S.Amdt. 5053Senate110th Congress (2007-2009)
S.Amdt. 5053
Sponsored by 
Sen. Bob Corker (R-TN)
Sen. Bob Corker (R-TN)Submitted June 24, 2008
Text
Submitted
This amendment's own text couldn't be picked out of its Congressional Record passage, so the passage is shown in full.
TEXT OF AMENDMENTS
SA 5030. Mr. ROBERTS (for himself and Mr. Brownback) submitted an
amendment intended to be proposed to amendment SA 4983 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221,
moving the United States toward greater energy independence and
security, developing innovative new technologies, reducing carbon
emissions, creating green jobs, protecting consumers, increasing clean
renewable energy production, and modernizing our energy infrastructure,
and to amend the Internal Revenue Code of 1986 to provide tax
incentives for the production of renewable energy and energy
conservation; which was ordered to lie on the table; as follows:
On page 615, between lines 2 and 3, insert the following:
SEC. 3083. EXTENSION OF CERTAIN BONUS DEPRECIATION PLACED IN
SERVICE REQUIREMENTS.
Section 15345(d)(1) of Public Law 110-246 is amended--
(1) by striking ``December 31, 2008'' in subparagraph (C)
and inserting ``December 31, 2010'', and
(2) by striking ``December 31, 2009'' in subparagraph (D)
and inserting ``December 31, 2011''.
______
SA 5031. Mr. DeMINT submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
On page 133, strike line 10 and all that follows through
page 160, line 17.
______
SA 5032. Mr. DeMINT submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
Beginning on page 615, line 4, strike all through page 623,
line 12.
______
SA 5033. Mr. DeMINT submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
On page 506, strike line 16 and all that follows through
page 518, line 3.
______
SA 5034. Mr. DeMINT submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
On page 414, strike line 24 and all that follows through
page 415, line 3.
______
SA 5035. Mr. GRASSLEY (for himself, Mr. Harkin, Mr. Durbin, Mr.
Coleman, Mrs. McCaskill, Mr. Bond, Mr. Lugar, Mr. Bayh, Ms. Klobuchar,
and Mr. Obama) submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3211, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
At the end of subtitle A of title III of division C, insert
the following:
SEC. ___. TEMPORARY TAX RELIEF FOR AREAS DAMAGED BY 2008
MIDWESTERN SEVERE STORMS, TORNADOS, AND
FLOODING.
(a) In General.--Subject to the modifications described in
this section, the following provisions of or relating to the
Internal Revenue Code of 1986 shall apply to any Midwestern
disaster area in addition to the areas to which such
provisions otherwise apply:
(1) Go zone benefits.--
(A) Section 1400N (relating to tax benefits) other than
subsections (b), (i), and (j) thereof.
(B) Section 1400O (relating to education tax benefits).
(C) Section 1400P (relating to housing tax benefits).
(D) Section 1400Q (relating to special rules for use of
retirement funds).
(E) Section 1400R(a) (relating to employee retention credit
for employers).
(F) Section 1400S (relating to additional tax relief) other
than subsection (d) thereof.
(G) Section 1400T (relating to special rules for mortgage
revenue bonds).
(2) Other benefits included in katrina emergency tax relief
act of 2005.--Sections 302, 303, 304, 401, and 405 of the
Katrina Emergency Tax Relief Act of 2005.
(3) Other benefits.--Section 3082(a) of this Act (relating
to use of amended income tax returns to take into account
receipt of certain casualty loss grants by disallowing
previously taken casualty loss deductions).
(b) Midwestern Disaster Area.--
(1) In general.--For purposes of this section and for
applying the substitutions described in subsections (d) and
(e), the term ``Midwestern disaster area'' means an area--
(A) with respect to which a major disaster has been
declared by the President after May 20, 2008, and before
August 1, 2008, under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act by reason of
severe storms, tornados, or flooding occurring in any of the
States of Arkansas, Illinois, Indiana, Iowa, Kansas,
Michigan, Minnesota, Missouri, and Wisconsin, and
(B) determined by the President to warrant individual or
individual and public assistance from the Federal Government
under such Act with respect to damages attributable to such
severe storms, tornados, or flooding.
(2) Certain benefits available to areas eligible only for
public assistance.--For purposes of applying this section to
benefits under the following provisions, paragraph (1) shall
be applied without regard to subparagraph (B):
(A) Sections 1400Q, 1400S(b), and 1400S(d) of the Internal
Revenue Code of 1986.
(B) Sections 302, 401, and 405 of the Katrina Emergency Tax
Relief Act of 2005.
(c) References.--
(1) Area.--Any reference in such provisions to the
Hurricane Katrina disaster area or the Gulf Opportunity Zone
shall be treated as a reference to any Midwestern disaster
area and any reference to the Hurricane Katrina disaster area
or the Gulf Opportunity Zone within a State shall be treated
as a reference to all Midwestern disaster areas within the
State.
[[Page S6028]]
(2) Items attributable to disaster.--Any reference in such
provisions to any loss, damage, or other item attributable to
Hurricane Katrina shall be treated as a reference to any
loss, damage, or other item attributable to the severe
storms, tornados, or flooding giving rise to any Presidential
declaration described in subsection (b)(1)(A).
(3) Applicable disaster date.--For purposes of applying the
substitutions described in subsections (d) and (e), the term
``applicable disaster date'' means, with respect to any
Midwestern disaster area, the date on which the severe
storms, tornados, or flooding giving rise to the Presidential
declaration described in subsection (b)(1)(A) occurred.
(d) Modifications to 1986 Code.--The following provisions
of the Internal Revenue Code of 1986 shall be applied with
the following modifications:
(1) Tax-exempt bond financing.--Section 1400N(a)--
(A) by substituting ``qualified Midwestern disaster area
bond'' for ``qualified Gulf Opportunity Zone Bond'' each
place it appears,
(B) by substituting ``any State in which a Midwestern
disaster area is located'' for ``the State of Alabama,
Louisiana, or Mississippi'' in paragraph (2)(B),
(C) by substituting ``designated for purposes of this
section (on the basis of providing assistance to areas in the
order in which such assistance is most needed)'' for
``designated for purposes of this section'' in paragraph
(2)(C),
(D) by substituting ``January 1, 2013'' for ``January 1,
2011'' in paragraph (2)(D),
(E) in paragraph (3)(A)--
(i) by substituting ``$5,000'' for ``$2,500'', and
(ii) by substituting ``before the earliest applicable
disaster date for Midwestern disaster areas within the
State'' for ``before August 28, 2005'',
(F) by substituting ``qualified Midwestern disaster area
repair or construction'' for ``qualified GO Zone repair or
construction'' each place it appears, and
(G) by substituting ``after the date of the enactment of
the Housing and Economic Recovery Act of 2008 and before
January 1, 2013'' for ``after the date of the enactment of
this paragraph and before January 1, 2011'' in paragraph
(7)(C).
(2) Low-income housing credit.--Section 1400N(c)--
(A) only with respect to calendar years 2009, 2010, and
2011,
(B) by substituting ``Disaster Recovery Assistance housing
amount'' for ``Gulf Opportunity housing amount'',
(C) by substituting ``before the earliest applicable
disaster date for Midwestern disaster areas within the
State'' for ``before August 28, 2005'' in paragraph (1)(B),
and
(D) determined without regard to paragraphs (2), (3), (4),
(5), and (6) thereof.
(3) Special allowance for certain property acquired on or
after the applicable disaster date.--Section 1400N(d)--
(A) by substituting ``qualified Disaster Recovery
Assistance property'' for ``qualified Gulf Opportunity Zone
property'' each place it appears,
(B) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(C) by substituting ``December 31, 2011'' for ``December
31, 2007'' in paragraph (2)(A)(v),
(D) by substituting ``December 31, 2012'' for ``December
31, 2008'' in paragraph (2)(A)(v),
(E) by substituting ``the day before the applicable
disaster date'' for ``August 27, 2005'' in paragraph (3)(A),
and
(F) determined without regard to paragraph (6) thereof.
(4) Increase in expensing under section 179.--Section
1400N(e), by substituting ``qualified section 179 Disaster
Recovery Assistance property'' for ``qualified section 179
Gulf Opportunity Zone property'' each place it appears.
(5) Expensing for certain demolition and clean-up costs.--
Section 1400N(f)--
(A) by substituting ``qualified Disaster Recovery
Assistance clean-up cost'' for ``qualified Gulf Opportunity
Zone clean-up cost'' each place it appears, and
(B) by substituting ``beginning on the applicable disaster
date and ending on December 31, 2010'' for ``beginning on
August 28, 2005, and ending on December 31, 2007'' in
paragraph (2).
(6) Extension of expensing for environmental remediation
costs.--Section 1400N(g)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(B) by substituting ``January 1, 2011'' for ``January 1,
2008'' in paragraph (1), and
(C) by substituting ``December 31, 2010'' for ``December
31, 2007''.
(7) Increase in rehabilitation credit.--Section 1400N(h)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'', and
(B) by substituting ``January 1, 2011'' for ``January 1,
2008'' in paragraph (1).
(8) Treatment of net operating losses attributable to
disaster losses.--Section 1400N(k)--
(A) by substituting ``qualified Disaster Recovery
Assistance loss'' for ``qualified Gulf Opportunity Zone
loss'' each place it appears,
(B) by substituting ``after the day before the applicable
disaster date, and before January 1, 2011'' for ``after
August 27, 2005, and before January 1, 2008'' each place it
appears,
(C) by substituting ``the applicable disaster date'' for
``August 28, 2005'' in paragraph (2)(B)(ii)(I),
(D) by substituting ``qualified Disaster Recovery
Assistance property'' for ``qualified Gulf Opportunity Zone
property'' in paragraph (2)(B)(iv), and
(E) by substituting ``qualified Disaster Recovery
Assistance casualty loss'' for ``qualified Gulf Opportunity
Zone casualty loss'' each place it appears.
(9) Credit to holders of tax credit bonds.--Section
1400N(l)--
(A) by substituting ``Midwestern tax credit bond'' for
``Gulf tax credit bond'' each place it appears,
(B) by substituting ``any State in which a Midwestern
disaster area is located'' for ``the State of Alabama,
Louisiana, or Mississippi'' in paragraph (4)(A)(i),
(C) by substituting ``after December 31, 2008 and before
January 1, 2010'' for ``after December 31, 2005, and before
January 1, 2007'',
(D) by substituting ``shall not exceed $100,000,000.'' for
``shall not exceed'' and all that follows in paragraph
(4)(C), and
(E) by substituting ``the earliest applicable disaster date
for Midwestern disaster areas within the State'' for ``August
28, 2005'' in paragraph (5)(A).
(10) New markets tax credit.--Section 1400N(m)--
(A) by substituting ``$300,000,000 for 2009 and 2010'' for
``$300,000,000 for 2005 and 2006'' in paragraph (2)(A), and
(B) by substituting ``$400,000,000 for 2011'' for
``$400,000,000 for 2007'' in paragraph (2)(B).
(11) Education tax benefits.--Section 1400O, by
substituting ``2008 or 2009'' for ``2005 or 2006''.
(12) Housing tax benefits.--Section 1400P, by substituting
``the applicable disaster date'' for ``August 28, 2005'' in
subsection (c)(1).
(13) Special rules for use of retirement funds.--Section
1400Q--
(A) by substituting ``qualified Disaster Recovery
Assistance distribution'' for ``qualified hurricane
distribution'' each place it appears,
(B) by substituting ``on or after the applicable disaster
date and before January 1, 2010'' for ``on or after August
25, 2005, and before January 1, 2007'' in subsection
(a)(4)(A)(i),
(C) by substituting ``the applicable disaster date'' for
``August 28, 2005'' in subsections (a)(4)(A)(i) and
(c)(3)(B),
(D) by disregarding clauses (ii) and (iii) of subsection
(a)(4)(A) thereof,
(E) by substituting ``qualified storm damage distribution''
for ``qualified Katrina distribution'' each place it appears,
(F) by substituting ``after the date which is 6 months
before the applicable disaster date and before the date which
is the day after the applicable disaster date'' for ``after
February 28, 2005, and before August 29, 2005'' in subsection
(b)(2)(B)(ii),
(G) by substituting ``the Midwestern disaster area, but not
so purchased or constructed on account of severe storms,
tornados, or flooding giving rise to the designation of the
area as a disaster area'' for ``the Hurricane Katrina
disaster area, but not so purchased or constructed on account
of Hurricane Katrina'' in subsection (b)(2)(B)(iii),
(H) by substituting ``beginning on the applicable disaster
date and ending on the date which is 5 months after the date
of the enactment of the Housing and Economic Recovery Act of
2008'' for ``beginning on August 25, 2005, and ending on
February 28, 2006'' in subsection (b)(3)(A),
(I) by substituting ``qualified storm damage individual''
for ``qualified Hurricane Katrina individual'' each place it
appears,
(J) by substituting ``December 31, 2009'' for ``December
31, 2006'' in subsection (c)(2)(A),
(K) by substituting ``beginning on the date of the
enactment of the Housing and Economic Recovery Act of 2008
and ending on December 31, 2009'' for ``beginning on
September 24, 2005, and ending on December 31, 2006'' in
subsection (c)(4)(A)(i),
(L) by substituting ``the applicable disaster date'' for
``August 25, 2005'' in subsection (c)(4)(A)(ii), and
(M) by substituting ``January 1, 2010'' for ``January 1,
2007'' in subsection (d)(2)(A)(ii).
(14) Employee retention credit for employers affected by
severe storms, tornados, and flooding.--Section 1400R(a)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(B) by substituting ``January 1, 2009'' for ``January 1,
2006'' both places it appears, and
(C) only with respect to eligible employers who employed an
average of not more than 200 employees on business days
during the taxable year before the applicable disaster date.
(15) Temporary suspension of limitations on charitable
contributions.--Section 1400S(a), by substituting the
following paragraph for paragraph (4) thereof:
``(4) Qualified contributions.--
``(A) In general.--For purposes of this subsection, the
term `qualified contribution' means any charitable
contribution (as defined in section 170(c)) if--
``(i) such contribution--
``(I) is paid during the period beginning on the earliest
applicable disaster date for all States and ending on
December 31, 2008, in cash to an organization described in
section 170(b)(1)(A), and
``(II) is made for relief efforts in 1 or more Midwestern
disaster areas,
[[Page S6029]]
``(ii) the taxpayer obtains from such organization
contemporaneous written acknowledgment (within the meaning of
section 170(f)(8)) that such contribution was used (or is to
be used) for relief efforts in 1 or more Midwestern disaster
areas, and
``(iii) the taxpayer has elected the application of this
subsection with respect to such contribution.
``(B) Exception.--Such term shall not include a
contribution by a donor if the contribution is--
``(i) to an organization described in section 509(a)(3), or
``(ii) for establishment of a new, or maintenance of an
existing, donor advised fund (as defined in section
4966(d)(2)).
``(C) Application of election to partnerships and s
corporations.--In the case of a partnership or S corporation,
the election under subparagraph (A)(iii) shall be made
separately by each partner or shareholder.''.
(16) Suspension of certain limitations on personal casualty
losses.--Section 1400S(b)(1), by substituting ``the
applicable disaster date'' for ``August 25, 2005''.
(17) Special rule for determining earned income.--Section
1400S(d)--
(A) by treating an individual as a qualified individual if
such individual's principal place of abode on the applicable
disaster date was located in a Midwestern disaster area,
(B) by treating the applicable disaster date with respect
to any such individual as the applicable date for purposes of
such subsection, and
(C) by treating an area as described in paragraph
(2)(B)(ii) thereof if the area is a Midwestern disaster area
only by reason of subsection (b)(2) of this section (relating
to areas eligible only for public assistance)
(18) Adjustments regarding taxpayer and dependency
status.--Section 1400S(e), by substituting ``2008 or 2009''
for ``2005 or 2006''.
(e) Modifications to Katrina Emergency Tax Relief Act of
2005.--The following provisions of the Katrina Emergency Tax
Relief Act of 2005 shall be applied with the following
modifications:
(1) Additional exemption for housing displaced
individual.--Section 302--
(A) by substituting ``Midwestern displaced individual'' for
``Hurricane Katrina displaced individual'' each place it
appears, and
(B) by treating an area as a core disaster area for
purposes of applying subsection (c) thereof if the area is a
Midwestern disaster area without regard to subsection (b)(2)
of this section (relating to areas eligible only for public
assistance).
(2) Increase in standard mileage rate.--Section 303, by
substituting ``beginning on the applicable disaster date and
ending on December 31, 2009'' for ``beginning on August 25,
2005, and ending on December 31, 2006''.
(3) Mileage reimbursements for charitable volunteers.--
Section 304--
(A) by substituting ``beginning on the applicable disaster
date and ending on December 31, 2009'' for ``beginning on
August 25, 2005, and ending on December 31, 2006'' in
subsection (a), and
(B) by substituting ``the applicable disaster date'' for
``August 25, 2005'' in subsection (a).
(4) Exclusion of certain cancellation of indebtedness
income.--Section 401--
(A) by treating an individual whose principal place of
abode on the applicable disaster date was in a Midwestern
disaster area (determined without regard to subsection (b)(2)
of this section) as an individual described in subsection
(b)(1) thereof, and by treating an individual whose principal
place of abode on the applicable disaster date was in a
Midwestern disaster area solely by reason of subsection
(b)(2) of this section as an individual described in
subsection (b)(2) thereof,
(B) by substituting ``the applicable disaster date'' for
``August 28, 2005'' both places it appears, and
(C) by substituting ``January 1, 2010'' for ``January 1,
2007'' in subsection (e).
(5) Extension of replacement period for nonrecognition of
gain.--Section 405, by substituting ``on or after the
applicable disaster date'' for ``on or after August 25,
2005''.
SEC. ___. ENHANCED CHARITABLE DEDUCTIONS FOR CONTRIBUTIONS OF
FOOD INVENTORY.
(a) Increased Amount of Deduction.--
(1) In general.--Clause (iv) of section 170(e)(3)(C)
(relating to termination) of the Internal Revenue Code of
1986 is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2009''.
(2) Effective date.--The amendment made by this subsection
shall apply to contributions made after December 31, 2007.
(b) Temporary Suspension of Limitations on Charitable
Contributions.--
(1) In general.--Section 170(b) of such Code is amended by
adding at the end the following new paragraph:
``(3) Temporary suspension of limitations on charitable
contributions.--In the case of a qualified farmer or rancher
(as defined in paragraph (1)(E)(v)), any charitable
contribution of food--
``(A) to which subsection (e)(3)(C) applies (without regard
to clause (ii) thereof), and
``(B) which is made during the period beginning on the date
of the enactment of this paragraph and before January 1,
2009,
shall be treated for purposes of paragraph (1)(E) or (2)(B),
whichever is applicable, as if it were a qualified
conservation contribution which is made by a qualified farmer
or rancher and which otherwise meets the requirements of such
paragraph.''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. ___. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF BOOK INVENTORY.
(a) Extension.--Clause (iv) of section 170(e)(3)(D) of the
Internal Revenue Code of 1986 (relating to termination) of
the Internal Revenue Code of 1986 is amended by striking
``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Clerical Amendment.--Clause (iii) of section
170(e)(3)(D) of such Code (relating to certification by
donee) is amended by inserting ``of books'' after ``to any
contribution''.
(c) Effective Date.--The amendments made by this section
shall apply to contributions made after December 31, 2007.
SEC. ___. REPORTING REQUIREMENTS RELATING TO DISASTER RELIEF
CONTRIBUTIONS.
(a) In General.--Section 6033(b) of the Internal Revenue
Code of 1986 (relating to returns of certain organizations
described in section 501(c)(3)) is amended by striking
``and'' at the end of paragraph (13), by redesignating
paragraph (14) as paragraph (15), and by adding after
paragraph (13) the following new paragraph:
``(14) such information as the Secretary may require with
respect to disaster relief activities, including the amount
and use of qualified contributions to which section 1400S(a)
applies, and''.
(b) Effective Date.--The amendments made by this section
shall apply to returns the due date for which (determined
without regard to any extension) occurs after December 31,
2008.
______
SA 5036. Mr. COBURN submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
SEC. ____. PROTECTION OF TAXPAYERS.
Notwithstanding any other provision of this Act, title III
of Division B of this Act shall not take effect.
______
SA 5037. Mr. BAYH (for himself, Mr. Nelson of Nebraska, and Ms.
Klobuchar) submitted an amendment intended to be proposed to amendment
SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr.
Shelby)) to the bill H.R. 3221, moving the United States toward greater
energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
Beginning on page 573, line 12, strike through page 574,
line 14, and insert the following:
``(8) Real property tax deduction.--For purposes of
paragraph (1), the real property tax deduction is the lesser
of--
``(A) the amount allowable as a deduction under this
chapter for State and local taxes described in section
164(a)(1), or
``(B) $500 ($1,000 in the case of a joint return).
Any taxes taken into account under section 62(a) shall not be
taken into account under this paragraph.''.
______
SA 5038. Mrs. LINCOLN (for herself and Mr. Pryor) submitted an
amendment intended to be proposed to amendment SA 4983 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221,
moving the United States toward greater energy independence and
security, developing innovative new technologies, reducing carbon
emissions, creating green jobs, protecting consumers, increasing clean
renewable energy production, and modernizing our energy infrastructure,
and to amend the Internal Revenue Code of 1986 to provide tax
incentives for the production of renewable energy and energy
conservation; which was ordered to lie on the table; as follows:
At the end of subtitle A of title III of division C, insert
the following:
[[Page S6030]]
SEC. ___. TEMPORARY TAX RELIEF FOR AREAS DAMAGED BY 2008
MIDWESTERN SEVERE STORMS, TORNADOS, AND
FLOODING.
(a) In General.--Subject to the modifications described in
this section, the following provisions of or relating to the
Internal Revenue Code of 1986 shall apply to any Midwestern
disaster area in addition to the areas to which such
provisions otherwise apply:
(1) Go zone benefits.--
(A) Section 1400N (relating to tax benefits) other than
subsections (b), (i), and (j) thereof.
(B) Section 1400O (relating to education tax benefits).
(C) Section 1400P (relating to housing tax benefits).
(D) Section 1400Q (relating to special rules for use of
retirement funds).
(E) Section 1400R(a) (relating to employee retention credit
for employers).
(F) Section 1400S (relating to additional tax relief) other
than subsection (d) thereof.
(G) Section 1400T (relating to special rules for mortgage
revenue bonds).
(2) Other benefits included in katrina emergency tax relief
act of 2005.--Sections 302, 303, 304, 401, and 405 of the
Katrina Emergency Tax Relief Act of 2005.
(3) Other benefits.--Section 3082(a) of this Act (relating
to use of amended income tax returns to take into account
receipt of certain casualty loss grants by disallowing
previously taken casualty loss deductions).
(b) Midwestern Disaster Area.--
(1) In general.--For purposes of this section and for
applying the substitutions described in subsections (d) and
(e), the term ``Midwestern disaster area'' means an area--
(A) with respect to which a major disaster has been
declared by the President after May 20, 2008, and before
August 1, 2008, under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act by reason of
severe storms, tornados, or flooding occurring in any of the
States of Arkansas, Illinois, Indiana, Iowa, Kansas,
Michigan, Minnesota, Missouri, and Wisconsin, and
(B) determined by the President to warrant individual or
individual and public assistance from the Federal Government
under such Act with respect to damages attributable to such
severe storms, tornados, or flooding.
In the case of a State with respect to which the President
during the period beginning on January 1, 2008, and ending on
July 31, 2008, has declared major disasters under such Act
with respect to at least 75 percent of the counties of such
State, subparagraph (A) shall be applied by substituting
``December 31, 2007'' for ``May 20, 2008''.
(2) Certain benefits available to areas eligible only for
public assistance.--For purposes of applying this section to
benefits under the following provisions, paragraph (1) shall
be applied without regard to subparagraph (B):
(A) Sections 1400Q, 1400S(b), and 1400S(d) of the Internal
Revenue Code of 1986.
(B) Sections 302, 401, and 405 of the Katrina Emergency Tax
Relief Act of 2005.
(c) References.--
(1) Area.--Any reference in such provisions to the
Hurricane Katrina disaster area or the Gulf Opportunity Zone
shall be treated as a reference to any Midwestern disaster
area and any reference to the Hurricane Katrina disaster area
or the Gulf Opportunity Zone within a State shall be treated
as a reference to all Midwestern disaster areas within the
State.
(2) Items attributable to disaster.--Any reference in such
provisions to any loss, damage, or other item attributable to
Hurricane Katrina shall be treated as a reference to any
loss, damage, or other item attributable to the severe
storms, tornados, or flooding giving rise to any Presidential
declaration described in subsection (b)(1)(A).
(3) Applicable disaster date.--For purposes of applying the
substitutions described in subsections (d) and (e), the term
``applicable disaster date'' means, with respect to any
Midwestern disaster area, the date on which the severe
storms, tornados, or flooding giving rise to the Presidential
declaration described in subsection (b)(1)(A) occurred.
(d) Modifications to 1986 Code.--The following provisions
of the Internal Revenue Code of 1986 shall be applied with
the following modifications:
(1) Tax-exempt bond financing.--Section 1400N(a)--
(A) by substituting ``qualified Midwestern disaster area
bond'' for ``qualified Gulf Opportunity Zone Bond'' each
place it appears,
(B) by substituting ``any State in which a Midwestern
disaster area is located'' for ``the State of Alabama,
Louisiana, or Mississippi'' in paragraph (2)(B),
(C) by substituting ``designated for purposes of this
section (on the basis of providing assistance to areas in the
order in which such assistance is most needed)'' for
``designated for purposes of this section'' in paragraph
(2)(C),
(D) by substituting ``January 1, 2013'' for ``January 1,
2011'' in paragraph (2)(D),
(E) in paragraph (3)(A)--
(i) by substituting ``$5,000'' for ``$2,500'', and
(ii) by substituting ``before the earliest applicable
disaster date for Midwestern disaster areas within the
State'' for ``before August 28, 2005'',
(F) by substituting ``qualified Midwestern disaster area
repair or construction'' for ``qualified GO Zone repair or
construction'' each place it appears, and
(G) by substituting ``after the date of the enactment of
the Housing and Economic Recovery Act of 2008 and before
January 1, 2013'' for ``after the date of the enactment of
this paragraph and before January 1, 2011'' in paragraph
(7)(C).
(2) Low-income housing credit.--Section 1400N(c)--
(A) only with respect to calendar years 2009, 2010, and
2011,
(B) by substituting ``Disaster Recovery Assistance housing
amount'' for ``Gulf Opportunity housing amount'',
(C) by substituting ``before the earliest applicable
disaster date for Midwestern disaster areas within the
State'' for ``before August 28, 2005'' in paragraph (1)(B),
and
(D) determined without regard to paragraphs (2), (3), (4),
(5), and (6) thereof.
(3) Special allowance for certain property acquired on or
after the applicable disaster date.--Section 1400N(d)--
(A) by substituting ``qualified Disaster Recovery
Assistance property'' for ``qualified Gulf Opportunity Zone
property'' each place it appears,
(B) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(C) by substituting ``December 31, 2011'' for ``December
31, 2007'' in paragraph (2)(A)(v),
(D) by substituting ``December 31, 2012'' for ``December
31, 2008'' in paragraph (2)(A)(v),
(E) by substituting ``the day before the applicable
disaster date'' for ``August 27, 2005'' in paragraph (3)(A),
and
(F) determined without regard to paragraph (6) thereof.
(4) Increase in expensing under section 179.--Section
1400N(e), by substituting ``qualified section 179 Disaster
Recovery Assistance property'' for ``qualified section 179
Gulf Opportunity Zone property'' each place it appears.
(5) Expensing for certain demolition and clean-up costs.--
Section 1400N(f)--
(A) by substituting ``qualified Disaster Recovery
Assistance clean-up cost'' for ``qualified Gulf Opportunity
Zone clean-up cost'' each place it appears, and
(B) by substituting ``beginning on the applicable disaster
date and ending on December 31, 2010'' for ``beginning on
August 28, 2005, and ending on December 31, 2007'' in
paragraph (2).
(6) Extension of expensing for environmental remediation
costs.--Section 1400N(g)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(B) by substituting ``January 1, 2011'' for ``January 1,
2008'' in paragraph (1), and
(C) by substituting ``December 31, 2010'' for ``December
31, 2007''.
(7) Increase in rehabilitation credit.--Section 1400N(h)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'', and
(B) by substituting ``January 1, 2011'' for ``January 1,
2008'' in paragraph (1).
(8) Treatment of net operating losses attributable to
disaster losses.--Section 1400N(k)--
(A) by substituting ``qualified Disaster Recovery
Assistance loss'' for ``qualified Gulf Opportunity Zone
loss'' each place it appears,
(B) by substituting ``after the day before the applicable
disaster date, and before January 1, 2011'' for ``after
August 27, 2005, and before January 1, 2008'' each place it
appears,
(C) by substituting ``the applicable disaster date'' for
``August 28, 2005'' in paragraph (2)(B)(ii)(I),
(D) by substituting ``qualified Disaster Recovery
Assistance property'' for ``qualified Gulf Opportunity Zone
property'' in paragraph (2)(B)(iv), and
(E) by substituting ``qualified Disaster Recovery
Assistance casualty loss'' for ``qualified Gulf Opportunity
Zone casualty loss'' each place it appears.
(9) Credit to holders of tax credit bonds.--Section
1400N(l)--
(A) by substituting ``Midwestern tax credit bond'' for
``Gulf tax credit bond'' each place it appears,
(B) by substituting ``any State in which a Midwestern
disaster area is located'' for ``the State of Alabama,
Louisiana, or Mississippi'' in paragraph (4)(A)(i),
(C) by substituting ``after December 31, 2008 and before
January 1, 2010'' for ``after December 31, 2005, and before
January 1, 2007'',
(D) by substituting ``shall not exceed $100,000,000.'' for
``shall not exceed'' and all that follows in paragraph
(4)(C), and
(E) by substituting ``the earliest applicable disaster date
for Midwestern disaster areas within the State'' for ``August
28, 2005'' in paragraph (5)(A).
(10) New markets tax credit.--Section 1400N(m)--
(A) by substituting ``$300,000,000 for 2009 and 2010'' for
``$300,000,000 for 2005 and 2006'' in paragraph (2)(A), and
(B) by substituting ``$400,000,000 for 2011'' for
``$400,000,000 for 2007'' in paragraph (2)(B).
(11) Education tax benefits.--Section 1400O, by
substituting ``2008 or 2009'' for ``2005 or 2006''.
(12) Housing tax benefits.--Section 1400P, by substituting
``the applicable disaster date'' for ``August 28, 2005'' in
subsection (c)(1).
(13) Special rules for use of retirement funds.--Section
1400Q--
[[Page S6031]]
(A) by substituting ``qualified Disaster Recovery
Assistance distribution'' for ``qualified hurricane
distribution'' each place it appears,
(B) by substituting ``on or after the applicable disaster
date and before January 1, 2010'' for ``on or after August
25, 2005, and before January 1, 2007'' in subsection
(a)(4)(A)(i),
(C) by substituting ``the applicable disaster date'' for
``August 28, 2005'' in subsections (a)(4)(A)(i) and
(c)(3)(B),
(D) by disregarding clauses (ii) and (iii) of subsection
(a)(4)(A) thereof,
(E) by substituting ``qualified storm damage distribution''
for ``qualified Katrina distribution'' each place it appears,
(F) by substituting ``after the date which is 6 months
before the applicable disaster date and before the date which
is the day after the applicable disaster date'' for ``after
February 28, 2005, and before August 29, 2005'' in subsection
(b)(2)(B)(ii),
(G) by substituting ``the Midwestern disaster area, but not
so purchased or constructed on account of severe storms,
tornados, or flooding giving rise to the designation of the
area as a disaster area'' for ``the Hurricane Katrina
disaster area, but not so purchased or constructed on account
of Hurricane Katrina'' in subsection (b)(2)(B)(iii),
(H) by substituting ``beginning on the applicable disaster
date and ending on the date which is 5 months after the date
of the enactment of the Housing and Economic Recovery Act of
2008'' for ``beginning on August 25, 2005, and ending on
February 28, 2006'' in subsection (b)(3)(A),
(I) by substituting ``qualified storm damage individual''
for ``qualified Hurricane Katrina individual'' each place it
appears,
(J) by substituting ``December 31, 2009'' for ``December
31, 2006'' in subsection (c)(2)(A),
(K) by substituting ``beginning on the date of the
enactment of the Housing and Economic Recovery Act of 2008
and ending on December 31, 2009'' for ``beginning on
September 24, 2005, and ending on December 31, 2006'' in
subsection (c)(4)(A)(i),
(L) by substituting ``the applicable disaster date'' for
``August 25, 2005'' in subsection (c)(4)(A)(ii), and
(M) by substituting ``January 1, 2010'' for ``January 1,
2007'' in subsection (d)(2)(A)(ii).
(14) Employee retention credit for employers affected by
severe storms, tornados, and flooding.--Section 1400R(a)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(B) by substituting ``January 1, 2009'' for ``January 1,
2006'' both places it appears, and
(C) only with respect to eligible employers who employed an
average of not more than 200 employees on business days
during the taxable year before the applicable disaster date.
(15) Temporary suspension of limitations on charitable
contributions.--Section 1400S(a), by substituting the
following paragraph for paragraph (4) thereof:
``(4) Qualified contributions.--
``(A) In general.--For purposes of this subsection, the
term `qualified contribution' means any charitable
contribution (as defined in section 170(c)) if--
``(i) such contribution--
``(I) is paid during the period beginning on the earliest
applicable disaster date for all States and ending on
December 31, 2008, in cash to an organization described in
section 170(b)(1)(A), and
``(II) is made for relief efforts in 1 or more Midwestern
disaster areas,
``(ii) the taxpayer obtains from such organization
contemporaneous written acknowledgment (within the meaning of
section 170(f)(8)) that such contribution was used (or is to
be used) for relief efforts in 1 or more Midwestern disaster
areas, and
``(iii) the taxpayer has elected the application of this
subsection with respect to such contribution.
``(B) Exception.--Such term shall not include a
contribution by a donor if the contribution is--
``(i) to an organization described in section 509(a)(3), or
``(ii) for establishment of a new, or maintenance of an
existing, donor advised fund (as defined in section
4966(d)(2)).
``(C) Application of election to partnerships and s
corporations.--In the case of a partnership or S corporation,
the election under subparagraph (A)(iii) shall be made
separately by each partner or shareholder.''.
(16) Suspension of certain limitations on personal casualty
losses.--Section 1400S(b)(1), by substituting ``the
applicable disaster date'' for ``August 25, 2005''.
(17) Special rule for determining earned income.--Section
1400S(d)--
(A) by treating an individual as a qualified individual if
such individual's principal place of abode on the applicable
disaster date was located in a Midwestern disaster area,
(B) by treating the applicable disaster date with respect
to any such individual as the applicable date for purposes of
such subsection, and
(C) by treating an area as described in paragraph
(2)(B)(ii) thereof if the area is a Midwestern disaster area
only by reason of subsection (b)(2) of this section (relating
to areas eligible only for public assistance)
(18) Adjustments regarding taxpayer and dependency
status.--Section 1400S(e), by substituting ``2008 or 2009''
for ``2005 or 2006''.
(e) Modifications to Katrina Emergency Tax Relief Act of
2005.--The following provisions of the Katrina Emergency Tax
Relief Act of 2005 shall be applied with the following
modifications:
(1) Additional exemption for housing displaced
individual.--Section 302--
(A) by substituting ``Midwestern displaced individual'' for
``Hurricane Katrina displaced individual'' each place it
appears, and
(B) by treating an area as a core disaster area for
purposes of applying subsection (c) thereof if the area is a
Midwestern disaster area without regard to subsection (b)(2)
of this section (relating to areas eligible only for public
assistance).
(2) Increase in standard mileage rate.--Section 303, by
substituting ``beginning on the applicable disaster date and
ending on December 31, 2009'' for ``beginning on August 25,
2005, and ending on December 31, 2006''.
(3) Mileage reimbursements for charitable volunteers.--
Section 304--
(A) by substituting ``beginning on the applicable disaster
date and ending on December 31, 2009'' for ``beginning on
August 25, 2005, and ending on December 31, 2006'' in
subsection (a), and
(B) by substituting ``the applicable disaster date'' for
``August 25, 2005'' in subsection (a).
(4) Exclusion of certain cancellation of indebtedness
income.--Section 401--
(A) by treating an individual whose principal place of
abode on the applicable disaster date was in a Midwestern
disaster area (determined without regard to subsection (b)(2)
of this section) as an individual described in subsection
(b)(1) thereof, and by treating an individual whose principal
place of abode on the applicable disaster date was in a
Midwestern disaster area solely by reason of subsection
(b)(2) of this section as an individual described in
subsection (b)(2) thereof,
(B) by substituting ``the applicable disaster date'' for
``August 28, 2005'' both places it appears, and
(C) by substituting ``January 1, 2010'' for ``January 1,
2007'' in subsection (e).
(5) Extension of replacement period for nonrecognition of
gain.--Section 405, by substituting ``on or after the
applicable disaster date'' for ``on or after August 25,
2005''.
SEC. ___. ENHANCED CHARITABLE DEDUCTIONS FOR CONTRIBUTIONS OF
FOOD INVENTORY.
(a) Increased Amount of Deduction.--
(1) In general.--Clause (iv) of section 170(e)(3)(C)
(relating to termination) of the Internal Revenue Code of
1986 is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2009''.
(2) Effective date.--The amendment made by this subsection
shall apply to contributions made after December 31, 2007.
(b) Temporary Suspension of Limitations on Charitable
Contributions.--
(1) In general.--Section 170(b) of such Code is amended by
adding at the end the following new paragraph:
``(3) Temporary suspension of limitations on charitable
contributions.--In the case of a qualified farmer or rancher
(as defined in paragraph (1)(E)(v)), any charitable
contribution of food--
``(A) to which subsection (e)(3)(C) applies (without regard
to clause (ii) thereof), and
``(B) which is made during the period beginning on the date
of the enactment of this paragraph and before January 1,
2009,
shall be treated for purposes of paragraph (1)(E) or (2)(B),
whichever is applicable, as if it were a qualified
conservation contribution which is made by a qualified farmer
or rancher and which otherwise meets the requirements of such
paragraph.''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. ___. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF BOOK INVENTORY.
(a) Extension.--Clause (iv) of section 170(e)(3)(D) of the
Internal Revenue Code of 1986 (relating to termination) of
the Internal Revenue Code of 1986 is amended by striking
``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Clerical Amendment.--Clause (iii) of section
170(e)(3)(D) of such Code (relating to certification by
donee) is amended by inserting ``of books'' after ``to any
contribution''.
(c) Effective Date.--The amendments made by this section
shall apply to contributions made after December 31, 2007.
SEC. ___. REPORTING REQUIREMENTS RELATING TO DISASTER RELIEF
CONTRIBUTIONS.
(a) In General.--Section 6033(b) of the Internal Revenue
Code of 1986 (relating to returns of certain organizations
described in section 501(c)(3)) is amended by striking
``and'' at the end of paragraph (13), by redesignating
paragraph (14) as paragraph (15), and by adding after
paragraph (13) the following new paragraph:
``(14) such information as the Secretary may require with
respect to disaster relief activities, including the amount
and use of qualified contributions to which section 1400S(a)
applies, and''.
(b) Effective Date.--The amendments made by this section
shall apply to returns the due date for which (determined
without regard to any extension) occurs after December 31,
2008.
______
SA 5039. Mr. SCHUMER submitted an amendment intended to be proposed
by him to the bill H.R. 3221, moving the United States toward greater
energy independence and security, developing innovative new
technologies, reducing
[[Page S6032]]
carbon emissions, creating green jobs, protecting consumers, increasing
clean renewable energy production, and modernizing our energy
infrastructure, and to amend the Internal Revenue Code of 1986 to
provide tax incentives for the production of renewable energy and
energy conservation; which was ordered to lie on the table; as follows:
On page 455, between lines 14 and 15, insert the following:
SEC. 1606. VALUATION OF MULTIFAMILY PROPERTIES IN
NONCOMPETITIVE SALES BY HUD TO STATES AND
LOCALITIES.
Subtitle A of title II of the Deficit Reduction Act of 2005
(Public Law 109-171; 120 Stat. 7) is amended by adding at the
end the following new section:
``SEC. 2004. VALUATION OF MULTIFAMILY PROPERTIES IN
NONCOMPETITIVE SALES BY HUD TO STATES AND
LOCALITIES.
``Notwithstanding any other provision of law, in
determining the market value of any multifamily real property
or multifamily loan for any noncompetitive sale to a State or
local government entity occurring during fiscal years 2008,
2009, or 2010, the Secretary shall consider, but not be
limited to, industry standard appraisal practices, including
the cost of repairs needed to bring the property at least to
minimum State and local code standards and of maintaining the
existing affordability restrictions imposed by the Secretary
on the multifamily real property or multifamily loan.''.
______
SA 5040. Ms. LANDRIEU (for herself, Mr. Grassley, Mr. Harkin, and Mr.
Wicker) submitted an amendment intended to be proposed to amendment SA
4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby))
to the bill H.R. 3221, moving the United States toward greater energy
independence and security, developing innovative new technologies,
reducing carbon emissions, creating green jobs, protecting consumers,
increasing clean renewable energy production, and modernizing our
energy infrastructure, and to amend the Internal Revenue Code of 1986
to provide tax incentives for the production of renewable energy and
energy conservation; which was ordered to lie on the table; as follows:
On page 510, strike lines 1 through 5, and insert the
following:
(C) establish land banks for homes that have been
foreclosed upon;
(D) demolish blighted structures; and
(E) redevelop demolished, blighted, or vacant properties,
including those damaged or destroyed in areas subject to a
disaster declaration by the President under title IV of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5121 et seq.).
______
SA 5041. Mr. CASEY (for himself and Mr. Specter) submitted an
amendment intended to be proposed to amendment SA 4983 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221,
moving the United States toward greater energy independence and
security, developing innovative new technologies, reducing carbon
emissions, creating green jobs, protecting consumers, increasing clean
renewable energy production, and modernizing our energy infrastructure,
and to amend the Internal Revenue Code of 1986 to provide tax
incentives for the production of renewable energy and energy
conservation; which was ordered to lie on the table; as follows:
On page 455, between lines 14 and 15, insert the following:
SEC. 1606. SENSE OF THE SENATE ON THE JOINT EFFORTS OF THE
CITY OF PHILADELPHIA AND PHILADELPHIA COURT OF
COMMON PLEAS TO PREVENT HOME FORECLOSURES.
(a) Findings.--The Senate finds that--
(1) the Mortgage Bankers Association reported this month
that over 1,000,000 homes have entered foreclosure
proceedings, the highest rate of such proceedings ever
recorded;
(2) the Center for Responsible Lending reports that
7,200,000 families now hold a subprime loan;
(3) the Joint Economic Committee of the Congress estimates
that from the third quarter of 2007 through the fourth
quarter of 2009 there will be 45,470 subprime foreclosures in
Pennsylvania;
(4) the Joint Economic Committee further predicts that the
cumulative loss in property value resulting from these
foreclosures will exceed $2,400,000,000 and the estimated
loss in property taxes will be $34,000,000;
(5) the Pew Charitable Trusts reports that 1,684,475
Pennsylvania homeowners will experience home devaluation due
to subprime foreclosures in 2008 and 2009;
(6) a 2005 Freddie Mac/Roper poll of homeowners indicates
that more than 6 in 10 delinquent borrowers are not aware of
services that lenders offer to individuals having trouble
with their mortgage;
(7) the Department of Housing and Urban Development program
statistics show that 96 percent of the families that receive
housing counseling services avoid foreclosure;
(8) Philadelphia County reported 730 properties filed for
foreclosure in April 2008, more foreclosure filings than any
other county in Pennsylvania;
(9) the Center for Responsible Lending estimates that
Philadelphia County could lose up to 4,444 homes to
foreclosure; and
(10) it has been over 1 year since the first legislation
dealing with the subprime mortgage crisis was introduced in
the Senate to consider housing legislation that provides
homeowners with relief and that alleviates the foreclosure
crisis.
(b) Sense of the Senate.--It is the sense of the Senate
that--
(1) the City of Philadelphia and the Philadelphia Court of
Common Pleas should be commended for their efforts to
facilitate negotations between borrowers and lenders to
attempt to restructure loan terms and prevent foreclosures;
(2) the commitment of such entitites to their home
foreclosure prevention program, such program's requirement of
mandatory counseling for delinquent borrowers, and such
program's use of professional housing counselors to negotiate
between lenders and homeowners represent the best practices
in the industry; and
(3) the Secretary of Housing and Urban Development should,
to the extent possible, inform other cities about the
Philadelphia program and advise such other cities that the
funds provided under section 2401 may be used to defray the
cost of similar foreclosure prevention programs.
______
SA 5042. Mr. WYDEN (for himself, Mr. Smith, Ms. Cantwell, and Mrs.
Murray) submitted an amendment intended to be proposed to amendment SA
4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby))
to the bill H.R. 3221, moving the United States toward greater energy
independence and security; developing innovative new technologies,
reducing carbon emissions, creating green jobs, protecting consumers,
increasing clean renewable energy production, and modernizing our
energy infrastructure, and to amend the Internal Revenue Code of 1986
to provide tax incentives for the production of renewable energy and
energy conservation; which was ordered to lie on the table; as follows:
On page 614, line 23, insert ``, but only with respect to
property the acquisition of which has not occurred, or the
construction, reconstruction, or renovation of which has not
begun, before the date of the enactment of the Housing
Assistance Tax Act of 2008'' after ``Alabama''.
______
SA 5043. Mr. BINGAMAN (for himself and Mr. Domenici) submitted an
amendment intended to be proposed to amendment SA 4983 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221,
moving the United States toward greater energy independence and
security; developing innovative new technologies, reducing carbon
emissions, creating green jobs, protecting consumers, increasing clean
renewable energy production, and modernizing our energy infrastructure,
and to amend the Internal Revenue Code of 1986 to provide tax
incentives for the production of renewable energy and energy
conservation; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. _____. INCREASING ACCESS AND UNDERSTANDING OF ENERGY
EFFICIENT MORTGAGES.
(a) Definition.--As used in this section, the term ``energy
efficient mortgage'' has the same meaning as given that term
in paragraph (24) of section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704(24)).
(b) Recommendations To Eliminate Barriers to Use of Energy
Efficient Mortgages.--
(1) In general.--Not later than 180 days after the date of
enactment of this section, the Secretary of Housing and Urban
Development, in conjunction with the Secretary of Energy and
the Administrator of the Environmental Protection Agency,
shall consult with the residential mortgage industry and
States to develop recommendations to eliminate the barriers
that exist to increasing the availability, use, and purchase
of energy efficient mortgages, including such barriers as--
(A) the lack of reliable and accessible information on such
mortgages, including estimated energy savings and other
benefits of energy efficient housing;
(B) the confusion regarding underwriting requirements and
differences among various energy efficient mortgage programs;
(C) the complex and time consuming process of securing such
mortgages;
(D) the lack of publicly available research on the default
risk of such mortgages; and
(E) the availability of certified or accredited home energy
rating services.
(2) Report to congress.--The Secretary of Housing and Urban
Development shall submit a report to Congress that--
(A) summarizes the recommendations developed under
paragraph (1); and
[[Page S6033]]
(B) includes any recommendations for statutory, regulatory,
or administrative changes the Secretary deems necessary to
institute such recommendations.
(c) Energy Efficient Mortgages Outreach Campaign.--
(1) In general.--The Secretary of Housing and Urban
Development, in consultation and coordination with the
Secretary of Energy, the Administrator of the Environmental
Protection Agency, and State Energy and Housing Finance
Directors, shall carry out an education and outreach campaign
to inform and educate consumers, home builders, residential
lenders, and other real estate professionals on the
availability, benefits, and advantages of--
(A) improved energy efficiency in housing; and
(B) energy efficient mortgages.
(2) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
the education and outreach campaign described under paragraph
(1).
______
SA 5044. Mrs. LINCOLN (for herself and Mr. Smith) submitted an
amendment intended to be proposed to amendment SA 4983 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221,
moving the United States toward greater energy independence and
security; developing innovative new technologies, reducing carbon
emissions, creating green jobs, protecting consumers, increasing clean
renewable energy production, and modernizing our energy infrastructure,
and to amend the Internal Revenue Code of 1986 to provide tax
incentives for the production of renewable energy and energy
conservation; which was ordered to lie on the table; as follows:
On page 587, line 24, insert ``and `80 percent of the class
life of such property' shall be substituted for `20 years' in
paragraph (1)(B)(ii)(III) thereof'' after ``thereof''.
______
SA 5045. Mr. BAUCUS submitted an amendment intended to be proposed by
him to the bill H.R. 3221, moving the United States toward greater
energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
On page 630, after line 2, insert the following:
TITLE IV--ENERGY TAX INCENTIVES
Subtitle A--Energy Production Incentives
PART I--RENEWABLE ENERGY INCENTIVES
SEC. 3101. RENEWABLE ENERGY CREDIT.
(a) Extension of Credit.--
(1) 1-year extension for wind facilities.--Paragraph (1) of
section 45(d) is amended by striking ``January 1, 2009'' and
inserting ``January 1, 2010''.
(2) 3-year extension for certain other facilities.--Each of
the following provisions of section 45(d) is amended by
striking ``January 1, 2009'' and inserting ``January 1,
2012'':
(A) Clauses (i) and (ii) of paragraph (2)(A).
(B) Clauses (i)(I) and (ii) of paragraph (3)(A).
(C) Paragraph (4).
(D) Paragraph (5).
(E) Paragraph (6).
(F) Paragraph (7).
(G) Subparagraphs (A) and (B) of paragraph (9).
(b) Modification of Credit Phaseout.--
(1) Repeal of phaseout.--Subsection (b) of section 45 is
amended--
(A) by striking paragraph (1), and
(B) by striking ``the 8 cent amount in paragraph (1),'' in
paragraph (2) thereof.
(2) Limitation based on investment in facility.--Subsection
(b) of section 45 is amended by inserting before paragraph
(2) the following new paragraph:
``(1) Limitation based on investment in facility.--
``(A) In general.--In the case of any qualified facility
originally placed in service after December 31, 2009, the
amount of the credit determined under subsection (a) for any
taxable year with respect to electricity produced at such
facility shall not exceed the product of--
``(i) the applicable percentage with respect to such
facility, multiplied by
``(ii) the eligible basis of such facility.
``(B) Carryforward of unused limitation and excess
credit.--
``(i) Unused limitation.--If the limitation imposed under
subparagraph (A) with respect to any facility for any taxable
year exceeds the prelimitation credit for such facility for
such taxable year, the limitation imposed under subparagraph
(A) with respect to such facility for the succeeding taxable
year shall be increased by the amount of such excess.
``(ii) Excess credit.--If the prelimitation credit with
respect to any facility for any taxable year exceeds the
limitation imposed under subparagraph (A) with respect to
such facility for such taxable year, the credit determined
under subsection (a) with respect to such facility for the
succeeding taxable year (determined before the application of
subparagraph (A) for such succeeding taxable year) shall be
increased by the amount of such excess. With respect to any
facility, no amount may be carried forward under this clause
to any taxable year beginning after the 10-year period
described in subsection (a)(2)(A)(ii) with respect to such
facility.
