEMY BONDS.

       (a) In General.--Subsection (e) of section 1397E (relating
     to limitation on amount of bonds designated) is amended by
     striking ``1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005,
     2006, and 2007'' and inserting ``each of calendar years 1998
     through 2008''.
       (b) Modification of Arbitrage Rules.--
       (1) In general.--Subsection (g) of section 1397E (relating
     to special rules relating to arbitrage) is amended to read as
     follows:
       ``(g) Special Rules Relating to Arbitrage.--
       ``(1) In general.--An issue shall be treated as meeting the
     requirements of this subsection if the issuer satisfies the
     requirements of section 148 with respect to the proceeds of
     the issue.
       ``(2) Special rule for investments during expenditure
     period.--An issue shall not be treated as failing to meet the
     requirements of paragraph (1) by reason of any investment of
     available project proceeds during the 5-year period described
     in subsection (f)(1)(A) (including any extension of such
     period under subsection (f)(2)).
       ``(3) Special rule for reserve funds.--An issue shall not
     be treated as failing to meet the requirements of paragraph
     (1) by reason of any fund which is expected to be used to
     repay such issue if--
       ``(A) such fund is funded at a rate not more rapid than
     equal annual installments,
       ``(B) such fund is funded in a manner that such fund will
     not exceed the amount necessary to repay the issue if
     invested at the maximum rate permitted under subparagraph
     (C), and
       ``(C) the yield on such fund is not greater than the
     discount rate determined under subsection (d)(3) with respect
     to the issue.''.
       (2) Application of available project proceeds to other
     requirements.--Subsections (d)(1)(A), (d)(2)(A), (f)(1)(A),
     (f)(1)(B), (f)(1)(C), and (f)(3) of section 1397E are each
     amended by striking ``proceeds'' and inserting ``available
     project proceeds''
       (3) Available project proceeds defined.--Subsection (i) of
     section 1397E (relating to definitions) is amended by adding
     at the end the following new paragraph:
       ``(4) Available project proceeds.--The term `available
     project proceeds' means--
       ``(A) the excess of--
       ``(i) the proceeds from the sale of an issue, over
       ``(ii) the issuance costs financed by the issue (to the
     extent that such costs do not exceed 2 percent of such
     proceeds), and
       ``(B) the proceeds from any investment of the excess
     described in subparagraph (A).''.
       (c) Effective Date.--
       (1) Extension.--The amendment made by subsection (a) shall
     apply to obligations issued after December 31, 2007.
       (2) Modification of arbitrage rules.--The amendments made
     by subsection (b) shall apply to obligations issued after the
     date of the enactment of this Act.

     SEC. 12816. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF
                   COLUMBIA.

       (a) Designation of Zone.--
       (1) In general.--Subsection (f) of section 1400 is amended
     by striking ``2007'' both places it appears and inserting
     ``2008''.
       (2) Effective date.--The amendments made by this subsection
     shall apply to periods beginning after December 31, 2007.
       (b) Tax-Exempt Economic Development Bonds.--
       (1) In general.--Subsection (b) of section 1400A is amended
     by striking ``2007'' and inserting ``2008''.
       (2) Effective date.--The amendment made by this subsection
     shall apply to bonds issued after December 31, 2007.
       (c) Zero Percent Capital Gains Rate.--
       (1) In general.--Subsection (b) of section 1400B is amended
     by striking ``2008'' each place it appears and inserting
     ``2009''.
       (2) Conforming amendments.--
       (A) Section 1400B(e)(2) is amended--
       (i) by striking ``2012'' and inserting ``2013'', and
       (ii) by striking ``2012'' in the heading thereof and
     inserting ``2013''.
       (B) Section 1400B(g)(2) is amended by striking ``2012'' and
     inserting ``2013''.
       (C) Section 1400F(d) is amended by striking ``2012'' and
     inserting ``2013''.
       (3) Effective dates.--
       (A) Extension.--The amendments made by paragraph (1) shall
     apply to acquisitions after December 31, 2007.
       (B) Conforming amendments.--The amendments made by
     paragraph (2) shall take effect on the date of the enactment
     of this Act.
       (d) First-Time Homebuyer Credit.--
       (1) In general.--Subsection (i) of section 1400C is amended
     by striking ``2008'' and inserting ``2009''.
       (2) Effective date.--The amendment made by this subsection
     shall apply to property purchased after December 31, 2007.

     SEC. 12817. DISCLOSURE FOR COMBINED EMPLOYMENT TAX REPORTING.

       (a) In General.--Subparagraph (B) of section 6103(d)(5)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to disclosures after December 31, 2007.

     SEC. 12818. DISCLOSURE OF RETURN INFORMATION TO APPRISE
                   APPROPRIATE OFFICIALS OF TERRORIST ACTIVITIES.

       (a) In General.--Clause (iv) of section 6103(i)(3)(C)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to disclosures after December 31, 2007.

     SEC. 12819. DISCLOSURE UPON REQUEST OF INFORMATION RELATING
                   TO TERRORIST ACTIVITIES.

       (a) In General.--Subparagraph (E) of section 6103(i)(7)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to disclosures after December 31, 2007.

     SEC. 12820. DISCLOSURE OF RETURN INFORMATION TO CARRY OUT
                   INCOME CONTINGENT REPAYMENT OF STUDENT LOANS.

       (a) In General.--Subparagraph (D) of section 6103(l)(13)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to requests made after December 31, 2007.

     SEC. 12821. AUTHORITY FOR UNDERCOVER OPERATIONS.

       (a) In General.--Paragraph (6) of section 7608(c) (relating
     to application of section) is

[[Page S14325]]

     amended by striking ``January 1, 2008'' each place it appears
     and inserting ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall take effect on January 1, 2008.

     SEC. 12822. INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAX
                   TO PUERTO RICO AND THE VIRGIN ISLANDS.

       (a) In General.--Paragraph (1) of section 7652(f) is
     amended by striking ``January 1, 2008'' and inserting
     ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to distilled spirits brought into the United
     States after December 31, 2007.

     SEC. 12823. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO
                   MENTAL HEALTH BENEFITS.

       (a) In General.--Paragraph (3) of section 9812(f) (relating
     to application of section) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to benefits for services furnished after December
     31, 2007.

     SEC. 12824. EXTENSION OF ECONOMIC DEVELOPMENT CREDIT FOR
                   AMERICAN SAMOA.

       (a) In General.--Subsection (d) of section 119 of division
     A of the Tax Relief and Health Care Act of 2006 is amended--
       (1) by striking ``first two taxable years'' and inserting
     ``first 3 taxable years'', and
       (2) by striking ``January 1, 2008'' and inserting ``January
     1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12825. QUALIFIED CONSERVATION CONTRIBUTIONS.

       (a) In General.--Clause (vi) of section 170(b)(1)(E)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to contributions made in taxable years beginning
     after December 31, 2007.

     SEC. 12826. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS
                   OF FOOD INVENTORY.

       (a) In General.--Clause (iv) of section 170(e)(3)(C)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to contributions made after December 31, 2007.

     SEC. 12827. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS
                   OF BOOK INVENTORY TO PUBLIC SCHOOLS.

       (a) In General.--Clause (iv) of section 170(e)(3)(D)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to contributions made after December 31, 2007.

     SEC. 12828. ENHANCED DEDUCTION FOR QUALIFIED COMPUTER
                   CONTRIBUTIONS.

       (a) In General.--Subparagraph (G) of section 170(e)(6)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to contributions made during taxable years
     beginning after December 31, 2007.

     SEC. 12829. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT
                   PLANS FOR CHARITABLE PURPOSES.

       (a) In General.--Subparagraph (F) of section 408(d)(8)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to distributions made in taxable years beginning
     after December 31, 2007.

     SEC. 12830. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS
                   MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.

       (a) In General.--The last sentence of section 1367(a)(2)
     (relating to decreases in basis) is amended by striking
     ``December 31, 2007'' and inserting ``December 31, 2008''.
       (b) Technical Amendment Related to Section 1203 of the
     Pension Protection Act of 2006.--Subsection (d) of section
     1366 is amended by adding at the end the following new
     paragraph:
       ``(4) Application of limitation on charitable
     contributions.--In the case of any charitable contribution of
     property to which the second sentence of section 1367(a)(2)
     applies, paragraph (1) shall not apply to the extent of the
     excess (if any) of--
       ``(A) the shareholder's pro rata share of such
     contribution, over
       ``(B) the shareholder's pro rata share of the adjusted
     basis of such property.''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the
     amendments made by this section shall apply to contributions
     made in taxable years beginning after December 31, 2007.
       (2) Technical amendment.--The amendment made by subsection
     (b)shall take effect as if included in the provision of the
     Pension Protection Act of 2006 to which it relates.

     SEC. 12831. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND
                   SECONDARY SCHOOL TEACHERS.

       (a) In General.--Subparagraph (D) of section 62(a)(2)
     (relating to certain expenses of elementary and secondary
     school teachers) is amended by striking ``or 2007'' and
     inserting ``2007, or 2008''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12832. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME
                   FOR PURPOSES OF EARNED INCOME TAX CREDIT.

       (a) In General.--Subclause (II) of section 32(c)(2)(B)(vi)
     (defining earned income) is amended by striking ``January 1,
     2008'' and inserting ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years ending after December 31, 2007.

     SEC. 12833. MODIFICATION OF MORTGAGE REVENUE BONDS FOR
                   VETERANS.

       (a) Qualified Mortgage Bonds Used To Finance Residences for
     Veterans Without Regard to First-Time Homebuyer
     Requirement.--Subparagraph (D) of section 143(d)(2) (relating
     to exceptions) is amended by striking ``January 1, 2008'' and
     inserting ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to bonds issued after December 31, 2007.

     SEC. 12834. DISTRIBUTIONS FROM RETIREMENT PLANS TO
                   INDIVIDUALS CALLED TO ACTIVE DUTY.

       (a) In General.--Clause (iv) of section 72(t)(2)(G) is
     amended by striking ``December 31, 2007'' and inserting
     ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to individuals ordered or called to active duty
     on or after December 31, 2007.

     SEC. 12835. STOCK IN RIC FOR PURPOSES OF DETERMINING ESTATES
                   OF NONRESIDENTS NOT CITIZENS.

       (a) In General.--Paragraph (3) of section 2105(d) (relating
     to stock in a RIC) is amended by striking ``December 31,
     2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to decedents dying after December 31, 2007.

     SEC. 12836. QUALIFIED INVESTMENT ENTITIES.

       (a) In General.--Clause (ii) of section 897(h)(4)(A)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall take effect on January 1, 2008.

     SEC. 12837. DISCLOSURE OF RETURN INFORMATION FOR CERTAIN
                   VETERANS PROGRAMS.

       (a) In General.--The last sentence of paragraph (7) of
     section 6103(l) is amended by striking ``September 30, 2008''
     and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall apply to requests made after September 30, 2008.
                                 ______

  SA 3621. Mr. COLEMAN submitted an amendment intended to be proposed
to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       On page 210, line 25, strike ``crop year'' and insert
     ``crop or fiscal year, as appropriate,''.
       On page 211, line 12, strike ``crop years'' and insert
     ``crop or fiscal years, as appropriate,''.
       On page 211, line 23, strike ``crop year'' and insert
     ``fiscal year''.
       On page 212, between lines 19 and 20, insert the following:
       ``(iv) A payment under the environmental quality incentives
     program established under chapter 4 of subtitle D of title
     XII.
       On page 212, line 23, insert ``(other than the
     environmental quality incentives program)'' before the
     semicolon at the end.
                                 ______

  SA 3622. Mr. SALAZAR (for himself and Mr. Allard) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

       At the end of subtitle C of title VIII, add the following:

     SEC. 8203. DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES
                   APPROPRIATIONS ACT, 2001.

       Section 331 of the Department of the Interior and Related
     Agencies Appropriations Act, 2001 (114 Stat. 996; 118 Stat.
     3102), is amended by striking subsection (e).
                                 ______

  SA 3623. Mrs. BOXER (for herself, Mr. Smith, Mrs. Feinstein, Mr.
Sessions, Mr. Nelson of Florida, Mr. Martinez, and Mr. Wyden) submitted
an amendment intended to be proposed to amendment SA 3500 proposed by
Mr. Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley)
to the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

       On page 471, strike line 22 and insert the following:
       ``(iv) Identification of water quality and water quantity
     priority areas.--

[[Page S14326]]

       ``(I) In general.--Subject to subclause (II), the Secretary
     shall identify areas in which protecting or improving water
     quality or water quantity is a priority.
       ``(II) Mandatory inclusions.--The Secretary shall include
     in any identification of areas under subclause (I)--

       ``(aa) the Chesapeake Bay;
       ``(bb) the Upper Mississippi River basin;
       ``(cc) the greater Everglades ecosystem;
       ``(dd) the Klamath River basin;
       ``(ee) the Sacramento/San Joaquin River watershed; and
       ``(ff) the Mobile River Basin.

       ``(III) Funding.--The Secretary shall reserve for use in
     areas identified under this clause not more than 50 percent
     of amounts made available for regional water enhancement
     activities under this paragraph.

       ``(v) Duration.--
                                 ______

  SA 3624. Mrs. BOXER (for herself and Mrs. Feinstein) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

       On page 408, strike line 17 and insert the following:
     through 2012.

     ``SEC. 1240L. AIR QUALITY IMPROVEMENT.

       ``(a) In General.--Under the environmental quality
     incentives program established under this chapter, the
     Secretary shall promote air quality by providing cost-share
     payments and incentive payments to individual producers for
     use in addressing air quality concerns associated with
     agriculture.
       ``(b) Eligible Practices, Cost-Share.--
       ``(1) Reduction of emissions of air pollutants and
     precursors of air pollutants.--In addition to practices
     eligible for cost-share payments under the environmental
     quality incentives program established under this chapter,
     the Secretary shall provide cost-share payments to producers
     under this section for mobile or stationary equipment
     (including engines) used in an agricultural operation that
     would reduce emissions and precursors of air pollutants.
       ``(2) Considerations.--In evaluating applications for cost-
     share assistance for equipment described in paragraph (1),
     the Secretary shall prioritize assistance for equipment
     that--
       ``(A) is the most cost-effective in addressing air quality
     concerns; and
       ``(B) would assist producers in meeting Federal, State, or
     local regulatory requirements relating to air quality.
       ``(c) Locations.--To receive a payment for a project under
     this section, a producer shall carry out the project in a
     county--
       ``(1) that is in nonattainment with respect to ambient air
     quality standards; or
       ``(2) in which there is air quality degradation, recognized
     by a State or local agency, to which agricultural emissions
     significantly contribute.
       ``(d) Priority.--The Secretary shall give priority to
     projects that--
       ``(1) involve multiple producers implementing eligible
     conservation activities in a coordinated manner to promote
     air quality; or
       ``(2) are designed to encourage broad adoption of
     innovative approaches, including approaches involving the use
     of innovative technologies and integrated pest management, on
     the condition that the technologies do not have the
     unintended consequence of compromising other environmental
     goals.''.
                                 ______

  SA 3625. Mr. PRYOR submitted an amendment intended to be proposed by
him to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ------. BROADBAND PILOT PROGRAM FOR RURAL, LOW-INCOME
                   HOUSEHOLDS.

       (a) Establishment.--The Secretary of Agriculture shall
     establish a pilot program, to be known as the ``Improving
     Broadband in Rural America for the Nation's Children'' or the
     ``iBRANCH program'', that will provide grants on a
     competitive basis to eligible entities for the purpose of
     assisting low-income student households in eligible rural
     communities overcome barriers related to the use of broadband
     services in the home, including barriers related to--
       (1) computer and broadband literacy;
       (2) computer and software ownership; and
       (3) access to affordable broadband service.
       (b) Grant Requirements.--To be eligible for a grant under
     this program, an eligible entity shall demonstrate to the
     satisfaction of the Secretary that it--
       (1) has the managerial and technical skills to carry out
     the project successfully;
       (2) will provide support to low income student households
     on a portable and competitively neutral basis;
       (3) will utilize an acceptable approach to preparing low-
     income students and households to improve the student
     educational experience with broadband and to providing
     Internet safety awareness; and
       (4) meets any other necessary or appropriate conditions,
     standards, or requirements imposed by the Secretary.
       (c) Maximum Amount.--The Secretary may not provide more
     than $1,000,000 in Federal assistance under the pilot program
     to any applicant per fiscal year.
       (d) Cost Sharing.--The Secretary may not provide more than
     50 percent of the cost, incurred during the period of the
     grant, of any project funded under the pilot program.
       (e) Distribution of Grants.--The Secretary shall seek to
     ensure a broad geographic distribution of project sites to
     the maximum extent practicable.
       (f) Administrative Costs.--The recipient of a grant awarded
     under this section may not use more than 5 percent of the
     grant amount to pay administrative costs associated with
     activities funded by the grant. The Secretary shall use no
     more than 5 percent of the amount available for grants under
     this Act in any fiscal year for administrative costs of the
     program.
       (g) FCC Assistance.--The Federal Communications Commission
     may provide such assistance in carrying out the provisions of
     this section as may be requested by the Secretary. The
     Secretary shall provide for close coordination with the
     Commission in the administration of the Secretary's functions
     under this section which are of interest to or affect the
     functions of the Commission.
       (h) Administrative Provisions.--
       (1) Annual summary and evaluation required.--The Secretary
     shall require that the recipient of a grant under this
     section submit a summary and evaluation of the results of the
     project funded by such a grant at least annually for each
     year in which funds are received under this section.
       (2) Books and records.--Each recipient of assistance under
     this section shall keep such records as may be reasonably
     necessary to enable the Secretary to carry out the
     Secretary's functions under this section, including records
     which fully disclose the amount and the disposition by such
     recipient of the proceeds of such assistance, the total cost
     of the project or undertaking in connection with which such
     assistance is given or used, the amount and nature of that
     portion of the cost of the project or undertaking supplied by
     other sources, and such other records as will facilitate an
     effective audit.
       (3) Audit and examination.--The Secretary and the
     Comptroller General of the United States, or any of their
     duly authorized representatives, shall have access for the
     purposes of audit and examination to any books, documents,
     papers, and records of the recipient that are pertinent to
     assistance received under this section.
       (i) Regulations.--The Secretary may make such rules and
     regulations as may be necessary to carry out this section,
     including regulations relating to the order of priority in
     approving applications for projects under this section or to
     determining the amounts of grants for such projects.
       (j) Definitions.--In this section:
       (1) Eligible entity.--The term `eligible entity' means a
     nonprofit organization that is designated by a State to work
     in partnership with State agencies, representatives of the
     eligible rural community, and other interested parties in
     administering grant funds.
       (2) Eligible rural community.--The term `eligible rural
     community' means any county (or other appropriate political
     subdivision where no counties exist) with a population of
     20,000 or less.
       (3) Low-income student household.--The term `low-income
     student household' means any residential household--
       (A) with a student enrolled in grades 6 through 10 during
     the first school year following the date of the grant award;
     and
       (B) that is eligible for the Federal free lunch program.
       (4) Nonprofit organization.--The term `nonprofit
     organization' means an organization--
       (A) described in section 501(c)(3) of the Internal Revenue
     Code of 1986 and exempt from tax under section 501(a) of such
     Code;
       (B) no part of the net earnings of which inures to the
     benefit of any member, founder, contributor, or individual;
       (C) that has an established competency and proven record of
     working with public and private sectors; and
       (D) that has a board of directors a majority of whom are
     not employed by a broadband service provider or any company
     in which a broadband service provider owns a controlling or
     attributable interest.
       (k) Authorization of Appropriations.--There are authorized
     to be appropriated to the Secretary $10,000,000 for each of
     the fiscal years 2008 through 2012 to carry out this section.
                                 ______

  SA 3626. Mrs. HUTCHISON submitted an amendment intended to be
proposed to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes, which was ordered to lie on the
table; as follows:

       On page 1362, between lines 19 and 20, insert the
     following:

     SEC. 11072. SOUTHWEST REGIONAL DAIRY, ENVIRONMENT, AND
                   PRIVATE LAND PROGRAM.

       (a) Definitions.--In this section:
       (1) Eligible institution of higher education.--The term
     ``eligible institution of higher education'' means an
     institution of higher education that--

[[Page S14327]]

       (A) is located in--
       (i) the State of Arizona;
       (ii) the State of Colorado;
       (iii) the State of New Mexico;
       (iv) the State of Oklahoma; and
       (v) the State of Texas;
       (B) has facilities that are necessary for the facilitation
     of research on issues relating to the dairy industry in a
     practical setting;
       (C) has a dairy research program and an institution for
     applied environmental research;
       (D) has a university laboratory that is--
       (i) located on the campus of the institution of higher
     education; and
       (ii) accredited by the National Environmental Laboratory
     Accreditation Council to ensure the quality of any proposed
     research activities;
       (E) has the capability to enter into a partnership with
     representatives of the dairy industry and other public and
     private entities and institutions of higher education;
       (F) has experience in conducting watershed modeling
     (including the conduct of cost-benefit analyses, policy
     applications, and long-term watershed monitoring); and
       (G) works with--
       (i) producer-run advocacy groups (including Industry-Led
     Solutions); and
       (ii) private land coalitions.
       (2) Program.--The term ``program'' means the Southwest
     regional dairy, environment, and private land program
     established under subsection (b).
       (b) Establishment.--
       (1) In general.--As soon as practicable after the date of
     enactment of this Act, the Secretary shall establish a
     Southwest regional dairy, environment, and private land
     program.
       (2) Required activities.--In carrying out the program, the
     Secretary shall--
       (A) identify challenges and develop solutions to enhance
     the economic and environmental sustainability, growth, and
     expansion of the dairy industry in the Southwest region of
     the United States;
       (B) research, develop, and implement programs--
       (i) to recover energy and other useful products from dairy
     waste;
       (ii) to identify best management practices; and
       (iii) to assist the dairy industry in ensuring that animal
     waste emissions and discharges of the dairy industry are
     maintained at levels below applicable regulatory standards;
       (C) offer technical assistance (including research
     activities conducted by a university laboratory that is
     accredited by the National Environmental Laboratory
     Accreditation Council), training, applied research, and
     watershed water quality programs monitoring to applicable
     entities;
       (D) develop--
       (i) watershed modeling through the development of
     innovative modeling tools and data mining to develop cost-
     efficient and environmentally effective programs in the dairy
     industry; and
       (ii) an international modeling application clearinghouse to
     coordinate watershed modeling tools in the United States and
     in other countries, to be carried out by the Secretary; and
       (E) collaborate with a private land coalition to use input
     gathered from landowners in the United States through a
     program of industry led solutions to work with the Federal
     Government (including Federal agencies) in the development of
     conservation, environmental credit trading, and watershed
     programs to help private landowners and agricultural
     producers meet applicable water quality standards.
       (c) Contracts.--
       (1) In general.--In carrying out the program, the Secretary
     shall offer to enter into contracts with eligible
     institutions of higher education.
       (2) Application.--
       (A) Submission of application.--To enter into a contract
     with the Secretary under paragraph (1), an eligible
     institution of higher education shall submit to the Secretary
     an application at such time, in such manner, and containing
     such information as the Secretary may require.
       (B) Guidelines.--As soon as practicable after the date of
     enactment of this Act, the Secretary shall promulgate
     guidelines describing each requirement of the Secretary with
     respect to the application requirements described in
     subparagraph (A).
       (d) Authorization of Appropriations.--There are authorized
     to be appropriated such sums as are necessary to carry out
     this section for each of fiscal years 2008 through 2012, to
     remain available until expended.
                                 ______

  SA 3627. Mrs. HUTCHINSON submitted an amendment intended to be
proposed to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       On page 920, between lines 5 and 6, insert the following:

     SEC. 70__. INDIRECT COST RECOVERY.

       Section 1473A of the National Agricultural Research,
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319a)
     is amended in the second sentence by striking ``not exceeding
     10 percent of the direct cost'' and inserting ``not exceeding
     the amount permitted under the Negotiated Indirect Cost
     Recovery Agreement established by the Office of Management
     and Budget Circular A-21''.
                                 ______

  SA 3628. Mrs. HUTCHISON submitted an amendment intended to be
proposed to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       On page 408, between lines 17 and 18, insert the following:

     SEC. 2362. RIO GRANDE BASIN MANAGEMENT PROJECT.

       The Food Security Act of 1985 is amended by inserting after
     section 1240K (as added by section 2361) the following:

     ``SEC. 1240L. RIO GRANDE BASIN MANAGEMENT PROJECT.

       ``(a) Definition of Rio Grande Basin.--In this section, the
     term `Rio Grande Basin' includes all tributaries, backwaters,
     and side channels (including watersheds) of the United States
     that drain into the Rio Grande River.
       ``(b) Establishment.--The Secretary, in conjunction with
     partnerships of institutions of higher education working with
     farmers, ranchers, and other rural landowners, shall
     establish a program under which the Secretary shall provide
     grants to the partnerships to benefit the Rio Grande Basin
     by--
       ``(1) restoring water flow and the riparian habitat;
       ``(2) improving usage;
       ``(3) addressing demand for drinking water;
       ``(4) providing technical assistance to agricultural and
     municipal water systems; and
       ``(5) reducing biological and chemical hazards through
     alternative treatment of water and wastewater.
       ``(c) Use of Funds.--
       ``(1) In general.--A grant provided under this section may
     be used by a partnership for the costs of carrying out an
     activity described in subsection (b), including the costs
     of--
       ``(A) direct labor;
       ``(B) appropriate travel;
       ``(C) equipment;
       ``(D) instrumentation;
       ``(E) analytical laboratory work;
       ``(F) subcontracting;
       ``(G) cooperative research agreements; and
       ``(H) similar related expenses and costs.
       ``(2) Limitation.--A grant provided under this section
     shall not be used to purchase or construct any building.
       ``(d) Reports.--A partnership that receives a grant under
     this subsection shall submit to the Secretary annual reports
     describing--
       ``(1) the expenses of the partnership during the preceding
     calendar year; and
       ``(2) such other financial information as the Secretary may
     require.
       ``(e) Funding.--There are authorized to be appropriated
     such sums as are necessary to carry out this section for each
     of fiscal years 2008 through 2012, to remain available until
     expended.''.
                                 ______

  SA 3629. Mrs. DOLE submitted an amendment intended to be proposed by
her to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. CREDIT FOR TRANSPORTATION OF FOOD FOR CHARITABLE
                   PURPOSES.

