To eliminate unnecessary tax subsidies and provide infrastructure funding.

SA 125. Mr. MERKLEY submitted an amendment intended to be proposed by
him to the bill S. 1, to approve the Keystone XL Pipeline; which was
ordered to lie on the table; as follows:

In lieu of the matter proposed to be inserted, insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Rebuilding America's
Infrastructure Act of 2015''.

TITLE I--REPEAL OF OIL AND GAS SUBSIDIES

Subtitle A--Close Big Oil Tax Loopholes

SEC. 101. MODIFICATIONS OF FOREIGN TAX CREDIT RULES
APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES
WHICH ARE DUAL CAPACITY TAXPAYERS.

(a) In General.--Section 901 of the Internal Revenue Code
of 1986 is amended by redesignating subsection (n) as
subsection (o) and by inserting after subsection (m) the
following new subsection:
``(n) Special Rules Relating to Major Integrated Oil
Companies Which Are Dual Capacity Taxpayers.--
``(1) General rule.--Notwithstanding any other provision of
this chapter, any amount paid or accrued by a dual capacity
taxpayer which is a major integrated oil company (within the
meaning of section 167(h)(5)) to a foreign country or
possession of the United States for any period shall not be
considered a tax--
``(A) if, for such period, the foreign country or
possession does not impose a generally applicable income tax,
or
``(B) to the extent such amount exceeds the amount
(determined in accordance with regulations) which--
``(i) is paid by such dual capacity taxpayer pursuant to
the generally applicable income tax imposed by the country or
possession, or
``(ii) would be paid if the generally applicable income tax
imposed by the country or possession were applicable to such
dual capacity taxpayer.

Nothing in this paragraph shall be construed to imply the
proper treatment of any such amount not in excess of the
amount determined under subparagraph (B).

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``(2) Dual capacity taxpayer.--For purposes of this
subsection, the term `dual capacity taxpayer' means, with
respect to any foreign country or possession of the United
States, a person who--
``(A) is subject to a levy of such country or possession,
and
``(B) receives (or will receive) directly or indirectly a
specific economic benefit (as determined in accordance with
regulations) from such country or possession.
``(3) Generally applicable income tax.--For purposes of
this subsection--
``(A) In general.--The term `generally applicable income
tax' means an income tax (or a series of income taxes) which
is generally imposed under the laws of a foreign country or
possession on income derived from the conduct of a trade or
business within such country or possession.
``(B) Exceptions.--Such term shall not include a tax unless
it has substantial application, by its terms and in practice,
to--
``(i) persons who are not dual capacity taxpayers, and
``(ii) persons who are citizens or residents of the foreign
country or possession.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxes paid or accrued in taxable years beginning
after the date of the enactment of this Act.
(2) Contrary treaty obligations upheld.--The amendments
made by this section shall not apply to the extent contrary
to any treaty obligation of the United States.

SEC. 102. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO
OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

(a) Denial of Deduction.--Paragraph (4) of section 199(c)
of the Internal Revenue Code of 1986 is amended by adding at
the end the following new subparagraph:
``(E) Special rule for certain oil and gas income.--In the
case of any taxpayer who is a major integrated oil company
(within the meaning of section 167(h)(5)) for the taxable
year, the term `domestic production gross receipts' shall not
include gross receipts from the production, refining,
processing, transportation, or distribution of oil, gas, or
any primary product (within the meaning of subsection (d)(9))
thereof.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2015.

SEC. 103. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND
DEVELOPMENT COSTS; AMORTIZATION OF DISALLOWED
AMOUNTS.