``(iii) Prelimitation credit.--The term `prelimitation
credit' with respect to any facility for a taxable year means
the credit determined under subsection (a) with respect to
such facility for such taxable year, determined without
regard to subparagraph (A) and after taking into account any
increase for such taxable year under clause (ii).
``(C) Applicable percentage.--For purposes of this
paragraph--
``(i) In general.--The term `applicable percentage' means,
with respect to any facility, the appropriate percentage
prescribed by the Secretary for the month in which such
facility is originally placed in service.
``(ii) Method of prescribing applicable percentages.--The
applicable percentages prescribed by the Secretary for any
month under clause (i) shall be percentages which yield over
a 10-year period amounts of limitation under subparagraph (A)
which have a present value equal to 35 percent of the
eligible basis of the facility.
``(iii) Method of discounting.--The present value under
clause (ii) shall be determined--
``(I) as of the last day of the 1st year of the 10-year
period referred to in clause (ii),
``(II) by using a discount rate equal to the greater of 110
percent of the Federal long-term rate as in effect under
section 1274(d) for the month preceding the month for which
the applicable percentage is being prescribed, or 4.5
percent, and
``(III) by taking into account the limitation under
subparagraph (A) for any year on the last day of such year.
``(D) Eligible basis.--For purposes of this paragraph--
``(i) In general.--The term `eligible basis' means, with
respect to any facility, the sum of--
``(I) the basis of such facility determined as of the time
that such facility is originally placed in service, and
``(II) the portion of the basis of any shared qualified
property which is properly allocable to such facility under
clause (ii).
``(ii) Rules for allocation.--For purposes of subclause
(II) of clause (i), the basis of shared qualified property
shall be allocated among all qualified facilities which are
projected to be placed in service and which require
utilization of such property in proportion to projected
generation from such facilities.
``(iii) Shared qualified property.--For purposes of this
paragraph, the term `shared qualified property' means, with
respect to any facility, any property described in section
168(e)(3)(B)(vi)--
``(I) which a qualified facility will require for
utilization of such facility, and
``(II) which is not a qualified facility.
``(iv) Special rule relating to geothermal facilities.--In
the case of any qualified facility using geothermal energy to
produce electricity, the basis of such facility for purposes
of this paragraph shall be determined as though intangible
drilling and development costs described in section 263(c)
were capitalized rather than expensed.
``(E) Special rule for first and last year of credit
period.--In the case of any taxable year any portion of which
is not within the 10-year period described in subsection
(a)(2)(A)(ii) with respect to any facility, the amount of the
limitation under subparagraph (A) with respect to such
facility shall be reduced by an amount which bears the same
ratio to the amount of such limitation (determined without
regard to this subparagraph) as such portion of the taxable
year which is not within such period bears to the entire
taxable year.
``(F) Election to treat all facilities placed in service in
a year as 1 facility.--At the election of the taxpayer, all
qualified facilities which are part of the same project and
which are placed in service during the same calendar year
shall be treated for purposes of this section as 1 facility
which is placed in service at the mid-point of such year or
the first day of the following calendar year.''.
(c) Trash Facility Clarification.--Paragraph (7) of section
45(d) is amended--
(1) by striking ``facility which burns'' and inserting
``facility (other than a facility described in paragraph (6))
which uses'', and
(2) by striking ``combustion''.
(d) Expansion of Biomass Facilities.--
(1) Open-loop biomass facilities.--Paragraph (3) of section
45(d) is amended by redesignating subparagraph (B) as
subparagraph (C) and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Expansion of facility.--Such term shall include a new
unit placed in service after the date of the enactment of
this subparagraph in connection with a facility described in
subparagraph (A), but only to the extent of the increased
amount of electricity produced at the facility by reason of
such new unit.''.
(2) Closed-loop biomass facilities.--Paragraph (2) of
section 45(d) is amended by redesignating subparagraph (B) as
subparagraph (C) and inserting after subparagraph (A) the
following new subparagraph:
[[Page S6034]]
``(B) Expansion of facility.--Such term shall include a new
unit placed in service after the date of the enactment of
this subparagraph in connection with a facility described in
subparagraph (A)(i), but only to the extent of the increased
amount of electricity produced at the facility by reason of
such new unit.''.
(e) Sales of Net Electricity to Regulated Public Utilities
Treated as Sales to Unrelated Persons.--Paragraph (4) of
section 45(e) is amended by adding at the end the following
new sentence: ``The net amount of electricity sold by any
taxpayer to a regulated public utility (as defined in section
7701(a)(33)) shall be treated as sold to an unrelated
person.''.
(f) Modification of Rules for Hydropower Production.--
Subparagraph (C) of section 45(c)(8) is amended to read as
follows:
``(C) Nonhydroelectric dam.--For purposes of subparagraph
(A), a facility is described in this subparagraph if--
``(i) the hydroelectric project installed on the
nonhydroelectric dam is licensed by the Federal Energy
Regulatory Commission and meets all other applicable
environmental, licensing, and regulatory requirements,
``(ii) the nonhydroelectric dam was placed in service
before the date of the enactment of this paragraph and
operated for flood control, navigation, or water supply
purposes and did not produce hydroelectric power on the date
of the enactment of this paragraph, and
``(iii) the hydroelectric project is operated so that the
water surface elevation at any given location and time that
would have occurred in the absence of the hydroelectric
project is maintained, subject to any license requirements
imposed under applicable law that change the water surface
elevation for the purpose of improving environmental quality
of the affected waterway.
The Secretary, in consultation with the Federal Energy
Regulatory Commission, shall certify if a hydroelectric
project licensed at a nonhydroelectric dam meets the criteria
in clause (iii). Nothing in this section shall affect the
standards under which the Federal Energy Regulatory
Commission issues licenses for and regulates hydropower
projects under part I of the Federal Power Act.''.
(g) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to property originally placed in service after December 31,
2008.
(2) Repeal of credit phaseout.--The amendments made by
subsection (b)(1) shall apply to taxable years ending after
December 31, 2008.
(3) Limitation based on investment in facility.--The
amendment made by subsection (b)(2) shall apply to property
originally placed in service after December 31, 2009.
(4) Trash facility clarification; sales to related
regulated public utilities.--The amendments made by
subsections (c) and (e) shall apply to electricity produced
and sold after the date of the enactment of this Act.
(5) Expansion of biomass facilities.--The amendments made
by subsection (d) shall apply to property placed in service
after the date of the enactment of this Act.
SEC. 3102. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM
MARINE RENEWABLES.
(a) In General.--Paragraph (1) of section 45(c) is amended
by striking ``and'' at the end of subparagraph (G), by
striking the period at the end of subparagraph (H) and
inserting ``, and'', and by adding at the end the following
new subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(b) Marine Renewables.--Subsection (c) of section 45 is
amended by adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and hydrokinetic
renewable energy' means energy derived from--
``(i) waves, tides, and currents in oceans, estuaries, and
tidal areas,
``(ii) free flowing water in rivers, lakes, and streams,
``(iii) free flowing water in an irrigation system, canal,
or other man-made channel, including projects that utilize
nonmechanical structures to accelerate the flow of water for
electric power production purposes, or
``(iv) differentials in ocean temperature (ocean thermal
energy conversion).
``(B) Exceptions.--Such term shall not include any energy
which is derived from any source which utilizes a dam,
diversionary structure (except as provided in subparagraph
(A)(iii)), or impoundment for electric power production
purposes.''.
(c) Definition of Facility.--Subsection (d) of section 45
is amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy
facilities.--In the case of a facility producing electricity
from marine and hydrokinetic renewable energy, the term
`qualified facility' means any facility owned by the
taxpayer--
``(A) which has a nameplate capacity rating of at least 150
kilowatts, and
``(B) which is originally placed in service on or after the
date of the enactment of this paragraph and before January 1,
2012.''.
(d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is
amended by striking ``or (9)'' and inserting ``(9), or
(11)''.
(e) Coordination With Small Irrigation Power.--Paragraph
(5) of section 45(d), as amended by section 3101, is amended
by striking ``January 1, 2012'' and inserting ``the date of
the enactment of paragraph (11)''.
(f) Effective Date.--The amendments made by this section
shall apply to electricity produced and sold after the date
of the enactment of this Act, in taxable years ending after
such date.
SEC. 3103. ENERGY CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) are each amended by striking
``January 1, 2009'' and inserting ``January 1, 2015''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2014''.
(3) Microturbine property.--Subparagraph (E) of section
48(c)(2) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2014''.
(b) Allowance of Energy Credit Against Alternative Minimum
Tax.--Subparagraph (B) of section 38(c)(4) is amended by
striking ``and'' at the end of clause (iii), by redesignating
clause (iv) as clause (v), and by inserting after clause
(iii) the following new clause:
``(iv) the credit determined under section 46 to the extent
that such credit is attributable to the energy credit
determined under section 48, and''.
(c) Energy Credit for Combined Heat and Power System
Property.--
(1) In general.--Section 48(a)(3)(A) (defining energy
property) is amended by striking ``or'' at the end of clause
(iii), by inserting ``or'' at the end of clause (iv), and by
adding at the end the following new clause:
``(v) combined heat and power system property,''.
(2) Combined heat and power system property.--Section 48 is
amended by adding at the end the following new subsection:
``(d) Combined Heat and Power System Property.--For
purposes of subsection (a)(3)(A)(v)--
``(1) Combined heat and power system property.--The term
`combined heat and power system property' means property
comprising a system--
``(A) which uses the same energy source for the
simultaneous or sequential generation of electrical power,
mechanical shaft power, or both, in combination with the
generation of steam or other forms of useful thermal energy
(including heating and cooling applications),
``(B) which produces--
``(i) at least 20 percent of its total useful energy in the
form of thermal energy which is not used to produce
electrical or mechanical power (or combination thereof), and
``(ii) at least 20 percent of its total useful energy in
the form of electrical or mechanical power (or combination
thereof),
``(C) the energy efficiency percentage of which exceeds 60
percent, and
``(D) which is placed in service before January 1, 2015.
``(2) Limitation.--
``(A) In general.--In the case of combined heat and power
system property with an electrical capacity in excess of the
applicable capacity placed in service during the taxable
year, the credit under subsection (a)(1) (determined without
regard to this paragraph) for such year shall be equal to the
amount which bears the same ratio to such credit as the
applicable capacity bears to the capacity of such property.
``(B) Applicable capacity.--For purposes of subparagraph
(A), the term `applicable capacity' means 15 megawatts or a
mechanical energy capacity of more than 20,000 horsepower or
an equivalent combination of electrical and mechanical energy
capacities.
``(C) Maximum capacity.--The term `combined heat and power
system property' shall not include any property comprising a
system if such system has a capacity in excess of 50
megawatts or a mechanical energy capacity in excess of 67,000
horsepower or an equivalent combination of electrical and
mechanical energy capacities.
``(3) Special rules.--
``(A) Energy efficiency percentage.--For purposes of this
subsection, the energy efficiency percentage of a system is
the fraction--
``(i) the numerator of which is the total useful
electrical, thermal, and mechanical power produced by the
system at normal operating rates, and expected to be consumed
in its normal application, and
``(ii) the denominator of which is the lower heating value
of the fuel sources for the system.
``(B) Determinations made on btu basis.--The energy
efficiency percentage and the percentages under paragraph
(1)(B) shall be determined on a Btu basis.
``(C) Input and output property not included.--The term
`combined heat and power system property' does not include
property used to transport the energy source to the facility
or to distribute energy produced by the facility.
``(4) Systems using biomass.--If a system is designed to
use biomass (within the meaning of paragraphs (2) and (3) of
section 45(c) without regard to the last sentence of
paragraph (3)(A)) for at least 90 percent of the energy
source--
``(A) paragraph (1)(C) shall not apply, but
``(B) the amount of credit determined under subsection (a)
with respect to such system shall not exceed the amount which
[[Page S6035]]
bears the same ratio to such amount of credit (determined
without regard to this paragraph) as the energy efficiency
percentage of such system bears to 60 percent.''.
(d) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking
``$500'' and inserting ``$1,500''.
(e) Public Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is amended
by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c) is amended by striking
subparagraph (D) and redesignating subparagraph (E) as
subparagraph (D).
(B) Paragraph (2) of section 48(c) is amended by striking
subparagraph (D) and redesignating subparagraph (E) as
subparagraph (D).
(f) 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) Allowance against alternative minimum tax.--The
amendments made by subsection (b) shall apply to credits
determined under section 46 of the Internal Revenue Code of
1986 in taxable years beginning after the date of the
enactment of this Act and to carrybacks of such credits.
(3) Combined heat and power and fuel cell property.--The
amendments made by subsections (c) and (d) shall apply to
periods after the date of the enactment of this Act, in
taxable years ending after such date, under rules similar to
the rules of section 48(m) of the Internal Revenue Code of
1986 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990).
(4) Public utility property.--The amendments made by
subsection (e) shall apply to periods after February 13,
2008, in taxable years ending after such date, under rules
similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990).
SEC. 3104. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) is amended by striking
``December 31, 2008'' and inserting ``December 31, 2014''.
(b) Maximum Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1)(A) is amended by
striking ``$2,000'' and inserting ``$4,000''.
(2) Conforming amendment.--Section 25D(e)(4)(A)(i) is
amended by striking ``$6,667'' and inserting ``$13,333''.
(c) Credit for Residential Wind Property.--
(1) In general.--Section 25D(a) is amended by striking
``and'' at the end of paragraph (2), by striking the period
at the end of paragraph (3) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(4) 30 percent of the qualified small wind energy
property expenditures made by the taxpayer during such
year.''.
(2) Limitation.--Section 25D(b)(1) is amended by striking
``and'' at the end of subparagraph (B), by striking the
period at the end of subparagraph (C) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(D) $500 with respect to each half kilowatt of capacity
(not to exceed $4,000) of wind turbines for which qualified
small wind energy property expenditures are made.''.
(3) Qualified small wind energy property expenditures.--
(A) In general.--Section 25D(d) is amended by adding at the
end the following new paragraph:
``(4) Qualified small wind energy property expenditure.--
The term `qualified small wind energy property expenditure'
means an expenditure for property which uses a wind turbine
to generate electricity for use in connection with a dwelling
unit located in the United States and used as a residence by
the taxpayer.''.
(B) No double benefit.--Section 45(d)(1) is amended by
adding at the end the following new sentence: ``Such term
shall not include any facility with respect to which any
qualified small wind energy property expenditure (as defined
in subsection (d)(4) of section 25D) is taken into account in
determining the credit under such section.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A) is amended by striking ``and'' at the
end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, and'', and by adding at the
end the following new clause:
``(iv) $1,667 in the case of each half kilowatt of capacity
(not to exceed $13,333) of wind turbines for which qualified
small wind energy property expenditures are made.''.
(d) Credit for Geothermal Heat pump Systems.--
(1) In general.--Section 25D(a), as amended by subsection
(c), is amended by striking ``and'' at the end of paragraph
(3), by striking the period at the end of paragraph (4) and
inserting ``, and'', and by adding at the end the following
new paragraph:
``(5) 30 percent of the qualified geothermal heat pump
property expenditures made by the taxpayer during such
year.''.
(2) Limitation.--Section 25D(b)(1), as amended by
subsection (c), is amended by striking ``and'' at the end of
subparagraph (C), by striking the period at the end of
subparagraph (D) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(E) $2,000 with respect to any qualified geothermal heat
pump property expenditures.''.
(3) Qualified geothermal heat pump property expenditure.--
Section 25D(d), as amended by subsection (c), is amended by
adding at the end the following new paragraph:
``(5) Qualified geothermal heat pump property
expenditure.--
``(A) In general.--The term `qualified geothermal heat pump
property expenditure' means an expenditure for qualified
geothermal heat pump property installed on or in connection
with a dwelling unit located in the United States and used as
a residence by the taxpayer.
``(B) Qualified geothermal heat pump property.--The term
`qualified geothermal heat pump property' means any equipment
which--
``(i) uses the ground or ground water as a thermal energy
source to heat the dwelling unit referred to in subparagraph
(A) or as a thermal energy sink to cool such dwelling unit,
and
``(ii) meets the requirements of the Energy Star program
which are in effect at the time that the expenditure for such
equipment is made.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A), as amended by subsection (c), is
amended by striking ``and'' at the end of clause (iii), by
striking the period at the end of clause (iv) and inserting
``, and'', and by adding at the end the following new clause:
``(v) $6,667 in the case of any qualified geothermal heat
pump property expenditures.''.
(e) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended
to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of
Unused Credit.--
``(1) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for the taxable year
shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable
year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits allowed
against regular and alternative minimum tax.--In the case of
a taxable year to which section 26(a)(2) applies, if the
credit allowable under subsection (a) exceeds the limitation
imposed by section 26(a)(2) for such taxable year reduced by
the sum of the credits allowable under this subpart (other
than this section), such excess shall be carried to the
succeeding taxable year and added to the credit allowable
under subsection (a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a taxable year
to which section 26(a)(2) does not apply, if the credit
allowable under subsection (a) exceeds the limitation imposed
by paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such succeeding
taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting ``and
section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking ``and 25B''
and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking ``section 23''
and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and 25B'' and
inserting ``25B, and 25D''.
(f) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
(2) Application of egtrra sunset.--The amendments made by
subparagraphs (A) and (B) of subsection (e)(2) shall be
subject to title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 in the same manner as the
provisions of such Act to which such amendments relate.
SEC. 3105. SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC
RESTRUCTURING POLICY.
(a) Extension for Qualified Electric Utilities.--
(1) In general.--Paragraph (3) of section 451(i) is amended
by inserting ``(before January 1, 2010, in the case of a
qualified electric utility)'' after ``January 1, 2008''.
(2) Qualified electric utility.--Subsection (i) of section
451 is amended by redesignating paragraphs (6) through (10)
as paragraphs (7) through (11), respectively, and by
inserting after paragraph (5) the following new paragraph:
``(6) Qualified electric utility.--For purposes of this
subsection, the term `qualified electric utility' means a
person that, as of the date of the qualifying electric
transmission transaction, is vertically integrated, in that
it is both--
``(A) a transmitting utility (as defined in section 3(23)
of the Federal Power Act (16 U.S.C. 796(23))) with respect to
the transmission facilities to which the election under this
subsection applies, and
[[Page S6036]]
``(B) an electric utility (as defined in section 3(22) of
the Federal Power Act (16 U.S.C. 796(22))).''.
(b) Extension of Period for Transfer of Operational Control
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is
amended by striking ``December 31, 2007'' and inserting ``the
date which is 4 years after the close of the taxable year in
which the transaction occurs''.
(c) Property Located Outside the United States Not Treated
as Exempt Utility Property.--Paragraph (5) of section 451(i)
is amended by adding at the end the following new
subparagraph:
``(C) Exception for property located outside the united
states.--The term `exempt utility property' shall not include
any property which is located outside the United States.''.
(d) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
apply to transactions after December 31, 2007.
(2) Transfers of operational control.--The amendment made
by subsection (b) shall take effect as if included in section
909 of the American Jobs Creation Act of 2004.
(3) Exception for property located outside the united
states.--The amendment made by subsection (c) shall apply to
transactions after the date of the enactment of this Act.
SEC. 3106. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
section:
``SEC. 54C. NEW CLEAN RENEWABLE ENERGY BONDS.
``(a) New Clean Renewable Energy Bond.--For purposes of
this subpart, the term `new clean renewable energy bond'
means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for capital expenditures incurred by
governmental bodies, public power providers, or cooperative
electric companies for one or more qualified renewable energy
facilities,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Reduced Credit Amount.--The annual credit determined
under section 54A(b) with respect to any new clean renewable
energy bond shall be 70 percent of the amount so determined
without regard to this subsection.
``(c) Limitation on Amount of Bonds Designated.--
``(1) In general.--The maximum aggregate face amount of
bonds which may be designated under subsection (a) by any
issuer shall not exceed the limitation amount allocated under
this subsection to such issuer.
``(2) National limitation on amount of bonds designated.--
There is a national new clean renewable energy bond
limitation of $2,000,000,000 which shall be allocated by the
Secretary as provided in paragraph (3), except that--
``(A) not more than 33\1/3\ percent thereof may be
allocated to qualified projects of public power providers,
``(B) not more than 33\1/3\ percent thereof may be
allocated to qualified projects of governmental bodies, and
``(C) not more than 33\1/3\ percent thereof may be
allocated to qualified projects of cooperative electric
companies.
``(3) Method of allocation.--
``(A) Allocation among public power providers.--After the
Secretary determines the qualified projects of public power
providers which are appropriate for receiving an allocation
of the national new clean renewable energy bond limitation,
the Secretary shall, to the maximum extent practicable, make
allocations among such projects in such manner that the
amount allocated to each such project bears the same ratio to
the cost of such project as the limitation under paragraph
(2)(A) bears to the cost of all such projects.
``(B) Allocation among governmental bodies and cooperative
electric companies.--The Secretary shall make allocations of
the amount of the national new clean renewable energy bond
limitation described in paragraphs (2)(B) and (2)(C) among
qualified projects of governmental bodies and cooperative
electric companies, respectively, in such manner as the
Secretary determines appropriate.
``(d) Definitions.--For purposes of this section--
``(1) Qualified renewable energy facility.--The term
`qualified renewable energy facility' means a qualified
facility (as determined under section 45(d) without regard to
paragraphs (8) and (10) thereof and to any placed in service
date) owned by a public power provider, a governmental body,
or a cooperative electric company.
``(2) Public power provider.--The term `public power
provider' means a State utility with a service obligation, as
such terms are defined in section 217 of the Federal Power
Act (as in effect on the date of the enactment of this
paragraph).
``(3) Governmental body.--The term `governmental body'
means any State or Indian tribal government, or any political
subdivision thereof.
``(4) Cooperative electric company.--The term `cooperative
electric company' means a mutual or cooperative electric
company described in section 501(c)(12) or section
1381(a)(2)(C).
``(5) Clean renewable energy bond lender.--The term `clean
renewable energy bond lender' means a lender which is a
cooperative which is owned by, or has outstanding loans to,
100 or more cooperative electric companies and is in
existence on February 1, 2002, and shall include any
affiliated entity which is controlled by such lender.
``(6) Qualified issuer.--The term `qualified issuer' means
a public power provider, a cooperative electric company, a
governmental body, a clean renewable energy bond lender, or a
not-for-profit electric utility which has received a loan or
loan guarantee under the Rural Electrification Act.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) is amended to read as
follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a qualified forestry conservation bond, or
``(B) a new clean renewable energy bond,
which is part of an issue that meets requirements of
paragraphs (2), (3), (4), (5), and (6).''.
(2) Subparagraph (C) of section 54A(d)(2) is amended to
read as follows:
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means--
``(i) in the case of a qualified forestry conservation
bond, a purpose specified in section 54B(e), and
``(ii) in the case of a new clean renewable energy bond, a
purpose specified in section 54C(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54C. Qualified clean renewable energy bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
PART II--CARBON MITIGATION PROVISIONS
SEC. 3111. EXPANSION AND MODIFICATION OF ADVANCED COAL
PROJECT INVESTMENT CREDIT.
(a) Modification of Credit Amount.--Section 48A(a) is
amended by striking ``and'' at the end of paragraph (1), by
striking the period at the end of paragraph (2) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(3) 30 percent of the qualified investment for such
taxable year in the case of projects described in clause
(iii) of subsection (d)(3)(B).''.
(b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A)
is amended by striking ``$1,300,000,000'' and inserting
``$2,550,000,000''.
(c) Authorization of Additional Projects.--
(1) In general.--Subparagraph (B) of section 48A(d)(3) is
amended to read as follows:
``(B) Particular projects.--Of the dollar amount in
subparagraph (A), the Secretary is authorized to certify--
``(i) $800,000,000 for integrated gasification combined
cycle projects the application for which is submitted during
the period described in paragraph (2)(A)(i),
``(ii) $500,000,000 for projects which use other advanced
coal-based generation technologies the application for which
is submitted during the period described in paragraph
(2)(A)(i), and
``(iii) $1,250,000,000 for advanced coal-based generation
technology projects the application for which is submitted
during the period described in paragraph (2)(A)(ii).''.
(2) Application period for additional projects.--
Subparagraph (A) of section 48A(d)(2) is amended to read as
follows:
``(A) Application period.--Each applicant for certification
under this paragraph shall submit an application meeting the
requirements of subparagraph (B). An applicant may only
submit an application--
``(i) for an allocation from the dollar amount specified in
clause (i) or (ii) of paragraph (3)(B) during the 3-year
period beginning on the date the Secretary establishes the
program under paragraph (1), and
``(ii) for an allocation from the dollar amount specified
in paragraph (3)(B)(iii) during the 3-year period beginning
at the earlier of the termination of the period described in
clause (i) or the date prescribed by the Secretary.''.
(3) Capture and sequestration of carbon dioxide emissions
requirement.--
(A) In general.--Section 48A(e)(1) is amended by striking
``and'' at the end of subparagraph (E), by striking the
period at the end of subparagraph (F) and inserting ``;
and'', and by adding at the end the following new
subparagraph:
``(G) in the case of any project the application for which
is submitted during the period described in subsection
(d)(2)(A)(ii), the project includes equipment which separates
and sequesters at least 65 percent (70 percent in the case of
an application for reallocated credits under subsection
(d)(4)) of such project's total carbon dioxide emissions.''.
(B) Highest priority for projects which sequester carbon
dioxide emissions.--Section 48A(e)(3) is amended by striking
``and'' at the end of subparagraph (A)(iii), by striking the
period at the end of subparagraph (B)(iii) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(C) give highest priority to projects with the greatest
separation and sequestration percentage of total carbon
dioxide emissions.''.
[[Page S6037]]
(C) Recapture of credit for failure to sequester.--Section
48A is amended by adding at the end the following new
subsection:
``(i) Recapture of Credit for Failure To Sequester.--The
Secretary shall provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any
project which fails to attain or maintain the separation and
sequestration requirements of subsection (e)(1)(G).''.
(4) Additional priority for research partnerships.--Section
48A(e)(3)(B), as amended by paragraph (3)(B), is amended--
(A) by striking ``and'' at the end of clause (ii),
(B) by redesignating clause (iii) as clause (iv), and
(C) by inserting after clause (ii) the following new
clause:
``(iii) applicant participants who have a research
partnership with an eligible educational institution (as
defined in section 529(e)(5)), and''.
(5) Clerical amendment.--Section 48A(e)(3) is amended by
striking ``integrated gasification combined cycle'' in the
heading and inserting ``certain''.
(d) Disclosure of Allocations.--Section 48A(d) is amended
by adding at the end the following new paragraph:
``(5) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection or section
48B(d), publicly disclose the identity of the applicant and
the amount of the credit certified with respect to such
applicant.''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to credits the application for which is submitted during the
period described in section 48A(d)(2)(A)(ii) of the Internal
Revenue Code of 1986 and which are allocated or reallocated
after the date of the enactment of this Act.
(2) Disclosure of allocations.--The amendment made by
subsection (d) shall apply to certifications made after the
date of the enactment of this Act.
(3) Clerical amendment.--The amendment made by subsection
(c)(5) shall take effect as if included in the amendment made
by section 1307(b) of the Energy Tax Incentives Act of 2005.
SEC. 3112. EXPANSION AND MODIFICATION OF COAL GASIFICATION
INVESTMENT CREDIT.
(a) Modification of Credit Amount.--Section 48B(a) is
amended by inserting ``(30 percent in the case of credits
allocated under subsection (d)(1)(B))'' after ``20 percent''.
(b) Expansion of Aggregate Credits.--Section 48B(d)(1) is
amended by striking ``shall not exceed $350,000,000'' and all
that follows and inserting ``shall not exceed--
``(A) $350,000,000, plus
``(B) $250,000,000 for qualifying gasification projects
that include equipment which separates and sequesters at
least 75 percent of such project's total carbon dioxide
emissions.''.
(c) Recapture of Credit for Failure To Sequester.--Section
48B is amended by adding at the end the following new
subsection:
``(f) Recapture of Credit for Failure To Sequester.--The
Secretary shall provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any
project which fails to attain or maintain the separation and
sequestration requirements for such project under subsection
(d)(1).''.
(d) Selection Priorities.--Section 48B(d) is amended by
adding at the end the following new paragraph:
``(4) Selection priorities.--In determining which
qualifying gasification projects to certify under this
section, the Secretary shall--
``(A) give highest priority to projects with the greatest
separation and sequestration percentage of total carbon
dioxide emissions, and
``(B) give high priority to applicant participants who have
a research partnership with an eligible educational
institution (as defined in section 529(e)(5)).''.
(e) Effective Date.--The amendments made by this section
shall apply to credits described in section 48B(d)(1)(B) of
the Internal Revenue Code of 1986 which are allocated or
reallocated after the date of the enactment of this Act.
SEC. 3113. TEMPORARY INCREASE IN COAL EXCISE TAX.
Paragraph (2) of section 4121(e) is amended--
(1) by striking ``January 1, 2014'' in subparagraph (A) and
inserting ``December 31, 2018'', and
(2) by striking ``January 1 after 1981'' in subparagraph
(B) and inserting ``December 31 after 2007''.
SEC. 3114. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO
CERTAIN COAL PRODUCERS AND EXPORTERS.
(a) Refund.--
(1) Coal producers.--
(A) In general.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, if--
(i) a coal producer establishes that such coal producer, or
a party related to such coal producer, exported coal produced
by such coal producer to a foreign country or shipped coal
produced by such coal producer to a possession of the United
States, or caused such coal to be exported or shipped, the
export or shipment of which was other than through an
exporter who meets the requirements of paragraph (2),
(ii) such coal producer filed an excise tax return on or
after October 1, 1990, and on or before the date of the
enactment of this Act, and
(iii) such coal producer files a claim for refund with the
Secretary not later than the close of the 30-day period
beginning on the date of the enactment of this Act,
then the Secretary shall pay to such coal producer an amount
equal to the tax paid under section 4121 of such Code on such
coal exported or shipped by the coal producer or a party
related to such coal producer, or caused by the coal producer
or a party related to such coal producer to be exported or
shipped.
(B) Special rules for certain taxpayers.--For purposes of
this section--
(i) In general.--If a coal producer or a party related to a
coal producer has received a judgment described in clause
(iii), such coal producer shall be deemed to have established
the export of coal to a foreign country or shipment of coal
to a possession of the United States under subparagraph
(A)(i).
(ii) Amount of payment.--If a taxpayer described in clause
(i) is entitled to a payment under subparagraph (A), the
amount of such payment shall be reduced by any amount paid
pursuant to the judgment described in clause (iii).
(iii) Judgment described.--A judgment is described in this
subparagraph if such judgment--
(I) is made by a court of competent jurisdiction within the
United States,
(II) relates to the constitutionality of any tax paid on
exported coal under section 4121 of the Internal Revenue Code
of 1986, and
(III) is in favor of the coal producer or the party related
to the coal producer.
(2) Exporters.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, and a judgment described in paragraph (1)(B)(iii) of
this subsection, if--
(A) an exporter establishes that such exporter exported
coal to a foreign country or shipped coal to a possession of
the United States, or caused such coal to be so exported or
shipped,
(B) such exporter filed a tax return on or after October 1,
1990, and on or before the date of the enactment of this Act,
and
(C) such exporter files a claim for refund with the
Secretary not later than the close of the 30-day period
beginning on the date of the enactment of this Act,
then the Secretary shall pay to such exporter an amount equal
to $0.825 per ton of such coal exported by the exporter or
caused to be exported or shipped, or caused to be exported or
shipped, by the exporter.
(b) Limitations.--Subsection (a) shall not apply with
respect to exported coal if a settlement with the Federal
Government has been made with and accepted by, the coal
producer, a party related to such coal producer, or the
exporter, of such coal, as of the date that the claim is
filed under this section with respect to such exported coal.
For purposes of this subsection, the term ``settlement with
the Federal Government'' shall not include any settlement or
stipulation entered into as of the date of the enactment of
this Act, the terms of which contemplate a judgment
concerning which any party has reserved the right to file an
appeal, or has filed an appeal.
(c) Subsequent Refund Prohibited.--No refund shall be made
under this section to the extent that a credit or refund of
such tax on such exported or shipped coal has been paid to
any person.
(d) Definitions.--For purposes of this section--
(1) Coal producer.--The term ``coal producer'' means the
person in whom is vested ownership of the coal immediately
after the coal is severed from the ground, without regard to
the existence of any contractual arrangement for the sale or
other disposition of the coal or the payment of any royalties
between the producer and third parties. The term includes any
person who extracts coal from coal waste refuse piles or from
the silt waste product which results from the wet washing (or
similar processing) of coal.
(2) Exporter.--The term ``exporter'' means a person, other
than a coal producer, who does not have a contract, fee
arrangement, or any other agreement with a producer or seller
of such coal to export or ship such coal to a third party on
behalf of the producer or seller of such coal and--
(A) is indicated in the shipper's export declaration or
other documentation as the exporter of record, or
(B) actually exported such coal to a foreign country or
shipped such coal to a possession of the United States, or
caused such coal to be so exported or shipped.
(3) Related party.--The term ``a party related to such coal
producer'' means a person who--
(A) is related to such coal producer through any degree of
common management, stock ownership, or voting control,
(B) is related (within the meaning of section 144(a)(3) of
the Internal Revenue Code of 1986) to such coal producer, or
(C) has a contract, fee arrangement, or any other agreement
with such coal producer to sell such coal to a third party on
behalf of such coal producer.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Treasury or the Secretary's designee.
(e) Timing of Refund.--With respect to any claim for refund
filed pursuant to this section, the Secretary shall determine
whether the requirements of this section are met not later
than 180 days after such claim is filed. If the Secretary
determines that the
[[Page S6038]]
requirements of this section are met, the claim for refund
shall be paid not later than 180 days after the Secretary
makes such determination.
(f) Interest.--Any refund paid pursuant to this section
shall be paid by the Secretary with interest from the date of
overpayment determined by using the overpayment rate and
method under section 6621 of the Internal Revenue Code of
1986.
(g) Denial of Double Benefit.--The payment under subsection
(a) with respect to any coal shall not exceed--
(1) in the case of a payment to a coal producer, the amount
of tax paid under section 4121 of the Internal Revenue Code
of 1986 with respect to such coal by such coal producer or a
party related to such coal producer, and
(2) in the case of a payment to an exporter, an amount
equal to $0.825 per ton with respect to such coal exported by
the exporter or caused to be exported by the exporter.
(h) Application of Section.--This section applies only to
claims on coal exported or shipped on or after October 1,
1990, through the date of the enactment of this Act.
(i) Standing Not Conferred.--
(1) Exporters.--With respect to exporters, this section
shall not confer standing upon an exporter to commence, or
intervene in, any judicial or administrative proceeding
concerning a claim for refund by a coal producer of any
Federal or State tax, fee, or royalty paid by the coal
producer.
(2) Coal producers.--With respect to coal producers, this
section shall not confer standing upon a coal producer to
commence, or intervene in, any judicial or administrative
proceeding concerning a claim for refund by an exporter of
any Federal or State tax, fee, or royalty paid by the
producer and alleged to have been passed on to an exporter.
SEC. 3115. CARBON AUDIT OF THE TAX CODE.
(a) Study.--The Secretary of the Treasury shall enter into
an agreement with the National Academy of Sciences to
undertake a comprehensive review of the Internal Revenue Code
of 1986 to identify the types of and specific tax provisions
that have the largest effects on carbon and other greenhouse
gas emissions and to estimate the magnitude of those effects.
(b) Report.--Not later than 2 years after the date of
enactment of this Act, the National Academy of Sciences shall
submit to Congress a report containing the results of study
authorized under this section.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,500,000 for
the period of fiscal years 2008 and 2009.
Subtitle B--Transportation and Domestic Fuel Security Provisions
SEC. 3121. INCLUSION OF CELLULOSIC BIOFUEL IN BONUS
DEPRECIATION FOR BIOMASS ETHANOL PLANT
PROPERTY.
(a) In General.--Paragraph (3) of section 168(l) is amended
to read as follows:
``(3) Cellulosic biofuel.--The term `cellulosic biofuel'
means any liquid fuel which is produced from any
lignocellulosic or hemicellulosic matter that is available on
a renewable or recurring basis.''.
(b) Conforming Amendments.--Subsection (l) of section 168
is amended--
(1) by striking ``cellulosic biomass ethanol'' each place
it appears and inserting ``cellulosic biofuel'',
(2) by striking ``Cellulosic Biomass Ethanol'' in the
heading of such subsection and inserting ``Cellulosic
Biofuel'', and
(3) by striking ``cellulosic biomass ethanol'' in the
heading of paragraph (2) thereof 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. 3122. CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.
(a) In General.--Sections 40A(g), 6426(c)(6), and
6427(e)(5)(B) are each amended by striking ``December 31,
2008'' and inserting ``December 31, 2009''.
(b) Increase in Rate of Credit.--
(1) Income tax credit.--Paragraphs (1)(A) and (2)(A) of
section 40A(b) are each amended by striking ``50 cents'' and
inserting ``$1.00''.
(2) Excise tax credit.--Paragraph (2) of section 6426(c) is
amended to read as follows:
``(2) Applicable amount.--For purposes of this subsection,
the applicable amount is $1.00.''.
(3) Conforming amendments.--
(A) Subsection (b) of section 40A is amended by striking
paragraph (3) and by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(B) Paragraph (2) of section 40A(f) is amended to read as
follows:
``(2) Exception.--Subsection (b)(4) shall not apply with
respect to renewable diesel.''.
(C) Paragraphs (2) and (3) of section 40A(e) are each
amended by striking ``subsection (b)(5)(C)'' and inserting
``subsection (b)(4)(C)''.
(D) Clause (ii) of section 40A(d)(3)(C) is amended by
striking ``subsection (b)(5)(B)'' and inserting ``subsection
(b)(4)(B)''.
(c) Uniform Treatment of Diesel Produced From Biomass.--
Paragraph (3) of section 40A(f) is amended--
(1) by striking ``diesel fuel'' and inserting ``liquid
fuel'',
(2) by striking ``using a thermal depolymerization
process'', and
(3) by striking ``or D396'' in subparagraph (B) and
inserting ``, D396, or other equivalent standard approved by
the Secretary''.
(d) Coproduction of Renewable Diesel With Petroleum
Feedstock.--
(1) In general.--Paragraph (3) of section 40A(f) (defining
renewable diesel) is amended by adding at the end the
following new sentence: ``Such term does not include any fuel
derived from coprocessing biomass with a feedstock which is
not biomass. For purposes of this paragraph, the term
`biomass' has the meaning given such term by section
45K(c)(3).''.
(2) Conforming amendment.--Paragraph (3) of section 40A(f)
is amended by striking ``(as defined in section 45K(c)(3))''.
(e) Eligibility of Certain Aviation Fuel.--Paragraph (3) of
section 40A(f) (defining renewable diesel) is amended by
adding at the end the following: ``The term `renewable
diesel' also means fuel derived from biomass which meets the
requirements of a Department of Defense specification for
military jet fuel or an American Society of Testing and
Materials specification for aviation turbine fuel.''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to fuel produced, and sold or used, after December 31, 2008.
(2) Coproduction of renewable diesel with petroleum
feedstock.--The amendments made by subsection (d) shall apply
to fuel produced, and sold or used, after the date of the
enactment of this Act.
SEC. 3123. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED
TO PROVIDE AN INCENTIVE FOR UNITED STATES
PRODUCTION.
(a) Alcohol Fuels Credit.--Paragraph (6) of section 40(d)
is amended to read as follows:
``(6) Limitation to alcohol with connection to the united
states.--No credit shall be determined under this section
with respect to any alcohol which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(b) Biodiesel Fuels Credit.--Subsection (d) of section 40A
is amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section
with respect to any biodiesel which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(c) Excise Tax Credit.--
(1) In general.--Section 6426 is amended by adding at the
end the following new subsection:
``(i) Limitation to Fuels With Connection to the United
States.--
``(1) Alcohol.--No credit shall be determined under this
section with respect to any alcohol which is produced outside
the United States for use as a fuel outside the United
States.
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel
or alternative fuel which is produced outside the United
States for use as a fuel outside the United States.
For purposes of this subsection, the term `United States'
includes any possession of the United States.''.
(2) Conforming amendment.--Subsection (e) of section 6427
is amended by redesignating paragraph (5) as paragraph (6)
and by inserting after paragraph (4) the following new
paragraph:
``(5) Limitation to fuels with connection to the united
states.--No amount shall be payable under paragraph (1) or
(2) with respect to any mixture or alternative fuel if credit
is not allowed with respect to such mixture or alternative
fuel by reason of section 6426(i).''.
(d) Effective Date.--The amendments made by this section
shall apply to claims for credit or payment made on or after
May 15, 2008.
SEC. 3124. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE
MOTOR VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
section:
``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLES.
``(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 the sum of the credit amounts
determined under subsection (b) with respect to each new
qualified plug-in electric drive motor vehicle placed in
service by the taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this
subsection with respect to any new qualified plug-in electric
drive motor vehicle is the sum of the amounts determined
under paragraphs (2) and (3) with respect to such vehicle.
``(2) Base amount.--The amount determined under this
paragraph is $3,000.
``(3) Battery capacity.--In the case of a vehicle which
draws propulsion energy from a battery with not less than 5
kilowatt hours of capacity, the amount determined under this
paragraph is $200, plus $200 for each kilowatt hour of
capacity in excess of 5 kilowatt hours. The amount determined
under this paragraph shall not exceed $2,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the
[[Page S6039]]
credit which would be allowed under subsection (a) for any
taxable year (determined without regard to this subsection)
that is attributable to property of a character subject to an
allowance for depreciation shall be treated as a credit
listed in section 38(b) for such taxable year (and not
allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the credit
allowed under subsection (a) for any taxable year (determined
after application of paragraph (1)) shall be treated as a
credit allowable under subpart A for such taxable year.
``(B) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall not
exceed the excess of--
``(i) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under subpart A
(other than this section and sections 23 and 25D) and section
27 for the taxable year.
``(d) New Qualified Plug-In Electric Drive Motor Vehicle.--
For purposes of this section--
``(1) In general.--The term `new qualified plug-in electric
drive motor vehicle' means a motor vehicle (as defined in
section 30(c)(2))--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the taxpayer
and not for resale,
``(C) which is made by a manufacturer,
``(D) which has a gross vehicle weight rating of less than
14,000 pounds,
``(E) which has received a certificate of conformity under
the Clean Air Act and meets or exceeds the Bin 5 Tier II
emission standard established in regulations prescribed by
the Administrator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act for that make and
model year vehicle, and
``(F) which is propelled to a significant extent by an
electric motor which draws electricity from a battery which--
``(i) has a capacity of not less than 4 kilowatt hours, and
``(ii) is capable of being recharged from an external
source of electricity.
``(2) Exception.--The term `new qualified plug-in electric
drive motor vehicle' shall not include any vehicle which is
not a passenger automobile or light truck if such vehicle has
a gross vehicle weight rating of less than 8,500 pounds.
``(3) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meanings given
such terms in regulations prescribed by the Administrator of
the Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C.
7521 et seq.).
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours,
as measured from a 100 percent state of charge to a 0 percent
state of charge.
``(e) Limitation on Number of New Qualified Plug-In
Electric Drive Motor Vehicles Eligible for Credit.--
``(1) In general.--In the case of a new qualified plug-in
electric drive motor vehicle sold during the phaseout period,
only the applicable percentage of the credit otherwise
allowable under subsection (a) shall be allowed.
``(2) Phaseout period.--For purposes of this subsection,
the phaseout period is the period beginning with the second
calendar quarter following the calendar quarter which
includes the first date on which the number of new qualified
plug-in electric drive motor vehicles manufactured by the
manufacturer of the vehicle referred to in paragraph (1) sold
for use in the United States after the date of the enactment
of this section, is at least 60,000.
``(3) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is--
``(A) 50 percent for the first 2 calendar quarters of the
phaseout period,
``(B) 25 percent for the 3d and 4th calendar quarters of
the phaseout period, and
``(C) 0 percent for each calendar quarter thereafter.
``(4) Controlled groups.--Rules similar to the rules of
section 30B(f)(4) shall apply for purposes of this
subsection.
``(f) Special Rules.--
``(1) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced
by the amount of such credit (determined without regard to
subsection (c)).
``(2) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which
ceases to be property eligible for such credit.
``(3) Property used outside united states, etc., not
qualified.--No credit shall be allowed under subsection (a)
with respect to any property referred to in section 50(b)(1)
or with respect to the portion of the cost of any property
taken into account under section 179.
``(4) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(5) Property used by tax-exempt entity; interaction with
air quality and motor vehicle safety standards.--Rules
similar to the rules of paragraphs (6) and (10) of section
30B(h) shall apply for purposes of this section.''.
(b) Coordination With Alternative Motor Vehicle Credit.--
Section 30B(d)(3) is amended by adding at the end the
following new subparagraph:
``(D) Exclusion of plug-in vehicles.--Any vehicle with
respect to which a credit is allowable under section 30D
(determined without regard to subsection (c) thereof) shall
not be taken into account under this section.''.
(c) Credit Made Part of General Business Credit.--Section
38(b) is amended--
(1) by striking ``and'' each place it appears at the end of
any paragraph,
(2) by striking ``plus'' each place it appears at the end
of any paragraph,
(3) by striking the period at the end of paragraph (32) and
inserting ``, plus'', and
(4) by adding at the end the following new paragraph:
``(33) the portion of the new qualified plug-in electric
drive motor vehicle credit to which section 30D(c)(1)
applies.''.
(d) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by section 104, is
amended by striking ``and 25D'' and inserting ``25D, and
30D''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting
``30D,'' after ``25D,''.
(C) Section 25B(g)(2), as amended by section 104, is
amended by striking ``and 25D'' and inserting ``, 25D, and
30D''.
(D) Section 26(a)(1), as amended by section 104, is amended
by striking ``and 25D'' and inserting ``25D, and 30D''.
(E) Section 1400C(d)(2) is amended by striking ``and 25D''
and inserting ``25D, and 30D''.
(2) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (35), by striking the period at the end of
paragraph (36) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(37) to the extent provided in section 30D(f)(1).''.
(3) Section 6501(m) is amended by inserting ``30D(f)(4),''
after ``30C(e)(5),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 30D. New qualified plug-in electric drive motor vehicles.''.
(e) Treatment of Alternative Motor Vehicle Credit as a
Personal Credit.--
(1) In general.--Paragraph (2) of section 30B(g) is amended
to read as follows:
``(2) Personal credit.--The credit allowed under subsection
(a) for any taxable year (after application of paragraph (1))
shall be treated as a credit allowable under subpart A for
such taxable year.''.
(2) Conforming amendments.--
(A) Subparagraph (A) of section 30C(d)(2) is amended by
striking ``sections 27, 30, and 30B'' and inserting
``sections 27 and 30''.
(B) Paragraph (3) of section 55(c) is amended by striking
``30B(g)(2),''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years beginning after December 31, 2008.
(2) Treatment of alternative motor vehicle credit as
personal credit.--The amendments made by subsection (e) shall
apply to taxable years beginning after December 31, 2007.
(g) Application of EGTRRA Sunset.--The amendment made by
subsection (d)(1)(A) shall be subject to title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 in
the same manner as the provision of such Act to which such
amendment relates.
SEC. 3125. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING
REDUCTION UNITS AND ADVANCED INSULATION.
(a) In General.--Section 4053 is amended by adding at the
end the following new paragraphs:
``(9) Idling reduction device.--Any device or system of
devices which--
``(A) is designed to provide to a vehicle those services
(such as heat, air conditioning, or electricity) that would
otherwise require the operation of the main drive engine
while the vehicle is temporarily parked or remains stationary
using one or more devices affixed to a tractor, and
``(B) is determined by the Administrator of the
Environmental Protection Agency, in consultation with the
Secretary of Energy and the Secretary of Transportation, to
reduce idling of such vehicle at a motor vehicle rest stop or
other location where such vehicles are temporarily parked or
remain stationary.
``(10) Advanced insulation.--Any insulation that has an R
value of not less than R35 per inch.''.
(b) Effective Date.--The amendment made by this section
shall apply to sales or installations after the date of the
enactment of this Act.
SEC. 3126. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX
CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is
amended by redesignating section 1400L as section 1400K and
by adding at the end the following new section:
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone
governmental unit, there shall be allowed as a credit against
any taxes imposed for any payroll period by section 3402 for
which such governmental unit is liable under section 3403 an
amount equal to so
[[Page S6040]]
much of the portion of the qualifying project expenditure
amount allocated under subsection (b)(3) to such governmental
unit for the calendar year as is allocated by such
governmental unit to such period under subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes
of this section--
``(1) In general.--The term `qualifying project expenditure
amount' means, with respect to any calendar year, the sum
of--
``(A) the total expenditures paid or incurred during such
calendar year by all New York Liberty Zone governmental units
and the Port Authority of New York and New Jersey for any
portion of qualifying projects located wholly within the City
of New York, New York, and
``(B) any such expenditures--
``(i) paid or incurred in any preceding calendar year which
begins after the date of enactment of this section, and
``(ii) not previously allocated under paragraph (3).
``(2) Qualifying project.--The term `qualifying project'
means any transportation infrastructure project, including
highways, mass transit systems, railroads, airports, ports,
and waterways, in or connecting with the New York Liberty
Zone (as defined in section 1400K(h)), which is designated as
a qualifying project under this section jointly by the
Governor of the State of New York and the Mayor of the City
of New York, New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State of New York
and the Mayor of the City of New York, New York, shall
jointly allocate to each New York Liberty Zone governmental
unit the portion of the qualifying project expenditure amount
which may be taken into account by such governmental unit
under subsection (a) for any calendar year in the credit
period.
``(B) Aggregate limit.--The aggregate amount which may be
allocated under subparagraph (A) for all calendar years in
the credit period shall not exceed $2,000,000,000.
``(C) Annual limit.--The aggregate amount which may be
allocated under subparagraph (A) for any calendar year in the
credit period shall not exceed the sum of--
``(i) $115,000,000 ($425,000,000 in the case of the last 2
years in the credit period), plus
``(ii) the aggregate amount authorized to be allocated
under this paragraph for all preceding calendar years in the
credit period which was not so allocated.
``(D) Unallocated amounts at end of credit period.--If, as
of the close of the credit period, the amount under
subparagraph (B) exceeds the aggregate amount allocated under
subparagraph (A) for all calendar years in the credit period,
the Governor of the State of New York and the Mayor of the
City of New York, New York, may jointly allocate to New York
Liberty Zone governmental units for any calendar year in the
5-year period following the credit period an amount equal
to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project expenditure amount for such
calendar year, reduced by
``(ii) the aggregate amount allocated under this
subparagraph for all preceding calendar years.