       (a) In General.--Subpart B of part IV of subchapter A of
     chapter 1, as amended by this Act, is amended by adding at
     the end the following new section:

     ``SEC. 30G. CREDIT FOR TRANSPORTATION OF FOOD FOR CHARITABLE
                   PURPOSES.

       ``(a) Allowance of Credit.--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 mile for
     which the taxpayer uses a qualified truck for a qualified
     charitable purpose during the taxable year.
       ``(b) Qualified Charitable Purpose.--For purposes of this
     section, the term `qualified charitable purpose' means the
     transportation of food in connection with the hunger relief
     efforts of an organization which is described in section
     501(c)(3) and is exempt from taxation under section 501(a)
     (other than a private foundation, as defined in section
     509(a), which is not an operating foundation, as defined in
     section 4942(j)(3)).
       ``(c) Qualified Truck.--For purposes of this section, the
     term `qualified truck' means a truck which--
       ``(1) has a capacity of not less than 1,760 cubic square
     feet,
       ``(2) is owned, leased, or operated by the taxpayer, and
       ``(3) is ordinarily used for hauling property in the course
     of a business.
       ``(d) Other Rules.--
       ``(1) Denial of double benefit.--No credit shall be allowed
     under this section with respect to any amount for which a
     deduction is allowed under any other provision of this
     chapter.
       ``(2) No credit where taxpayer is compensated.--No credit
     shall be allowed under this section if the taxpayer receives
     compensation in connection with the use of the

[[Page S14328]]

     qualified truck for the qualified charitable purpose.
       ``(3) Capacity requirement.--No credit shall be allowed
     under this section unless at least 50 percent of the hauling
     capacity of the qualified truck (measured in cubic square
     feet) is used for the qualified charitable purpose.''.
       (b) Conforming Amendment.--The table of sections for
     subpart B 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. 30G. Credit for transportation of food for charitable
              purposes.''.

       (c) Effective Date.--The amendments made by this section
     shall apply to taxable years ending after December 31, 2007.
       (d) Offset.--
       (1) In general.--Except as provided in paragraph (2) and
     notwithstanding any other provision of this Act or an
     amendment made by this Act, for the period beginning on
     October 1, 2007, and ending on September 30, 2011--
       (A) each amount provided to carry out a program under
     subtitle D of title I or an amendment made by that subtitle
     is reduced by an amount necessary to achieve a total
     reduction of $25,000,000; and
       (B) the Secretary shall adjust the amount of each payment,
     loan, gain, or other assistance provided under each program
     described in subparagraph (A) by such amount as is necessary
     to achieve the reduction required under that subparagraph, as
     determined by the Secretary.
       (2) Application.--This section does not apply to a payment,
     loan, gain, or other assistance provided under a contract
     entered into by the Secretary before the date of enactment of
     this Act.
                                 ______

  SA 3630. Mrs. DOLE submitted an amendment intended to be proposed by
her to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. CREDIT FOR TRANSPORTATION OF FOOD FOR CHARITABLE
                   PURPOSES.

       (a) In General.--Subpart B of part IV of subchapter A of
     chapter 1, as amended by this Act, is amended by adding at
     the end the following new section:

     ``SEC. 30G. CREDIT FOR TRANSPORTATION OF FOOD FOR CHARITABLE
                   PURPOSES.

       ``(a) Allowance of Credit.--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 mile for
     which the taxpayer uses a qualified truck for a qualified
     charitable purpose during the taxable year.
       ``(b) Qualified Charitable Purpose.--For purposes of this
     section, the term `qualified charitable purpose' means the
     transportation of food in connection with the hunger relief
     efforts of an organization which is described in section
     501(c)(3) and is exempt from taxation under section 501(a)
     (other than a private foundation, as defined in section
     509(a), which is not an operating foundation, as defined in
     section 4942(j)(3)).
       ``(c) Qualified Truck.--For purposes of this section, the
     term `qualified truck' means a truck which--
       ``(1) has a capacity of not less than 1,760 cubic square
     feet,
       ``(2) is owned, leased, or operated by the taxpayer, and
       ``(3) is ordinarily used for hauling property in the course
     of a business.
       ``(d) Other Rules.--
       ``(1) Denial of double benefit.--No credit shall be allowed
     under this section with respect to any amount for which a
     deduction is allowed under any other provision of this
     chapter.
       ``(2) No credit where taxpayer is compensated.--No credit
     shall be allowed under this section if the taxpayer receives
     compensation in connection with the use of the qualified
     truck for the qualified charitable purpose.
       ``(3) Capacity requirement.--No credit shall be allowed
     under this section unless at least 50 percent of the hauling
     capacity of the qualified truck (measured in cubic square
     feet) is used for the qualified charitable purpose.''.
       (b) Conforming Amendment.--The table of sections for
     subpart B 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. 30G. Credit for transportation of food for charitable
              purposes.''.

       (c) Effective Date.--The amendments made by this section
     shall apply to taxable years ending after December 31, 2007.
                                 ______

  SA 3631. Mr. GRASSLEY (for himself and Mr. Kohl) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes, which was
ordered to lie on the table; as follows:

       Strike section 10201 and insert the following:

     SEC. 10201. SPECIAL COUNSEL FOR AGRICULTURAL COMPETITION.

       (a) Definitions.--In this section:
       (1) Agricultural commodity.--The term ``agricultural
     commodity''--
       (A) has the meaning given that term in section 102 of the
     Agricultural Trade Act of 1978 (7 U.S.C. 5602); and
       (B) does not include biofuels.
       (2) Agricultural cooperative.--The term ``agricultural
     cooperative'' means an association of persons that meets the
     requirements of the Capper-Volstead Act (7 U.S.C. 291 et
     seq.).
       (3) Agricultural industry.--The term ``agricultural
     industry''--
       (A) means any dealer, processor, commission merchant, or
     broker involved in the buying or selling of agricultural
     commodities; and
       (B) does not include sale or marketing at the retail level.
       (4) Antitrust laws.--The term ``antitrust laws'' has the
     meaning given that term in the first section of the Clayton
     Act (15 U.S.C. 12).
       (5) Assistant attorney general.--The term ``Assistant
     Attorney General'' means the Assistant Attorney General in
     charge of the Antitrust Division of the Department of
     Justice.
       (6) Biofuel.--The term ``biofuel'' has the meaning given
     that term in section 9001 of the Farm Security and Rural
     Investment Act of 2002, as amended by section 9001 of this
     Act.
       (7) Broker.--The term ``broker'' means any person
     (excluding an agricultural cooperative) engaged in the
     business of negotiating sales and purchases of any
     agricultural commodity in commerce for or on behalf of the
     vendor or the purchaser.
       (8) Chairman.--The term ``Chairman'' means the Chairman of
     the Federal Trade Commission.
       (9) Commission merchant.--The term ``commission merchant''
     means any person (excluding an agricultural cooperative)
     engaged in the business of receiving in commerce any
     agricultural commodity for sale, on commission, or for or on
     behalf of another.
       (10) Dealer.--The term ``dealer'' means any person
     (excluding an agricultural cooperative) engaged in the
     business of buying, selling, or marketing agricultural
     commodities in commerce, except that no person shall be
     considered a dealer with respect to sales or marketing of any
     agricultural commodity produced by that person.
       (11) Processor.--The term ``processor'' means any person
     (excluding an agricultural cooperative) engaged in the
     business of handling, preparing, or manufacturing (including
     slaughtering) an agricultural commodity, or the products of
     such agricultural commodity, for sale or marketing in
     commerce for human consumption (excluding sale or marketing
     at the retail level).
       (12) Special counsel.--The term ``Special Counsel'' means
     the Special Counsel for Agricultural Competition of the
     Department of Agriculture established under section 11 of the
     Packers and Stockyards Act, 1921, as added by this Act.
       (13) Task force.--The term ``Task Force'' means the
     Agriculture Competition Task Force established under
     subsection (c).
       (b) Deputy Assistant Attorney General for Agricultural
     Antitrust Matters.--There is in the Antitrust Division of the
     Department of Justice a Deputy Assistant Attorney General for
     Agricultural Antitrust Matters, who shall--
       (1) be responsible for oversight and coordination of
     antitrust and related matters which affect agriculture,
     directly or indirectly; and
       (2) work in coordination with the Task Force and the
     Department of Agriculture on all agricultural competition
     matters.
       (c) Agriculture Competition Task Force.--
       (1) Establishment.--There is established, under the
     authority of the Attorney General, the Agriculture
     Competition Task Force, to examine problems in agricultural
     competition.
       (2) Membership.--The Task Force shall consist of--
       (A) the Deputy Assistant Attorney General for Agricultural
     Antitrust Matters, who shall serve as chairperson of the Task
     Force;
       (B) the Special Counsel;
       (C) a representative from the Federal Trade Commission;
       (D) a representative from the Department of Agriculture,
     Office of Packers and Stockyards;
       (E) 1 representative selected jointly by the attorneys
     general of States desiring to participate in the Task Force;
       (F) 1 representative selected jointly by the heads of the
     departments of agriculture (or similar such agency) of States
     desiring to participate in the Task Force;
       (G) 8 individuals who represent the interests of small
     family farmers, ranchers, independent producers, packers,
     processors, and other components of the agricultural
     industry--
       (i) 2 of whom shall be selected by the Majority Leader of
     the Senate;
       (ii) 2 of whom shall be selected by the Minority Leader of
     the Senate;
       (iii) 2 of whom shall be selected by the Speaker of the
     House of Representatives; and
       (iv) 2 of whom shall be selected by the Minority Leader of
     the House of Representatives; and
       (H) 4 academics or other independent experts working in the
     field of agriculture, agricultural law, antitrust law, or
     economics--

[[Page S14329]]

       (i) 1 of whom shall be selected by the Majority Leader of
     the Senate;
       (ii) 1 of whom shall be selected by the Minority Leader of
     the Senate;
       (iii) 1 of whom shall be selected by the Speaker of the
     House of Representatives; and
       (iv) 1 of whom shall be selected by the Minority Leader of
     the House of Representatives.
       (3) Duties.--The Task Force shall--
       (A) study problems in competition in the agricultural
     industry;
       (B) define and focus the national public interest in
     preserving an independent family farm and ranch sector;
       (C) coordinate Federal and State activities to address
     unfair and deceptive practices and concentration in the
     agricultural industry;
       (D) work with representatives from agriculture and rural
     communities to identify abusive practices in the agricultural
     industry;
       (E) submit to Congress such reports as the Task Force
     determines appropriate on the state of family farmers and
     ranchers, and the impact of agricultural concentration and
     unfair business practices on rural communities in the United
     States; and
       (F) make such recommendations to Congress as the Task Force
     determines appropriate on agricultural competition issues,
     which shall include any additional or dissenting views of the
     members of the Task Force.
       (4) Working group.--
       (A) In general.--The Task Force shall establish a working
     group on buyer power to--
       (i) study the effects of concentration, monopsony, and
     oligopsony in agriculture, make recommendations to the
     Assistant Attorney General and the Chairman, and assist the
     Assistant Attorney General and the Chairman in drafting
     agricultural guidelines under subsection (e)(2); and
       (ii) select certain agricultural mergers and acquisitions
     that were consummated during the 10-year period ending on the
     date of enactment of this Act, review the effects of such
     mergers and acquisitions on competition in agricultural
     commodities markets, and make recommendations to the
     Assistant Attorney General, the Chairman, and the Secretary.
       (B) Members.--The working group shall include any member of
     the Task Force selected under paragraph (2)(H).
       (5) Meetings.--
       (A) First meeting.--The Task Force shall hold its initial
     meeting not later than the later of--
       (i) 90 days after the date of enactment of this Act; and
       (ii) 30 days after the date of enactment of an Act making
     appropriations to carry out this subsection.
       (B) Minimum number.--The Task Force shall meet not less
     than once each year, at the call of the chairperson.
       (6) Compensation.--
       (A) In general.--The members of the Task Force shall serve
     without compensation.
       (B) Travel expenses.--Members of the Task Force shall
     receive travel expenses, including per diem in lieu of
     subsistence, in accordance with subchapter I of chapter 57 of
     title 5, United States Code.
       (7) Staff of task force; experts and consultants.--
       (A) Staff.--
       (i) Appointment.--The chairperson of the Task Force may,
     without regard to the provisions of chapter 51 of title 5,
     United States Code (relating to appointments in the
     competitive service), appoint and terminate an executive
     director and such other staff as are necessary to enable the
     Task Force to perform its duties. The appointment of an
     executive director shall be subject to approval by the Task
     Force.
       (ii) Compensation.--The chairperson of the Task Force may
     fix the compensation of the executive director and other
     staff 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), except that the rate of pay for the executive
     director and other staff may not exceed the rate of basic pay
     payable for level V of the Executive Schedule under section
     5315 of title 5, United States Code, as in effect from time
     to time.
       (B) Experts and consultants.--The Task Force may procure
     temporary and intermittent services of experts and
     consultants in accordance with section 3109(b) of title 5,
     United States Code.
       (8) Powers of the task force.--
       (A) Hearings and meetings.--The Task Force, or a member of
     the Task Force if authorized by the Task Force, may hold such
     hearings, sit and act at such time and places, take such
     testimony, receive such evidence, and administer such oaths
     or affirmations as the Task Force considers to be
     appropriate.
       (B) Official data.--The Task Force may obtain directly from
     any executive agency (as defined in section 105 of title 5,
     United States Code) or court information necessary to enable
     it to carry out its duties under this subsection. On the
     request of the chairperson of the Task Force, and consistent
     with any other law, the head of an executive agency or of a
     Federal court shall provide such information to the Task
     Force.
       (C) Facilities and support services.--The Administrator of
     General Services shall provide to the Task Force on a
     reimbursable basis such facilities and support services as
     the Task Force may request. On request of the Task Force, the
     head of an executive agency may make any of the facilities or
     services of such agency available to the Task Force, on a
     reimbursable or nonreimbursable basis, to assist the Task
     Force in carrying out its duties under this subsection.
       (D) Expenditures and contracts.--The Task Force or, on
     authorization of the Task Force, a member of the Task Force
     may make expenditures and enter into contracts for the
     procurement of such supplies, services, and property as the
     Task Force or such member considers to be appropriate for the
     purpose of carrying out the duties of the Task Force. Such
     expenditures and contracts may be made only to such extent or
     in such amounts as are provided in advance in appropriation
     Acts.
       (E) Mails.--The Task Force may use the United States mails
     in the same manner and under the same conditions as other
     departments and agencies of the United States.
       (F) Gifts, bequests, and devises.--The Task Force may
     accept, use, and dispose of gifts, bequests, or devises of
     services or property, both real and personal, for the purpose
     of aiding or facilitating the work of the Task Force. Gifts,
     bequests, or devises of money and proceeds from sales of
     other property received as gifts, bequests, or devises shall
     be deposited in the Treasury and shall be available for
     disbursement upon order of the Task Force.
       (9) Authorization of appropriations.--There are authorized
     to be appropriated to carry out this subsection $1,000,000
     for each of fiscal years 2008, 2009, and 2010.
       (d) Authorization for Additional Staff and Funding.--There
     are authorized to be appropriated such sums as are necessary
     to hire additional employees (including agricultural law and
     economics experts) for the Transportation, Energy, and
     Agriculture Section of the Antitrust Division of the
     Department of Justice, to enhance the review of agricultural
     transactions and monitor, investigate, and prosecute unfair
     and deceptive practices in the agricultural industry.
       (e) Ensuring Full and Free Competition in Agriculture.--
       (1) Burden of Proof.--Section 7 of the Clayton Act (15
     U.S.C. 18) is amended by adding at the end the following:
       ``In this paragraph, the term `covered civil action' means
     a civil action brought against any person for violating this
     section in which the plaintiff alleges that the effect of a
     merger, acquisition, or other transaction affecting commerce
     may be to substantially lessen competition, or to tend to
     create a monopoly, in the business of procuring agricultural
     products from, or selling products to, agricultural producers
     in one or more geographic areas, and establishes that a
     merger, acquisition, or other transaction affecting commerce
     is between or involves persons competing in the business of
     procuring agricultural products from, or selling products to,
     agricultural producers. In any covered civil action--
       ``(A) if the plaintiff is the Federal Government or a State
     government, the burden of proof shall be on the defendant or
     defendants to establish by a preponderance of the evidence
     that the merger, acquisition, or transaction at issue will
     not--
       ``(i) substantially lessen competition; or
       ``(ii) tend to create a monopoly in 1 or more geographic
     markets; and
       ``(B) for any other plaintiff, if the plaintiff
     demonstrates that the parties to the merger, acquisition, or
     other transaction have a combined market share of not less
     than 20 percent in any relevant market, the burden of proof
     shall be on the defendant or defendants to establish by a
     preponderance of the evidence that the merger, acquisition,
     or transaction at issue will not--
       ``(i) substantially lessen competition; or
       ``(ii) tend to create a monopoly in 1 or more geographic
     markets.''.
       (2) Agricultural Guidelines.--
       (A) Findings.--Congress finds the following:
       (i) The effective enforcement of the antitrust laws in
     agriculture requires that the antitrust enforcement agencies
     have guidelines with respect to mergers and other
     anticompetitive conduct that are properly adapted to the
     special circumstances of agricultural commodity markets.
       (ii) There has been a substantial increase in concentration
     in the markets in which agricultural commodities are sold,
     with the result that buyers of agricultural commodities often
     possess regional dominance in the form of oligopsony or
     monopsony relative to sellers of such commodities. A
     substantial part of this increase in market concentration is
     the direct result of mergers and acquisitions that the
     antitrust enforcement agencies did not challenge, in large
     part because of the lack of appropriate guidelines
     identifying particular structural characteristics in the
     agricultural industry and the adverse competitive effects
     that such acquisitions and mergers would create.
       (iii) The cost of transportation, impact on quality, and
     delay in sales of agricultural commodities if they are to be
     transported to more distant buyers result in narrow
     geographic markets with respect to buyer power.
       (iv) Buyers have no economic incentive to bid up the price
     of agricultural commodities in the absence of effective
     competition. Further, the nature of buying makes it feasible
     for larger numbers of buyers to engage in tacit or overt
     collusion to restrain price competition.
       (v) Buyers with oligopsonistic or monopsonistic power have
     incentives to engage in unfair, exploitive, discriminatory,

[[Page S14330]]

     and exclusionary acts that cause producers of agricultural
     commodities to receive less than a competitive price for
     their goods, transfer economic risks to sellers without
     reasonable compensation, and exclude sellers from access to
     the market.
       (vi) Markets for agricultural commodities often involve
     contexts in which many producers have relatively limited
     information and no bargaining power with respect to the sale
     of their commodities. These conditions invite buyers with
     significant oligopsonistic or monopsonistic power to exercise
     that power in ways that involve discrimination, exploitation,
     and undue differentiation among sellers.
       (vii) Some Federal courts have incorrectly required a
     plaintiff to show harm to competition generally, in addition
     to harm to the producer of agricultural commodities when
     making a determination that an unfair, unjustly
     discriminatory, deceptive, or preferential act exists. Those
     same courts have also incorrectly held that it is a complete
     defense if a defendant can show any nonharmful justification
     for an act or practice, even though such conduct was not
     essential to the business activities of the defendant or
     there were less harmful ways to achieve a reasonably
     comparable result with respect to the legitimate and
     necessary interests of the defendant.
       (B) Issuance of guidelines.--The Assistant Attorney General
     and the Chairman, in consultation with the Special Counsel,
     shall issue agricultural guidelines informed and guided by
     the findings under subparagraph (A) that--
       (i) facilitate a fair, open, accessible, transparent, and
     efficient market system for agricultural products;
       (ii) reflect the national public interest in preserving a
     substantial and diverse family farm and ranch sector;
       (iii) recognize that increasing competition in the purchase
     of agricultural products by highly concentrated firms from a
     sector in perfect competition is entirely consistent with the
     objective of the antitrust laws to protect consumers and
     enhance consumer benefits from competition; and
       (iv) prevent any merger or acquisition in the agricultural
     industry, if the effect of that merger or acquisition may be
     to substantially lessen competition or tend to create a
     monopoly.
       (C) Contents.--The agricultural guidelines issued under
     subparagraph (B) shall consist of merger guidelines relating
     to existing and potential competition and vertical
     integration that--
       (i) establish appropriate methodologies for determining the
     geographic and product markets for mergers affecting
     agricultural commodity markets;
       (ii) establish thresholds of increased concentration that
     raise a presumption that the merger will have an adverse
     effect on competition in the affected agricultural
     commodities markets;
       (iii) identify potential adverse competitive effects of
     mergers in agricultural commodities markets in a nonexclusive
     manner; and
       (iv) identify the factors that would permit an enforcement
     agency to determine when a merger in the agricultural
     commodities market might avoid liability because it is not
     likely to have an adverse effect on competition.
       (3) Agriculture Competition Task Force Working Group on
     Buying Power.--
       (A) In general.--In issuing agricultural guidelines under
     this subsection, the Chairman and the Assistant Attorney
     General shall consult with the working group on buyer power
     of the Task Force established under subsection (c)(4) and may
     incorporate and implement the recommendations of that working
     group.
       (B) Explanation.--If the Chairman and the Assistant
     Attorney General do not incorporate any recommendation of the
     working group on buyer power of the Task Force established
     under subsection (c)(4) in the agricultural guidelines issued
     under this subsection, the Chairman and the Assistant
     Attorney General shall submit to Congress a report regarding
     the reasons for not adopting that recommendation.
       (4) Completion.--Not later than 2 years after the date of
     enactment of this Act, the Chairman and the Assistant
     Attorney General shall--
       (A) issue agricultural guidelines under this subsection;
     and
       (B) submit to Congress the agricultural guidelines issued
     under this subsection.
       (5) Report.--Not later than 30 months after the date of
     enactment of this Act, the Chairman and the Assistant
     Attorney General shall jointly submit a report to the
     Committee on the Judiciary of the Senate and the Committee on
     the Judiciary of the House of Representatives regarding the
     issuing of agricultural guidelines under this subsection.
       (f) Post-Merger Review of Agricultural Transactions.--
       (1) In general.--Not later than 5 years after the date of a
     covered merger or acquisition, the Assistant Attorney General
     or the Chairman, as the case may be, shall conduct a post-
     merger review to determine whether the effect of that covered
     merger or acquisition tended to substantially reduce
     competition in the agricultural industry.
       (2) Sharing of results.--
       (A) In general.--The Assistant Attorney General and the
     Chairman shall each submit to Congress an annual report
     regarding the results of any post-merger review under
     paragraph (1), for its consideration in examining problems in
     agricultural competition.
       (B) Protection of information.--The Assistant Attorney
     General or the Chairman, as the case may be, shall ensure
     that confidential or proprietary information is adequately
     protected in submitting each report required under
     subparagraph (A).
       (3) Definition.--In this subsection, the term ``covered
     merger or acquisition'' means a merger or acquisition--
       (A) in the agricultural industry;
       (B) that is subject to the notification requirements under
     section 7A of the Clayton Act (15 U.S.C. 18a);
       (C) for which the Assistant Attorney General or the
     Chairman, as the case may be, required the submission of
     additional information or documentary material under section
     7A(e)(1)(A) of the Clayton Act (15 U.S.C. 18a(e)(1)(A)); and
       (D) for which, after review under that section, the
     Assistant Attorney General or the Chairman, as the case may
     be--
       (i) did not institute a proceeding or action under the
     antitrust laws; or
       (ii) instituted a proceeding or action under the antitrust
     laws that was resolved through a settlement agreement or
     consent decree.
       (g) Special Counsel for Agricultural Competition.--
       (1) In general.--The Packers and Stockyards Act, 1921 (7
     U.S.C. 181 et seq.) is amended--
       (A) by striking the title I heading and all that follows
     through ``This Act'' and inserting the following:

                     ``TITLE I--GENERAL PROVISIONS

                       ``Subtitle A--Definitions

     ``SEC. 1. SHORT TITLE.

       ``This Act''; and
       (B) by inserting after section 2 (7 U.S.C. 183) the
     following:

       ``Subtitle B--Special Counsel for Agricultural Competition

     ``SEC. 11. SPECIAL COUNSEL FOR AGRICULTURAL COMPETITION.

