Of a perfecting nature.

SA 1826. Mr. ROBERTS submitted an amendment intended to be proposed
by him to the bill S. 1813, to reauthorize Federal-aid highway and
highway safety construction programs, and for other purposes; as
follows:

At the end, insert the following:

DIVISION E--ENERGY PROVISIONS AND TAX EXTENDERS

TITLE I--ENERGY INCENTIVES

Subtitle A--Keystone XL Pipeline Project

SEC. 50001. APPROVAL OF KEYSTONE XL PIPELINE PROJECT.

(a) Approval of Cross-border Facilities.--
(1) In general.--In accordance with section 8 of article 1
of the Constitution (delegating to Congress the power to
regulate commerce with foreign nations), TransCanada Keystone
Pipeline, L.P. is authorized to construct, connect, operate,
and maintain pipeline facilities, subject to subsection (c),
for the import of crude oil and other hydrocarbons at the
United States-Canada Border at Phillips County, Montana, in
accordance with the application filed with the Department of
State on September 19, 2008 (as supplemented and amended).
(2) Permit.--Notwithstanding any other provision of law, no
permit pursuant to Executive Order 13337 (3 U.S.C. 301 note)
or any other similar Executive Order regulating construction,
connection, operation, or maintenance of facilities at the
borders of the United States, and no additional environmental
impact statement, shall be required for TransCanada Keystone
Pipeline, L.P. to construct, connect, operate, and maintain
the facilities described in paragraph (1).
(b) Construction and Operation of Keystone XL Pipeline in
United States.--
(1) In general.--The final environmental impact statement
issued by the Department of State on August 26, 2011, shall
be considered to satisfy all requirements of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and
any other provision of law that requires Federal agency
consultation or review with respect to the cross-border
facilities described in subsection (a)(1) and the related
facilities in the United States described in the application
filed with the Department of State on September 19, 2008 (as
supplemented and amended).
(2) Permits.--Any Federal permit or authorization issued
before the date of enactment of this Act for the cross-border
facilities described in subsection (a)(1), and the related
facilities in the United States described in the application
filed with the Department of State on September 19, 2008 (as
supplemented and amended), shall remain in effect.
(c) Conditions.--In constructing, connecting, operating,
and maintaining the cross-border facilities described in
subsection (a)(1) and related facilities in the United States
described in the application filed with the Department of
State on September 19, 2008 (as supplemented and amended),
TransCanada Keystone Pipeline, L.P. shall comply with the
following conditions:
(1) TransCanada Keystone Pipeline, L.P. shall comply with
all applicable Federal and State laws (including regulations)
and all applicable industrial codes regarding the
construction, connection, operation, and maintenance of the
facilities.
(2) Except as provided in subsection (a)(2), TransCanada
Keystone Pipeline, L.P. shall comply with all requisite
permits from Canadian authorities and applicable Federal,
State, and local government agencies in the United States.
(3) TransCanada Keystone Pipeline, L.P. shall take all
appropriate measures to prevent or mitigate any adverse
environmental impact or disruption of historic properties in
connection with the construction, connection, operation, and
maintenance of the facilities.
(4) The construction, connection, operation, and
maintenance of the facilities shall be--
(A) in all material respects, similar to that described
in--
(i) the application filed with the Department of State on
September 19, 2008 (as supplemented and amended); and
(ii) the final environmental impact statement described in
subsection (b)(1); and
(B) carried out in accordance with--
(i) the construction, mitigation, and reclamation measures
agreed to for the project in the construction mitigation and
reclamation plan contained in appendix B of the final
environmental impact statement described in subsection
(b)(1);
(ii) the special conditions agreed to between the owners
and operators of the project and the Administrator of the
Pipeline and Hazardous Materials Safety Administration of the
Department of Transportation, as contained in appendix U of
the final environmental impact statement;
(iii) the measures identified in appendix H of the final
environmental impact statement, if the modified route
submitted by the State of Nebraska to the Secretary of State
crosses the Sand Hills region; and
(iv) the stipulations identified in appendix S of the final
environmental impact statement.
(d) Route in Nebraska.--
(1) In general.--Any route and construction, mitigation,
and reclamation measures for the project in the State of
Nebraska that is identified by the State of Nebraska and
submitted to the Secretary of State under this section is
considered sufficient for the purposes of this section.
(2) Prohibition.--Construction of the facilities in the
United States described in the application filed with the
Department of State on September 19, 2008 (as supplemented
and amended), shall not commence in the State of Nebraska
until the date on which the Secretary of State receives a
route for the project in the State of Nebraska that is
identified by the State of Nebraska.
(3) Receipt.--On the date of receipt of the route described
in paragraph (1) by the Secretary of State, the route for the
project within the State of Nebraska under this section shall
supersede the route for the project in the State specified in
the application filed with the Department of State on
September 19, 2008 (including supplements and amendments).
(4) Cooperation.--Not later than 30 days after the date on
which the State of Nebraska submits a request to the
Secretary of State or any appropriate Federal official, the
Secretary of State or Federal official shall provide
assistance that is consistent with the law of the State of
Nebraska.
(e) Administration.--
(1) In general.--Any action taken to carry out this section
(including the modification of any route under subsection
(d)) shall not constitute a major Federal action under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.).
(2) State siting authority.--Nothing in this section alters
any provision of State law relating to the siting of
pipelines.
(3) Private property.--Nothing in this section alters any
Federal, State, or local process or condition in effect on
the date of enactment of this Act that is necessary to secure
access from an owner of private property to construct the
project.
(f) Federal Judicial Review.--The cross-border facilities
described in subsection (a)(1), and the related facilities in
the United States described in the application filed with the
Department of State on September 19, 2008 (as supplemented
and amended), that are approved by this section, and any
permit, right-of-way, or other action taken to construct or
complete the project pursuant to Federal law, shall only be
subject to judicial review on direct appeal to the United
States Court of Appeals for the District of Columbia Circuit.

Subtitle B--Expanding Offshore Energy Development

SEC. 50101. OUTER CONTINENTAL SHELF LEASING PROGRAM.

Section 18(a) of the Outer Continental Shelf Lands Act (43
U.S.C. 1344(a)) is amended by adding at the end the
following:
``(5)(A) In each oil and gas leasing program under this
section, the Secretary shall make available for leasing and
conduct lease sales including--
``(i) at least 50 percent of the available unleased acreage
within each outer Continental Shelf planning area considered
to have the largest undiscovered, technically recoverable oil
and gas resources (on a total btu basis) based upon the most
recent national geologic assessment of the outer Continental
Shelf, with an emphasis on offering the most geologically
prospective parts of the planning area; and
``(ii) any State subdivision of an outer Continental Shelf
planning area that the Governor of the State that represents
that subdivision requests be made available for leasing.
``(B) In this paragraph the term `available unleased
acreage' means that portion of the outer Continental Shelf
that is not under lease at the time of a proposed lease sale,
and that has not otherwise been made unavailable for leasing
by law.
``(6)(A) In the 2012 2017 5-year oil and gas leasing
program, the Secretary shall make available for leasing any
outer Continental Shelf planning areas that--
``(i) are estimated to contain more than 2,500,000,000
barrels of oil; or
``(ii) are estimated to contain more than 7,500,000,000,000
cubic feet of natural gas.
``(B) To determine the planning areas described in
subparagraph (A), the Secretary shall use the document
entitled `Minerals Management Service Assessment of
Undiscovered Technically Recoverable Oil and Gas Resources of
the Nation's Outer Continental Shelf, 2006'.''.

SEC. 50102. DOMESTIC OIL AND NATURAL GAS PRODUCTION GOAL.

Section 18(b) of the Outer Continental Shelf Lands Act (43
U.S.C. 1344(b)) is amended to read as follows:
``(b) Domestic Oil and Natural Gas Production Goal.--

[[Page S1549]]

``(1) In general.--In developing a 5-year oil and gas
leasing program, and subject to paragraph (2), the Secretary
shall determine a domestic strategic production goal for the
development of oil and natural gas as a result of that
program. Such goal shall be--
``(A) the best estimate of the possible increase in
domestic production of oil and natural gas from the outer
Continental Shelf;
``(B) focused on meeting domestic demand for oil and
natural gas and reducing the dependence of the United States
on foreign energy; and
``(C) focused on the production increases achieved by the
leasing program at the end of the 15-year period beginning on
the effective date of the program.
``(2) 2012 2017 program goal.--For purposes of the 2012
2017 5-year oil and gas leasing program, the production goal
referred to in paragraph (1) shall be an increase by 2027
of--
``(A) no less than 3,000,000 barrels in the amount of oil
produced per day; and
``(B) no less than 10,000,000,000 cubic feet in the amount
of natural gas produced per day.
``(3) Reporting.--The Secretary shall report annually,
beginning at the end of the 5-year period for which the
program applies, to the Committee on Natural Resources of the
House of Representatives and the Committee on Energy and
Natural Resources of the Senate on the progress of the
program in meeting the production goal. The Secretary shall
identify in the report projections for production and any
problems with leasing, permitting, or production that will
prevent meeting the goal.''.