(a) In General.--Section 263(c) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(c) Intangible Drilling and Development Costs in the Case
of Oil and Gas Wells and Geothermal Wells.--
``(1) In general.--Notwithstanding subsection (a), and
except as provided in subsection (i), regulations shall be
prescribed by the Secretary under this subtitle corresponding
to the regulations which granted the option to deduct as
expenses intangible drilling and development costs in the
case of oil and gas wells and which were recognized and
approved by the Congress in House Concurrent Resolution 50,
Seventy-ninth Congress. Such regulations shall also grant the
option to deduct as expenses intangible drilling and
development costs in the case of wells drilled for any
geothermal deposit (as defined in section 613(e)(2)) to the
same extent and in the same manner as such expenses are
deductible in the case of oil and gas wells. This subsection
shall not apply with respect to any costs to which any
deduction is allowed under section 59(e) or 291.
``(2) Exclusion.--
``(A) In general.--This subsection shall not apply to
amounts paid or incurred by a taxpayer in any taxable year in
which such taxpayer is a major integrated oil company (within
the meaning of section 167(h)(5)).
``(B) Amortization of amounts not allowable as deductions
under subparagraph (a).--The amount not allowable as a
deduction for any taxable year by reason of subparagraph (A)
shall be allowable as a deduction ratably over the 60-month
period beginning with the month in which the costs are paid
or incurred. For purposes of section 1254, any deduction
under this subparagraph shall be treated as a deduction under
this subsection.''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2015.

SEC. 104. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR
OIL AND GAS WELLS.

(a) In General.--Section 613A of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(f) Application With Respect to Major Integrated Oil
Companies.--In the case of any taxable year in which the
taxpayer is a major integrated oil company (within the
meaning of section 167(h)(5)), the allowance for percentage
depletion shall be zero.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2015.

SEC. 105. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

(a) In General.--Section 193 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(d) Application With Respect to Major Integrated Oil
Companies.--
``(1) In general.--This section shall not apply to amounts
paid or incurred by a taxpayer in any taxable year in which
such taxpayer is a major integrated oil company (within the
meaning of section 167(h)(5)).
``(2) Amortization of amounts not allowable as deductions
under paragraph (1).--The amount not allowable as a deduction
for any taxable year by reason of paragraph (1) shall be
allowable as a deduction ratably over the 60-month period
beginning with the month in which the costs are paid or
incurred.''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2015.

SEC. 106. MODIFICATION OF DEFINITION OF MAJOR INTEGRATED OIL
COMPANY.

(a) In General.--Paragraph (5) of section 167(h) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new subparagraph:
``(C) Certain successors in interest.--For purposes of this
paragraph, the term `major integrated oil company' includes
any successor in interest of a company that was described in
subparagraph (B) in any taxable year, if such successor
controls more than 50 percent of the crude oil production or
natural gas production of such company.''.
(b) Conforming Amendments.--
(1) In general.--Subparagraph (B) of section 167(h)(5) of
the Internal Revenue Code of 1986 is amended by inserting
``except as provided in subparagraph (C),'' after ``For
purposes of this paragraph,''.
(2) Taxable years tested.--Clause (iii) of section
167(h)(5)(B) of such Code is amended--
(A) by striking ``does not apply by reason of paragraph (4)
of section 613A(d)'' and inserting ``did not apply by reason
of paragraph (4) of section 613A(d) for any taxable year
after 2004'', and
(B) by striking ``does not apply'' in subclause (II) and
inserting ``did not apply for the taxable year''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.

Subtitle B--Outer Continental Shelf Oil and Natural Gas

SEC. 111. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND
DEEP GAS ROYALTY RELIEF.

(a) In General.--Sections 344 and 345 of the Energy Policy
Act of 2005 (42 U.S.C. 15904, 15905) are repealed.
(b) Administration.--The Secretary of the Interior shall
not be required to provide for royalty relief in the lease
sale terms beginning with the first lease sale held on or
after the date of enactment of this Act for which a final
notice of sale has not been published.

TITLE II--INFRASTRUCTURE FUNDING

SEC. 201. INFRASTRUCTURE FUNDING.