       ``(a) Establishment.--
       ``(1) In general.--There is established within the
     Department of Agriculture an office to be known as the
     `Office of Special Counsel for Agricultural Competition'
     (referred to in this section as the `Office').
       ``(2) Duties.--The Office shall--
       ``(A) have responsibility for all duties and functions of
     the Packers and Stockyards programs of the Department of
     Agriculture;
       ``(B) investigate and prosecute violations of this Act and
     the Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et
     seq.);
       ``(C) analyze mergers within the food and agricultural
     sectors, in consultation with the Chief Economist of the
     Department of Agriculture, the Assistant Attorney General in
     charge of the Antitrust Division of the Department of
     Justice, and the Chairman of the Federal Trade Commission, as
     required under section 10201(h) of the Food and Energy
     Security Act of 2007;
       ``(D) serve as a liaison between, and act in consultation
     with, the Department of Agriculture, the Department of
     Justice, and the Federal Trade Commission with respect to
     competition and trade practices in the food and agricultural
     sector; and
       ``(E) maintain sufficient employees (including antitrust
     and litigation attorneys, economists, investigators, and
     other professionals with the appropriate expertise) to
     appropriately carry out the responsibilities of the Office.
       ``(b) Special Counsel for Agricultural Competition.--
       ``(1) In general.--The Office shall be headed by the
     Special Counsel for Agricultural Competition (referred to in
     this section as the `Special Counsel'), who shall be
     appointed by the President, by and with the advice and
     consent of the Senate.
       ``(2) Independence of special authority.--
       ``(A) In general.--The Special Counsel shall report to and
     be under the general supervision of the Secretary.
       ``(B) Direction, control, and support.--The Special Counsel
     shall be free from the direction and control of any person in
     the Department of Agriculture other than the Secretary.
       ``(C) Prohibition on delegation.--The Secretary may not
     delegate any duty described in subsection (a)(2) to any other
     officer or employee of the Department other than the Special
     Counsel.
       ``(D) Reporting requirement.--
       ``(i) In general.--Twice each year, the Special Counsel
     shall submit to the Committee on Agriculture of the House of
     Representatives and the Committee on Agriculture, Nutrition,
     and Forestry of the Senate a report that shall include, for
     the relevant reporting period, a description of--

       ``(I) the number of complaints that the Special Counsel has
     received and closed;
       ``(II)(aa) the number of investigations and civil and
     administrative actions that the Special Counsel has
     initiated, carried out, and completed, including the number
     of notices given to regulated entities for violations of this
     Act or the Agricultural Fair Practices Act of 1967 (7 U.S.C.
     2301 et seq.);
       ``(bb) the number and types of decisions agreed to; and
       ``(cc) the number of stipulation agreements; and
       ``(III) the number of investigations and civil and
     administrative actions that the Secretary objected to or
     prohibited from being carried out, and the stated purpose of
     the Secretary for each objection or prohibition.

[[Page S14331]]

       ``(ii) Requirement.--The basis for each complaint,
     investigation, or civil or administrative action described in
     a report under clause (i) shall--

       ``(I) be organized by species; and
       ``(II) indicate if the complaint, investigation, or civil
     or administration action was for anti-competitive, unfair, or
     deceptive practices under this Act or was a violation of the
     Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et
     seq.).

       ``(E) Removal.--
       ``(i) In general.--The Special Counsel may be removed from
     office by the President.
       ``(ii) Communication.--The President shall communicate the
     reasons for any such removal to both Houses of Congress.
       ``(3) Prosecutorial authority.--Subject to paragraph (4),
     the Special Counsel may commence, defend, or intervene in,
     and supervise the litigation of, any civil or administrative
     action authorized under this Act or the Agricultural Fair
     Practices Act of 1967 (7 U.S.C. 2301 et seq.).
       ``(4) Procedure for exercise of authority to litigate or
     appeal.--
       ``(A) In general.--Prior to commencing, defending, or
     intervening in any civil action under this Act or the
     Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et
     seq.), the Special Counsel shall give written notification
     to, and attempt to consult with, the Attorney General with
     respect to the proposed action.
       ``(B) Failure to respond.--If, not later than 45 days after
     the date of provision of notification under subparagraph (A),
     the Attorney General has failed to commence, defend, or
     intervene in the proposed action, the Special Counsel may
     commence, defend, or intervene in, and supervise the
     litigation of, the action and any appeal of the action in the
     name of the Special Counsel.
       ``(C) Authority of attorney general to intervene.--Nothing
     in this paragraph precludes the Attorney General from
     intervening on behalf of the United States in any civil
     action under this Act or the Agricultural Fair Practices Act
     of 1967 (7 U.S.C. 2301 et seq.), or in any appeal of such
     action, as may be otherwise provided by law.
       ``(c) Relationship to Other Provisions.--Nothing in this
     section modifies or otherwise effects subsections (a) and (b)
     of section 406.
       ``(d) Authorization.--There are authorized to be
     appropriated such sums as are necessary to carry out
     subsection (a)(2)(E).''.
       (2) Conforming amendment.--Section 5315 of title 5, United
     States Code, is amended by adding at the end the following:
       ``Special Counsel for Agricultural Competition.''.
       (h) Agribusiness Merger Review and Enforcement by the
     Department of Agriculture.--
       (1) Notice.--The Assistant Attorney General or the
     Commissioner, as appropriate, shall notify the Secretary of
     any filing under section 7A of the Clayton Act (15 U.S.C.
     18a) involving a merger or acquisition in the agricultural
     industry, and shall give the Secretary the opportunity to
     participate in the review proceedings.
       (2) Review.--
       (A) In general.--After receiving notice of a merger or
     acquisition under paragraph (1), the Secretary may submit to
     the Assistant Attorney General or the Commissioner, as
     appropriate, and publish the comments of the Secretary
     regarding that merger or acquisition, including a
     determination regarding whether the merger or acquisition may
     have a substantial adverse impact on rural communities or the
     family farm and ranch sector, such that further review by the
     Assistant Attorney General or the Commissioner, as
     appropriate, is warranted.
       (B) Second requests.--For any merger or acquisition
     described in paragraph (1), if the Assistant Attorney General
     or the Chairman, as the case may be, requires the submission
     of additional information or documentary material under
     section 7A(e)(1)(A) of the Clayton Act (15 U.S.C.
     18a(e)(1)(A))--
       (i) copies of any materials provided in response to such a
     request shall be made available to the Secretary; and
       (ii) the Secretary--

       (I) shall submit to the Assistant Attorney General or the
     Chairman such additional comments as the Secretary determines
     appropriate; and
       (II) shall publish a summary of any comments submitted
     under subclause (I).

       (3) Report.--
       (A) In general.--The Secretary shall submit an annual
     report to Congress regarding the review of mergers and
     acquisitions described in paragraph (1).
       (B) Contents.--Each report submitted under subparagraph (A)
     shall provide a description of each merger or acquisition
     described in paragraph (1) that was reviewed by the Secretary
     during the year before the date that report is submitted,
     including--
       (i) the name and total resources of each entity involved in
     that merger or acquisition;
       (ii) a statement of the views of the Secretary regarding
     the competitive effects of that merger or acquisition on--

       (I) agricultural markets; and
       (II) rural communities and small, independent producers;
     and

       (iii) a statement indicating whether the Assistant Attorney
     General or the Chairman, as the case may be, instituted a
     proceeding or action under the antitrust laws, and if so, the
     status of that proceeding or action.
       (i) Authorization for Additional Staff and Funding for the
     Grain Inspection, Packers, and Stockyards Administration.--
     There are authorized to be appropriated such sums as are
     necessary to enhance the capability of the Grain Inspection,
     Packers, and Stockyards Administration to monitor,
     investigate, and pursue the competitive implications of
     structural changes in the meat packing and poultry industries
     by hiring litigating attorneys to allow the Grain Inspection,
     Packers, and Stockyards Administration to more
     comprehensively and effectively pursue its enforcement
     activities.
                                 ______

  SA 3632. Mr. COBURN submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       On page 394, after line 25, add the following:
       (d) Income Requirement.--Section 1240B of the Food Security
     Act of 1985 (16 U.S.C. 3839aa-2) (as amended by subsection
     (c)) is amended by adding at the end the following:
       ``(i) Income Requirement.--A producer shall not be eligible
     to receive any payment under this section unless not less
     than 66.66 percent of the average adjusted gross income of
     the producer is derived from farming, ranching, or forestry
     operations, as determined by the Secretary.''.
                                 ______

  SA 3633. Ms. MIKULSKI submitted an amendment intended to be proposed
by her to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. H-2B NONIMMIGRANTS.

       (a) Short Title.--This section may be cited as the ``Save
     Our Small and Seasonal Businesses Act of 2007''.
       (b) Extension of Returning Worker Exemption to H-2B
     Numerical Limitation.--Section 214(g)(9)(A) of the
     Immigration and Nationality Act (8 U.S.C. 1184(g)(9)(A) is
     amended, by striking ``an alien who has already been counted
     toward the numerical limitation of paragraph (1)(B) during
     fiscal year 2004, 2005, or 2006 shall not again be counted
     toward such limitation during fiscal year 2007.'' and
     inserting ``an alien who has been present in the United
     States as an H-2B nonimmigrant during any 1 of the 3 fiscal
     years immediately preceding the fiscal year of the approved
     start date of a petition for a nonimmigrant worker described
     in section 101(a)(15)(H)(ii)(b) shall not be counted toward
     such limitation for the fiscal year in which the petition is
     approved.''.
       (c) Effective Date.--The amendment made by this section
     shall be effective during the 5-year period beginning on
     October 1, 2007.
                                 ______

  SA 3634. Ms. CANTWELL (for herself, Mrs. Murray, Mr. Wyden, Ms.
Stabenow, Mr. Craig, and Mr. Casey) submitted an amendment intended to
be proposed by her to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       Beginning on page 1378, strike line 17 and all that follows
     through page 1380, line 14, and insert the following:
       ``(e) Tree Assistance Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Eligible orchardist.--The term `eligible orchardist'
     means a person that produces annual crops from trees for
     commercial purposes.
       ``(B) Natural disaster.--The term `natural disaster' means
     plant disease, insect infestation, drought, fire, freeze,
     flood, earthquake, lightning, or other occurrence, as
     determined by the Secretary.
       ``(C) Nursery tree grower.--The term `nursery tree grower'
     means a person who produces nursery, ornamental, fruit, nut,
     or Christmas trees for commercial sale, as determined by the
     Secretary.
       ``(D) Tree.--The term `tree' includes a tree, bush, and
     vine.
       ``(2) Eligibility.--
       ``(A) Loss.--Subject to subparagraph (B), the Secretary
     shall provide assistance under paragraph (3) to eligible
     orchardists and nursery tree growers that planted trees for
     commercial purposes but lost the trees as a result of a
     natural disaster, as determined by the Secretary.
       ``(B) Limitation.--An eligible orchardist shall qualify for
     assistance under subparagraph (A) only if the tree mortality
     of the eligible orchardist or nursery tree grower, as a
     result of damaging weather or related condition, exceeds 15
     percent (adjusted for normal mortality).
       ``(3) Assistance.--Subject to paragraph (4), the assistance
     provided by the Secretary to eligible orchardists and nursery
     tree growers for losses described in paragraph (2) shall
     consist of--
       ``(A)(i) reimbursement of 75 percent of the cost of
     replanting trees lost due to a natural disaster, as
     determined by the Secretary, in excess of 15 percent
     mortality (adjusted for normal mortality); or

[[Page S14332]]

       ``(ii) at the option of the Secretary, sufficient seedlings
     to reestablish a stand; and
       ``(B) reimbursement of 50 percent of the cost of pruning,
     removal, and other costs incurred by an eligible orchardist
     or nursery tree grower to salvage existing trees or, in the
     case of tree mortality, to prepare the land to replant trees
     as a result of damage or tree mortality due to a natural
     disaster, as determined by the Secretary, in excess of 15
     percent damage or mortality (adjusted for normal tree damage
     and mortality).
       ``(4) Limitations on assistance.--
       ``(A) Amount.--The total amount of payments that a person
     shall be entitled to receive under this subsection may not
     exceed $100,000 per year, or an equivalent value in tree
     seedlings.
       ``(B) Acres.--The total quantity of acres planted to trees
     or tree seedlings for which a person shall be entitled to
     receive payments under this subsection may not exceed 500
     acres.
       ``(C) Regulations.--The Secretary shall promulgate --
       ``(i) regulations defining the term `person' for the
     purposes of this subsection, which shall conform, to the
     maximum extent practicable, to the regulations defining the
     term `person' promulgated under section 1001 of the Food
     Security Act of 1985 (7 U.S.C. 1308); and
       ``(ii) such regulations as the Secretary determines
     necessary to ensure a fair and reasonable application of the
     limitation established under this paragraph.''.
       On page 1390, between lines 9 and 10, insert the following:
       ``(5) Exception.--Paragraph (1) does not apply to eligible
     orchardists and nursery tree growers described in subsection
     (e).''.
       On page 1391, line 11, before the period at the end insert
     ``(other than subsection (e))''.
                                 ______

  SA 3635. Ms. CANTWELL (for herself and Mrs. Murray) submitted an
amendment intended to be proposed by her to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       Section 1841 is amended by striking subsection (b) and
     inserting the following:
       (b) Availability of Funds.--Section 101 of the Specialty
     Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public
     Law 108-465) is amended by striking subsection (i) and
     inserting the following:
       ``(i) Funding.--Of the funds of the Commodity Credit
     Corporation, the Secretary of Agriculture shall make grants
     under this section, using--
       ``(1) $85,000,000 for fiscal year 2008;
       ``(2) $90,000,000 for fiscal year 2009;
       ``(3) $95,000,000 for fiscal year 2010;
       ``(4) $95,000,000 for fiscal year 2011; and
       ``(5) $0 for fiscal year 2012.''.
       At the end of title I, add the following:

                     Subtitle H--Reduction in Funds

     SEC. 19__. REDUCTION IN FUNDS.

       (a) In General.--Except as provided in subsection (b) and
     notwithstanding any other provision of this Act or an
     amendment made by this Act, for the period beginning on
     October 1, 2007, and ending on September 30, 2011--
       (1) each amount provided to carry out administration for a
     program under this Act or an amendment made by this Act is
     reduced by an amount necessary to achieve a total reduction
     of $95,000,000; and
       (2) the Secretary shall adjust the amount of each payment,
     loan, gain, or other assistance provided under each program
     described in paragraph (1) by such amount as is necessary to
     achieve the reduction required under that paragraph, as
     determined by the Secretary.
       (b) Application.--This section does not apply to a payment,
     loan, gain, or other assistance provided under a contract
     entered into by the Secretary before the date of enactment of
     this Act.
                                 ______

  SA 3636. Mrs. MURRAY (for herself, Ms. Cantwell, Mr. Schumer, and Mr.
Wyden) submitted an amendment intended to be proposed by her to the
bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

       On page 243, strike lines 2 through 12 and insert the
     following:
       ``(1) In general.--The Secretary shall make available to
     carry out the program under this section--
       ``(A) $9,000,000 of funds of, or an equal value of
     commodities owned by, the Commodity Credit Corporation for
     each of fiscal years 2008 through 2011; and
       ``(B) $2,000,000 of funds of, or an equal value of
     commodities owned by, the Commodity Credit Corporation for
     fiscal year 2012 and each subsequent fiscal year.''.
       On page 299, between lines 15 and 16, insert the following:

                     Subtitle H--Reduction in Funds

     SEC. 19__. REDUCTION IN FUNDS.

       Notwithstanding any other provision of this Act or an
     amendment made by this Act, for the period beginning on
     October 1, 2007, and ending on September 30, 2011, each
     amount provided to carry out administration for a program
     under this Act or an amendment made by this Act is reduced by
     an amount necessary to achieve a total reduction of
     $8,800,000.
                                 ______

  SA 3637. Mrs. MURRAY (for herself and Ms. Cantwell) submitted an
amendment intended to be proposed by her to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       After section 2613, insert the following:

     SEC. 26__. COMPREHENSIVE CONSERVATION PLANNING FOR PUGET
                   SOUND AREA.

       (a) Grant Program.--
       (1) In general.--The Secretary shall carry out a
     competitive grant program for the Puget Sound area to provide
     comprehensive conservation planning to address water quality.
       (2) Cooperative agreements.--The Secretary shall enter into
     cooperative agreements with State and local governments,
     Indian tribes, or nongovernmental entities with a history of
     working with agricultural producers to carry out projects
     under the program.
       (b) Assistance.--In carrying out the program, the Secretary
     may--
       (1) provide project demonstration grants and technical
     assistance and carry out information and education programs
     to improve water quality in the Puget Sound area by reducing
     soil erosion and improving sediment control; and
       (2) provide a priority for projects and activities that
     directly reduce soil erosion or improve water quality.
       (c) Authorization of Appropriations.--There is authorized
     to be appropriated to the Secretary $5,000,000 for each of
     fiscal years 2008 through 2012 to carry out the program.
                                 ______

  SA 3638. Mrs. MURRAY (for herself and Ms. Cantwell) submitted an
amendment intended to be proposed by her to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       On page 309, strike lines 7 through 22 and insert the
     following:
       ``(D) Exceptions.--The Secretary may exceed the limitations
     limitation in subparagraph (A) if the Secretary determines
     that--
       ``(i)(I) the action would not adversely affect the local
     economy of a county; and
       ``(II) operators in the county are having difficulties
     complying with conservation plans implemented under section
     1212;
       ``(ii)(I) the acreage to be enrolled could not be used for
     an agricultural purpose as a result of a State or local law,
     order, or regulation prohibiting water use for agricultural
     production; and
       ``(II) enrollment in the program would benefit the acreage
     enrolled or land adjacent to the acreage enrolled; or
       ``(iii)(I) the acreage to be enrolled is considered to be
     essential by Federal or State plans for a sustainable
     wildlife habitat; and
       ``(II) enrollment in the program would assist the producer
     in meeting environmental goals in the Federal or State
     plans.''.
                                 ______

  SA 3639. Mr. HARKIN (for himself and Ms. Murkowski) submitted an
amendment intended to be proposed by him to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       After section 4402, insert the following:

     SEC. __. NUTRITION STANDARDS FOR FOODS AND BEVERAGES SOLD IN
                   SCHOOLS.

       (a) In General.--Section 10 of the Child Nutrition Act of
     1966 (42 U.S.C. 1779) is amended to read as follows:

     ``SEC. 10. NUTRITION STANDARDS FOR FOODS AND BEVERAGES SOLD
                   IN SCHOOLS.

       ``(a) Definitions.--In this section:
       ``(1) Applicable.--
       ``(A) In general.--The term `applicable' means, with
     respect to a food or beverage, a food or beverage that is
     offered for sale--
       ``(i) on the school campus; and
       ``(ii) at any time during the extended school day, when
     events are primarily under the control of the school or a
     third party on behalf of the school.
       ``(B) Exclusions.--The term `applicable' does not include,
     with respect to a food or beverage, a food or beverage when
     the food or beverage is sold as a part of a meal or meal
     supplement that is eligible for reimbursement under this Act
     or the Richard B. Russell National School Lunch Act (42
     U.S.C. 1751 et seq.).
       ``(2) Extended school day.--The term `extended school day'
     means--
       ``(A) the official school day; and
       ``(B) the time before and after the official school day
     that includes activities, such as clubs, yearbook, band and
     choir practice, student government, drama, and childcare or
     latchkey programs.
       ``(b) Requirement.--
       ``(1) In general.--Except as provided in paragraphs (2) and
     (3), each applicable food and beverage that is offered for
     sale in an elementary school, middle school, or high school
     during the extended school day shall meet the requirements
     established under this section with respect to each serving
     or package as offered for sale.
       ``(2) Exception.--Paragraph (1) shall not apply to or
     affect--

[[Page S14333]]

       ``(A) a food or beverage that is sold for the purpose of a
     school-sponsored or school-related bona fide fundraising
     activity that does not take place--
       ``(i) on school grounds; or
       ``(ii) in transit to or from school;
       ``(B) a food or beverage that is sold at, or immediately
     before or after, a school-related event at which parents and
     other adults comprise a significant part of an audience; or
       ``(C) a fundraiser (other than fundraising through vending
     machines, school stores, snack bars, a la carte sales, and
     any other exclusions determined by the Secretary), if the
     fundraiser is--
       ``(i) approved by the school; and
       ``(ii) infrequent within the school.
       ``(3) A la carte main dish items.--
       ``(A) In general.--The Secretary shall promulgate
     regulations establishing nutrition standards for main dish
     items covered by paragraph (1) that are offered for sale a la
     carte.
       ``(B) Considerations.--In establishing the standards, the
     Secretary shall consider both the positive and negative
     contribution of nutrients, ingredients, and foods in a la
     carte items (including calories, portion size, saturated fat,
     trans fat, sodium, added sugars, and under-consumed food
     groups and nutrients) to the diets of children and
     adolescents.
       ``(C) Regulations.--Regulations promulgated under this
     paragraph shall be--
       ``(i) in accordance with rulemaking under section 553 of
     title 5, United States Code; and
       ``(ii) subject to review by the Office of Management and
     Budget.
       ``(4) Statewide nutrition standards.--
       ``(A) In general.--Except as provided in subparagraph (B),
     any State that participates in a food-service program under
     this Act or the Richard B. Russell National School Lunch Act
     (42 U.S.C. 1751 et seq.) may not establish or continue in
     effect any statewide nutrition standards relating to
     applicable foods and beverages that are different than the
     standards established under this section.
       ``(B) Exception.--Subparagraph (A) does not apply to or
     affect--
       ``(i) any Federal or State law relating to consumer
     protection, unfair or deceptive practices, unfair
     competition, or marketing;
       ``(ii) any additional nutrition standard relating to
     applicable foods and beverages that is established by any
     political subdivision of a State; or
       ``(iii) any additional nutrition standard for an a la carte
     main dish item that is established by any State or political
     subdivision.
       ``(c) Applicable Beverages.--
       ``(1) Elementary schools and middle schools.--
       ``(A) Package sizes.--Except as provided in subparagraph
     (B)(ii), the package of any applicable beverage that is
     offered for sale in an elementary school or middle school
     shall be not more than 8 fluid ounces.
       ``(B) Water.--Water offered for sale in an elementary
     school or middle school may--
       ``(i) only be water without flavoring, sweeteners, or
     carbonation; and
       ``(ii) be sold in a package size of more than 8 fluid
     ounces.
       ``(C) Milk.--Milk offered for sale in an elementary school
     or middle school--
       ``(i) shall be low-fat or non-fat; and
       ``(ii) shall contain not more than 170 calories per 8 fluid
     ounce serving.
       ``(D) Fluid milk substitutes.--An elementary or middle
     school may offer for sale a fluid milk substitute that--
       ``(i) is consistent with the nutrition standards for fluid
     milk substitutes that are established by the Secretary for
     use under this Act or the Richard B. Russell National School
     Lunch Act (42 U.S.C. 1751 et seq.); and
       ``(ii) contains not more than 170 calories per 8 fluid
     ounce serving.
       ``(E) Juice.--Juice offered for sale in an elementary
     school or middle school may contain--
       ``(i) only juice, with or without added micronutrients or
     natural flavors--

       ``(I) with no added sweeteners; and
       ``(II) with or without water or carbonated water; and

       ``(ii) not more than 170 calories per 8 fluid ounce
     serving.
       ``(2) High schools.--
       ``(A) Package sizes.--Except as provided in subparagraphs
     (B)(ii) and (F)(iii), the package of any applicable beverage
     offered for sale in a high school shall be not more than 12
     fluid ounces.
       ``(B) Water.--Water offered for sale in a high school may--
       ``(i) be water with or without flavoring, noncaloric
     sweeteners, or carbonation; and
       ``(ii) be sold in a package size of more than 12 ounces.
       ``(C) Milk.--Milk offered for sale in a high school shall--
       ``(i) be low-fat or nonfat; and
       ``(ii) contain not more than 170 calories per 8 fluid ounce
     serving.
       ``(D) Fluid milk substitutes.--A high school may offer for
     sale a fluid milk substitute that--
       ``(i) is consistent with the nutrition standards for fluid
     milk substitutes that are established by the Secretary for
     use under this Act or the Richard B. Russell National School
     Lunch Act (42 U.S.C. 1751 et seq.); and
       ``(ii) contains not more than 170 calories per 8 fluid
     ounce serving.
       ``(E) Juice.--Juice offered for sale in a high school may
     only contain juice, with or without added micronutrients or
     natural flavors--
       ``(i)(I) with no added sweeteners; or
       ``(II) with or without water or carbonated water with no
     added caloric sweeteners; and
       ``(ii) that contains not more than 170 calories per 8 fluid
     ounce serving.
       ``(F) Other beverages.--
       ``(i) In general.--Except as provided in clauses (ii) and
     (iii), any beverage offered for sale in a high school other
     than a beverage identified in subparagraph (B), (C), (D), or
     (E), shall contain--

       ``(I) during the period beginning on the effective date
     described in subsection (j) and ending on June 30, 2013, not
     more than 66 calories per 8 fluid ounce serving; and
       ``(II) effective beginning on July 1, 2013, not more than
     25 calories per 8 fluid ounce serving.