Subtitle C--Conducting Prompt Offshore Lease Sales

SEC. 50201. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE
SALE 216 IN THE CENTRAL GULF OF MEXICO.

(a) In General.--The Secretary of the Interior shall
conduct offshore oil and gas Lease Sale 216 under section 8
of the Outer Continental Shelf Lands Act (33 U.S.C. 1337) as
soon as practicable, but not later than 4 months after the
date of enactment of this Act.
(b) Environmental Review.--For the purposes of that lease
sale, the Environmental Impact Statement for the 2007 2012 5
Year OUTER CONTINENTAL SHELF Plan and the Multi-Sale
Environmental Impact Statement are deemed to satisfy the
requirements of the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.).

SEC. 50202. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE
SALE 220 ON THE OUTER CONTINENTAL SHELF
OFFSHORE VIRGINIA.

(a) In General.--Notwithstanding the inclusion of Lease
Sale 220 in the fiscal years 2012 through fiscal year 2017 5
Year Outer Continental Shelf Oil and Gas Leasing Program, the
Secretary shall conduct offshore oil and gas Lease Sale 220
under section 8 of the Outer Continental Shelf Lands Act (33
U.S.C. 1337) as soon as practicable, but not later than one
year after the date of enactment of this Act.
(b) Prohibition on Conflicts With Military Operations.--No
person may engage in any exploration, development, or
production of oil or natural gas off the coast of Virginia
that would conflict with any military operation, as
determined in accordance with the Memorandum of Agreement
between the Department of Defense and the Department of the
Interior on Mutual Concerns on the Outer Continental Shelf
signed July 20, 1983, and any revision or replacement for
that agreement that is agreed to by the Secretary of Defense
and the Secretary of the Interior after that date but before
the date of issuance of the lease under which such
exploration, development, or production is conducted.

SEC. 50203. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE
SALE 222 IN THE CENTRAL GULF OF MEXICO.

(a) In General.--The Secretary shall conduct offshore oil
and gas Lease Sale 222 under section 8 of the Outer
Continental Shelf Lands Act (33 U.S.C. 1337) as soon as
practicable, but not later than September 1, 2012.
(b) Environmental Review.--For the purposes of that lease
sale, the Environmental Impact Statement for the 2007 2012 5
Year OUTER CONTINENTAL SHELF Plan and the Multi-Sale
Environmental Impact Statement are deemed to satisfy the
requirements of the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.).

SEC. 50204. ADDITIONAL LEASES.

Section 18 of the Outer Continental Shelf Lands Act (43
U.S.C. 1344) is amended by adding at the end the following:
``(i) Additional Lease Sales.--In addition to lease sales
in accordance with a leasing program in effect under this
section, the Secretary may hold lease sales for areas
identified by the Secretary to have the greatest potential
for new oil and gas development as a result of local support,
new seismic findings, or nomination by interested persons.''.

SEC. 50205. DEFINITIONS.

In this title:
(1) The term ``Environmental Impact Statement for the 2007
2012 5 Year OUTER CONTINENTAL SHELF Plan'' means the Final
Environmental Impact Statement for Outer Continental Shelf
Oil and Gas Leasing Program: 2007 2012 (April 2007) prepared
by the Secretary.
(2) The term ``Multi-Sale Environmental Impact Statement''
means the Environmental Impact Statement for Proposed Western
Gulf of Mexico OUTER CONTINENTAL SHELF Oil and Gas Lease
Sales 204, 207, 210, 215, and 218, and Proposed Central Gulf
of Mexico OUTER CONTINENTAL SHELF Oil and Gas Lease Sales
205, 206, 208, 213, 216, and 222 (September 2008) prepared by
the Secretary.
(3) The term ``Secretary'' means the Secretary of the
Interior.

Subtitle D--Leasing in New Offshore Areas

SEC. 50301. LEASING IN THE EASTERN GULF OF MEXICO.

Section 104 of division C of the Tax Relief and Health Care
Act of 2006 (Public Law 109 432; 120 Stat. 3003) is repealed.

SEC. 50302. LEASING OFFSHORE OF TERRITORIES OF THE UNITED
STATES.

Section 2(a) of the Outer Continental Shelf Lands Act (43
U.S.C. 1331) is amended, by inserting after ``control'' the
following: ``or lying within the United States' exclusive
economic zone and the Continental Shelf adjacent to the
Commonwealth of Puerto Rico, the Commonwealth of the Northern
Mariana Islands, the Virgin Islands, American Samoa, Guam, or
the other territories of the United States''.

Subtitle E--Outer Continental Shelf Revenue Sharing

SEC. 50401. DISPOSITION OF OUTER CONTINENTAL SHELF REVENUES.

Section 9 of the Outer Continental Shelf Lands Act (43
U.S.C. 1338) is amended--
(1) in the existing text--
(A) in the first sentence, by striking ``All rentals,'' and
inserting the following:
``(c) Disposition of Revenue Under Old Leases.--All
rentals,''; and
(B) in subsection (c) (as designated by the amendment made
by subparagraph (A) of this paragraph), by striking ``for the
period from June 5, 1950, to date, and thereafter'' and
inserting ``in the period beginning June 5, 1950, and ending
on the date of enactment of the Moving Ahead for Progress in
the 21st Century Act'';
(2) by adding after subsection (c) (as so designated) the
following:
``(d)  New Leasing Revenues Defined.--In this section the
term `new leasing revenues' means amounts received by the
United States as bonuses, rents, and royalties under leases
for oil and gas, wind, tidal, or other energy exploration,
development, and production that are awarded under this Act
after the date of enactment of the Moving Ahead for Progress
in the 21st Century Act.''; and
(3) by inserting before subsection (c) (as so designated)
the following:
``(a) Payment of New Leasing Revenues to Coastal States,
Generally.--
``(1) In general.--Of the amount of new leasing revenues
received by the United States each fiscal year that is
described in paragraph (2), 37.5 percent shall be allocated
and paid in accordance with subsection (b) to coastal States
that are affected States with respect to the leases under
which those revenues are received by the United States.
``(2) Phase-in.--The amount of new leasing revenues
referred to in paragraph (1) is the sum determined by
adding--
``(A) 35 percent of new leasing revenues received by the
United States in the fiscal year under--
``(i) leases awarded under the first leasing program under
section 18(a) that takes effect after the date of enactment
of the Moving Ahead for Progress in the 21st Century Act; and
``(ii) other leases issued as a result of the enactment of
that Act;
``(B) 70 percent of new leasing revenues received by the
United States in the fiscal year under leases awarded under
the second such leasing program; and
``(C) 100 percent of new leasing revenues received by the
United States under leases awarded under the third such
leasing program or any such leasing program taking effect
thereafter.
``(b) Allocation of Payments to Coastal States.--
``(1) In general.--The amount of new leasing revenues
received by the United States with respect to a leased tract
that are required to be paid to coastal States in accordance
with this subsection each fiscal year shall be allocated
among and paid to such States that are within 200 miles of
the leased tract, in amounts that are inversely proportional
to the respective distances between the point on the
coastline of each such State that is closest to the
geographic center of the lease tract, as determined by the
Secretary.
``(2) Minimum and maximum allocation.--The amount allocated
to a coastal State under paragraph (1) each fiscal year with
respect to a leased tract shall be--
``(A) in the case of a coastal State that is the nearest
State to the geographic center of the leased tract, not less
than 25 percent of the total amounts allocated with respect
to the leased tract; and
``(B) in the case of any other coastal State, not less than
10 percent, and not more than 15 percent, of the total
amounts allocated with respect to the leased tract.
``(3) Administration.--Amounts allocated to a coastal State
under this subsection--
``(A) shall be available to the State without further
appropriation;
``(B) shall remain available until expended; and
``(C) shall be in addition to any other amounts available
to the State under this Act.
``(4) Use of funds.--
``(A) In general.--Except as provided in subparagraph (B),
a coastal State may use

[[Page S1550]]

funds allocated and paid to it under this subsection for any
purpose as determined by State law.
``(B) Restriction on use for matching.--Funds allocated and
paid to a coastal State under this subsection may not be used
as matching funds for any other Federal program.''.

Subtitle F--Coastal Plain

SEC. 50501. DEFINITIONS.