``(4) Allocation to payroll periods.--Each New York Liberty
Zone governmental unit which has been allocated a portion of
the qualifying project expenditure amount under paragraph (3)
for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental
unit determines appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph (2), if
the amount allocated under subsection (b)(3) to a New York
Liberty Zone governmental unit for any calendar year exceeds
the aggregate taxes imposed by section 3402 for which such
governmental unit is liable under section 3403 for periods
beginning in such year, such excess shall be carried to the
succeeding calendar year and added to the allocation of such
governmental unit for such succeeding calendar year.
``(2) Reallocation.--If a New York Liberty Zone
governmental unit does not use an amount allocated to it
under subsection (b)(3) within the time prescribed by the
Governor of the State of New York and the Mayor of the City
of New York, New York, then such amount shall after such time
be treated for purposes of subsection (b)(3) in the same
manner as if it had never been allocated.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Credit period.--The term `credit period' means the
12-year period beginning on January 1, 2009.
``(2) New york liberty zone governmental unit.--The term
`New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
``(C) any agency or instrumentality of such State or City.
``(3) Treatment of funds.--Any expenditure for a qualifying
project taken into account for purposes of the credit under
this section shall be considered State and local funds for
the purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of
withholding taxes.--For purposes of this title, a New York
Liberty Zone governmental unit shall be treated as having
paid to the Secretary, on the day on which wages are paid to
employees, an amount equal to the amount of the credit
allowed to such entity under subsection (a) with respect to
such wages, but only if such governmental unit deducts and
withholds wages for such payroll period under section 3401
(relating to wage withholding).
``(e) Reporting.--The Governor of the State of New York and
the Mayor of the City of New York, New York, shall jointly
submit to the Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure amount for the
calendar year, and
``(B) the amount allocated to each New York Liberty Zone
governmental unit under subsection (b)(3) for the calendar
year, and
``(2) includes such other information as the Secretary may
require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance
as may be necessary or appropriate to ensure compliance with
the purposes of this section.''.
(b) Termination of Special Allowance and Expensing.--
Subparagraph (A) of section 1400K(b)(2), as redesignated by
subsection (a), is amended by striking the parenthetical
therein and inserting ``(in the case of nonresidential real
property and residential rental property, the date of the
enactment of the Federal Housing Finance Regulatory Reform
Act of 2008 or, if acquired pursuant to a binding contract in
effect on such enactment date, December 31, 2009)''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking ``section
1400L(a)'' and inserting ``section 1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``section
1400K(c)(2)''.
(3) The table of sections for part I of subchapter Y of
chapter 1 is amended by redesignating the item relating to
section 1400L as an item relating to section 1400K and by
inserting after such item the following new item:
``Sec. 1400L. New York Liberty Zone tax credits.''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 3127. TRANSPORTATION FRINGE BENEFIT TO BICYCLE
COMMUTERS.
(a) In General.--Paragraph (1) of section 132(f) is amended
by adding at the end the following:
``(D) Any qualified bicycle commuting reimbursement.''.
(b) Limitation on Exclusion.--Paragraph (2) of section
132(f) 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) the applicable annual limitation in the case of any
qualified bicycle commuting reimbursement.''.
(c) Definitions.--Paragraph (5) of section 132(f) is
amended by adding at the end the following:
``(F) Definitions related to bicycle commuting
reimbursement.--
``(i) Qualified bicycle commuting reimbursement.--The term
`qualified bicycle commuting reimbursement' means, with
respect to any calendar year, any employer reimbursement
during the 15-month period beginning with the first day of
such calendar year for reasonable expenses incurred by the
employee during such calendar year for the purchase of a
bicycle and bicycle improvements, repair, and storage, if
such bicycle is regularly used for travel between the
employee's residence and place of employment.
``(ii) Applicable annual limitation.--The term `applicable
annual limitation' means, with respect to any employee for
any calendar year, the product of $20 multiplied by the
number of qualified bicycle commuting months during such
year.
``(iii) Qualified bicycle commuting month.--The term
`qualified bicycle commuting month' means, with respect to
any employee, any month during which such employee--
``(I) regularly uses the bicycle for a substantial portion
of the travel between the employee's residence and place of
employment, and
``(II) does not receive any benefit described in
subparagraph (A), (B), or (C) of paragraph (1).''.
(d) Constructive Receipt of Benefit.--Paragraph (4) of
section 132(f) is amended by inserting ``(other than a
qualified bicycle commuting reimbursement)'' after
``qualified transportation fringe''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
SEC. 3128. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY
CREDIT.
(a) Increase in Credit Amount.--Section 30C is amended--
(1) by striking ``30 percent'' in subsection (a) and
inserting ``50 percent'', and
(2) by striking ``$30,000'' in subsection (b)(1) and
inserting ``$50,000''.
(b) Extension of Credit.--Paragraph (2) of section 30C(g)
is amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(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.
[[Page S6041]]
Subtitle C--Energy Conservation and Efficiency Provisions
SEC. 3141. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1, as amended by section 3106, is amended by adding
at the end the following new section:
``SEC. 54D. QUALIFIED ENERGY CONSERVATION BONDS.
``(a) Qualified Energy Conservation Bond.--For purposes of
this subchapter, the term `qualified energy conservation
bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for one or more qualified conservation
purposes,
``(2) the bond is issued by a State or local government,
and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Reduced Credit Amount.--The annual credit determined
under section 54A(b) with respect to any qualified energy
conservation bond shall be 70 percent of the amount so
determined without regard to this subsection.
``(c) Limitation on Amount of Bonds Designated.--The
maximum aggregate face amount of bonds which may be
designated under subsection (a) by any issuer shall not
exceed the limitation amount allocated to such issuer under
subsection (e).
``(d) National Limitation on Amount of Bonds Designated.--
There is a national qualified energy conservation bond
limitation of $3,000,000,000.
``(e) Allocations.--
``(1) In general.--The limitation applicable under
subsection (d) shall be allocated by the Secretary among the
States in proportion to the population of the States.
``(2) Allocations to largest local governments.--
``(A) In general.--In the case of any State in which there
is a large local government, each such local government shall
be allocated a portion of such State's allocation which bears
the same ratio to the State's allocation (determined without
regard to this subparagraph) as the population of such large
local government bears to the population of such State.
``(B) Allocation of unused limitation to state.--The amount
allocated under this subsection to a large local government
may be reallocated by such local government to the State in
which such local government is located.
``(C) Large local government.--For purposes of this
section, the term `large local government' means any
municipality or county if such municipality or county has a
population of 100,000 or more.
``(3) Allocation to issuers; restriction on private
activity bonds.--Any allocation under this subsection to a
State or large local government shall be allocated by such
State or large local government to issuers within the State
in a manner that results in not less than 70 percent of the
allocation to such State or large local government being used
to designate bonds which are not private activity bonds.
``(f) Qualified Conservation Purpose.--For purposes of this
section--
``(1) In general.--The term `qualified conservation
purpose' means any of the following:
``(A) Capital expenditures incurred for purposes of--
``(i) reducing energy consumption in publicly-owned
buildings by at least 20 percent,
``(ii) implementing green community programs,
``(iii) rural development involving the production of
electricity from renewable energy resources, or
``(iv) any qualified facility (as determined under section
45(d) without regard to paragraphs (8) and (10) thereof and
without regard to any placed in service date).
``(B) Expenditures with respect to research facilities, and
research grants, to support research in--
``(i) development of cellulosic ethanol or other nonfossil
fuels,
``(ii) technologies for the capture and sequestration of
carbon dioxide produced through the use of fossil fuels,
``(iii) increasing the efficiency of existing technologies
for producing nonfossil fuels,
``(iv) automobile battery technologies and other
technologies to reduce fossil fuel consumption in
transportation, or
``(v) technologies to reduce energy use in buildings.
``(C) Mass commuting facilities and related facilities that
reduce the consumption of energy, including expenditures to
reduce pollution from vehicles used for mass commuting.
``(D) Demonstration projects designed to promote the
commercialization of--
``(i) green building technology,
``(ii) conversion of agricultural waste for use in the
production of fuel or otherwise,
``(iii) advanced battery manufacturing technologies,
``(iv) technologies to reduce peak use of electricity, or
``(v) technologies for the capture and sequestration of
carbon dioxide emitted from combusting fossil fuels in order
to produce electricity.
``(E) Public education campaigns to promote energy
efficiency.
``(2) Special rules for private activity bonds.--For
purposes of this section, in the case of any private activity
bond, the term `qualified conservation purposes' shall not
include any expenditure which is not a capital expenditure.
``(g) Population.--
``(1) In general.--The population of any State or local
government shall be determined for purposes of this section
as provided in section 146(j) for the calendar year which
includes the date of the enactment of this section.
``(2) Special rule for counties.--In determining the
population of any county for purposes of this section, any
population of such county which is taken into account in
determining the population of any municipality which is a
large local government shall not be taken into account in
determining the population of such county.
``(h) Application to Indian Tribal Governments.--An Indian
tribal government shall be treated for purposes of this
section in the same manner as a large local government,
except that--
``(1) an Indian tribal government shall be treated for
purposes of subsection (e) as located within a State to the
extent of so much of the population of such government as
resides within such State, and
``(2) any bond issued by an Indian tribal government shall
be treated as a qualified energy conservation bond only if
issued as part of an issue the available project proceeds of
which are used for purposes for which such Indian tribal
government could issue bonds to which section 103(a)
applies.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as amended by section
3106, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a qualified forestry conservation bond,
``(B) a new clean renewable energy bond, or
``(C) a qualified energy conservation bond,
which is part of an issue that meets requirements of
paragraphs (2), (3), (4), (5), and (6).''.
(2) Subparagraph (C) of section 54A(d)(2), as amended by
section 3106, is amended to read as follows:
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means--
``(i) in the case of a qualified forestry conservation
bond, a purpose specified in section 54B(e),
``(ii) in the case of a new clean renewable energy bond, a
purpose specified in section 54C(a)(1), and
``(iii) in the case of a qualified energy conservation
bond, a purpose specified in section 54D(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54D. Qualified energy conservation bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 3142. CREDIT FOR NONBUSINESS ENERGY PROPERTY.
(a) Extension of Credit.--Section 25C(g) is amended by
striking ``December 31, 2007'' and inserting ``December 31,
2008''.
(b) Qualified Biomass Fuel Property.--
(1) In general.--Section 25C(d)(3) is amended--
(A) by striking ``and'' at the end of subparagraph (D),
(B) by striking the period at the end of subparagraph (E)
and inserting ``, and'', and
(C) by adding at the end the following new subparagraph:
``(F) a stove which uses the burning of biomass fuel to
heat a dwelling unit located in the United States and used as
a residence by the taxpayer, or to heat water for use in such
a dwelling unit, and which has a thermal efficiency rating of
at least 75 percent.''.
(2) Biomass fuel.--Section 25C(d) is amended by adding at
the end the following new paragraph:
``(6) Biomass fuel.--The term `biomass fuel' means any
plant-derived fuel available on a renewable or recurring
basis, including agricultural crops and trees, wood and wood
waste and residues (including wood pellets), plants
(including aquatic plants), grasses, residues, and fibers.''.
(c) Coordination With Credit for Qualified Geothermal Heat
Pump Property Expenditures.--
(1) In general.--Paragraph (3) of section 25C(d), as
amended by subsection (b), is amended by striking
subparagraph (C) and by redesignating subparagraphs (D), (E),
and (F) as subparagraphs (C), (D), and (E), respectively.
(2) Conforming amendment.--Subparagraph (C) of section
25C(d)(2) is amended to read as follows:
``(C) Requirements and standards for air conditioners and
heat pumps.--The standards and requirements prescribed by the
Secretary under subparagraph (B) with respect to the energy
efficiency ratio (EER) for central air conditioners and
electric heat pumps--
``(i) shall require measurements to be based on published
data which is tested by manufacturers at 95 degrees
Fahrenheit, and
``(ii) may be based on the certified data of the Air
Conditioning and Refrigeration Institute that are prepared in
partnership with the Consortium for Energy Efficiency.''.
(d) Modification of Qualified Energy Efficiency
Improvements.--
(1) In general.--Paragraph (1) of section 25C(c) is amended
by inserting ``, or an asphalt roof with appropriate cooling
granules,'' before ``which meet the Energy Star program
requirements''.
[[Page S6042]]
(2) Building envelope component.--Subparagraph (D) of
section 25C(c)(2) is amended--
(A) by inserting ``or asphalt roof'' after ``metal roof'',
and
(B) by inserting ``or cooling granules'' after ``pigmented
coatings''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made this section shall apply to expenditures made
after December 31, 2007.
(2) Modification of qualified energy efficiency
improvements.--The amendments made by subsection (d) shall
apply to property placed in service after the date of the
enactment of this Act.
SEC. 3143. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
Subsection (h) of section 179D is amended by striking
``December 31, 2008'' and inserting ``December 31, 2013''.
SEC. 3144. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT
FOR APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M is amended
to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is manufactured
in calendar year 2008 or 2009 and which uses no more than 324
kilowatt hours per year and 5.8 gallons per cycle, and
``(B) $75 in the case of a dishwasher which is manufactured
in calendar year 2008, 2009, or 2010 and which uses no more
than 307 kilowatt hours per year and 5.0 gallons per cycle
(5.5 gallons per cycle for dishwashers designed for greater
than 12 place settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 which meets or
exceeds a 1.72 modified energy factor and does not exceed a
8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 or 2009 which meets
or exceeds a 1.8 modified energy factor and does not exceed a
7.5 water consumption factor,
``(C) $150 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009, or
2010 which meets or exceeds 2.0 modified energy factor and
does not exceed a 6.0 water consumption factor, and
``(D) $250 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009, or
2010 which meets or exceeds 2.2 modified energy factor and
does not exceed a 4.5 water consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is
manufactured in calendar year 2008, and consumes at least 20
percent but not more than 22.9 percent less kilowatt hours
per year than the 2001 energy conservation standards,
``(B) $75 in the case of a refrigerator which is
manufactured in calendar year 2008 or 2009, and consumes at
least 23 percent but no more than 24.9 percent less kilowatt
hours per year than the 2001 energy conservation standards,
``(C) $100 in the case of a refrigerator which is
manufactured in calendar year 2008, 2009, or 2010, and
consumes at least 25 percent but not more than 29.9 percent
less kilowatt hours per year than the 2001 energy
conservation standards, and
``(D) $200 in the case of a refrigerator manufactured in
calendar year 2008, 2009, or 2010 and which consumes at least
30 percent less energy than the 2001 energy conservation
standards.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c)
of section 45M is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that follows
through ``the eligible'' and inserting ``The eligible'',
(C) by moving the text of such subsection in line with the
subsection heading, and
(D) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively, and by moving such
paragraphs 2 ems to the left.
(2) Modification of base period.--Paragraph (2) of section
45M(c), as amended by paragraph (1), is amended by striking
``3-calendar year'' and inserting ``2-calendar year''.
(c) Types of Energy Efficient Appliances.--Subsection (d)
of section 45M (defining types of energy efficient
appliances) is amended to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of
this section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2), and
``(3) refrigerators described in subsection (b)(3).''.
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e) is
amended to read as follows:
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with respect to
a taxpayer for any taxable year shall not exceed $75,000,000
reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior
taxable years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes
washers.--Paragraph (2) of section 45M(e) is amended to read
as follows:
``(2) Amount allowed for certain refrigerators and clothes
washers.--Refrigerators described in subsection (b)(3)(D) and
clothes washers described in subsection (b)(2)(D) shall not
be taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining
qualified energy efficient appliance) is amended to read as
follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection (b)(1),
``(B) any clothes washer described in subsection (b)(2),
and
``(C) any refrigerator described in subsection (b)(3).''.
(2) Clothes washer.--Section 45M(f)(3) is amended by
inserting ``commercial'' before ``residential'' the second
place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section
45M is amended by redesignating paragraphs (4), (5), (6), and
(7) as paragraphs (5), (6), (7), and (8), respectively, and
by inserting after paragraph (3) the following new paragraph:
``(4) Top-loading clothes washer.--The term `top-loading
clothes washer' means a clothes washer which has the clothes
container compartment access located on the top of the
machine and which operates on a vertical axis.''.
(4) Replacement of energy factor.--Section 45M(f)(6), as
redesignated by paragraph (3), is amended to read as follows:
``(6) Modified energy factor.--The term `modified energy
factor' means the modified energy factor established by the
Department of Energy for compliance with the Federal energy
conservation standard.''.
(5) Gallons per cycle; water consumption factor.--Section
45M(f), as amended by paragraph (3), is amended by adding at
the end the following:
``(9) Gallons per cycle.--The term `gallons per cycle'
means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of
a dishwasher.
``(10) Water consumption factor.--The term `water
consumption factor' means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water
consumption divided by the cubic foot (or liter) capacity of
the clothes washer.''.
(f) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2007.
SEC. 3145. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF
SMART METERS AND SMART GRID SYSTEMS.
(a) In General.--Section 168(e)(3)(D) is amended by
striking ``and'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting a comma, and
by inserting after clause (ii) the following new clauses:
``(iii) any qualified smart electric meter, and
``(iv) any qualified smart electric grid system.''.
(b) Definitions.--Section 168(i) is amended by inserting at
the end the following new paragraph:
``(18) Qualified smart electric meters.--
``(A) In general.--The term `qualified smart electric
meter' means any smart electric meter which is placed in
service by a taxpayer who is a supplier of electric energy or
a provider of electric energy services.
``(B) Smart electric meter.--For purposes of subparagraph
(A), the term `smart electric meter' means any time-based
meter and related communication equipment which is capable of
being used by the taxpayer as part of a system that--
``(i) measures and records electricity usage data on a
time-differentiated basis in at least 24 separate time
segments per day,
``(ii) provides for the exchange of information between
supplier or provider and the customer's electric meter in
support of time-based rates or other forms of demand
response,
``(iii) provides data to such supplier or provider so that
the supplier or provider can provide energy usage information
to customers electronically, and
``(iv) provides net metering.
``(19) Qualified smart electric grid systems.--
``(A) In general.--The term `qualified smart electric grid
system' means any smart grid property used as part of a
system for electric distribution grid communications,
monitoring, and management placed in service by a taxpayer
who is a supplier of electric energy or a provider of
electric energy services.
``(B) Smart grid property.--For the purposes of
subparagraph (A), the term `smart grid property' means
electronics and related equipment that is capable of--
``(i) sensing, collecting, and monitoring data of or from
all portions of a utility's electric distribution grid,
``(ii) providing real-time, two-way communications to
monitor or manage such grid, and
``(iii) providing real time analysis of and event
prediction based upon collected data that can be used to
improve electric distribution system reliability, quality,
and performance.''.
[[Page S6043]]
(c) Continued Application of 150 Percent Declining Balance
Method.--Paragraph (2) of section 168(b) is amended by
striking ``or'' at the end of subparagraph (B), by
redesignating subparagraph (C) as subparagraph (D), and by
inserting after subparagraph (B) the following new
subparagraph:
``(C) any property (other than property described in
paragraph (3)) which is a qualified smart electric meter or
qualified smart electric grid system, or''.
(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 3146. QUALIFIED GREEN BUILDING AND SUSTAINABLE DESIGN
PROJECTS.
(a) In General.--Paragraph (8) of section 142(l) is amended
by striking ``September 30, 2009'' and inserting ``September
30, 2012''.
(b) Treatment of Current Refunding Bonds.--Paragraph (9) of
section 142(l) is amended by striking ``October 1, 2009'' and
inserting ``October 1, 2012''.
(c) Accountability.--The second sentence of section 701(d)
of the American Jobs Creation Act of 2004 is amended by
striking ``issuance,'' and inserting ``issuance of the last
issue with respect to such project,''.
Subtitle D--Revenue Provisions
SEC. 3151. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN
TAX INDIFFERENT PARTIES.
(a) In General.--Subpart B of part II of subchapter E of
chapter 1 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 includible in gross income 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
its 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 its
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) Determinability of Amounts of Compensation.--
``(1) In general.--If the amount of any compensation is not
determinable at the time that such compensation is otherwise
includible in gross income under subsection (a)--
``(A) such amount shall be so includible in gross income
when determinable, and
``(B) the tax imposed under this chapter for the taxable
year in which such compensation is includible in gross income
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.--
``(A) In general.--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.
``(B) Exception for compensation based on gain recognized
on an investment asset.--
``(i) In general.--To the extent provided in regulations
prescribed by the Secretary, if compensation is determined
solely by reference to the amount of gain recognized on the
disposition of an investment asset, such compensation shall
be treated as subject to a substantial risk of forfeiture
until the date of such disposition.
``(ii) Investment asset.--For purposes of clause (i), the
term `investment asset' means any single asset (other than an
investment fund or similar entity)--
``(I) acquired directly by an investment fund or similar
entity,
``(II) with respect to which such entity does not (nor does
any person related to such entity) participate in the active
management of such asset (or if such asset is an interest in
an entity, in the active management of the activities of such
entity), and
``(III) substantially all of any gain on the disposition of
which (other than such deferred compensation) is allocated to
investors in such entity.
``(iii) Coordination with special rule.--Paragraph (3)(B)
shall not apply to any compensation to which clause (i)
applies.
``(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.
``(3) Nonqualified deferred compensation plan.--
``(A) In general.--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.
``(B) Exception.--Compensation shall not be treated as
deferred for purposes of this section if the service provider
receives payment of such compensation not later than 12
months after the end of the taxable year of the service
recipient during which the right to the payment of such
compensation is no longer subject to a substantial risk of
forfeiture.
``(4) Exception for certain compensation with respect to
effectively connected income.--In the case a foreign
corporation with income which is taxable under section 882,
this section shall not apply to compensation which, had such
compensation had been paid in cash on the date that such
compensation ceased to be subject to a substantial risk of
forfeiture, would have been deductible by such foreign
corporation against such income.
``(5) 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), as amended by
section 3011, is amended by striking ``and'' at the end of
subparagraph (V), by striking the period at the end of
subparagraph (W) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(X) section 457A(c)(1)(B) (relating to determinability 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, 2008.
(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, 2009, to
the extent such amount is not includible in gross income in a
taxable year beginning before 2018, such amounts shall be
includible in gross income in the later of--
(A) the last taxable year beginning before 2018, 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) Charitable contributions of existing deferrals
permitted.--
(A) In general.--Subsection (b) of section 170 of the
Internal Revenue Code of 1986 shall not apply to (and
subsections (b) and (d) of such section shall be applied
without regard to) so much of the taxpayer's qualified
contributions made during the taxpayer's last taxable year
beginning before 2018 as does not exceed the taxpayer's
qualified inclusion amount. For purposes of subsection (b) of
section 170 of such Code, the taxpayer's contribution base
for such last taxable year shall be reduced by the amount of
the taxpayer's qualified contributions to which such
subsection does not apply by reason the preceding sentence.
(B) Qualified contributions.--For purposes of this
paragraph, the term ``qualified contributions'' means the
aggregate charitable contributions (as defined in section
170(c) of such Code) paid in cash by the taxpayer to
organizations described in section 170(b)(1)(A) of such Code
(other than any organization described in section 509(a)(3)
of such Code or any fund or account described in section
4966(d)(2) of such Code).
(C) Qualified inclusion amount.--For purposes of this
paragraph, the term ``qualified inclusion amount'' means the
amount includible in the taxpayer's gross income for the last
taxable year beginning before 2018 by reason of paragraph
(2).
(4) Accelerated payments.--No later than 120 days after the
date of the enactment of
[[Page S6044]]
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, 2008, 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.
(5) Certain back-to-back arrangements.--If the taxpayer is
also a service recipient and maintains one or more
nonqualified deferred compensation arrangements for its
service providers under which any amount is attributable to
services performed on or before December 31, 2008, the
guidance issued under paragraph (4) shall permit such
arrangements to be amended to conform the dates of
distribution under such arrangement to the date amounts are
required to be included in the income of such taxpayer under
this subsection.
(6) Accelerated payment not treated as material
modification.--Any amendment to a nonqualified deferred
compensation arrangement made pursuant to paragraph (4) or
(5) shall not be treated as a material modification of the
arrangement for purposes of section 409A of the Internal
Revenue Code of 1986.
______
SA 5046. Mr. CORNYN (for himself, Mrs. Boxer, Mr. Roberts, Mr. Pryor,
Mr. Isakson, and Mr. Salazar) submitted an amendment intended to be
proposed by him to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
SEC. __. REQUIRING MORTGAGE DISCLOSURE.
(a) In General.--Section 102(a)(4)(A) of the Ethics in
Government Act of 1978 (5 U.S.C. App) is amended by inserting
after ``spouse'' the following: ``, except that this
exception shall not apply to a reporting individual described
in section 101(f)(9)''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect 1 month after the date of enactment of this
Act.
______
SA 5047. Mr. ENSIGN submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
On page 82, strike line 4 and all that follows through page
401, line 4, and insert the following:
``(iii) each enterprise received credit towards achieving
each of its goals resulting from a transaction or activity
pursuant to section 1331(b)(2); and
``(iv) each enterprise is achieving the purposes of the
enterprise established by law; and
``(B) the actions that each enterprise could undertake to
promote and expand the purposes of the enterprise;
``(2) aggregate and analyze relevant data on income to
assess the compliance of each enterprise with the housing
goals established under subpart B;
``(3) aggregate and analyze data on income, race, and
gender by census tract and other relevant classifications,
and compare such data with larger demographic, housing, and
economic trends;
``(4) identify the extent to which each enterprise is
involved in mortgage purchases and secondary market
activities involving subprime and nontraditional loans;
``(5) compare the characteristics of subprime and
nontraditional loans both purchased and securitized by each
enterprise to other loans purchased and securitized by each
enterprise; and
``(6) compare the characteristics of high-cost loans
purchased and securitized, where such securities are not held
on portfolio to loans purchased and securitized, where such
securities are either retained on portfolio or repurchased by
the enterprise, including such characteristics as--
``(A) the purchase price of the property that secures the
mortgage;
``(B) the loan-to-value ratio of the mortgage, which shall
reflect any secondary liens on the relevant property;
``(C) the terms of the mortgage;
``(D) the creditworthiness of the borrower; and
``(E) any other relevant data, as determined by the
Director.
``(c) Data Collection and Reporting.--
``(1) In general.--To assist the Director in analyzing the
matters described in subsection (b), the Director shall
conduct, on a monthly basis, a survey of mortgage markets in
accordance with this subsection.
``(2) Data points.--Each monthly survey conducted by the
Director under paragraph (1) shall collect data on--
``(A) the characteristics of individual mortgages that are
eligible for purchase by the enterprises and the
characteristics of individual mortgages that are not eligible
for purchase by the enterprises including, in both cases,
information concerning--
``(i) the price of the house that secures the mortgage;
``(ii) the loan-to-value ratio of the mortgage, which shall
reflect any secondary liens on the relevant property;
``(iii) the terms of the mortgage;
``(iv) the creditworthiness of the borrower or borrowers;
and
``(v) whether the mortgage, in the case of a conforming
mortgage, was purchased by an enterprise;
``(B) the characteristics of individual subprime and
nontraditional mortgages that are eligible for purchase by
the enterprises and the characteristics of borrowers under
such mortgages, including the creditworthiness of such
borrowers and determination whether such borrowers would
qualify for prime lending; and
``(C) such other matters as the Director determines to be
appropriate.
``(3) Public availability.--The Director shall make any
data collected by the Director in connection with the conduct
of a monthly survey available to the public in a timely
manner, provided that the Director may modify the data
released to the public to ensure that the data--
``(A) is not released in an identifiable form; and
``(B) is not otherwise obtainable from other publicly
available data sets.
``(4) Definition.--For purposes of this subsection, the
term `identifiable form' means any representation of
information that permits the identity of a borrower to which
the information relates to be reasonably inferred by either
direct or indirect means.''.
SEC. 1126. PUBLIC USE DATABASE.
Section 1323 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (42 U.S.C. 4543) is
amended--
(1) in subsection (a)--
(A) by striking ``(a) In General.--The Secretary'' and
inserting the following:
``(a) Availability.--
``(1) In general.--The Director''; and
(B) by adding at the end the following new paragraph:
``(2) Census tract level reporting.--Such data shall
include the data elements required to be reported under the
Home Mortgage Disclosure Act of 1975, at the census tract
level.'';
(2) in subsection (b)(2), by inserting before the period at
the end the following: ``or with subsection (a)(2)''; and
(3) by adding at the end the following new subsection:
``(d) Timing.--Data submitted under this section by an
enterprise in connection with a provision referred to in
subsection (a) shall be made publicly available in accordance
with this section not later than September 30 of the year
following the year to which the data relates.''.
SEC. 1127. REPORTING OF MORTGAGE DATA.
Section 1326 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4546) is
amended--
(1) in subsection (a), by striking ``The Director'' and
inserting ``Subject to subsection (d), the Director''; and
(2) by adding at the end the following:
``(d) Mortgage Information.--Subject to privacy
considerations, as described in section 304(j) of the Home
Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(j)), the
Director shall, by regulation or order, provide that certain
information relating to single family mortgage data of the
enterprises shall be disclosed to the public, in order to
make available to the public--
``(1) the same data from the enterprises that is required
of insured depository institutions under the Home Mortgage
Disclosure Act of 1975; and
``(2) information collected by the Director under section
1324(b)(6).''.
SEC. 1128. REVISION OF HOUSING GOALS.
(a) Repeal.--Sections 1331 through 1334 of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C. 4561 through 4564) are hereby repealed.
(b) Housing Goal.--The Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 is amended by
inserting before section 1335 the following:
``SEC. 1331. ESTABLISHMENT OF HOUSING GOALS.
``(a) In General.--The Director shall, by regulation,
establish effective for the first calendar year that begins
after the date of enactment of the Federal Housing Finance
Regulatory Reform Act of 2008, and each year thereafter,
annual housing goals, as described under this subpart, with
respect to the mortgage purchases by the enterprises.
``(b) Special Counting Requirements.--
``(1) In general.--The Director shall determine whether an
enterprise shall receive full, partial, or no credit for a
transaction toward achievement of any of the housing
[[Page S6045]]
goals established pursuant to this section or sections 1332
through 1334.
``(2) Considerations.--In making any determination under
paragraph (1), the Director shall consider whether a
transaction or activity of an enterprise is substantially
equivalent to a mortgage purchase and either (A) creates a
new market, or (B) adds liquidity to an existing market,
provided however that the terms and conditions of such
mortgage purchase is neither determined to be unacceptable,
nor contrary to good lending practices, and otherwise
promotes sustainable homeownership and further, that such
mortgage purchase actually fulfills the purposes of the
enterprise and is in accordance with the chartering Act of
such enterprise.
``(c) Eliminating Interest Rate Disparities.--
``(1) In general.--In establishing and implementing the
housing goals under this subpart, the Director shall require
the enterprises to disclose appropriate information to allow
the Director to assess if there are any disparities in
interest rates charged on mortgages to borrowers who are
minorities, as compared with borrowers of similar
creditworthiness who are not minorities, as evidenced in
reports pursuant to the Home Mortgage Disclosure Act of 1975.
``(2) Report to congress on disparities.--Upon a finding by
the Director that a pattern of disparities in interest rates
exists pursuant to the information provided by an enterprise
under paragraph (1), the Director shall--
``(A) forward to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report detailing
the disparities; and
``(B) forward the report prepared under subparagraph (A) to
any other appropriate regulatory or enforcement agency.
``(3) Identity of individuals not disclosed.--In carrying
out this subsection, the Director shall ensure that no
personally identifiable financial information that would
enable an individual borrower to be reasonably identified
shall be made public.
``(d) Timing.--The Director shall establish an annual
deadline for the establishment of housing goals described in
subsection (a), taking into consideration the need for the
enterprises to reasonably and sufficiently plan their
operations and activities in advance, including operations
and activities necessary to meet such goals.
``SEC. 1331A. DISCRETIONARY ADJUSTMENT OF HOUSING GOALS.
``(a) Authority.--
``(1) Review.--The Director shall review the
appropriateness of each goal established pursuant to this
subpart at least once during each year to assure that given
current market conditions that each such goal is feasible.
``(2) Petition to reduce.--An enterprise may petition the
Director in writing at any time during a year to reduce the
level of any goal for such year established pursuant to this
subpart.
``(b) Standard for Reduction.--The Director may reduce the
level for a goal pursuant to such a petition only if--
``(1) market and economic conditions or the financial
condition of the enterprise require such action; or
``(2) efforts to meet the goal would result in the
constraint of liquidity, over-investment in certain market
segments, or other consequences contrary to the intent of
this subpart, section 301(3) of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1716(3)), or section
301(b)(3) of the Federal Home Loan Mortgage Corporation Act
(12 U.S.C. 1451 note), as applicable.
``(c) Determination.--
``(1) 30-day period.--If an enterprise submits a petition
for reduction to the Director under subsection (a)(2), the
Director shall make a determination regarding any proposed
reduction within 30 days of receipt of the petition.
``(2) Extension.--The Director may extend the period
described in paragraph (1) for a single additional 15-day
period, but only if the Director requests additional
information from the enterprise.
``SEC. 1332. SINGLE-FAMILY HOUSING GOALS.
``(a) Establishment of Goals.--
``(1) In general.--The Director shall establish annual
goals for the purchase by each enterprise of conventional,
conforming, single-family, owner-occupied, purchase money
mortgages financing housing for each of the following:
``(A) Low-income families.
``(B) Families that reside in low-income areas.
``(C) Very low-income families.
``(2) Goals as percentage of total purchase money mortgage
purchases.--The goals established under paragraph (1) shall
be established as a percentage of the total number of single-
family dwelling units financed by single-family purchase
money mortgage purchases of the enterprise.
``(b) Determination of Compliance.--
``(1) In general.--The Director shall determine, for each
year that the housing goals under this section are in effect
pursuant to section 1331(a), whether each enterprise has
complied with the single-family housing goals established
under this section for such year.
``(2) Compliance requirements.--An enterprise shall be
considered to be in compliance with a goal described under
subsection (a) for a year, only if, for each of the types of
families described in subsection (a), the percentage of the
number of conventional, conforming, single-family, owner-
occupied, purchase money mortgages purchased by the
enterprise in such year that serve such families, meets or
exceeds the target established under subsection (c) for the
year for such type of family.
``(c) Annual Targets.--
``(1) In general.--The Director shall establish annual
targets for each goal described in subsection (a).
``(2) Considerations.--In establishing annual targets under
paragraph (1), the Director shall consider--
``(A) national housing needs;
``(B) economic, housing, and demographic conditions;
``(C) the performance and effort of the enterprises toward
achieving the housing goals under this section in previous
years;
``(D) the ability of the enterprise to lead the industry in
making mortgage credit available;
``(E) recent information submitted in compliance with the
Home Mortgage Disclosure Act of 1975 and such other reliable
mortgage data as may be available;
``(F) the size of the purchase money conventional mortgage
market serving each of the types of families described in
subsection (a), relative to the size of the overall purchase
money mortgage market; and
``(G) the need to maintain the sound financial condition of
the enterprises.
``(3) High-cost loans and inappropriate lending
practices.--In establishing annual targets under paragraph
(1), the Director shall not consider segments of the market
determined to be unacceptable or contrary to good lending
practices pursuant to section 1331(b)(2).
``(d) Notice of Determination and Enterprise Comment.--
``(1) Notice.--Within 30 days of making a determination
under subsection (b) regarding compliance of an enterprise
for a year with the housing goals established under this
section and before any public disclosure thereof, the
Director shall provide notice of the determination to the
enterprise, which shall include an analysis and comparison,
by the Director, of the performance of the enterprise for the
year and the targets for the year under subsection (c).
``(2) Comment period.--The Director shall provide each
enterprise and the public an opportunity to comment on the
determination during the 30-day period beginning upon receipt
by the enterprise of the notice.
``(e) Use of Borrower Income.--In monitoring the
performance of each enterprise pursuant to the housing goals
under this section and evaluating such performance (for
purposes of section 1336), the Director shall consider a
mortgagor's income to be the income of the mortgagor at the
time of origination of the mortgage.
``(f) Consideration of Properties With Rental Units.--
Mortgages financing 1-to-4 unit owner-occupied properties
shall count toward the achievement of the single-family
housing goal under this section, if such properties otherwise
meet the requirements under this section notwithstanding the
use of 1 or more units for rental purposes.
``SEC. 1333. SINGLE-FAMILY HOUSING REFINANCE GOALS.
``(a) Prepayment of Existing Loans.--
``(1) In general.--The Director shall establish annual
goals for the purchase by each enterprise of mortgages on
conventional, conforming, single-family, owner-occupied
housing given to pay off or prepay an existing loan served by
the same property for each of the following:
``(A) Low-income families.
``(B) Families that reside in low-income areas.
``(C) Very low-income families.
``(2) Goals as percentage of total refinancing mortgage
purchases.--The goals described under paragraph (1) shall be
established as a percentage of the total number of single-
family dwelling units refinanced by mortgage purchases of
each enterprise.
``(b) Determination of Compliance.--
``(1) In general.--The Director shall determine, for each
year that the housing goals under this section are in effect
pursuant to section 1331(a), whether each enterprise has
complied with the single-family housing refinance goals
established under this section for such year.
``(2) Compliance.--An enterprise shall be considered to be
in compliance with the goals of this section for a year, only
if, for each of the types of families described in subsection
(a), the percentage of the number of conventional,
conforming, single-family, owner-occupied refinancing
mortgages purchased by each enterprise in such year that
serve such families, meets or exceeds the target for the year
for such type of family that is established under subsection
(c).
``(c) Annual Targets.--
``(1) In general.--The Director shall establish annual
targets for each goal described in subsection (a).
``(2) Considerations.--In establishing annual targets under
paragraph (1), the Director shall consider--
``(A) national housing needs;
``(B) economic, housing, and demographic conditions;
``(C) the performance and effort of the enterprises toward
achieving the housing goals under this section in previous
years;
``(D) the ability of the enterprise to lead the industry in
making mortgage credit available;
[[Page S6046]]
``(E) recent information submitted in compliance with the
Home Mortgage Disclosure Act of 1975 and such other reliable
mortgage data as may be available;
``(F) the size of the purchase money conventional mortgage
market serving each of the types of families described in
subsection (a), relative to the size of the overall purchase
money mortgage market; and
``(G) the need to maintain the sound financial condition of
the enterprises.
``(d) Notice of Determination and Enterprise Comment.--
``(1) Notice.--Within 30 days of making a determination
under subsection (b) regarding compliance of an enterprise
for a year with the housing goals established under this
section and before any public disclosure thereof, the
Director shall provide notice of the determination to the
enterprise, which shall include an analysis and comparison,
by the Director, of the performance of the enterprise for the
year and the targets for the year under subsection (c).
``(2) Comment period.--The Director shall provide each
enterprise and the public an opportunity to comment on the
determination during the 30-day period beginning upon receipt
by the enterprise of the notice.
``(e) Use of Borrower Income.--In monitoring the
performance of each enterprise pursuant to the housing goals
under this section and evaluating such performance (for
purposes of section 1336), the Director shall consider a
mortgagor's income to be the income of the mortgagor at the
time of origination of the mortgage.
``SEC. 1334. MULTIFAMILY SPECIAL AFFORDABLE HOUSING GOAL.
``(a) Establishment.--
``(1) In general.--The Director shall establish, by
regulation, by unit, dollar volume, or percentage of
multifamily activity, as determined by the Director, an
annual goal for the purchase by each enterprise of--
``(A) mortgages that finance dwelling units affordable to
very low-income families; and
``(B) mortgages that finance dwelling units assisted by the
low-income housing tax credit under section 42 of the
Internal Revenue Code of 1986.
``(2) Additional requirements for smaller projects.--The
Director shall establish, within the housing goal established
under this section, additional requirements for the purchase
by each enterprise of mortgages described in paragraph (1)
for multifamily housing projects of a smaller or limited
size, which may be based on the number of dwelling units in
the project or the amount of the mortgage, or both, and shall
include multifamily housing projects of 5 to 50 units (as
adjusted by the Director), or with mortgages of up to
$5,000,000 (as adjusted by the Director).
``(3) Factors.--The Director shall establish the goal and
additional requirements under this section taking into
consideration--
``(A) national multifamily mortgage credit needs;
``(B) the performance and effort of the enterprise in
making mortgage credit available for multifamily housing in
previous years;
``(C) the size of the multifamily mortgage market,
including the size of the small multifamily mortgage market;
``(D) the most recent information available for the
Residential Survey published by the Census Bureau, and such
other reliable data as may be available regarding multifamily
mortgages;
``(E) the ability of the enterprise to lead the industry in
expanding mortgage credit availability at favorable terms,
especially for underserved markets, such as for--
``(i) small multifamily projects;
``(ii) multifamily properties in need of preservation and
rehabilitation; and
``(iii) multifamily properties located in rural areas; and
``(F) the need to maintain the sound financial condition of
the enterprise.
``(b) Units Financed by Housing Finance Agency Bonds.--The
Director may give credit toward the achievement of the
multifamily special affordable housing goal under this
section (for purposes of section 1336) to dwelling units in
multifamily housing projects that otherwise qualify under
such goal and that are financed by tax-exempt or taxable
bonds issued by a State or local housing finance agency, but
only if such bonds--
``(1) are secured by a guarantee of the enterprise; or
``(2) are not investment grade and are purchased by the
enterprise.
``(c) Use of Tenant Rent Level.--
``(1) In general.--The Director shall monitor the
performance of each enterprise in meeting the goal
established under this section and shall evaluate such
performance (for purposes of section 1336) based on whether
the rent levels are affordable to low-income and very low-
income families.
``(2) Rent level.--A rent level shall be considered to be
affordable for purposes of this subsection for an income
category referred to in this subsection if it does not exceed
30 percent of the maximum income level of such income
category, with appropriate adjustments for unit size as
measured by the number of bedrooms.
``(d) Determination of Compliance.--
``(1) In general.--The Director shall, for each year that
the housing goal under this section is in effect pursuant to
section 1331(a), determine whether each enterprise has
complied with such goal and the additional requirements under
subsection (a)(2).
``(2) Compliance.--An enterprise shall be considered to be
in compliance with the goal described under subsection (a)
for a year only if the multifamily mortgage purchases of the
enterprise meet or exceed the goal for the year established
under subsection (a).
``(e) Consideration of Units in Single-Family Rental
Housing.--In establishing the goal under this section, the
Director may take into consideration the number of housing
units financed by any mortgage purchased by an enterprise on
single-family rental housing that is not owner-occupied.
``(f) Removing Credit.--The Director shall subtract from
the units or mortgages counted toward the goal established
under this section in a current year any units or mortgages
credited toward such goal in a prior year if an enterprise
requires a lender to repurchase, or reimburse for losses, or
indemnify the enterprise against potential losses on such
units or mortgages.
``(g) Notice of Determination and Enterprise Comment.--
``(1) Notice.--Within 30 days of making a determination
under subsection (d) regarding compliance of an enterprise
for a year with the housing goal established under this
section and before any public disclosure thereof, the
Director shall provide notice of the determination to the
enterprise, which shall include an analysis and comparison,
by the Director, of the performance of the enterprise for the
year and the goal for the year under subsection (a).
``(2) Comment period.--The Director shall provide each
enterprise and the public an opportunity to comment on the
determination during the 30-day period beginning upon receipt
by the enterprise of the notice.''.
(c) Conforming Amendments.--The Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 is amended--
(1) in section 1335(a) (12 U.S.C. 4565(a)), in the matter
preceding paragraph (1), by striking ``low- and moderate-
income housing goal'' and all that follows through ``section
1334'' and inserting ``housing goals established under this
subpart''; and
(2) in section 1336(a)(1) (12 U.S.C. 4566(a)(1)), by
striking ``sections 1332, 1333, and 1334,'' and inserting
``this subpart''.
(d) Definitions.--Section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4502) is amended--
(1) by striking paragraph (24), as so designated by section
1002 of this Act, and inserting the following:
``(24) Very low-income.--
``(A) In general.--The term `very low-income' means--
``(i) in the case of owner-occupied units, families having
incomes not greater than 50 percent of the area median
income; and
``(ii) in the case of rental units, families having incomes
not greater than 50 percent of the area median income, with
adjustments for smaller and larger families, as determined by
the Director.
``(B) Rule of construction.--For purposes of section 1338
and 1339, the term `very low-income' means--
``(i) in the case of owner-occupied units, income in excess
of 30 percent but not greater than 50 percent of the area
median income; and
``(ii) in the case of rental units, income in excess of 30
percent but not greater than 50 percent of the area median
income, with adjustments for smaller and larger families, as
determined by the Director.''; and
(2) by adding at the end the following:
``(26) Conforming mortgage.--The term `conforming mortgage'
means, with respect to an enterprise, a conventional mortgage
having an original principal obligation that does not exceed
the applicable dollar limitation, in effect at the time of
such origination, under--
``(A) section 302(b)(2) of the Federal National Mortgage
Association Charter Act; or
``(B) section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act.
``(27) Extremely low-income.--The term `extremely low-
income' means--
``(A) in the case of owner-occupied units, income not in
excess of 30 percent of the area median income; and
``(B) in the case of rental units, income not in excess of
30 percent of the area median income, with adjustments for
smaller and larger families, as determined by the Director.
``(28) Low-income area.--The term `low-income area' means a
census tract or block numbering area in which the median
income does not exceed 80 percent of the median income for
the area in which such census tract or block numbering area
is located, and, for the purposes of section 1332(a)(2),
shall include families having incomes not greater than 100
percent of the area median income who reside in minority
census tracts.
``(29) Minority census tract.--The term `minority census
tract' means a census tract that has a minority population of
at least 30 percent and a median family income of less than
100 percent of the area family median income.
``(30) Shortage of standard rental units both affordable
and available to extremely low-income renter households.--
``(A) In general.--The term `shortage of standard rental
units both affordable and available to extremely low-income
renter households' means the gap between--
``(i) the number of units with complete plumbing and
kitchen facilities with a rent that is 30 percent or less of
30 percent of the adjusted area median income as determined
by the Director that are occupied by extremely low-income
renter households or are vacant for rent; and
[[Page S6047]]
``(ii) the number of extremely low-income renter
households.
``(B) Rule of construction.--If the number of units
described in subparagraph (A)(i) exceeds the number of
extremely low-income households as described in subparagraph
(A)(ii), there is no shortage.
``(31) Shortage of standard rental units both affordable
and available to very low-income renter households.--
``(A) In general.--The term `shortage of standard rental
units both affordable and available to very low-income renter
households' means the gap between--
``(i) the number of units with complete plumbing and
kitchen facilities with a rent that is 30 percent or less of
50 percent of the adjusted area median income as determined
by the Director that are occupied by either extremely low- or
very low-income renter households or are vacant for rent; and
``(ii) the number of extremely low- and very low-income
renter households.
``(B) Rule of construction.--If the number of units
described in subparagraph (A)(i) exceeds the number of
extremely low- and very low-income households as described in
subparagraph (A)(ii), there is no shortage.''.
SEC. 1129. DUTY TO SERVE UNDERSERVED MARKETS.
(a) Establishment and Evaluation of Performance.--Section
1335 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (12 U.S.C. 4565) is amended--
(1) in the section heading, by inserting ``duty to serve
underserved markets and'' before ``other'';
(2) by striking subsection (b);
(3) in subsection (a)--
(A) in the matter preceding paragraph (1), by inserting
``and to carry out the duty under subsection (a) of this
section'' before ``, each enterprise shall'';
(B) in paragraph (3), by inserting ``and'' after the
semicolon at the end;
(C) in paragraph (4), by striking ``; and'' and inserting a
period;
(D) by striking paragraph (5); and
(E) by redesignating such subsection as subsection (b);
(4) by inserting before subsection (b) (as so redesignated
by paragraph (3)(E) of this subsection) the following new
subsection:
``(a) Duty to Serve Underserved Markets.--
``(1) Duty.--In accordance with the purpose of the
enterprises under section 301(3) of the Federal National
Mortgage Association Charter Act (12 U.S.C. 1716) and section
301(b)(3) of the Federal Home Loan Mortgage Corporation Act
(12 U.S.C. 1451 note) to undertake activities relating to
mortgages on housing for very low-, low-, and moderate-income
families involving a reasonable economic return that may be
less than the return earned on other activities, each
enterprise shall have the duty to increase the liquidity of
mortgage investments and improve the distribution of
investment capital available for mortgage financing for
underserved markets by purchasing or securitizing mortgage
investments.
``(2) Underserved markets.--To meet its duty under
paragraph (1), each enterprise shall comply with the
following requirements with respect to the following
underserved markets:
``(A) Manufactured housing.--The enterprise shall lead the
industry in developing loan products and flexible
underwriting guidelines to facilitate a secondary market for
mortgages on manufactured homes for very low-, low-, and
moderate-income families.
``(B) Affordable housing preservation.--The enterprise
shall lead the industry in developing loan products and
flexible underwriting guidelines to facilitate a secondary
market to preserve housing affordable to very low-, low-, and
moderate-income families, including housing projects
subsidized under--
``(i) the project-based and tenant-based rental assistance
programs under section 8 of the United States Housing Act of
1937;
``(ii) the program under section 236 of the National
Housing Act;
``(iii) the below-market interest rate mortgage program
under section 221(d)(4) of the National Housing Act;
``(iv) the supportive housing for the elderly program under
section 202 of the Housing Act of 1959;
``(v) the supportive housing program for persons with
disabilities under section 811 of the Cranston-Gonzalez
National Affordable Housing Act;
``(vi) the programs under title IV of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11361 et seq.), but only
permanent supportive housing projects subsidized under such
programs; and
``(vii) the rural rental housing program under section 515
of the Housing Act of 1949.
``(C) Rural and other underserved markets.--The enterprise
shall lead the industry in developing loan products and
flexible underwriting guidelines to facilitate a secondary
market for mortgages on housing for very low-, low-, and
moderate-income families in rural areas, and for mortgages
for housing for any other underserved market for very low-,
low-, and moderate-income families that the Director
identifies as lacking adequate credit through conventional
lending sources. Such underserved markets may be identified
by borrower type, market segment, or geographic area.''; and
(5) by adding at the end the following new subsection:
``(c) Evaluation and Reporting of Compliance.--
``(1) In general.--Not later than 6 months after the
effective date of the Federal Housing Finance Regulatory
Reform Act of 2008, the Director shall establish a manner for
evaluating whether, and the extent to which, the enterprises
have complied with the duty under subsection (a) to serve
underserved markets and for rating the extent of such
compliance. Using such method, the Director shall, for each
year, evaluate such compliance and rate the performance of
each enterprise as to extent of compliance. The Director
shall include such evaluation and rating for each enterprise
for a year in the report for that year submitted pursuant to
section 1319B(a).
``(2) Separate evaluations.--In determining whether an
enterprise has complied with the duty referred to in
paragraph (1), the Director shall separately evaluate whether
the enterprise has complied with such duty with respect to
each of the underserved markets identified in subsection (a),
taking into consideration--
``(A) the development of loan products and more flexible
underwriting guidelines;
``(B) the extent of outreach to qualified loan sellers in
each of such underserved markets; and
``(C) the volume of loans purchased in each of such
underserved markets.
``(3) Manufactured housing market.--In determining whether
an enterprise has complied with the duty under subparagraph
(A) of subsection (a)(2), the Director may consider loans
secured by both real and personal property.''.
(b) Enforcement.--Subsection (a) of section 1336 of the
Housing and Community Development Act of 1992 (12 U.S.C.