       ``(ii) Exception.--Effective beginning on July 1, 2013,
     beverages that are mixtures of water, carbohydrates, and
     electrolytes (with or without other ingredients) that are
     useful for providing energy and hydration for sustained and
     vigorous physical activity with not more than 66 calories per
     8 fluid ounces may be offered for sale in packages of not
     more than 12 fluid ounces in or immediately adjacent to an
     area of the high school in which students participate in a
     school-sponsored sport or other vigorous and sustained
     physical activity, subject to the requirement that such an
     adjacent area shall not be within the general movement of
     students between classes or into or out of the school campus.
       ``(iii) Very low calorie exception.--Any beverage that
     contains between 0 and 10 calories per 8 fluid ounce serving
     may be offered for sale in a high school in a package of not
     more than 20 fluid ounces.
       ``(d) Applicable Food.--
       ``(1) Standards.--
       ``(A) Fats.--An applicable food shall contain--
       ``(i) not more than 35 percent of total calories from fat,
     except for--

       ``(I) seeds, nuts, nut butters, and nut-based products
     containing 40 percent or more nuts by weight; and
       ``(II) reduced-fat and part skim cheese packaged for
     individual sale;

       ``(ii) not more than 10 percent of total calories from
     saturated fat, except for reduced-fat and part skim cheese
     packaged for individual sale; and
       ``(iii) less than 0.5 grams of trans fats.
       ``(B) Sugars.--An applicable food shall consist of not more
     than 35 percent sugars by weight, excluding sugar from whole
     fruit.
       ``(C) Sodium.--An applicable food shall contain, per
     package or serving as offered for sale--
       ``(i) in the case of chips, crackers, French fries,
     vegetables, baked goods, yogurt (including drinkable yogurt
     and yogurt smoothies), and other side dishes or snack items,
     not more than 230 milligrams of sodium per serving; and
       ``(ii) in the case of pastas that are side dishes, cereals,
     meats, and soups, not more than 480 milligrams of sodium per
     serving.
       ``(2) Required contents.--Each applicable food that is
     offered for sale in an elementary school, middle school, or
     high school shall contain 1 or more of the following:
       ``(A) 10 percent of the daily recommended value of 1 or
     more of the following:
       ``(i) Vitamin A, E, or C.
       ``(ii) Calcium.
       ``(iii) Magnesium.
       ``(iv) Potassium.
       ``(v) Fiber.
       ``(B) \1/4\ cup of a fruit or vegetable, as provided prior
     to processing.
       ``(C) 51 percent or more by weight whole grain ingredients
     or have a whole grain as the first ingredient.
       ``(3) Calories.--
       ``(A) Elementary schools and middle schools.--An applicable
     food that is offered for sale in an elementary school or
     middle school shall contain not more than 180 calories per
     package or serving as offered for sale.
       ``(B) High schools.--An applicable food that is offered for
     sale in a high school shall contain not more than 200
     calories per package or serving as offered for sale.
       ``(e) Shared School Facilities.--Notwithstanding subsection
     (c)(1) or (d)(3)(A), if elementary school or middle school
     students have shared access to areas in common buildings with
     high school students, the local educational authority may
     elect whether to apply in those areas the applicable beverage
     provisions in paragraph (1) or (2) of subsection (c) or the
     applicable food provisions in subparagraph (A) or (B) of
     subsection (d)(3).
       ``(f) Approval of New Products.--The Secretary may approve
     for sale in schools a new food or beverage that does not
     satisfy the applicable food and beverage requirements of this
     section if the Secretary (based on a rulemaking conducted
     under section 553 of title 5, United States Code, prior to
     approval)--
       ``(1) determines that the sale of the new food or beverage
     does not undermine the purposes of this section; and
       ``(2) provides scientific justification for the approval.
       ``(g) Updating Standards and Requirements.--
       ``(1) In general.--As soon as practicable after the date of
     publication by the Department of Agriculture and the
     Department of Health and Human Services of a new edition of
     the Dietary Guidelines for Americans under section 301 of the
     National Nutrition Monitoring and Related Research Act of
     1990

[[Page S14334]]

     (7 U.S.C. 5341), beginning with the 2015 edition, the
     Secretary shall review and update as necessary the school
     nutrition standards and requirements established under this
     section.
       ``(2) Requirements.--In reviewing or updating the nutrition
     standards and requirements under this section, the Secretary
     shall take into consideration--
       ``(A) the positive and negative contributions of nutrients,
     ingredients, and foods (including calories, vitamins,
     minerals, portion size, saturated fat, trans fat, sodium,
     added sugars, and underconsumed food groups and nutrients) to
     the diets of children and adolescents;
       ``(B) evidence concerning the relationship between
     consumption of certain nutrients, ingredients, and foods with
     respect to the prevention of overweight, obesity, and other
     chronic illnesses;
       ``(C) recommendations made by authoritative scientific
     sources concerning--
       ``(i) appropriate nutrition standards for foods sold
     outside the reimbursable meal programs in schools; and
       ``(ii) the most effective manner in which to teach children
     and adolescents how to improve dietary habits; and
       ``(D) the practicality and feasibility of implementation of
     potential modifications to the nutrition standards and
     requirements.
       ``(3) Limitation on authority.--The Secretary may update or
     otherwise modify nutrition standards and requirements under
     this section only--
       ``(A) in accordance with rulemaking under section 553 of
     title 5, United States Code; and
       ``(B) subject to review by the Office of Management and
     Budget.
       ``(4) Effect of updated standards.--Updated school
     nutrition standards and requirements under this subsection
     shall supersede any other school nutrition standards or
     requirements in effect on the date on which the updated
     standards and requirements are implemented.
       ``(h) School Food and Beverage Advisory Committee.--
       ``(1) In general.--The Secretary may establish an advisory
     committee, to be known as the `School Food and Beverage
     Advisory Committee' (in this subsection referred to as the
     `Advisory Committee'), to advise the Secretary on updating
     the school nutrition standards and requirements under this
     section.
       ``(2) Membership.--The members of the Advisory Committee
     shall be appointed by the Secretary and shall include--
       ``(A) registered dietitians and certified nutritionists;
       ``(B) school officials, such as school food service
     directors, principals, or school board members;
       ``(C) public health professionals, including physicians and
     dentists;
       ``(D) members of parent or consumer advocacy groups;
       ``(E) representatives of industry stakeholders that produce
     food and beverages offered for sale in schools; and
       ``(F) other individuals with relevant expertise in child
     health and nutrition.
       ``(3) Duties.--
       ``(A) In general.--The Advisory Committee shall provide
     advice, information, and recommendations to the Secretary on
     implementation of this section and on other child health and
     nutrition issues related to the provision of foods and
     beverages in schools, as requested by the Secretary.
       ``(B) Scientific justification.--The Advisory Committee
     shall provide--
       ``(i) scientific justification for any recommended
     modification to the provisions regarding applicable foods and
     beverages under this section; and
       ``(ii) anticipated nutrition and health benefits if the
     recommended modification is adopted.
       ``(i) Guidance.--
       ``(1) In general.--The Secretary shall develop guidance to
     help local educational authorities and school food
     authorities identify beverage and food products that meet the
     nutrition standards established by this section.
       ``(2) List of beverages.--In issuing guidance to carry out
     this section, and at any time not later than 60 days after
     receipt of an applicable request, the Secretary shall
     identify and maintain a list of beverages allowable under
     subsection (c)(2)(F)(ii).
       ``(j) Effective Date.--
       ``(1) In general.--Except as provided in paragraph (2),
     nutrition standards and requirements established under this
     section take effect on the first day of the first school year
     beginning on or after July 1, 2011.
       ``(2) Exception.--Standards for a la carte main dish items
     established under subsection (b)(3) take effect on the later
     of--
       ``(A) the date on which final regulations under subsection
     (b)(3) are promulgated; or
       ``(B) July 1, 2011.''.
       (b) Implementation, Regulations, and Enforcement.--
       (1) Implementation.--The Secretary shall implement section
     10 of the Child Nutrition Act of 1966 (as amended by
     subsection (a)) (other than subsections (b)(3)(C) and (g) of
     that section) through the issuance of guidance, which shall
     be considered a ``significant guidance document'' under
     Executive Order 12866 (5 U.S.C. 601 note; relating to
     regulatory planning and review), as amended by Executive
     Order 13422 (72 Fed. Reg. 2763).
       (2) Regulations.--
       (A) In general.--Not later than 1 year after the date of
     enactment of this Act, the Secretary shall promulgate--
       (i) regulations to eliminate any conflicting provisions
     regarding competitive foods and foods of minimal nutritional
     value; and
       (ii) such other regulations as are necessary to carry out
     the amendment made by subsection (a).
       (B) Procedure.--The promulgation of the regulations under
     subparagraph (A) shall be made without regard to--
       (i) the notice and comment provisions of section 553 of
     title 5, United States Code;
       (ii) the Statement of Policy of the Secretary of
     Agriculture effective July 24, 1971 (36 Fed. Reg. 13804),
     relating to notices of proposed rulemaking and public
     participation in rulemaking; and
       (iii) chapter 35 of title 44, United States Code (commonly
     known as the ``Paperwork Reduction Act'').
       (C) Congressional review of agency rulemaking.--In carrying
     out this paragraph, the Secretary shall use the authority
     provided under section 808 of title 5, United States Code.
       (3) Enforcement.--The Secretary shall enforce this section
     and the amendments made by this section (including
     regulations) in accordance with requirements established by
     the Secretary.
                                 ______

  SA 3640. Mr. CRAIG (for himself, Mr. Brownback, and Mr. Allard)
submitted an amendment intended to be proposed by him to the bill H.R.
2419, to provide for the continuation of agricultural programs through
fiscal year 2012, and for other purposes; which was ordered to lie on
the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. FARMLAND AND GRAZING LAND PRESERVATION.

       (a) Definitions.--In this section:
       (1) Farmland or grazing land.--The term ``farmland or
     grazing land'' means--
       (A) farmland (as defined in section 1540(c) of the Farmland
     Protection Policy Act (7 U.S.C. 4201(c)));
       (B) land that is used for any part of the year as pasture
     land for the grazing of livestock;
       (C) land that is assessed as agricultural land for purposes
     of State or local property taxes; and
       (D) land that is enrolled in--
       (i) the conservation reserve program established under
     subchapter B of chapter 1 of subtitle D of title XII of the
     Food Security Act of 1985 (16 U.S.C. 3831 et seq.); or
       (ii) any other program authorized under--

       (I) subtitle D of title XII of that Act; or
       (II) the Food and Energy Security Act of 2007.

       (2) Federal funds or financial assistance.--The term
     ``Federal funds or financial assistance'' means--
       (A) Federal financial assistance (as defined in section 101
     of the Uniform Relocation Assistance and Real Property
     Acquisition Policies Act of 1970 (42 U.S.C. 4601)); and
       (B) any other Federal funds that are appropriated through
     an Act of Congress or otherwise expended from the Treasury.
       (3) Prohibited conduct.--
       (A) In general.--The term ``prohibited conduct'' means the
     exercise of eminent domain authority to acquire real property
     that is farmland or grazing land for the purpose of a park,
     recreation, open space, conservation, preservation view,
     scenic vista, or similar purpose.
       (B) Exceptions.--The term ``prohibited conduct'' does not
     include a transfer of farmland or grazing land for--
       (i) use by a public utility;
       (ii) a road or other right of way or means, open to the
     public or common carriers, for transportation;
       (iii) an aqueduct, pipeline, or similar use;
       (iv) a prison or hospital; or
       (v) any use during and in relation to a national emergency
     or national disaster declared by the President under other
     law.
       (4) Relevant entity.--The term ``relevant entity'' means--
       (A) a State or unit of local government that engages in
     prohibited conduct;
       (B) a State or unit of local government that gives
     authority for an entity to engage in prohibited conduct; and
       (C) in the case of extraterritorial prohibited conduct--
       (i) the entity that engages in prohibited conduct; and
       (ii) the State or unit of local government that allows the
     prohibited conduct to take place within the jurisdiction of
     the State or local government.
       (5) State.--The term ``State'' means--
       (A) each of the several States of the United States;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico;
       (D) Guam;
       (E) American Samoa;
       (F) the Commonwealth of the Northern Mariana Islands;
       (G) the Federated States of Micronesia;
       (H) the Republic of the Marshall Islands;
       (I) the Republic of Palau; and
       (J) the United States Virgin Islands.
       (b) Prohibitions.--
       (1) In general.--If a relevant entity engages in prohibited
     conduct, no officer or employee of the Federal Government
     with responsibility over Federal funds or financial
     assistance may make the Federal funds or assistance available
     to the relevant entity during the period described in
     paragraph (2).
       (2) Duration of prohibition.--The period referred to in
     paragraph (1) is the period that

[[Page S14335]]

     begins on the date that an officer or employee of the Federal
     Government determines that a relevant entity has engaged in
     prohibited conduct and ends on the earlier of--
       (A) the date that is 5 years after the date on which the
     period began; or
       (B) the date on which the farmland or grazing land is
     returned to the person from whom the property was acquired,
     in the same condition in which the property was originally
     acquired.
       (3) Federal prohibition.--No agency of the Federal
     Government may engage in prohibited conduct.
       (c) Private Right of Action.--The owner of any real
     property acquired by prohibited conduct that results in the
     prohibition under this section of Federal funds or financial
     assistance may, in a civil action, obtain injunctive and
     declaratory relief to enforce that prohibition.
       (d) Applicability.--This section applies to any prohibited
     conduct--
       (1) that takes place on or after the date of enactment of
     this section; or
       (2)(A) that is in process on the date of enactment of this
     section; and
       (B) for which title has not yet passed to the relevant
     entity.
                                 ______

  SA 3641. Mr. ALLARD (for himself and Mr. Salazar) submitted an
amendment intended to be proposed by him to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       On page 1055, strike lines 6 through 8 and insert the
     following:
       ``(A) incorporates any forest management plan of the State
     in existence on the date of enactment of this section
     (including community wildfire protection plans);
                                 ______

  SA 3642. Mr. KYL submitted an amendment intended to be proposed by
him to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

       On page 1587, after line 18, add the following:

                         Subtitle G--AMT Relief

     SEC. 12701. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR
                   NONREFUNDABLE PERSONAL CREDITS.

       (a) In General.--Paragraph (2) of section 26(a) (relating
     to special rule for taxable years 2000 through 2006) is
     amended--
       (1) by striking ``or 2006'' and inserting ``2006, or
     2007'', and
       (2) by striking ``2006'' in the heading thereof and
     inserting ``2007''.
       (b)  Effective Date.--The amendments made by this section
     shall apply to taxable years beginning after December 31,
     2006.

     SEC. 12702. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
                   EXEMPTION AMOUNT.

       (a) In General.--Paragraph (1) of section 55(d) (relating
     to exemption amount) is amended--
       (1) by striking ``($62,550 in the case of taxable years
     beginning in 2006)'' in subparagraph (A) and inserting
     ``($66,250 in the case of taxable years beginning in 2007)'',
     and
       (2) by striking ``($42,500 in the case of taxable years
     beginning in 2006)'' in subparagraph (B) and inserting
     ``($44,350 in the case of taxable years beginning in 2007)''.
       (b) Effective Date.--The amendments made by this section
     shall apply to taxable years beginning after December 31,
     2006.

     SEC. 12703. INCREASE OF AMT REFUNDABLE CREDIT AMOUNT FOR
                   INDIVIDUALS WITH LONG-TERM UNUSED CREDITS FOR
                   PRIOR YEAR MINIMUM TAX LIABILITY, ETC.

       (a) In General.--Paragraph (2) of section 53(e) of the
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(2) AMT refundable credit amount.--For purposes of
     paragraph (1), the term `AMT refundable credit amount' means,
     with respect to any taxable year, the amount (not in excess
     of the long-term unused minimum tax credit for such taxable
     year) equal to the greater of--
       ``(A) 50 percent of the long-term unused minimum tax credit
     for such taxable year, or
       ``(B) the amount (if any) of the AMT refundable credit
     amount determined under this paragraph for the taxpayer's
     preceding taxable year.''.
       (b) Treatment of Certain Underpayments, Interest, and
     Penalties Attributable to the Treatment of Incentive Stock
     Options.--Section 53 of such Code is amended by adding at the
     end the following new subsection:
       ``(f) Treatment of Certain Underpayments, Interest, and
     Penalties Attributable to the Treatment of Incentive Stock
     Options.--
       ``(1) Abatement.--Any underpayment of tax outstanding on
     the date of the enactment of this subsection which is
     attributable to the application of section 56(b)(3) for any
     taxable year ending before January 1, 2007 (and any interest
     or penalty with respect to such underpayment which is
     outstanding on such date of enactment), is hereby abated. No
     credit shall be allowed under this section with respect to
     any amount abated under this paragraph.
       ``(2) Increase in credit for certain interest and penalties
     already paid.--Any interest or penalty paid before the date
     of the enactment of this subsection which would (but for such
     payment) have been abated under paragraph (1) shall be
     treated for purposes of this section as an amount of adjusted
     net minimum tax imposed for the taxable year of the
     underpayment to which such interest or penalty relates.''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the
     amendment made by this section shall apply to taxable years
     beginning after December 31, 2006.
       (2) Abatement.--Section 53(f)(1) of the Internal Revenue
     Code of 1986, as added by subsection (b), shall take effect
     on the date of the enactment of this Act.

              Subtitle H--Additional Individual Tax Relief

     SEC. 12751. REFUNDABLE CHILD CREDIT.

       (a) Modification of Threshold Amount.--Clause (i) of
     section 24(d)(1)(B) is amended by inserting ``($8,500 in the
     case of taxable years beginning in 2008)'' after ``$10,000''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12752. ADDITIONAL STANDARD DEDUCTION FOR REAL PROPERTY
                   TAXES FOR NONITEMIZERS.

       (a) In General.--Section 63(c)(1) (defining standard
     deduction) is amended by striking ``and'' at the end of
     subparagraph (A), by striking the period at the end of
     subparagraph (B) and inserting ``, and'', and by adding at
     the end the following new subparagraph:
       ``(C) in the case of any taxable year beginning in 2008,
     the real property tax deduction.''.
       (b) Definition.--Section 63(c) is amended by adding at the
     end the following new paragraph:
       ``(8) Real property tax deduction.--For purposes of
     paragraph (1), the real property tax deduction is so much of
     the amount of State and local real property taxes (within the
     meaning of section 164) paid or accrued by the taxpayer
     during the taxable year which do not exceed $350 ($700 in the
     case of a joint return).''.
       (c) Effective Date.--The amendments made by this section
     shall apply to taxable years beginning after December 31,
     2007.

                     Subtitle I--One-Year Extenders

           PART I--EXTENDERS PRIMARILY AFFECTING INDIVIDUALS

     SEC. 12801. DEDUCTION FOR STATE AND LOCAL SALES TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is
     amended by striking ``January 1, 2008'' and inserting
     ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12802. DEDUCTION OF QUALIFIED TUITION AND RELATED
                   EXPENSES.

       (a) In General.--Subsection (e) of section 222 (relating to
     termination) is amended by striking ``December 31, 2007'' and
     inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12803. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED
                   INVESTMENT COMPANIES.

       (a) Interest-Related Dividends.--Subparagraph (C) of
     section 871(k)(1) (defining interest-related dividend) is
     amended by striking ``December 31, 2007'' and inserting
     ``December 31, 2008''.
       (b) Short-Term Capital Gain Dividends.--Subparagraph (C) of
     section 871(k)(2) (defining short-term capital gain dividend)
     is amended by striking ``December 31, 2007'' and inserting
     ``December 31, 2008''.
       (c) Effective Date.--The amendments made by this section
     shall apply to dividends with respect to taxable years of
     regulated investment companies beginning after December 31,
     2007.

     SEC. 12804. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO
                   MENTAL HEALTH BENEFITS.

       (a) In General.--Paragraph (3) of section 9812(f) (relating
     to application of section) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to benefits for services furnished after December
     31, 2007.

     SEC. 12805. QUALIFIED CONSERVATION CONTRIBUTIONS.

       (a) In General.--Clause (vi) of section 170(b)(1)(E)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to contributions made in taxable years beginning
     after December 31, 2007.

     SEC. 12806. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT
                   PLANS FOR CHARITABLE PURPOSES.

       (a) In General.--Subparagraph (F) of section 408(d)(8)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to distributions made in taxable years beginning
     after December 31, 2007.

     SEC. 12807. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND
                   SECONDARY SCHOOL TEACHERS.

       (a) In General.--Subparagraph (D) of section 62(a)(2)
     (relating to certain expenses of elementary and secondary
     school teachers) is amended by striking ``or 2007'' and
     inserting ``2007, or 2008''.

[[Page S14336]]

       (b) Effective Date.--The amendment made by subsection (a)
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12808. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME
                   FOR PURPOSES OF EARNED INCOME TAX CREDIT.

       (a) In General.--Subclause (II) of section 32(c)(2)(B)(vi)
     (defining earned income) is amended by striking ``January 1,
     2008'' and inserting ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years ending after December 31, 2007.

     SEC. 12809. MODIFICATION OF MORTGAGE REVENUE BONDS FOR
                   VETERANS.

       (a) Qualified Mortgage Bonds Used To Finance Residences for
     Veterans Without Regard to First-Time Homebuyer
     Requirement.--Subparagraph (D) of section 143(d)(2) (relating
     to exceptions) is amended by striking ``January 1, 2008'' and
     inserting ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to bonds issued after December 31, 2007.

     SEC. 12810. DISTRIBUTIONS FROM RETIREMENT PLANS TO
                   INDIVIDUALS CALLED TO ACTIVE DUTY.

       (a) In General.--Clause (iv) of section 72(t)(2)(G) is
     amended by striking ``December 31, 2007'' and inserting
     ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to individuals ordered or called to active duty
     on or after December 31, 2007.

     SEC. 12811. STOCK IN RIC FOR PURPOSES OF DETERMINING ESTATES
                   OF NONRESIDENTS NOT CITIZENS.

       (a) In General.--Paragraph (3) of section 2105(d) (relating
     to stock in a RIC) is amended by striking ``December 31,
     2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to decedents dying after December 31, 2007.

     SEC. 12812. QUALIFIED INVESTMENT ENTITIES.

       (a) In General.--Clause (ii) of section 897(h)(4)(A)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall take effect on January 1, 2008.

     SEC. 12813. STATE LEGISLATORS' TRAVEL EXPENSES AWAY FROM
                   HOME.

       (a) In General.--Paragraph (2) of section 162(h) (relating
     to legislative days) is amended by adding at the end the
     following flush sentence: ``In the case of taxable years
     beginning in 2008, a legislature shall be treated for
     purposes of this paragraph as in session on any day in which
     it is formally called into session without regard to whether
     legislation was considered on such day.''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall apply to taxable years beginning after December 31,
     2007.

           PART II--EXTENDERS PRIMARILY AFFECTING BUSINESSES

     SEC. 12821. RESEARCH CREDIT.

       (a) In General.--Subparagraph (B) of section 41(h)(1)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Conforming Amendment.--Subparagraph (D) of section
     45C(b)(1) (relating to qualified clinical testing expenses)
     is amended by striking ``December 31, 2007'' and inserting
     ``December 31, 2008''.
       (c) Effective Date.--The amendments made by this section
     shall apply to amounts paid or incurred after December 31,
     2007.

     SEC. 12822. INDIAN EMPLOYMENT CREDIT.

       (a) In General.--Subsection (f) of section 45A (relating to
     termination) is amended by striking ``December 31, 2007'' and
     inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12823. NEW MARKETS TAX CREDIT.

       Subparagraph (D) of section 45D(f)(1) (relating to national
     limitation on amount of investments designated) is amended by
     striking ``and 2008'' and inserting ``2008, and 2009''.

     SEC. 12824. RAILROAD TRACK MAINTENANCE.

       (a) In General.--Subsection (f) of section 45G (relating to
     application of section) is amended by striking ``January 1,
     2008'' and inserting ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to expenditures paid or incurred during taxable
     years beginning after December 31, 2007.

     SEC. 12825. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR
                   QUALIFIED LEASEHOLD IMPROVEMENTS AND QUALIFIED
                   RESTAURANT PROPERTY.

       (a) In General.--Clauses (iv) and (v) of section
     168(e)(3)(E) (relating to 15-year property) are each amended
     by striking ``January 1, 2008'' and inserting ``January 1,
     2009''.
       (b) Effective Date.--The amendments made by this section
     shall apply to property placed in service after December 31,
     2007.

     SEC. 12826. SEVEN-YEAR COST RECOVERY PERIOD FOR MOTORSPORTS
                   RACING TRACK FACILITY.

       (a) In General.--Subparagraph (D) of section 168(i)(15)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to property placed in service after December 31,
     2007.

     SEC. 12827. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON
                   INDIAN RESERVATION.

       (a) In General.--Paragraph (8) of section 168(j) (relating
     to termination) is amended by striking ``December 31, 2007''
     and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to property placed in service after December 31,
     2007.

     SEC. 12828. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

       (a) In General.--Subsection (h) of section 198 (relating to
     termination) is amended by striking ``December 31, 2007'' and
     inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to expenditures paid or incurred after December
     31, 2007.

     SEC. 12829. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME
                   ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES
                   IN PUERTO RICO.

       (a) In General.--Subparagraph (C) of section 199(d)(8)
     (relating to termination) is amended--
       (1) by striking ``first 2 taxable years'' and inserting
     ``first 3 taxable years'', and
       (2) by striking ``January 1, 2008'' and inserting ``January
     1, 2009''.
       (b) Effective Date.--The amendments made by this section
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12830. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS
                   TO CONTROLLING EXEMPT ORGANIZATIONS.

       (a) In General.--Clause (iv) of section 512(b)(13)(E)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to payments received or accrued after December
     31, 2007.

     SEC. 12831. EXTENSION AND MODIFICATION OF CREDIT TO HOLDERS
                   OF QUALIFIED ZONE ACADEMY BONDS.