In this title:
(1) Coastal plain.--The term ``Coastal Plain'' means that
area described in appendix I to part 37 of title 50, Code of
Federal Regulations.
(2) Peer reviewed.--The term ``peer reviewed'' means
reviewed--
(A) by individuals chosen by the National Academy of
Sciences with no contractual relationship with or those who
have an application for a grant or other funding pending with
the Federal agency with leasing jurisdiction; or
(B) if individuals described in subparagraph (A) are not
available, by the top individuals in the specified biological
fields, as determined by the National Academy of Sciences.
(3) Secretary.--The term ``Secretary'', except as otherwise
provided, means the Secretary of the Interior or the
Secretary's designee.

SEC. 50502. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL
PLAIN.

(a) In General.--The Secretary shall take such actions as
are necessary--
(1) to establish and implement, in accordance with this
title and acting through the Director of the Bureau of Land
Management in consultation with the Director of the United
States Fish and Wildlife Service, a competitive oil and gas
leasing program that will result in the exploration,
development, and production of the oil and gas resources of
the Coastal Plain; and
(2) to administer the provisions of this title through
regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that ensure
the oil and gas exploration, development, and production
activities on the Coastal Plain will result in no significant
adverse effect on fish and wildlife, their habitat,
subsistence resources, and the environment, including, in
furtherance of this goal, by requiring the application of the
best commercially available technology for oil and gas
exploration, development, and production to all exploration,
development, and production operations under this title in a
manner that ensures the receipt of fair market value by the
public for the mineral resources to be leased.
(b) Repeal of Existing Restriction.--
(1) Repeal.--Section 1003 of the Alaska National Interest
Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
(2) Conforming amendment.--The table of contents in section
1 of such Act is amended by striking the item relating to
section 1003.
(c) Compliance With Requirements Under Certain Other
Laws.--
(1) Compatibility.--For purposes of the National Wildlife
Refuge System Administration Act of 1966 (16 U.S.C. 668dd et
seq.), the oil and gas leasing program and activities
authorized by this section in the Coastal Plain are deemed to
be compatible with the purposes for which the Arctic National
Wildlife Refuge was established, and no further findings or
decisions are required to implement this determination.
(2) Adequacy of the department of the interior's
legislative environmental impact statement.--The ``Final
Legislative Environmental Impact Statement'' (April 1987) on
the Coastal Plain prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980 (16
U.S.C. 3142) and section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is
deemed to satisfy the requirements under the National
Environmental Policy Act of 1969 that apply with respect to
prelease activities under this title, including actions
authorized to be taken by the Secretary to develop and
promulgate the regulations for the establishment of a leasing
program authorized by this title before the conduct of the
first lease sale.
(3) Compliance with nepa for other actions.--Before
conducting the first lease sale under this title, the
Secretary shall prepare an environmental impact statement
under the National Environmental Policy Act of 1969 with
respect to the actions authorized by this title that are not
referred to in paragraph (2). Notwithstanding any other law,
the Secretary is not required to identify nonleasing
alternative courses of action or to analyze the environmental
effects of such courses of action. The Secretary shall only
identify a preferred action for such leasing and a single
leasing alternative, and analyze the environmental effects
and potential mitigation measures for those two alternatives.
The identification of the preferred action and related
analysis for the first lease sale under this title shall be
completed within 18 months after the date of enactment of
this Act. The Secretary shall only consider public comments
that specifically address the Secretary's preferred action
and that are filed within 20 days after publication of an
environmental analysis. Notwithstanding any other law,
compliance with this paragraph is deemed to satisfy all
requirements for the analysis and consideration of the
environmental effects of proposed leasing under this title.
(d) Relationship to State and Local Authority.--Nothing in
this title shall be considered to expand or limit State and
local regulatory authority.
(e) Special Areas.--
(1) In general.--The Secretary, after consultation with the
State of Alaska, the city of Kaktovik, and the North Slope
Borough, may designate up to a total of 45,000 acres of the
Coastal Plain as a Special Area if the Secretary determines
that the Special Area is of such unique character and
interest so as to require special management and regulatory
protection. The Secretary shall designate as such a Special
Area the Sadlerochit Spring area, comprising approximately
4,000 acres.
(2) Management.--Each such Special Area shall be managed so
as to protect and preserve the area's unique and diverse
character including its fish, wildlife, and subsistence
resource values.
(3) Exclusion from leasing or surface occupancy.--The
Secretary may exclude any Special Area from leasing. If the
Secretary leases a Special Area, or any part thereof, for
purposes of oil and gas exploration, development, production,
and related activities, there shall be no surface occupancy
of the lands comprising the Special Area.
(4) Directional drilling.--Notwithstanding the other
provisions of this subsection, the Secretary may lease all or
a portion of a Special Area under terms that permit the use
of horizontal drilling technology from sites on leases tracts
located outside the Special Area.
(f) Limitation on Closed Areas.--The Secretary's sole
authority to close lands within the Coastal Plain to oil and
gas leasing and to exploration, development, and production
is that set forth in this title.
(g) Regulations.--
(1) In general.--The Secretary shall prescribe such
regulations as may be necessary to carry out this title,
including regulations relating to protection of the fish and
wildlife, their habitat, subsistence resources, and
environment of the Coastal Plain, by no later than 15 months
after the date of enactment of this Act.
(2) Revision of regulations.--The Secretary shall, through
a rule making conducted in accordance with section 553 of
title 5, United States Code, periodically review and, if
appropriate, revise the regulations issued under subsection
(a) to reflect a preponderance of the best available
scientific evidence that has been peer reviewed and obtained
by following appropriate, documented scientific procedures,
the results of which can be repeated using those same
procedures.

SEC. 50503. LEASE SALES.

(a) In General.--Lands may be leased under this title to
any person qualified to obtain a lease for deposits of oil
and gas under the Mineral Leasing Act (30 U.S.C. 181 et
seq.).
(b) Procedures.--The Secretary shall, by regulation and no
later than 180 days after the date of enactment of this
title, establish procedures for--
(1) receipt and consideration of sealed nominations for any
area of the Coastal Plain for inclusion in, or exclusion (as
provided in subsection (c)) from, a lease sale;
(2) the holding of lease sales after such nomination
process; and
(3) public notice of and comment on designation of areas to
be included in, or excluded from, a lease sale.
(c) Lease Sale Bids.--Lease sales under this title may be
conducted through an Internet leasing program, if the
Secretary determines that such a system will result in
savings to the taxpayer, an increase in the number of bidders
participating, and higher returns than oral bidding or a
sealed bidding system.
(d) Sale Acreages and Schedule.--
(1) The Secretary shall offer for lease under this title
those tracts the Secretary considers to have the greatest
potential for the discovery of hydrocarbons, taking into
consideration nominations received pursuant to subsection
(b)(1).
(2) The Secretary shall offer for lease under this title no
less than 50,000 acres for lease within 22 months after the
date of the enactment of this Act.
(3) The Secretary shall offer for lease under this title no
less than an additional 50,000 acres at 6-, 12-, and 18-month
intervals following offering under paragraph (2).
(4) The Secretary shall conduct four additional sales under
the same terms and schedule no later than two years after the
date of the last sale under paragraph (3), if sufficient
interest in leasing exists to warrant, in the Secretary's
judgment, the conduct of such sales.
(5) The Secretary shall evaluate the bids in each sale and
issue leases resulting from such sales, within 90 days after
the date of the completion of such sale.

SEC. 50504. GRANT OF LEASES BY THE SECRETARY.

(a) In General.--The Secretary may grant to the highest
responsible qualified bidder in a lease sale conducted under
section 55003 any lands to be leased on the Coastal Plain
upon payment by the such bidder of such bonus as may be
accepted by the Secretary.
(b) Subsequent Transfers.--No lease issued under this title
may be sold, exchanged, assigned, sublet, or otherwise
transferred except with the approval of the Secretary. Prior
to any such approval the Secretary shall consult with, and
give due consideration to the views of, the Attorney General.

SEC. 50505. LEASE TERMS AND CONDITIONS.