(a) In General.--
(1) Transfers.--Not later than 90 days after the date of
enactment of this Act, out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer an amount equal to the net amount of any savings
realized as a result of the enactment of this Act and the
amendments made by this Act (after any expenditures
authorized by this Act and the amendments made by this Act)--
(A) in accordance with subsections (b) and (c); and
(B) in the case of any additional savings after the
application of such subsections, into the Highway Trust Fund
in the following manner:
(i) 75 percent of such additional savings shall be
transferred into the Highway Trust Fund (other than the Mass
Transit Account).
(ii) 25 percent of such additional savings shall be
transferred into the Mass Transit Account.
(2) Conforming amendment to the internal revenue code.--
Subsection (f) of section 9503 of the Internal Revenue Code
of 1986 is amended by redesignating paragraph (7) as
paragraph (8) and by inserting after paragraph (6) the
following new paragraph:
``(7) 2015 increase.--Out of money in the Treasury not
otherwise appropriated, there is hereby appropriated to the
Highway Account (as defined in subsection (e)(5)(B)) and the
Mass Transit Account in the Highway Trust Fund amounts equal
to the amounts determined under section 201(a)(1)(B) of the
Rebuilding America's Infrastructure Act of 2015.''.
(b) Water Infrastructure Innovative Financing Pilot
Projects.--Out of any funds of the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to
the Secretary of the Army and the Administrator of the
Environmental Protection Agency jointly, $2,000,000,000 to
carry out the Water Infrastructure Finance and Innovation Act
of 2014 (33 U.S.C. 3901 et seq.) through 2019.
(c) TIGER Discretionary Grants.--
(1) Definition of tiger discretionary grant.--In this
section, the term ``TIGER discretionary grant'' means a grant
awarded and administered by the Secretary of Transportation
using funds made available for--
(A) supplemental discretionary grants for a national
surface transportation system under title XII of division A
of the American Recovery and Reinvestment Act of 2009 (Public
Law 111-5; 123 Stat. 203);
(B) the national infrastructure investments discretionary
grant program under title I of division A of the Consolidated
Appropriations Act, 2010 (Public Law 111-17; 123 Stat. 3035);

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(C) national infrastructure investments under section 2202
of division B of the Department of Defense and Full-Year
Continuing Appropriations Act, 2011 (Public Law 112-10; 125
Stat. 191);
(D) national infrastructure investments under title I of
division C of the Consolidated and Further Continuing
Appropriations Act, 2012 (Public Law 112-55; 125 Stat. 641);
(E) national infrastructure investments under title VIII of
division F of the Consolidated and Further Continuing
Appropriations Act, 2013 (Public Law 113-6; 127 Stat. 432);
(F) national infrastructure investments under title I of
division L of the Consolidated Appropriations Act, 2014
(Public Law 113-76; 128 Stat. 574); or
(G) national infrastructure investments under title I of
division K of the Consolidated and Further Continuing
Appropriations Act, 2015 (Public Law 113-235).
(2) Appropriation.--Out of any funds of the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary of Transportation, $2,000,000,000
to provide TIGER discretionary grants for fiscal year 2016.
(d) Maintenance of Funding.--The funding provided under
this section shall supplement (and not supplant) other
Federal funding for the programs and accounts funded under
this section.

SEC. 202. BUDGETARY EFFECTS.

The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go-Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
submitted for printing in the Congressional Record by the
Chairman of the Senate Budget Committee, provided that such
statement has been submitted prior to the vote on passage.

TITLE III--STATE REVOLVING FUNDS

SEC. 301. STATE WATER POLLUTION CONTROL REVOLVING FUNDS.

Out of any funds of the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to
the Administrator of the Environmental Protection Agency,
$1,500,000,000 for State water pollution control revolving
funds established in accordance with title VI of the Federal
Water Pollution Control Act (33 U.S.C. 1381 et seq.).

SEC. 302. STATE DRINKING WATER TREATMENT REVOLVING LOAN
FUNDS.

Out of any funds of the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to
the Administrator of the Environmental Protection Agency,
$1,000,000,000 for State drinking water treatment revolving
loan funds established in accordance with section 1452 of the
Safe Drinking Water Act (42 U.S.C. 300j-12).

TITLE IV--MISCELLANEOUS

SEC. 401. ENFORCEMENT OF DISCRETIONARY SPENDING LIMITS.

The Office of Management and Budget shall not include
amounts made available under subsections (b) or (c) of
section 201 or title III during a fiscal year in determining
whether there has been a breach of the discretionary spending
limits under the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 900 et seq.) during the fiscal
year.
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