       (a) In General.--Subsection (e) of section 1397E (relating
     to limitation on amount of bonds designated) is amended by
     striking ``1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005,
     2006, and 2007'' and inserting ``each of calendar years 1998
     through 2008''.
       (b) Modification of Arbitrage Rules.--
       (1) In general.--Subsection (g) of section 1397E (relating
     to special rules relating to arbitrage) is amended to read as
     follows:
       ``(g) Special Rules Relating to Arbitrage.--
       ``(1) In general.--An issue shall be treated as meeting the
     requirements of this subsection if the issuer satisfies the
     requirements of section 148 with respect to the proceeds of
     the issue.
       ``(2) Special rule for investments during expenditure
     period.--An issue shall not be treated as failing to meet the
     requirements of paragraph (1) by reason of any investment of
     available project proceeds during the 5-year period described
     in subsection (f)(1)(A) (including any extension of such
     period under subsection (f)(2)).
       ``(3) Special rule for reserve funds.--An issue shall not
     be treated as failing to meet the requirements of paragraph
     (1) by reason of any fund which is expected to be used to
     repay such issue if--
       ``(A) such fund is funded at a rate not more rapid than
     equal annual installments,
       ``(B) such fund is funded in a manner that such fund will
     not exceed the amount necessary to repay the issue if
     invested at the maximum rate permitted under subparagraph
     (C), and
       ``(C) the yield on such fund is not greater than the
     discount rate determined under subsection (d)(3) with respect
     to the issue.''.
       (2) Application of available project proceeds to other
     requirements.--Subsections (d)(1)(A), (d)(2)(A), (f)(1)(A),
     (f)(1)(B), (f)(1)(C), and (f)(3) of section 1397E are each
     amended by striking ``proceeds'' and inserting ``available
     project proceeds''.
       (3) Available project proceeds defined.--Subsection (i) of
     section 1397E (relating to definitions) is amended by adding
     at the end the following new paragraph:
       ``(4) Available project proceeds.--The term `available
     project proceeds' means--
       ``(A) the excess of--
       ``(i) the proceeds from the sale of an issue, over
       ``(ii) the issuance costs financed by the issue (to the
     extent that such costs do not exceed 2 percent of such
     proceeds), and
       ``(B) the proceeds from any investment of the excess
     described in subparagraph (A).''.
       (c) Effective Date.--
       (1) Extension.--The amendment made by subsection (a) shall
     apply to obligations issued after December 31, 2007.
       (2) Modification of arbitrage rules.--The amendments made
     by subsection (b) shall apply to obligations issued after the
     date of the enactment of this Act.

     SEC. 12832. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF
                   COLUMBIA.

       (a) Designation of Zone.--
       (1) In general.--Subsection (f) of section 1400 is amended
     by striking ``2007'' both places it appears and inserting
     ``2008''.
       (2) Effective date.--The amendments made by this subsection
     shall apply to periods beginning after December 31, 2007.
       (b) Tax-Exempt Economic Development Bonds.--
       (1) In general.--Subsection (b) of section 1400A is amended
     by striking ``2007'' and inserting ``2008''.
       (2) Effective date.--The amendment made by this subsection
     shall apply to bonds issued after December 31, 2007.
       (c) Zero Percent Capital Gains Rate.--
       (1) In general.--Subsection (b) of section 1400B is amended
     by striking ``2008'' each place it appears and inserting
     ``2009''.
       (2) Conforming amendments.--

[[Page S14337]]

       (A) Section 1400B(e)(2) is amended--
       (i) by striking ``2012'' and inserting ``2013'', and
       (ii) by striking ``2012'' in the heading thereof and
     inserting ``2013''.
       (B) Section 1400B(g)(2) is amended by striking ``2012'' and
     inserting ``2013''.
       (C) Section 1400F(d) is amended by striking ``2012'' and
     inserting ``2013''.
       (3) Effective dates.--
       (A) Extension.--The amendments made by paragraph (1) shall
     apply to acquisitions after December 31, 2007.
       (B) Conforming amendments.--The amendments made by
     paragraph (2) shall take effect on the date of the enactment
     of this Act.
       (d) First-Time Homebuyer Credit.--
       (1) In general.--Subsection (i) of section 1400C is amended
     by striking ``2008'' and inserting ``2009''.
       (2) Effective date.--The amendment made by this subsection
     shall apply to property purchased after December 31, 2007.

     SEC. 12833. EXTENSION OF ECONOMIC DEVELOPMENT CREDIT FOR
                   AMERICAN SAMOA.

       (a) In General.--Subsection (d) of section 119 of division
     A of the Tax Relief and Health Care Act of 2006 is amended--
       (1) by striking ``first two taxable years'' and inserting
     ``first 3 taxable years'', and
       (2) by striking ``January 1, 2008'' and inserting ``January
     1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after December 31,
     2007.

     SEC. 12834. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS
                   OF FOOD INVENTORY.

       (a) In General.--Clause (iv) of section 170(e)(3)(C)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to contributions made after December 31, 2007.

     SEC. 12835. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS
                   OF BOOK INVENTORY TO PUBLIC SCHOOLS.

       (a) In General.--Clause (iv) of section 170(e)(3)(D)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to contributions made after December 31, 2007.

     SEC. 12836. ENHANCED DEDUCTION FOR QUALIFIED COMPUTER
                   CONTRIBUTIONS.

       (a) In General.--Subparagraph (G) of section 170(e)(6)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to contributions made during taxable years
     beginning after December 31, 2007.

     SEC. 12837. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS
                   MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.

       (a) In General.--The last sentence of section 1367(a)(2)
     (relating to decreases in basis) is amended by striking
     ``December 31, 2007'' and inserting ``December 31, 2008''.
       (b) Technical Amendment Related to Section 1203 of the
     Pension Protection Act of 2006.--Subsection (d) of section
     1366 is amended by adding at the end the following new
     paragraph:
       ``(4) Application of limitation on charitable
     contributions.--In the case of any charitable contribution of
     property to which the second sentence of section 1367(a)(2)
     applies, paragraph (1) shall not apply to the extent of the
     excess (if any) of--
       ``(A) the shareholder's pro rata share of such
     contribution, over
       ``(B) the shareholder's pro rata share of the adjusted
     basis of such property.''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the
     amendments made by this section shall apply to contributions
     made in taxable years beginning after December 31, 2007.
       (2) Technical amendment.--The amendment made by subsection
     (b) shall take effect as if included in the provision of the
     Pension Protection Act of 2006 to which it relates.

     SEC. 12838. EXTENSION OF WORK OPPORTUNITY TAX CREDIT FOR
                   HURRICANE KATRINA EMPLOYEES.

       (a) In General.--Paragraph (1) of section 201(b) of the
     Katrina Emergency Tax Relief Act of 2005 is amended by
     striking ``2-year'' and inserting ``3-year''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall apply to individuals hired after August 27, 2007.

                       PART III--OTHER EXTENDERS

     SEC. 12841. DISCLOSURE FOR COMBINED EMPLOYMENT TAX REPORTING.

       (a) In General.--Subparagraph (B) of section 6103(d)(5)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to disclosures after December 31, 2007.

     SEC. 12842. DISCLOSURE OF RETURN INFORMATION TO APPRISE
                   APPROPRIATE OFFICIALS OF TERRORIST ACTIVITIES.

       (a) In General.--Clause (iv) of section 6103(i)(3)(C)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to disclosures after December 31, 2007.

     SEC. 12843. DISCLOSURE UPON REQUEST OF INFORMATION RELATING
                   TO TERRORIST ACTIVITIES.

       (a) In General.--Subparagraph (E) of section 6103(i)(7)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to disclosures after December 31, 2007.

     SEC. 12844. DISCLOSURE OF RETURN INFORMATION TO CARRY OUT
                   INCOME CONTINGENT REPAYMENT OF STUDENT LOANS.

       (a) In General.--Subparagraph (D) of section 6103(l)(13)
     (relating to termination) is amended by striking ``December
     31, 2007'' and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by this section
     shall apply to requests made after December 31, 2007.

     SEC. 12845. AUTHORITY FOR UNDERCOVER OPERATIONS.

       (a) In General.--Paragraph (6) of section 7608(c) (relating
     to application of section) is amended by striking ``January
     1, 2008'' each place it appears and inserting ``January 1,
     2009''.
       (b) Effective Date.--The amendment made by this section
     shall take effect on January 1, 2008.

     SEC. 12846. INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAX
                   TO PUERTO RICO AND THE VIRGIN ISLANDS.

       (a) In General.--Paragraph (1) of section 7652(f) is
     amended by striking ``January 1, 2008'' and inserting
     ``January 1, 2009''.
       (b) Effective Date.--The amendment made by this section
     shall apply to distilled spirits brought into the United
     States after December 31, 2007.

     SEC. 12847. DISCLOSURE OF RETURN INFORMATION FOR CERTAIN
                   VETERANS PROGRAMS.

       (a) In General.--The last sentence of paragraph (7) of
     section 6103(l) is amended by striking ``September 30, 2008''
     and inserting ``December 31, 2008''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall apply to requests made after September 30, 2008.

              Subtitle J--Mortgage Forgiveness Debt Relief

     SEC. 12851. DISCHARGES OF INDEBTEDNESS ON PRINCIPAL RESIDENCE
                   EXCLUDED FROM GROSS INCOME.

       (a) In General.--Paragraph (1) of section 108(a) is amended
     by striking ``or'' at the end of subparagraph (C), by
     striking the period at the end of subparagraph (D) and
     inserting ``, or'', and by inserting after subparagraph (D)
     the following new subparagraph:
       ``(E) the indebtedness discharged is qualified principal
     residence indebtedness.''.
       (b) Special Rules Relating to Qualified Principal Residence
     Indebtedness.--Section 108 is amended by adding at the end
     the following new subsection:
       ``(h) Special Rules Relating to Qualified Principal
     Residence Indebtedness.--
       ``(1) Basis reduction.--The amount excluded from gross
     income by reason of subsection (a)(1)(E) shall be applied to
     reduce (but not below zero) the basis of the principal
     residence of the taxpayer.
       ``(2) Qualified principal residence indebtedness.--For
     purposes of this section, the term `qualified principal
     residence indebtedness' means acquisition indebtedness
     (within the meaning of section 163(h)(3)(B), applied by
     substituting `$2,000,000 ($1,000,000' for `$1,000,000
     ($500,000' in clause (ii) thereof) with respect to the
     principal residence of the taxpayer.
       ``(3) Exception for certain discharges not related to
     taxpayer's financial condition.--Subsection (a)(1)(E) shall
     not apply to the discharge of a loan if the discharge is on
     account of services performed for the lender or any other
     factor not directly related to a decline in the value of the
     residence or to the financial condition of the taxpayer.
       ``(4) Ordering rule.--If any loan is discharged, in whole
     or in part, and only a portion of such loan is qualified
     principal residence indebtedness, subsection (a)(1)(E) shall
     apply only to so much of the amount discharged as exceeds the
     amount of the loan (as determined immediately before such
     discharge) which is not qualified principal residence
     indebtedness.
       ``(5) Principal residence.--For purposes of this
     subsection, the term `principal residence' has the same
     meaning as when used in section 121.''.
       (c) Coordination.--
       (1) Subparagraph (A) of section 108(a)(2) is amended by
     striking ``and (D)'' and inserting ``(D), and (E)''.
       (2) Paragraph (2) of section 108(a) is amended by adding at
     the end the following new subparagraph:
       ``(C) Principal residence exclusion takes precedence over
     insolvency exclusion unless elected otherwise.--Paragraph
     (1)(B) shall not apply to a discharge to which paragraph
     (1)(E) applies unless the taxpayer elects to apply paragraph
     (1)(B) in lieu of paragraph (1)(E).''.
       (d) Effective Date.--The amendments made by this section
     shall apply to discharges of indebtedness on or after January
     1, 2007.

     SEC. 12852. LONG-TERM EXTENSION OF DEDUCTION FOR MORTGAGE
                   INSURANCE PREMIUMS.

       (a) In General.--Subparagraph (E) of section 163(h)(3)
     (relating to mortgage insurance premiums treated as interest)
     is amended by striking clauses (iii) and (iv) and inserting
     the following new clause:
       ``(iii) Application.--Clause (i) shall not apply with
     respect to any mortgage insurance contract issued before
     January 1, 2007, or after December 31, 2014.''.

[[Page S14338]]

       (b) Effective Date.--The amendment made by subsection (a)
     shall apply to contracts issued after December 31, 2006.

     SEC. 12853. ALTERNATIVE TESTS FOR QUALIFYING AS COOPERATIVE
                   HOUSING CORPORATION.

       (a) In General.--Subparagraph (D) of section 216(b)(1)
     (defining cooperative housing corporation) is amended to read
     as follows:
       ``(D) meeting 1 or more of the following requirements for
     the taxable year in which the taxes and interest described in
     subsection (a) are paid or incurred:
       ``(i) 80 percent or more of the corporation's gross income
     for such taxable year is derived from tenant-stockholders.
       ``(ii) At all times during such taxable year, 80 percent or
     more of the total square footage of the corporation's
     property is used or available for use by the tenant-
     stockholders for residential purposes or purposes ancillary
     to such residential use.
       ``(iii) 90 percent or more of the expenditures of the
     corporation paid or incurred during such taxable year are
     paid or incurred for the acquisition, construction,
     management, maintenance, or care of the corporation's
     property for the benefit of the tenant-stockholders.''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years ending after the date of the
     enactment of this Act.

     SEC. 12854. GAIN FROM SALE OF PRINCIPAL RESIDENCE ALLOCATED
                   TO NONQUALIFIED USE NOT EXCLUDED FROM INCOME.

       (a) In General.--Subsection (b) of section 121 (relating to
     limitations) is amended by adding at the end the following
     new paragraph:
       ``(4) Exclusion of gain allocated to nonqualified use.--
       ``(A) In general.--Subsection (a) shall not apply to so
     much of the gain from the sale or exchange of property as is
     allocated to periods of nonqualified use.
       ``(B) Gain allocated to periods of nonqualified use.--For
     purposes of subparagraph (A), gain shall be allocated to
     periods of nonqualified use based on the ratio which--
       ``(i) the aggregate periods of nonqualified use during the
     period such property was owned by the taxpayer, bears to
       ``(ii) the period such property was owned by the taxpayer.
       ``(C) Period of nonqualified use.--For purposes of this
     paragraph--
       ``(i) In general.--The term `period of nonqualified use'
     means any period (other than the portion of any period
     preceding January 1, 2008) during which the property is not
     used as the principal residence of the taxpayer or the
     taxpayer's spouse or former spouse.
       ``(ii) Exceptions.--The term `period of nonqualified use'
     does not include--

       ``(I) any portion of the 5-year period described in
     subsection (a) which is after the last date that such
     property is used as the principal residence of the taxpayer
     or the taxpayer's spouse,
       ``(II) any period (not to exceed an aggregate period of 10
     years) during which the taxpayer or the taxpayer's spouse is
     serving on qualified official extended duty (as defined in
     subsection (d)(9)(C)) described in clause (i), (ii), or (iii)
     of subsection (d)(9)(A), and
       ``(III) any other period of temporary absence (not to
     exceed an aggregate period of 2 years) due to change of
     employment, health conditions, or such other unforeseen
     circumstances as may be specified by the Secretary.

       ``(D) Coordination with recognition of gain attributable to
     depreciation.--For purposes of this paragraph--
       ``(i) subparagraph (A) shall be applied after the
     application of subsection (d)(6), and
       ``(ii) subparagraph (B) shall be applied without regard to
     any gain to which subsection (d)(6) applies.''.
       (b) Effective Date.--The amendment made by this section
     shall apply to sales and exchanges after December 31, 2007.

                 Subtitle K--Administrative Provisions

     SEC. 12861. REPEAL OF AUTHORITY TO ENTER INTO PRIVATE DEBT
                   COLLECTION CONTRACTS.

       (a) In General.--Subchapter A of chapter 64 is amended by
     striking section 6306.
       (b) Conforming Amendments.--
       (1) Subchapter B of chapter 76 is amended by striking
     section 7433A.
       (2) Section 7811 is amended by striking subsection (g).
       (3) Section 1203 of the Internal Revenue Service
     Restructuring Act of 1998 is amended by striking subsection
     (e).
       (4) The table of sections for subchapter A of chapter 64 is
     amended by striking the item relating to section 6306.
       (5) The table of sections for subchapter B of chapter 76 is
     amended by striking the item relating to section 7433A.
       (c) Effective Date.--
       (1) In general.--Except as otherwise provided in this
     subsection, the amendments made by this section shall take
     effect on the date of the enactment of this Act.
       (2) Exception for existing contracts, etc.--The amendments
     made by this section shall not apply to any contract which
     was entered into before July 18, 2007, and is not renewed or
     extended on or after such date.
       (3) Unauthorized contracts and extensions treated as
     void.--Any qualified tax collection contract (as defined in
     section 6306 of the Internal Revenue Code of 1986, as in
     effect before its repeal) which is entered into on or after
     July 18, 2007, and any extension or renewal on or after such
     date of any qualified tax collection contract (as so defined)
     shall be void.

     SEC. 12862. DELAY OF APPLICATION OF WITHHOLDING REQUIREMENT
                   ON CERTAIN GOVERNMENTAL PAYMENTS FOR GOODS AND
                   SERVICES.

       (a) In General.--Subsection (b) of section 511 of the Tax
     Increase Prevention and Reconciliation Act of 2005 is amended
     by striking ``December 31, 2010'' and inserting ``December
     31, 2011''.
       (b) Report to Congress.--Not later than 6 months after the
     date of the enactment of this Act, the Secretary of the
     Treasury shall submit to the Committee on Ways and Means of
     the House of Representatives and the Committee on Finance of
     the Senate a report with respect to the withholding
     requirements of section 3402(t) of the Internal Revenue Code
     of 1986, including a detailed analysis of--
       (1) the problems, if any, which are anticipated in
     administering and complying with such requirements,
       (2) the burdens, if any, that such requirements will place
     on governments and businesses (taking into account such
     mechanisms as may be necessary to administer such
     requirements), and
       (3) the application of such requirements to small
     expenditures for services and goods by governments.

     SEC. 12863. CLARIFICATION OF ENTITLEMENT OF VIRGIN ISLANDS
                   RESIDENTS TO PROTECTIONS OF LIMITATIONS ON
                   ASSESSMENT AND COLLECTION OF TAX.

       (a) In General.--Subsection (c) of section 932 (relating to
     treatment of Virgin Islands residents) is amended by adding
     at the end the following new paragraph:
       ``(5) Treatment of income tax return filed with virgin
     islands.--An income tax return filed with the Virgin Islands
     by an individual claiming to be described in paragraph (1)
     for the taxable year shall be treated for purposes of
     subtitle F in the same manner as if such return were an
     income tax return filed with the United States for such
     taxable year. The preceding sentence shall not apply where
     such return is false or fraudulent with the intent to evade
     tax or otherwise is a willful attempt in any manner to defeat
     or evade tax.''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after 1986.

     SEC. 12864. REVISION OF TAX RULES ON EXPATRIATION.

       (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.--All property of a covered expatriate
     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, determined without
     regard to paragraph (3).
       ``(3) Exclusion for certain gain.--
       ``(A) In general.--The amount which would (but for this
     paragraph) be includible in the gross income of any
     individual by reason of paragraph (1) shall be reduced (but
     not below zero) by $600,000.
       ``(B) Adjustment for inflation.--
       ``(i) In general.--In the case of any taxable year
     beginning in a calendar year after 2008, the dollar amount in
     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 the calendar year in which the taxable
     year begins, by substituting `calendar year 2007' for
     `calendar year 1992' in subparagraph (B) thereof.

       ``(ii) Rounding.--If any amount as adjusted under clause
     (i) is not a multiple of $1,000, such amount shall be rounded
     to the nearest multiple of $1,000.
       ``(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 time for payment of the
     additional tax attributable to such property shall be
     extended 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.

[[Page S14339]]

       ``(3) Termination of extension.--The due date for payment
     of tax may not be extended 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 any property unless adequate security is
     provided 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 which is furnished to, and accepted by,
     the Secretary, which is conditioned on the payment of tax
     (and interest thereon), and which meets the requirements of
     section 6325, or
       ``(ii) it is another form of security for such payment
     (including letters of credit) that meets such requirements as
     the Secretary may prescribe.
       ``(5) Waiver of certain rights.--No election may be made
     under paragraph (1) unless the taxpayer makes an irrevocable
     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.
       ``(7) Interest.--For purposes of section 6601, the last
     date for the payment of tax shall be determined without
     regard to the election under this subsection.
       ``(c) Exception for Certain Property.--Subsection (a) shall
     not apply to--
       ``(1) any deferred compensation item (as defined in
     subsection (d)(4)),
       ``(2) any specified tax deferred account (as defined in
     subsection (e)(2)), and
       ``(3) any interest in a nongrantor trust (as defined in
     subsection (f)(3)).
       ``(d) Treatment of Deferred Compensation Items.--
       ``(1) Withholding on eligible deferred compensation
     items.--
       ``(A) In general.--In the case of any eligible deferred
     compensation item, the payor shall deduct and withhold from
     any taxable payment to a covered expatriate with respect to
     such item a tax equal to 30 percent thereof.
       ``(B) Taxable payment.--For purposes of subparagraph (A),
     the term `taxable payment' means with respect to a covered
     expatriate any payment to the extent it would be includible
     in the gross income of the covered expatriate if such
     expatriate continued to be subject to tax as a citizen or
     resident of the United States. A deferred compensation item
     shall be taken into account as a payment under the preceding
     sentence when such item would be so includible.
       ``(2) Other deferred compensation items.--In the case of
     any deferred compensation item which is not an eligible
     deferred compensation item--
       ``(A)(i) with respect to any deferred compensation item to
     which clause (ii) does not apply, an amount equal to the
     present value of the covered expatriate's accrued benefit
     shall be treated as having been received by such individual
     on the day before the expatriation date as a distribution
     under the plan, and
       ``(ii) with respect to any deferred compensation item
     referred to in paragraph (4)(D), the rights of the covered
     expatriate to such item shall be treated as becoming
     transferable and not subject to a substantial risk of
     forfeiture on the day before the expatriation date,
       ``(B) no early distribution tax shall apply by reason of
     such treatment, and
       ``(C) appropriate adjustments shall be made to subsequent
     distributions from the plan to reflect such treatment.
       ``(3) Eligible deferred compensation items.--For purposes
     of this subsection, the term `eligible deferred compensation
     item' means any deferred compensation item with respect to
     which--
       ``(A) the payor of such item is--
       ``(i) a United States person, or
       ``(ii) a person who is not a United States person but who
     elects to be treated as a United States person for purposes
     of paragraph (1) and meets such requirements as the Secretary
     may provide to ensure that the payor will meet the
     requirements of paragraph (1), and
       ``(B) the covered expatriate--
       ``(i) notifies the payor of his status as a covered
     expatriate, and
       ``(ii) makes an irrevocable waiver of any right to claim
     any reduction under any treaty with the United States in
     withholding on such item.
       ``(4) Deferred compensation item.--For purposes of this
     subsection, the term `deferred compensation item' means--
       ``(A) any interest in a plan or arrangement described in
     section 219(g)(5),
       ``(B) any interest in a foreign pension plan or similar
     retirement arrangement or program,
       ``(C) any item of deferred compensation, and
       ``(D) any property, or right to property, which the
     individual is entitled to receive in connection with the
     performance of services to the extent not previously taken
     into account under section 83 or in accordance with section
     83.
       ``(5) Exception.--Paragraphs (1) and (2) shall not apply to
     any deferred compensation item which is attributable to
     services performed outside the United States while the
     covered expatriate was not a citizen or resident of the
     United States.
       ``(6) Special rules.--
       ``(A) Application of withholding rules.--Rules similar to
     the rules of subchapter B of chapter 3 shall apply for
     purposes of this subsection.
       ``(B) Application of tax.--Any item subject to the
     withholding tax imposed under paragraph (1) shall be subject
     to tax under section 871.
       ``(C) Coordination with other withholding requirements.--
     Any item subject to withholding under paragraph (1) shall not
     be subject to withholding under section 1441 or chapter 24.
       ``(e) Treatment of Specified Tax Deferred Accounts.--
       ``(1) Account treated as distributed.--In the case of any
     interest in a specified tax deferred account held by a
     covered expatriate on the day before the expatriation date--
       ``(A) the covered expatriate shall be treated as receiving
     a distribution of his entire interest in such account on the
     day before the expatriation date,
       ``(B) no early distribution tax shall apply by reason of
     such treatment, and
       ``(C) appropriate adjustments shall be made to subsequent
     distributions from the account to reflect such treatment.
       ``(2) Specified tax deferred account.--For purposes of
     paragraph (1), the term `specified tax deferred account'
     means an individual retirement plan (as defined in section
     7701(a)(37)) other than any arrangement described in
     subsection (k) or (p) of section 408, a qualified tuition
     program (as defined in section 529), a Coverdell education
     savings account (as defined in section 530), a health savings
     account (as defined in section 223), and an Archer MSA (as
     defined in section 220).
       ``(f) Special Rules for Nongrantor Trusts.--
       ``(1) In general.--In the case of a distribution (directly
     or indirectly) of any property from a nongrantor trust to a
     covered expatriate--
       ``(A) the trustee shall deduct and withhold from such
     distribution an amount equal to 30 percent of the taxable
     portion of the distribution, and
       ``(B) if the fair market value of such property exceeds its
     adjusted basis in the hands of the trust, gain shall be
     recognized to the trust as if such property were sold to the
     expatriate at its fair market value.
       ``(2) Taxable portion.--For purposes of this subsection,
     the term `taxable portion' means, with respect to any
     distribution, that portion of the distribution which would be
     includible in the gross income of the covered expatriate if
     such expatriate continued to be subject to tax as a citizen
     or resident of the United States.
       ``(3) Nongrantor trust.--For purposes of this subsection,
     the term `nongrantor trust' means the portion of any trust
     that the individual is not considered the owner of under
     subpart E of part I of subchapter J. The determination under
     the preceding sentence shall be made immediately before the
     expatriation date.
       ``(4) Special rules relating to withholding.--For purposes
     of this subsection--
       ``(A) rules similar to the rules of subsection (d)(6) shall
     apply, and
       ``(B) the covered expatriate shall be treated as having
     waived any right to claim any reduction under any treaty with
     the United States in withholding on any distribution to which
     paragraph (1)(A) applies.
       ``(5) Application.--This subsection shall apply to a
     nongrantor trust only if the covered expatriate was a
     beneficiary of the trust on the day before the expatriation
     date.
       ``(g) Definitions and Special Rules Relating to
     Expatriation.--For purposes of this section--
       ``(1) Covered expatriate.--
       ``(A) In general.--The term `covered expatriate' means an
     expatriate who meets the requirements of subparagraph (A),
     (B), or (C) of section 877(a)(2).
       ``(B) Exceptions.--An individual shall not be treated as
     meeting the requirements of subparagraph (A) or (B) of
     section 877(a)(2) if--
       ``(i) 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 been a resident of the United States (as defined
     in section 7701(b)(1)(A)(ii)) for not more than 10 taxable
     years during the 15-taxable year period ending with the
     taxable year during which the expatriation date occurs, or