(a) In General.--An oil or gas lease issued under this
title shall--

[[Page S1551]]

(1) provide for the payment of a royalty of not less than
12\1/2\ percent in amount or value of the production removed
or sold under the lease, as determined by the Secretary under
the regulations applicable to other Federal oil and gas
leases;
(2) provide that the Secretary may close, on a seasonal
basis, portions of the Coastal Plain to exploratory drilling
activities as necessary to protect caribou calving areas and
other species of fish and wildlife based on a preponderance
of the best available scientific evidence that has been peer
reviewed and obtained by following appropriate, documented
scientific procedures, the results of which can be repeated
using those same procedures;
(3) require that the lessee of lands within the Coastal
Plain shall be fully responsible and liable for the
reclamation of lands within the Coastal Plain and any other
Federal lands that are adversely affected in connection with
exploration, development, production, or transportation
activities conducted under the lease and within the Coastal
Plain by the lessee or by any of the subcontractors or agents
of the lessee;
(4) provide that the lessee may not delegate or convey, by
contract or otherwise, the reclamation responsibility and
liability to another person without the express written
approval of the Secretary;
(5) provide that the standard of reclamation for lands
required to be reclaimed under this title shall be, as nearly
as practicable, a condition capable of supporting the uses
which the lands were capable of supporting prior to any
exploration, development, or production activities, or upon
application by the lessee, to a higher or better use as
certified by the Secretary;
(6) contain terms and conditions relating to protection of
fish and wildlife, their habitat, subsistence resources, and
the environment as required pursuant to section 55002(a)(2);
(7) provide that the lessee, its agents, and its
contractors use best efforts to provide a fair share, as
determined by the level of obligation previously agreed to in
the 1974 agreement implementing section 29 of the Federal
Agreement and Grant of Right of Way for the Operation of the
Trans-Alaska Pipeline, of employment and contracting for
Alaska Natives and Alaska Native corporations from throughout
the State;
(8) prohibit the export of oil produced under the lease;
and
(9) contain such other provisions as the Secretary
determines necessary to ensure compliance with this title and
the regulations issued under this title.

SEC. 50506. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

(a) No Significant Adverse Effect Standard To Govern
Authorized Coastal Plain Activities.--The Secretary shall,
consistent with the requirements of section 55002, administer
this title through regulations, lease terms, conditions,
restrictions, prohibitions, stipulations, and other
provisions that--
(1) ensure the oil and gas exploration, development, and
production activities on the Coastal Plain will result in no
significant adverse effect on fish and wildlife, their
habitat, and the environment;
(2) require the application of the best commercially
available technology for oil and gas exploration,
development, and production on all new exploration,
development, and production operations; and
(3) ensure that the maximum amount of surface acreage
covered by production and support facilities, including
airstrips and any areas covered by gravel berms or piers for
support of pipelines, does not exceed 10,000 acres on the
Coastal Plain for each 100,000 acres of area leased.
(b) Site-Specific Assessment and Mitigation.--The Secretary
shall also require, with respect to any proposed drilling and
related activities, that--
(1) a site-specific analysis be made of the probable
effects, if any, that the drilling or related activities will
have on fish and wildlife, their habitat, subsistence
resources, and the environment;
(2) a plan be implemented to avoid, minimize, and mitigate
(in that order and to the extent practicable) any significant
adverse effect identified under paragraph (1); and
(3) the development of the plan shall occur after
consultation with the agency or agencies having jurisdiction
over matters mitigated by the plan.
(c) Regulations To Protect Coastal Plain Fish and Wildlife
Resources, Subsistence Users, and the Environment.--Before
implementing the leasing program authorized by this title,
the Secretary shall prepare and promulgate regulations, lease
terms, conditions, restrictions, prohibitions, stipulations,
and other measures designed to ensure that the activities
undertaken on the Coastal Plain under this title are
conducted in a manner consistent with the purposes and
environmental requirements of this title.
(d) Compliance With Federal and State Environmental Laws
and Other Requirements.--The proposed regulations, lease
terms, conditions, restrictions, prohibitions, and
stipulations for the leasing program under this title shall
require compliance with all applicable provisions of Federal
and State environmental law, and shall also require the
following:
(1) Standards at least as effective as the safety and
environmental mitigation measures set forth in items 1
through 29 at pages 167 through 169 of the ``Final
Legislative Environmental Impact Statement'' (April 1987) on
the Coastal Plain.
(2) Seasonal limitations on exploration, development, and
related activities, where necessary, to avoid significant
adverse effects during periods of concentrated fish and
wildlife breeding, denning, nesting, spawning, and migration
based on a preponderance of the best available scientific
evidence that has been peer reviewed and obtained by
following appropriate, documented scientific procedures, the
results of which can be repeated using those same procedures.
(3) That exploration activities, except for surface
geological studies, be limited to the period between
approximately November 1 and May 1 each year and that
exploration activities shall be supported, if necessary, by
ice roads, winter trails with adequate snow cover, ice pads,
ice airstrips, and air transport methods, except that such
exploration activities may occur at other times if the
Secretary finds that such exploration will have no
significant adverse effect on the fish and wildlife, their
habitat, and the environment of the Coastal Plain.
(4) Design safety and construction standards for all
pipelines and any access and service roads, that--
(A) minimize, to the maximum extent possible, adverse
effects upon the passage of migratory species such as
caribou; and
(B) minimize adverse effects upon the flow of surface water
by requiring the use of culverts, bridges, and other
structural devices.
(5) Prohibitions on general public access and use on all
pipeline access and service roads.
(6) Stringent reclamation and rehabilitation requirements,
consistent with the standards set forth in this title,
requiring the removal from the Coastal Plain of all oil and
gas development and production facilities, structures, and
equipment upon completion of oil and gas production
operations, except that the Secretary may exempt from the
requirements of this paragraph those facilities, structures,
or equipment that the Secretary determines would assist in
the management of the Arctic National Wildlife Refuge and
that are donated to the United States for that purpose.
(7) Appropriate prohibitions or restrictions on access by
all modes of transportation.
(8) Appropriate prohibitions or restrictions on sand and
gravel extraction.
(9) Consolidation of facility siting.
(10) Appropriate prohibitions or restrictions on use of
explosives.
(11) Avoidance, to the extent practicable, of springs,
streams, and river systems; the protection of natural surface
drainage patterns, wetlands, and riparian habitats; and the
regulation of methods or techniques for developing or
transporting adequate supplies of water for exploratory
drilling.
(12) Avoidance or minimization of air traffic-related
disturbance to fish and wildlife.
(13) Treatment and disposal of hazardous and toxic wastes,
solid wastes, reserve pit fluids, drilling muds and cuttings,
and domestic wastewater, including an annual waste management
report, a hazardous materials tracking system, and a
prohibition on chlorinated solvents, in accordance with
applicable Federal and State environmental law.
(14) Fuel storage and oil spill contingency planning.
(15) Research, monitoring, and reporting requirements.
(16) Field crew environmental briefings.
(17) Avoidance of significant adverse effects upon
subsistence hunting, fishing, and trapping by subsistence
users.
(18) Compliance with applicable air and water quality
standards.
(19) Appropriate seasonal and safety zone designations
around well sites, within which subsistence hunting and
trapping shall be limited.
(20) Reasonable stipulations for protection of cultural and
archeological resources.
(21) All other protective environmental stipulations,
restrictions, terms, and conditions deemed necessary by the
Secretary.
(e) Considerations.--In preparing and promulgating
regulations, lease terms, conditions, restrictions,
prohibitions, and stipulations under this section, the
Secretary shall consider the following:
(1) The stipulations and conditions that govern the
National Petroleum Reserve-Alaska leasing program, as set
forth in the 1999 Northeast National Petroleum Reserve-Alaska
Final Integrated Activity Plan/Environmental Impact
Statement.
(2) The environmental protection standards that governed
the initial Coastal Plain seismic exploration program under
parts 37.31 to 37.33 of title 50, Code of Federal
Regulations.
(3) The land use stipulations for exploratory drilling on
the KIC ASRC private lands that are set forth in appendix 2
of the August 9, 1983, agreement between Arctic Slope
Regional Corporation and the United States.
(f) Facility Consolidation Planning.--
(1) In general.--The Secretary shall, after providing for
public notice and comment, prepare and update periodically a
plan to govern, guide, and direct the siting and construction
of facilities for the exploration, development, production,
and transportation of Coastal Plain oil and gas resources.
(2) Objectives.--The plan shall have the following
objectives:
(A) Avoiding unnecessary duplication of facilities and
activities.

[[Page S1552]]

(B) Encouraging consolidation of common facilities and
activities.
(C) Locating or confining facilities and activities to
areas that will minimize impact on fish and wildlife, their
habitat, and the environment.
(D) Utilizing existing facilities wherever practicable.
(E) Enhancing compatibility between wildlife values and
development activities.
(g) Access to Public Lands.--The Secretary shall--
(1) manage public lands in the Coastal Plain subject to of
section 811 of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3121); and
(2) ensure that local residents shall have reasonable
access to public lands in the Coastal Plain for traditional
uses.

SEC. 50507. EXPEDITED JUDICIAL REVIEW.