4566(a)) is amended--
(1) in paragraph (1), by inserting ``and with the duty
under section 1335(a) of each enterprise with respect to
underserved markets,'' before ``as provided in this
section''; and
(2) by adding at the end of such subsection, as amended by
the preceding provisions of this subtitle, the following new
paragraph:
``(4) Enforcement of duty to provide mortgage credit to
underserved markets.--The duty under section 1335(a) of each
enterprise to serve underserved markets (as determined in
accordance with section 1335(c)) shall be enforceable under
this section to the same extent and under the same provisions
that the housing goals established under this subpart are
enforceable. Such duty shall not be enforceable under any
other provision of this title (including subpart C of this
part) other than this section or under any provision of the
Federal National Mortgage Association Charter Act or the
Federal Home Loan Mortgage Corporation Act.''.
SEC. 1130. MONITORING AND ENFORCING COMPLIANCE WITH HOUSING
GOALS.
(a) In General.--Section 1336 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4566) is amended by striking subsections (b) and (c)
and inserting the following:
``(b) Notice and Preliminary Determination of Failure To
Meet Goals.--
``(1) Notice.--If the Director preliminarily determines
that an enterprise has failed, or that there is a substantial
probability that an enterprise will fail, to meet any housing
goal under this subpart, the Director shall provide written
notice to the enterprise of such a preliminary determination,
the reasons for such determination, and the information on
which the Director based the determination.
``(2) Response period.--
``(A) In general.--During the 30-day period beginning on
the date on which an enterprise is provided notice under
paragraph (1), the enterprise may submit to the Director any
written information that the enterprise considers appropriate
for consideration by the Director in finally determining
whether such failure has occurred or whether the achievement
of such goal was or is feasible.
``(B) Extended period.--The Director may extend the period
under subparagraph (A) for good cause for not more than 30
additional days.
``(C) Shortened period.--The Director may shorten the
period under subparagraph (A) for good cause.
``(D) Failure to respond.--The failure of an enterprise to
provide information during the 30-day period under this
paragraph (as extended or shortened) shall waive any right of
the enterprise to comment on the proposed determination or
action of the Director.
``(3) Consideration of information and final
determination.--
``(A) In general.--After the expiration of the response
period under paragraph (2), or upon receipt of information
provided during such period by the enterprise, whichever
occurs earlier, the Director shall issue a final
determination on--
``(i) whether the enterprise has failed, or there is a
substantial probability that the enterprise will fail, to
meet the housing goal; and
``(ii) whether (taking into consideration market and
economic conditions and the financial condition of the
enterprise) the achievement of the housing goal was or is
feasible.
``(B) Considerations.--In making a final determination
under subparagraph (A), the Director shall take into
consideration any relevant information submitted by the
enterprise during the response period.
``(C) Notice.--The Director shall provide written notice,
including a response to any
[[Page S6048]]
information submitted during the response period, to the
enterprise, the Committee on Banking, Housing, and Urban
Affairs of the Senate, and the Committee on Financial
Services of the House of Representatives, of--
``(i) each final determination under this paragraph that an
enterprise has failed, or that there is a substantial
probability that the enterprise will fail, to meet a housing
goal;
``(ii) each final determination that the achievement of a
housing goal was or is feasible; and
``(iii) the reasons for each such final determination.
``(c) Cease and Desist, Civil Money Penalties, and Remedies
Including Housing Plans.--
``(1) Requirement.--If the Director finds, pursuant to
subsection (b), that there is a substantial probability that
an enterprise will fail, or has actually failed, to meet any
housing goal under this subpart, and that the achievement of
the housing goal was or is feasible, the Director may require
that the enterprise submit a housing plan under this
subsection. If the Director makes such a finding and the
enterprise refuses to submit such a plan, submits an
unacceptable plan, fails to comply with the plan, or the
Director finds that the enterprise has failed to meet any
housing goal under this subpart, in addition to requiring an
enterprise to submit a housing plan, the Director may issue a
cease and desist order in accordance with section 1341,
impose civil money penalties in accordance with section 1345,
or order other remedies as set forth in paragraph (7).
``(2) Housing plan.--If the Director requires a housing
plan under this subsection, such a plan shall be--
``(A) a feasible plan describing the specific actions the
enterprise will take--
``(i) to achieve the goal for the next calendar year; and
``(ii) if the Director determines that there is a
substantial probability that the enterprise will fail to meet
a goal in the current year, to make such improvements and
changes in its operations as are reasonable in the remainder
of such year; and
``(B) sufficiently specific to enable the Director to
monitor compliance periodically.
``(3) Deadline for submission.--The Director shall
establish a deadline for an enterprise to comply with any
remedial action or submit a housing plan to the Director,
which may not be more than 45 days after the enterprise is
provided notice. The Director may extend the deadline to the
extent that the Director determines necessary. Any extension
of the deadline shall be in writing and for a time certain.
``(4) Approval.--The Director shall review each submission
by an enterprise, including a housing plan submitted under
this subsection, and, not later than 30 days after
submission, approve or disapprove the plan or other action.
The Director may extend the period for approval or
disapproval for a single additional 30-day period if the
Director determines it necessary. The Director shall approve
any plan that the Director determines is likely to succeed,
and conforms with the Federal National Mortgage Association
Charter Act or the Federal Home Loan Mortgage Corporation Act
(as applicable), this title, and any other applicable
provision of law.
``(5) Notice of approval and disapproval.--The Director
shall provide written notice to any enterprise submitting a
housing plan of the approval or disapproval of the plan
(which shall include the reasons for any disapproval of the
plan) and of any extension of the period for approval or
disapproval.
``(6) Resubmission.--If the initial housing plan submitted
by an enterprise under this section is disapproved, the
enterprise shall submit an amended plan acceptable to the
Director not later than 15 days after such disapproval, or
such longer period that the Director determines is in the
public interest.
``(7) Additional remedies for failure to meet goals.--In
addition to ordering a housing plan under this section,
issuing cease and desist orders under section 1341, and
ordering civil money penalties under section 1345, the
Director may--
``(A) seek other actions when an enterprise fails to meet a
goal; and
``(B) exercise appropriate enforcement authority available
to the Director under this Act.''.
(b) Conforming Amendment.--The heading for subpart C of
part 2 of subtitle A of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 is amended to read
as follows:
``Subpart C--Enforcement''.
(c) Cease and Desist Proceedings .--
(1) Repeal.--Section 1341 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4581) is hereby repealed.
(2) Cease and desist proceedings.--The Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 is
amended by inserting before section 1342 the following:
``SEC. 1341. CEASE AND DESIST PROCEEDINGS.
``(a) Grounds for Issuance.--The Director may issue and
serve a notice of charges under this section upon an
enterprise if the Director determines that--
``(1) the enterprise has failed to meet any housing goal
established under subpart B, following a written notice and
determination of such failure in accordance with section
1336;
``(2) the enterprise has failed to submit a report under
section 1327, following a notice of such failure, an
opportunity for comment by the enterprise, and a final
determination by the Director;
``(3) the enterprise has failed to submit the information
required under subsection (m) or (n) of section 309 of the
Federal National Mortgage Association Charter Act, or
subsection (e) or (f) of section 307 of the Federal Home Loan
Mortgage Corporation Act;
``(4) the enterprise has violated any provision of part 2
of this title or any order, rule, or regulation under part 2;
``(5) the enterprise has failed to submit a housing plan or
perform its responsibilities under a remedial order that
substantially complies with section 1336(c) within the
applicable period; or
``(6) the enterprise has failed to comply with a housing
plan under section 1336(c).
``(b) Procedure.--
``(1) Notice of charges.--Each notice of charges issued
under this section shall contain a statement of the facts
constituting the alleged conduct and shall fix a time and
place at which a hearing will be held to determine on the
record whether an order to cease and desist from such conduct
should issue.
``(2) Issuance of order.--If the Director finds on the
record made at a hearing described in paragraph (1) that any
conduct specified in the notice of charges has been
established (or the enterprise consents pursuant to section
1342(a)(4)), the Director may issue and serve upon the
enterprise an order requiring the enterprise to--
``(A) comply with the goals;
``(B) submit a report under section 1327;
``(C) comply with any provision of part 2 of this title or
any order, rule, or regulation under part 2;
``(D) submit a housing plan in compliance with section
1336(c);
``(E) comply with the housing plan in compliance with
section 1336(c); or
``(F) provide the information required under subsection (m)
or (n) of section 309 of the Federal National Mortgage
Association Charter Act, or subsection (e) or (f) of section
307 of the Federal Home Loan Mortgage Corporation Act.
``(c) Effective Date.--An order under this section shall
become effective upon the expiration of the 30-day period
beginning on the date of service of the order upon the
enterprise (except in the case of an order issued upon
consent, which shall become effective at the time specified
therein), and shall remain effective and enforceable as
provided in the order, except to the extent that the order is
stayed, modified, terminated, or set aside by action of the
Director or otherwise, as provided in this subpart.''.
(d) Civil Money Penalties.--
(1) Repeal.--Section 1345 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4585) is hereby repealed.
(2) Civil money penalties.--The Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 is amended by
inserting after section 1344 the following:
``SEC. 1345. CIVIL MONEY PENALTIES.
``(a) Authority.--The Director may impose a civil money
penalty, in accordance with the provisions of this section,
on any enterprise that has failed to--
``(1) meet any housing goal established under subpart B,
following a written notice and determination of such failure
in accordance with section 1336(b);
``(2) submit a report under section 1327, following a
notice of such failure, an opportunity for comment by the
enterprise, and a final determination by the Director;
``(3) submit the information required under subsection (m)
or (n) of section 309 of the Federal National Mortgage
Association Charter Act or subsection (e) or (f) of section
307 of the Federal Home Loan Mortgage Corporation Act;
``(4) comply with any provision of part 2 of this title or
any order, rule, or regulation under part 2;
``(5) submit a housing plan or perform its responsibilities
under a remedial order issued pursuant to section 1336(c)
within the required period; or
``(6) comply with a housing plan for the enterprise under
section 1336(c).
``(b) Amount of Penalty.--The amount of a penalty under
this section, as determined by the Director, may not exceed--
``(1) for any failure described in paragraph (1), (5), or
(6) of subsection (a), $100,000 for each day that the failure
occurs; and
``(2) for any failure described in paragraph (2), (3), or
(4) of subsection (a), $50,000 for each day that the failure
occurs.
``(c) Procedures.--
``(1) Establishment.--The Director shall establish
standards and procedures governing the imposition of civil
money penalties under this section. Such standards and
procedures--
``(A) shall provide for the Director to notify the
enterprise in writing of the determination of the Director to
impose the penalty, which shall be made on the record;
``(B) shall provide for the imposition of a penalty only
after the enterprise has been given an opportunity for a
hearing on the record pursuant to section 1342; and
``(C) may provide for review by the Director of any
determination or order, or interlocutory ruling, arising from
a hearing.
``(2) Factors in determining amount of penalty.--In
determining the amount of a penalty under this section, the
Director shall give consideration to factors including--
[[Page S6049]]
``(A) the gravity of the offense;
``(B) any history of prior offenses;
``(C) ability to pay the penalty;
``(D) injury to the public;
``(E) benefits received;
``(F) deterrence of future violations;
``(G) the length of time that the enterprise should
reasonably take to achieve the goal; and
``(H) such other factors as the Director may determine, by
regulation, to be appropriate.
``(d) Action to Collect Penalty.--If an enterprise fails to
comply with an order by the Director imposing a civil money
penalty under this section, after the order is no longer
subject to review, as provided in sections 1342 and 1343, the
Director may bring an action in the United States District
Court for the District of Columbia to obtain a monetary
judgment against the enterprise, and such other relief as may
be available. The monetary judgment may, in the court's
discretion, include the attorneys' fees and other expenses
incurred by the United States in connection with the action.
In an action under this subsection, the validity and
appropriateness of the order imposing the penalty shall not
be subject to review.
``(e) Settlement by Director.--The Director may compromise,
modify, or remit any civil money penalty which may be, or has
been, imposed under this section.
``(f) Deposit of Penalties.--The Director shall use any
civil money penalties collected under this section to help
fund the Housing Trust Fund established under section
1338.''.
(e) Director Authority.--
(1) Authority to bring a civil action.--Section 1344(a) of
the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (12 U.S.C. 4584) is amended by striking
``The Secretary may request the Attorney General of the
United States to bring a civil action'' and inserting ``The
Director may bring a civil action''.
(2) Subpoena enforcement.--Section 1348(c) of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C. 4588(c)) is amended by inserting ``may bring
an action or'' before ``may request''.
(3) Conforming amendments.--Subpart C of part 2 of subtitle
A of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (12 U.S.C. 4581 et seq.) is amended by
striking ``Secretary'' each place that term appears and
inserting ``Director'' in each of--
(A) section 1342 (12 U.S.C. 4582);
(B) section 1343 (12 U.S.C. 4583);
(C) section 1346 (12 U.S.C. 4586);
(D) section 1347 (12 U.S.C. 4587); and
(E) section 1348 (12 U.S.C. 4588).
SEC. 1131. AFFORDABLE HOUSING PROGRAMS.
(a) Repeal.--Section 1337 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4567) is hereby repealed.
(b) Housing Trust Funds.--The Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (12 U.S.C. 1301 et
seq.) is amended by inserting after section 1336 the
following:
``SEC. 1337. AFFORDABLE HOUSING APPROPRIATIONS.
``(a) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
such sums as are necessary to carry out the provisions of
sections 1338 and 1339.
``(2) Allocation.--Of the amounts authorized to be
appropriated under paragraph (1)--
``(A) 65 percent of such amounts shall be allocated to the
Secretary of Housing and Urban Development to fund the
Housing Trust Fund established under section 1338; and
``(B) 35 percent of such amounts shall be allocated to fund
the Capital Magnet Fund established pursuant to section 1339.
``(b) Required Amount for HOPE Reserve Fund.--Of the
aggregate amount allocated under subsection (a), 25 percent
shall be deposited into a fund established in the Treasury of
the United States by the Secretary of the Treasury for such
purpose.
``(c) Limitation.--No funds under this title may be used in
conjunction with property taken by eminent domain, unless
eminent domain is employed only for a public use, except
that, for purposes of this section, public use shall not be
construed to include economic development that primarily
benefits any private entity.
``SEC. 1338. HOUSING TRUST FUND.
``(a) Establishment and Purpose.--The Secretary of Housing
and Urban Development (in this section referred to as the
`Secretary') shall establish and manage a Housing Trust Fund,
which shall be funded with amounts appropriated under section
1337 and any amounts as are or may be transferred or credited
to such Housing Trust Fund under any other provisions of law.
The purpose of the Housing Trust Fund under this section is
to provide grants to States for use--
``(1) to increase and preserve the supply of rental housing
for extremely low- and very low-income families, including
homeless families; and
``(2) to increase homeownership for extremely low- and very
low-income families.
``(b) Allocations for HOPE Bond Payments.--
``(1) In general.--Notwithstanding subsection (c), to help
address the mortgage crisis, of the amounts appropriated
under section 1337(a) in excess of amounts described in
section 1337(b)--
``(A) 100 percent of such excess shall be used to reimburse
the Treasury for payments made pursuant to section
257(w)(1)(C) of the National Housing Act in calendar year
2009;
``(B) 50 percent of such excess shall be used to reimburse
the Treasury for such payments in calendar year 2010; and
``(C) 25 percent of such excess shall be used to reimburse
the Treasury for such payments in calendar year 2011.
``(2) Excess funds.--At the termination of the HOPE for
Homeowners Program established under section 257 of the
National Housing Act, if amounts used to reimburse the
Treasury under paragraph (1) exceed the total net cost to the
Government of the HOPE for Homeowners Program, such amounts
shall be used for their original purpose, as described in
subparagraphs (A) and (B) of section 1337(a)(2).
``(3) Treasury fund.--The amounts referred to in
subparagraphs (A) through (C) of paragraph (1) shall be
deposited into a fund established in the Treasury of the
United States by the Secretary of the Treasury for such
purpose.
``(c) Allocation for Housing Trust Fund in Fiscal Year 2010
and Subsequent Years.--
``(1) In general.--Except as provided in subsection (b),
the Secretary shall distribute the amounts appropriated for
the Housing Trust Fund under this section to provide
affordable housing as described in this subsection.
``(2) Permissible designees.--A State receiving grant
amounts under this subsection may designate a State housing
finance agency, housing and community development entity,
tribally designated housing entity (as such term is defined
in section 4 of the Native American Housing Assistance and
Self-Determination Act of 1997 (25 U.S.C. 4103)), or any
other qualified instrumentality of the State to receive such
grant amounts.
``(3) Distribution to states by needs-based formula.--
``(A) In general.--The Secretary shall, by regulation,
establish a formula within 12 months of the date of enactment
of the Federal Housing Finance Regulatory Reform Act of 2008,
to distribute amounts made available under this subsection to
each State to provide affordable housing to extremely low-
and very low-income households.
``(B) Basis for formula.--The formula required under
subparagraph (A) shall include the following:
``(i) The ratio of the shortage of standard rental units
both affordable and available to extremely low-income renter
households in the State to the aggregate shortage of standard
rental units both affordable and available to extremely low-
income renter households in all the States.
``(ii) The ratio of the shortage of standard rental units
both affordable and available to very low-income renter
households in the State to the aggregate shortage of standard
rental units both affordable and available to very low-income
renter households in all the States.
``(iii) The ratio of extremely low-income renter households
in the State living with either (I) incomplete kitchen or
plumbing facilities, (II) more than 1 person per room, or
(III) paying more than 50 percent of income for housing
costs, to the aggregate number of extremely low-income renter
households living with either (IV) incomplete kitchen or
plumbing facilities, (V) more than 1 person per room, or (VI)
paying more than 50 percent of income for housing costs in
all the States.
``(iv) The ratio of very low-income renter households in
the State paying more than 50 percent of income on rent
relative to the aggregate number of very low-income renter
households paying more than 50 percent of income on rent in
all the States.
``(v) The resulting sum calculated from the factors
described in clauses (i) through (iv) shall be multiplied by
the relative cost of construction in the State. For purposes
of this subclause, the term `cost of construction'--
``(I) means the cost of construction or building
rehabilitation in the State relative to the national cost of
construction or building rehabilitation; and
``(II) shall be calculated such that values higher than 1.0
indicate that the State's construction costs are higher than
the national average, a value of 1.0 indicates that the
State's construction costs are exactly the same as the
national average, and values lower than 1.0 indicate that the
State's cost of construction are lower than the national
average.
``(C) Priority.--The formula required under subparagraph
(A) shall give priority emphasis and consideration to the
factor described in subparagraph (B)(i).
``(4) Allocation of grant amounts.--
``(A) Notice.--Not later than 60 days after the date that
the Secretary determines the formula amounts described in
paragraph (3), the Secretary shall caused to be published in
the Federal Register a notice that such amounts shall be so
available.
``(B) Grant amount.--In each fiscal year other than fiscal
year 2009, the Secretary shall make a grant to each State in
an amount that is equal to the formula amount determined
under paragraph (3) for that State.
``(C) Minimum state allocations.--If the formula amount
determined under paragraph (3) for a fiscal year would
allocate less than $3,000,000 to any State, the allocation
for such State shall be $3,000,000, and the increase shall be
deducted pro rata from the allocations made to all other
States.
[[Page S6050]]
``(5) Allocation plans required.--
``(A) In general.--For each year that a State or State
designated entity receives a grant under this subsection, the
State or State designated entity shall establish an
allocation plan. Such plan shall--
``(i) set forth a plan for the distribution of grant
amounts received by the State or State designated entity for
such year;
``(ii) be based on priority housing needs, as determined by
the State or State designated entity in accordance with the
regulations established under subsection (g)(2)(C);
``(iii) comply with paragraph (6); and
``(iv) include performance goals that comply with the
requirements established by the Secretary pursuant to
subsection (g)(2).
``(B) Establishment.--In establishing an allocation plan
under this paragraph, a State or State designated entity
shall--
``(i) notify the public of the establishment of the plan;
``(ii) provide an opportunity for public comments regarding
the plan;
``(iii) consider any public comments received regarding the
plan; and
``(iv) make the completed plan available to the public.
``(C) Contents.--An allocation plan of a State or State
designated entity under this paragraph shall set forth the
requirements for eligible recipients under paragraph (8) to
apply for such grant amounts, including a requirement that
each such application include--
``(i) a description of the eligible activities to be
conducted using such assistance; and
``(ii) a certification by the eligible recipient applying
for such assistance that any housing units assisted with such
assistance will comply with the requirements under this
section.
``(6) Selection of activities funded using housing trust
fund grant amounts.--Grant amounts received by a State or
State designated entity under this subsection may be used, or
committed for use, only for activities that--
``(A) are eligible under paragraph (7) for such use;
``(B) comply with the applicable allocation plan of the
State or State designated entity under paragraph (5); and
``(C) are selected for funding by the State or State
designated entity in accordance with the process and criteria
for such selection established pursuant to subsection
(g)(2)(C).
``(7) Eligible activities.--Grant amounts allocated to a
State or State designated entity under this subsection shall
be eligible for use, or for commitment for use, only for
assistance for--
``(A) the production, preservation, and rehabilitation of
rental housing, including housing under the programs
identified in section 1335(a)(2)(B) and for operating costs,
except that not less than 75 percent of such grant amounts
shall be used for the benefit only of extremely low-income
families and not more than 25 percent for the benefit only of
very low-income families; and
``(B) the production, preservation, and rehabilitation of
housing for homeownership, including such forms as down
payment assistance, closing cost assistance, and assistance
for interest rate buy-downs, that--
``(i) is available for purchase only for use as a principal
residence by families that qualify both as--
``(I) extremely low- and very low-income families at the
times described in subparagraphs (A) through (C) of section
215(b)(2) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745(b)(2)); and
``(II) first-time homebuyers, as such term is defined in
section 104 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12704), except that any reference in
such section to assistance under title II of such Act shall
for purposes of this subsection be considered to refer to
assistance from affordable housing fund grant amounts;
``(ii) has an initial purchase price that meets the
requirements of section 215(b)(1) of the Cranston-Gonzalez
National Affordable Housing Act;
``(iii) is subject to the same resale restrictions
established under section 215(b)(3) of the Cranston-Gonzalez
National Affordable Housing Act and applicable to the
participating jurisdiction that is the State in which such
housing is located; and
``(iv) is made available for purchase only by, or in the
case of assistance under this subsection, is made available
only to homebuyers who have, before purchase completed a
program of independent financial education and counseling
from an eligible organization that meets the requirements of
section 132 of the Federal Housing Finance Regulatory Reform
Act of 2008.
``(8) Eligible recipients.--Grant amounts allocated to a
State or State designated entity under this subsection may be
provided only to a recipient that is an organization, agency,
or other entity (including a for-profit entity or a nonprofit
entity) that--
``(A) has demonstrated experience and capacity to conduct
an eligible activity under paragraph (7), as evidenced by its
ability to--
``(i) own, construct or rehabilitate, manage, and operate
an affordable multifamily rental housing development;
``(ii) design, construct or rehabilitate, and market
affordable housing for homeownership; or
``(iii) provide forms of assistance, such as down payments,
closing costs, or interest rate buy-downs for purchasers;
``(B) demonstrates the ability and financial capacity to
undertake, comply, and manage the eligible activity;
``(C) demonstrates its familiarity with the requirements of
any other Federal, State, or local housing program that will
be used in conjunction with such grant amounts to ensure
compliance with all applicable requirements and regulations
of such programs; and
``(D) makes such assurances to the State or State
designated entity as the Secretary shall, by regulation,
require to ensure that the recipient will comply with the
requirements of this subsection during the entire period that
begins upon selection of the recipient to receive such grant
amounts and ending upon the conclusion of all activities
under paragraph (8) that are engaged in by the recipient and
funded with such grant amounts.
``(9) Limitations on use.--
``(A) Required amount for homeownership activities.--Of the
aggregate amount allocated to a State or State designated
entity under this subsection not more than 10 percent shall
be used for activities under subparagraph (B) of paragraph
(7).
``(B) Deadline for commitment or use.--Grant amounts
allocated to a State or State designated entity under this
subsection shall be used or committed for use within 2 years
of the date that such grant amounts are made available to the
State or State designated entity. The Secretary shall
recapture any such amounts not so used or committed for use
and reallocate such amounts under this subsection in the
first year after such recapture.
``(C) Use of returns.--The Secretary shall, by regulation,
provide that any return on a loan or other investment of any
grant amount used by a State or State designated entity to
provide a loan under this subsection shall be treated, for
purposes of availability to and use by the State or State
designated entity, as a grant amount authorized under this
subsection.
``(D) Prohibited uses.--The Secretary shall, by
regulation--
``(i) set forth prohibited uses of grant amounts allocated
under this subsection, which shall include use for--
``(I) political activities;
``(II) advocacy;
``(III) lobbying, whether directly or through other
parties;
``(IV) counseling services;
``(V) travel expenses; and
``(VI) preparing or providing advice on tax returns;
``(ii) provide that, except as provided in clause (iii),
grant amounts of a State or State designated entity may not
be used for administrative, outreach, or other costs of--
``(I) the State or State designated entity; or
``(II) any other recipient of such grant amounts; and
``(iii) limit the amount of any grant amounts for a year
that may be used by the State or State designated entity for
administrative costs of carrying out the program required
under this subsection, including home ownership counseling,
to a percentage of such grant amounts of the State or State
designated entity for such year, which may not exceed 10
percent.
``(E) Prohibition of consideration of use for meeting
housing goals or duty to serve.--In determining compliance
with the housing goals under this subpart and the duty to
serve underserved markets under section 1335, the Director
may not consider any grant amounts used under this section
for eligible activities under paragraph (7). The Director
shall give credit toward the achievement of such housing
goals and such duty to serve underserved markets to purchases
by the enterprises of mortgages for housing that receives
funding from such grant amounts, but only to the extent that
such purchases by the enterprises are funded other than with
such grant amounts.
``(d) Reduction for Failure to Obtain Return of Misused
Funds.--If in any year a State or State designated entity
fails to obtain reimbursement or return of the full amount
required under subsection (e)(1)(B) to be reimbursed or
returned to the State or State designated entity during such
year--
``(1) except as provided in paragraph (2)--
``(A) the amount of the grant for the State or State
designated entity for the succeeding year, as determined
pursuant to this section, shall be reduced by the amount by
which such amounts required to be reimbursed or returned
exceed the amount actually reimbursed or returned; and
``(B) the amount of the grant for the succeeding year for
each other State or State designated entity whose grant is
not reduced pursuant to subparagraph (A) shall be increased
by the amount determined by applying the formula established
pursuant to this section to the total amount of all
reductions for all State or State designated entities for
such year pursuant to subparagraph (A); or
``(2) in any case in which such failure to obtain
reimbursement or return occurs during a year immediately
preceding a year in which grants under this section will not
be made, the State or State designated entity shall pay to
the Secretary for reallocation among the other grantees an
amount equal to the amount of the reduction for the entity
that would otherwise apply under paragraph (1)(A).
``(e) Accountability of Recipients and Grantees.--
``(1) Recipients.--
``(A) Tracking of funds.--The Secretary shall--
[[Page S6051]]
``(i) require each State or State designated entity to
develop and maintain a system to ensure that each recipient
of assistance under this section uses such amounts in
accordance with this section, the regulations issued under
this section, and any requirements or conditions under which
such amounts were provided; and
``(ii) establish minimum requirements for agreements,
between the State or State designated entity and recipients,
regarding assistance under this section, which shall
include--
``(I) appropriate periodic financial and project reporting,
record retention, and audit requirements for the duration of
the assistance to the recipient to ensure compliance with the
limitations and requirements of this section and the
regulations under this section; and
``(II) any other requirements that the Secretary determines
are necessary to ensure appropriate administration and
compliance.
``(B) Misuse of funds.--
``(i) Reimbursement requirement.--If any recipient of
assistance under this section is determined, in accordance
with clause (ii), to have used any such amounts in a manner
that is materially in violation of this section, the
regulations issued under this section, or any requirements or
conditions under which such amounts were provided, the State
or State designated entity shall require that, within 12
months after the determination of such misuse, the recipient
shall reimburse the State or State designated entity for such
misused amounts and return to the State or State designated
entity any such amounts that remain unused or uncommitted for
use. The remedies under this clause are in addition to any
other remedies that may be available under law.
``(ii) Determination.--A determination is made in
accordance with this clause if the determination is made by
the Secretary or made by the State or State designated
entity, provided that--
``(I) the State or State designated entity provides
notification of the determination to the Secretary for
review, in the discretion of the Secretary, of the
determination; and
``(II) the Secretary does not subsequently reverse the
determination.
``(2) Grantees.--
``(A) Report.--
``(i) In general.--The Secretary shall require each State
or State designated entity receiving grant amounts in any
given year under this section to submit a report, for such
year, to the Secretary that--
``(I) describes the activities funded under this section
during such year with such grant amounts; and
``(II) the manner in which the State or State designated
entity complied during such year with any allocation plan
established pursuant to subsection (c).
``(ii) Public availability.--The Secretary shall make such
reports pursuant to this subparagraph publicly available.
``(B) Misuse of funds.--If the Secretary determines, after
reasonable notice and opportunity for hearing, that a State
or State designated entity has failed to comply substantially
with any provision of this section, and until the Secretary
is satisfied that there is no longer any such failure to
comply, the Secretary shall--
``(i) reduce the amount of assistance under this section to
the State or State designated entity by an amount equal to
the amount of grant amounts which were not used in accordance
with this section;
``(ii) require the State or State designated entity to
repay the Secretary any amount of the grant which was not
used in accordance with this section;
``(iii) limit the availability of assistance under this
section to the State or State designated entity to activities
or recipients not affected by such failure to comply; or
``(iv) terminate any assistance under this section to the
State or State designated entity.
``(f) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Extremely low-income renter household.--The term
`extremely low-income renter household' means a household
whose income is not in excess of 30 percent of the area
median income, with adjustments for smaller and larger
families, as determined by the Secretary.
``(2) Recipient.--The term `recipient' means an individual
or entity that receives assistance from a State or State
designated entity from amounts made available to the State or
State designated entity under this section.
``(3) Shortage of standard rental units both affordable and
available to extremely low-income renter households.--
``(A) In general.--The term `shortage of standard rental
units both affordable and available to extremely low-income
renter households' means for any State or other geographical
area the gap between--
``(i) the number of units with complete plumbing and
kitchen facilities with a rent that is 30 percent or less of
30 percent of the adjusted area median income as determined
by the Secretary that are occupied by extremely low-income
renter households or are vacant for rent; and
``(ii) the number of extremely low-income renter
households.
``(B) Rule of construction.--If the number of units
described in subparagraph (A)(i) exceeds the number of
extremely low-income households as described in subparagraph
(A)(ii), there is no shortage.
``(4) Shortage of standard rental units both affordable and
available to very low-income renter households.--
``(A) In general.--The term `shortage of standard rental
units both affordable and available to very low-income renter
households' means for any State or other geographical area
the gap between--
``(i) the number of units with complete plumbing and
kitchen facilities with a rent that is 30 percent or less of
50 percent of the adjusted area median income as determined
by the Secretary that are occupied by very low-income renter
households or are vacant for rent; and
``(ii) the number of very low-income renter households.
``(B) Rule of construction.--If the number of units
described in subparagraph (A)(i) exceeds the number of very
low-income households as described in subparagraph (A)(ii),
there is no shortage.
``(5) Very low-income family.--The term `very low-income
family' has the meaning given such term in section 1303,
except that such term includes any family that resides in a
rural area that has an income that does not exceed the
poverty line (as such term is defined in section 673(2) of
the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C.
9902(2)), including any revision required by such section)
applicable to a family of the size involved.
``(6) Very low-income renter households.--The term `very
low-income renter households' means a household whose income
is in excess of 30 percent but not greater than 50 percent of
the area median income, with adjustments for smaller and
larger families, as determined by the Secretary.
``(g) Regulations.--
``(1) In general.--The Secretary shall issue regulations to
carry out this section.
``(2) Required contents.--The regulations issued under this
subsection shall include--
``(A) a requirement that the Secretary ensure that the use
of grant amounts under this section by States or State
designated entities is audited not less than annually to
ensure compliance with this section;
``(B) authority for the Secretary to audit, provide for an
audit, or otherwise verify a State or State designated
entity's activities to ensure compliance with this section;
``(C) requirements for a process for application to, and
selection by, each State or State designated entity for
activities meeting the State or State designated entity's
priority housing needs to be funded with grant amounts under
this section, which shall provide for priority in funding to
be based upon--
``(i) geographic diversity;
``(ii) ability to obligate amounts and undertake activities
so funded in a timely manner;
``(iii) in the case of rental housing projects under
subsection (c)(7)(A), the extent to which rents for units in
the project funded are affordable, especially for extremely
low-income families;
``(iv) in the case of rental housing projects under
subsection (c)(7)(A), the extent of the duration for which
such rents will remain affordable;
``(v) the extent to which the application makes use of
other funding sources; and
``(vi) the merits of an applicant's proposed eligible
activity;
``(D) requirements to ensure that grant amounts provided to
a State or State designated entity under this section that
are used for rental housing under subsection (c)(7)(A) are
used only for the benefit of extremely low- and very low-
income families; and
``(E) requirements and standards for establishment, by a
State or State designated entity, for use of grant amounts in
2009 and subsequent years of performance goals, benchmarks,
and timetables for the production, preservation, and
rehabilitation of affordable rental and homeownership housing
with such grant amounts.
``(h) Affordable Housing Trust Fund.--If, after the date of
enactment of the Federal Housing Finance Regulatory Reform
Act of 2008, in any year, there is enacted any provision of
Federal law establishing an affordable housing trust fund
other than under this title for use only for grants to
provide affordable rental housing and affordable
homeownership opportunities, and the subsequent year is a
year referred to in subsection (c), the Secretary shall in
such subsequent year and any remaining years referred to in
subsection (c) transfer to such affordable housing trust fund
the aggregate amount allocated pursuant to subsection (c) in
such year. Notwithstanding any other provision of law,
assistance provided using amounts transferred to such
affordable housing trust fund pursuant to this subsection may
not be used for any of the activities specified in clauses
(i) through (vi) of subsection (c)(9)(D).
``(i) Funding Accountability and Transparency.--Any grant
under this section to a grantee by a State or State
designated entity, any assistance provided to a recipient by
a State or State designated entity, and any grant, award, or
other assistance from an affordable housing trust fund
referred to in subsection (h) shall be considered a Federal
award for purposes of the Federal Funding Accountability and
Transparency Act of 2006 (31 U.S.C. 6101 note). Upon the
request of the Director of the Office of Management and
Budget, the Secretary shall obtain and provide such
information regarding any such
[[Page S6052]]
grants, assistance, and awards as the Director of the Office
of Management and Budget considers necessary to comply with
the requirements of such Act, as applicable, pursuant to the
preceding sentence.
``SEC. 1339. CAPITAL MAGNET FUND.
``(a) Establishment.--There is established in the Treasury
of the United States a trust fund to be known as the Capital
Magnet Fund, which shall be a special account within the
Community Development Financial Institutions Fund.
``(b) Deposits to Trust Fund.--The Capital Magnet Fund
shall consist of--
``(1) any amounts appropriated to the Fund pursuant to
section 1337(a); and
``(2) any amounts as are or may be transferred or credited
to such Fund under any other provisions of law.''.
``(c) Expenditures From Trust Fund.--Amounts in the Capital
Magnet Fund shall be available to the Secretary of the
Treasury to carry out a competitive grant program to attract
private capital for and increase investment in--
``(1) the development, preservation, rehabilitation, or
purchase of affordable housing for primarily extremely low-,
very low-, and low-income families; and
``(2) economic development activities or community service
facilities, such as day care centers, workforce development
centers, and health care clinics, which in conjunction with
affordable housing activities implement a concerted strategy
to stabilize or revitalize a low-income area or underserved
rural area.
``(d) Federal Assistance.--All assistance provided using
amounts in the Capital Magnet Fund shall be considered to be
Federal financial assistance.
``(e) Eligible Grantees.--A grant under this section may be
made, pursuant to such requirements as the Secretary of the
Treasury shall establish for experience and success in
attracting private financing and carrying out the types of
activities proposed under the application of the grantee,
only to--
``(1) a Treasury certified community development financial
institution; or
``(2) a nonprofit organization having as 1 of its principal
purposes the development or management of affordable housing.
``(f) Eligible Uses.--Grant amounts awarded from the
Capital Magnet Fund pursuant to this section may be used for
the purposes described in paragraphs (1) and (2) of
subsection (c), including for the following uses:
``(1) To provide loan loss reserves.
``(2) To capitalize a revolving loan fund.
``(3) To capitalize an affordable housing fund.
``(4) To capitalize a fund to support activities described
in subsection (c)(2).
``(5) For risk-sharing loans.
``(g) Applications.--
``(1) In general.--The Secretary of the Treasury shall
provide, in a competitive application process established by
regulation, for eligible grantees under subsection (e) to
submit applications for Capital Magnet Fund grants to the
Secretary at such time and in such manner as the Secretary
shall determine.
``(2) Content of application.--The application required
under paragraph (1) shall include a detailed description of--
``(A) the types of affordable housing, economic, and
community revitalization projects that support or sustain
residents of an affordable housing project funded by a grant
under this section for which such grant amounts would be
used, including the proposed use of eligible grants as
authorized under this section;
``(B) the types, sources, and amounts of other funding for
such projects; and
``(C) the expected time frame of any grant used for such
project.
``(h) Grant Limitation.--
``(1) In general.--Any 1 eligible grantee and its
subsidiaries and affiliates may not be awarded more than 15
percent of the aggregate funds available for grants during
any year from the Capital Magnet Fund.
``(2) Geographic diversity.--
``(A) Goal.--The Secretary of the Treasury shall seek to
fund activities in geographically diverse areas of economic
distress, including metropolitan and underserved rural areas
in every State.
``(B) Diversity defined.--For purposes of this paragraph,
geographic diversity includes those areas that meet objective
criteria of economic distress developed by the Secretary of
the Treasury, which may include--
``(i) the percentage of low-income families or the extent
of poverty;
``(ii) the rate of unemployment or underemployment;
``(iii) extent of blight and disinvestment;
``(iv) projects that target extremely low-, very low-, and
low-income families in or outside a designated economic
distress area; or
``(v) any other criteria designated by the Secretary of the
Treasury.
``(3) Leverage of funds.--Each grant from the Capital
Magnet Fund awarded under this section shall be reasonably
expected to result in eligible housing, or economic and
community development projects that support or sustain an
affordable housing project funded by a grant under this
section whose aggregate costs total at least 10 times the
grant amount.
``(4) Commitment for use deadline.--Amounts made available
for grants under this section shall be committed for use
within 2 years of the date of such allocation. The Secretary
of the Treasury shall recapture into the Capital Magnet Fund
any amounts not so used or committed for use and allocate
such amounts in the first year after such recapture.
``(5) Lobbying restrictions.--No assistance or amounts made
available under this section may be expended by an eligible
grantee to pay any person to influence or attempt to
influence any agency, elected official, officer or employee
of a State or local government in connection with the making,
award, extension, continuation, renewal, amendment, or
modification of any State or local government contract,
grant, loan, or cooperative agreement as such terms are
defined in section 1352 of title 31, United States Code.
``(6) Prohibition of consideration of use for meeting
housing goals or duty to serve.--In determining the
compliance of the enterprises with the housing goals under
this section and the duty to serve underserved markets under
section 1335, the Director of the Federal Housing Finance
Agency may not consider any Capital Magnet Fund amounts used
under this section for eligible activities under subsection
(f). The Director of the Federal Housing Finance Agency shall
give credit toward the achievement of such housing goals and
such duty to serve underserved markets to purchases by the
enterprises of mortgages for housing that receives funding
from Capital Magnet Fund grant amounts, but only to the
extent that such purchases by the enterprises are funded
other than with such grant amounts.
``(7) Accountability of recipients and grantees.--
``(A) Tracking of funds.--The Secretary of the Treasury
shall--
``(i) require each grantee to develop and maintain a system
to ensure that each recipient of assistance from the Capital
Magnet Fund uses such amounts in accordance with this
section, the regulations issued under this section, and any
requirements or conditions under which such amounts were
provided; and
``(ii) establish minimum requirements for agreements,
between the grantee and the Capital Magnet Fund, regarding
assistance from the Capital Magnet Fund, which shall
include--
``(I) appropriate periodic financial and project reporting,
record retention, and audit requirements for the duration of
the grant to the recipient to ensure compliance with the
limitations and requirements of this section and the
regulations under this section; and
``(II) any other requirements that the Secretary determines
are necessary to ensure appropriate grant administration and
compliance.
``(B) Misuse of funds.--If the Secretary of the Treasury
determines, after reasonable notice and opportunity for
hearing, that a grantee has failed to comply substantially
with any provision of this section and until the Secretary is
satisfied that there is no longer any such failure to comply,
the Secretary shall--
``(i) reduce the amount of assistance under this section to
the grantee by an amount equal to the amount of Capital
Magnet Fund grant amounts which were not used in accordance
with this section;
``(ii) require the grantee to repay the Secretary any
amount of the Capital Magnet Fund grant amounts which were
not used in accordance with this section;
``(iii) limit the availability of assistance under this
section to the grantee to activities or recipients not
affected by such failure to comply; or
``(iv) terminate any assistance under this section to the
grantee.
``(i) Periodic Reports.--
``(1) In general.--The Secretary of the Treasury shall
submit a report, on a periodic basis, to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives describing the activities to be funded under
this section.
``(2) Reports available to public.--The Secretary of the
Treasury shall make the reports required under paragraph (1)
publicly available.
``(j) Regulations.--
``(1) In general.--The Secretary of the Treasury shall
issue regulations to carry out this section.
``(2) Required contents.--The regulations issued under this
subsection shall include--
``(A) authority for the Secretary to audit, provide for an
audit, or otherwise verify an enterprise's activities, to
ensure compliance with this section;
``(B) a requirement that the Secretary ensure that the
allocation of each enterprise is audited not less than
annually to ensure compliance with this section; and
``(C) requirements for a process for application to, and
selection by, the Secretary for activities to be funded with
amounts from the Capital Magnet Fund, which shall provide
that--
``(i) funds be fairly distributed to urban, suburban, and
rural areas; and
``(ii) selection shall be based upon specific criteria,
including a prioritization of funding based upon--
``(I) the ability to use such funds to generate additional
investments;
``(II) affordable housing need (taking into account the
distinct needs of different regions of the country); and
``(III) ability to obligate amounts and undertake
activities so funded in a timely manner.''.
[[Page S6053]]
SEC. 1132. FINANCIAL EDUCATION AND COUNSELING.
(a) Goals.--Financial education and counseling under this
section shall have the goal of--
(1) increasing the financial knowledge and decision making
capabilities of prospective homebuyers;
(2) assisting prospective homebuyers to develop monthly
budgets, build personal savings, finance or plan for major
purchases, reduce their debt, improve their financial
stability, and set and reach their financial goals;
(3) helping prospective homebuyers to improve their credit
scores by understanding the relationship between their credit
histories and their credit scores; and
(4) educating prospective homebuyers about the options
available to build savings for short- and long-term goals.
(b) Grants.--
(1) In general.--The Secretary of the Treasury (in this
section referred to as the ``Secretary'') shall make grants
to eligible organizations to enable such organizations to
provide a range of financial education and counseling
services to prospective homebuyers.
(2) Selection.--The Secretary shall select eligible
organizations to receive assistance under this section based
on their experience and ability to provide financial
education and counseling services that result in documented
positive behavioral changes.
(c) Eligible Organizations.--
(1) In general.--For purposes of this section, the term
``eligible organization'' means an organization that is--
(A) certified in accordance with section 106(e)(1) of the
Housing and Urban Development Act of 1968 (12 U.S.C.
1701x(e)); or
(B) certified by the Office of Financial Education of the
Department of the Treasury for purposes of this section, in
accordance with paragraph (2).
(2) OFE certification.--To be certified by the Office of
Financial Education for purposes of this section, an eligible
organization shall be--
(A) a housing counseling agency certified by the Secretary
of Housing and Urban Development under section 106(e) of the
Housing and Urban Development Act of 1968;
(B) a State, local, or tribal government agency;
(C) a community development financial institution (as
defined in section 103(5) of the Community Development
Banking and Financial Institutions Act of 1994 (12 U.S.C.
4702(5)) or a credit union; or
(D) any collaborative effort of entities described in any
of subparagraphs (A) through (C).
(d) Authority for Pilot Projects.--
(1) In general.--The Secretary of the Treasury shall
authorize not more than 5 pilot project grants to eligible
organizations under subsection (c) in order to--
(A) carry out the services under this section; and
(B) provide such other services that will improve the
financial stability and economic condition of low- and
moderate-income and low-wealth individuals.
(2) Goal.--The goal of the pilot project grants under this
subsection is to--
(A) identify successful methods resulting in positive
behavioral change for financial empowerment; and
(B) establish program models for organizations to carry out
effective counseling services.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary such sums as are
necessary to carry out this section and for the provision of
additional financial educational services.
(f) Study and Report on Effectiveness and Impact.--
(1) In general.--The Comptroller General of the United
States shall conduct a study on the effectiveness and impact
of the grant program established under this section. Not
later than 3 years after the date of enactment of this Act,
the Comptroller General shall submit a report on the results
of such study to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives.
(2) Content of study.--The study required under paragraph
(1) shall include an evaluation of the following:
(A) The effectiveness of the grant program established
under this section in improving the financial situation of
homeowners and prospective homebuyers served by the grant
program.
(B) The extent to which financial education and counseling
services have resulted in positive behavioral changes.
(C) The effectiveness and quality of the eligible
organizations providing financial education and counseling
services under the grant program.
(g) Regulations.--The Secretary is authorized to promulgate
such regulations as may be necessary to implement and
administer the grant program authorized by this section.
SEC. 1133. TRANSFER AND RIGHTS OF CERTAIN HUD EMPLOYEES.
(a) Transfer.--Each employee of the Department of Housing
and Urban Development whose position responsibilities
primarily involve the establishment and enforcement of the
housing goals under subpart B of part 2 of subtitle A of the
Federal Housing Enterprises Financial Safety and Soundness
Act of 1992 (12 U.S.C. 4561 et seq.) shall be transferred to
the Federal Housing Finance Agency for employment, not later
than the effective date of the Federal Housing Finance
Regulatory Reform Act of 2008, and such transfer shall be
deemed a transfer of function for purposes of section 3503 of
title 5, United States Code.
(b) Guaranteed Positions.--
(1) In general.--Each employee transferred under subsection
(a) shall be guaranteed a position with the same status,
tenure, grade, and pay as that held on the day immediately
preceding the transfer.
(2) No involuntary separation or reduction.--An employee
transferred under subsection (a) holding a permanent position
on the day immediately preceding the transfer may not be
involuntarily separated or reduced in grade or compensation
during the 12-month period beginning on the date of transfer,
except for cause, or, in the case of a temporary employee,
separated in accordance with the terms of the appointment of
the employee.
(c) Appointment Authority for Excepted and Senior Executive
Service Employees.--
(1) In general.--In the case of an employee occupying a
position in the excepted service or the Senior Executive
Service, any appointment authority established under law or
by regulations of the Office of Personnel Management for
filling such position shall be transferred, subject to
paragraph (2).
(2) Decline of transfer.--The Director may decline a
transfer of authority under paragraph (1) to the extent that
such authority relates to--
(A) a position excepted from the competitive service
because of its confidential, policymaking, policy-
determining, or policy-advocating character; or
(B) a noncareer position in the Senior Executive Service
(within the meaning of section 3132(a)(7) of title 5, United
States Code).
(d) Reorganization.--If the Director determines, after the
end of the 1-year period beginning on the effective date of
the Federal Housing Finance Regulatory Reform Act of 2008,
that a reorganization of the combined workforce is required,
that reorganization shall be deemed a major reorganization
for purposes of affording affected employee retirement under
section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States
Code.
(e) Employee Benefit Programs.--
(1) In general.--Any employee described under subsection
(a) accepting employment with the Agency as a result of a
transfer under subsection (a) may retain, for 12 months after
the date on which such transfer occurs, membership in any
employee benefit program of the Agency or the Department of
Housing and Urban Development, as applicable, including
insurance, to which such employee belongs on such effective
date, if--
(A) the employee does not elect to give up the benefit or
membership in the program; and
(B) the benefit or program is continued by the Director of
the Federal Housing Finance Agency.
(2) Cost differential.--
(A) In general.--The difference in the costs between the
benefits which would have been provided by the Department of
Housing and Urban Development and those provided by this
section shall be paid by the Director.
(B) Health insurance.--If any employee elects to give up
membership in a health insurance program or the health
insurance program is not continued by the Director, the
employee shall be permitted to select an alternate Federal
health insurance program not later than 30 days after the
date of such election or notice, without regard to any other
regularly scheduled open season.
Subtitle C--Prompt Corrective Action
SEC. 1141. CRITICAL CAPITAL LEVELS.
(a) In General.--Section 1363 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4613) is amended--
(1) by striking ``For'' and inserting ``(a) Enterprises.--
For''; and
(2) by adding at the end the following new subsection:
``(b) Federal Home Loan Banks.--
``(1) In general.--For purposes of this subtitle, the
critical capital level for each Federal Home Loan Bank shall
be such amount of capital as the Director shall, by
regulation, require.
``(2) Consideration of other critical capital levels.--In
establishing the critical capital level under paragraph (1)
for the Federal Home Loan Banks, the Director shall take due
consideration of the critical capital level established under
subsection (a) for the enterprises, with such modifications
as the Director determines to be appropriate to reflect the
difference in operations between the banks and the
enterprises.''.
(b) Regulations.--Not later than the expiration of the 180-
day period beginning on the date of enactment of this Act,
the Director of the Federal Housing Finance Agency shall
issue regulations pursuant to section 1363(b) of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992 (as added by this section) establishing the critical
capital level under such section.
SEC. 1142. CAPITAL CLASSIFICATIONS.
(a) In General.--Section 1364 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4614) is amended--
(1) in the heading for subsection (a) by striking ``In
General'' and inserting ``Enterprises'';
(2) in subsection (c)--
(A) by striking ``subsection (b)'' and inserting
``subsection (c)'';
[[Page S6054]]
(B) by striking ``enterprises'' and inserting ``regulated
entities''; and
(C) by striking the last sentence;
(3) by redesignating subsections (c) (as so amended by
paragraph (2) of this subsection) and (d) as subsections (d)
and (f), respectively;
(4) by striking subsection (b) and inserting the following:
``(b) Federal Home Loan Banks.--
``(1) Establishment and criteria.--For purposes of this
subtitle, the Director shall, by regulation--
``(A) establish the capital classifications specified under
paragraph (2) for the Federal Home Loan Banks;
``(B) establish criteria for each such capital
classification based on the amount and types of capital held
by a bank and the risk-based, minimum, and critical capital
levels for the banks and taking due consideration of the
capital classifications established under subsection (a) for
the enterprises, with such modifications as the Director
determines to be appropriate to reflect the difference in
operations between the banks and the enterprises; and
``(C) shall classify the Federal Home Loan Banks according
to such capital classifications.