       ``(ii)(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 10 taxable years
     before the date of relinquishment.
       ``(C) Covered expatriates also subject to tax as citizens
     or residents.--In the case of any covered expatriate who is
     subject to tax as a citizen or resident of the United States
     for any period beginning after the expatriation date, such
     individual shall not be treated as a covered expatriate
     during such

[[Page S14340]]

     period for purposes of subsections (d)(1) and (f) and section
     2801.
       ``(2) Expatriate.--The term `expatriate' means--
       ``(A) any United States citizen who relinquishes his
     citizenship, and
       ``(B) any long-term resident of the United States who
     ceases to be a lawful permanent resident of the United States
     (within the meaning of section 7701(b)(6)).
       ``(3) 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 on which the individual ceases to be a
     lawful permanent resident of the United States (within the
     meaning of section 7701(b)(6)).
       ``(4) Relinquishment of citizenship.--A citizen shall be
     treated as relinquishing his United States citizenship on the
     earliest of--
       ``(A) the date the individual renounces his 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.
       ``(5) Long-term resident.--The term `long-term resident'
     has the meaning given to such term by section 877(e)(2).
       ``(6) Early distribution tax.--The term `early distribution
     tax' means any increase in tax imposed under section 72(t),
     220(e)(4), 223(f)(4), 409A(a)(1)(B), 529(c)(6), or 530(d)(4).
       ``(h) Other Rules.--
       ``(1) Termination of deferrals, etc.--In the case of any
     covered expatriate, notwithstanding any other provision of
     this title--
       ``(A) any time period for acquiring property which would
     result in the reduction in the amount of gain recognized with
     respect to property disposed of by the taxpayer shall
     terminate on the day before the expatriation date, and
       ``(B) 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.
       ``(2) Step-up in basis.--Solely for purposes of determining
     any tax imposed by reason of subsection (a), property which
     was held by an individual on the date the individual first
     became a resident of the United States (within the meaning of
     section 7701(b)) shall be treated as having a basis on such
     date of not less than the fair market value of such property
     on such date. The preceding sentence shall not apply if the
     individual elects not to have such sentence apply. Such an
     election, once made, shall be irrevocable.
       ``(3) Coordination with section 684.--If the expatriation
     of any individual would result in the recognition of gain
     under section 684, this section shall be applied after the
     application of section 684.
       ``(i) Regulations.--The Secretary shall prescribe such
     regulations as may be necessary or appropriate to carry out
     the purposes of this section.''.
       (b) Tax on Gifts and Bequests Received by United States
     Citizens and Residents From Expatriates.--
       (1) In general.--Subtitle B (relating to estate and gift
     taxes) is amended by inserting after chapter 14 the following
     new chapter:

           ``CHAPTER 15--GIFTS AND BEQUESTS FROM EXPATRIATES

``Sec. 2801. Imposition of tax.

     ``SEC. 2801. IMPOSITION OF TAX.

       ``(a) In General.--If, during any calendar year, any United
     States citizen or resident receives any covered gift or
     bequest, there is hereby imposed a tax equal to the product
     of--
       ``(1) the highest rate of tax specified in the table
     contained in section 2001(c) as in effect on the date of such
     receipt (or, if greater, the highest rate of tax specified in
     the table applicable under section 2502(a) as in effect on
     the date), and
       ``(2) the value of such covered gift or bequest.
       ``(b) Tax To Be Paid by Recipient.--The tax imposed by
     subsection (a) on any covered gift or bequest shall be paid
     by the person receiving such gift or bequest.
       ``(c) Exception for Certain Gifts.--Subsection (a) shall
     apply only to the extent that the value of covered gifts and
     bequests received by any person during the calendar year
     exceeds $10,000.
       ``(d) Tax Reduced by Foreign Gift or Estate Tax.--The tax
     imposed by subsection (a) on any covered gift or bequest
     shall be reduced by the amount of any gift or estate tax paid
     to a foreign country with respect to such covered gift or
     bequest.
       ``(e) Covered Gift or Bequest.--
       ``(1) In general.--For purposes of this chapter, the term
     `covered gift or bequest' means--
       ``(A) any property acquired by gift directly or indirectly
     from an individual who, at the time of such acquisition, is a
     covered expatriate, and
       ``(B) any property acquired directly or indirectly by
     reason of the death of an individual who, immediately before
     such death, was a covered expatriate.
       ``(2) Exceptions for transfers otherwise subject to estate
     or gift tax.--Such term shall not include--
       ``(A) any property shown on a timely filed return of tax
     imposed by chapter 12 which is a taxable gift by the covered
     expatriate, and
       ``(B) any property 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.
       ``(3) Transfers in trust.--
       ``(A) Domestic trusts.--In the case of a covered gift or
     bequest made to a domestic trust--
       ``(i) subsection (a) shall apply in the same manner as if
     such trust were a United States citizen, and
       ``(ii) the tax imposed by subsection (a) on such gift or
     bequest shall be paid by such trust.
       ``(B) Foreign trusts.--
       ``(i) In general.--In the case of a covered gift or bequest
     made to a foreign trust, subsection (a) shall apply to any
     distribution attributable to such gift or bequest from such
     trust (whether from income or corpus) to a United States
     citizen or resident in the same manner as if such
     distribution were a covered gift or bequest.
       ``(ii) Deduction for tax paid by recipient.--There shall be
     allowed as a deduction under section 164 the amount of tax
     imposed by this section which is paid or accrued by a United
     States citizen or resident by reason of a distribution from a
     foreign trust, but only to the extent such tax is imposed on
     the portion of such distribution which is included in the
     gross income of such citizen or resident.
       ``(iii) Election to be treated as domestic trust.--Solely
     for purposes of this section, a foreign trust may elect to be
     treated as a domestic trust. Such an election may be revoked
     with the consent of the Secretary.
       ``(f) Covered Expatriate.--For purposes of this section,
     the term `covered expatriate' has the meaning given to such
     term by section 877A(g)(1).''.
       (2) Clerical amendment.--The table of chapters for subtitle
     B is amended by inserting after the item relating to chapter
     14 the following new item:

         ``Chapter 15. Gifts and Bequests From Expatriates.''.

       (c) Definition of Termination of United States
     Citizenship.--
       (1) In general.--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(g)(4).
       ``(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.''.
       (2) Conforming amendments.--
       (A) Paragraph (1) of section 877(e) is amended to read as
     follows:
       ``(1) In general.--Any long-term resident of the United
     States who ceases to be a lawful permanent resident of the
     United States (within the meaning of section 7701(b)(6))
     shall be treated for purposes of this section and sections
     2107, 2501, and 6039G in the same manner as if such resident
     were a citizen of the United States who lost United States
     citizenship on the date of such cessation or commencement.''.
       (B) Paragraph (6) of section 7701(b) is amended by adding
     at the end the following flush sentence:

     ``An individual shall cease to be treated as a lawful
     permanent resident of the United States if such individual
     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, does not waive the benefits
     of such treaty applicable to residents of the foreign
     country, and notifies the Secretary of the commencement of
     such treatment.''.
       (C) Section 7701 is amended by striking subsection (n) and
     by redesignating subsections (o) and (p) as subsections (n)
     and (o), respectively.
       (d) Information Returns.--Section 6039G is amended--
       (1) by inserting ``or 877A'' after ``section 877(b)'' in
     subsection (a), and
       (2) by inserting ``or 877A'' after ``section 877(a)'' in
     subsection (d).
       (e) 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.''.
       (f) Effective Date.--
       (1) In general.--Except as provided in this subsection, the
     amendments made by this section shall apply to expatriates
     (as defined in section 877A(g) of the Internal Revenue

[[Page S14341]]

     Code of 1986, as added by this section) whose expatriation
     date (as so defined) is on or after the date of the enactment
     of this Act.
       (2) Gifts and bequests.--Chapter 15 of the Internal Revenue
     Code of 1986 (as added by subsection (b)) shall apply to
     covered gifts and bequests (as defined in section 2801 of
     such Code, as so added) received on or after the date of the
     enactment of this Act, regardless of when the transferor
     expatriated.

     SEC. 12865. REPEAL OF SUSPENSION OF CERTAIN PENALTIES AND
                   INTEREST.

       (a) In General.--Section 6404 is amended by striking
     subsection (g) and by redesignating subsection (h) as
     subsection (g).
       (b) Effective Date.--The amendment made by subsection (a)
     shall apply to notices provided by the Secretary of the
     Treasury, or his delegate, after the date which is 6 months
     after the date of the enactment of the Small Business and
     Work Opportunity Tax Act of 2007.

     SEC. 12866. UNUSED MERCHANDISE DRAWBACK.

       (a) In General.--Section 313(j)(2) of the Tariff Act of
     1930 (19 U.S.C. 1313(j)(2)) is amended by adding at the end
     the following: ``For purposes of subparagraph (A) of this
     paragraph, wine of the same color having a price variation
     not to exceed 50 percent between the imported wine and the
     exported wine shall be deemed to be commercially
     interchangeable.''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall apply with respect to claims filed for drawback under
     section 313(j)(2) of the Tariff Act of 1930 on or after the
     date of the enactment of this Act.

                     Subtitle L--Revenue Provisions

PART I--NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN TAX INDIFFERENT
                                PARTIES

     SEC. 12901. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN
                   TAX INDIFFERENT PARTIES.

       (a) In General.--Subpart B of part II of subchapter E of
     chapter 1 (relating to taxable year for which items of gross
     income included) is amended by inserting after section 457
     the following new section:

     ``SEC. 457A. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN
                   TAX INDIFFERENT PARTIES.

       ``(a) In General.--Any compensation which is deferred under
     a nonqualified deferred compensation plan of a nonqualified
     entity shall be taken into account for purposes of this
     chapter when there is no substantial risk of forfeiture of
     the rights to such compensation.
       ``(b) Nonqualified Entity.--For purposes of this section,
     the term `nonqualified entity' means--
       ``(1) any foreign corporation unless substantially all of
     such income is--
       ``(A) effectively connected with the conduct of a trade or
     business in the United States, or
       ``(B) subject to a comprehensive foreign income tax, and
       ``(2) any partnership unless substantially all of such
     income is allocated to persons other than--
       ``(A) foreign persons with respect to whom such income is
     not subject to a comprehensive foreign income tax, and
       ``(B) organizations which are exempt from tax under this
     title.
       ``(c) Ascertainability of Amounts of Compensation.--
       ``(1) In general.--If the amount of any compensation is not
     ascertainable at the time that such compensation is otherwise
     to be taken into account under subsection (a)--
       ``(A) such amount shall be so taken into account when
     ascertainable, and
       ``(B) the tax imposed under this chapter for the taxable
     year in which such compensation is taken into account under
     subparagraph (A) shall be increased by the sum of--
       ``(i) the amount of interest determined under paragraph
     (2), and
       ``(ii) an amount equal to 20 percent of the amount of such
     compensation.
       ``(2) Interest.--For purposes of paragraph (1)(B)(i), the
     interest determined under this paragraph for any taxable year
     is the amount of interest at the underpayment rate under
     section 6621 plus 1 percentage point on the underpayments
     that would have occurred had the deferred compensation been
     includible in gross income for the taxable year in which
     first deferred or, if later, the first taxable year in which
     such deferred compensation is not subject to a substantial
     risk of forfeiture.
       ``(d) Other Definitions and Special Rules.--For purposes of
     this section--
       ``(1) Substantial risk of forfeiture.--The rights of a
     person to compensation shall be treated as subject to a
     substantial risk of forfeiture only if such person's rights
     to such compensation are conditioned upon the future
     performance of substantial services by any individual.
       ``(2) Comprehensive foreign income tax.--The term
     `comprehensive foreign income tax' means, with respect to any
     foreign person, the income tax of a foreign country if--
       ``(A) such person is eligible for the benefits of a
     comprehensive income tax treaty between such foreign country
     and the United States, or
       ``(B) such person demonstrates to the satisfaction of the
     Secretary that such foreign country has a comprehensive
     income tax.

     Such term shall not include any tax unless such tax includes
     rules for the deductibility of deferred compensation which
     are similar to the rules of this title.
       ``(3) Nonqualified deferred compensation plan.--The term
     `nonqualified deferred compensation plan' has the meaning
     given such term under section 409A(d), except that such term
     shall include any plan that provides a right to compensation
     based on the appreciation in value of a specified number of
     equity units of the service recipient.
       ``(4) Application of rules.--Rules similar to the rules of
     paragraphs (5) and (6) of section 409A(d) shall apply.
       ``(e) Regulations.--The Secretary shall prescribe such
     regulations as may be necessary or appropriate to carry out
     the purposes of this section, including regulations
     disregarding a substantial risk of forfeiture in cases where
     necessary to carry out the purposes of this section.''.
       (b) Conforming Amendment.--Section 26(b)(2) is amended by
     striking ``and'' at the end of subparagraph (S), by striking
     the period at the end of subparagraph (T) and inserting ``,
     and'', and by adding at the end the following new
     subparagraph:
       ``(U) section 457A(c)(1)(B) (relating to ascertainability
     of amounts of compensation).''.
       (c) Clerical Amendment.--The table of sections of subpart B
     of part II of subchapter E of chapter 1 is amended by
     inserting after the item relating to section 457 the
     following new item:

``Sec. 457A. Nonqualified deferred compensation from certain tax
              indifferent parties.''.
       (d) Effective Date.--
       (1) In general.--Except as otherwise provided in this
     subsection, the amendments made by this section shall apply
     to amounts deferred which are attributable to services
     performed after December 31, 2007.
       (2) Application to existing deferrals.--In the case of any
     amount deferred to which the amendments made by this section
     do not apply solely by reason of the fact that the amount is
     attributable to services performed before January 1, 2008, to
     the extent such amount is not includible in gross income in a
     taxable year beginning before 2017, such amounts shall be
     includible in gross income in the later of--
       (A) the last taxable year beginning before 2017, or
       (B) the taxable year in which there is no substantial risk
     of forfeiture of the rights to such compensation (determined
     in the same manner as determined for purposes of section 457A
     of the Internal Revenue Code of 1986, as added by this
     section).
       (3) Accelerated payments.--No later than 60 days after the
     date of the enactment of this Act, the Secretary shall issue
     guidance providing a limited period of time during which a
     nonqualified deferred compensation arrangement attributable
     to services performed on or before December 31, 2007, may,
     without violating the requirements of section 409A(a) of the
     Internal Revenue Code of 1986, be amended to conform the date
     of distribution to the date the amounts are required to be
     included in income.

     PART II--PROVISIONS RELATED TO CERTAIN INVESTMENT PARTNERSHIPS

     SEC. 12911. INCOME OF PARTNERS FOR PERFORMING INVESTMENT
                   MANAGEMENT SERVICES TREATED AS ORDINARY INCOME
                   RECEIVED FOR PERFORMANCE OF SERVICES.

       (a) In General.--Part I of subchapter K of chapter 1 is
     amended by adding at the end the following new section:

     ``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT
                   MANAGEMENT SERVICES TO PARTNERSHIP.

       ``(a) Treatment of Distributive Share of Partnership
     Items.--For purposes of this title, in the case of an
     investment services partnership interest--
       ``(1) In general.--Notwithstanding section 702(b)--
       ``(A) any net income with respect to such interest for any
     partnership taxable year shall be treated as ordinary income
     for the performance of services, and
       ``(B) any net loss with respect to such interest for such
     year, to the extent not disallowed under paragraph (2) for
     such year, shall be treated as an ordinary loss.
       ``(2) Treatment of losses.--
       ``(A) Limitation.--Any net loss with respect to such
     interest shall be allowed for any partnership taxable year
     only to the extent that such loss does not exceed the excess
     (if any) of--
       ``(i) the aggregate net income with respect to such
     interest for all prior partnership taxable years, over
       ``(ii) the aggregate net loss with respect to such interest
     not disallowed under this subparagraph for all prior
     partnership taxable years.
       ``(B) Carryforward.--Any net loss for any partnership
     taxable year which is not allowed by reason of subparagraph
     (A) shall be treated as an item of loss with respect to such
     partnership interest for the succeeding partnership taxable
     year.
       ``(C) Basis adjustment.--No adjustment to the basis of a
     partnership interest shall be made on account of any net loss
     which is not allowed by reason of subparagraph (A).
       ``(D) Exception for basis attributable to purchase of a
     partnership interest.--In the case of an investment services
     partnership interest acquired by purchase, paragraph (1)(B)
     shall not apply to so much of any net loss with respect to
     such interest for any taxable year as does not exceed the
     excess of--
       ``(i) the basis of such interest immediately after such
     purchase, over
       ``(ii) the aggregate net loss with respect to such interest
     to which paragraph (1)(B) did

[[Page S14342]]

     not apply by reason of this subparagraph for all prior
     taxable years.

     Any net loss to which paragraph (1)(B) does not apply by
     reason of this subparagraph shall not be taken into account
     under subparagraph (A).
       ``(E) Prior partnership years.--Any reference in this
     paragraph to prior partnership taxable years shall only
     include prior partnership taxable years to which this section
     applies.
       ``(3) Net income and loss.--For purposes of this section--
       ``(A) Net income.--The term `net income' means, with
     respect to any investment services partnership interest, for
     any partnership taxable year, the excess (if any) of--
       ``(i) all items of income and gain taken into account by
     the holder of such interest under section 702 with respect to
     such interest for such year, over
       ``(ii) all items of deduction and loss so taken into
     account.
       ``(B) Net loss.--The term `net loss' means with respect to
     such interest for such year, the excess (if any) of the
     amount described in subparagraph (A)(ii) over the amount
     described in subparagraph (A)(i).
       ``(b) Dispositions of Partnership Interests.--
       ``(1) Gain.--Any gain on the disposition of an investment
     services partnership interest shall be treated as ordinary
     income for the performance of services.
       ``(2) Loss.--Any loss on the disposition of an investment
     services partnership interest shall be treated as an ordinary
     loss to the extent of the excess (if any) of--
       ``(A) the aggregate net income with respect to such
     interest for all partnership taxable years, over
       ``(B) the aggregate net loss with respect to such interest
     allowed under subsection (a)(2) for all partnership taxable
     years.
       ``(3) Disposition of portion of interest.--In the case of
     any disposition of an investment services partnership
     interest, the amount of net loss which otherwise would have
     (but for subsection (a)(2)(C)) applied to reduce the basis of
     such interest shall be disregarded for purposes of this
     section for all succeeding partnership taxable years.
       ``(4) Distributions of partnership property.--In the case
     of any distribution of appreciated property by a partnership
     with respect to any investment services partnership interest,
     gain shall be recognized by the partnership in the same
     manner as if the partnership sold such property at fair
     market value at the time of the distribution. For purposes of
     this paragraph, the term `appreciated property' means any
     property with respect to which gain would be determined if
     sold as described in the preceding sentence.
       ``(5) Application of section 751.--In applying section
     751(a), an investment services partnership interest shall be
     treated as an inventory item.
       ``(c) Investment Services Partnership Interest.--For
     purposes of this section--
       ``(1) In general.--The term `investment services
     partnership interest' means any interest in a partnership
     which is held by any person if such person provides (directly
     or indirectly) a substantial quantity of any of the following
     services with respect to the assets of the partnership in the
     conduct of the trade or business of providing such services:
       ``(A) Advising as to the advisability of investing in,
     purchasing, or selling any specified asset.
       ``(B) Managing, acquiring, or disposing of any specified
     asset.
       ``(C) Arranging financing with respect to acquiring
     specified assets.
       ``(D) Any activity in support of any service described in
     subparagraphs (A) through (C).
     For purposes of this paragraph, the term `specified asset'
     means securities (as defined in section 475(c)(2) without
     regard to the last sentence thereof), real estate,
     commodities (as defined in section 475(e)(2))), or options or
     derivative contracts with respect to securities (as so
     defined), real estate, or commodities (as so defined).
       ``(2) Exception for certain capital interests.--
       ``(A) In general.--If--
       ``(i) a portion of an investment services partnership
     interest is acquired on account of a contribution of invested
     capital, and
       ``(ii) the partnership makes a reasonable allocation of
     partnership items between the portion of the distributive
     share that is with respect to invested capital and the
     portion of such distributive share that is not with respect
     to invested capital,

     then subsection (a) shall not apply to the portion of the
     distributive share that is with respect to invested capital.
     An allocation will not be treated as reasonable for purposes
     of this subparagraph if such allocation would result in the
     partnership allocating a greater portion of income to
     invested capital than any other partner not providing
     services would have been allocated with respect to the same
     amount of invested capital.
       ``(B) Special rule for dispositions.--In any case to which
     subparagraph (A) applies, subsection (b) shall not apply to
     any gain or loss allocable to invested capital. The portion
     of any gain or loss attributable to invested capital is the
     proportion of such gain or loss which is based on the
     distributive share of gain or loss that would have been
     allocable to invested capital under subparagraph (A) if the
     partnership sold all of its assets immediately before the
     disposition.
       ``(C) Invested capital.--For purposes of this paragraph,
     the term `invested capital' means, the fair market value at
     the time of contribution of any money or other property
     contributed to the partnership.
       ``(D) Treatment of certain loans.--
       ``(i) Proceeds of partnership loans not treated as invested
     capital of service providing partners.--For purposes of this
     paragraph, an investment services partnership interest shall
     not be treated as acquired on account of a contribution of
     invested capital to the extent that such capital is
     attributable to the proceeds of any loan or other advance
     made or guaranteed, directly or indirectly, by any partner or
     the partnership.
       ``(ii) Loans from nonservice providing partners to the
     partnership treated as invested capital.--For purposes of
     this paragraph, any loan or other advance to the partnership
     made or guaranteed, directly or indirectly, by a partner not
     providing services to the partnership shall be treated as
     invested capital of such partner and amounts of income and
     loss treated as allocable to invested capital shall be
     adjusted accordingly.
       ``(d) Other Income and Gain in Connection With Investment
     Management Services.--
       ``(1) In general.--If--
       ``(A) a person performs (directly or indirectly) investment
     management services for any entity,
       ``(B) such person holds a disqualified interest with
     respect to such entity, and
       ``(C) the value of such interest (or payments thereunder)
     is substantially related to the amount of income or gain
     (whether or not realized) from the assets with respect to
     which the investment management services are performed,

     any income or gain with respect to such interest shall be
     treated as ordinary income for the performance of services.
     Rules similar to the rules of subsection (c)(2) shall apply
     where such interest was acquired on account of invested
     capital in such entity.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) Disqualified interest.--The term `disqualified
     interest' means, with respect to any entity--
       ``(i) any interest in such entity other than indebtedness,
       ``(ii) convertible or contingent debt of such entity,
       ``(iii) any option or other right to acquire property
     described in clause (i) or (ii), and
       ``(iv) any derivative instrument entered into (directly or
     indirectly) with such entity or any investor in such entity.