(a) Filing of Complaint.--
(1) Deadline.--Subject to paragraph (2), any complaint
seeking judicial review--
(A) of any provision of this title shall be filed by not
later than 1 year after the date of enactment of this Act; or
(B) of any action of the Secretary under this title shall
be filed--
(i) except as provided in clause (ii), within the 90-day
period beginning on the date of the action being challenged;
or
(ii) in the case of a complaint based solely on grounds
arising after such period, within 90 days after the
complainant knew or reasonably should have known of the
grounds for the complaint.
(2) Venue.--Any complaint seeking judicial review of any
provision of this title or any action of the Secretary under
this title may be filed only in the United States Court of
Appeals for the District of Columbia.
(3) Limitation on scope of certain review.--Judicial review
of a Secretarial decision to conduct a lease sale under this
title, including the environmental analysis thereof, shall be
limited to whether the Secretary has complied with this title
and shall be based upon the administrative record of that
decision. The Secretary's identification of a preferred
course of action to enable leasing to proceed and the
Secretary's analysis of environmental effects under this
title shall be presumed to be correct unless shown otherwise
by clear and convincing evidence to the contrary.
(b) Limitation on Other Review.--Actions of the Secretary
with respect to which review could have been obtained under
this section shall not be subject to judicial review in any
civil or criminal proceeding for enforcement.
(c) Limitation on Attorneys' Fees and Court Costs.--No
person seeking judicial review of any action under this title
shall receive payment from the Federal Government for their
attorneys' fees and other court costs, including under any
provision of law enacted by the Equal Access to Justice Act
(5 U.S.C. 504 note).

SEC. 50508. TREATMENT OF REVENUES.

Notwithstanding any other provision of law, 50 percent of
the amount of bonus, rental, and royalty revenues from
Federal oil and gas leasing and operations authorized under
this title shall be deposited in the Treasury.

SEC. 50509. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

(a) In General.--The Secretary shall issue rights-of-way
and easements across the Coastal Plain for the transportation
of oil and gas produced under leases under this title--
(1) except as provided in paragraph (2), under section 28
of the Mineral Leasing Act (30 U.S.C. 185), without regard to
title XI of the Alaska National Interest Lands Conservation
Act (16 U.S.C. 3161 et seq.); and
(2) under title XI of the Alaska National Interest Lands
Conservation Act (30 U.S.C. 3161 et seq.), for access
authorized by sections 1110 and 1111 of that Act (16 U.S.C.
3170 and 3171).
(b) Terms and Conditions.--The Secretary shall include in
any right-of-way or easement issued under subsection (a) such
terms and conditions as may be necessary to ensure that
transportation of oil and gas does not result in a
significant adverse effect on the fish and wildlife,
subsistence resources, their habitat, and the environment of
the Coastal Plain, including requirements that facilities be
sited or designed so as to avoid unnecessary duplication of
roads and pipelines.
(c) Regulations.--The Secretary shall include in
regulations under section 55002(g) provisions granting
rights-of-way and easements described in subsection (a) of
this section.

SEC. 50510. CONVEYANCE.

In order to maximize Federal revenues by removing clouds on
title to lands and clarifying land ownership patterns within
the Coastal Plain, the Secretary, notwithstanding section
1302(h)(2) of the Alaska National Interest Lands Conservation
Act (16 U.S.C. 3192(h)(2)), shall convey--
(1) to the Kaktovik Inupiat Corporation the surface estate
of the lands described in paragraph 1 of Public Land Order
6959, to the extent necessary to fulfill the Corporation's
entitlement under sections 12 and 14 of the Alaska Native
Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance
with the terms and conditions of the Agreement between the
Department of the Interior, the United States Fish and
Wildlife Service, the Bureau of Land Management, and the
Kaktovik Inupiat Corporation dated January 22, 1993; and
(2) to the Arctic Slope Regional Corporation the remaining
subsurface estate to which it is entitled pursuant to the
August 9, 1983, agreement between the Arctic Slope Regional
Corporation and the United States of America.

Subtitle G--Oil Shale and Tar Sands Leasing

SEC. 50601. EFFECTIVENESS OF OIL SHALE REGULATIONS,
AMENDMENTS TO RESOURCE MANAGEMENT PLANS, AND
RECORD OF DECISION.

(a) Regulations.--Notwithstanding any other law or
regulation to the contrary, the final regulations regarding
oil shale management published by the Bureau of Land
Management on November 18, 2008 (73 Fed. Reg. 69,414) are
deemed to satisfy all legal and procedural requirements under
any law, including the Federal Land Policy and Management Act
of 1976 (43 U.S.C. 1701 et seq.), the Endangered Species Act
of 1973 (16 U.S.C. 1531 et seq.), the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), and the Energy
Policy Act of 2005 (Public Law 109 58), and the Secretary of
the Interior shall implement those regulations, including the
oil shale and tar sands leasing program authorized by the
regulations, without any other administrative action
necessary.
(b) Amendments to Resource Management Plans and Record of
Decision.--Notwithstanding any other law or regulation to the
contrary, the November 17, 2008 U.S. Bureau of Land
Management Approved Resource Management Plan Amendments/
Record of Decision for Oil Shale and Tar Sands Resources to
Address Land Use Allocations in Colorado, Utah, and Wyoming
and Final Programmatic Environmental Impact Statement are
deemed to satisfy all legal and procedural requirements under
any law, including the Federal Land Policy and Management Act
of 1976 (43 U.S.C. 1701 et seq.), the Endangered Species Act
of 1973 (16 U.S.C. 1531 et seq.), the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), and the Energy
Policy Act of 2005 (Public Law 109 58), and the Secretary of
the Interior shall implement the oil shale and tar sands
leasing program authorized by the regulations referred to in
subsection (a) in those areas covered by the resource
management plans amended by such amendments, and covered by
such record of decision, without any other administrative
action necessary.

SEC. 50602. OIL SHALE AND TAR SANDS LEASING.

(a) Additional Research and Development Lease Sales.--The
Secretary of the Interior shall hold a lease sale within 180
days after the date of enactment of this Act offering an
additional 10 parcels for lease for research, development,
and demonstration of oil shale or tar sands resources, under
the terms offered in the solicitation of bids for such leases
published on January 15, 2009 (74 Fed. Reg. 10).
(b) Commercial Lease Sales.--No later than January 1, 2016,
the Secretary of the Interior shall hold no less than 5
separate commercial lease sales in areas considered to have
the most potential for oil shale or tar sands development, as
determined by the Secretary, in areas nominated through
public comment. Each lease sale shall be for an area of not
less than 25,000 acres, and in multiple lease blocs.
(c) Reduced Payments To Ensure Production.--The Secretary
of the Interior may temporarily reduce royalties, fees,
rentals, bonus, or other payments for leases of Federal lands
for the development and production of oil shale resources as
necessary to incentivize and encourage development of such
resources, if the Secretary determines that the royalties,
fees, rentals, bonus bids, and other payments otherwise
authorized by law are hindering production of such resources.

TITLE II--ENERGY TAX INCENTIVES

SEC. 51001. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING
HOMES.

(a) In General.--Paragraph (2) of section 25C(g) of the
Internal Revenue Code of 1986 is amended by striking
``December 31, 2011'' and inserting ``December 31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2011.

SEC. 51002. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE
REFUELING PROPERTY.

(a) Extension.--Paragraph (2) of section 30C(g) of the
Internal Revenue Code of 1986 is amended by striking
``December 31, 2011.'' and inserting ``December 31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2011.

SEC. 51003. EXTENSION OF INCENTIVES FOR BIODIESEL AND
RENEWABLE DIESEL.

(a) Credits for Biodiesel and Renewable Diesel Used as
Fuel.--Subsection (g) of section 40A of the Internal Revenue
Code of 1986 is amended by striking ``December 31, 2011'' and
inserting ``December 31, 2012''.
(b) Excise Tax Credits and Outlay Payments for Biodiesel
and Renewable Diesel Fuel Mixtures.--
(1) Paragraph (6) of section 6426(c) of the Internal
Revenue Code of 1986 is amended by striking ``December 31,
2011'' and inserting ``December 31, 2012''.
(2) Subparagraph (B) of section 6427(e)(6) of such Code is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(c) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2011.

SEC. 51004. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT
APPLIANCES.

(a) In General.--Section 45M(b) of the Internal Revenue
Code of 1986 is amended by

[[Page S1553]]

striking ``2011'' each place it appears other than in the
provisions specified in subsection (b), and inserting ``2011
or 2012''.
(b) Provisions Specified.--The provisions of section 45M(b)
of the Internal Revenue Code of 1986 specified in this
subsection are subparagraph (C) of paragraph (1) and
subparagraph (E) of paragraph (2).
(c) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2011.

SEC. 51005. EXTENSION OF SPECIAL RULE FOR SALES OR
DISPOSITIONS TO IMPLEMENT FERC OR STATE
ELECTRIC RESTRUCTURING POLICY FOR QUALIFIED
ELECTRIC UTILITIES.

