Volume 154, No. 105 covering the 2nd Session of the 110th Congress (2007 - 2008) was published by the Congressional Record.
The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“TEXT OF AMENDMENTS” mentioning the Environmental Protection Agency was published in the Senate section on pages S6027-S6079 on June 24, 2008.
The publication is reproduced in full below:
TEXT OF AMENDMENTS
SA 5030. Mr. ROBERTS (for himself and Mr. Brownback) submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 615, between lines 2 and 3, insert the following:
SEC. 3083. EXTENSION OF CERTAIN BONUS DEPRECIATION PLACED IN
SERVICE REQUIREMENTS.
Section 15345(d)(1) of Public Law 110-246 is amended--
(1) by striking ``December 31, 2008'' in subparagraph (C) and inserting ``December 31, 2010'', and
(2) by striking ``December 31, 2009'' in subparagraph (D) and inserting ``December 31, 2011''.
______
SA 5031. Mr. DeMINT submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 133, strike line 10 and all that follows through page 160, line 17.
______
SA 5032. Mr. DeMINT submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
Beginning on page 615, line 4, strike all through page 623, line 12.
______
SA 5033. Mr. DeMINT submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 506, strike line 16 and all that follows through page 518, line 3.
______
SA 5034. Mr. DeMINT submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 414, strike line 24 and all that follows through page 415, line 3.
______
SA 5035. Mr. GRASSLEY (for himself, Mr. Harkin, Mr. Durbin, Mr. Coleman, Mrs. McCaskill, Mr. Bond, Mr. Lugar, Mr. Bayh, Ms. Klobuchar, and Mr. Obama) submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3211, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
At the end of subtitle A of title III of division C, insert the following:
SEC. ___. TEMPORARY TAX RELIEF FOR AREAS DAMAGED BY 2008
MIDWESTERN SEVERE STORMS, TORNADOS, AND
FLOODING.
(a) In General.--Subject to the modifications described in this section, the following provisions of or relating to the Internal Revenue Code of 1986 shall apply to any Midwestern disaster area in addition to the areas to which such provisions otherwise apply:
(1) Go zone benefits.--
(A) Section 1400N (relating to tax benefits) other than subsections (b), (i), and (j) thereof.
(B) Section 1400O (relating to education tax benefits).
(C) Section 1400P (relating to housing tax benefits).
(D) Section 1400Q (relating to special rules for use of retirement funds).
(E) Section 1400R(a) (relating to employee retention credit for employers).
(F) Section 1400S (relating to additional tax relief) other than subsection (d) thereof.
(G) Section 1400T (relating to special rules for mortgage revenue bonds).
(2) Other benefits included in katrina emergency tax relief act of 2005.--Sections 302, 303, 304, 401, and 405 of the Katrina Emergency Tax Relief Act of 2005.
(3) Other benefits.--Section 3082(a) of this Act (relating to use of amended income tax returns to take into account receipt of certain casualty loss grants by disallowing previously taken casualty loss deductions).
(b) Midwestern Disaster Area.--
(1) In general.--For purposes of this section and for applying the substitutions described in subsections (d) and
(e), the term ``Midwestern disaster area'' means an area--
(A) with respect to which a major disaster has been declared by the President after May 20, 2008, and before August 1, 2008, under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of severe storms, tornados, or flooding occurring in any of the States of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, and Wisconsin, and
(B) determined by the President to warrant individual or individual and public assistance from the Federal Government under such Act with respect to damages attributable to such severe storms, tornados, or flooding.
(2) Certain benefits available to areas eligible only for public assistance.--For purposes of applying this section to benefits under the following provisions, paragraph (1) shall be applied without regard to subparagraph (B):
(A) Sections 1400Q, 1400S(b), and 1400S(d) of the Internal Revenue Code of 1986.
(B) Sections 302, 401, and 405 of the Katrina Emergency Tax Relief Act of 2005.
(c) References.--
(1) Area.--Any reference in such provisions to the Hurricane Katrina disaster area or the Gulf Opportunity Zone shall be treated as a reference to any Midwestern disaster area and any reference to the Hurricane Katrina disaster area or the Gulf Opportunity Zone within a State shall be treated as a reference to all Midwestern disaster areas within the State.
(2) Items attributable to disaster.--Any reference in such provisions to any loss, damage, or other item attributable to Hurricane Katrina shall be treated as a reference to any loss, damage, or other item attributable to the severe storms, tornados, or flooding giving rise to any Presidential declaration described in subsection (b)(1)(A).
(3) Applicable disaster date.--For purposes of applying the substitutions described in subsections (d) and (e), the term
``applicable disaster date'' means, with respect to any Midwestern disaster area, the date on which the severe storms, tornados, or flooding giving rise to the Presidential declaration described in subsection (b)(1)(A) occurred.