``(2) Classifications.--The capital classifications
specified under this paragraph are--
``(A) adequately capitalized;
``(B) undercapitalized;
``(C) significantly undercapitalized; and
``(D) critically undercapitalized.
``(c) Discretionary Classification.--
``(1) Grounds for reclassification.--The Director may
reclassify a regulated entity under paragraph (2) if--
``(A) at any time, the Director determines in writing that
the regulated entity is engaging in conduct that could result
in a rapid depletion of core or total capital or the value of
collateral pledged as security has decreased significantly or
that the value of the property subject to any mortgage held
by the regulated entity (or securitized in the case of an
enterprise) has decreased significantly;
``(B) after notice and an opportunity for hearing, the
Director determines that the regulated entity is in an unsafe
or unsound condition; or
``(C) pursuant to section 1371(b), the Director deems the
regulated entity to be engaging in an unsafe or unsound
practice.
``(2) Reclassification.--In addition to any other action
authorized under this title, including the reclassification
of a regulated entity for any reason not specified in this
subsection, if the Director takes any action described in
paragraph (1), the Director may classify a regulated entity--
``(A) as undercapitalized, if the regulated entity is
otherwise classified as adequately capitalized;
``(B) as significantly undercapitalized, if the regulated
entity is otherwise classified as undercapitalized; and
``(C) as critically undercapitalized, if the regulated
entity is otherwise classified as significantly
undercapitalized.''; and
(5) by inserting after subsection (d) (as so redesignated
by paragraph (3) of this subsection), the following new
subsection:
``(e) Restriction on Capital Distributions.--
``(1) In general.--A regulated entity shall make no capital
distribution if, after making the distribution, the regulated
entity would be undercapitalized.
``(2) Exception.--Notwithstanding paragraph (1), the
Director may permit a regulated entity, to the extent
appropriate or applicable, to repurchase, redeem, retire, or
otherwise acquire shares or ownership interests if the
repurchase, redemption, retirement, or other acquisition--
``(A) is made in connection with the issuance of additional
shares or obligations of the regulated entity in at least an
equivalent amount; and
``(B) will reduce the financial obligations of the
regulated entity or otherwise improve the financial condition
of the entity.''.
(b) Regulations.--Not later than the expiration of the 180-
day period beginning on the date of enactment of this Act,
the Director of the Federal Housing Finance Agency shall
issue regulations to carry out section 1364(b) of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992 (as added by this section), relating to capital
classifications for the Federal Home Loan Banks.
SEC. 1143. SUPERVISORY ACTIONS APPLICABLE TO UNDERCAPITALIZED
REGULATED ENTITIES.
Section 1365 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4615) is
amended--
(1) by striking ``the enterprise'' each place that term
appears and inserting ``the regulated entity'';
(2) by striking ``An enterprise'' each place that term
appears and inserting ``A regulated entity'';
(3) by striking ``an enterprise'' each place that term
appears and inserting ``a regulated entity'';
(4) in subsection (a)--
(A) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively;
(B) by inserting before paragraph (2), as redesignated, the
following:
``(1) Required monitoring.--The Director shall--
``(A) closely monitor the condition of any undercapitalized
regulated entity;
``(B) closely monitor compliance with the capital
restoration plan, restrictions, and requirements imposed on
an undercapitalized regulated entity under this section; and
``(C) periodically review the plan, restrictions, and
requirements applicable to an undercapitalized regulated
entity to determine whether the plan, restrictions, and
requirements are achieving the purpose of this section.'';
and
(C) by adding at the end the following:
``(4) Restriction of asset growth.--An undercapitalized
regulated entity shall not permit its average total assets
during any calendar quarter to exceed its average total
assets during the preceding calendar quarter, unless--
``(A) the Director has accepted the capital restoration
plan of the regulated entity;
``(B) any increase in total assets is consistent with the
capital restoration plan; and
``(C) the ratio of tangible equity to assets of the
regulated entity increases during the calendar quarter at a
rate sufficient to enable the regulated entity to become
adequately capitalized within a reasonable time.
``(5) Prior approval of acquisitions and new activities.--
An undercapitalized regulated entity shall not, directly or
indirectly, acquire any interest in any entity or engage in
any new activity, unless--
``(A) the Director has accepted the capital restoration
plan of the regulated entity, the regulated entity is
implementing the plan, and the Director determines that the
proposed action is consistent with and will further the
achievement of the plan; or
``(B) the Director determines that the proposed action will
further the purpose of this subtitle.'';
(5) in subsection (b)--
(A) in the subsection heading, by striking
``Discretionary'';
(B) in the matter preceding paragraph (1), by striking
``may'' and inserting ``shall''; and
(C) in paragraph (2)--
(i) by striking ``make, in good faith, reasonable efforts
necessary to''; and
(ii) by striking the period at the end and inserting ``in
any material respect.''; and
(6) by striking subsection (c) and inserting the following:
``(c) Other Discretionary Safeguards.--The Director may
take, with respect to an undercapitalized regulated entity,
any of the actions authorized to be taken under section 1366
with respect to a significantly undercapitalized regulated
entity, if the Director determines that such actions are
necessary to carry out the purpose of this subtitle.''.
SEC. 1144. SUPERVISORY ACTIONS APPLICABLE TO SIGNIFICANTLY
UNDERCAPITALIZED REGULATED ENTITIES.
Section 1366 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4616) is
amended--
(1) in subsection (a)(2), by striking ``undercapitalized
enterprise'' and inserting ``undercapitalized'';
(2) by striking ``the enterprise'' each place that term
appears and inserting ``the regulated entity'';
(3) by striking ``An enterprise'' each place that term
appears and inserting ``A regulated entity'';
(4) by striking ``an enterprise'' each place that term
appears and inserting ``a regulated entity'';
(5) in subsection (b)--
(A) in the subsection heading, by striking ``Discretionary
Supervisory'' and inserting ``Specific'';
(B) in the matter preceding paragraph (1), by striking
``may, at any time, take any'' and inserting ``shall carry
out this section by taking, at any time, 1 or more'';
(C) by striking paragraph (6);
(D) by redesignating paragraph (5) as paragraph (6);
(E) by inserting after paragraph (4) the following:
``(5) Improvement of management.--Take 1 or more of the
following actions:
``(A) New election of board.--Order a new election for the
board of directors of the regulated entity.
``(B) Dismissal of directors or executive officers.--
Require the regulated entity to dismiss from office any
director or executive officer who had held office for more
than 180 days immediately before the date on which the
regulated entity became undercapitalized. Dismissal under
this subparagraph shall not be construed to be a removal
pursuant to the enforcement powers of the Director under
section 1377.
``(C) Employ qualified executive officers.--Require the
regulated entity to employ qualified executive officers (who,
if the Director so specifies, shall be subject to approval by
the Director).''; and
(F) by adding at the end the following:
``(7) Other action.--Require the regulated entity to take
any other action that the Director determines will better
carry out the purpose of this section than any of the other
actions specified in this subsection.''; and
(6) by striking subsection (c) and inserting the following:
``(c) Restriction on Compensation of Executive Officers.--A
regulated entity that is classified as significantly
undercapitalized in accordance with section 1364 may not,
without prior written approval by the Director--
``(1) pay any bonus to any executive officer; or
``(2) provide compensation to any executive officer at a
rate exceeding the average rate of compensation of that
officer (excluding bonuses, stock options, and profit
sharing) during the 12 calendar months preceding the
[[Page S6055]]
calendar month in which the regulated entity became
significantly undercapitalized.''.
SEC. 1145. AUTHORITY OVER CRITICALLY UNDERCAPITALIZED
REGULATED ENTITIES.
(a) In General.--Section 1367 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4617) is amended to read as follows:
``SEC. 1367. AUTHORITY OVER CRITICALLY UNDERCAPITALIZED
REGULATED ENTITIES.
``(a) Appointment of the Agency as Conservator or
Receiver.--
``(1) In general.--Notwithstanding any other provision of
Federal or State law, the Director may appoint the Agency as
conservator or receiver for a regulated entity in the manner
provided under paragraph (2) or (4). All references to the
conservator or receiver under this section are references to
the Agency acting as conservator or receiver.
``(2) Discretionary appointment.--The Agency may, at the
discretion of the Director, be appointed conservator or
receiver for the purpose of reorganizing, rehabilitating, or
winding up the affairs of a regulated entity.
``(3) Grounds for discretionary appointment of conservator
or receiver.--The grounds for appointing conservator or
receiver for any regulated entity under paragraph (2) are as
follows:
``(A) Substantial dissipation.--Substantial dissipation of
assets or earnings due to--
``(i) any violation of any provision of Federal or State
law; or
``(ii) any unsafe or unsound practice.
``(B) Unsafe or unsound condition.--An unsafe or unsound
condition to transact business.
``(C) Cease and desist orders.--Any willful violation of a
cease and desist order that has become final.
``(D) Concealment.--Any concealment of the books, papers,
records, or assets of the regulated entity, or any refusal to
submit the books, papers, records, or affairs of the
regulated entity, for inspection to any examiner or to any
lawful agent of the Director.
``(E) Inability to meet obligations.--The regulated entity
is likely to be unable to pay its obligations or meet the
demands of its creditors in the normal course of business.
``(F) Losses.--The regulated entity has incurred or is
likely to incur losses that will deplete all or substantially
all of its capital, and there is no reasonable prospect for
the regulated entity to become adequately capitalized (as
defined in section 1364(a)(1)).
``(G) Violations of law.--Any violation of any law or
regulation, or any unsafe or unsound practice or condition
that is likely to--
``(i) cause insolvency or substantial dissipation of assets
or earnings; or
``(ii) weaken the condition of the regulated entity.
``(H) Consent.--The regulated entity, by resolution of its
board of directors or its shareholders or members, consents
to the appointment.
``(I) Undercapitalization.--The regulated entity is
undercapitalized or significantly undercapitalized (as
defined in section 1364(a)(3)), and--
``(i) has no reasonable prospect of becoming adequately
capitalized;
``(ii) fails to become adequately capitalized, as required
by--
``(I) section 1365(a)(1) with respect to a regulated
entity; or
``(II) section 1366(a)(1) with respect to a significantly
undercapitalized regulated entity;
``(iii) fails to submit a capital restoration plan
acceptable to the Agency within the time prescribed under
section 1369C; or
``(iv) materially fails to implement a capital restoration
plan submitted and accepted under section 1369C.
``(J) Critical undercapitalization.--The regulated entity
is critically undercapitalized, as defined in section
1364(a)(4).
``(K) Money laundering.--The Attorney General notifies the
Director in writing that the regulated entity has been found
guilty of a criminal offense under section 1956 or 1957 of
title 18, United States Code, or section 5322 or 5324 of
title 31, United States Code.
``(4) Mandatory receivership.--
``(A) In general.--The Director shall appoint the Agency as
receiver for a regulated entity if the Director determines,
in writing, that--
``(i) the assets of the regulated entity are, and during
the preceding 60 calendar days have been, less than the
obligations of the regulated entity to its creditors and
others; or
``(ii) the regulated entity is not, and during the
preceding 60 calendar days has not been, generally paying the
debts of the regulated entity (other than debts that are the
subject of a bona fide dispute) as such debts become due.
``(B) Periodic determination required for critically
undercapitalized regulated entity.--If a regulated entity is
critically undercapitalized, the Director shall make a
determination, in writing, as to whether the regulated entity
meets the criteria specified in clause (i) or (ii) of
subparagraph (A)--
``(i) not later than 30 calendar days after the regulated
entity initially becomes critically undercapitalized; and
``(ii) at least once during each succeeding 30-calendar day
period.
``(C) Determination not required if receivership already in
place.--Subparagraph (B) does not apply with respect to a
regulated entity in any period during which the Agency serves
as receiver for the regulated entity.
``(D) Receivership terminates conservatorship.--The
appointment of the Agency as receiver of a regulated entity
under this section shall immediately terminate any
conservatorship established for the regulated entity under
this title.
``(5) Judicial review.--
``(A) In general.--If the Agency is appointed conservator
or receiver under this section, the regulated entity may,
within 30 days of such appointment, bring an action in the
United States district court for the judicial district in
which the home office of such regulated entity is located, or
in the United States District Court for the District of
Columbia, for an order requiring the Agency to remove itself
as conservator or receiver.
``(B) Review.--Upon the filing of an action under
subparagraph (A), the court shall, upon the merits, dismiss
such action or direct the Agency to remove itself as such
conservator or receiver.
``(6) Directors not liable for acquiescing in appointment
of conservator or receiver.--The members of the board of
directors of a regulated entity shall not be liable to the
shareholders or creditors of the regulated entity for
acquiescing in or consenting in good faith to the appointment
of the Agency as conservator or receiver for that regulated
entity.
``(7) Agency not subject to any other federal agency.--When
acting as conservator or receiver, the Agency shall not be
subject to the direction or supervision of any other agency
of the United States or any State in the exercise of the
rights, powers, and privileges of the Agency.
``(b) Powers and Duties of the Agency as Conservator or
Receiver.--
``(1) Rulemaking authority of the agency.--The Agency may
prescribe such regulations as the Agency determines to be
appropriate regarding the conduct of conservatorships or
receiverships.
``(2) General powers.--
``(A) Successor to regulated entity.--The Agency shall, as
conservator or receiver, and by operation of law, immediately
succeed to--
``(i) all rights, titles, powers, and privileges of the
regulated entity, and of any stockholder, officer, or
director of such regulated entity with respect to the
regulated entity and the assets of the regulated entity; and
``(ii) title to the books, records, and assets of any other
legal custodian of such regulated entity.
``(B) Operate the regulated entity.--The Agency may, as
conservator or receiver--
``(i) take over the assets of and operate the regulated
entity with all the powers of the shareholders, the
directors, and the officers of the regulated entity and
conduct all business of the regulated entity;
``(ii) collect all obligations and money due the regulated
entity;
``(iii) perform all functions of the regulated entity in
the name of the regulated entity which are consistent with
the appointment as conservator or receiver;
``(iv) preserve and conserve the assets and property of the
regulated entity; and
``(v) provide by contract for assistance in fulfilling any
function, activity, action, or duty of the Agency as
conservator or receiver.
``(C) Functions of officers, directors, and shareholders of
a regulated entity.--The Agency may, by regulation or order,
provide for the exercise of any function by any stockholder,
director, or officer of any regulated entity for which the
Agency has been named conservator or receiver.
``(D) Powers as conservator.--The Agency may, as
conservator, take such action as may be--
``(i) necessary to put the regulated entity in a sound and
solvent condition; and
``(ii) appropriate to carry on the business of the
regulated entity and preserve and conserve the assets and
property of the regulated entity.
``(E) Additional powers as receiver.--In any case in which
the Agency is acting as receiver, the Agency shall place the
regulated entity in liquidation and proceed to realize upon
the assets of the regulated entity in such manner as the
Agency deems appropriate, including through the sale of
assets, the transfer of assets to a limited-life regulated
entity established under subsection (i), or the exercise of
any other rights or privileges granted to the Agency under
this paragraph.
``(F) Organization of new enterprise.--The Agency shall, as
receiver for an enterprise, organize a successor enterprise
that will operate pursuant to subsection (i).
``(G) Transfer or sale of assets and liabilities.--The
Agency may, as conservator or receiver, transfer or sell any
asset or liability of the regulated entity in default, and
may do so without any approval, assignment, or consent with
respect to such transfer or sale.
``(H) Payment of valid obligations.--The Agency, as
conservator or receiver, shall, to the extent of proceeds
realized from the performance of contracts or sale of the
assets of a regulated entity, pay all valid obligations of
the regulated entity that are due and payable at the time of
the appointment of the Agency as conservator or receiver, in
accordance with the prescriptions and limitations of this
section.
``(I) Subpoena authority.--
``(i) In general.--
``(I) Agency authority.--The Agency may, as conservator or
receiver, and for purposes
[[Page S6056]]
of carrying out any power, authority, or duty with respect to
a regulated entity (including determining any claim against
the regulated entity and determining and realizing upon any
asset of any person in the course of collecting money due the
regulated entity), exercise any power established under
section 1348.
``(II) Applicability of law.--The provisions of section
1348 shall apply with respect to the exercise of any power
under this subparagraph, in the same manner as such
provisions apply under that section.
``(ii) Subpoena.--A subpoena or subpoena duces tecum may be
issued under clause (i) only by, or with the written approval
of, the Director, or the designee of the Director.
``(iii) Rule of construction.--This subsection shall not be
construed to limit any rights that the Agency, in any
capacity, might otherwise have under section 1317 or 1379B.
``(J) Incidental powers.--The Agency may, as conservator or
receiver--
``(i) exercise all powers and authorities specifically
granted to conservators or receivers, respectively, under
this section, and such incidental powers as shall be
necessary to carry out such powers; and
``(ii) take any action authorized by this section, which
the Agency determines is in the best interests of the
regulated entity or the Agency.
``(K) Other provisions.--
``(i) Shareholders and creditors of failed regulated
entity.--Notwithstanding any other provision of law, the
appointment of the Agency as receiver for a regulated entity
pursuant to paragraph (2) or (4) of subsection (a) and its
succession, by operation of law, to the rights, titles,
powers, and privileges described in subsection (b)(2)(A)
shall terminate all rights and claims that the stockholders
and creditors of the regulated entity may have against the
assets or charter of the regulated entity or the Agency
arising as a result of their status as stockholders or
creditors, except for their right to payment, resolution, or
other satisfaction of their claims, as permitted under
subsections (b)(9), (c), and (e).
``(ii) Assets of regulated entity.--Notwithstanding any
other provision of law, for purposes of this section, the
charter of a regulated entity shall not be considered an
asset of the regulated entity.
``(3) Authority of receiver to determine claims.--
``(A) In general.--The Agency may, as receiver, determine
claims in accordance with the requirements of this subsection
and any regulations prescribed under paragraph (4).
``(B) Notice requirements.--The receiver, in any case
involving the liquidation or winding up of the affairs of a
closed regulated entity, shall--
``(i) promptly publish a notice to the creditors of the
regulated entity to present their claims, together with
proof, to the receiver by a date specified in the notice
which shall be not less than 90 days after the date of
publication of such notice; and
``(ii) republish such notice approximately 1 month and 2
months, respectively, after the date of publication under
clause (i).
``(C) Mailing required.--The receiver shall mail a notice
similar to the notice published under subparagraph (B)(i) at
the time of such publication to any creditor shown on the
books of the regulated entity--
``(i) at the last address of the creditor appearing in such
books; or
``(ii) upon discovery of the name and address of a claimant
not appearing on the books of the regulated entity, within 30
days after the discovery of such name and address.
``(4) Rulemaking authority relating to determination of
claims.--Subject to subsection (c), the Director may
prescribe regulations regarding the allowance or disallowance
of claims by the receiver and providing for administrative
determination of claims and review of such determination.
``(5) Procedures for determination of claims.--
``(A) Determination period.--
``(i) In general.--Before the end of the 180-day period
beginning on the date on which any claim against a regulated
entity is filed with the Agency as receiver, the Agency shall
determine whether to allow or disallow the claim and shall
notify the claimant of any determination with respect to such
claim.
``(ii) Extension of time.--The period described in clause
(i) may be extended by a written agreement between the
claimant and the Agency.
``(iii) Mailing of notice sufficient.--The requirements of
clause (i) shall be deemed to be satisfied if the notice of
any determination with respect to any claim is mailed to the
last address of the claimant which appears--
``(I) on the books of the regulated entity;
``(II) in the claim filed by the claimant; or
``(III) in documents submitted in proof of the claim.
``(iv) Contents of notice of disallowance.--If any claim
filed under clause (i) is disallowed, the notice to the
claimant shall contain--
``(I) a statement of each reason for the disallowance; and
``(II) the procedures available for obtaining agency review
of the determination to disallow the claim or judicial
determination of the claim.
``(B) Allowance of proven claim.--The receiver shall allow
any claim received on or before the date specified in the
notice published under paragraph (3)(B)(i) by the receiver
from any claimant which is proved to the satisfaction of the
receiver.
``(C) Disallowance of claims filed after filing period.--
Claims filed after the date specified in the notice published
under paragraph (3)(B)(i), or the date specified under
paragraph (3)(C), shall be disallowed and such disallowance
shall be final.
``(D) Authority to disallow claims.--
``(i) In general.--The receiver may disallow any portion of
any claim by a creditor or claim of security, preference, or
priority which is not proved to the satisfaction of the
receiver.
``(ii) Payments to less than fully secured creditors.--In
the case of a claim of a creditor against a regulated entity
which is secured by any property or other asset of such
regulated entity, the receiver--
``(I) may treat the portion of such claim which exceeds an
amount equal to the fair market value of such property or
other asset as an unsecured claim against the regulated
entity; and
``(II) may not make any payment with respect to such
unsecured portion of the claim, other than in connection with
the disposition of all claims of unsecured creditors of the
regulated entity.
``(iii) Exceptions.--No provision of this paragraph shall
apply with respect to--
``(I) any extension of credit from any Federal Reserve
Bank, Federal Home Loan Bank, or the United States Treasury;
or
``(II) any security interest in the assets of the regulated
entity securing any such extension of credit.
``(E) No judicial review of determination pursuant to
subparagraph (d).--No court may review the determination of
the Agency under subparagraph (D) to disallow a claim.
``(F) Legal effect of filing.--
``(i) Statute of limitation tolled.--For purposes of any
applicable statute of limitations, the filing of a claim with
the receiver shall constitute a commencement of an action.
``(ii) No prejudice to other actions.--Subject to paragraph
(10), the filing of a claim with the receiver shall not
prejudice any right of the claimant to continue any action
which was filed before the date of the appointment of the
receiver, subject to the determination of claims by the
receiver.
``(6) Provision for judicial determination of claims.--
``(A) In general.--The claimant may file suit on a claim
(or continue an action commenced before the appointment of
the receiver) in the district or territorial court of the
United States for the district within which the principal
place of business of the regulated entity is located or the
United States District Court for the District of Columbia
(and such court shall have jurisdiction to hear such claim),
before the end of the 60-day period beginning on the earlier
of--
``(i) the end of the period described in paragraph
(5)(A)(i) with respect to any claim against a regulated
entity for which the Agency is receiver; or
``(ii) the date of any notice of disallowance of such claim
pursuant to paragraph (5)(A)(i).
``(B) Statute of limitations.--A claim shall be deemed to
be disallowed (other than any portion of such claim which was
allowed by the receiver), and such disallowance shall be
final, and the claimant shall have no further rights or
remedies with respect to such claim, if the claimant fails,
before the end of the 60-day period described under
subparagraph (A), to file suit on such claim (or continue an
action commenced before the appointment of the receiver).
``(7) Review of claims.--
``(A) Other review procedures.--
``(i) In general.--The Agency shall establish such
alternative dispute resolution processes as may be
appropriate for the resolution of claims filed under
paragraph (5)(A)(i).
``(ii) Criteria.--In establishing alternative dispute
resolution processes, the Agency shall strive for procedures
which are expeditious, fair, independent, and low cost.
``(iii) Voluntary binding or nonbinding procedures.--The
Agency may establish both binding and nonbinding processes
under this subparagraph, which may be conducted by any
government or private party. All parties, including the
claimant and the Agency, must agree to the use of the process
in a particular case.
``(B) Consideration of incentives.--The Agency shall seek
to develop incentives for claimants to participate in the
alternative dispute resolution process.
``(8) Expedited determination of claims.--
``(A) Establishment required.--The Agency shall establish a
procedure for expedited relief outside of the routine claims
process established under paragraph (5) for claimants who--
``(i) allege the existence of legally valid and enforceable
or perfected security interests in assets of any regulated
entity for which the Agency has been appointed receiver; and
``(ii) allege that irreparable injury will occur if the
routine claims procedure is followed.
``(B) Determination period.--Before the end of the 90-day
period beginning on the date on which any claim is filed in
accordance with the procedures established under subparagraph
(A), the Director shall--
``(i) determine--
``(I) whether to allow or disallow such claim; or
[[Page S6057]]
``(II) whether such claim should be determined pursuant to
the procedures established under paragraph (5); and
``(ii) notify the claimant of the determination, and if the
claim is disallowed, provide a statement of each reason for
the disallowance and the procedure for obtaining agency
review or judicial determination.
``(C) Period for filing or renewing suit.--Any claimant who
files a request for expedited relief shall be permitted to
file a suit, or to continue a suit filed before the date of
appointment of the receiver, seeking a determination of the
rights of the claimant with respect to such security interest
after the earlier of--
``(i) the end of the 90-day period beginning on the date of
the filing of a request for expedited relief; or
``(ii) the date on which the Agency denies the claim.
``(D) Statute of limitations.--If an action described under
subparagraph (C) is not filed, or the motion to renew a
previously filed suit is not made, before the end of the 30-
day period beginning on the date on which such action or
motion may be filed under subparagraph (B), the claim shall
be deemed to be disallowed as of the end of such period
(other than any portion of such claim which was allowed by
the receiver), such disallowance shall be final, and the
claimant shall have no further rights or remedies with
respect to such claim.
``(E) Legal effect of filing.--
``(i) Statute of limitation tolled.--For purposes of any
applicable statute of limitations, the filing of a claim with
the receiver shall constitute a commencement of an action.
``(ii) No prejudice to other actions.--Subject to paragraph
(10), the filing of a claim with the receiver shall not
prejudice any right of the claimant to continue any action
that was filed before the appointment of the receiver,
subject to the determination of claims by the receiver.
``(9) Payment of claims.--
``(A) In general.--The receiver may, in the discretion of
the receiver, and to the extent that funds are available from
the assets of the regulated entity, pay creditor claims, in
such manner and amounts as are authorized under this section,
which are--
``(i) allowed by the receiver;
``(ii) approved by the Agency pursuant to a final
determination pursuant to paragraph (7) or (8); or
``(iii) determined by the final judgment of any court of
competent jurisdiction.
``(B) Agreements against the interest of the agency.--No
agreement that tends to diminish or defeat the interest of
the Agency in any asset acquired by the Agency as receiver
under this section shall be valid against the Agency unless
such agreement is in writing and executed by an authorized
officer or representative of the regulated entity.
``(C) Payment of dividends on claims.--The receiver may, in
the sole discretion of the receiver, pay from the assets of
the regulated entity dividends on proved claims at any time,
and no liability shall attach to the Agency by reason of any
such payment, for failure to pay dividends to a claimant
whose claim is not proved at the time of any such payment.
``(D) Rulemaking authority of the director.--The Director
may prescribe such rules, including definitions of terms, as
the Director deems appropriate to establish a single uniform
interest rate for, or to make payments of post-insolvency
interest to creditors holding proven claims against the
receivership estates of the regulated entity, following
satisfaction by the receiver of the principal amount of all
creditor claims.
``(10) Suspension of legal actions.--
``(A) In general.--After the appointment of a conservator
or receiver for a regulated entity, the conservator or
receiver may, in any judicial action or proceeding to which
such regulated entity is or becomes a party, request a stay
for a period not to exceed--
``(i) 45 days, in the case of any conservator; and
``(ii) 90 days, in the case of any receiver.
``(B) Grant of stay by all courts required.--Upon receipt
of a request by the conservator or receiver under
subparagraph (A) for a stay of any judicial action or
proceeding in any court with jurisdiction of such action or
proceeding, the court shall grant such stay as to all
parties.
``(11) Additional rights and duties.--
``(A) Prior final adjudication.--The Agency shall abide by
any final unappealable judgment of any court of competent
jurisdiction which was rendered before the appointment of the
Agency as conservator or receiver.
``(B) Rights and remedies of conservator or receiver.--In
the event of any appealable judgment, the Agency as
conservator or receiver--
``(i) shall have all of the rights and remedies available
to the regulated entity (before the appointment of such
conservator or receiver) and the Agency, including removal to
Federal court and all appellate rights; and
``(ii) shall not be required to post any bond in order to
pursue such remedies.
``(C) No attachment or execution.--No attachment or
execution may issue by any court upon assets in the
possession of the receiver, or upon the charter, of a
regulated entity for which the Agency has been appointed
receiver.
``(D) Limitation on judicial review.--Except as otherwise
provided in this subsection, no court shall have jurisdiction
over--
``(i) any claim or action for payment from, or any action
seeking a determination of rights with respect to, the assets
or charter of any regulated entity for which the Agency has
been appointed receiver; or
``(ii) any claim relating to any act or omission of such
regulated entity or the Agency as receiver.
``(E) Disposition of assets.--In exercising any right,
power, privilege, or authority as conservator or receiver in
connection with any sale or disposition of assets of a
regulated entity for which the Agency has been appointed
conservator or receiver, the Agency shall conduct its
operations in a manner which--
``(i) maximizes the net present value return from the sale
or disposition of such assets;
``(ii) minimizes the amount of any loss realized in the
resolution of cases; and
``(iii) ensures adequate competition and fair and
consistent treatment of offerors.
``(12) Statute of limitations for actions brought by
conservator or receiver.--
``(A) In general.--Notwithstanding any provision of any
contract, the applicable statute of limitations with regard
to any action brought by the Agency as conservator or
receiver shall be--
``(i) in the case of any contract claim, the longer of--
``(I) the 6-year period beginning on the date on which the
claim accrues; or
``(II) the period applicable under State law; and
``(ii) in the case of any tort claim, the longer of--
``(I) the 3-year period beginning on the date on which the
claim accrues; or
``(II) the period applicable under State law.
``(B) Determination of the date on which a claim accrues.--
For purposes of subparagraph (A), the date on which the
statute of limitations begins to run on any claim described
in such subparagraph shall be the later of--
``(i) the date of the appointment of the Agency as
conservator or receiver; or
``(ii) the date on which the cause of action accrues.
``(13) Revival of expired state causes of action.--
``(A) In general.--In the case of any tort claim described
under clause (ii) for which the statute of limitations
applicable under State law with respect to such claim has
expired not more than 5 years before the appointment of the
Agency as conservator or receiver, the Agency may bring an
action as conservator or receiver on such claim without
regard to the expiration of the statute of limitations
applicable under State law.
``(B) Claims described.--A tort claim referred to under
clause (i) is a claim arising from fraud, intentional
misconduct resulting in unjust enrichment, or intentional
misconduct resulting in substantial loss to the regulated
entity.
``(14) Accounting and recordkeeping requirements.--
``(A) In general.--The Agency as conservator or receiver
shall, consistent with the accounting and reporting practices
and procedures established by the Agency, maintain a full
accounting of each conservatorship and receivership or other
disposition of a regulated entity in default.
``(B) Annual accounting or report.--With respect to each
conservatorship or receivership, the Agency shall make an
annual accounting or report available to the Board, the
Comptroller General of the United States, the Committee on
Banking, Housing, and Urban Affairs of the Senate, and the
Committee on Financial Services of the House of
Representatives.
``(C) Availability of reports.--Any report prepared under
subparagraph (B) shall be made available by the Agency upon
request to any shareholder of a regulated entity or any
member of the public.
``(D) Recordkeeping requirement.--After the end of the 6-
year period beginning on the date on which the
conservatorship or receivership is terminated by the
Director, the Agency may destroy any records of such
regulated entity which the Agency, in the discretion of the
Agency, determines to be unnecessary, unless directed not to
do so by a court of competent jurisdiction or governmental
agency, or prohibited by law.
``(15) Fraudulent transfers.--
``(A) In general.--The Agency, as conservator or receiver,
may avoid a transfer of any interest of an entity-affiliated
party, or any person determined by the conservator or
receiver to be a debtor of the regulated entity, in property,
or any obligation incurred by such party or person, that was
made within 5 years of the date on which the Agency was
appointed conservator or receiver, if such party or person
voluntarily or involuntarily made such transfer or incurred
such liability with the intent to hinder, delay, or defraud
the regulated entity, the Agency, the conservator, or
receiver.
``(B) Right of recovery.--To the extent a transfer is
avoided under subparagraph (A), the conservator or receiver
may recover, for the benefit of the regulated entity, the
property transferred, or, if a court so orders, the value of
such property (at the time of such transfer) from--
``(i) the initial transferee of such transfer or the
entity-affiliated party or person for whose benefit such
transfer was made; or
``(ii) any immediate or mediate transferee of any such
initial transferee.
[[Page S6058]]
``(C) Rights of transferee or obligee.--The conservator or
receiver may not recover under subparagraph (B) from--
``(i) any transferee that takes for value, including
satisfaction or securing of a present or antecedent debt, in
good faith; or
``(ii) any immediate or mediate good faith transferee of
such transferee.
``(D) Rights under this paragraph.--The rights under this
paragraph of the conservator or receiver described under
subparagraph (A) shall be superior to any rights of a trustee
or any other party (other than any party which is a Federal
agency) under title 11, United States Code.
``(16) Attachment of assets and other injunctive relief.--
Subject to paragraph (17), any court of competent
jurisdiction may, at the request of the conservator or
receiver, issue an order in accordance with rule 65 of the
Federal Rules of Civil Procedure, including an order placing
the assets of any person designated by the conservator or
receiver under the control of the court, and appointing a
trustee to hold such assets.
``(17) Standards of proof.--Rule 65 of the Federal Rules of
Civil Procedure shall apply with respect to any proceeding
under paragraph (16) without regard to the requirement of
such rule that the applicant show that the injury, loss, or
damage is irreparable and immediate.
``(18) Treatment of claims arising from breach of contracts
executed by the conservator or receiver.--
``(A) In general.--Notwithstanding any other provision of
this subsection, any final and unappealable judgment for
monetary damages entered against the conservator or receiver
for the breach of an agreement executed or approved in
writing by the conservator or receiver after the date of its
appointment, shall be paid as an administrative expense of
the conservator or receiver.
``(B) No limitation of power.--Nothing in this paragraph
shall be construed to limit the power of the conservator or
receiver to exercise any rights under contract or law,
including to terminate, breach, cancel, or otherwise
discontinue such agreement.
``(19) General exceptions.--
``(A) Limitations.--The rights of the conservator or
receiver appointed under this section shall be subject to the
limitations on the powers of a receiver under sections 402
through 407 of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (12 U.S.C. 4402 through 4407).
``(B) Mortgages held in trust.--
``(i) In general.--Any mortgage, pool of mortgages, or
interest in a pool of mortgages held in trust, custodial, or
agency capacity by a regulated entity for the benefit of any
person other than the regulated entity shall not be available
to satisfy the claims of creditors generally, except that
nothing in this clause shall be construed to expand or
otherwise affect the authority of any regulated entity.
``(ii) Holding of mortgages.--Any mortgage, pool of
mortgages, or interest in a pool of mortgages described in
clause (i) shall be held by the conservator or receiver
appointed under this section for the beneficial owners of
such mortgage, pool of mortgages, or interest in accordance
with the terms of the agreement creating such trust,
custodial, or other agency arrangement.
``(iii) Liability of conservator or receiver.--The
liability of the conservator or receiver appointed under this
section for damages shall, in the case of any contingent or
unliquidated claim relating to the mortgages held in trust,
be estimated in accordance with the regulations of the
Director.
``(c) Priority of Expenses and Unsecured Claims.--
``(1) In general.--Unsecured claims against a regulated
entity, or the receiver therefor, that are proven to the
satisfaction of the receiver shall have priority in the
following order:
``(A) Administrative expenses of the receiver.
``(B) Any other general or senior liability of the
regulated entity (which is not a liability described under
subparagraph (C) or (D).
``(C) Any obligation subordinated to general creditors
(which is not an obligation described under subparagraph
(D)).
``(D) Any obligation to shareholders or members arising as
a result of their status as shareholder or members.
``(2) Creditors similarly situated.--All creditors that are
similarly situated under paragraph (1) shall be treated in a
similar manner, except that the receiver may take any action
(including making payments) that does not comply with this
subsection, if--
``(A) the Director determines that such action is necessary
to maximize the value of the assets of the regulated entity,
to maximize the present value return from the sale or other
disposition of the assets of the regulated entity, or to
minimize the amount of any loss realized upon the sale or
other disposition of the assets of the regulated entity; and
``(B) all creditors that are similarly situated under
paragraph (1) receive not less than the amount provided in
subsection (e)(2).
``(3) Definition.--As used in this subsection, the term
`administrative expenses of the receiver' includes--
``(A) the actual, necessary costs and expenses incurred by
the receiver in preserving the assets of a failed regulated
entity or liquidating or otherwise resolving the affairs of a
failed regulated entity; and
``(B) any obligations that the receiver determines are
necessary and appropriate to facilitate the smooth and
orderly liquidation or other resolution of the regulated
entity.
``(d) Provisions Relating to Contracts Entered Into Before
Appointment of Conservator or Receiver.--
``(1) Authority to repudiate contracts.--In addition to any
other rights a conservator or receiver may have, the
conservator or receiver for any regulated entity may
disaffirm or repudiate any contract or lease--
``(A) to which such regulated entity is a party;
``(B) the performance of which the conservator or receiver,
in its sole discretion, determines to be burdensome; and
``(C) the disaffirmance or repudiation of which the
conservator or receiver determines, in its sole discretion,
will promote the orderly administration of the affairs of the
regulated entity.
``(2) Timing of repudiation.--The conservator or receiver
shall determine whether or not to exercise the rights of
repudiation under this subsection within a reasonable period
following such appointment.
``(3) Claims for damages for repudiation.--
``(A) In general.--Except as otherwise provided under
subparagraph (C) and paragraphs (4), (5), and (6), the
liability of the conservator or receiver for the
disaffirmance or repudiation of any contract pursuant to
paragraph (1) shall be--
``(i) limited to actual direct compensatory damages; and
``(ii) determined as of--
``(I) the date of the appointment of the conservator or
receiver; or
``(II) in the case of any contract or agreement referred to
in paragraph (8), the date of the disaffirmance or
repudiation of such contract or agreement.
``(B) No liability for other damages.--For purposes of
subparagraph (A), the term `actual direct compensatory
damages' shall not include--
``(i) punitive or exemplary damages;
``(ii) damages for lost profits or opportunity; or
``(iii) damages for pain and suffering.
``(C) Measure of damages for repudiation of financial
contracts.--In the case of any qualified financial contract
or agreement to which paragraph (8) applies, compensatory
damages shall be--
``(i) deemed to include normal and reasonable costs of
cover or other reasonable measures of damages utilized in the
industries for such contract and agreement claims; and
``(ii) paid in accordance with this subsection and
subsection (e), except as otherwise specifically provided in
this section.
``(4) Leases under which the regulated entity is the
lessee.--
``(A) In general.--If the conservator or receiver
disaffirms or repudiates a lease under which the regulated
entity was the lessee, the conservator or receiver shall not
be liable for any damages (other than damages determined
under subparagraph (B)) for the disaffirmance or repudiation
of such lease.
``(B) Payments of rent.--Notwithstanding subparagraph (A),
the lessor under a lease to which that subparagraph applies
shall--
``(i) be entitled to the contractual rent accruing before
the later of the date on which--
``(I) the notice of disaffirmance or repudiation is mailed;
or
``(II) the disaffirmance or repudiation becomes effective,
unless the lessor is in default or breach of the terms of the
lease;
``(ii) have no claim for damages under any acceleration
clause or other penalty provision in the lease; and
``(iii) have a claim for any unpaid rent, subject to all
appropriate offsets and defenses, due as of the date of the
appointment, which shall be paid in accordance with this
subsection and subsection (e).
``(5) Leases under which the regulated entity is the
lessor.--
``(A) In general.--If the conservator or receiver
repudiates an unexpired written lease of real property of the
regulated entity under which the regulated entity is the
lessor and the lessee is not, as of the date of such
repudiation, in default, the lessee under such lease may
either--
``(i) treat the lease as terminated by such repudiation; or
``(ii) remain in possession of the leasehold interest for
the balance of the term of the lease, unless the lessee
defaults under the terms of the lease after the date of such
repudiation.
``(B) Provisions applicable to lessee remaining in
possession.--If any lessee under a lease described under
subparagraph (A) remains in possession of a leasehold
interest under clause (ii) of subparagraph (A)--
``(i) the lessee--
``(I) shall continue to pay the contractual rent pursuant
to the terms of the lease after the date of the repudiation
of such lease; and
``(II) may offset against any rent payment which accrues
after the date of the repudiation of the lease, and any
damages which accrue after such date due to the
nonperformance of any obligation of the regulated entity
under the lease after such date; and
``(ii) the conservator or receiver shall not be liable to
the lessee for any damages arising after such date as a
result of the repudiation, other than the amount of any
offset allowed under clause (i)(II).
``(6) Contracts for the sale of real property.--
[[Page S6059]]
``(A) In general.--If the conservator or receiver
repudiates any contract for the sale of real property and the
purchaser of such real property under such contract is in
possession, and is not, as of the date of such repudiation,
in default, such purchaser may either--
``(i) treat the contract as terminated by such repudiation;
or
``(ii) remain in possession of such real property.
``(B) Provisions applicable to purchaser remaining in
possession.--If any purchaser of real property under any
contract described under subparagraph (A) remains in
possession of such property under clause (ii) of subparagraph
(A)--
``(i) the purchaser--
``(I) shall continue to make all payments due under the
contract after the date of the repudiation of the contract;
and
``(II) may offset against any such payments any damages
which accrue after such date due to the nonperformance (after
such date) of any obligation of the regulated entity under
the contract; and
``(ii) the conservator or receiver shall--
``(I) not be liable to the purchaser for any damages
arising after such date as a result of the repudiation, other
than the amount of any offset allowed under clause (i)(II);
``(II) deliver title to the purchaser in accordance with
the provisions of the contract; and
``(III) have no obligation under the contract other than
the performance required under subclause (II).
``(C) Assignment and sale allowed.--
``(i) In general.--No provision of this paragraph shall be
construed as limiting the right of the conservator or
receiver to assign the contract described under subparagraph
(A), and sell the property subject to the contract and the
provisions of this paragraph.
``(ii) No liability after assignment and sale.--If an
assignment and sale described under clause (i) is
consummated, the conservator or receiver shall have no
further liability under the contract described under
subparagraph (A), or with respect to the real property which
was the subject of such contract.
``(7) Service contracts.--
``(A) Services performed before appointment.--In the case
of any contract for services between any person and any
regulated entity for which the Agency has been appointed
conservator or receiver, any claim of such person for
services performed before the appointment of the conservator
or receiver shall be--
``(i) a claim to be paid in accordance with subsections (b)
and (e); and
``(ii) deemed to have arisen as of the date on which the
conservator or receiver was appointed.
``(B) Services performed after appointment and prior to
repudiation.--If, in the case of any contract for services
described under subparagraph (A), the conservator or receiver
accepts performance by the other person before the
conservator or receiver makes any determination to exercise
the right of repudiation of such contract under this
section--
``(i) the other party shall be paid under the terms of the
contract for the services performed; and
``(ii) the amount of such payment shall be treated as an
administrative expense of the conservatorship or
receivership.
``(C) Acceptance of performance no bar to subsequent
repudiation.--The acceptance by the conservator or receiver
of services referred to under subparagraph (B) in connection
with a contract described in such subparagraph shall not
affect the right of the conservator or receiver to repudiate
such contract under this section at any time after such
performance.
``(8) Certain qualified financial contracts.--
``(A) Rights of parties to contracts.--Subject to
paragraphs (9) and (10), and notwithstanding any other
provision of this title (other than subsection (b)(9)(B) of
this section), any other Federal law, or the law of any
State, no person shall be stayed or prohibited from
exercising--
``(i) any right of that person to cause the termination,
liquidation, or acceleration of any qualified financial
contract with a regulated entity that arises upon the
appointment of the Agency as receiver for such regulated
entity at any time after such appointment;
``(ii) any right under any security agreement or
arrangement or other credit enhancement relating to one or
more qualified financial contracts; or
``(iii) any right to offset or net out any termination
value, payment amount, or other transfer obligation arising
under or in connection with 1 or more contracts and
agreements described in clause (i), including any master
agreement for such contracts or agreements.
``(B) Applicability of other provisions.--Subsection
(b)(10) shall apply in the case of any judicial action or
proceeding brought against any receiver referred to under
subparagraph (A), or the regulated entity for which such
receiver was appointed, by any party to a contract or
agreement described under subparagraph (A)(i) with such
regulated entity.
``(C) Certain transfers not avoidable.--
``(i) In general.--Notwithstanding paragraph (11), or any
other provision of Federal or State law relating to the
avoidance of preferential or fraudulent transfers, the
Agency, whether acting as such or as conservator or receiver
of a regulated entity, may not avoid any transfer of money or
other property in connection with any qualified financial
contract with a regulated entity.
``(ii) Exception for certain transfers.--Clause (i) shall
not apply to any transfer of money or other property in
connection with any qualified financial contract with a
regulated entity if the Agency determines that the transferee
had actual intent to hinder, delay, or defraud such regulated
entity, the creditors of such regulated entity, or any
conservator or receiver appointed for such regulated entity.
``(D) Certain contracts and agreements defined.--In this
subsection the following definitions shall apply:
``(i) Qualified financial contract.--The term `qualified
financial contract' means any securities contract, commodity
contract, forward contract, repurchase agreement, swap
agreement, and any similar agreement that the Agency
determines by regulation, resolution, or order to be a
qualified financial contract for purposes of this paragraph.
``(ii) Securities contract.--The term `securities
contract'--
``(I) means a contract for the purchase, sale, or loan of a
security, a certificate of deposit, a mortgage loan, or any
interest in a mortgage loan, a group or index of securities,
certificates of deposit, or mortgage loans or interests
therein (including any interest therein or based on the value
thereof) or any option on any of the foregoing, including any
option to purchase or sell any such security, certificate of
deposit, mortgage loan, interest, group or index, or option,
and including any repurchase or reverse repurchase
transaction on any such security, certificate of deposit,
mortgage loan, interest, group or index, or option;
``(II) does not include any purchase, sale, or repurchase
obligation under a participation in a commercial mortgage
loan, unless the Agency determines by regulation, resolution,
or order to include any such agreement within the meaning of
such term;
``(III) means any option entered into on a national
securities exchange relating to foreign currencies;
``(IV) means the guarantee by or to any securities clearing
agency of any settlement of cash, securities, certificates of
deposit, mortgage loans or interests therein, group or index
of securities, certificates of deposit, or mortgage loans or
interests therein (including any interest therein or based on
the value thereof) or option on any of the foregoing,
including any option to purchase or sell any such security,
certificate of deposit, mortgage loan, interest, group or
index, or option;
``(V) means any margin loan;
``(VI) means any other agreement or transaction that is
similar to any agreement or transaction referred to in this
clause;
``(VII) means any combination of the agreements or
transactions referred to in this clause;
``(VIII) means any option to enter into any agreement or
transaction referred to in this clause;
``(IX) means a master agreement that provides for an
agreement or transaction referred to in subclause (I), (III),
(IV), (V), (VI), (VII), or (VIII), together with all
supplements to any such master agreement, without regard to
whether the master agreement provides for an agreement or
transaction that is not a securities contract under this
clause, except that the master agreement shall be considered
to be a securities contract under this clause only with
respect to each agreement or transaction under the master
agreement that is referred to in subclause (I), (III), (IV),
(V), (VI), (VII), or (VIII); and
``(X) means any security agreement or arrangement or other
credit enhancement related to any agreement or transaction
referred to in this clause, including any guarantee or
reimbursement obligation in connection with any agreement or
transaction referred to in this clause.
``(iii) Commodity contract.--The term `commodity contract'
means--
``(I) with respect to a futures commission merchant, a
contract for the purchase or sale of a commodity for future
delivery on, or subject to the rules of, a contract market or
board of trade;
``(II) with respect to a foreign futures commission
merchant, a foreign future;
``(III) with respect to a leverage transaction merchant, a
leverage transaction;
``(IV) with respect to a clearing organization, a contract
for the purchase or sale of a commodity for future delivery
on, or subject to the rules of, a contract market or board of
trade that is cleared by such clearing organization, or
commodity option traded on, or subject to the rules of, a
contract market or board of trade that is cleared by such
clearing organization;
``(V) with respect to a commodity options dealer, a
commodity option;
``(VI) any other agreement or transaction that is similar
to any agreement or transaction referred to in this clause;
``(VII) any combination of the agreements or transactions
referred to in this clause;
``(VIII) any option to enter into any agreement or
transaction referred to in this clause;
``(IX) a master agreement that provides for an agreement or
transaction referred to in subclause (I), (II), (III), (IV),
(V), (VI), (VII), or (VIII), together with all supplements to
any such master agreement, without regard
[[Page S6060]]
to whether the master agreement provides for an agreement or
transaction that is not a commodity contract under this
clause, except that the master agreement shall be considered
to be a commodity contract under this clause only with
respect to each agreement or transaction under the master
agreement that is referred to in subclause (I), (II), (III),
(IV), (V), (VI), (VII), or (VIII); or
``(X) any security agreement or arrangement or other credit
enhancement related to any agreement or transaction referred
to in this clause, including any guarantee or reimbursement
obligation in connection with any agreement or transaction
referred to in this clause.
``(iv) Forward contract.--The term `forward contract'
means--
``(I) a contract (other than a commodity contract) for the
purchase, sale, or transfer of a commodity or any similar
good, article, service, right, or interest which is presently
or in the future becomes the subject of dealing in the
forward contract trade, or product or byproduct thereof, with
a maturity date more than 2 days after the date on which the
contract is entered into, including a repurchase transaction,
reverse repurchase transaction, consignment, lease, swap,
hedge transaction, deposit, loan, option, allocated
transaction, unallocated transaction, or any other similar
agreement;
``(II) any combination of agreements or transactions
referred to in subclauses (I) and (III);
``(III) any option to enter into any agreement or
transaction referred to in subclause (I) or (II);
``(IV) a master agreement that provides for an agreement or
transaction referred to in subclauses (I), (II), or (III),
together with all supplements to any such master agreement,
without regard to whether the master agreement provides for
an agreement or transaction that is not a forward contract
under this clause, except that the master agreement shall be
considered to be a forward contract under this clause only
with respect to each agreement or transaction under the
master agreement that is referred to in subclause (I), (II),
or (III); or
``(V) any security agreement or arrangement or other credit
enhancement related to any agreement or transaction referred
to in subclause (I), (II), (III), or (IV), including any
guarantee or reimbursement obligation in connection with any
agreement or transaction referred to in any such subclause.