(a) In General.--Paragraph (3) of section 451(i) of the
Internal Revenue Code of 1986 is amended by striking
``January 1, 2012'' and inserting ``January 1, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to dispositions after December 31, 2011.

SEC. 51006. EXTENSION OF SUSPENSION OF LIMITATION ON
PERCENTAGE DEPLETION FOR OIL AND GAS FROM
MARGINAL WELLS.

(a) In General.--Clause (ii) of section 613A(c)(6)(H) of
the Internal Revenue Code of 1986 is amended by striking
``January 1, 2012'' and inserting ``January 1, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.

SEC. 51007. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX
CREDITS.

(a) In General.--Sections 6426(d)(5), 6426(e)(3), and
6427(e)(6)(C) of the Internal Revenue Code of 1986 are each
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(b) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2011.

TITLE III--TAX EXTENDER PROVISIONS

SEC. 52000. AMENDMENTS TO 1986 CODE.

Except as otherwise expressly provided, whenever in this
title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of the Internal Revenue Code of 1986.

Subtitle A--Individual Tax Relief

SEC. 52001. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF
ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

(a) In General.--Subparagraph (D) of section 62(a)(2) is
amended by striking ``or 2011'' and inserting ``2011, or
2012''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.

SEC. 52002. EXTENSION OF DEDUCTION OF STATE AND LOCAL SALES
TAXES.

(a) In General.--Subparagraph (I) of section 164(b)(5) is
amended by striking ``January 1, 2012'' and inserting
``January 1, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.

SEC. 52003. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF
CAPITAL GAIN REAL PROPERTY MADE FOR
CONSERVATION PURPOSES.

(a) In General.--Clause (vi) of section 170(b)(1)(E) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(b) Contributions by Certain Corporate Farmers and
Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by
striking ``December 31, 2011'' and inserting ``December 31,
2012''.
(c) Effective Date.--The amendments made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2011.

SEC. 52004. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR
QUALIFIED TUITION AND RELATED EXPENSES.

(a) In General.--Subsection (e) of section 222 is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.

SEC. 52005. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM
INDIVIDUAL RETIREMENT PLANS FOR CHARITABLE
PURPOSES.

(a) In General.--Subparagraph (F) of section 408(d)(8) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to distributions made in taxable years beginning
after December 31, 2011.

SEC. 52006. EXTENSION OF LOOK-THRU OF CERTAIN REGULATED
INVESTMENT COMPANY STOCK IN DETERMINING GROSS
ESTATE OF NONRESIDENTS.

(a) In General.--Paragraph (3) of section 2105(d) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to estates of decedents dying after December 31,
2011.

SEC. 52007. EXTENSION OF EXPANSION OF ADOPTION CREDIT AND
ADOPTION ASSISTANCE PROGRAMS.

(a) In General.--Subsection (c) of section 10909 of the
Patient Protection and Affordable Care Act, as amended by the
Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010, is amended by striking ``December 31,
2011'' and inserting ``December 31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.

Subtitle B--Business Tax Relief

SEC. 52101. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

(a) Simplified Credit for Qualified Research Expenses.--
Subsection (a) of section 41 is amended to read as follows:
``(a) General Rule.--For purposes of section 38, the
research credit determined under this section for the taxable
year shall be an amount equal to 20 percent of so much of the
qualified research expenses for the taxable year as exceeds
50 percent of the average qualified research expenses for the
3 taxable years preceding the taxable year for which the
credit is being determined.''.
(b) Special Rules and Termination of Base Amount
Calculation.--
(1) In general.--Subsection (c) of section 41 is amended to
read as follows:
``(c) Special Rule in Case of No Qualified Research
Expenses in Any of 3 Preceding Taxable Years.--
``(1) Taxpayers to which subsection applies.--The credit
under this section shall be determined under this subsection,
and not under subsection (a), if, in any one of the 3 taxable
years preceding the taxable year for which the credit is
being determined, the taxpayer has no qualified research
expenses.
``(2) Credit rate.--The credit determined under this
subsection shall be equal to 10 percent of the qualified
research expenses for the taxable year.''.
(2) Consistent treatment of expenses.--Subsection (b) of
section 41 is amended by adding at the end the following new
paragraph:
``(5) Consistent treatment of expenses required.--
``(A) In general.--Notwithstanding whether the period for
filing a claim for credit or refund has expired for any
taxable year in the 3-taxable-year period taken into account
under subsection (a), the qualified research expenses taken
into account for such year shall be determined on a basis
consistent with the determination of qualified research
expenses for the credit year.
``(B) Prevention of distortions.--The Secretary may
prescribe regulations to prevent distortions in calculating a
taxpayer's qualified research expenses caused by a change in
accounting methods used by such taxpayer between the credit
year and a year in such 3-taxable-year period.''.
(c) Inclusion of Qualified Research Expenses of an Acquired
Person.--
(1) Partial inclusion of pre-acquisition qualified research
expenses.--Subparagraph (A) of section 41(f)(3) is amended to
read as follows:
``(A) Acquisitions.--
``(i) In general.--If a person acquires the major portion
of a trade or business of another person (hereinafter in this
paragraph referred to as the `predecessor') or the major
portion of a separate unit of a trade or business of a
predecessor, then the amount of qualified research expenses
paid or incurred by the acquiring person during the 3 taxable
years preceding the taxable year in which the credit under
this section is determined shall be increased by--

``(I) for purposes of applying this section for the taxable
year in which such acquisition is made, the amount determined
under clause (ii), and
``(II) for purposes of applying this section for any
taxable year after the taxable year in which such acquisition
is made, so much of the qualified research expenses paid or
incurred by the predecessor with respect to the acquired
trade or business during the portion of the measurement
period that is part of the 3-taxable-year period preceding
the taxable year for which the credit is determined as is
attributable to the portion of such trade or business or
separate unit acquired by such person.

``(ii) Amount determined.--The amount determined under this
clause is the amount equal to the product of--

``(I) so much of the qualified research expenses paid or
incurred by the predecessor with respect to the acquired
trade or business during the 3 taxable years before the
taxable year in which the acquisition is made as is
attributable to the portion of such trade or business or
separate unit acquired by the acquiring person, and
``(II) the number of months in the period beginning on the
date of the acquisition and ending on the last day of the
taxable year in which the acquisition is made,

divided by 12.
``(iii) Special rules for coordinating taxable years.--In
the case of an acquiring person and a predecessor whose
taxable years do not begin on the same date--

``(I) each reference to a taxable year in clauses (i) and
(ii) shall refer to the appropriate taxable year of the
acquiring person,
``(II) the qualified research expenses paid or incurred by
the predecessor during each taxable year of the predecessor
any portion of which is part of the measurement period shall
be allocated equally among the months of such taxable year,
and
``(III) the amount of such qualified research expenses
taken into account under clauses (i) and (ii) with respect to
a taxable year of the acquiring person shall be equal to the
total of the expenses attributable under subclause (II) to
the months occurring during such taxable year.

``(iv) Measurement period.--For purposes of this
subparagraph, the term `measurement period' means the taxable
year of the acquiring person in which the acquisition is made

[[Page S1554]]

and the 3 taxable years of the acquiring person preceding
such taxable year.''.
(2) Expenses of a disposing person.--Subparagraph (B) of
section 41(f)(3) is amended to read as follows:
``(B) Dispositions.--If a person disposes of the major
portion of any trade or business or the major portion of a
separate unit of a trade or business in a transaction to
which subparagraph (A) applies, and the disposing person
furnished to the acquiring person such information as is
necessary for the application of subparagraph (A), then, for
purposes of applying this section for any taxable year ending
after such disposition, the amount of qualified research
expenses paid or incurred by the disposing person during the
3 taxable years preceding such taxable year shall be
decreased by the amount of the increase determined under
subparagraph (A) with respect to the acquiring person for
such taxable year.''.
(d) Aggregation of Expenditures.--Paragraph (1) of section
41(f) is amended--
(1) by striking ``shall be its proportionate shares of the
qualified research expenses, basic research payments, and
amounts paid or incurred to energy research consortiums,
giving rise to the credit'' in subparagraph (A)(ii) and
inserting ``shall be determined on a proportionate basis to
its share of the aggregate qualified research expenses taken
into account by such controlled group for purposes of this
section'', and
(2) by striking ``shall be its proportionate shares of the
qualified research expenses, basic research payments, and
amounts paid or incurred to energy research consortiums,
giving rise to the credit'' in subparagraph (B)(ii) and
inserting ``shall be determined on a proportionate basis to
its share of the aggregate qualified research expenses taken
into account by all such persons under common control for
purposes of this section''.
(e) Extension.--
(1) Subsection (h) of section 41 is amended--
(A) by striking paragraph (2) (relating to termination of
alternative incremental credit), and
(B) by striking ``paid or incurred'' and all that follows
in paragraph (1) and inserting ``paid or incurred after
December 31, 2012.''.
(2) Subparagraph (D) of section 45C(b)(1) is amended by
striking ``June 30, 1995'' and all that follows and inserting
``December 31, 2012.''.
(f) Conforming Amendments.--
(1) Termination of basic research payment calculation.--
Section 41 is amended--
(A) by striking subsection (e),
(B) by redesignating subsection (g) as subsection (e), and
(C) by relocating subsection (e), as so redesignated,
immediately after subsection (d).
(2) Special rules.--
(A) Paragraph (4) of section 41(f) is amended by striking
``and gross receipts''.
(B) Subsection (f) of section 41 is amended by striking
paragraph (6).
(3) Cross-references.--
(A) Paragraph (2) of section 45C(c) is amended by striking
``base period research expenses'' and inserting ``average
qualified research expenses''.
(B) Subparagraph (A) of section 54(l)(3) is amended by
striking ``section 41(g)'' and inserting ``section 41(e)''.
(C) Clause (i) of section 170(e)(4)(B) is amended to read
as follows:
``(i) the contribution is to a qualified organization,''.
(D) Paragraph (4) of section 170(e) is amended by adding at
the end the following new subparagraph:
``(E) Qualified organization.--For purposes of this
paragraph, the term `qualified organization' means--
``(i) any educational organization which--