     Such term shall not include a partnership interest and shall
     not include stock in a taxable corporation.
       ``(B) Taxable corporation.--The term `taxable corporation'
     means--
       ``(i) a domestic C corporation, or
       ``(ii) a foreign corporation subject to a comprehensive
     foreign income tax (as defined in section 457A(d)(4)).
       ``(C) Investment management services.--The term `investment
     management services' means a substantial quantity of any of
     the services described in subsection (c)(1) which are
     provided in the conduct of the trade or business of providing
     such services.
       ``(e) Regulations.--The Secretary shall prescribe such
     regulations as are necessary or appropriate to carry out the
     purposes of this section, including regulations to--
       ``(1) prevent the avoidance of the purposes of this
     section, and
       ``(2) coordinate this section with the other provisions of
     this subchapter.
       ``(f) Cross Reference.--For 40 percent no fault penalty on
     certain underpayments due to the avoidance of this section,
     see section 6662.''.
       (b) Application to Real Estate Investment Trusts.--
     Subsection (c) of section 856 is amended by adding at the end
     the following new paragraph:
       ``(8) Exception from recharacterization of income from
     investment services partnership interests.--
       ``(A) In general.--Paragraphs (2), (3), and (4) shall be
     applied without regard to section 710 (relating to special
     rules for partners providing investment management services
     to partnership).
       ``(B) Special rule for partnerships owned by reits.--
     Section 7704 shall be applied without regard to section 710
     in the case of a partnership which meets each of the
     following requirements:
       ``(i) Such partnership is treated as publicly traded under
     section 7704 solely by reason of interests in such
     partnership being convertible into interests in a real estate
     investment trust which is publicly traded.
       ``(ii) 50 percent or more of the capital and profits
     interests of such partnership are owned, directly or
     indirectly, at all times during the taxable year by such real
     estate investment trust (determined with the application of
     section 267(c)).
       ``(iii) Such partnership meets the requirements of
     paragraphs (2), (3), and (4) (applied without regard to
     section 710).''.
       (c) Imposition of Penalty on Underpayments.--
       (1) In general.--Subsection (b) of section 6662 is amended
     by inserting after paragraph (5) the following new paragraph:
       ``(6) The application of subsection (d) of section 710 or
     the regulations prescribed under section 710(e) to prevent
     the avoidance of the purposes of section 710.''.
       (2) Amount of penalty.--
       (A) In general.--Section 6662 is amended by adding at the
     end the following new subsection:

[[Page S14343]]

       ``(i) Increase in Penalty in Case of Property Transferred
     for Investment Management Services.--In the case of any
     portion of an underpayment to which this section applies by
     reason of subsection (b)(6), subsection (a) shall be applied
     with respect to such portion by substituting `40 percent' for
     `20 percent'.''.
       (B) Conforming amendments.--Subparagraph (B) of section
     6662A(e)(2) is amended--
       (i) by striking ``section 6662(h)'' and inserting
     ``subsection (h) or (i) of section 6662'', and
       (ii) by striking ``gross valuation misstatement penalty''
     in the heading and inserting ``certain increased underpayment
     penalties''.
       (3) Reasonable cause exception not applicable.--Subsection
     (c) of section 6664 is amended--
       (A) by redesignating paragraphs (2) and (3) as paragraphs
     (3) and (4), respectively,
       (B) by striking ``paragraph (2)'' in paragraph (4), as so
     redesignated, and inserting ``paragraph (3)'', and
       (C) by inserting after paragraph (1) the following new
     paragraph:
       ``(2) Exception.--Paragraph (1) shall not apply to any
     portion of an underpayment to which this section applies by
     reason of subsection (b)(6).''.
       (d) Conforming Amendments.--
       (1) Subsection (d) of section 731 is amended by inserting
     ``section 710(b)(4) (relating to distributions of partnership
     property),'' before ``section 736''.
       (2) Section 741 is amended by inserting ``or section 710
     (relating to special rules for partners providing investment
     management services to partnership)'' before the period at
     the end.
       (3) Paragraph (13) of section 1402(a) is amended--
       (A) by striking ``other than guaranteed'' and inserting
     ``other than--
       ``(A) guaranteed'',
       (B) by striking the semi-colon at the end and inserting ``,
     and'', and
       (C) by adding at the end the following new subparagraph:
       ``(B) any income treated as ordinary income under section
     710 received by an individual who provides investment
     management services (as defined in section 710(d)(2));''.
       (4) Paragraph (12) of section 211(a) of the Social Security
     Act is amended--
       (A) by striking ``other than guaranteed'' and inserting
     ``other than--
       ``(A) guaranteed'',
       (B) by striking the semi-colon at the end and inserting ``,
     and'', and
       (C) by adding at the end the following new subparagraph:
       ``(B) any income treated as ordinary income under section
     710 of the Internal Revenue Code of 1986 received by an
     individual who provides investment management services (as
     defined in section 710(d)(2) of such Code);''.
       (5) The table of sections for part I of subchapter K of
     chapter 1 is amended by adding at the end the following new
     item:

``Sec. 710. Special rules for partners providing investment management
              services to partnership.''.
       (e) Effective Date.--
       (1) In general.--Except as otherwise provided in this
     subsection, the amendments made by this section shall apply
     to taxable years ending after November 1, 2007.
       (2) Partnership taxable years which include effective
     date.--In applying section 710(a) of the Internal Revenue
     Code of 1986 (as added by this section) in the case of any
     partnership taxable year which includes November 1, 2007, the
     amount of the net income referred to in such section shall be
     treated as being the lesser of the net income for the entire
     partnership taxable year or the net income determined by only
     taking into account items attributable to the portion of the
     partnership taxable year which is after such date.
       (3) Dispositions of partnership interests.--Section 710(b)
     of the Internal Revenue Code of 1986 (as added by this
     section) shall apply to dispositions and distributions after
     November 1, 2007.
       (4) Other income and gain in connection with investment
     management services.--Section 710(d) of such Code (as added
     by this section) shall take effect on November 1, 2007.
       (5) Publicly traded partnerships.--For purposes of applying
     section 7704, the amendments made by this section shall apply
     to taxable years beginning after December 31, 2009.

     SEC. 12912. INDEBTEDNESS INCURRED BY A PARTNERSHIP IN
                   ACQUIRING SECURITIES AND COMMODITIES NOT
                   TREATED AS ACQUISITION INDEBTEDNESS FOR
                   ORGANIZATIONS WHICH ARE PARTNERS WITH LIMITED
                   LIABILITY.

       (a) In General.--Subsection (c) of section 514 (relating to
     acquisition indebtedness) is amended by adding at the end the
     following new paragraph:
       ``(10) Securities and commodities acquired by partnerships
     in which an organization is a partner with limited
     liability.--
       ``(A) In general.--In the case of any organization which is
     a partner with limited liability in a partnership, the term
     `acquisition indebtedness' does not, for purposes of this
     section, include indebtedness incurred or continued by such
     partnership in purchasing or carrying any qualified security
     or commodity.
       ``(B) Qualified security or commodity.--For purposes of
     this paragraph, the term `qualified security or commodity'
     means any security (as defined in section 475(c)(2) without
     regard to the last sentence thereof), any commodity (as
     defined in section 475(e)(2)), or any option or derivative
     contract with respect to such a security or commodity.
       ``(C) Application to tiered partnerships and other pass-
     thru entities.--Rules similar to the rules of subparagraph
     (A) shall apply in the case of tiered partnerships and other
     pass-thru entities.
       ``(D) Regulations.--The Secretary may prescribe such
     regulations as may be necessary or appropriate to carry out
     the purposes of this paragraph, including regulations to
     prevent the abuse of this paragraph.''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after the date of the
     enactment of this Act.

     SEC. 12913. APPLICATION TO PARTNERSHIP INTERESTS AND TAX
                   SHARING AGREEMENTS OF RULE TREATING CERTAIN
                   GAIN ON SALES BETWEEN RELATED PERSONS AS
                   ORDINARY INCOME.

       (a) Partnership Interests.--Subsection (a) of section 1239
     is amended to read as follows:
       ``(a) Treatment of Gain as Ordinary Income.--In the case of
     a sale or exchange of property, directly or indirectly,
     between related persons, any gain recognized to the
     transferor shall be treated as ordinary income if--
       ``(1) such property is, in the hands of the transferee, of
     a character which is subject to the allowance for
     depreciation provided in section 167, or
       ``(2) such property is an interest in a partnership, but
     only to the extent of gain attributable to unrealized
     appreciation in property which is of a character subject to
     the allowance for depreciation provided in section 167.''.
       (b) Tax Sharing Agreements.--Section 1239 (relating to gain
     from sale of depreciable property between certain related
     taxpayers) is amended by adding at the end the following new
     subsection:
       ``(f) Application to Tax Sharing Agreements.--
       ``(1) In general.--If there is a tax sharing agreement with
     respect to any sale or exchange, the transferee and the
     transferor shall be treated as related persons for purposes
     of this section.
       ``(2) Tax sharing agreement.--For purposes of this
     subsection, the term `tax sharing agreement' means any
     agreement which provides for the payment to the transferor of
     any amount which is determined by reference to any portion of
     the tax benefit realized by the transferee with respect to
     the depreciation (or amortization) of the property
     transferred.''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the
     amendments made by this section shall apply to sales and
     exchanges after the date of the enactment of this Act.
       (2) Exception for binding contracts.--The amendment made by
     subsection (b) shall not apply to any sale or exchange
     pursuant to a written binding contract which includes a tax
     sharing agreement and which is in effect on November 1, 2007,
     and not modified thereafter in any material respect.

                       PART III--OTHER PROVISIONS

     SEC. 12921. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF
                   INTEREST.

       (a) In General.--Paragraphs (5)(D) and (6) of section
     864(f) are each amended by striking ``December 31, 2008'' and
     inserting ``December 31, 2017''.
       (b) Effective Date.--The amendments made by this section
     shall apply to taxable years beginning after December 31,
     2008.

     SEC. 12922. BROKER REPORTING OF CUSTOMER'S BASIS IN
                   SECURITIES TRANSACTIONS.

       (a) In General.--
       (1) Broker reporting for securities transactions.--Section
     6045 (relating to returns of brokers) is amended by adding at
     the end the following new subsection:
       ``(g) Additional Information Required in the Case of
     Securities Transactions.--
       ``(1) In general.--If a broker is otherwise required to
     make a return under subsection (a) with respect to the gross
     proceeds of the sale of a covered security, the broker shall
     include in such return the information described in paragraph
     (2).
       ``(2) Additional information required.--
       ``(A) In general.--The information required under paragraph
     (1) to be shown on a return with respect to a covered
     security of a customer shall include the customer's adjusted
     basis in such security and whether any gain or loss with
     respect to such security is long-term or short-term (within
     the meaning of section 1222).
       ``(B) Determination of adjusted basis.--For purposes of
     subparagraph (A)--
       ``(i) In general.--The customer's adjusted basis shall be
     determined--

       ``(I) in the case of any stock (other than any stock in an
     open-end fund), in accordance with the first-in first-out
     method unless the customer notifies the broker by means of
     making an adequate identification of the stock sold or
     transferred,
       ``(II) in the case of any stock in an open-end fund
     acquired before January 1, 2011, in accordance with any
     acceptable method under section 1012 with respect to the
     account in which such interest is held,
       ``(III) in the case of any stock in an open-end fund
     acquired after December 31, 2010, in

[[Page S14344]]

     accordance with the broker's default method unless the
     customer notifies the broker that he elects another
     acceptable method under section 1012 with respect to the
     account in which such interest is held, and
       ``(IV) in any other case, under the method for making such
     determination under section 1012.

       ``(ii) Exception for wash sales.--Except as otherwise
     provided by the Secretary, the customer's adjusted basis
     shall be determined without regard to section 1091 (relating
     to loss from wash sales of stock or securities) unless the
     transactions occur in the same account with respect to
     identical securities.
       ``(3) Covered security.--For purposes of this subsection--
       ``(A) In general.--The term `covered security' means any
     specified security acquired on or after the applicable date
     if such security--
       ``(i) was acquired through a transaction in the account in
     which such security is held, or
       ``(ii) was transferred to such account from an account in
     which such security was a covered security, but only if the
     broker received a statement under section 6045A with respect
     to the transfer.
       ``(B) Specified security.--The term `specified security'
     means--
       ``(i) any share of stock in a corporation,
       ``(ii) any note, bond, debenture, or other evidence of
     indebtedness,
       ``(iii) any commodity, or contract or derivative with
     respect to such commodity, if the Secretary determines that
     adjusted basis reporting is appropriate for purposes of this
     subsection, and
       ``(iv) any other financial instrument with respect to which
     the Secretary determines that adjusted basis reporting is
     appropriate for purposes of this subsection.
       ``(C) Applicable date.--The term `applicable date' means--
       ``(i) January 1, 2009, in the case of any specified
     security which is stock in a corporation, and
       ``(ii) January 1, 2011, or such later date determined by
     the Secretary in the case of any other specified security.
       ``(4) Open-end fund.--For purposes of this subsection, the
     term `open-end fund' means a regulated investment company (as
     defined in section 851) which is offering for sale or has
     outstanding any redeemable security of which it is the issuer
     and the shares of which are not traded on an established
     securities exchange.''.
       (2) Broker information required with respect to options.--
     Section 6045, as amended by subsection (a), is amended by
     adding at the end the following new subsection:
       ``(h) Application to Options on Covered Securities.--
       ``(1) Exercise of option.--For purposes of this section, in
     the case of any exercise of an option on a covered security
     where the taxpayer is the grantor of the option and the
     option was acquired in the same account as the covered
     security, the amount received for the grant of an option on a
     covered security shall be treated as an adjustment to gross
     proceeds or as an adjustment to basis, as the case may be. A
     similar rule shall apply in the case of the exercise of an
     option where the taxpayer is not the grantor of the option.
       ``(2) Lapse or closing transaction.--For purposes of this
     section, in the case of the lapse (or closing transaction (as
     defined in section 1234(b)(2)(A))) of an option on a covered
     security where the taxpayer is the grantor of the option,
     this section shall apply as if the premium received for such
     option were gross proceeds received on the date of the lapse
     or closing transaction, and the cost (if any) of the closing
     transaction shall be taken into account as adjusted basis. A
     similar rule shall apply in the case of a lapse or closing
     transaction where the taxpayer is not the grantor of the
     option.
       ``(3) Prospective application.--Paragraphs (1) and (2)
     shall not apply to any option which is granted or acquired
     before January 1, 2011.
       ``(4) Covered security.--For purposes of this subsection,
     the term `covered security' shall have the meaning given such
     term in subsection (g)(3).''.
       (3) Extension of period for statements sent to customers.--
       (A) In general.--Subsection (b) of section 6045 is amended
     by striking ``January 31'' and inserting ``February 15''.
       (B) Statements related to substitute payments.--Subsection
     (d) of section 6045 is amended--
       (i) by striking ``at such time and'', and
       (ii) by inserting after ``other item.'' the following new
     sentence: ``The written statement required under the
     preceding sentence shall be furnished on or before February
     15 of the year following the calendar year during which such
     payment was made.''.
       (C) Other statements.--Subsection (b) of section 6045 is
     amended by adding at the end the following: ``In the case of
     a consolidated reporting statement (as defined in
     regulations) with respect to any account which includes the
     statement required by this subsection, any statement which
     would otherwise be required to be furnished on or before
     January 31 under section 6042(c), 6049(c)(2)(A), or 6050N(b)
     with respect to any item in such account shall instead be
     required to be furnished on or before February 15 if
     furnished as part of such consolidated reporting
     statement.''.
       (b) Determination of Basis of Certain Securities on Account
     by Account Method.--Section 1012 (relating to basis of
     property-cost) is amended--
       (1) by striking ``The basis of property'' and inserting the
     following:
       ``(a) In General.--The basis of property'',
       (2) by striking ``The cost of real property'' and inserting
     the following:
       ``(b) Special Rule for Apportioned Real Estate Taxes.--The
     cost of real property'', and
       (3) by adding at the end the following new subsection:
       ``(c) Determinations by Account.--
       ``(1) In general.--In the case of the sale, exchange, or
     other disposition of a specified security on or after the
     applicable date, the conventions prescribed by regulations
     under this section shall be applied on an account by account
     basis.
       ``(2) Application to open-end funds.--
       ``(A) In general.--Except as provided in subparagraph (B),
     any stock in an open-end fund acquired before January 1,
     2009, shall be treated as a separate account from any such
     stock acquired on or after such date.
       ``(B) Election by open-end fund for treatment as single
     account.--If an open-end fund elects (at such time and in
     such form and manner as the Secretary may prescribe) to have
     this subparagraph apply with respect to one or more of its
     stockholders--
       ``(i) subparagraph (A) shall not apply with respect to any
     stock in such fund held by such stockholders, and
       ``(ii) all stock in such fund which is held by such
     stockholders shall be treated as covered securities described
     in section 6045(g)(3) without regard to the date of the
     acquisition of such stock.
       ``(3) Definitions.--For purposes of this section, the terms
     `specified security', `applicable date', and `open-end fund'
     shall have the meaning given such terms in section
     6045(g).''.
       (c) Information by Transferors To Aid Brokers.--
       (1) In general.--Subpart B of part III of subchapter A of
     chapter 61 is amended by inserting after section 6045 the
     following new section:

     ``SEC. 6045A. INFORMATION REQUIRED IN CONNECTION WITH
                   TRANSFERS OF COVERED SECURITIES TO BROKERS.

       ``(a) Furnishing of Information.--Every applicable person
     which transfers to a broker (as defined in section
     6045(c)(1)) a security which is a covered security (as
     defined in section 6045(g)(3)) in the hands of such
     applicable person shall furnish to such broker a written
     statement in such manner and setting forth such information
     as the Secretary may by regulations prescribe for purposes of
     enabling such broker to meet the requirements of section
     6045(g).
       ``(b) Applicable Person.--For purposes of subsection (a),
     the term `applicable person' means--
       ``(1) any broker (as defined in section 6045(c)(1)), and
       ``(2) any other person as provided by the Secretary in
     regulations.
       ``(c) Time for Furnishing Statement.--Any statement
     required by subsection (a) shall be furnished not later than
     the earlier of--
       ``(1) 45 days after the date of the transfer described in
     subsection (a), or
       ``(2) January 15 of the year following the calendar year
     during which such transfer occurred.''.
       (2) Assessable penalties.--Paragraph (2) of section 6724(d)
     (defining payee statement) is amended by redesignating
     subparagraphs (I) through (CC) as subparagraphs (J) through
     (DD), respectively, and by inserting after subparagraph (H)
     the following new subparagraph:
       ``(I) section 6045A (relating to information required in
     connection with transfers of covered securities to
     brokers).''.
       (3) Clerical amendment.--The table of sections for subpart
     B of part III of subchapter A of chapter 61 is amended by
     inserting after the item relating to section 6045 the
     following new item:

``Sec. 6045A. Information required in connection with transfers of
              covered securities to brokers.''.
       (d) Additional Issuer Information To Aid Brokers.--
       (1) In general.--Subpart B of part III of subchapter A of
     chapter 61 of the Internal Revenue Code of 1986, as amended
     by subsection (b), is amended by inserting after section
     6045A the following new section:

     ``SEC. 6045B. RETURNS RELATING TO ACTIONS AFFECTING BASIS OF
                   SPECIFIED SECURITIES.

       ``(a) In General.--According to the forms or regulations
     prescribed by the Secretary, any issuer of a specified
     security shall make a return setting forth--
       ``(1) a description of any organizational action which
     affects the basis of such specified security of such issuer,
       ``(2) the quantitative effect on the basis of such
     specified security resulting from such action, and
       ``(3) such other information as the Secretary may
     prescribe.
       ``(b) Time for Filing Return.--Any return required by
     subsection (a) shall be filed not later than the earlier of--
       ``(1) 45 days after the date of the action described in
     subsection (a), or
       ``(2) January 31 of the year following the calendar year
     during which such action occurred.
       ``(c) Statements To Be Furnished to Holders of Specified
     Securities or Their Nominees.--According to the forms or
     regulations prescribed by the Secretary, every

[[Page S14345]]

     person required to make a return under subsection (a) with
     respect to a specified security shall furnish to the nominee
     with respect to the specified security (or certificate holder
     if there is no nominee) a written statement showing--
       ``(1) the name, address, and phone number of the
     information contact of the person required to make such
     return,
       ``(2) the information required to be shown on such return
     with respect to such security, and
       ``(3) such other information as the Secretary may
     prescribe.

     The written statement required under the preceding sentence
     shall be furnished to the holder on or before January 31 of
     the year following the calendar year during which the action
     described in subsection (a) occurred.
       ``(d) Specified Security.--For purposes of this section,
     the term `specified security' has the meaning given such term
     by section 6045(g)(3)(B). No return shall be required under
     this section with respect to actions described in subsection
     (a) with respect to a specified security which occur before
     the applicable date (as defined in section 6045(g)(3)(C) with
     respect to such security.
       ``(e) Public Reporting in Lieu of Return.--The Secretary
     may waive the requirements under subsections (a) and (c) with
     respect to a specified security, if the person required to
     make the return under subsection (a) makes publicly
     available, in such form and manner as the Secretary
     determines necessary to carry out the purposes of this
     section--
       ``(1) the name, address, phone number, and email address of
     the information contact of such person, and
       ``(2) the information described in paragraphs (1), (2), and
     (3) of subsection (a).''.
       (2) Assessable penalties.--
       (A) Subparagraph (B) of section 6724(d)(1) of such Code
     (defining information return) is amended by redesignating
     clauses (iv) through (xix) as clauses (v) through (xx),
     respectively, and by inserting after clause (iii) the
     following new clause:
       ``(iv) section 6045B(a) (relating to returns relating to
     actions affecting basis of specified securities),''.
       (B) Paragraph (2) of section 6724(d) of such Code (defining
     payee statement), as amended by subsection (c)(2), is amended
     by redesignating subparagraphs (J) through (DD) as
     subparagraphs (K) through (EE), respectively, and by
     inserting after subparagraph (I) the following new
     subparagraph:
       ``(J) subsections (c) and (e) of section 6045B (relating to
     returns relating to actions affecting basis of specified
     securities).''.
       (3) Clerical amendment.--The table of sections for subpart
     B of part III of subchapter A of chapter 61 of such Code, as
     amended by subsection (b)(3), is amended by inserting after
     the item relating to section 6045A the following new item:

``Sec. 6045B. Returns relating to actions affecting basis of specified
              securities.''.
       (e) Effective Date.--The amendments made by this section
     shall take effect on January 1, 2009.

     SEC. 12923. MODIFICATION OF PENALTY FOR FAILURE TO FILE
                   PARTNERSHIP RETURNS.

       Section 6698 is amended by adding at the end the following
     new subsection:
       ``(e) Modifications.--In the case of any return required to
     be filed after the date of the enactment of this subsection--
       ``(1) the dollar amount in effect under subsection (b)(1)
     shall be increased by $25, and
       ``(2) the limitation on the number of months taken into
     account under subsection (a) shall not be less than 12
     months.''.

     SEC. 12924. PENALTY FOR FAILURE TO FILE S CORPORATION
                   RETURNS.

       (a) In General.--Part I of subchapter B of chapter 68
     (relating to assessable penalties) is amended by adding at
     the end the following new section:

     ``SEC. 6699A. FAILURE TO FILE S CORPORATION RETURN.

       ``(a) General Rule.--In addition to the penalty imposed by
     section 7203 (relating to willful failure to file return,
     supply information, or pay tax), if any S corporation
     required to file a return under section 6037 for any taxable
     year--
       ``(1) fails to file such return at the time prescribed
     therefor (determined with regard to any extension of time for
     filing), or
       ``(2) files a return which fails to show the information
     required under section 6037,

     such S corporation shall be liable for a penalty determined
     under subsection (b) for each month (or fraction thereof)
     during which such failure continues (but not to exceed 12
     months), unless it is shown that such failure is due to
     reasonable cause.
       ``(b) Amount Per Month.--For purposes of subsection (a),
     the amount determined under this subsection for any month is
     the product of--
       ``(1) $25, multiplied by
       ``(2) the number of persons who were shareholders in the S
     corporation during any part of the taxable year.
       ``(c) Assessment of Penalty.--The penalty imposed by
     subsection (a) shall be assessed against the S corporation.
       ``(d) Deficiency Procedures Not to Apply.--Subchapter B of
     chapter 63 (relating to deficiency procedures for income,
     estate, gift, and certain excise taxes) shall not apply in
     respect of the assessment or collection of any penalty
     imposed by subsection (a).''.
       (b) Clerical Amendment.--The table of sections for part I
     of subchapter B of chapter 68 is amended by adding at the end
     the following new item:

``Sec. 6699A. Failure to file S corporation return.''.
       (c) Effective Date.--The amendments made by this section
     shall apply to returns required to be filed after the date of
     the enactment of this Act.

     SEC. 12925. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       Subparagraph (B) of section 401(1) of the Tax Increase
     Prevention and Reconciliation Act of 2005 is amended by
     striking ``115 percent'' and inserting ``181 percent''.
                                 ______

  SA 3643. Mr. CORNYN (for himself and Mr. Gregg) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

       On page 1362, after line 19, insert the following:

     SEC. __. POINT OF ORDER AGAINST LEGISLATION THAT RAISES
                   INCOME TAX RATES.

       (a) In General.--It shall not be in order in the Senate to
     consider any bill, resolution, amendment, amendment between
     Houses, motion, or conference report that includes a Federal
     income tax rate increase.
       (b) Federal Income Tax Rate Defined.--In this section, the
     term ``Federal income tax rate increase'' means any amendment
     to subsection (a), (b), (c), (d), or (e) of section 1, or to
     section 11(b) or 55(b), of the Internal Revenue Code of 1986,
     that imposes a new percentage as a rate of tax and thereby
     increases the amount of tax imposed by any such section.
       (c) Supermajority Waiver and Appeal.--
       (1) Waiver.--This section may be waived or suspended in the
     Senate only by an affirmative vote of three-fifths of the
     Members, duly chosen and sworn.
       (2) Appeal.--An affirmative vote of three-fifths of the
     Members of the Senate, duly chosen and sworn, shall be
     required in the Senate to sustain an appeal of the ruling of
     the Chair on a point of order raised under this section.
                                 ______

  SA 3644. Mr. CORNYN submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       On page 626, line 7, insert ``(including childhood
     obesity)'' after ``obesity''.
                                 ______

  SA 3645. Mr. ENSIGN submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       Beginning on page 210, strike line 20 and all that follows
     through page 211, line 19, and insert the following:
       ``(1) Programs.--
       ``(A) Commodity programs.--Notwithstanding any other
     provision of law, an individual or entity shall not be
     eligible to receive any benefit described in paragraph (2)(A)
     during a crop year if the average adjusted gross income of
     the individual or entity exceeds $200,000.
       ``(B) Conservation programs.--Not-
       On page 212, lines 6 and 7, strike ``Subparagraphs (A) and
     (B) of paragraph (1)'' and insert ``Paragraph (1)(A)''.
       On page 212, line 21, strike ``(1)(C)'' and inserting
     ``(1)(B)''.
                                 ______

  SA 3646. Mr. INOUYE (for himself, Mr. Roberts, Mr. Lott, Mr.
Lautenberg, Mr. Smith, and Mr. Vitter) submitted an amendment intended
to be proposed to amendment SA 3500 proposed by Mr. Harkin (for
himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R.
2419, to provide for the continuation of agricultural programs through
fiscal year 2012, and for other purposes; which was ordered to lie on
the table; as follows:

       On page 525, strike lines 1 through 4 and insert the
     following: ``Chapter 9 of part I of the Foreign Assistance
     Act of 1961 (22 U.S.C. 2292)''.