``(v) Repurchase agreement.--The term `repurchase
agreement' (including a reverse repurchase agreement)--
``(I) means an agreement, including related terms, which
provides for the transfer of one or more certificates of
deposit, mortgage-related securities (as such term is defined
in section 3 of the Securities Exchange Act of 1934),
mortgage loans, interests in mortgage-related securities or
mortgage loans, eligible bankers' acceptances, qualified
foreign government securities (defined for purposes of this
clause as a security that is a direct obligation of, or that
is fully guaranteed by, the central government of a member of
the Organization for Economic Cooperation and Development, as
determined by regulation or order adopted by the appropriate
Federal banking authority), or securities that are direct
obligations of, or that are fully guaranteed by, the United
States or any agency of the United States against the
transfer of funds by the transferee of such certificates of
deposit, eligible bankers' acceptances, securities, mortgage
loans, or interests with a simultaneous agreement by such
transferee to transfer to the transferor thereof certificates
of deposit, eligible bankers' acceptances, securities,
mortgage loans, or interests as described above, at a date
certain not later than 1 year after such transfers or on
demand, against the transfer of funds, or any other similar
agreement;
``(II) does not include any repurchase obligation under a
participation in a commercial mortgage loan, unless the
Agency determines by regulation, resolution, or order to
include any such participation within the meaning of such
term;
``(III) means any combination of agreements or transactions
referred to in subclauses (I) and (IV);
``(IV) means any option to enter into any agreement or
transaction referred to in subclause (I) or (III);
``(V) means a master agreement that provides for an
agreement or transaction referred to in subclause (I), (III),
or (IV), together with all supplements to any such master
agreement, without regard to whether the master agreement
provides for an agreement or transaction that is not a
repurchase agreement under this clause, except that the
master agreement shall be considered to be a repurchase
agreement under this subclause only with respect to each
agreement or transaction under the master agreement that is
referred to in subclause (I), (III), or (IV); and
``(VI) means any security agreement or arrangement or other
credit enhancement related to any agreement or transaction
referred to in subclause (I), (III), (IV), or (V), including
any guarantee or reimbursement obligation in connection with
any agreement or transaction referred to in any such
subclause.
``(vi) Swap agreement.--The term `swap agreement' means--
``(I) any agreement, including the terms and conditions
incorporated by reference in any such agreement, which is an
interest rate swap, option, future, or forward agreement,
including a rate floor, rate cap, rate collar, cross-currency
rate swap, and basis swap; a spot, same day-tomorrow,
tomorrow-next, forward, or other foreign exchange or precious
metals agreement; a currency swap, option, future, or forward
agreement; an equity index or equity swap, option, future, or
forward agreement; a debt index or debt swap, option, future,
or forward agreement; a total return, credit spread or credit
swap, option, future, or forward agreement; a commodity index
or commodity swap, option, future, or forward agreement; or a
weather swap, weather derivative, or weather option;
``(II) any agreement or transaction that is similar to any
other agreement or transaction referred to in this clause and
that is of a type that has been, is presently, or in the
future becomes, the subject of recurrent dealings in the swap
markets (including terms and conditions incorporated by
reference in such agreement) and that is a forward, swap,
future, or option on one or more rates, currencies,
commodities, equity securities or other equity instruments,
debt securities or other debt instruments, quantitative
measures associated with an occurrence, extent of an
occurrence, or contingency associated with a financial,
commercial, or economic consequence, or economic or financial
indices or measures of economic or financial risk or value;
``(III) any combination of agreements or transactions
referred to in this clause;
``(IV) any option to enter into any agreement or
transaction referred to in this clause;
``(V) a master agreement that provides for an agreement or
transaction referred to in subclause (I), (II), (III), or
(IV), together with all supplements to any such master
agreement, without regard to whether the master agreement
contains an agreement or transaction that is not a swap
agreement under this clause, except that the master agreement
shall be considered to be a swap agreement under this clause
only with respect to each agreement or transaction under the
master agreement that is referred to in subclause (I), (II),
(III), or (IV); and
``(VI) any security agreement or arrangement or other
credit enhancement related to any agreements or transactions
referred to in subclause (I), (II), (III), (IV), or (V),
including any guarantee or reimbursement obligation in
connection with any agreement or transaction referred to in
any such subclause.
``(vii) Treatment of master agreement as one agreement.--
Any master agreement for any contract or agreement described
in any preceding clause of this subparagraph (or any master
agreement for such master agreement or agreements), together
with all supplements to such master agreement, shall be
treated as a single agreement and a single qualified
financial contract. If a master agreement contains provisions
relating to agreements or transactions that are not
themselves qualified financial contracts, the master
agreement shall be deemed to be a qualified financial
contract only with respect to those transactions that are
themselves qualified financial contracts.
``(viii) Transfer.--The term `transfer' means every mode,
direct or indirect, absolute or conditional, voluntary or
involuntary, of disposing of or parting with property or with
an interest in property, including retention of title as a
security interest and foreclosure of the equity of redemption
of the regulated entity.
``(E) Certain protections in event of appointment of
conservator.--Notwithstanding any other provision of this
section, any other Federal law, or the law of any State
(other than paragraph (10) of this subsection and subsection
(b)(9)(B)), no person shall be stayed or prohibited from
exercising--
``(i) any right such person has to cause the termination,
liquidation, or acceleration of any qualified financial
contract with a regulated entity in a conservatorship based
upon a default under such financial contract which is
enforceable under applicable noninsolvency law;
``(ii) any right under any security agreement or
arrangement or other credit enhancement relating to 1 or more
such qualified financial contracts; or
``(iii) any right to offset or net out any termination
values, payment amounts, or other transfer obligations
arising under or in connection with such qualified financial
contracts.
``(F) Clarification.--No provision of law shall be
construed as limiting the right or power of the Agency, or
authorizing any court or agency to limit or delay in any
manner, the right or power of the Agency to transfer any
qualified financial contract in accordance with paragraphs
(9) and (10), or to disaffirm or repudiate any such contract
in accordance with subsection (d)(1).
``(G) Walkaway clauses not effective.--
``(i) In general.--Notwithstanding the provisions of
subparagraphs (A) and (E), and sections 403 and 404 of the
Federal Deposit Insurance Corporation Improvement Act of
1991, no walkaway clause shall be enforceable in a qualified
financial contract of a regulated entity in default.
``(ii) Walkaway clause defined.--For purposes of this
subparagraph, the term `walkaway clause' means a provision in
a qualified financial contract that, after calculation of a
value of a party's position or an amount due to or from 1 of
the parties in accordance with its terms upon termination,
liquidation, or acceleration of the qualified financial
contract, either does not create a
[[Page S6061]]
payment obligation of a party or extinguishes a payment
obligation of a party in whole or in part solely because of
the status of such party as a nondefaulting party.
``(9) Transfer of qualified financial contracts.--In making
any transfer of assets or liabilities of a regulated entity
in default which includes any qualified financial contract,
the conservator or receiver for such regulated entity shall
either--
``(A) transfer to 1 person--
``(i) all qualified financial contracts between any person
(or any affiliate of such person) and the regulated entity in
default;
``(ii) all claims of such person (or any affiliate of such
person) against such regulated entity under any such contract
(other than any claim which, under the terms of any such
contract, is subordinated to the claims of general unsecured
creditors of such regulated entity);
``(iii) all claims of such regulated entity against such
person (or any affiliate of such person) under any such
contract; and
``(iv) all property securing, or any other credit
enhancement for any contract described in clause (i), or any
claim described in clause (ii) or (iii) under any such
contract; or
``(B) transfer none of the financial contracts, claims, or
property referred to under subparagraph (A) (with respect to
such person and any affiliate of such person).
``(10) Notification of transfer.--
``(A) In general.--The conservator or receiver shall notify
any person that is a party to a contract or transfer by 5:00
p.m. (Eastern Standard Time) on the business day following
the date of the appointment of the receiver in the case of a
receivership, or the business day following such transfer in
the case of a conservatorship, if--
``(i) the conservator or receiver for a regulated entity in
default makes any transfer of the assets and liabilities of
such regulated entity; and
``(ii) such transfer includes any qualified financial
contract.
``(B) Certain rights not enforceable.--
``(i) Receivership.--A person who is a party to a qualified
financial contract with a regulated entity may not exercise
any right that such person has to terminate, liquidate, or
net such contract under paragraph (8)(A) of this subsection
or under section 403 or 404 of the Federal Deposit Insurance
Corporation Improvement Act of 1991, solely by reason of or
incidental to the appointment of a receiver for the regulated
entity (or the insolvency or financial condition of the
regulated entity for which the receiver has been appointed)--
``(I) until 5:00 p.m. (Eastern Standard Time) on the
business day following the date of the appointment of the
receiver; or
``(II) after the person has received notice that the
contract has been transferred pursuant to paragraph (9)(A).
``(ii) Conservatorship.--A person who is a party to a
qualified financial contract with a regulated entity may not
exercise any right that such person has to terminate,
liquidate, or net such contract under paragraph (8)(E) of
this subsection or under section 403 or 404 of the Federal
Deposit Insurance Corporation Improvement Act of 1991, solely
by reason of or incidental to the appointment of a
conservator for the regulated entity (or the insolvency or
financial condition of the regulated entity for which the
conservator has been appointed).
``(iii) Notice.--For purposes of this paragraph, the
conservator or receiver of a regulated entity shall be deemed
to have notified a person who is a party to a qualified
financial contract with such regulated entity, if the
conservator or receiver has taken steps reasonably calculated
to provide notice to such person by the time specified in
subparagraph (A).
``(C) Business day defined.--For purposes of this
paragraph, the term `business day' means any day other than
any Saturday, Sunday, or any day on which either the New York
Stock Exchange or the Federal Reserve Bank of New York is
closed.
``(11) Disaffirmance or repudiation of qualified financial
contracts.--In exercising the rights of disaffirmance or
repudiation of a conservator or receiver with respect to any
qualified financial contract to which a regulated entity is a
party, the conservator or receiver for such institution shall
either--
``(A) disaffirm or repudiate all qualified financial
contracts between--
``(i) any person or any affiliate of such person; and
``(ii) the regulated entity in default; or
``(B) disaffirm or repudiate none of the qualified
financial contracts referred to in subparagraph (A) (with
respect to such person or any affiliate of such person).
``(12) Certain security interests not avoidable.--No
provision of this subsection shall be construed as permitting
the avoidance of any legally enforceable or perfected
security interest in any of the assets of any regulated
entity, except where such an interest is taken in
contemplation of the insolvency of the regulated entity, or
with the intent to hinder, delay, or defraud the regulated
entity or the creditors of such regulated entity.
``(13) Authority to enforce contracts.--
``(A) In general.--Notwithstanding any provision of a
contract providing for termination, default, acceleration, or
exercise of rights upon, or solely by reason of, insolvency
or the appointment of, or the exercise of rights or powers
by, a conservator or receiver, the conservator or receiver
may enforce any contract, other than a contract for liability
insurance for a director or officer, or a contract or a
regulated entity bond, entered into by the regulated entity.
``(B) Certain rights not affected.--No provision of this
paragraph may be construed as impairing or affecting any
right of the conservator or receiver to enforce or recover
under a liability insurance contract for an officer or
director, or regulated entity bond under other applicable
law.
``(C) Consent requirement.--
``(i) In general.--Except as otherwise provided under this
section, no person may exercise any right or power to
terminate, accelerate, or declare a default under any
contract to which a regulated entity is a party, or to obtain
possession of or exercise control over any property of the
regulated entity, or affect any contractual rights of the
regulated entity, without the consent of the conservator or
receiver, as appropriate, for a period of--
``(I) 45 days after the date of appointment of a
conservator; or
``(II) 90 days after the date of appointment of a receiver.
``(ii) Exceptions.--This subparagraph shall not--
``(I) apply to a contract for liability insurance for an
officer or director;
``(II) apply to the rights of parties to certain qualified
financial contracts under subsection (d)(8); and
``(III) be construed as permitting the conservator or
receiver to fail to comply with otherwise enforceable
provisions of such contracts.
``(14) Savings clause.--The meanings of terms used in this
subsection are applicable for purposes of this subsection
only, and shall not be construed or applied so as to
challenge or affect the characterization, definition, or
treatment of any similar terms under any other statute,
regulation, or rule, including the Gramm-Leach-Bliley Act,
the Legal Certainty for Bank Products Act of 2000, the
securities laws (as that term is defined in section 3(a)(47)
of the Securities Exchange Act of 1934), and the Commodity
Exchange Act.
``(15) Exception for federal reserve and federal home loan
banks.--No provision of this subsection shall apply with
respect to--
``(A) any extension of credit from any Federal Home Loan
Bank or Federal Reserve Bank to any regulated entity; or
``(B) any security interest in the assets of the regulated
entity securing any such extension of credit.
``(e) Valuation of Claims in Default.--
``(1) In general.--Notwithstanding any other provision of
Federal law or the law of any State, and regardless of the
method which the Agency determines to utilize with respect to
a regulated entity in default or in danger of default,
including transactions authorized under subsection (i), this
subsection shall govern the rights of the creditors of such
regulated entity.
``(2) Maximum liability.--The maximum liability of the
Agency, acting as receiver or in any other capacity, to any
person having a claim against the receiver or the regulated
entity for which such receiver is appointed shall be not more
than the amount that such claimant would have received if the
Agency had liquidated the assets and liabilities of the
regulated entity without exercising the authority of the
Agency under subsection (i).
``(f) Limitation on Court Action.--Except as provided in
this section or at the request of the Director, no court may
take any action to restrain or affect the exercise of powers
or functions of the Agency as a conservator or a receiver.
``(g) Liability of Directors and Officers.--
``(1) In general.--A director or officer of a regulated
entity may be held personally liable for monetary damages in
any civil action described in paragraph (2) brought by, on
behalf of, or at the request or direction of the Agency, and
prosecuted wholly or partially for the benefit of the
Agency--
``(A) acting as conservator or receiver of such regulated
entity; or
``(B) acting based upon a suit, claim, or cause of action
purchased from, assigned by, or otherwise conveyed by such
receiver or conservator.
``(2) Actions addressed.--Paragraph (1) applies in any
civil action for gross negligence, including any similar
conduct or conduct that demonstrates a greater disregard of a
duty of care than gross negligence, including intentional
tortious conduct, as such terms are defined and determined
under applicable State law.
``(3) No limitation.--Nothing in this subsection shall
impair or affect any right of the Agency under other
applicable law.
``(h) Damages.--In any proceeding related to any claim
against a director, officer, employee, agent, attorney,
accountant, appraiser, or any other party employed by or
providing services to a regulated entity, recoverable damages
determined to result from the improvident or otherwise
improper use or investment of any assets of the regulated
entity shall include principal losses and appropriate
interest.
``(i) Limited-Life Regulated Entities.--
``(1) Organization.--
``(A) Purpose.--The Agency, as receiver appointed pursuant
to subsection (a)--
``(i) may, in the case of a Federal Home Loan Bank,
organize a limited-life regulated entity with those powers
and attributes of the Federal Home Loan Bank in default or in
danger of default as the Director determines necessary,
subject to the provisions of this
[[Page S6062]]
subsection, and the Director shall grant a temporary charter
to that limited-life regulated entity, and that limited-life
regulated entity shall operate subject to that charter; and
``(ii) shall, in the case of an enterprise, organize a
limited-life regulated entity with respect to that enterprise
in accordance with this subsection.
``(B) Authorities.--Upon the creation of a limited-life
regulated entity under subparagraph (A), the limited-life
regulated entity may--
``(i) assume such liabilities of the regulated entity that
is in default or in danger of default as the Agency may, in
its discretion, determine to be appropriate, except that the
liabilities assumed shall not exceed the amount of assets
purchased or transferred from the regulated entity to the
limited-life regulated entity;
``(ii) purchase such assets of the regulated entity that is
in default, or in danger of default as the Agency may, in its
discretion, determine to be appropriate; and
``(iii) perform any other temporary function which the
Agency may, in its discretion, prescribe in accordance with
this section.
``(2) Charter and establishment.--
``(A) Transfer of charter.--
``(i) Fannie mae.--If the Agency is appointed as receiver
for the Federal National Mortgage Association, the limited-
life regulated entity established under this subsection with
respect to such enterprise shall, by operation of law and
immediately upon its organization--
``(I) succeed to the charter of the Federal National
Mortgage Association, as set forth in the Federal National
Mortgage Association Charter Act; and
``(II) thereafter operate in accordance with, and subject
to, such charter, this Act, and any other provision of law to
which the Federal National Mortgage Association is subject,
except as otherwise provided in this subsection.
``(ii) Freddie mac.--If the Agency is appointed as receiver
for the Federal Home Loan Mortgage Corporation, the limited-
life regulated entity established under this subsection with
respect to such enterprise shall, by operation of law and
immediately upon its organization--
``(I) succeed to the charter of the Federal Home Loan
Mortgage Corporation, as set forth in the Federal Home Loan
Mortgage Corporation Charter Act; and
``(II) thereafter operate in accordance with, and subject
to, such charter, this Act, and any other provision of law to
which the Federal Home Loan Mortgage Corporation is subject,
except as otherwise provided in this subsection.
``(B) Interests in and assets and obligations of regulated
entity in default.--Notwithstanding subparagraph (A) or any
other provision of law--
``(i) a limited-life regulated entity shall assume,
acquire, or succeed to the assets or liabilities of a
regulated entity only to the extent that such assets or
liabilities are transferred by the Agency to the limited-life
regulated entity in accordance with, and subject to the
restrictions set forth in, paragraph (1)(B);
``(ii) a limited-life regulated entity shall not assume,
acquire, or succeed to any obligation that a regulated entity
for which a receiver has been appointed may have to any
shareholder of the regulated entity that arises as a result
of the status of that person as a shareholder of the
regulated entity; and
``(iii) no shareholder or creditor of a regulated entity
shall have any right or claim against the charter of the
regulated entity once the Agency has been appointed receiver
for the regulated entity and a limited-life regulated entity
succeeds to the charter pursuant to subparagraph (A).
``(C) Limited-life regulated entity treated as being in
default for certain purposes.--A limited-life regulated
entity shall be treated as a regulated entity in default at
such times and for such purposes as the Agency may, in its
discretion, determine.
``(D) Management.--Upon its establishment, a limited-life
regulated entity shall be under the management of a board of
directors consisting of not fewer than 5 nor more than 10
members appointed by the Agency.
``(E) Bylaws.--The board of directors of a limited-life
regulated entity shall adopt such bylaws as may be approved
by the Agency.
``(3) Capital stock.--
``(A) No agency requirement.--The Agency is not required to
pay capital stock into a limited-life regulated entity or to
issue any capital stock on behalf of a limited-life regulated
entity established under this subsection.
``(B) Authority.--If the Director determines that such
action is advisable, the Agency may cause capital stock or
other securities of a limited-life regulated entity
established with respect to an enterprise to be issued and
offered for sale, in such amounts and on such terms and
conditions as the Director may determine, in the discretion
of the Director.
``(4) Investments.--Funds of a limited-life regulated
entity shall be kept on hand in cash, invested in obligations
of the United States or obligations guaranteed as to
principal and interest by the United States, or deposited
with the Agency, or any Federal reserve bank.
``(5) Exempt tax status.--Notwithstanding any other
provision of Federal or State law, a limited-life regulated
entity, its franchise, property, and income shall be exempt
from all taxation now or hereafter imposed by the United
States, by any territory, dependency, or possession thereof,
or by any State, county, municipality, or local taxing
authority.
``(6) Winding up.--
``(A) In general.--Subject to subparagraphs (B) and (C),
not later than 2 years after the date of its organization,
the Agency shall wind up the affairs of a limited-life
regulated entity.
``(B) Extension.--The Director may, in the discretion of
the Director, extend the status of a limited-life regulated
entity for 3 additional 1-year periods.
``(C) Termination of status as limited-life regulated
entity.--
``(i) In general.--Upon the sale by the Agency of 80
percent or more of the capital stock of a limited-life
regulated entity, as defined in clause (iv), to 1 or more
persons (other than the Agency)--
``(I) the status of the limited-life regulated entity as
such shall terminate; and
``(II) the entity shall cease to be a limited-life
regulated entity for purposes of this subsection.
``(ii) Divestiture of remaining stock, if any.--
``(I) In general.--Not later than 1 year after the date on
which the status of a limited-life regulated entity is
terminated pursuant to clause (i), the Agency shall sell to 1
or more persons (other than the Agency) any remaining capital
stock of the former limited-life regulated entity.
``(II) Extension authorized.--The Director may extend the
period referred to in subclause (I) for not longer than an
additional 2 years, if the Director determines that such
action would be in the public interest.
``(iii) Savings clause.--Notwithstanding any provision of
law, other than clause (ii), the Agency shall not be required
to sell the capital stock of an enterprise or a limited-life
regulated entity established with respect to an enterprise.
``(iv) Applicability.--This subparagraph applies only with
respect to a limited-life regulated entity that is
established with respect to an enterprise.
``(7) Transfer of assets and liabilities.--
``(A) In general.--
``(i) Transfer of assets and liabilities.--The Agency, as
receiver, may transfer any assets and liabilities of a
regulated entity in default, or in danger of default, to the
limited-life regulated entity in accordance with and subject
to the restrictions of paragraph (1).
``(ii) Subsequent transfers.--At any time after the
establishment of a limited-life regulated entity, the Agency,
as receiver, may transfer any assets and liabilities of the
regulated entity in default, or in danger of default, as the
Agency may, in its discretion, determine to be appropriate in
accordance with and subject to the restrictions of paragraph
(1).
``(iii) Effective without approval.--The transfer of any
assets or liabilities of a regulated entity in default or in
danger of default to a limited-life regulated entity shall be
effective without any further approval under Federal or State
law, assignment, or consent with respect thereto.
``(iv) Equitable treatment of similarly situated
creditors.--The Agency shall treat all creditors of a
regulated entity in default or in danger of default that are
similarly situated under subsection (c)(1) in a similar
manner in exercising the authority of the Agency under this
subsection to transfer any assets or liabilities of the
regulated entity to the limited-life regulated entity
established with respect to such regulated entity, except
that the Agency may take actions (including making payments)
that do not comply with this clause, if--
``(I) the Director determines that such actions are
necessary to maximize the value of the assets of the
regulated entity, to maximize the present value return from
the sale or other disposition of the assets of the regulated
entity, or to minimize the amount of any loss realized upon
the sale or other disposition of the assets of the regulated
entity; and
``(II) all creditors that are similarly situated under
subsection (c)(1) receive not less than the amount provided
in subsection (e)(2).
``(v) Limitation on transfer of liabilities.--
Notwithstanding any other provision of law, the aggregate
amount of liabilities of a regulated entity that are
transferred to, or assumed by, a limited-life regulated
entity may not exceed the aggregate amount of assets of the
regulated entity that are transferred to, or purchased by,
the limited-life regulated entity.
``(8) Regulations.--The Agency may promulgate such
regulations as the Agency determines to be necessary or
appropriate to implement this subsection.
``(9) Powers of limited-life regulated entities.--
``(A) In general.--Each limited-life regulated entity
created under this subsection shall have all corporate powers
of, and be subject to the same provisions of law as, the
regulated entity in default or in danger of default to which
it relates, except that--
``(i) the Agency may--
``(I) remove the directors of a limited-life regulated
entity;
``(II) fix the compensation of members of the board of
directors and senior management, as determined by the Agency
in its discretion, of a limited-life regulated entity; and
[[Page S6063]]
``(III) indemnify the representatives for purposes of
paragraph (1)(B), and the directors, officers, employees, and
agents of a limited-life regulated entity on such terms as
the Agency determines to be appropriate; and
``(ii) the board of directors of a limited-life regulated
entity--
``(I) shall elect a chairperson who may also serve in the
position of chief executive officer, except that such person
shall not serve either as chairperson or as chief executive
officer without the prior approval of the Agency; and
``(II) may appoint a chief executive officer who is not
also the chairperson, except that such person shall not serve
as chief executive officer without the prior approval of the
Agency.
``(B) Stay of judicial action.--Any judicial action to
which a limited-life regulated entity becomes a party by
virtue of its acquisition of any assets or assumption of any
liabilities of a regulated entity in default shall be stayed
from further proceedings for a period of not longer than 45
days, at the request of the limited-life regulated entity.
Such period may be modified upon the consent of all parties.
``(10) No federal status.--
``(A) Agency status.--A limited-life regulated entity is
not an agency, establishment, or instrumentality of the
United States.
``(B) Employee status.--Representatives for purposes of
paragraph (1)(B), interim directors, directors, officers,
employees, or agents of a limited-life regulated entity are
not, solely by virtue of service in any such capacity,
officers or employees of the United States. Any employee of
the Agency or of any Federal instrumentality who serves at
the request of the Agency as a representative for purposes of
paragraph (1)(B), interim director, director, officer,
employee, or agent of a limited-life regulated entity shall
not--
``(i) solely by virtue of service in any such capacity lose
any existing status as an officer or employee of the United
States for purposes of title 5, United States Code, or any
other provision of law; or
``(ii) receive any salary or benefits for service in any
such capacity with respect to a limited-life regulated entity
in addition to such salary or benefits as are obtained
through employment with the Agency or such Federal
instrumentality.
``(11) Authority to obtain credit.--
``(A) In general.--A limited-life regulated entity may
obtain unsecured credit and issue unsecured debt.
``(B) Inability to obtain credit.--If a limited-life
regulated entity is unable to obtain unsecured credit or
issue unsecured debt, the Director may authorize the
obtaining of credit or the issuance of debt by the limited-
life regulated entity--
``(i) with priority over any or all of the obligations of
the limited-life regulated entity;
``(ii) secured by a lien on property of the limited-life
regulated entity that is not otherwise subject to a lien; or
``(iii) secured by a junior lien on property of the
limited-life regulated entity that is subject to a lien.
``(C) Limitations.--
``(i) In general.--The Director, after notice and a
hearing, may authorize the obtaining of credit or the
issuance of debt by a limited-life regulated entity that is
secured by a senior or equal lien on property of the limited-
life regulated entity that is subject to a lien (other than
mortgages that collateralize the mortgage-backed securities
issued or guaranteed by an enterprise) only if--
``(I) the limited-life regulated entity is unable to
otherwise obtain such credit or issue such debt; and
``(II) there is adequate protection of the interest of the
holder of the lien on the property with respect to which such
senior or equal lien is proposed to be granted.
``(D) Burden of proof.--In any hearing under this
subsection, the Director has the burden of proof on the issue
of adequate protection.
``(12) Affect on debts and liens.--The reversal or
modification on appeal of an authorization under this
subsection to obtain credit or issue debt, or of a grant
under this section of a priority or a lien, does not affect
the validity of any debt so issued, or any priority or lien
so granted, to an entity that extended such credit in good
faith, whether or not such entity knew of the pendency of the
appeal, unless such authorization and the issuance of such
debt, or the granting of such priority or lien, were stayed
pending appeal.
``(j) Other Agency Exemptions.--
``(1) Applicability.--The provisions of this subsection
shall apply with respect to the Agency in any case in which
the Agency is acting as a conservator or a receiver.
``(2) Taxation.--The Agency, including its franchise, its
capital, reserves, and surplus, and its income, shall be
exempt from all taxation imposed by any State, county,
municipality, or local taxing authority, except that any real
property of the Agency shall be subject to State,
territorial, county, municipal, or local taxation to the same
extent according to its value as other real property is
taxed, except that, notwithstanding the failure of any person
to challenge an assessment under State law of the value of
such property, and the tax thereon, shall be determined as of
the period for which such tax is imposed.
``(3) Property protection.--No property of the Agency shall
be subject to levy, attachment, garnishment, foreclosure, or
sale without the consent of the Agency, nor shall any
involuntary lien attach to the property of the Agency.
``(4) Penalties and fines.--The Agency shall not be liable
for any amounts in the nature of penalties or fines,
including those arising from the failure of any person to pay
any real property, personal property, probate, or recording
tax or any recording or filing fees when due.
``(k) Prohibition of Charter Revocation.--In no case may
the receiver appointed pursuant to this section revoke,
annul, or terminate the charter of an enterprise.''.
(b) Technical and Conforming Amendments.--The Federal
Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C. 4501 et seq.) is amended--
(1) in section 1368 (12 U.S.C. 4618)--
(A) by striking ``an enterprise'' each place that term
appears and inserting ``a regulated entity''; and
(B) by striking ``the enterprise'' each place that term
appears and inserting ``the regulated entity'';
(2) in section 1369C (12 U.S.C. 4622), by striking
``enterprise'' each place that term appears and inserting
``regulated entity'';
(3) in section 1369D (12 U.S.C. 4623)--
(A) by striking ``an enterprise'' each place that term
appears and inserting ``a regulated entity''; and
(B) in subsection (a)(1), by striking ``An enterprise'' and
inserting ``A regulated entity''; and
(4) by striking sections 1369, 1369A, and 1369B (12 U.S.C.
4619, 4620, and 4621).
Subtitle D--Enforcement Actions
SEC. 1151. CEASE AND DESIST PROCEEDINGS.
Section 1371 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4631) is
amended--
(1) by striking subsections (a) and (b) and inserting the
following:
``(a) Issuance for Unsafe or Unsound Practices and
Violations.--
``(1) Authority of director.--If, in the opinion of the
Director, a regulated entity or any entity-affiliated party
is engaging or has engaged, or the Director has reasonable
cause to believe that the regulated entity or any entity-
affiliated party is about to engage, in an unsafe or unsound
practice in conducting the business of the regulated entity
or the Office of Finance, or is violating or has violated, or
the Director has reasonable cause to believe is about to
violate, a law, rule, regulation, or order, or any condition
imposed in writing by the Director in connection with the
granting of any application or other request by the regulated
entity or the Office of Finance or any written agreement
entered into with the Director, the Director may issue and
serve upon the regulated entity or entity-affiliated party a
notice of charges in respect thereof.
``(2) Limitation.--The Director may not, pursuant to this
section, enforce compliance with any housing goal established
under subpart B of part 2 of subtitle A of this title, with
section 1336 of this title, with subsection (m) or (n) of
section 309 of the Federal National Mortgage Association
Charter Act (12 U.S.C. 1723a(m), (n)), with subsection (e) or
(f) of section 307 of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1456(e), (f)), or with paragraph
(5) of section 10(j) of the Federal Home Loan Bank Act (12
U.S.C. 1430(j)).
``(b) Issuance for Unsatisfactory Rating.--If a regulated
entity receives, in its most recent report of examination, a
less-than-satisfactory rating for asset quality, management,
earnings, or liquidity, the Director may (if the deficiency
is not corrected) deem the regulated entity to be engaging in
an unsafe or unsound practice for purposes of subsection
(a).'';
(2) in subsection (c)--
(A) in paragraph (1), by inserting before the period at the
end the following: ``, unless the party served with a notice
of charges shall appear at the hearing personally or by a
duly authorized representative, the party shall be deemed to
have consented to the issuance of the cease and desist
order''; and
(B) in paragraph (2)--
(i) by striking ``or director'' and inserting ``director,
or entity-affiliated party''; and
(ii) by inserting ``or entity-affiliated party'' before
``consents'';
(3) in each of subsections (c), (d), and (e)--
(A) by striking ``the enterprise'' each place that term
appears and inserting ``the regulated entity'';
(B) by striking ``an enterprise'' each place that term
appears and inserting ``a regulated entity''; and
(C) by striking ``conduct'' each place that term appears
and inserting ``practice'';
(4) in subsection (d)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``or director'' and inserting ``director,
or entity-affiliated party''; and
(ii) by inserting ``to require a regulated entity or
entity-affiliated party'' after ``includes the authority'';
(B) in paragraph (1)--
(i) by striking ``to require an executive officer or a
director to''; and
(ii) by striking ``loss'' and all that follows through
``person'' and inserting ``loss, if'';
(iii) in subparagraph (A), by inserting ``such entity or
party or finance facility'' before ``was''; and
(iv) by striking subparagraph (B) and inserting the
following:
``(B) the violation or practice involved a reckless
disregard for the law or any applicable regulations or prior
order of the Director;''; and
[[Page S6064]]
(C) in paragraph (4), by inserting ``loan or'' before
``asset'';
(5) in subsection (e), by inserting ``or entity-affiliated
party''--
(A) before ``or any executive''; and
(B) before the period at the end; and
(6) in subsection (f)--
(A) by striking ``enterprise'' and inserting ``regulated
entity, finance facility,''; and
(B) by striking ``or director'' and inserting ``director,
or entity-affiliated party''.
SEC. 1152. TEMPORARY CEASE AND DESIST PROCEEDINGS.
Section 1372 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4632) is
amended--
(1) by striking subsection (a) and inserting the following:
``(a) Grounds for Issuance.--
``(1) In general.--If the Director determines that the
actions specified in the notice of charges served upon a
regulated entity or any entity-affiliated party pursuant to
section 1371(a), or the continuation thereof, is likely to
cause insolvency or significant dissipation of assets or
earnings of that entity, or is likely to weaken the condition
of that entity prior to the completion of the proceedings
conducted pursuant to sections 1371 and 1373, the Director
may--
``(A) issue a temporary order requiring that regulated
entity or entity-affiliated party to cease and desist from
any such violation or practice; and
``(B) require that regulated entity or entity-affiliated
party to take affirmative action to prevent or remedy such
insolvency, dissipation, condition, or prejudice pending
completion of such proceedings.
``(2) Additional requirements.--An order issued under
paragraph (1) may include any requirement authorized under
subsection 1371(d).'';
(2) in subsection (b)--
(A) by striking ``or director'' and inserting ``director,
or entity-affiliated party''; and
(B) by striking ``enterprise'' each place that term appears
and inserting ``regulated entity'';
(3) in subsection (c), by striking ``enterprise'' each
place that term appears and inserting ``regulated entity'';
(4) in subsection (d)--
(A) by striking ``or director'' each place that term
appears and inserting ``director, or entity-affiliated
party''; and
(B) by striking ``An enterprise'' and inserting ``A
regulated entity''; and
(5) in subsection (e)--
(A) by striking ``request the Attorney General of the
United States to''; and
(B) by striking ``or may, under the direction and control
of the Attorney General, bring such action''.
SEC. 1153. REMOVAL AND PROHIBITION AUTHORITY.
(a) In General.--Part 1 of subtitle C of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C. 4631 et seq.) is amended--
(1) by redesignating sections 1377 through 1379B (12 U.S.C.
4637-4641) as sections 1379 through 1379D, respectively; and
(2) by inserting after section 1376 (12 U.S.C. 4636) the
following:
``SEC. 1377. REMOVAL AND PROHIBITION AUTHORITY.
``(a) Authority to Issue Order.--
``(1) In general.--The Director may serve upon a party
described in paragraph (2), or any officer, director, or
management of the Office of Finance a written notice of the
intention of the Director to suspend or remove such party
from office, or prohibit any further participation by such
party, in any manner, in the conduct of the affairs of the
regulated entity.
``(2) Applicability.--A party described in this paragraph
is an entity-affiliated party or any officer, director, or
management of the Office of Finance, if the Director
determines that--
``(A) that party, officer, or director has, directly or
indirectly--
``(i) violated--
``(I) any law or regulation;
``(II) any cease and desist order which has become final;
``(III) any condition imposed in writing by the Director in
connection with the grant of any application or other request
by such regulated entity; or
``(IV) any written agreement between such regulated entity
and the Director;
``(ii) engaged or participated in any unsafe or unsound
practice in connection with any regulated entity or business
institution; or
``(iii) committed or engaged in any act, omission, or
practice which constitutes a breach of such party's fiduciary
duty;
``(B) by reason of the violation, practice, or breach
described in subparagraph (A)--
``(i) such regulated entity or business institution has
suffered or will probably suffer financial loss or other
damage; or
``(ii) such party has received financial gain or other
benefit; and
``(C) the violation, practice, or breach described in
subparagraph (A)--
``(i) involves personal dishonesty on the part of such
party; or
``(ii) demonstrates willful or continuing disregard by such
party for the safety or soundness of such regulated entity or
business institution.
``(b) Suspension Order.--
``(1) Suspension or prohibition authority.--If the Director
serves written notice under subsection (a) upon a party
subject to that subsection (a), the Director may, by order,
suspend or remove such party from office, or prohibit such
party from further participation in any manner in the conduct
of the affairs of the regulated entity, if the Director--
``(A) determines that such action is necessary for the
protection of the regulated entity; and
``(B) serves such party with written notice of the order.
``(2) Effective period.--Any order issued under this
subsection--
``(A) shall become effective upon service; and
``(B) unless a court issues a stay of such order under
subsection (g), shall remain in effect and enforceable
until--
``(i) the date on which the Director dismisses the charges
contained in the notice served under subsection (a) with
respect to such party; or
``(ii) the effective date of an order issued under
subsection (b).
``(3) Copy of order.--If the Director issues an order under
subsection (b) to any party, the Director shall serve a copy
of such order on any regulated entity with which such party
is affiliated at the time such order is issued.
``(c) Notice, Hearing, and Order.--
``(1) Notice.--A notice under subsection (a) of the
intention of the Director to issue an order under this
section shall contain a statement of the facts constituting
grounds for such action, and shall fix a time and place at
which a hearing will be held on such action.
``(2) Timing of hearing.--A hearing shall be fixed for a
date not earlier than 30 days, nor later than 60 days, after
the date of service of notice under subsection (a), unless an
earlier or a later date is set by the Director at the request
of--
``(A) the party receiving such notice, and good cause is
shown; or
``(B) the Attorney General of the United States.
``(3) Consent.--Unless the party that is the subject of a
notice delivered under subsection (a) appears at the hearing
in person or by a duly authorized representative, such party
shall be deemed to have consented to the issuance of an order
under this section.
``(4) Issuance of order of suspension.--The Director may
issue an order under this section, as the Director may deem
appropriate, if--
``(A) a party is deemed to have consented to the issuance
of an order under paragraph (3); or
``(B) upon the record made at the hearing, the Director
finds that any of the grounds specified in the notice have
been established.
``(5) Effectiveness of order.--Any order issued under
paragraph (4) shall become effective at the expiration of 30
days after the date of service upon the relevant regulated
entity and party (except in the case of an order issued upon
consent under paragraph (3), which shall become effective at
the time specified therein). Such order shall remain
effective and enforceable except to such extent as it is
stayed, modified, terminated, or set aside by action of the
Director or a reviewing court.
``(d) Prohibition of Certain Specific Activities.--Any
person subject to an order issued under this section shall
not--
``(1) participate in any manner in the conduct of the
affairs of any regulated entity or the Office of Finance;
``(2) solicit, procure, transfer, attempt to transfer,
vote, or attempt to vote any proxy, consent, or authorization
with respect to any voting rights in any regulated entity;
``(3) violate any voting agreement previously approved by
the Director; or
``(4) vote for a director, or serve or act as an entity-
affiliated party of a regulated entity or as an officer or
director of the Office of Finance.
``(e) Industry-Wide Prohibition.--
``(1) In general.--Except as provided in paragraph (2), any
person who, pursuant to an order issued under this section,
has been removed or suspended from office in a regulated
entity or the Office of Finance, or prohibited from
participating in the conduct of the affairs of a regulated
entity or the Office of Finance, may not, while such order is
in effect, continue or commence to hold any office in, or
participate in any manner in the conduct of the affairs of,
any regulated entity or the Office of Finance.
``(2) Exception if director provides written consent.--If,
on or after the date on which an order is issued under this
section which removes or suspends from office any party, or
prohibits such party from participating in the conduct of the
affairs of a regulated entity or the Office of Finance, such
party receives the written consent of the Director, the order
shall, to the extent of such consent, cease to apply to such
party with respect to the regulated entity or such Office of
Finance described in the written consent. Any such consent
shall be publicly disclosed.
``(3) Violation of paragraph (1) treated as violation of
order.--Any violation of paragraph (1) by any person who is
subject to an order issued under subsection (h) shall be
treated as a violation of the order.
``(f) Applicability.--This section shall only apply to a
person who is an individual, unless the Director specifically
finds that it should apply to a corporation, firm, or other
business entity.
``(g) Stay of Suspension and Prohibition of Entity-
Affiliated Party.--Not later than 10 days after the date on
which any entity-affiliated party has been suspended from
office or prohibited from participation in the conduct of the
affairs of a regulated entity
[[Page S6065]]
under this section, such party may apply to the United States
District Court for the District of Columbia, or the United
States district court for the judicial district in which the
headquarters of the regulated entity is located, for a stay
of such suspension or prohibition pending the completion of
the administrative proceedings pursuant to subsection (c).
The court shall have jurisdiction to stay such suspension or
prohibition.
``(h) Suspension or Removal of Entity-Affiliated Party
Charged With Felony.--
``(1) Suspension or prohibition.--
``(A) In general.--Whenever any entity-affiliated party is
charged in any information, indictment, or complaint, with
the commission of or participation in a crime involving
dishonesty or breach of trust which is punishable by
imprisonment for a term exceeding 1 year under Federal or
State law, the Director may, if continued service or
participation by such party may pose a threat to the
regulated entity or impair public confidence in the regulated
entity, by written notice served upon such party, suspend
such party from office or prohibit such party from further
participation in any manner in the conduct of the affairs of
any regulated entity.
``(B) Provisions applicable to notice.--
``(i) Copy.--A copy of any notice under subparagraph (A)
shall be served upon the relevant regulated entity.
``(ii) Effective period.--A suspension or prohibition under
subparagraph (A) shall remain in effect until the
information, indictment, or complaint referred to in
subparagraph (A) is finally disposed of, or until terminated
by the Director.
``(2) Removal or prohibition.--
``(A) In general.--If a judgment of conviction or an
agreement to enter a pretrial diversion or other similar
program is entered against an entity-affiliated party in
connection with a crime described in paragraph (1)(A), at
such time as such judgment is not subject to further
appellate review, the Director may, if continued service or
participation by such party may pose a threat to the
regulated entity or impair public confidence in the regulated
entity, issue and serve upon such party an order removing
such party from office or prohibiting such party from further
participation in any manner in the conduct of the affairs of
the regulated entity without the prior written consent of the
Director.
``(B) Provisions applicable to order.--
``(i) Copy.--A copy of any order under subparagraph (A)
shall be served upon the relevant regulated entity, at which
time the entity-affiliated party who is subject to the order
(if a director or an officer) shall cease to be a director or
officer of such regulated entity.
``(ii) Effect of acquittal.--A finding of not guilty or
other disposition of the charge shall not preclude the
Director from instituting proceedings after such finding or
disposition to remove a party from office or to prohibit
further participation in the affairs of a regulated entity
pursuant to subsection (a) or (b).
``(iii) Effective period.--Unless terminated by the
Director, any notice of suspension or order of removal issued
under this subsection shall remain effective and outstanding
until the completion of any hearing or appeal authorized
under paragraph (4).
``(3) Authority of remaining board members.--
``(A) In general.--If at any time, because of the
suspension of 1 or more directors pursuant to this section,
there shall be on the board of directors of a regulated
entity less than a quorum of directors not so suspended, all
powers and functions vested in or exercisable by such board
shall vest in and be exercisable by the director or directors
on the board not so suspended, until such time as there shall
be a quorum of the board of directors.
``(B) Appointment of temporary directors.--If all of the
directors of a regulated entity are suspended pursuant to
this section, the Director shall appoint persons to serve
temporarily as directors pending the termination of such
suspensions, or until such time as those who have been
suspended cease to be directors of the regulated entity and
their respective successors take office.
``(4) Hearing regarding continued participation.--
``(A) In general.--Not later than 30 days after the date of
service of any notice of suspension or order of removal
issued pursuant to paragraph (1) or (2), the entity-
affiliated party may request in writing an opportunity to
appear before the Director to show that the continued service
or participation in the conduct of the affairs of the
regulated entity by such party does not, or is not likely to,
pose a threat to the interests of the regulated entity, or
threaten to impair public confidence in the regulated entity.
``(B) Timing and form of hearing.--Upon receipt of a
request for a hearing under subparagraph (A), the Director
shall fix a time (not later than 30 days after the date of
receipt of such request, unless extended at the request of
such party) and place at which the entity-affiliated party
may appear, personally or through counsel, before the
Director or 1 or more designated employees of the Director to
submit written materials (or, at the discretion of the
Director, oral testimony) and oral argument.
``(C) Determination.--Not later than 60 days after the date
of a hearing under subparagraph (B), the Director shall
notify the entity-affiliated party whether the suspension or
prohibition from participation in any manner in the conduct
of the affairs of the regulated entity will be continued,
terminated, or otherwise modified, or whether the order
removing such party from office or prohibiting such party
from further participation in any manner in the conduct of
the affairs of the regulated entity will be rescinded or
otherwise modified. Such notification shall contain a
statement of the basis for any adverse decision of the
Director.
``(5) Rules.--The Director is authorized to prescribe such
rules as may be necessary to carry out this subsection.''.
(b) Conforming Amendments.--
(1) Safety and soundness act.--Subtitle C of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C. 4501 et seq.) is amended--
(A) in section 1317(f), by striking ``section 1379B'' and
inserting ``section 1379D'';
(B) in section 1373(a)--
(i) in paragraph (1), by striking ``or 1376(c)'' and
inserting ``, 1376(c), or 1377'';
(ii) in paragraph (2), by inserting ``or 1377''
after''1371''; and
(iii) in paragraph (4), by inserting ``or removal or
prohibition'' after ``cease and desist''; and
(C) in section 1374(a)--
(i) by striking ``or 1376'' and inserting ``1313B , 1376,
or 1377''; and
(ii) by striking ``such section'' and inserting ``this
title''.
(2) Fannie mae charter act.--Section 308(b) of the Federal
National Mortgage Association Charter Act (12 U.S.C. 1723(b))
is amended in the second sentence, by striking ``The'' and
inserting ``Except to the extent that action under section
1377 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 temporarily results in a lesser number,
the''.
(3) Freddie mac charter act.--Section 303(a)(2)(A) of the
Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1452(a)(2)(A)) is amended, in the second sentence, by
striking ``The'' and inserting ``Except to the extent action
under section 1377 of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 temporarily
results in a lesser number, the''.
SEC. 1154. ENFORCEMENT AND JURISDICTION.
Section 1375 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4635) is
amended--
(1) by striking subsection (a) and inserting the following
new subsection:
``(a) Enforcement.--The Director may, in the discretion of
the Director, apply to the United States District Court for
the District of Columbia, or the United States district court
within the jurisdiction of which the headquarters of the
regulated entity is located, for the enforcement of any
effective and outstanding notice or order issued under this
subtitle or subtitle B, or request that the Attorney General
of the United States bring such an action. Such court shall
have jurisdiction and power to order and require compliance
with such notice or order.''; and
(2) in subsection (b), by striking ``or 1376'' and
inserting ``1313B, 1376, or 1377''.
SEC. 1155. CIVIL MONEY PENALTIES.
Section 1376 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4636) is
amended--
(1) by striking subsection (a) and inserting the following:
``(a) In General.--The Director may impose a civil money
penalty in accordance with this section on any regulated
entity or any entity-affiliated party. The Director shall not
impose a civil penalty in accordance with this section on any
regulated entity or any entity-affiliated party for any
violation that is addressed under section 1345(a).'';
(2) by striking subsection (b) and inserting the following:
``(b) Amount of Penalty.--
``(1) First tier.--A regulated entity or entity-affiliated
party shall forfeit and pay a civil penalty of not more than
$10,000 for each day during which a violation continues, if
such regulated entity or party--
``(A) violates any provision of this title, the authorizing
statutes, or any order, condition, rule, or regulation under
this title or any authorizing statute;
``(B) violates any final or temporary order or notice
issued pursuant to this title;
``(C) violates any condition imposed in writing by the
Director in connection with the grant of any application or
other request by such regulated entity; or
``(D) violates any written agreement between the regulated
entity and the Director.
``(2) Second tier.--Notwithstanding paragraph (1), a
regulated entity or entity-affiliated party shall forfeit and
pay a civil penalty of not more than $50,000 for each day
during which a violation, practice, or breach continues, if--
``(A) the regulated entity or entity-affiliated party,
respectively--
``(i) commits any violation described in any subparagraph
of paragraph (1);
``(ii) recklessly engages in an unsafe or unsound practice
in conducting the affairs of the regulated entity; or
``(iii) breaches any fiduciary duty; and
``(B) the violation, practice, or breach--
``(i) is part of a pattern of misconduct;
``(ii) causes or is likely to cause more than a minimal
loss to the regulated entity; or
``(iii) results in pecuniary gain or other benefit to such
party.
``(3) Third tier.--Notwithstanding paragraphs (1) and (2),
any regulated entity or entity-affiliated party shall forfeit
and pay a civil penalty in an amount not to exceed the
[[Page S6066]]
applicable maximum amount determined under paragraph (4) for
each day during which such violation, practice, or breach
continues, if such regulated entity or entity-affiliated
party--
``(A) knowingly--
``(i) commits any violation described in any subparagraph
of paragraph (1);
``(ii) engages in any unsafe or unsound practice in
conducting the affairs of the regulated entity; or
``(iii) breaches any fiduciary duty; and
``(B) knowingly or recklessly causes a substantial loss to
the regulated entity or a substantial pecuniary gain or other
benefit to such party by reason of such violation, practice,
or breach.
``(4) Maximum amounts of penalties for any violation
described in paragraph (3).--The maximum daily amount of any
civil penalty which may be assessed pursuant to paragraph (3)
for any violation, practice, or breach described in paragraph
(3) is--
``(A) in the case of any entity-affiliated party, an amount
not to exceed $2,000,000; and
``(B) in the case of any regulated entity, $2,000,000.'';
(3) in subsection (c)--
(A) by striking ``enterprise'' each place that term appears
and inserting ``regulated entity'';
(B) by inserting ``or entity-affiliated party'' before ``in
writing''; and
(C) by inserting ``or entity-affiliated party'' before
``has been given'';
(4) in subsection (d)--
(A) by striking ``or director'' each place such term
appears and inserting ``director, or entity-affiliated
party'';
(B) by striking ``an enterprise'' and inserting ``a
regulated entity'';
(C) by striking ``the enterprise'' and inserting ``the
regulated entity'';
(D) by striking ``request the Attorney General of the
United States to'';
(E) by inserting ``, or the United States district court
within the jurisdiction of which the headquarters of the
regulated entity is located,'' after ``District of
Columbia'';
(F) by striking ``, or may, under the direction and control
of the Attorney General of the United States, bring such an
action''; and
(G) by striking ``and section 1374''; and
(5) in subsection (g), by striking ``An enterprise'' and
inserting ``A regulated entity''.
SEC. 1156. CRIMINAL PENALTY.
(a) In General.--Subtitle C of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4631 et seq.) is amended by inserting after section
1377, as added by this Act, the following:
``SEC. 1378. CRIMINAL PENALTY.
``Whoever, being subject to an order in effect under
section 1377, without the prior written approval of the
Director, knowingly participates, directly or indirectly, in
any manner (including by engaging in an activity specifically
prohibited in such an order) in the conduct of the affairs of
any regulated entity shall, notwithstanding section 3571 of
title 18, be fined not more than $1,000,000, imprisoned for
not more than 5 years, or both.''.
(b) Technical and Conforming Amendments.--The Federal
Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C. 4501 et seq.) is amended--
(1) in section 1379 (as so designated by this Act)--
(A) by striking ``an enterprise'' and inserting ``a
regulated entity''; and
(B) by striking ``the enterprise'' and inserting ``the
regulated entity'';
(2) in section 1379A (as so designated by this Act), by
striking ``an enterprise'' and inserting ``a regulated
entity'';
(3) in section 1379B(c) (as so designated by this Act), by
striking ``enterprise'' and inserting ``regulated entity'';
and
(4) in section 1379D (as so designated by this Act), by
striking ``enterprise'' and inserting ``regulated entity''.
SEC. 1157. NOTICE AFTER SEPARATION FROM SERVICE.
Section 1379 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4637), as so
designated by this Act, is amended--
(1) by striking ``2-year'' and inserting ``6-year'';
(2) by striking ``a director or executive officer of an
enterprise'' and inserting ``an entity-affiliated party'';
(3) by striking ``director or officer'' each place that
term appears and inserting ``entity-affiliated party''; and
(4) by striking ``enterprise.'' and inserting ``regulated
entity.''.