``(I) is an institution of higher education (within the
meaning of section 3304(f)), and
``(II) is described in subsection (b)(1)(A)(ii), or

``(ii) any organization not described in clause (i) which--

``(I) is described in section 501(c)(3) and is exempt from
tax under section 501(a),
``(II) is organized and operated primarily to conduct
scientific research, and
``(III) is not a private foundation.''.

(E) Section 280C is amended--
(i) by striking ``or basic research expenses (as defined in
section 41(e)(2))'' in subsection (c)(1),
(ii) by striking ``section 41(a)(1)'' in subsection
(c)(2)(A) and inserting ``section 41(a)'', and
(iii) by striking ``or basic research expenses'' in
subsection (c)(2)(B).
(F) Clause (i) of section 1400N(l)(7)(B) is amended by
striking ``section 41(g)'' and inserting ``section 41(e)''.
(g) Technical Corrections.--Section 409 is amended--
(1) by inserting ``, as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)''
in subsection (b)(1)(A),
(2) by inserting ``, as in effect before the enactment of
the Tax Reform Act of 1984'' after ``relating to the employee
stock ownership credit'' in subsection (b)(4),
(3) by inserting ``(as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)''
in subsection (i)(1)(A),
(4) by inserting ``(as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)''
in subsection (m),
(5) by inserting ``(as so in effect)'' after ``section
48(n)(1)'' in subsection (m),
(6) by inserting ``(as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 48(n)'' in
subsection (q)(1), and
(7) by inserting ``(as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 41'' in
subsection (q)(3).
(h) Effective Date.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to
taxable years beginning after December 31, 2011.
(2) Extension.--The amendments made by subsection (e) shall
apply to amounts paid or incurred after December 31, 2011.
(3) Technical corrections.--The amendments made by
subsection (g) shall take effect on the date of the enactment
of this Act.

SEC. 52102. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.

(a) In General.--Subsection (f) of section 45A is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.

SEC. 52103. EXTENSION OF NEW MARKETS TAX CREDIT.

(a) In General.--Subparagraph (G) of section 45D(f)(1) is
amended by striking ``2010 and 2011'' and inserting ``2010,
2011, and 2012''.
(b) Carryover of Unused Limitation.--Paragraph (3) of
section 45D(f) is amended by striking ``2016'' and inserting
``2017''.
(c) Effective Date.--The amendments made by this section
shall apply to calendar years beginning after December 31,
2011.

SEC. 52104. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.

(a) In General.--Subsection (f) of section 45G is amended
by striking ``January 1, 2012'' and inserting ``January 1,
2013''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures paid or incurred in taxable years
beginning after December 31, 2011.

SEC. 52105. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

(a) In General.--Subsection (e) of section 45N is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.

SEC. 52106. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES
WHO ARE ACTIVE DUTY MEMBERS OF THE UNIFORMED
SERVICES.

(a) In General.--Subsection (f) of section 45P is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to payments made after December 31, 2011.

SEC. 52107. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.

(a) In General.--Subparagraph (B) of section 51(c)(4), as
amended by the VOW to Hire Heroes Act of 2011, is amended by
striking ``after'' and all that follows and inserting ``after
December 31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to individuals who begin work for the employer
after December 31, 2011.

SEC. 52108. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

(a) In General.--Paragraph (1) of section 54E(c) is amended
by inserting ``and 2012'' after ``for 2011''.
(b) Repeal of Refundable Credit for QZABs.--Clause (iii) of
section 6431(f)(3)(A) is amended by inserting ``or 2012''
after ``for 2011''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after December 31, 2011.

SEC. 52109. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY
FOR QUALIFIED LEASEHOLD IMPROVEMENTS, QUALIFIED
RESTAURANT BUILDINGS AND IMPROVEMENTS, AND
QUALIFIED RETAIL IMPROVEMENTS.

(a) In General.--Clauses (iv), (v), and (ix) of section
168(e)(3)(E) are each amended by striking ``January 1, 2012''
and inserting ``January 1, 2013''.
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2011.

SEC. 52110. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR
MOTORSPORTS ENTERTAINMENT COMPLEXES.

(a) In General.--Subparagraph (D) of section 168(i)(15) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2011.

SEC. 52111. EXTENSION OF ACCELERATED DEPRECIATION FOR
BUSINESS PROPERTY ON AN INDIAN RESERVATION.

(a) In General.--Paragraph (8) of section 168(j) is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2011.

SEC. 52112. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF FOOD INVENTORY.

(a) In General.--Clause (iv) of section 170(e)(3)(C) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made after December 31, 2011.

SEC. 52113. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF BOOK INVENTORIES TO PUBLIC
SCHOOLS.

(a) In General.--Clause (iv) of section 170(e)(3)(D) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.

[[Page S1555]]

(b) Effective Date.--The amendment made by this section
shall apply to contributions made after December 31, 2011.

SEC. 52114. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR
CORPORATE CONTRIBUTIONS OF COMPUTER INVENTORY
FOR EDUCATIONAL PURPOSES.

(a) In General.--Subparagraph (G) of section 170(e)(6) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2011.

SEC. 52115. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND
TREATMENT OF CERTAIN REAL PROPERTY AS SECTION
179 PROPERTY.

(a) In General.--Section 179(b) is amended--
(1) by striking ``2010 or 2011'' each place it appears in
paragraph (1)(B) and (2)(B) and inserting ``2010, 2011, or
2012'',
(2) by striking ``2012'' each place it appears in paragraph
(1)(C) and (2)(C) and inserting ``2013'', and
(3) by striking ``2012'' each place it appears in paragraph
(1)(D) and (2)(D) and inserting ``2013''.
(b) Inflation Adjustment.--Subparagraph (A) of section
179(b)(6) is amended by striking ``2012'' and inserting
``2013''.
(c) Computer Software.--Section 179(d)(1)(A)(ii) is amended
by striking ``2013'' and inserting ``2014''.
(d) Election.--Section 179(c)(2) is amended by striking
``2013'' and inserting ``2014''.
(e) Special Rules for Treatment of Qualified Real
Property.--Section 179(f)(1) is amended by striking ``2010 or
2011'' and inserting ``2010, 2011, or 2012''.
(f) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.

SEC. 52116. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY
EQUIPMENT.

(a) In General.--Subsection (g) of section 179E is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2011.

SEC. 52117. EXTENSION OF EXPENSING OF BROWNFIELDS
ENVIRONMENTAL REMEDIATION COSTS.

(a) In General.--Subsection (h) of section 198 is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures paid or incurred after December
31, 2011.

SEC. 52118. EXTENSION OF MODIFICATION OF TAX TREATMENT OF
CERTAIN PAYMENTS TO CONTROLLING EXEMPT
ORGANIZATIONS.

(a) In General.--Clause (iv) of section 512(b)(13)(E) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to payments received or accrued after December
31, 2011.

SEC. 52119. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF
REGULATED INVESTMENT COMPANIES.

(a) In General.--Paragraphs (1)(C) and (2)(C) of section
871(k) are each amended by striking ``December 31, 2011'' and
inserting ``December 31, 2012''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.

SEC. 52120. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY
TREATMENT UNDER FIRPTA.