     SEC. 3014. PILOT PROGRAM FOR LOCAL PURCHASE.

       Chapter 9 of part I of the Foreign Assistance Act of 1961
     (22 U.S.C. 2292 et seq.) is amended by adding at the end the
     following:

     ``SEC. 495L. PILOT PROGRAM FOR LOCAL PURCHASE OF ELIGIBLE
                   COMMODITIES.

       On page 525, between lines 5 and 6, insert the following:
       ``(1) Administrator.--The term `Administrator' means the
     Administrator of the Agency for International Development.

[[Page S14346]]

       On page 525, lines 6 and 7, strike ``Notwithstanding
     section 402(2), the term'' and insert ``The term''.
       On page 525, line 17, insert ``of the Food for Peace Act''
     after ``section 202(d)''.
       On page 526, lines 4 through 6, strike ``Notwithstanding
     section 407(c)(1)(A), the Administrator, in consultation with
     the Secretary'' and insert ``The Administrator''.
       On page 527, lines 5 and 6, strike ``Subject to subsections
     (a), (b), (f), and (h) of section 403, eligible commodities''
     and insert ``Eligible commodities''.
       On page 529, strike lines 10 through 12.
       On page 534, strike lines 1 through 11 and insert the
     following:
       ``(k) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated
     up to $25,000,000 for each of the fiscal years 2008 through
     2011 to carry out this section.
       ``(2) Availability.--Any amounts appropriated pursuant to
     paragraph (1) shall remain available until expended.''.
                                 ______

  SA 3647. Mr. FEINGOLD submitted an amendment intended to be proposed
to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       On page 563, between lines 15 and 16, insert the following:

     SEC. 320__. REPORT ON THE IMPORTATION OF HIGH PROTEIN FOOD
                   INGREDIENTS.

       (a) In General.--Not later than 180 days after the date of
     enactment of this Act, the Secretary and the Secretary of
     Health and Human Services (acting through the Commissioner of
     Food and Drugs), in consultation with the heads of other
     appropriate Federal agencies, shall jointly submit to
     Congress a report on imports of high protein food ingredients
     (including gluten, casein, and milk protein concentrate) into
     the United States during the 5-year period preceding the date
     of enactment of this Act.
       (b) Components.--The report required under subsection (a)
     shall include--
       (1) a description of--
       (A) the quantity of each high protein food ingredient
     imported into the United States; and
       (B) the source of the high protein food ingredients being
     imported;
       (2) an accounting of the percentage of imports in each
     category and subcategory of high protein food ingredients
     that were inspected, including whether the inspections were--
       (A) basic or visual inspections; or
       (B) more intensive inspections or laboratory analyses;
       (3) an evaluation of--
       (A) whether the laboratory tests conducted on high protein
     food ingredients were able to detect adulteration with other
     high nitrogen compounds, such as melamine; and
       (B) if some of the laboratory tests were sensitive and
     others were not sensitive, the number and results for each
     sensitivity; and
       (4) a survey of whether high protein food ingredients were
     imported for food uses or non-food uses, including an
     analysis of--
       (A) whether the food uses were animal or human food uses;
     and
       (B) whether any non-food or animal feed products could have
     entered the human food supply, including an analysis of any
     safeguards to prevent such products from entering the human
     food supply.
       (c) Availability.--As soon as practicable after the
     completion of the report under subsection (a), the Secretary
     and the Secretary of Health and Human Services shall make the
     report available to the public.
                                 ______

  SA 3648. Mr. FEINGOLD (for himself and Mr. Kohl) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

       On page 1208, between lines 10 and 11, insert the
     following:

     SEC. 10004. DISCLOSURE OF COUNTRY OF HARVEST FOR GINSENG.

       (a) In General.--The Agricultural Marketing Act of 1946 (7
     U.S.C. 1621 et seq.) is amended by adding at the end the
     following:

                         ``Subtitle E--Ginseng

     ``SEC. 291. DISCLOSURE OF COUNTRY OF HARVEST.

       ``(a) Definitions.--In this section:
       ``(1) Ginseng.--The term `ginseng' means a plant classified
     within the genus Panax.
       ``(2) Raw agricultural commodity.--The term `raw
     agricultural commodity' has the meaning given the term in
     section 201 of the Federal Food, Drug, and Cosmetic Act (21
     U.S.C. 321).
       ``(3) Secretary.--The term `Secretary' means the Secretary
     of Agriculture.
       ``(b) Disclosure.--
       ``(1) In general.--A person that offers ginseng for sale as
     a raw agricultural commodity shall disclose to a potential
     purchaser the country of harvest of the ginseng.
       ``(2) Importation.--A person that imports ginseng as a raw
     agricultural commodity into the United States shall disclose
     at the point of entry into the United States, in accordance
     with section 304 of the Tariff Act of 1930 (19 U.S.C. 1304),
     the country in which the ginseng was harvested.
       ``(c) Manner of Disclosure.--
       ``(1) In general.--The disclosure required by subsection
     (b) shall be provided to a potential purchaser by means of a
     label, stamp, mark, placard, or other easily legible and
     visible sign on the ginseng or on the package, display,
     holding unit, or bin containing the ginseng.
       ``(2) Retailers.--A retailer of ginseng as a raw
     agricultural commodity shall--
       ``(A) retain the means of disclosure provided under
     subsection (b); and
       ``(B) provide the received means of disclosure to a
     consumer of ginseng.
       ``(3) Regulations.--The Secretary shall by regulation
     prescribe with specificity the manner in which disclosure
     shall be made in a transaction at the wholesale or retail
     level (including a transaction by mail, telephone, internet,
     or in retail stores).
       ``(d) Fines.--The Secretary may, after providing notice and
     an opportunity for a hearing before the Secretary, fine a
     person subject to subsection (b), or a person supplying
     ginseng to such a person, in an amount of not more than
     $1,000 for each violation if the Secretary determines that
     the person--
       ``(1) has not made a good faith effort to comply with
     subsection (b); and
       ``(2) continues to willfully violate subsection (b).
       ``(e) Information.--The Secretary shall make information
     available to wholesalers, importers, retailers, trade
     associations, and other interested persons concerning the
     requirements of this section (including regulations
     promulgated to carry out this section).''.
       (b) Effective Date.--This section and the amendments made
     by this section take effect on the date that is 180 days
     after the date of enactment of this Act.
                                 ______

  SA 3649. Mr. KERRY (for himself, Mr. Kennedy, Ms. Snowe, Mr. Gregg,
Mr. Sununu, Mr. Reed, and Ms. Collins) submitted an amendment intended
to be proposed by him to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following new section:

     SEC. __. FISHERY FAILURE OF THE NORTHEAST GROUNDFISH.

       (a) Findings.--Congress makes the following findings:
       (1) The Secretary of Commerce may provide fishery disaster
     assistance under section 312(a) of the Magnuson-Stevens
     Fishery Conservation and Management Act (16 U.S.C. 1861a(a))
     if the Secretary determines that there is a commercial
     fishery failure due to a fishery resource disaster as a
     result of--
       (A) natural causes;
       (B) man-made causes beyond the control of fishery managers
     to mitigate through conservation and management measures,
     including regulatory restrictions imposed to protect human
     health or the marine environment; or
       (C) undetermined causes.
       (2) The Secretary of Commerce has not proposed or
     promulgated regulations to implement such section 312(a).
       (3) During 2007, the Governors of each of the Commonwealth
     of Massachusetts, the State of Maine, and the State of Rhode
     Island requested that the Secretary of Commerce declare a
     commercial fishery failure for the groundfish fishery under
     such section 312(a) and the Governor of the State of New
     Hampshire has indicated his intention of submitting a similar
     request.
       (4) Since 1996, the Secretary of Commerce has had
     regulations in place that require significant restrictions
     and reductions on the catch and days-at-sea of New England
     fishermen in the groundfish fishery.
       (5) New England fishermen in the groundfish fishery have
     endured additional restrictions and reductions under
     Framework 42, which has resulted in many fishermen having
     just 24 days to fish during a season.
       (6) Framework 42 and other Federal fishing restrictions
     have had a great impact on small-boat fishermen, many of whom
     cannot safely fish beyond the inshore areas. As of the date
     of the enactment of this Act, each day-at-sea a fisherman
     spends in an inshore area reduces that fisherman's number of
     available days-at-sea by 2 days.
       (7) The Commonwealth of Massachusetts has provided
     information to the Secretary of Commerce demonstrating that--
       (A) between 1994 and 2006, overall conditions of groundfish
     stocks have not improved and that spawning stock biomass is
     near record lows for most major groundfish stocks; and
       (B) between 2005 and 2006, total Massachusetts commercial
     groundfish vessel revenues (landings) decreased by 18 percent
     and there was a loss for related industries and communities
     estimated at $22,000,000.
       (8) The State of Maine has provided information to the
     Secretary of Commerce indicating that--
       (A) since 1994, the impact of groundfish regulations has
     eliminated 50 percent of Maine's groundfish fleet, leaving
     just 110 active groundfish fishermen;
       (B) between 1996 and 2006, there was a 58 percent decrease
     in groundfish landings in

[[Page S14347]]

     Maine and a 45 percent decrease in groundfish revenue, from
     approximately $27,000,000 to $15,000,000; and
       (C) between 2005 and 2006, groundfish revenues decreased 25
     percent.
       (9) The State of Rhode Island has provided information to
     the Secretary of Commerce indicating that--
       (A) since 1994, there has been a 66 percent drop in Rhode
     Island's groundfish fishery landings; and
       (B) between 1995 and 2007, groundfish revenue decreased 20
     percent from approximately $7,500,000 to $6,000,000.
       (10) The Secretary of Commerce rejected requests from
     Massachusetts, Maine, and Rhode Island to declare a
     commercial fishery failure prior to establishing any
     appropriate standard to implement section 312(a) of the
     Magnuson-Stevens Fishery Conservation and Management Act.
       (11) For centuries, growth in New England's commercial
     fishing industry has been intertwined with the history and
     economic growth of the New England States and has created
     thousands of jobs in both fishing and fishing-related
     industries for generations of New England residents.
       (b) Sense of Congress.--It is the sense of Congress that
     the Secretary of Commerce should--
       (1) reconsider the October 22, 2007 decision to deny the
     requests of the Commonwealth of Massachusetts, the State of
     Maine, and the State of Rhode Island for a groundfish fishery
     failure declaration;
       (2) look favorably upon the request of the State of New
     Hampshire for a groundfish fishery failure declaration; and
       (3) immediately propose regulations to implement section
     312(a) of the Magnuson-Stevens Fishery Conservation and
     Management Act (16 U.S.C. 1861a(a)).
                                 ______

  SA 3650. Mrs. HUTCHISON submitted an amendment intended to be
proposed to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

       On page 1192, strike line 13 and insert the following:

     ``SEC. 9023. RENEWABLE ENERGY INITIATIVE.

       ``(a) In General.--The Secretary, in consultation with the
     Secretary of Energy, shall provide competitive grants to
     consortia of institutions of higher education to assist the
     consortia with the conduct of--
       ``(1) studies on, and the development of engineering
     designs for, the production of advanced biofuel, biobutanol,
     and biodiesel from regional bioresources;
       ``(2) studies to develop systems for the commercial
     production of biofuel feedstocks from rice, other crops, and
     other agriculture residue;
       ``(3) pilot plant demonstration projects for advanced
     biofuel production and biodiesel production;
       ``(4) research on biofuel distribution systems; and
       ``(5) educational activities relating to renewable energy
     science and technology.
       ``(b) Provision of Grants.--
       ``(1) Applications.--The Secretary shall solicit from
     individual institutions of higher education and consortia of
     institutions of higher education applications for projects
     eligible for grants under this section.
       ``(2) Priority.--In providing grants under this section,
     the Secretary shall give priority to individual institutions
     of higher education and consortia of institutions of higher
     education that have--
       ``(A) resources for, and expertise in, renewable energy
     research and production;
       ``(B) significant experience in working with agricultural
     producers;
       ``(C) access to land and biofeedstocks;
       ``(D) the ability to study methods for reducing lifecycle
     greenhouse gas emissions;
       ``(E) demonstrated a willingness to contribute significant
     in-kind resources; and
       ``(F) engineering and research knowledge and experience
     relating to biofuels or the production of inputs for biofuel
     production.
       ``(c) Authorization of Appropriations.--There are
     authorized to be appropriated such sums as are necessary to
     carry out this section for each of fiscal years 2008 through
     2012, to remain available until expended.

     ``SEC. 9024. FUTURE FARMSTEADS PROGRAM.

                                 ______

  SA 3651. Mr. CORKER (for himself and Mr. Alexander) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

       On page 1500, between lines 10 and 11, insert the
     following:

                PART V--COMPETITIVE CERTIFICATION AWARDS

     SEC. 12701. COMPETITIVE CERTIFICATION AWARDS MODIFICATION
                   AUTHORITY.

       (a) In General.--Section 48A (relating to qualifying
     advanced coal project credit) is amended by adding at the end
     the following new subsection:
       ``(h) Competitive Certification Awards Modification
     Authority.--In implementing this section or section 48B, the
     Secretary is directed to modify the terms of any competitive
     certification award and any associated closing agreement
     where such modification--
       ``(1) is consistent with the objectives of such section,
     and
       ``(2) is requested by the recipient of the competitive
     certification award,

     unless the Secretary determines that the dollar amount of tax
     credits available to the taxpayer under such section would
     increase, or that the net public benefits associated with the
     original application would be reduced, as a result of the
     modification. In considering any such modification, the
     Secretary shall consult with other relevant Federal agencies,
     including the Department of Energy.''.
       (b) Effective Date.--The amendment made by this section
     shall take effect on the date of the enactment of this Act
     and is applicable to all competitive certification awards
     entered into under section 48A or 48B of the Internal Revenue
     Code of 1986, whether such awards were issued before, on, or
     after such date of enactment.
                                 ______

  SA 3652. Mr. LAUTENBERG (for himself, Mrs. Dole, and Mr. Smith)
submitted an amendment intended to be proposed to amendment SA 3500
proposed by Mr. Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr.
Grassley) to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

       On page 692, between lines 17 and 18, insert the following:

     SEC. 49__. FOOD EMPLOYMENT EMPOWERMENT AND DEVELOPMENT
                   PROGRAM.

       (a) Definitions.--In this section:
       (1) Eligible entity.--The term ``eligible entity'' means an
     entity that meets the requirements of subsection (b)(2).
       (2) Vulnerable subpopulation.--
       (A) In general.--The term ``vulnerable subpopulation''
     means low-income individuals, unemployed individuals, and
     other subpopulations identified by the Secretary as being
     likely to experience special risks from hunger or a special
     need for job training.
       (B) Inclusions.--The term ``vulnerable subpopulation''
     includes--
       (i) addicts (as defined in section 102 of the Controlled
     Substances Act (21 U.S.C. 802));
       (ii) at-risk youths (as defined in section 1432 of the
     Elementary and Secondary Education Act of 1965 (20 U.S.C.
     6472));
       (iii) individuals that are basic skills deficient (as
     defined in section 101 of the Workforce Investment Act of
     1998 (29 U.S.C. 2801));
       (iv) homeless individuals (as defined in section 17(b) of
     the Child Nutrition Act of 1966 (42 U.S.C. 1786(b));
       (v) homeless youths (as defined in section 387 of the
     Runaway and Homeless Youth Act (42 U.S.C. 5732a));
       (vi) individuals with disabilities (as defined in section 3
     of the Americans with Disabilities Act of 1990 (42 U.S.C.
     12102));
       (vii) low-income individuals (as defined in section 101 of
     the Workforce Investment Act of 1998 (29 U.S.C. 2801)); and
       (viii) older individuals (as defined in section 102 of the
     Older Americans Act of 1965 (42 U.S.C. 3002)).
       (b) Food Employment Empowerment and Development Program.--
       (1) Establishment.--The Secretary shall establish a food
     employment empowerment and development program under which
     the Secretary shall make grants to eligible entities to
     encourage the effective use of community resources to combat
     hunger and the root causes of hunger by creating opportunity
     through food recovery and job training.
       (2) Eligible entities.--To be eligible to receive a grant
     under this section, an entity shall be a public agency, or
     private nonprofit institution, that conducts, or will
     conduct, 2 or more of the following activities as an integral
     part of the normal operation of the entity:
       (A) Recovery of donated food from area restaurants,
     caterers, hotels, cafeterias, farms, or other food service
     businesses.
       (B) Distribution of meals or recovered food to--
       (i) nonprofit organizations described in section 501(c)(3)
     of the Internal Revenue Code of 1986;
       (ii) entities that feed vulnerable subpopulations; and
       (iii) other agencies considered appropriate by the
     Secretary.
       (C) Training of unemployed and underemployed adults for
     careers in the food service industry.
       (D) Carrying out of a welfare-to-work job training program
     in combination with--
       (i) production of school meals, such as school meals served
     under the Richard B. Russell National School Lunch Act (42
     U.S.C. 1751 et seq.) or the Child Nutrition Act of 1966 (42
     U.S.C. 1771 et seq.); or
       (ii) support for after-school programs, such as programs
     conducted by community learning centers (as defined in
     section 4201(b) of the Elementary and Secondary Education Act
     of 1965 (20 U.S.C. 7171(b))).
       (3) Use of funds.--An eligible entity may use a grant
     awarded under this section for--
       (A) capital investments related to the operation of the
     eligible entity;

[[Page S14348]]

       (B) support services for clients, including staff, of the
     eligible entity and individuals enrolled in job training
     programs;
       (C) purchase of equipment and supplies related to the
     operation of the eligible entity or that improve or directly
     affect service delivery;
       (D) building and kitchen renovations that improve or
     directly affect service delivery;
       (E) educational material and services;
       (F) administrative costs, in accordance with guidelines
     established by the Secretary; and
       (G) additional activities determined appropriate by the
     Secretary.
       (4) Preferences.--In awarding grants under this section,
     the Secretary shall give preference to eligible entities that
     perform, or will perform, any of the following activities:
       (A) Carrying out food recovery programs that are integrated
     with--
       (i) culinary worker training programs, such as programs
     conducted by a food service management institute under
     section 21 of the Richard B. Russell National School Lunch
     Act (42 U.S.C. 1769b-1);
       (ii) school education programs; or
       (iii) programs of service-learning (as defined in section
     101 of the National and Community Service Act of 1990 (42
     U.S.C. 12511)).
       (B) Providing job skills training, life skills training,
     and case management support to vulnerable subpopulations.
       (C) Integrating recovery and distribution of food with a
     job training program.
       (D) Maximizing the use of an established school, community,
     or private food service facility or resource in meal
     preparation and culinary skills training.
       (E) Providing job skills training, life skills training,
     and case management support to vulnerable subpopulations.
       (5) Eligibility for job training.--To be eligible to
     receive job training assistance from an eligible entity using
     a grant made available under this section, an individual
     shall be a member of a vulnerable subpopulation.
       (6) Performance indicators.--The Secretary shall establish,
     for each year of the program, performance indicators and
     expected levels of performance for meal and food distribution
     and job training for eligible entities to continue to receive
     and use grants under this section.
       (7) Technical assistance.--
       (A) In general.--The Secretary shall provide technical
     assistance to eligible entities that receive grants under
     this section to assist the eligible entities in carrying out
     programs under this section using the grants.
       (B) Form.--Technical assistance for a program provided
     under this paragraph includes--
       (i) maintenance of a website, newsletters, email
     communications, and other tools to promote shared
     communications, expertise, and best practices;
       (ii) hosting of an annual meeting or other forums to
     provide education and outreach to all programs participants;
       (iii) collection of data for each program to ensure that
     the performance indicators and purposes of the program are
     met or exceeded;
       (iv) intervention (if necessary) to assist an eligible
     entity to carry out the program in a manner that meets or
     exceeds the performance indicators and purposes of the
     program;
       (v) consultation and assistance to an eligible entity to
     assist the eligible entity in providing the best services
     practicable to the community served by the eligible entity,
     including consultation and assistance related to--

       (I) strategic plans;
       (II) board development;
       (III) fund development;
       (IV) mission development; and
       (V) other activities considered appropriate by the
     Secretary;

       (vi) assistance considered appropriate by the Secretary
     regarding--

       (I) the status of program participants;
       (II) the demographic characteristics of program
     participants that affect program services;
       (III) any new idea that could be integrated into the
     program; and
       (IV) the review of grant proposals; and

       (vii) any other forms of technical assistance the Secretary
     considers appropriate.
       (8) Relationship to other law.--
       (A) Bill emerson good samaritan food donation act.--An
     action taken by an eligible entity using a grant provided
     under this section shall be covered by the Bill Emerson Good
     Samaritan Food Donation Act (42 U.S.C. 1791).
       (B) Food handling guidelines.--In using a grant provided
     under this section, an eligible entity shall comply with any
     applicable food handling guideline established by a State or
     local authority.
       (C) Inspections.--An eligible entity using a grant provided
     under this section shall be exempt from inspection under
     sections 303.1(d)(2)(iii) and 381.10(d)(2)(iii) of volume 9,
     Code of Federal Regulations (or a successor regulation), if
     the eligible entity--
       (i) has a hazard analysis and critical control point
     (HACCP) plan;
       (ii) has a sanitation standard operating procedure (SSOP);
     and
       (iii) otherwise complies with the Federal Meat Inspection
     Act (21 U.S.C. 601 et seq.) and the Poultry Products
     Inspection Act (21 U.S.C. 451 et seq.).
       (9) Maximum amount of grant.--The amount of a grant
     provided to an eligible entity for a fiscal year under this
     section shall not exceed $200,000.
       (c) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated
     such sums as are necessary to carry out this section for each
     of fiscal years 2008 through 2012.
       (2) Technical assistance.--Of the amount of funds that are
     made available for a fiscal year under paragraph (1), the
     Secretary shall use to provide technical assistance under
     subsection (b)(7) not more than the greater of--
       (A) 5 percent of the amount of funds that are made
     available for the fiscal year under paragraph (1); or
       (B) $1,000,000.
                                 ______

  SA 3653. Mr. COBURN submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

       On page 266, between lines 10 and 11, insert the following:

     SEC. 19__. ELIGIBILITY FOR DEPARTMENT PROGRAMS.

       (a) In General.--Section 508(b)(7) of the Federal Crop
     Insurance Act (7 U.S.C. 1508(b)(7)) is amended by striking
     subparagraph (A) and inserting the following:
       ``(A) In general.--
       ``(i) Requirement to purchase crop insurance.--Effective
     for the spring-planted 2008 and subsequent crops (and fall-
     planted 2008 crops at the option of the Secretary), to be
     eligible for any benefit listed in clause (ii), a person
     shall obtain additional coverage under subsection (c), if
     available, for each crop of economic significance that--

       ``(I) covers at least 55 percent of loss in yield, on an
     individual or area yield basis, and that indemnifies at 100
     percent of the expected market price; or
       ``(II) provides a level of coverage that is comparable to
     the coverage described in subclause (I), as determined by the
     Secretary.

       ``(ii) Covered benefits.--Benefits referred to in clause
     (i) are any type of price support, payment, loan, or other
     benefit, as determined by the Secretary--

       ``(I) described in section 371(b) of the Consolidated Farm
     and Rural Development Act (7 U.S.C. 2008f(b)); or
       ``(II) authorized under--

       ``(aa) title XII of the Food Security Act of 1985 (16
     U.S.C. 3801 et seq.);
       ``(bb) title I of the Farm Security and Rural Investment
     Act of 2002 (7 U.S.C. 7901 et seq.);
       ``(cc) title I of the Food and Energy Security Act of 2007;
       ``(dd) the Commodity Credit Corporation Charter Act (15
     U.S.C. 714 et seq.);
       ``(ee) any law providing agricultural disaster assistance;
     or
       ``(ff) any other similar Act administered by the Secretary,
     as determined by the Secretary.''.
       (b)Payment of Portion of Premium by Corporation.--Section
     508(e)(2) of the Federal Crop Insurance Act (7 U.S.C.
     1508(e)(2)) is amended--
       (1) in subparagraph (B)(i), by striking ``67 percent'' and
     inserting ``62 percent'';
       (2) in subparagraph (C)(i), by striking ``64 percent'' and
     inserting ``59 percent'';
       (3) in subparagraph (D)(i), by striking ``59 percent'' and
     inserting ``54 percent'';
       (4) in subparagraph (E)(i), by striking ``55 percent'' and
     inserting ``53 percent'';
       (5) in subparagraph (F)(i), by striking ``48 percent'' and
     inserting ``46 percent''; and
       (6) in subparagraph (G)(i), by striking ``38 percent'' and
     inserting ``36 percent''.
       (c) Conforming Amendment.--Section 371(a) of the
     Consolidated Farm and Rural Development Act (7 U.S.C.
     2008f(a)) is amended by striking ``at least catastrophic''
     and all that follows through the end of the subsection and
     inserting ``insurance coverage pursuant to section 508(b)(7)
     of the Federal Crop Insurance Act (7 U.S.C.1508(b)(7)).''.

                          ____________________