SEC. 1158. SUBPOENA AUTHORITY.
(a) In General.--Section 1379B of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4641) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``administrative'';
(ii) by inserting ``, examination, or investigation'' after
``proceeding'';
(iii) by striking ``subtitle'' and inserting ``title''; and
(iv) by inserting ``or any designated representative
thereof, including any person designated to conduct any
hearing under this subtitle'' after ``Director''; and
(B) in paragraph (4), by striking ``issued by the
Director'';
(2) in subsection (b), by inserting ``or in any territory
or other place subject to the jurisdiction of the United
States'' after ``State'';
(3) by striking subsection (c) and inserting the following:
``(c) Enforcement.--
``(1) In general.--The Director, or any party to
proceedings under this subtitle, may apply to the United
States District Court for the District of Columbia, or the
United States district court for the judicial district of the
United States in any territory in which such proceeding is
being conducted, or where the witness resides or carries on
business, for enforcement of any subpoena or subpoena duces
tecum issued pursuant to this section.
``(2) Power of court.--The courts described under paragraph
(1) shall have the jurisdiction and power to order and
require compliance with any subpoena issued under paragraph
(1).'';
(4) in subsection (d), by inserting ``enterprise-affiliated
party'' before ``may allow''; and
(5) by adding at the end the following:
``(e) Penalties.--A person shall be guilty of a
misdemeanor, and upon conviction, shall be subject to a fine
of not more than $1,000 or to imprisonment for a term of not
more than 1 year, or both, if that person willfully fails or
refuses, in disobedience of a subpoena issued under
subsection (c), to--
``(1) attend court;
``(2) testify in court;
``(3) answer any lawful inquiry; or
``(4) produce books, papers, correspondence, contracts,
agreements, or such other records as requested in the
subpoena.''.
Subtitle E--General Provisions
SEC. 1161. CONFORMING AND TECHNICAL AMENDMENTS.
(a) Amendments to 1992 Act.--The Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4501 et seq.), as amended by this Act, is amended--
(1) in section 1315 (12 U.S.C. 4515)--
(A) in subsection (a)--
(i) by striking ``(a) Office Personnel.--The'' and
inserting ``(a) In General.--Subject to title III of the
Federal Housing Finance Regulatory Reform Act of 2008, the'';
and
(ii) by striking ``the Office'' each place that term
appears and inserting ``the Agency'';
(B) in subsection (c), by striking ``the Office'' and
inserting ``the Agency'';
(C) in subsection (e), by striking ``the Office'' and
inserting ``the Agency'';
(D) by striking subsection (d) and redesignating subsection
(e) as subsection (d); and
(E) by striking subsection (f);
(2) in section 1319A (12 U.S.C. 4520)--
(A) by striking ``(a) In General.--''; and
(B) by striking subsection (b);
(3) in section 1364(c) (12 U.S.C. 4614(c)), by striking the
last sentence;
(4) by striking section 1383 (12 U.S.C. 1451 note);
(5) in each of sections 1319D, 1319E, and 1319F (12 U.S.C.
4523, 4524, 4525) by striking ``the Office'' each place that
term appears and inserting ``the Agency''; and
(6) in each of sections 1319B and 1369(a)(3) (12 U.S.C.
4521, 4619(a)(3)), by striking ``Committee on Banking,
Finance and Urban Affairs'' each place such term appears and
inserting ``Committee on Financial Services''.
(b) Amendments to Fannie Mae Charter Act.--The Federal
National Mortgage Association Charter Act (12 U.S.C. 1716 et
seq.) is amended--
(1) in each of sections 303(c)(2) (12 U.S.C. 1718(c)(2)),
309(d)(3)(B) (12 U.S.C. 1723a(d)(3)(B)), and 309(k)(1) (12
U.S.C. 1723a(k)(1)), by striking ``Director of the Office of
Federal Housing Enterprise Oversight of the Department of
Housing and Urban Development'' each place that term appears,
and inserting ``Director of the Federal Housing Finance
Agency''; and
(2) in section 309--
(A) in subsection (m) (12 U.S.C. 1723a(m))--
(i) in paragraph (1), by striking ``to the Secretary, in a
form determined by the Secretary'' and inserting ``to the
Director of the Federal Housing Finance Agency, in a form
determined by the Director''; and
(ii) in paragraph (2), by striking ``to the Secretary, in a
form determined by the Secretary'' and inserting ``to the
Director of the Federal Housing Finance Agency, in a form
determined by the Director'';
(B) in subsection (n) (12 U.S.C. 1723a(n))--
(i) in paragraph (1), by striking ``and the Secretary'' and
inserting ``and the Director of the Federal Housing Finance
Agency''; and
(ii) in paragraph (2), by striking ``Secretary'' each place
that term appears and inserting ``Director of the Federal
Housing Finance Agency''; and
(C) in paragraph (3)(B), by striking ``Secretary'' and
inserting ``Director of the Federal Housing Finance Agency''.
(c) Amendments to Freddie Mac Charter Act.--The Federal
Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.)
is amended--
(1) in each of sections 303(b)(2) (12 U.S.C. 1452(b)(2)),
303(h)(2) (12 U.S.C. 1452(h)(2)), and section 307(c)(1) (12
U.S.C. 1456(c)(1)), by striking ``Director of the Office of
Federal Housing Enterprise Oversight of the Department of
Housing and Urban Development'' each place that term appears,
and inserting ``Director of the Federal Housing Finance
Agency'';
(2) in section 306 (12 U.S.C. 1455)--
(A) in subsection (c)(2), by inserting ``the'' after
``Secretary of'';
[[Page S6067]]
(B) in subsection (i)--
(i) by striking ``section 1316(c)'' and inserting ``section
306(c)''; and
(ii) by striking ``section 106'' and inserting ``section
1316''; and
(C) in subsection (j)(2), by striking ``of substantially''
and inserting ``or substantially''; and
(3) in section 307 (12 U.S.C. 1456)--
(A) in subsection (e)--
(i) in paragraph (1), by striking ``to the Secretary, in a
form determined by the Secretary'' and inserting ``to the
Director of the Federal Housing Finance Agency, in a form
determined by the Director''; and
(ii) in paragraph (2), by striking ``to the Secretary, in a
form determined by the Secretary'' and inserting ``to the
Director of the Federal Housing Finance Agency, in a form
determined by the Director''; and
(B) in subsection (f)--
(i) in paragraph (1), by striking ``and the Secretary'' and
inserting ``and the Director of the Federal Housing Finance
Agency'';
(ii) in paragraph (2), by striking ``the Secretary'' each
place that term appears and inserting ``the Director of the
Federal Housing Finance Agency''; and
(iii) in paragraph (3)(B), by striking ``Secretary'' and
inserting ``Director of the Federal Housing Finance Agency''.
(d) Amendment to Title 18, United States Code.--Section
1905 of title 18, United States Code, is amended by striking
``Office of Federal Housing Enterprise Oversight'' and
inserting ``Federal Housing Finance Agency''.
(e) Amendments to Flood Disaster Protection Act of 1973.--
Section 102(f)(3)(A) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a(f)(3)(A)) is amended by striking
``Director of the Office of Federal Housing Enterprise
Oversight of the Department of Housing and Urban
Development'' and inserting ``Director of the Federal Housing
Finance Agency''.
(f) Amendment to Department of Housing and Urban
Development Act.--Section 5 of the Department of Housing and
Urban Development Act (42 U.S.C. 3534) is amended by striking
subsection (d).
(g) Amendments to Title 5, United States Code.--Title 5,
United States Code, is amended--
(1) in section 5313, by striking the item relating to the
Director of the Office of Federal Housing Enterprise
Oversight, Department of Housing and Urban Development and
inserting the following new item:
``Director of the Federal Housing Finance Agency.''; and
(2) in section 3132(a)(1)--
(A) in subparagraph (B), by striking ``,, and'' and
inserting ``, and'';
(B) in subparagraph (D)--
(i) by striking ``the Federal Housing Finance Board'';
(ii) by striking ``the Office of Federal Housing Enterprise
Oversight of the Department of Housing and Urban
Development'' and inserting ``the Federal Housing Finance
Agency''; and
(iii) by striking ``or or'' at the end;
(C) in subparagraph (E), as added by section
8(d)(1)(B)(iii) of Public Law 107-123, by adding ``or'' at
the end; and
(D) by redesignating subparagraph (E), as added by section
10702(c)(1)(C) of Public Law 107-171, as subparagraph (F).
(h) Amendment to Sarbanes-Oxley Act.--Section
105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act of 2002 (15
U.S.C. 7215(b)(5)(B)(ii)(II)) is amended by inserting ``and
the Director of the Federal Housing Finance Agency,'' after
``Commission,''.
(i) Amendment to Federal Deposit Insurance Act.--Section
11(t)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1821(t)(2)(A)) is amended by adding at the end the following:
``(vii) Federal Housing Finance Agency.''.
SEC. 1162. PRESIDENTIALLY-APPOINTED DIRECTORS OF ENTERPRISES.
(a) Fannie Mae.--
(1) In general.--Section 308(b) of the Federal National
Mortgage Association Charter Act (12 U.S.C. 1723(b)) is
amended--
(A) in the first sentence, by striking ``eighteen persons,
five of whom shall be appointed annually by the President of
the United States, and the remainder of whom'' and inserting
``13 persons, or such other number that the Director
determines appropriate, who'';
(B) in the second sentence, by striking ``appointed by the
President'';
(C) in the third sentence--
(i) by striking ``appointed or''; and
(ii) by striking ``, except that any such appointed member
may be removed from office by the President for good cause'';
(D) in the fourth sentence, by striking ``elective''; and
(E) by striking the fifth sentence.
(2) Transitional provision.--The amendments made by
paragraph (1) shall not apply to any appointed position of
the board of directors of the Federal National Mortgage
Association until the expiration of the annual term for such
position during which the effective date under section 1163
occurs.
(b) Freddie Mac.--
(1) In general.--Section 303(a)(2) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1452(a)(2)) is amended--
(A) in subparagraph (A)--
(i) in the first sentence, by striking ``18 persons, 5 of
whom shall be appointed annually by the President of the
United States and the remainder of whom'' and inserting ``13
persons, or such other number as the Director determines
appropriate, who''; and
(ii) in the second sentence, by striking ``appointed by the
President of the United States'';
(B) in subparagraph (B)--
(i) by striking ``such or''; and
(ii) by striking ``, except that any appointed member may
be removed from office by the President for good cause''; and
(C) in subparagraph (C)--
(i) by striking the first sentence; and
(ii) by striking ``elective''.
(2) Transitional provision.--The amendments made by
paragraph (1) shall not apply to any appointed position of
the board of directors of the Federal Home Loan Mortgage
Corporation until the expiration of the annual term for such
position during which the effective date under section 1163
occurs.
SEC. 1163. EFFECTIVE DATE.
Except as otherwise specifically provided in this title,
this title and the amendments made by this title shall take
effect on, and shall apply beginning on, the date of
enactment of this Act.
TITLE II--FEDERAL HOME LOAN BANKS
SEC. 1201. RECOGNITION OF DISTINCTIONS BETWEEN THE
ENTERPRISES AND THE FEDERAL HOME LOAN BANKS.
Section 1313 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4513) is amended
by adding at the end the following:
``(f) Recognition of Distinctions Between the Enterprises
and the Federal Home Loan Banks.--Prior to promulgating any
regulation or taking any other formal or informal agency
action of general applicability relating to the Federal Home
Loan Banks, including the issuance of an advisory document or
examination guidance, the Director shall consider the
differences between the Federal Home Loan Banks and the
enterprises with respect to--
``(1) the Banks'--
``(A) cooperative ownership structure;
``(B) the mission of providing liquidity to members;
``(C) affordable housing and community development mission;
``(D) capital structure; and
``(E) joint and several liability; and
``(2) any other differences that the Director considers
appropriate.''.
SEC. 1202. DIRECTORS.
Section 7 of the Federal Home Loan Bank Act (12 U.S.C.
1427) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Number; Election; Qualifications; Conflicts of
Interest.--
``(1) In general.--Subject to paragraphs (2) through (4),
the management of each Federal Home Loan Bank shall be vested
in a board of 13 directors, or such other number as the
Director determines appropriate.
``(2) Board makeup.--The board of directors of each Bank
shall be comprised of--
``(A) member directors, who shall comprise at least the
majority of the members of the board of directors; and
``(B) independent directors, who shall comprise not fewer
than \2/5\ of the members of the board of directors.
``(3) Selection criteria.--
``(A) In general.--Each member of the board of directors
shall be--
``(i) elected by plurality vote of the members, in
accordance with procedures established under this section;
and
``(ii) a citizen of the United States.
``(B) Independent director criteria.--
``(i) In general.--Each independent director that is not a
public interest director under clause (ii) shall have
demonstrated knowledge of, or experience in, financial
management, auditing and accounting, risk management
practices, derivatives, project development, or
organizational management, or such other knowledge or
expertise as the Director may provide by regulation.
``(ii) Public interest.--Not fewer than 2 of the
independent directors shall have more than 4 years of
experience in representing consumer or community interests on
banking services, credit needs, housing, or financial
consumer protections.
``(iii) Conflicts of interest.--No independent director
may, during the term of service on the board of directors,
serve as an officer of any Federal Home Loan Bank or as a
director, officer, or employee of any member of a Bank, or of
any person that receives advances from a Bank.
``(4) Definitions.--For purposes of this section, the
following definitions shall apply:
``(A) Independent director.--The terms `independent
director' and `independent directorship' mean a member of the
board of directors of a Federal Home Loan Bank who is a bona
fide resident of the district in which the Federal Home Loan
Bank is located, or the directorship held by such a person,
respectively.
``(B) Member director.--The terms `member director' and
`member directorship' mean a member of the board of directors
of a Federal Home Loan Bank who is an officer or director of
a member institution that is located in the district in which
the Federal Home Loan Bank is located, or the directorship
held by such a person, respectively.'';
(2) by striking ``elective'' each place that term appears,
other than in subsections (d), (e), and (f), and inserting
``member'';
(3) in subsection (b)--
(A) by striking the subsection heading and all that follows
through ``Each elective directorship'' and inserting the
following:
``(b) Directorships.--
``(1) Member directorships.--Each member directorship'';
and
(B) by adding at the end the following:
[[Page S6068]]
``(2) Independent directorships.--
``(A) Elections.--Each independent director--
``(i) shall be elected by the members entitled to vote,
from among eligible persons nominated, after consultation
with the Advisory Council of the Bank, by the board of
directors of the Bank; and
``(ii) shall be elected by a plurality of the votes of the
members of the Bank at large, with each member having the
number of votes for each such directorship as it has under
paragraph (1) in an election to fill member directorships.
``(B) Criteria.--Nominees shall meet all applicable
requirements prescribed in this section.
``(C) Nomination and election procedures.--Procedures for
nomination and election of independent directors shall be
prescribed by the bylaws of each Federal Home Loan Bank, in a
manner consistent with the rules and regulations of the
Agency.'';
(4) in subsection (c)--
(A) by striking ``elective'' each place that term appears
and inserting ``member'', except--
(i) in the second sentence, the second place that term
appears; and
(ii) each place that term appears in the fifth sentence;
and
(B) in the second sentence--
(i) by inserting ``(A) except as provided in clause (B) of
this sentence,'' before ``if at any time''; and
(ii) by inserting before the period at the end the
following: ``, and (B) clause (A) of this sentence shall not
apply to the directorships of any Federal Home Loan Bank
resulting from the merger of any 2 or more such Banks'';
(5) in subsection (d)--
(A) in the first sentence--
(i) by striking ``, whether elected or appointed,''; and
(ii) by striking ``3 years'' and inserting ``4 years'';
(B) in the second sentence--
(i) by striking ``Federal Home Loan Bank System
Modernization Act of 1999'' and inserting ``Federal Housing
Finance Regulatory Reform Act of 2008'';
(ii) by striking ``\1/3\'' and inserting ``\1/4\''; and
(iii) by striking ``or appointed''; and
(C) in the third sentence--
(i) by striking ``an elective'' each place that term
appears and inserting ``a''; and
(ii) by striking ``in any elective directorship or elective
directorships'';
(6) in subsection (f)--
(A) by striking paragraph (2);
(B) by striking ``appointed or'' each place that term
appears; and
(C) in paragraph (3)--
(i) by striking ``(3) Elected bank directors.--'' and
inserting ``(2) Election process.--''; and
(ii) by striking ``elective'' each place that term appears;
(7) in subsection (i)--
(A) in paragraph (1), by striking ``Subject to paragraph
(2), each'' and inserting ``Each''; and
(B) by striking paragraph (2) and inserting the following:
``(2) Annual report.--The Director shall include, in the
annual report submitted to the Congress pursuant to section
1319B of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992, information regarding the compensation
and expenses paid by the Federal Home Loan Banks to the
directors on the boards of directors of the Banks.''; and
(8) by adding at the end the following:
``(l) Transition Rule.--Any member of the board of
directors of a Bank elected or appointed in accordance with
this section prior to the date of enactment of this
subsection may continue to serve as a member of that board of
directors for the remainder of the existing term of
service.''.
SEC. 1203. DEFINITIONS.
Section 2 of the Federal Home Loan Bank Act (12 U.S.C.
1422) is amended--
(1) by striking paragraphs (1), (10), and (11);
(2) by redesignating paragraphs (2) through (9) as
paragraphs (1) through (8), respectively;
(3) by redesignating paragraphs (12) and (13) as paragraphs
(9) and (10), respectively; and
(4) by adding at the end the following:
``(11) Director.--The term `Director' means the Director of
the Federal Housing Finance Agency.
``(12) Agency.--The term `Agency' means the Federal Housing
Finance Agency, established under section 1311 of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992.''.
SEC. 1204. AGENCY OVERSIGHT OF FEDERAL HOME LOAN BANKS.
The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.),
other than in provisions of that Act added or amended
otherwise by this Act, is amended--
(1) by striking sections 2A and 2B (12 U.S.C. 1422a,
1422b);
(2) by striking section 18 (12 U.S.C. 1438) and inserting
the following:
``SEC. 18. ADMINISTRATIVE PROVISIONS.
``(a) Acquisition Authority.--The Director of the Office of
Thrift Supervision, utilizing the services of the
Administrator of General Services (hereinafter referred to as
the `Administrator'), and subject to any limitation hereon
which may hereafter be imposed in appropriation Acts, is
hereby authorized--
``(1) to acquire, in the name of the United States, real
property in the District of Columbia, for the purposes set
forth in this section;
``(2) to construct, develop, furnish, and equip such
buildings thereon and such facilities as in its judgment may
be appropriate to provide, to such extent as the Director of
the Office of Thrift Supervision may deem advisable, suitable
and adequate quarters and facilities for the Director of the
Office of Thrift Supervision and the agencies under its
administration or supervision;
``(3) to enlarge, remodel, or reconstruct any of the same;
and
``(4) to make or enter into contracts for any of the
foregoing.
``(b) Advances.--The Director of the Office of Thrift
Supervision may require of the respective banks, and they
shall make to the Director of the Office of Thrift
Supervision, such advances of funds for the purposes set out
in subsection (a) as in the sole judgment of the Director of
the Office of Thrift Supervision may from time to time be
advisable. Such advances shall be apportioned by the Director
of the Office of Thrift Supervision among the banks in
proportion to the total assets of the respective banks,
determined in such manner and as of such times as the
Director of the Office of Thrift Supervision may prescribe.
Each such advance shall bear interest at the rate of 4 \1/2\
per centum per annum from the date of the advance and shall
be repaid by the Director of the Office of Thrift Supervision
in such installments and over such period, not longer than
twenty-five years from the making of the advance, as the
Director of the Office of Thrift Supervision may determine.
Payments of interest and principal upon such advances shall
be made from receipts of the Director of the Office of Thrift
Supervision or from other sources which may from time to time
be available to the Director of the Office of Thrift
Supervision. The obligation of the Director of the Office of
Thrift Supervision to make any such payment shall not be
regarded as an obligation of the United States. To such
extent as the Director of the Office of Thrift Supervision
may prescribe any such obligation shall be regarded as a
legal investment for the purposes of subsections (g) and (h)
of section 11 and for the purposes of section 16.
``(c) Plans and Designs.--The plans and designs for such
buildings and facilities and for any such enlargement,
remodeling, or reconstruction shall, to such extent as the
chairperson of the Director of the Office of Thrift
Supervision may request, be subject to the approval of the
Director.
``(d) Custody, Management and Control.--Upon the making of
arrangements mutually agreeable to the Director of the Office
of Thrift Supervision and the Administrator, which
arrangements may be modified from time to time by mutual
agreement between them and may include but shall not be
limited to the making of payments by the Director of the
Office of Thrift Supervision and such agencies to the
Administrator and by the Administrator to the Director of the
Office of Thrift Supervision, the custody, management, and
control of such buildings and facilities and of such real
property shall be vested in the Administrator in accordance
therewith. Until the making of such arrangements, such
custody, management, and control, including the assignment
and allotment and the reassignment and reallotment of
building and other space, shall be vested in the Director of
the Office of Thrift Supervision.
``(e) Proceeds.--Any proceeds (including advances) received
by the Director of the Office of Thrift Supervision in
connection with this subsection, and any proceeds from the
sale or other disposition of real or other property acquired
by the Director of the Office of Thrift Supervision under
this section, shall be considered as receipts of the Director
of the Office of Thrift Supervision, and obligations and
expenditures of the Director of the Office of Thrift
Supervision and such agencies in connection with this section
shall not be considered as administrative expenses. As used
in this section, the term `property' shall include interests
in property.
``(f) Budget Program.--
``(1) In general.--With respect to its functions under this
section, the Director of the Office of Thrift Supervision
shall--
``(A) annually prepare and submit a budget program as
provided in title I of the Government Corporation Control Act
with regard to wholly owned Government corporations, and for
purposes of this paragraph, the terms `wholly owned
Government corporations' and `Government corporations',
wherever used in such title, shall include the Director of
the Office of Thrift Supervision; and
``(B) maintain an integral set of accounts which shall be
audited by the General Accounting Office in accordance with
the principles and procedures applicable to commercial
corporate transactions, as provided in such title, and no
other settlement or adjustment shall be required with respect
to transactions under this section or with respect to claims,
demands, or accounts by or against any person arising
thereunder.
``(2) Miscellaneous provisions.--The first budget program
shall be for the first full fiscal year beginning on or after
the date of enactment of this subsection. Except as otherwise
provided in this section or by the Director of the Office of
Thrift Supervision, the provisions of this section and the
functions thereby or thereunder subsisting shall be
applicable and exercisable notwithstanding and without regard
to the Act of June 20, 1938 (D.C. Code, secs. 5-413--5-428),
except that the proviso of section 16 thereof shall apply
[[Page S6069]]
to any building constructed under this section, and section
306 of the Act of July 30, 1947 (61 Stat. 584), or any other
provision of law relating to the construction, alteration,
repair, or furnishing of public or other buildings or
structures or the obtaining of sites therefor, but any person
or body in whom any such function is vested may provide for
delegation or redelegation of the exercise of such function.
``(g) Limitation.--No obligation shall be incurred and no
expenditure, except in liquidation of obligation, shall be
made pursuant to paragraphs (1) and (2) of subsection (a), if
the total amount of all obligations incurred pursuant thereto
would thereupon exceed $13,200,000, or such greater amount as
may be provided in an appropriations Act or other law.''.
(3) in section 11 (12 U.S.C. 1431)--
(A) in subsection (b)--
(i) in the first sentence--
(I) by striking ``The Board'' and inserting ``The Office of
Finance, as agent for the Banks,''; and
(II) by striking ``the Board'' and inserting ``such
Office''; and
(ii) in the second and fourth sentences, by striking ``the
Board'' each place such term appears and inserting ``the
Office of Finance'';
(B) in subsection (c)--
(i) by striking ``the Board'' the first place such term
appears and inserting ``the Office of Finance, as agent for
the Banks,''; and
(ii) by striking ``the Board'' the second place such term
appears and inserting ``such Office''; and
(C) in subsection (f)--
(i) by striking the 2 commas after ``permit'' and inserting
``or''; and
(ii) by striking the comma after ``require'';
(4) in section 6 (12 U.S.C. 1426)--
(A) in subsection (b)(1), in the matter preceding
subparagraph (A), by striking ``Finance Board approval'' and
inserting ``approval by the Director''; and
(B) in each of subsections (c)(4)(B) and (d)(2), by
striking ``Finance Board regulations'' each place that term
appears and inserting ``regulations of the Director'';
(5) in section 10(b) (12 U.S.C. 1430(b))--
(A) in the subsection heading, by striking ``Formal Board
Resolution'' and inserting ``Approval of Director''; and
(B) by striking ``by formal resolution'';
(6) in section 21(b)(5) (12 U.S.C. 1441(b)(5)), by striking
``Chairperson of the Federal Housing Finance Board'' and
inserting ``Director'';
(7) in section 15 (12 U.S.C. 1435), by inserting ``or the
Director'' after ``the Board'';
(8) by striking ``the Board'' each place that term appears
and inserting ``the Director'';
(9) by striking ``The Board'' each place that term appears
and inserting ``The Director'';
(10) by striking ``the Finance Board'' each place that term
appears and inserting ``the Director'';
(11) by striking ``The Finance Board'' each place that term
appears and inserting ``The Director''; and
(12) by striking ``Federal Housing Finance Board'' each
place that term appears and inserting ``Director''.
SEC. 1205. HOUSING GOALS.
The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is
amended by inserting after section 10b the following new
section:
``SEC. 10C. HOUSING GOALS.
``(a) In General.--The Director shall establish housing
goals with respect to the purchase of mortgages, if any, by
the Federal Home Loan Banks. Such goals shall be consistent
with the goals established under sections 1331 through 1334
of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992.
``(b) Considerations.--In establishing the goals required
by subsection (a), the Director shall consider the unique
mission and ownership structure of the Federal Home Loan
Banks.
``(c) Transition Period.--To facilitate an orderly
transition, the Director shall establish interim target goals
for purposes of this section for each of the 2 calendar years
following the date of enactment of this section.
``(d) Monitoring and Enforcement of Goals.--The
requirements of section 1336 of the Federal Housing
Enterprises Safety and Soundness Act of 1992, shall apply to
this section, in the same manner and to the same extent as
that section applies to the Federal housing enterprises.
``(e) Annual Report.--The Director shall annually report to
Congress on the performance of the Banks in meeting the goals
established under this section.''.
SEC. 1206. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS.
Section 4(a)(1) of the Federal Home Loan Bank Act (12
U.S.C. 1424(a)(1)) is amended--
(1) by inserting after ``savings bank,'' the following:
``community development financial institution,''; and
(2) in subparagraph (B), by inserting after ``United
States,'' the following: ``or, in the case of a community
development financial institution, is certified as a
community development financial institution under the
Community Development Banking and Financial Institutions Act
of 1994.''.
SEC. 1207. SHARING OF INFORMATION AMONG FEDERAL HOME LOAN
BANKS.
The Federal Home Loan Bank Act is amended by inserting
after section 20 (12 U.S.C. 1440) the following new section:
``SEC. 20A. SHARING OF INFORMATION AMONG FEDERAL HOME LOAN
BANKS.
``(a) Information on Financial Condition.--In order to
enable each Federal Home Loan Bank to evaluate the financial
condition of one or more of the other Federal Home Loan Banks
individually and the Federal Home Loan Bank System (including
any risks associated with the issuance or repayment of
consolidated Federal Home Loan Bank bonds and debentures or
other borrowings and the joint and several liabilities of the
Banks incurred due to such borrowings), as well as to comply
with any of its obligations under the Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.), the Director shall make
available to the Banks such reports, records, or other
information as may be available, relating to the condition of
any Federal Home Loan Bank.
``(b) Sharing of Information.--
``(1) In general.--The Director shall promulgate
regulations to facilitate the sharing of information made
available under subsection (a) directly among the Federal
Home Loan Banks.
``(2) Limitation.--Notwithstanding paragraph (1), a Federal
Home Loan Bank responding to a request from another Bank or
from the Director for information pursuant to this section
may request that the Director determine that such information
is proprietary and that the public interest requires that
such information not be shared.
``(c) Limitation.--Nothing in this section shall affect the
obligations of any Federal Home Loan Bank under the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) or
the regulations issued by the Securities and Exchange
Commission thereunder.''.
SEC. 1208. EXCLUSION FROM CERTAIN REQUIREMENTS.
(a) In General.--The Federal Home Loan Banks shall be
exempt from compliance with--
(1) sections 13(e), 14(a), and 14(c) of the Securities
Exchange Act of 1934, and related Commission regulations;
(2) section 15 of the Securities Exchange Act of 1934, and
related Commission regulations, with respect to transactions
in the capital stock of a Federal Home Loan Bank;
(3) section 17A of the Securities Exchange Act of 1934, and
related Commission regulations, with respect to the transfer
of the securities of a Federal Home Loan Bank; and
(4) the Trust Indenture Act of 1939.
(b) Member Exemption.--The members of the Federal Home Loan
Bank System shall be exempt from compliance with sections
13(d), 13(f), 13(g), 14(d), and 16 of the Securities Exchange
Act of 1934, and related Commission regulations, with respect
to ownership of or transactions in the capital stock of the
Federal Home Loan Banks by such members.
(c) Exempted and Government Securities.--
(1) Capital stock.--The capital stock issued by each of the
Federal Home Loan Banks under section 6 of the Federal Home
Loan Bank Act are--
(A) exempted securities, within the meaning of section
3(a)(2) of the Securities Act of 1933; and
(B) exempted securities, within the meaning of section
3(a)(12)(A) of the Securities Exchange Act of 1934, except to
the extent provided in section 38 of that Act.
(2) Other obligations.--The debentures, bonds, and other
obligations issued under section 11 of the Federal Home Loan
Bank Act (12 U.S.C. 1431) are--
(A) exempted securities, within the meaning of section
3(a)(2) of the Securities Act of 1933;
(B) government securities, within the meaning of section
3(a)(42) of the Securities Exchange Act of 1934; and
(C) government securities, within the meaning of section
2(a)(16) of the Investment Company Act of 1940.
(3) Brokers and dealers.--A person (other than a Federal
Home Loan Bank effecting transactions for members of the
Federal Home Loan Bank System) that effects transactions in
the capital stock or other obligations of a Federal Home Loan
Bank, for the account of others or for that person's own
account, as applicable, is a broker or dealer, as those terms
are defined in paragraphs (4) and (5), respectively, of
section 3(a) of the Securities Exchange Act of 1934, but is
excluded from the definition of--
(A) the term ``government securities broker'' under section
3(a)(43) of the Securities Exchange Act of 1934; and
(B) the term ``government securities dealer'' under section
3(a)(44) of the Securities Exchange Act of 1934.
(d) Exemption From Reporting Requirements.--The Federal
Home Loan Banks shall be exempt from periodic reporting
requirements under the securities laws pertaining to the
disclosure of--
(1) related party transactions that occur in the ordinary
course of the business of the Banks with members; and
(2) the unregistered sales of equity securities.
(e) Tender Offers.--Commission rules relating to tender
offers shall not apply in connection with transactions in the
capital stock of the Federal Home Loan Banks.
(f) Regulations.--
(1) In general.--The Commission shall promulgate such rules
and regulations as may be necessary or appropriate in the
public interest or in furtherance of this section and the
exemptions provided in this section.
(2) Considerations.--In issuing regulations under this
section, the Commission shall consider the distinctive
characteristics of
[[Page S6070]]
the Federal Home Loan Banks when evaluating--
(A) the accounting treatment with respect to the payment to
the Resolution Funding Corporation;
(B) the role of the combined financial statements of the
Federal Home Loan Banks;
(C) the accounting classification of redeemable capital
stock; and
(D) the accounting treatment related to the joint and
several nature of the obligations of the Banks.
(g) Definitions.--As used in this section--
(1) the terms ``Bank'', ``Federal Home Loan Bank'',
``member'', and ``Federal Home Loan Bank System'' have the
same meanings as in section 2 of the Federal Home Loan Bank
Act (12 U.S.C. 1422);
(2) the term ``Commission'' means the Securities and
Exchange Commission; and
(3) the term ``securities laws'' has the same meaning as in
section 3(a)(47) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)(47)).
SEC. 1209. VOLUNTARY MERGERS.
Section 26 of the Federal Home Loan Bank Act (12 U.S.C.
1446) is amended--
(1) by striking ``Whenever'' and inserting ``(a) In
General.--Whenever''; and
(2) by adding at the end the following:
``(b) Voluntary Mergers Authorized.--
``(1) In general.--Any Federal Home Loan Bank may, with the
approval of the Director and of the boards of directors of
the Banks involved, merge with another Bank.
``(2) Regulations required.--The Director shall promulgate
regulations establishing the conditions and procedures for
the consideration and approval of any voluntary merger
described in paragraph (1), including the procedures for Bank
member approval.''.
SEC. 1210. AUTHORITY TO REDUCE DISTRICTS.
Section 3 of the Federal Home Loan Bank Act (12 U.S.C.
1423) is amended--
(1) by striking ``As soon'' and inserting ``(a) In
General.--As soon''; and
(2) by adding at the end the following:
``(b) Authority to Reduce Districts.--Notwithstanding
subsection (a), the number of districts may be reduced to a
number less than 8--
``(1) pursuant to a voluntary merger between Banks, as
approved pursuant to section 26(b); or
``(2) pursuant to a decision by the Director to liquidate a
Bank pursuant to section 1367 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992.''.
SEC. 1211. COMMUNITY FINANCIAL INSTITUTION MEMBERS.
(a) Total Asset Requirement.--Paragraph (10) of section 2
of the Federal Home Loan Bank Act (12 U.S.C. 1422(10)), as so
redesignated by section 201(3) of this Act, is amended by
striking ``$500,000,000'' each place such term appears and
inserting ``$1,000,000,000''.
(b) Use of Advances for Community Development Activities.--
Section 10(a) of the Federal Home Loan Bank Act (12 U.S.C.
1430(a)) is amended--
(1) in paragraph (2)(B)--
(A) by striking ``and''; and
(B) by inserting ``, and community development activities''
before the period at the end;
(2) in paragraph (3)(E), by inserting ``or community
development activities'' after ``agriculture,''; and
(3) in paragraph (6)--
(A) by striking ``and''; and
(B) by inserting ``, and `community development activities'
'' before ``shall''.
SEC. 1212. PUBLIC USE DATA BASE; REPORTS TO CONGRESS.
Section 10 of the Federal Home Loan Bank Act (12 U.S.C.
1430) is amended--
(1) in subsection (j)(12)--
(A) by striking subparagraph (C) and inserting the
following:
``(C) Reports.--The Director shall annually report to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives on the collateral pledged to the Banks,
including an analysis of collateral by type and by Bank
district.''; and
(B) by adding at the end the following:
``(D) Submission to congress.--The Director shall submit
the reports under subparagraphs (A) and (C) to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives, not later than 180 days after the date of
enactment of the Federal Housing Finance Regulatory Reform
Act of 2008.''; and
(2) by adding at the end the following:
``(k) Public Use Database.--
``(1) Data.--Each Federal Home Loan Bank shall provide to
the Director, in a form determined by the Director, census
tract level data relating to mortgages purchased, if any,
including--
``(A) data consistent with that reported under section 1323
of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992;
``(B) data elements required to be reported under the Home
Mortgage Disclosure Act of 1975; and
``(C) any other data elements that the Director considers
appropriate.
``(2) Public use database.--
``(A) In general.--The Director shall make available to the
public, in a form that is useful to the public (including
forms accessible electronically), and to the extent
practicable, the data provided to the Director under
paragraph (1).
``(B) Proprietary information.--Not withstanding
subparagraph (A), the Director may not provide public access
to, or disclose to the public, any information required to be
submitted under this subsection that the Director determines
is proprietary or that would provide personally identifiable
information and that is not otherwise publicly accessible
through other forms, unless the Director determines that it
is in the public interest to provide such information.''.
SEC. 1213. SEMIANNUAL REPORTS.
Section 21B of the Federal Home Loan Bank Act is amended in
subsection (f)(2)(C), by adding at the end the following:
``(v) Semiannual reports.--The Director shall report
semiannually to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives on the projected date for the
completion of contributions required by this section.''.
SEC. 1214. LIQUIDATION OR REORGANIZATION OF A FEDERAL HOME
LOAN BANK.
Section 26 of the Federal Home Loan Bank Act (12 U.S.C.
1446) is amended by adding at the end the following: ``At
least 30 days prior to liquidating or reorganizing any Bank
under this section, the Director shall notify the Bank of its
determination and the facts and circumstances upon which such
determination is based. The Bank may contest that
determination in a hearing before the Director, in which all
issues shall be determined on the record pursuant to section
554 of title 5, United States Code.''.
SEC. 1215. STUDY AND REPORT TO CONGRESS ON SECURITIZATION OF
ACQUIRED MEMBER ASSETS.
(a) Study.--The Director shall conduct a study on
securitization of home mortgage loans purchased or to be
purchased from member financial institutions under the
Acquired Member Assets programs. In conducting the study, the
Director shall establish a process for the formal submission
of comments.
(b) Elements.--The study shall encompass--
(1) the benefits and risks associated with securitization
of Acquired Member Assets;
(2) the potential impact of securitization upon liquidity
in the mortgage and broader credit markets;
(3) the ability of the Federal Home Loan Bank or Banks in
question to manage the risks associated with such a program;
(4) the impact of such a program on the existing activities
of the Banks, including their mortgage portfolios and
advances; and
(5) the joint and several liability of the Banks and the
cooperative structure of the Federal Home Loan Bank System.
(c) Consultations.--In conducting the study under this
section, the Director shall consult with the Federal Home
Loan Banks, the Banks' fiscal agent, representatives of the
mortgage lending industry, practitioners in the structured
finance field, and other experts as needed.
(d) Report.--Not later than 1 year after the date of
enactment of this Act, the Director shall submit a report to
Congress on the results of the study conducted under
subsection (a), including policy recommendations based on the
analysis of the Director of the feasibility of mortgage-
backed securities issuance by a Federal Home Loan Bank or
Banks and the risks and benefits associated with such program
or programs.
(e) Definitions.--As used in this section, the terms
``member'', ``Bank'', and ``Federal Home Loan Bank'' have the
same meanings as in section 2 of the Federal Home Loan Bank
Act (12 U.S.C. 1422).
SEC. 1216. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Right to Financial Privacy Act of 1978.--Section
1113(o) of the Right to Financial Privacy Act of 1978 (12
U.S.C. 3413(o)) is amended--
(1) by striking ``Federal Housing Finance Board'' and
inserting ``Federal Housing Finance Agency''; and
(2) by striking ``Federal Housing Finance Board's'' and
inserting ``Federal Housing Finance Agency's''.
(b) Riegle Community Development and Regulatory Improvement
Act of 1994.--Section 117(e) of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C.
4716(e)) is amended by striking ``Federal Housing Finance
Board'' and inserting ``Federal Housing Finance Agency''.
(c) Title 18, United States Code.--Title 18, United States
Code, is amended by striking ``Federal Housing Finance
Board'' each place such term appears in each of sections 212,
657, 1006, and 1014, and inserting ``Federal Housing Finance
Agency''.
(d) MAHRA Act of 1997.--Section 517(b)(4) of the
Multifamily Assisted Housing Reform and Affordability Act of
1997 (42 U.S.C. 1437f note) is amended by striking ``Federal
Housing Finance Board'' and inserting ``Federal Housing
Finance Agency''.
(e) Title 44, United States Code.--Section 3502(5) of title
44, United States Code, is amended by striking ``Federal
Housing Finance Board'' and inserting ``Federal Housing
Finance Agency''.
(f) Access to Local TV Act of 2000.--Section
1004(d)(2)(D)(iii) of the Launching Our Communities' Access
to Local Television Act of 2000 (47 U.S.C.
1103(d)(2)(D)(iii)) is amended by striking ``Office of
Federal Housing Enterprise Oversight, the Federal Housing
Finance Board'' and inserting ``Federal Housing Finance
Agency''.
[[Page S6071]]
(g) FIRREA.--Section 1216 of the Financial Institutions
Reform, Recovery, and Enhancement Act of 1989 (12 U.S.C.
1833e) is amended--
(1) in subsection (a), by striking paragraph (3) and
inserting the following:
``(3) the Federal Housing Finance Agency;'';
(2) in subsection (b), by striking ``Federal National
Mortgage Association'' and inserting ``Federal Home Loan
Banks, the Federal National Mortgage Association,''; and
(3) in subsection (c), by striking ``Finance Board'' and
inserting ``Finance Agency''.
SEC. 1217. STUDY ON FEDERAL HOME LOAN BANK ADVANCES.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Director shall conduct a study and
submit a report to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House or Representatives on the extent to
which loans and securities used as collateral to support
Federal Home Loan Bank advances are consistent with the
interagency guidance on nontraditional mortgage products.
(b) Required Content.--The study required under subsection
(a) shall--
(1) consider and recommend any additional regulations,
guidance, advisory bulletins, or other administrative actions
necessary to ensure that the Federal Home Loan Banks are not
supporting loans with predatory characteristics; and
(2) include an opportunity for the public to comment on any
recommendations made under paragraph (1).
SEC. 1218. FEDERAL HOME LOAN BANK REFINANCING AUTHORITY FOR
CERTAIN RESIDENTIAL MORTGAGE LOANS.
Section 10(j)(2) of the Federal Home Loan Bank Act (12
U.S.C. 1430(j)(2)) is amended--
(1) in subparagraph (A), by striking ``or'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(C) during the 2-year period beginning on the date of
enactment of this subparagraph, refinance loans that are
secured by a first mortgage on a primary residence of any
family having an income at or below 80 percent of the median
income for the area.''.
TITLE III--TRANSFER OF FUNCTIONS, PERSONNEL, AND PROPERTY OF OFHEO AND
THE FEDERAL HOUSING FINANCE BOARD
Subtitle A--OFHEO
SEC. 1301. ABOLISHMENT OF OFHEO.
(a) In General.--Effective at the end of the 1-year period
beginning on the date of enactment of this Act, the Office of
Federal Housing Enterprise Oversight of the Department of
Housing and Urban Development and the positions of the
Director and Deputy Director of such Office are abolished.
(b) Disposition of Affairs.--During the 1-year period
beginning on the date of enactment of this Act, the Director
of the Office of Federal Housing Enterprise Oversight, solely
for the purpose of winding up the affairs of the Office of
Federal Housing Enterprise Oversight--
(1) shall manage the employees of such Office and provide
for the payment of the compensation and benefits of any such
employee which accrue before the effective date of the
transfer of such employee under section 1303; and
(2) may take any other action necessary for the purpose of
winding up the affairs of the Office.
(c) Status of Employees Before Transfer.--The amendments
made by title I and the abolishment of the Office of Federal
Housing Enterprise Oversight under subsection (a) of this
section may not be construed to affect the status of any
employee of such Office as an employee of an agency of the
United States for purposes of any other provision of law
before the effective date of the transfer of any such
employee under section 1303.
(d) Use of Property and Services.--
(1) Property.--The Director may use the property of the
Office of Federal Housing Enterprise Oversight to perform
functions which have been transferred to the Director for
such time as is reasonable to facilitate the orderly transfer
of functions transferred under any other provision of this
Act or any amendment made by this Act to any other provision
of law.
(2) Agency services.--Any agency, department, or other
instrumentality of the United States, and any successor to
any such agency, department, or instrumentality, which was
providing supporting services to the Office of Federal
Housing Enterprise Oversight before the expiration of the
period under subsection (a) in connection with functions that
are transferred to the Director shall--
(A) continue to provide such services, on a reimbursable
basis, until the transfer of such functions is complete; and
(B) consult with any such agency to coordinate and
facilitate a prompt and reasonable transition.
(e) Continuation of Services.--The Director may use the
services of employees and other personnel of the Office of
Federal Housing Enterprise Oversight, on a reimbursable
basis, to perform functions which have been transferred to
the Director for such time as is reasonable to facilitate the
orderly transfer of functions pursuant to any other provision
of this Act or any amendment made by this Act to any other
provision of law.
(f) Savings Provisions.--
(1) Existing rights, duties, and obligations not
affected.--Subsection (a) shall not affect the validity of
any right, duty, or obligation of the United States, the
Director of the Office of Federal Housing Enterprise
Oversight, or any other person, which--
(A) arises under--
(i) the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992;
(ii) the Federal National Mortgage Association Charter Act;
(iii) the Federal Home Loan Mortgage Corporation Act; or
(iv) any other provision of law applicable with respect to
such Office; and
(B) existed on the day before the date of abolishment under
subsection (a).
(2) Continuation of suits.--No action or other proceeding
commenced by or against the Director of the Office of Federal
Housing Enterprise Oversight in connection with functions
that are transferred to the Director of the Federal Housing
Finance Agency shall abate by reason of the enactment of this
Act, except that the Director of the Federal Housing Finance
Agency shall be substituted for the Director of the Office of
Federal Housing Enterprise Oversight as a party to any such
action or proceeding.
SEC. 1302. CONTINUATION AND COORDINATION OF CERTAIN ACTIONS.
(a) In General.--All regulations, orders, and
determinations described in subsection (b) shall remain in
effect according to the terms of such regulations, orders,
and determinations, and shall be enforceable by or against
the Director or the Secretary of Housing and Urban
Development, as the case may be, until modified, terminated,
set aside, or superseded in accordance with applicable law by
the Director or the Secretary, as the case may be, any court
of competent jurisdiction, or operation of law.
(b) Applicability.--A regulation, order, or determination
is described in this subsection if it--
(1) was issued, made, prescribed, or allowed to become
effective by--
(A) the Office of Federal Housing Enterprise Oversight;
(B) the Secretary of Housing and Urban Development, and
relates to the authority of the Secretary under--
(i) the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992;
(ii) the Federal National Mortgage Association Charter Act,
with respect to the Federal National Mortgage Association; or
(iii) the Federal Home Loan Mortgage Corporation Act, with
respect to the Federal Home Loan Mortgage Corporation; or
(C) a court of competent jurisdiction, and relates to
functions transferred by this Act; and
(2) is in effect on the effective date of the abolishment
under section 1301(a).
SEC. 1303. TRANSFER AND RIGHTS OF EMPLOYEES OF OFHEO.
(a) Transfer.--Each employee of the Office of Federal
Housing Enterprise Oversight shall be transferred to the
Agency for employment, not later than the effective date of
the abolishment under section 1301(a), and such transfer
shall be deemed a transfer of function for purposes of
section 3503 of title 5, United States Code.
(b) Guaranteed Positions.--
(1) In general.--Each employee transferred under subsection
(a) shall be guaranteed a position with the same status,
tenure, grade, and pay as that held on the day immediately
preceding the transfer.
(2) No involuntary separation or reduction.--An employee
transferred under subsection (a) holding a permanent position
on the day immediately preceding the transfer may not be
involuntarily separated or reduced in grade or compensation
during the 12-month period beginning on the date of transfer,
except for cause, or, in the case of a temporary employee,
separated in accordance with the terms of the appointment of
the employee.
(c) Appointment Authority for Excepted and Senior Executive
Service Employees.--
(1) In general.--In the case of an employee occupying a
position in the excepted service or the Senior Executive
Service, any appointment authority established under law or
by regulations of the Office of Personnel Management for
filling such position shall be transferred, subject to
paragraph (2).
(2) Decline of transfer.--The Director may decline a
transfer of authority under paragraph (1) to the extent that
such authority relates to--
(A) a position excepted from the competitive service
because of its confidential, policymaking, policy-
determining, or policy-advocating character; or
(B) a noncareer position in the Senior Executive Service
(within the meaning of section 3132(a)(7) of title 5, United
States Code).
(d) Reorganization.--If the Director determines, after the
end of the 1-year period beginning on the effective date of
the abolishment under section 1301(a), that a reorganization
of the combined workforce is required, that reorganization
shall be deemed a major reorganization for purposes of
affording affected employee retirement under section
8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code.
(e) Employee Benefit Programs.--
(1) In general.--Any employee of the Office of Federal
Housing Enterprise Oversight accepting employment with the
Agency as a result of a transfer under subsection (a) may
retain, for 12 months after the date on which such transfer
occurs, membership in any employee benefit program of the
Agency or the
[[Page S6072]]
Office of Federal Housing Enterprise Oversight of the
Department of Housing and Urban Development, as applicable,
including insurance, to which such employee belongs on the
date of the abolishment under section 1301(a), if--
(A) the employee does not elect to give up the benefit or
membership in the program; and
(B) the benefit or program is continued by the Director of
the Federal Housing Finance Agency.
(2) Cost differential.--
(A) In general.--The difference in the costs between the
benefits which would have been provided by the Office of
Federal Housing Enterprise Oversight and those provided by
this section shall be paid by the Director.
(B) Health insurance.--If any employee elects to give up
membership in a health insurance program or the health
insurance program is not continued by the Director, the
employee shall be permitted to select an alternate Federal
health insurance program not later than 30 days after the
date of such election or notice, without regard to any other
regularly scheduled open season.
SEC. 1304. TRANSFER OF PROPERTY AND FACILITIES.
Upon the effective date of its abolishment under section
1301(a), all property of the Office of Federal Housing
Enterprise Oversight shall transfer to the Agency.
Subtitle B--Federal Housing Finance Board
SEC. 1311. ABOLISHMENT OF THE FEDERAL HOUSING FINANCE BOARD.
(a) In General.--Effective at the end of the 1-year period
beginning on the date of enactment of this Act, the Federal
Housing Finance Board (in this subtitle referred to as the
``Board'') is abolished.
(b) Disposition of Affairs.--During the 1-year period
beginning on the date of enactment of this Act, the Board,
solely for the purpose of winding up the affairs of the
Board--
(1) shall manage the employees of the Board and provide for
the payment of the compensation and benefits of any such
employee which accrue before the effective date of the
transfer of such employee under section 1313; and
(2) may take any other action necessary for the purpose of
winding up the affairs of the Board.
(c) Status of Employees Before Transfer.--The amendments
made by titles I and II and the abolishment of the Board
under subsection (a) may not be construed to affect the
status of any employee of the Board as an employee of an
agency of the United States for purposes of any other
provision of law before the effective date of the transfer of
any such employee under section 1313.
(d) Use of Property and Services.--
(1) Property.--The Director may use the property of the
Board to perform functions which have been transferred to the
Director, for such time as is reasonable to facilitate the
orderly transfer of functions transferred under any other
provision of this Act or any amendment made by this Act to
any other provision of law.
(2) Agency services.--Any agency, department, or other
instrumentality of the United States, and any successor to
any such agency, department, or instrumentality, which was
providing supporting services to the Board before the
expiration of the 1-year period under subsection (a) in
connection with functions that are transferred to the
Director shall--
(A) continue to provide such services, on a reimbursable
basis, until the transfer of such functions is complete; and
(B) consult with any such agency to coordinate and
facilitate a prompt and reasonable transition.
(e) Continuation of Services.--The Director may use the
services of employees and other personnel of the Board, on a
reimbursable basis, to perform functions which have been
transferred to the Director for such time as is reasonable to
facilitate the orderly transfer of functions pursuant to any
other provision of this Act or any amendment made by this Act
to any other provision of law.