(a) In General.--Clause (ii) of section 897(h)(4)(A) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
take effect on January 1, 2012. Notwithstanding the preceding
sentence, such amendment shall not apply with respect to the
withholding requirement under section 1445 of the Internal
Revenue Code of 1986 for any payment made before the date of
the enactment of this Act.
(2) Amounts withheld on or before date of enactment.--In
the case of a regulated investment company--
(A) which makes a distribution after December 31, 2011, and
before the date of the enactment of this Act; and
(B) which would (but for the second sentence of paragraph
(1)) have been required to withhold with respect to such
distribution under section 1445 of such Code,
such investment company shall not be liable to any person to
whom such distribution was made for any amount so withheld
and paid over to the Secretary of the Treasury.

SEC. 52121. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE
FINANCING INCOME.

(a) Exempt Insurance Income.--Paragraph (10) of section
953(e) is amended--
(1) by striking ``January 1, 2012'' and inserting ``January
1, 2013'', and
(2) by striking ``December 31, 2011'' and inserting
``December 31, 2012'',
(b) Special Rule for Income Derived in the Active Conduct
of Banking, Financing, or Similar Businesses.--Paragraph (9)
of section 954(h) is amended by striking ``January 1, 2012''
and inserting ``January 1, 2013''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2011, and to taxable years of
United States shareholders with or within which any such
taxable year of such foreign corporation ends.

SEC. 52122. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS
BETWEEN RELATED CONTROLLED FOREIGN CORPORATIONS
UNDER FOREIGN PERSONAL HOLDING COMPANY RULES.

(a) In General.--Subparagraph (C) of section 954(c)(6) is
amended by striking ``January 1, 2012'' and inserting
``January 1, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2011, and to taxable years of
United States shareholders with or within which any such
taxable year of such foreign corporation ends.

SEC. 52123. EXTENSION OF 100 PERCENT EXCLUSION FOR QUALIFIED
SMALL BUSINESS STOCK.

(a)  In General.--Paragraph (4) of section 1202(a) is
amended--
(1) by striking ``January 1, 2012'' and inserting ``January
1, 2013'', and
(2) by striking ``2010 and 2011'' in the heading and
inserting ``2010, 2011, and 2012''.
(b) Effective Date.--The amendments made by this section
shall apply to stock acquired after December 31, 2011.

SEC. 52124. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S CORPS
MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.

(a) In General.--Paragraph (2) of section 1367(a) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2011.

SEC. 52125. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER
OVER OF RUM EXCISE TAXES TO PUERTO RICO AND THE
VIRGIN ISLANDS.

(a) In General.--Paragraph (1) of section 7652(f) is
amended by striking ``January 1, 2012'' and inserting
``January 1, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to distilled spirits brought into the United
States after December 31, 2011.

TITLE IV--OFFSETS

SEC. 53001. DEFICIT REDUCTION TRUST FUND.

(a) In General.--Subchapter I of chapter 31 of title 31,
United States Code, is amended by adding at the end the
following new section:

``Sec.  3114. Trust fund to reduce public debt

``(a) There is established in the Treasury of the United
States a trust fund to be known as the `Deficit Reduction
Trust Fund' (in this section referred to as the `Trust
Fund').
``(b) There is appropriated to the Trust Fund the following
amounts:
``(1) Amounts equivalent to the net increase in amounts
received in the Treasury attributable to the provisions of,
and the amendments made by, subtitles B, C, D, E, F, and G of
title I of division E of the Moving Ahead for Progress in the
21st Century Act.
``(2) The net increase in taxes received in the Treasury
attributable to the amendments made by section 53002 of the
Moving Ahead for Progress in the 21st Century Act.
``(3) Amounts equivalent to the reduction in spending
attributable to the amendment made by section 53003 of the
Moving Ahead for Progress in the 21st Century Act.
``(c) The Secretary of the Treasury shall use the moneys in
the Trust Fund solely to pay at maturity, or to redeem or buy
before maturity, an obligation of the Government included in
the public debt.
``(d) Any obligation of the Government which is paid,
redeemed, or bought with money from the Trust Fund shall be
canceled and retired and may not be reissued.''.
(b) Conforming Amendment.--The table of sections for
subchapter I of chapter 31 of title 31, United States Code,
is amended by adding at the end the following new item:

``3114. Trust fund to reduce public debt.''.

SEC. 53002. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE
REFUNDABLE PORTION OF THE CHILD TAX CREDIT.

(a) In General.--Subsection (d) of section 24 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(5) Identification requirement with respect to
taxpayer.--
``(A) In general.--Paragraph (1) shall not apply to any
taxpayer for any taxable year unless the taxpayer includes
the taxpayer's Social Security number on the return of tax
for such taxable year.
``(B) Joint returns.--In the case of a joint return, the
requirement of subparagraph (A) shall be treated as met if
the Social Security number of either spouse is included on
such return.''.
(b) Omission Treated as Mathematical or Clerical Error.--
Subparagraph (I) of section 6213(g)(2) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(I) an omission of a correct Social Security number
required under section 24(d)(5) (relating to refundable
portion of child tax credit), or a correct TIN under section
24(e) (relating to child tax credit), to be included on a
return,''.
(c) Conforming Amendment.--Subsection (e) of section 24 of
the Internal Revenue Code of 1986 is amended by inserting
``With Respect to Qualifying Children'' after
``Identification Requirement'' in the heading thereof.

[[Page S1556]]

(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 53003. EXTENSION OF PAY LIMITATION FOR FEDERAL
EMPLOYEES.

(a) Extension.--
(1) In general.--Section 147 of the Continuing
Appropriations Act, 2011 (Public Law 111 242; 5 U.S.C. 5303
note) is amended--
(A) in subsection (b)(1), by striking ``December 31, 2012''
and inserting ``December 31, 2013''; and
(B) in subsection (c), by striking ``December 31, 2012''
and inserting ``December 31, 2013''.
(2) Application to legislative branch.--
(A) Members of congress.--The extension of the pay limit
for Federal employees through December 31, 2013, as
established pursuant to the amendments made by paragraph (1),
shall apply to Members of Congress in accordance with section
601(a) of the Legislative Reorganization Act of 1946 (2
U.S.C. 31).
(B) Other legislative branch employees.--
(i) Limit in pay.--Notwithstanding any other provision of
law, no cost of living adjustment required by statute with
respect to a legislative branch employee which (but for this
clause) would otherwise take effect during the period
beginning on the date of enactment of this Act and ending on
December 31, 2013, shall be made.
(ii) Definition.--In this subparagraph, the term
``legislative branch employee'' means--

(I) an employee of the Federal Government whose pay is
disbursed by the Secretary of the Senate or the Chief
Administrative Officer of the House of Representatives; and
(II) an employee of any office of the legislative branch
who is not described in subclause (I).

(b) Reduction of Revised Discretionary Spending Limits to
Achieve Savings From Federal Employee Provisions.--Paragraph
(2) of section 251A of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended to read as follows:
``(2) Revised discretionary spending limits.--The
discretionary spending limits for fiscal years 2013 through
2021 under section 251(c) shall be replaced with the
following:
``(A) For fiscal year 2013--
``(i) for the revised security category, $546,000,000,000
in budget authority; and
``(ii) for the revised nonsecurity category,
$499,000,000,000 in budget authority.
``(B) For fiscal year 2014--
``(i) for the revised security category, $556,000,000,000
in budget authority; and
``(ii) for the revised nonsecurity category,
$507,000,000,000 in budget authority.
``(C) For fiscal year 2015--
``(i) for the revised security category, $566,000,000,000
in budget authority; and
``(ii) for the revised nonsecurity category,
$517,000,000,000 in budget authority.
``(D) For fiscal year 2016--
``(i) for the revised security category, $577,000,000,000
in budget authority; and
``(ii) for the revised nonsecurity category,
$527,000,000,000 in budget authority.
``(E) For fiscal year 2017--
``(i) for the revised security category, $590,000,000,000
in budget authority; and
``(ii) for the revised nonsecurity category,
$538,000,000,000 in budget authority.
``(F) For fiscal year 2018--
``(i) for the revised security category, $603,000,000,000
in budget authority; and
``(ii) for the revised nonsecurity category,
$550,000,000,000 in budget authority.
``(G) For fiscal year 2019--
``(i) for the revised security category, $616,000,000,000
in budget authority; and
``(ii) for the revised nonsecurity category,
$562,000,000,000 in budget authority.
``(H) For fiscal year 2020--
``(i) for the revised security category, $630,000,000,000
in budget authority; and
``(ii) for the revised nonsecurity category,
$574,000,000,000 in budget authority.
``(I) For fiscal year 2021--
``(i) for the revised security category, $644,000,000,000
in budget authority; and
``(ii) for the revised nonsecurity category,
$586,000,000,000 in budget authority.''.
______