(f) Savings Provisions.--
(1) Existing rights, duties, and obligations not
affected.--Subsection (a) shall not affect the validity of
any right, duty, or obligation of the United States, a member
of the Board, or any other person, which--
(A) arises under the Federal Home Loan Bank Act, or any
other provision of law applicable with respect to the Board;
and
(B) existed on the day before the effective date of the
abolishment under subsection (a).
(2) Continuation of suits.--No action or other proceeding
commenced by or against the Board in connection with
functions that are transferred under this Act to the Director
shall abate by reason of the enactment of this Act, except
that the Director shall be substituted for the Board or any
member thereof as a party to any such action or proceeding.
SEC. 1312. CONTINUATION AND COORDINATION OF CERTAIN ACTIONS.
(a) In General.--All regulations, orders, determinations,
and resolutions described under subsection (b) shall remain
in effect according to the terms of such regulations, orders,
determinations, and resolutions, and shall be enforceable by
or against the Director until modified, terminated, set
aside, or superseded in accordance with applicable law by the
Director, any court of competent jurisdiction, or operation
of law.
(b) Applicability.--A regulation, order, determination, or
resolution is described under this subsection if it--
(1) was issued, made, prescribed, or allowed to become
effective by--
(A) the Board; or
(B) a court of competent jurisdiction, and relates to
functions transferred by this Act; and
(2) is in effect on the effective date of the abolishment
under section 1311(a).
SEC. 1313. TRANSFER AND RIGHTS OF EMPLOYEES OF THE FEDERAL
HOUSING FINANCE BOARD.
(a) Transfer.--Each employee of the Board shall be
transferred to the Agency for employment, not later than the
effective date of the abolishment under section 1311(a), and
such transfer shall be deemed a transfer of function for
purposes of section 3503 of title 5, United States Code.
(b) Guaranteed Positions.--
(1) In general.--Each employee transferred under subsection
(a) shall be guaranteed a position with the same status,
tenure, grade, and pay as that held on the day immediately
preceding the transfer.
(2) No involuntary separation or reduction.--An employee
holding a permanent position on the day immediately preceding
the transfer may not be involuntarily separated or reduced in
grade or compensation during the 12-month period beginning on
the date of transfer, except for cause, or, if the employee
is a temporary employee, separated in accordance with the
terms of the appointment of the employee.
(c) Appointment Authority for Excepted Employees.--
(1) In general.--In the case of an employee occupying a
position in the excepted service, any appointment authority
established under law or by regulations of the Office of
Personnel Management for filling such position shall be
transferred, subject to paragraph (2).
(2) Decline of transfer.--The Director may decline a
transfer of authority under paragraph (1), to the extent that
such authority relates to a position excepted from the
competitive service because of its confidential,
policymaking, policy-determining, or policy-advocating
character.
(d) Reorganization.--If the Director determines, after the
end of the 1-year period beginning on the effective date of
the abolishment under section 1311(a), that a reorganization
of the combined workforce is required, that reorganization
shall be deemed a major reorganization for purposes of
affording affected employee retirement under section
8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code.
(e) Employee Benefit Programs.--
(1) In general.--Any employee of the Board accepting
employment with the Agency as a result of a transfer under
subsection (a) may retain, for 12 months after the date on
which such transfer occurs, membership in any employee
benefit program of the Agency or the Board, as applicable,
including insurance, to which such employee belongs on the
effective date of the abolishment under section 1311(a) if--
(A) the employee does not elect to give up the benefit or
membership in the program; and
(B) the benefit or program is continued by the Director.
(2) Cost differential.--
(A) In general.--The difference in the costs between the
benefits which would have been provided by the Board and
those provided by this section shall be paid by the Director.
(B) Health insurance.--If any employee elects to give up
membership in a health insurance program or the health
insurance program is not continued by the Director, the
employee shall be permitted to select an alternate Federal
health insurance program not later than 30 days after the
date of such election or notice, without regard to any other
regularly scheduled open season.
SEC. 1314. TRANSFER OF PROPERTY AND FACILITIES.
Upon the effective date of the abolishment under section
1311(a), all property of the Board shall transfer to the
Agency.
TITLE IV--HOPE FOR HOMEOWNERS
SEC. 1401. SHORT TITLE.
This title may be cited as the ``HOPE for Homeowners Act of
2008''.
SEC. 1402. ESTABLISHMENT OF HOPE FOR HOMEOWNERS PROGRAM.
(a) Establishment.--Title II of the National Housing Act
(12 U.S.C. 1707 et seq.) is amended by adding at the end the
following:
``SEC. 257. HOPE FOR HOMEOWNERS PROGRAM.
``(a) Establishment.--There is established in the Federal
Housing Administration a HOPE for Homeowners Program.
``(b) Purpose.--The purpose of the HOPE for Homeowners
Program is--
``(1) to create an FHA program, participation in which is
voluntary on the part of homeowners and existing loan holders
to insure refinanced loans for distressed borrowers to
support long-term, sustainable homeownership;
``(2) to allow homeowners to avoid foreclosure by reducing
the principle balance outstanding, and interest rate charged,
on their mortgages;
``(3) to help stabilize and provide confidence in mortgage
markets by bringing transparency to the value of assets based
on mortgage assets;
``(4) to target mortgage assistance under this section to
homeowners for their principal residence;
``(5) to enhance the administrative capacity of the FHA to
carry out its expanded role under the HOPE for Homeowners
Program;
[[Page S6073]]
``(6) to ensure the HOPE for Homeowners Program remains in
effect only for as long as is necessary to provide stability
to the housing market; and
``(7) to provide servicers of delinquent mortgages with
additional methods and approaches to avoid foreclosure.
``(c) Establishment and Implementation of Program
Requirements.--
``(1) Duties of the board.--In order to carry out the
purposes of the HOPE for Homeowners Program, the Board
shall--
``(A) establish requirements and standards for the program;
and
``(B) prescribe such regulations and provide such guidance
as may be necessary or appropriate to implement such
requirements and standards.
``(2) Duties of the secretary.--In carrying out any of the
program requirements or standards established under paragraph
(1), the Secretary may issue such interim guidance and
mortgagee letters as the Secretary determines necessary or
appropriate.
``(d) Insurance of Mortgages.--The Secretary is authorized
upon application of a mortgagee to make commitments to insure
or to insure any eligible mortgage that has been refinanced
in a manner meeting the requirements under subsection (e).
``(e) Requirements of Insured Mortgages.--To be eligible
for insurance under this section, a refinanced eligible
mortgage shall comply with all of the following requirements:
``(1) Lack of capacity to pay existing mortgage.--
``(A) Borrower certification.--
``(i) In general.--The mortgagor shall provide
certification to the Secretary that the mortgagor has not
intentionally defaulted on the mortgage or any other debt,
and has not knowingly, or willfully and with actual
knowledge, furnished material information known to be false
for the purpose of obtaining any eligible mortgage.
``(ii) Penalties.--
``(I) False statement.--Any certification filed pursuant to
clause (i) shall contain an acknowledgment that any willful
false statement made in such certification is punishable
under section 1001, of title 18, United States Code, by fine
or imprisonment of not more than 5 years, or both.
``(II) Liability for repayment.--The mortgagor shall agree
in writing that the mortgagor shall be liable to repay to the
Federal Housing Administration any direct financial benefit
achieved from the reduction of indebtedness on the existing
mortgage or mortgages on the residence refinanced under this
section derived from misrepresentations made in the
certifications and documentation required under this
subparagraph, subject to the discretion of the Secretary.
``(B) Current borrower debt-to-income ratio.--As of March
1, 2008, the mortgagor shall have had a ratio of mortgage
debt to income, taking into consideration all existing
mortgages of that mortgagor at such time, greater than 31
percent (or such higher amount as the Board determines
appropriate).
``(2) Determination of principal obligation amount.--The
principal obligation amount of the refinanced eligible
mortgage to be insured shall--
``(A) be determined by the reasonable ability of the
mortgagor to make his or her mortgage payments, as such
ability is determined by the Secretary pursuant to section
203(b)(4) or by any other underwriting standards established
by the Board; and
``(B) not exceed 90 percent of the appraised value of the
property to which such mortgage relates.
``(3) Required waiver of prepayment penalties and fees.--
All penalties for prepayment or refinancing of the eligible
mortgage, and all fees and penalties related to default or
delinquency on the eligible mortgage, shall be waived or
forgiven.
``(4) Extinguishment of subordinate liens.--
``(A) Required agreement.--All holders of outstanding
mortgage liens on the property to which the eligible mortgage
relates shall agree to accept the proceeds of the insured
loan as payment in full of all indebtedness under the
eligible mortgage, and all encumbrances related to such
eligible mortgage shall be removed. The Secretary may take
such actions, subject to standards established by the Board
under subparagraph (B), as may be necessary and appropriate
to facilitate coordination and agreement between the holders
of the existing senior mortgage and any existing subordinate
mortgages, taking into consideration the subordinate lien
status of such subordinate mortgages.
``(B) Shared appreciation.--
``(i) In general.--The Board shall establish standards and
policies that will allow for the payment to the holder of any
existing subordinate mortgage of a portion of any future
appreciation in the property secured by such eligible
mortgage that is owed to the Secretary pursuant to subsection
(k).
``(ii) Factors.--In establishing the standards and policies
required under clause (i), the Board shall take into
consideration--
``(I) the status of any subordinate mortgage;
``(II) the outstanding principal balance of and accrued
interest on the existing senior mortgage and any outstanding
subordinate mortgages;
``(III) the extent to which the current appraised value of
the property securing a subordinate mortgage is less than the
outstanding principal balance and accrued interest on any
other liens that are senior to such subordinate mortgage; and
``(IV) such other factors as the Board determines to be
appropriate.
``(C) Voluntary program.--This paragraph may not be
construed to require any holder of any existing mortgage to
participate in the program under this section generally, or
with respect to any particular loan.
``(5) Term of mortgage.--The refinanced eligible mortgage
to be insured shall--
``(A) bear interest at a single rate that is fixed for the
entire term of the mortgage; and
``(B) have a maturity of not less than 30 years from the
date of the beginning of amortization of such refinanced
eligible mortgage.
``(6) Maximum loan amount.--The principal obligation amount
of the eligible mortgage to be insured shall not exceed 132
percent of the dollar amount limitation in effect for 2007
under section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454(a)(2)) for a property of the
applicable size.
``(7) Prohibition on second liens.--A mortgagor may not
grant a new second lien on the mortgaged property during the
first 5 years of the term of the mortgage insured under this
section.
``(8) Appraisals.--Any appraisal conducted in connection
with a mortgage insured under this section shall--
``(A) be based on the current value of the property;
``(B) be conducted in accordance with title XI of the
Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (12 U.S.C. 3331 et seq.);
``(C) be completed by an appraiser who meets the competency
requirements of the Uniform Standards of Professional
Appraisal Practice;
``(D) be wholly consistent with the appraisal standards,
practices, and procedures under section 202(e) of this Act
that apply to all loans insured under this Act; and
``(E) comply with the requirements of subsection (g) of
this section (relating to appraisal independence).
``(9) Documentation and verification of income.--In
complying with the FHA underwriting requirements under the
HOPE for Homeowners Program under this section, the mortgagee
under the mortgage shall document and verify the income of
the mortgagor by procuring an Internal Revenue Service
transcript of the income tax returns of the mortgagor for the
2 most recent years for which the filing deadline for such
years has passed and by any other method, in accordance with
procedures and standards that the Board or the Secretary
shall establish.
``(10) Mortgage fraud.--The mortgagor shall not have been
convicted under any provision of Federal or State law for
fraud, including mortgage fraud.
``(11) Primary residence.--The mortgagor shall provide
documentation satisfactory in the determination of the
Secretary to prove that the residence covered by the mortgage
to be insured under this section is occupied by the mortgagor
as the primary residence of the mortgagor, and that such
residence is the only residence in which the mortgagor has
any present ownership interest.
``(f) Study of Auction or Bulk Refinance Program.--
``(1) Study.--The Board shall conduct a study of the need
for and efficacy of an auction or bulk refinancing mechanism
to facilitate refinancing of existing residential mortgages
that are at risk for foreclosure into mortgages insured under
this section. The study shall identify and examine various
options for mechanisms under which lenders and servicers of
such mortgages may make bids for forward commitments for such
insurance in an expedited manner.
``(2) Content.--
``(A) Analysis.--The study required under paragraph (1)
shall analyze--
``(i) the feasibility of establishing a mechanism that
would facilitate the more rapid refinancing of borrowers at
risk of foreclosure into performing mortgages insured under
this section;
``(ii) whether such a mechanism would provide an effective
and efficient mechanism to reduce foreclosures on qualified
existing mortgages;
``(iii) whether the use of an auction or bulk refinance
program is necessary to stabilize the housing market and
reduce the impact of turmoil in that market on the economy of
the United States;
``(iv) whether there are other mechanisms or authority that
would be useful to reduce foreclosure; and
``(v) and any other factors that the Board considers
relevant.
``(B) Determinations.--To the extent that the Board finds
that a facility of the type described in subparagraph (A) is
feasible and useful, the study shall--
``(i) determine and identify any additional authority or
resources needed to establish and operate such a mechanism;
``(ii) determine whether there is a need for additional
authority with respect to the loan underwriting criteria
established in this section or with respect to eligibility of
participating borrowers, lenders, or holders of liens;
``(iii) determine whether such underwriting criteria should
be established on the basis of individual loans, in the
aggregate, or otherwise to facilitate the goal of refinancing
borrowers at risk of foreclosure into viable loans insured
under this section.
``(3) Report.--Not later than the expiration of the 60-day
period beginning on the
[[Page S6074]]
date of the enactment of this section, the Board shall submit
a report regarding the results of the study conducted under
this subsection to the Committee on Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate. The report shall
include a detailed description of the analysis required under
paragraph (2)(A) and of the determinations made pursuant to
paragraph (2)(B), and shall include any other findings and
recommendations of the Board pursuant to the study, including
identifying various options for mechanisms described in
paragraph (1).
``(g) Appraisal Independence.--
``(1) Prohibitions on interested parties in a real estate
transaction.--No mortgage lender, mortgage broker, mortgage
banker, real estate broker, appraisal management company,
employee of an appraisal management company, nor any other
person with an interest in a real estate transaction
involving an appraisal in connection with a mortgage insured
under this section shall improperly influence, or attempt to
improperly influence, through coercion, extortion, collusion,
compensation, instruction, inducement, intimidation,
nonpayment for services rendered, or bribery, the
development, reporting, result, or review of a real estate
appraisal sought in connection with the mortgage.
``(2) Civil monetary penalties.--The Secretary may impose a
civil money penalty for any knowing and material violation of
paragraph (1) under the same terms and conditions as are
authorized in section 536(a) of this Act.
``(h) Standards to Protect Against Adverse Selection.--
``(1) In general.--The Board shall, by rule or order,
establish standards and policies to require the underwriter
of the insured loan to provide such representations and
warranties as the Board considers necessary or appropriate to
enforce compliance with all underwriting and appraisal
standards of the HOPE for Homeowners Program.
``(2) Exclusion for violations.--The Board shall prohibit
the Secretary from paying insurance benefits to a mortgagee
who violates the representations and warranties, as
established under paragraph (1), or in any case in which a
mortgagor fails to make the first payment on a refinanced
eligible mortgage.
``(3) Other authority.--The Board may establish such other
standards or policies as necessary to protect against adverse
selection, including requiring loans identified by the
Secretary as higher risk loans to demonstrate payment
performance for a reasonable period of time prior to being
insured under the program.
``(i) Premiums.--For each refinanced eligible mortgage
insured under this section, the Secretary shall establish and
collect--
``(1) at the time of insurance, a single premium payment in
an amount equal to 3 percent of the amount of the original
insured principal obligation of the refinanced eligible
mortgage, which shall be paid from the proceeds of the
mortgage being insured under this section, through the
reduction of the amount of indebtedness that existed on the
eligible mortgage prior to refinancing; and
``(2) in addition to the premium required under paragraph
(1), an annual premium in an amount equal to 1.5 percent of
the amount of the remaining insured principal balance of the
mortgage.
``(j) Origination Fees and Interest Rate.--The Board shall
establish--
``(1) a reasonable limitation on origination fees for
refinanced eligible mortgages insured under this section; and
``(2) procedures to ensure that interest rates on such
mortgages shall be commensurate with market rate interest
rates on such types of loans.
``(k) Equity and Appreciation.--
``(1) Five-year phase-in for equity as a result of sale or
refinancing.--For each eligible mortgage insured under this
section, the Secretary and the mortgagor of such mortgage
shall, upon any sale or disposition of the property to which
such mortgage relates, or upon the subsequent refinancing of
such mortgage, be entitled to the following with respect to
any equity created as a direct result of such sale or
refinancing:
``(A) If such sale or refinancing occurs during the period
that begins on the date that such mortgage is insured and
ends 1 year after such date of insurance, the Secretary shall
be entitled to 100 percent of such equity.
``(B) If such sale or refinancing occurs during the period
that begins 1 year after such date of insurance and ends 2
years after such date of insurance, the Secretary shall be
entitled to 90 percent of such equity and the mortgagor shall
be entitled to 10 percent of such equity.
``(C) If such sale or refinancing occurs during the period
that begins 2 years after such date of insurance and ends 3
years after such date of insurance, the Secretary shall be
entitled to 80 percent of such equity and the mortgagor shall
be entitled to 20 percent of such equity.
``(D) If such sale or refinancing occurs during the period
that begins 3 years after such date of insurance and ends 4
years after such date of insurance, the Secretary shall be
entitled to 70 percent of such equity and the mortgagor shall
be entitled to 30 percent of such equity.
``(E) If such sale or refinancing occurs during the period
that begins 4 years after such date of insurance and ends 5
years after such date of insurance, the Secretary shall be
entitled to 60 percent of such equity and the mortgagor shall
be entitled to 40 percent of such equity.
``(F) If such sale or refinancing occurs during any period
that begins 5 years after such date of insurance, the
Secretary shall be entitled to 50 percent of such equity and
the mortgagor shall be entitled to 50 percent of such equity.
``(2) Appreciation in value.--For each eligible mortgage
insured under this section, the Secretary and the mortgagor
of such mortgage shall, upon any sale or disposition of the
property to which such mortgage relates, each be entitled to
50 percent of any appreciation in value of the appraised
value of such property that has occurred since the date that
such mortgage was insured under this section.
``(l) Establishment of HOPE Fund.--
``(1) In general.--There is established in the Federal
Housing Administration a revolving fund to be known as the
Home Ownership Preservation Entity Fund, which shall be used
by the Board for carrying out the mortgage insurance
obligations under this section.
``(2) Management of fund.--The HOPE Fund shall be
administered and managed by the Secretary, who shall
establish reasonable and prudent criteria for the management
and operation of any amounts in the HOPE Fund.
``(m) Limitation on Aggregate Insurance Authority.--The
aggregate original principal obligation of all mortgages
insured under this section may not exceed $300,000,000,000.
``(n) Reports by the Board.--The Board shall submit monthly
reports to the Congress identifying the progress of the HOPE
for Homeowners Program, which shall contain the following
information for each month:
``(1) The number of new mortgages insured under this
section, including the location of the properties subject to
such mortgages by census tract.
``(2) The aggregate principal obligation of new mortgages
insured under this section.
``(3) The average amount by which the principle balance
outstanding on mortgages insured this section was reduced.
``(4) The amount of premiums collected for insurance of
mortgages under this section.
``(5) The claim and loss rates for mortgages insured under
this section.
``(6) Any other information that the Board considers
appropriate.
``(o) Required Outreach Efforts.--The Secretary shall carry
out outreach efforts to ensure that homeowners, lenders, and
the general public are aware of the opportunities for
assistance available under this section.
``(p) Enhancement of FHA Capacity.--Under the direction of
the Board, the Secretary shall take such actions as may be
necessary to--
``(1) contract for the establishment of underwriting
criteria, automated underwriting systems, pricing standards,
and other factors relating to eligibility for mortgages
insured under this section;
``(2) contract for independent quality reviews of
underwriting, including appraisal reviews and fraud
detection, of mortgages insured under this section or pools
of such mortgages; and
``(3) increase personnel of the Department as necessary to
process or monitor the processing of mortgages insured under
this section.
``(q) GNMA Commitment Authority.--
``(1) Guarantees.--The Secretary shall take such actions as
may be necessary to ensure that securities based on and
backed by a trust or pool composed of mortgages insured under
this section are available to be guaranteed by the Government
National Mortgage Association as to the timely payment of
principal and interest.
``(2) Guarantee authority.--To carry out the purposes of
section 306 of the National Housing Act (12 U.S.C. 1721), the
Government National Mortgage Association may enter into new
commitments to issue guarantees of securities based on or
backed by mortgages insured under this section, not exceeding
$300,000,000,000. The amount of authority provided under the
preceding sentence to enter into new commitments to issue
guarantees is in addition to any amount of authority to make
new commitments to issue guarantees that is provided to the
Association under any other provision of law.
``(r) Sunset.--The Secretary may not enter into any new
commitment to insure any refinanced eligible mortgage, or
newly insure any refinanced eligible mortgage pursuant to
this section before October 1, 2008 or after September 30,
2011.
``(s) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Approved financial institution or mortgagee.--The
term `approved financial institution or mortgagee' means a
financial institution or mortgagee approved by the Secretary
under section 203 as responsible and able to service
mortgages responsibly.
``(2) Board.--The term `Board' means the Board of Directors
of the HOPE for Homeowners Program. The Board shall be
composed of the Secretary, the Secretary of the Treasury, the
Chairperson of the Board of Governors of the Federal Reserve
System, and the Chairperson of the Board of Directors of the
Federal Deposit Insurance Corporation.
``(3) Eligible mortgage.--The term `eligible mortgage'
means a mortgage--
[[Page S6075]]
``(A) the mortgagor of which--
``(i) occupies such property as his or her principal
residence; and
``(ii) cannot, subject to subsection (e)(1)(B) and such
other standards established by the Board, afford his or her
mortgage payments; and
``(B) originated on or before January 1, 2008.
``(4) Existing senior mortgage.--The term `existing senior
mortgage' means, with respect to a mortgage insured under
this section, the existing mortgage that has superior
priority.
``(5) Existing subordinate mortgage.--The term `existing
subordinate mortgage' means, with respect to a mortgage
insured under this section, an existing mortgage that has
subordinate priority to the existing senior mortgage.
``(6) HOPE for homeowners program.--The term `HOPE for
Homeowners Program' means the program established under this
section.
``(7) Secretary.--The term `Secretary' means the Secretary
of Housing and Urban Development, except where specifically
provided otherwise.
``(t) Requirements Related to the Board.--
``(1) Compensation, actual, necessary, and transportation
expenses.--
``(A) Federal employees.--A member of the Board who is an
officer or employee of the Federal Government shall serve
without additional pay (or benefits in the nature of
compensation) for service as a member of the Board.
``(B) Travel expenses.--Members of the Board shall be
entitled to receive travel expenses, including per diem in
lieu of subsistence, equivalent to those set forth in
subchapter I of chapter 57 of title 5, United States Code.
``(2) Bylaws.--The Board may prescribe, amend, and repeal
such bylaws as may be necessary for carrying out the
functions of the Board.
``(3) Quorum.--A majority of the Board shall constitute a
quorum.
``(4) Staff; experts and consultants.--
``(A) Detail of government employees.--Upon request of the
Board, any Federal Government employee may be detailed to the
Board without reimbursement, and such detail shall be without
interruption or loss of civil service status or privilege.
``(B) Experts and consultants.--The Board shall procure the
services of experts and consultants as the Board considers
appropriate.
``(u) Rule of Construction Related to Voluntary Nature of
the Program.--This section shall not be construed to require
that any approved financial institution or mortgagee
participate in any activity authorized under this section,
including any activity related to the refinancing of an
eligible mortgage.
``(v) Rule of Construction Related to Insurance of
Mortgages.--Except as otherwise provided for in this section
or by action of the Board, the provisions and requirements of
section 203(b) shall apply with respect to the insurance of
any eligible mortgage under this section.
``(w) HOPE Bonds.--
``(1) Issuance and repayment of bonds.--Notwithstanding
section 504(b) of the Federal Credit Reform Act of 1990 (2
U.S.C. 661d(b)), the Secretary of the Treasury shall--
``(A) subject to such terms and conditions as the Secretary
of the Treasury deems necessary, issue Federal credit
instruments, to be known as `HOPE Bonds', that are callable
at the discretion of the Secretary of the Treasury and do
not, in the aggregate, exceed the amount specified in
subsection (m);
``(B) provide the subsidy amounts necessary for loan
guarantees under the HOPE for Homeowners Program, not to
exceed the amount specified in subsection (m), in accordance
with the provisions of the Federal Credit Reform Act of 1990
(2 U.S.C. 661 et seq.), except as provided in this paragraph;
and
``(C) use the proceeds from HOPE Bonds only to pay for the
net costs to the Federal Government of the HOPE for
Homeowners Program, including administrative costs.
``(2) Reimbursements to treasury.--Funds received pursuant
to section 1338(b) of the Federal Housing Enterprises
Regulatory Reform Act of 1992 shall be used to reimburse the
Secretary of the Treasury for amounts borrowed under
paragraph (1).
``(3) Use of reserve fund.--If the net cost to the Federal
Government for the HOPE for Homeowners Program exceeds the
amount of funds received under paragraph (2), remaining debts
of the HOPE for Homeowners Program shall be paid from amounts
deposited into the fund established by the Secretary under
section 1337(b) of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992, remaining amounts in such
fund to be used to reduce the National debt.''.
______
SA 5048. Mr. ENSIGN submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
On page 133, between lines 9 and 10, insert the following:
``(g) Additional Limitations on Distribution of Funds.--
``(1) In general.--None of the funds allocated under this
section shall be distributed out of either the Housing Trust
Fund or the Capital Magnet Fund to--
``(A) an organization which has been indicted for a
violation under Federal law relating to an election for
Federal office; or
``(B) an organization which employs applicable individuals.
``(2) Applicable individuals defined.--In this subsection,
the term `applicable individual' means an individual who--
``(A) is--
``(i) employed by the organization in a permanent or
temporary capacity;
``(ii) contracted or retained by the organization; or
``(iii) acting on behalf of, or with the express or
apparent authority of, the organization; and
``(B) has been indicted for a violation under Federal law
relating to an election for Federal office.''.
______
SA 5049. Mr. ENSIGN submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
On page 401, line 10, after the first period insert the
following:
``(x) No Benefit for Delinquency Within First Six Months.--
No insurance benefits shall be paid by the Secretary pursuant
to this section if a mortgagor fails to timely make any of
his or her first six payments on a refinanced eligible
mortgage insured under this section.''.
______
SA 5050. Mr. ENSIGN submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
On page 510, between lines 5 and 6, insert the following:
(4) Sale requirement.--If a State or unit of general local
government purchases or otherwise acquires an abandoned or
foreclosed upon home or residential property with funds
received pursuant to this section or with any amounts derived
or generated from activities authorized under this section,
that State or unit of general local government shall sell
such home or property by a date that is not later than 5
years after the date of enactment of this Act.
______
SA 5051. Mr. ENSIGN submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
On page 575, strike lines 3 through 13 and insert the
following:
``(A) Increase for 2008.--
``(i) In general.--In the case of calendar year 2008, the
State ceiling for each State shall be increased by an amount
equal to $11,000,000,000 multiplied by the State share for
such State.
``(ii) State share.--For purposes of this paragraph, the
State share for any state
[[Page S6076]]
shall be the amount, expressed as a percentage, determined
with respect to such State under the formula established
under clause (iii).
``(iii) Formula.--The formula established under this clause
shall be established by the Secretary, in consultation with
the Secretary of Housing and Urban Development, and shall be
based on need, as such need is determined in the discretion
of the Secretary, taking into account--
``(I) the number and percentage of home foreclosures in
each State;
``(II) the number and percentage of homes financed by a
subprime mortgage related loan in each State; and
``(III) the number and percentage of homes in default or
delinquency in each State.
``(iv) Formula to be devised swiftly.--The formula under
clause (iii) shall be established not later than 30 days
after the date of enactment of this paragraph.
______
SA 5052. Mr. ENSIGN submitted an amendment intended to be proposed by
him to the bill H.R. 3221, moving the United States toward greater
energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
On page 518, line 3, strike the period and insert ``:
Provided, further that none of the funds appropriated by this
section for section 2401 or funds appropriated by section
2401 shall be for political activities, lobbying, whether
directly or through other parties, or travel expenses.''.
______
SA 5053 Mr. CORKER submitted an amendment intended to be proposed by
him to the bill H.R. 3221, moving the United States toward greater
energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
Strike Title III of Division B.
______
SA 5054. Mr. ENSIGN submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
At the end of division C, add the following:
TITLE __--CLEAN ENERGY TAX STIMULUS
SEC. __01. SHORT TITLE.
This title may be cited as the ``Clean Energy Tax Stimulus
Act of 2008''.
Subtitle A--Extension of Clean Energy Production Incentives
SEC. __11. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY
PRODUCTION TAX CREDIT.
(a) Extension of Credit.--Each of the following provisions
of section 45(d) (relating to qualified facilities) is
amended by striking ``January 1, 2009'' and inserting
``January 1, 2010'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (5).
(6) Paragraph (6).
(7) Paragraph (7).
(8) Paragraph (8).
(9) Subparagraphs (A) and (B) of paragraph (9).
(b) Production Credit for Electricity Produced From Marine
Renewables.--
(1) In general.--Paragraph (1) of section 45(c) (relating
to resources) is amended by striking ``and'' at the end of
subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(2) Marine renewables.--Subsection (c) of section 45 is
amended by adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and hydrokinetic
renewable energy' means energy derived from--
``(i) waves, tides, and currents in oceans, estuaries, and
tidal areas,
``(ii) free flowing water in rivers, lakes, and streams,
``(iii) free flowing water in an irrigation system, canal,
or other man-made channel, including projects that utilize
nonmechanical structures to accelerate the flow of water for
electric power production purposes, or
``(iv) differentials in ocean temperature (ocean thermal
energy conversion).
``(B) Exceptions.--Such term shall not include any energy
which is derived from any source which utilizes a dam,
diversionary structure (except as provided in subparagraph
(A)(iii)), or impoundment for electric power production
purposes.''.
(3) Definition of facility.--Subsection (d) of section 45
is amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy
facilities.--In the case of a facility producing electricity
from marine and hydrokinetic renewable energy, the term
`qualified facility' means any facility owned by the
taxpayer--
``(A) which has a nameplate capacity rating of at least 150
kilowatts, and
``(B) which is originally placed in service on or after the
date of the enactment of this paragraph and before January 1,
2010.''.
(4) Credit rate.--Subparagraph (A) of section 45(b)(4) is
amended by striking ``or (9)'' and inserting ``(9), or
(11)''.
(5) Coordination with small irrigation power.--Paragraph
(5) of section 45(d), as amended by subsection (a), is
amended by striking ``January 1, 2010'' and inserting ``the
date of the enactment of paragraph (11)''.
(c) Sales of Electricity to Regulated Public Utilities
Treated as Sales to Unrelated Persons.--Section 45(e)(4)
(relating to related persons) is amended by adding at the end
the following new sentence: ``A taxpayer shall be treated as
selling electricity to an unrelated person if such
electricity is sold to a regulated public utility (as defined
in section 7701(a)(33).''.
(d) Trash Facility Clarification.--Paragraph (7) of section
45(d) is amended--
(1) by striking ``facility which burns'' and inserting
``facility (other than a facility described in paragraph (6))
which uses'', and
(2) by striking ``combustion''.
(e) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
apply to property originally placed in service after December
31, 2008.
(2) Modifications.--The amendments made by subsections (b)
and (c) shall apply to electricity produced and sold after
the date of the enactment of this Act, in taxable years
ending after such date.
(3) Trash facility clarification.--The amendments made by
subsection (d) shall apply to electricity produced and sold
before, on, or after December 31, 2007.
SEC. __12. EXTENSION AND MODIFICATION OF SOLAR ENERGY AND
FUEL CELL INVESTMENT TAX CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) (relating to energy credit) are
each amended by striking ``January 1, 2009'' and inserting
``January 1, 2017''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) (relating to qualified fuel cell property) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2017''.
(3) Qualified microturbine property.--Subparagraph (E) of
section 48(c)(2) (relating to qualified microturbine
property) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2017''.
(b) Allowance of Energy Credit Against Alternative Minimum
Tax.--Subparagraph (B) of section 38(c)(4) (relating to
specified credits) is amended by striking ``and'' at the end
of clause (iii), by striking the period at the end of clause
(iv) and inserting ``, and'', and by adding at the end the
following new clause:
``(v) the credit determined under section 46 to the extent
that such credit is attributable to the energy credit
determined under section 48.''.
(c) Repeal of Dollar Per Kilowatt Limitation for Fuel Cell
Property.--
(1) In general.--Section 48(c)(1) (relating to qualified
fuel cell), as amended by subsection (a)(2), is amended by
striking subparagraph (B) and by redesignating subparagraphs
(C), (D), and (E) as subparagraphs (B), (C), and (D),
respectively.
(2) Conforming amendment.--Section 48(a)(1) is amended by
striking ``paragraphs (1)(B) and (2)(B) of subsection (c)''
and inserting ``subsection (c)(2)(B)''.
(d) Public Electric Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is amended
by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c), as amended by this
section, is amended by striking subparagraph (C) and
redesignating subparagraph (D) as subparagraph (C).
(B) Paragraph (2) of section 48(c), as amended by
subsection (a)(3), is amended by striking subparagraph (D)
and redesignating subparagraph (E) as subparagraph (D).
(e) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
take effect on the date of the enactment of this Act.
[[Page S6077]]
(2) Allowance against alternative minimum tax.--The
amendments made by subsection (b) shall apply to credits
determined under section 46 of the Internal Revenue Code of
1986 in taxable years beginning after the date of the
enactment of this Act and to carrybacks of such credits.
(3) Fuel cell property and public electric utility
property.--The amendments made by subsections (c) and (d)
shall apply to periods after the date of the enactment of
this Act, in taxable years ending after such date, under
rules similar to the rules of section 48(m) of the Internal
Revenue Code of 1986 (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of 1990).
SEC. __13. EXTENSION AND MODIFICATION OF RESIDENTIAL ENERGY
EFFICIENT PROPERTY CREDIT.
(a) Extension.--Section 25D(g) (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2009''.
(b) No Dollar Limitation for Credit for Solar Electric
Property.--
(1) In general.--Section 25D(b)(1) (relating to maximum
credit) is amended by striking subparagraph (A) and by
redesignating subparagraphs (B) and (C) as subparagraphs (A)
and (B), respectively.
(2) Conforming amendments.--Section 25D(e)(4) is amended--
(A) by striking clause (i) in subparagraph (A),
(B) by redesignating clauses (ii) and (iii) in subparagraph
(A) as clauses (i) and (ii), respectively, and
(C) by striking ``, (2),'' in subparagraph (C).
(c) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended
to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of
Unused Credit.--
``(1) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for the taxable year
shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable
year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits allowed
against regular and alternative minimum tax.--In the case of
a taxable year to which section 26(a)(2) applies, if the
credit allowable under subsection (a) exceeds the limitation
imposed by section 26(a)(2) for such taxable year reduced by
the sum of the credits allowable under this subpart (other
than this section), such excess shall be carried to the
succeeding taxable year and added to the credit allowable
under subsection (a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a taxable year
to which section 26(a)(2) does not apply, if the credit
allowable under subsection (a) exceeds the limitation imposed
by paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such succeeding
taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting ``and
section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking ``and 25B''
and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking ``section 23''
and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and 25B'' and
inserting ``25B, and 25D''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
(2) Application of egtrra sunset.--The amendments made by
subparagraphs (A) and (B) of subsection (c)(2) shall be
subject to title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 in the same manner as the
provisions of such Act to which such amendments relate.
SEC. __14. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN
RENEWABLE ENERGY BONDS.
(a) Extension.--Section 54(m) (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2009''.
(b) Increase in National Limitation.--Section 54(f)
(relating to limitation on amount of bonds designated) is
amended--
(1) by inserting ``, and for the period beginning after the
date of the enactment of the Clean Energy Tax Stimulus Act of
2008 and ending before January 1, 2010, $400,000,000'' after
``$1,200,000,000'' in paragraph (1),
(2) by striking ``$750,000,000 of the'' in paragraph (2)
and inserting ``$750,000,000 of the $1,200,000,000'', and
(3) by striking ``bodies'' in paragraph (2) and inserting
``bodies, and except that the Secretary may not allocate more
than \1/3\ of the $400,000,000 national clean renewable
energy bond limitation to finance qualified projects of
qualified borrowers which are public power providers nor more
than \1/3\ of such limitation to finance qualified projects
of qualified borrowers which are mutual or cooperative
electric companies described in section 501(c)(12) or section
1381(a)(2)(C)''.
(c) Public Power Providers Defined.--Section 54(j) is
amended--
(1) by adding at the end the following new paragraph:
``(6) Public power provider.--The term `public power
provider' means a State utility with a service obligation, as
such terms are defined in section 217 of the Federal Power
Act (as in effect on the date of the enactment of this
paragraph).'', and
(2) by inserting ``; Public Power Provider'' before the
period at the end of the heading.
(d) Technical Amendment.--The third sentence of section
54(e)(2) is amended by striking ``subsection (l)(6)'' and
inserting ``subsection (l)(5)''.
(e) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.
SEC. __15. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC
RESTRUCTURING POLICY.
(a) Qualifying Electric Transmission Transaction.--
(1) In general.--Section 451(i)(3) (defining qualifying
electric transmission transaction) is amended by striking
``January 1, 2008'' and inserting ``January 1, 2010''.
(2) Effective date.--The amendment made by this subsection
shall apply to transactions after December 31, 2007.
(b) Independent Transmission Company.--
(1) In general.--Section 451(i)(4)(B)(ii) (defining
independent transmission company) is amended by striking
``December 31, 2007'' and inserting ``the date which is 2
years after the date of such transaction''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the amendments made by
section 909 of the American Jobs Creation Act of 2004.
Subtitle B--Extension of Incentives To Improve Energy Efficiency
SEC. __21. EXTENSION AND MODIFICATION OF CREDIT FOR ENERGY
EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.
(a) Extension of Credit.--Section 25C(g) (relating to
termination) is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2009''.
(b) Qualified Biomass Fuel Property.--
(1) In general.--Section 25C(d)(3) is amended--
(A) by striking ``and'' at the end of subparagraph (D),
(B) by striking the period at the end of subparagraph (E)
and inserting ``, and'', and
(C) by adding at the end the following new subparagraph:
``(F) a stove which uses the burning of biomass fuel to
heat a dwelling unit located in the United States and used as
a residence by the taxpayer, or to heat water for use in such
a dwelling unit, and which has a thermal efficiency rating of
at least 75 percent.''.
(2) Biomass fuel.--Section 25C(d) (relating to residential
energy property expenditures) is amended by adding at the end
the following new paragraph:
``(6) Biomass fuel.--The term `biomass fuel' means any
plant-derived fuel available on a renewable or recurring
basis, including agricultural crops and trees, wood and wood
waste and residues (including wood pellets), plants
(including aquatic plants), grasses, residues, and fibers.''.
(c) Modifications of Standards for Energy-Efficient
Building Property.--
(1) Electric heat pumps.--Subparagraph (B) of section
25C(d)(3) is amended to read as follows:
``(A) an electric heat pump which achieves the highest
efficiency tier established by the Consortium for Energy
Efficiency, as in effect on January 1, 2008.''.
(2) Central air conditioners.--Section 25C(d)(3)(D) is
amended by striking ``2006'' and inserting ``2008''.
(3) Water heaters.--Subparagraph (E) of section 25C(d) is
amended to read as follows:
``(E) a natural gas, propane, or oil water heater which has
either an energy factor of at least 0.80 or a thermal
efficiency of at least 90 percent.''.
(4) Oil furnaces and hot water boilers.--Paragraph (4) of
section 25C(d) is amended to read as follows:
``(4) Qualified natural gas, propane, and oil furnaces and
hot water boilers.--
``(A) Qualified natural gas furnace.--The term `qualified
natural gas furnace' means any natural gas furnace which
achieves an annual fuel utilization efficiency rate of not
less than 95.
``(B) Qualified natural gas hot water boiler.--The term
`qualified natural gas hot water boiler' means any natural
gas hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than 90.
``(C) Qualified propane furnace.--The term `qualified
propane furnace' means any propane furnace which achieves an
annual fuel utilization efficiency rate of not less than 95.
``(D) Qualified propane hot water boiler.--The term
`qualified propane hot water boiler' means any propane hot
water boiler which achieves an annual fuel utilization
efficiency rate of not less than 90.
``(E) Qualified oil furnaces.--The term `qualified oil
furnace' means any oil furnace which achieves an annual fuel
utilization efficiency rate of not less than 90.
``(F) Qualified oil hot water boiler.--The term `qualified
oil hot water boiler' means any oil hot water boiler which
achieves an annual fuel utilization efficiency rate of not
less than 90.''.
[[Page S6078]]
(d) Effective Date.--The amendments made this section shall
apply to expenditures made after December 31, 2007.
SEC. __22. EXTENSION AND MODIFICATION OF TAX CREDIT FOR
ENERGY EFFICIENT NEW HOMES.
(a) Extension of Credit.--Subsection (g) of section 45L
(relating to termination) is amended by striking ``December
31, 2008'' and inserting ``December 31, 2010''.
(b) Allowance for Contractor's Personal Residence.--
Subparagraph (B) of section 45L(a)(1) is amended to read as
follows:
``(B)(i) acquired by a person from such eligible contractor
and used by any person as a residence during the taxable
year, or
``(ii) used by such eligible contractor as a residence
during the taxable year.''.
(c) Effective Date.--The amendments made by this section
shall apply to homes acquired after December 31, 2008.
SEC. __23. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT
COMMERCIAL BUILDINGS DEDUCTION.
(a) Extension.--Section 179D(h) (relating to termination)
is amended by striking ``December 31, 2008'' and inserting
``December 31, 2009''.
(b) Adjustment of Maximum Deduction Amount.--
(1) In general.--Subparagraph (A) of section 179D(b)(1)
(relating to maximum amount of deduction) is amended by
striking ``$1.80'' and inserting ``$2.25''.
(2) Partial allowance.--Paragraph (1) of section 179D(d) is
amended--
(A) by striking ``$.60'' and inserting ``$0.75'', and
(B) by striking ``$1.80'' and inserting ``$2.25''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. __24. MODIFICATION AND EXTENSION OF ENERGY EFFICIENT
APPLIANCE CREDIT FOR APPLIANCES PRODUCED AFTER
2007.
(a) In General.--Subsection (b) of section 45M (relating to
applicable amount) is amended to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is manufactured
in calendar year 2008 or 2009 and which uses no more than 324
kilowatt hours per year and 5.8 gallons per cycle, and
``(B) $75 in the case of a dishwasher which is manufactured
in calendar year 2008, 2009, or 2010 and which uses no more
than 307 kilowatt hours per year and 5.0 gallons per cycle
(5.5 gallons per cycle for dishwashers designed for greater
than 12 place settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 which meets or
exceeds a 1.72 modified energy factor and does not exceed a
8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 or 2009 which meets
or exceeds a 1.8 modified energy factor and does not exceed a
7.5 water consumption factor,
``(C) $150 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009, or
2010 which meets or exceeds 2.0 modified energy factor and
does not exceed a 6.0 water consumption factor, and
``(D) $250 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009, or
2010 which meets or exceeds 2.2 modified energy factor and
does not exceed a 4.5 water consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is
manufactured in calendar year 2008, and consumes at least 20
percent but not more than 22.9 percent less kilowatt hours
per year than the 2001 energy conservation standards,
``(B) $75 in the case of a refrigerator which is
manufactured in calendar year 2008 or 2009, and consumes at
least 23 percent but no more than 24.9 percent less kilowatt
hours per year than the 2001 energy conservation standards,
``(C) $100 in the case of a refrigerator which is
manufactured in calendar year 2008, 2009, or 2010, and
consumes at least 25 percent but not more than 29.9 percent
less kilowatt hours per year than the 2001 energy
conservation standards, and
``(D) $200 in the case of a refrigerator manufactured in
calendar year 2008, 2009, or 2010 and which consumes at least
30 percent less energy than the 2001 energy conservation
standards.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c)
of section 45M (relating to eligible production) is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that follows
through ``the eligible'' and inserting ``The eligible'', and
(C) by moving the text of such subsection in line with the
subsection heading and redesignating subparagraphs (A) and
(B) as paragraphs (1) and (2), respectively.
(2) Modification of base period.--Paragraph (2) of section
45M(c), as amended by paragraph (1) of this section, is
amended by striking ``3-calendar year'' and inserting ``2-
calendar year''.
(c) Types of Energy Efficient Appliances.--Subsection (d)
of section 45M (defining types of energy efficient
appliances) is amended to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of
this section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2), and
``(3) refrigerators described in subsection (b)(3).''.
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e)
(relating to aggregate credit amount allowed) is amended to
read as follows:
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with respect to
a taxpayer for any taxable year shall not exceed $75,000,000
reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior
taxable years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes
washers.--Paragraph (2) of section 45M(e) is amended to read
as follows:
``(2) Amount allowed for certain refrigerators and clothes
washers.--Refrigerators described in subsection (b)(3)(D) and
clothes washers described in subsection (b)(2)(D) shall not
be taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining
qualified energy efficient appliance) is amended to read as
follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection (b)(1),
``(B) any clothes washer described in subsection (b)(2),
and
``(C) any refrigerator described in subsection (b)(3).''.
(2) Clothes washer.--Section 45M(f)(3) (defining clothes
washer) is amended by inserting ``commercial'' before
``residential'' the second place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section
45M (relating to definitions) is amended by redesignating
paragraphs (4), (5), (6), and (7) as paragraphs (5), (6),
(7), and (8), respectively, and by inserting after paragraph
(3) the following new paragraph:
``(4) Top-loading clothes washer.--The term `top-loading
clothes washer' means a clothes washer which has the clothes
container compartment access located on the top of the
machine and which operates on a vertical axis.''.
(4) Replacement of energy factor.--Section 45M(f)(6), as
redesignated by paragraph (3), is amended to read as follows:
``(6) Modified energy factor.--The term `modified energy
factor' means the modified energy factor established by the
Department of Energy for compliance with the Federal energy
conservation standard.''.
(5) Gallons per cycle; water consumption factor.--Section
45M(f) (relating to definitions), as amended by paragraph
(3), is amended by adding at the end the following:
``(9) Gallons per cycle.--The term `gallons per cycle'
means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of
a dishwasher.
``(10) Water consumption factor.--The term `water
consumption factor' means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water
consumption divided by the cubic foot (or liter) capacity of
the clothes washer.''.
(f) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2007.
______
SA 5055. Mrs. LINCOLN submitted an amendment intended to be proposed
to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself
and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
At the end of title VI of division A, add the following:
SEC. 1606. CLARIFICATION OF SCOPE OF APPLICABLE RATE
PROVISION.
Section 44(f) of the Federal Deposit Insurance Act (12
U.S.C. 1831u(f)) is amended by adding at the end the
following new paragraphs:
``(3) Other persons.--In the case of any other person or
governmental or private entity in the State described in
paragraph (1)--
``(A) any provision of the constitution of that State that
establishes a maximum lawful annual interest rate, or
otherwise or limits the amount of interest, discount points,
finance charges, fees, or other charges that may be charged,
taken, paid, received, or reserved from time to time, until
judgment, thereby interfering in interstate commerce,
[[Page S6079]]
shall not apply to any loan, discount, or credit sale made,
or upon any bond, note, obligation, bill of exchange,
financing transaction, or other evidence of debt issued or
acquired by any other person or governmental or private
entity; and
``(B) such interest, discount points, finance charges,
fees, or other charges that may be charged, taken, paid,
received, or reserved from time to time, until judgment, in
any loan, discount, or credit sale made, or upon any bond,
note, obligation, bill of exchange, financing transaction, or
other evidence of debt issued to or acquired by any other
person or governmental or private entity may not exceed 17
percent per year.''.
______
SA 5056. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 3221, moving the United States toward greater
energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:
At the end of title VI of division A, add the following:
SEC. 1606. OIL AND NATURAL GAS LEASING IN NEW PRODUCING
AREAS.
(a) Definitions.--In this section:
(1) Eligible producing state.--The term ``eligible
producing State'' means--
(A) a new producing State; and
(B) any other producing State that has, within the offshore
administrative boundaries beyond the submerged land of a
State, areas available for oil leasing, natural gas leasing,
or both.
(2) New producing area.--The term ``new producing area''
means an area that is--
(A) within the offshore administrative boundaries beyond
the submerged land of a State; and
(B) not available for oil or natural gas leasing as of the
date of enactment of this Act.
(3) New producing state.--The term ``new producing State''
means a State with respect to which a petition has been
approved by the Secretary under subsection (b).
(4) Qualified revenues.--The term ``qualified revenues''
means all rentals, royalties, bonus bids, and other sums due
and payable to the United States from leases entered into on
or after the date of enactment of this Act for new producing
areas.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Petition for Leasing New Producing Areas.--
(1) In general.--Notwithstanding any other provision of
law, the Governor of a State, with the concurrence of the
State legislature, may submit to the Secretary a petition
requesting that the Secretary make a new producing area of
the State eligible for oil leasing, gas leasing, or both, as
determined by the State, in accordance with the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) and the
Mineral Leasing Act (30 U.S.C. 181 et seq.).
(2) Action by secretary.--As soon as practicable after the
date on which the Secretary receives a petition under
paragraph (1), the Secretary shall approve or disapprove the
petition.
(c) Disposition of Qualified Outer Continental Shelf
Revenues From Eligible Producing States.--Notwithstanding
section 9 of the Outer Continental Shelf Lands Act (43 U.S.C.
1338), for each applicable fiscal year, the Secretary of the
Treasury shall deposit--
(1) 50 percent of qualified revenues in the general fund of
the Treasury; and
(2) 50 percent of qualified revenues in a special account
in the Treasury, which the Secretary shall disburse to
eligible producing States for new producing areas, to be
allocated in accordance with subsection (d)(1).
(d) Allocation to Eligible Producing States.--
(1) In general.--The amount made available under subsection
(c)(2)(A) shall be allocated to eligible producing States in
amounts (based on a formula established by the Secretary by
regulation) that are inversely proportional to the respective
distances between the point on the coastline of each eligible
producing State that is closest to the geographic center of
the applicable leased tract and the geographic center of the
leased tract, as determined by the Secretary.
(2) Use.--Amounts allocated to an eligible producing State
under paragraph (1) shall be used to address the impacts of
any oil and natural gas exploration and production activities
under this section.
(e) Effect.--Nothing in this section affects--
(1) the amount of funds otherwise dedicated to the land and
water conservation fund established under section 2 of the
Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-
5); or
(2) any authority that permits energy production under any
other provision of law.
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Senate amendment submitted
June 24, 2008