(d) Modifications to 1986 Code.--The following provisions of the Internal Revenue Code of 1986 shall be applied with the following modifications:
(1) Tax-exempt bond financing.--Section 1400N(a)--
(A) by substituting ``qualified Midwestern disaster area bond'' for ``qualified Gulf Opportunity Zone Bond'' each place it appears,
(B) by substituting ``any State in which a Midwestern disaster area is located'' for ``the State of Alabama, Louisiana, or Mississippi'' in paragraph (2)(B),
(C) by substituting ``designated for purposes of this section (on the basis of providing assistance to areas in the order in which such assistance is most needed)'' for
``designated for purposes of this section'' in paragraph
(2)(C),
(D) by substituting ``January 1, 2013'' for ``January 1, 2011'' in paragraph (2)(D),
(E) in paragraph (3)(A)--
(i) by substituting ``$5,000'' for ``$2,500'', and
(ii) by substituting ``before the earliest applicable disaster date for Midwestern disaster areas within the State'' for ``before August 28, 2005'',
(F) by substituting ``qualified Midwestern disaster area repair or construction'' for ``qualified GO Zone repair or construction'' each place it appears, and
(G) by substituting ``after the date of the enactment of the Housing and Economic Recovery Act of 2008 and before January 1, 2013'' for ``after the date of the enactment of this paragraph and before January 1, 2011'' in paragraph
(7)(C).
(2) Low-income housing credit.--Section 1400N(c)--
(A) only with respect to calendar years 2009, 2010, and 2011,
(B) by substituting ``Disaster Recovery Assistance housing amount'' for ``Gulf Opportunity housing amount'',
(C) by substituting ``before the earliest applicable disaster date for Midwestern disaster areas within the State'' for ``before August 28, 2005'' in paragraph (1)(B), and
(D) determined without regard to paragraphs (2), (3), (4),
(5), and (6) thereof.
(3) Special allowance for certain property acquired on or after the applicable disaster date.--Section 1400N(d)--
(A) by substituting ``qualified Disaster Recovery Assistance property'' for ``qualified Gulf Opportunity Zone property'' each place it appears,
(B) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(C) by substituting ``December 31, 2011'' for ``December 31, 2007'' in paragraph (2)(A)(v),
(D) by substituting ``December 31, 2012'' for ``December 31, 2008'' in paragraph (2)(A)(v),
(E) by substituting ``the day before the applicable disaster date'' for ``August 27, 2005'' in paragraph (3)(A), and
(F) determined without regard to paragraph (6) thereof.
(4) Increase in expensing under section 179.--Section 1400N(e), by substituting ``qualified section 179 Disaster Recovery Assistance property'' for ``qualified section 179 Gulf Opportunity Zone property'' each place it appears.
(5) Expensing for certain demolition and clean-up costs.--Section 1400N(f)--
(A) by substituting ``qualified Disaster Recovery Assistance clean-up cost'' for ``qualified Gulf Opportunity Zone clean-up cost'' each place it appears, and
(B) by substituting ``beginning on the applicable disaster date and ending on December 31, 2010'' for ``beginning on August 28, 2005, and ending on December 31, 2007'' in paragraph (2).
(6) Extension of expensing for environmental remediation costs.--Section 1400N(g)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(B) by substituting ``January 1, 2011'' for ``January 1, 2008'' in paragraph (1), and
(C) by substituting ``December 31, 2010'' for ``December 31, 2007''.
(7) Increase in rehabilitation credit.--Section 1400N(h)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'', and
(B) by substituting ``January 1, 2011'' for ``January 1, 2008'' in paragraph (1).
(8) Treatment of net operating losses attributable to disaster losses.--Section 1400N(k)--
(A) by substituting ``qualified Disaster Recovery Assistance loss'' for ``qualified Gulf Opportunity Zone loss'' each place it appears,
(B) by substituting ``after the day before the applicable disaster date, and before January 1, 2011'' for ``after August 27, 2005, and before January 1, 2008'' each place it appears,
(C) by substituting ``the applicable disaster date'' for
``August 28, 2005'' in paragraph (2)(B)(ii)(I),
(D) by substituting ``qualified Disaster Recovery Assistance property'' for ``qualified Gulf Opportunity Zone property'' in paragraph (2)(B)(iv), and
(E) by substituting ``qualified Disaster Recovery Assistance casualty loss'' for ``qualified Gulf Opportunity Zone casualty loss'' each place it appears.
(9) Credit to holders of tax credit bonds.--Section 1400N(l)--
(A) by substituting ``Midwestern tax credit bond'' for
``Gulf tax credit bond'' each place it appears,
(B) by substituting ``any State in which a Midwestern disaster area is located'' for ``the State of Alabama, Louisiana, or Mississippi'' in paragraph (4)(A)(i),
(C) by substituting ``after December 31, 2008 and before January 1, 2010'' for ``after December 31, 2005, and before January 1, 2007'',
(D) by substituting ``shall not exceed $100,000,000.'' for
``shall not exceed'' and all that follows in paragraph
(4)(C), and
(E) by substituting ``the earliest applicable disaster date for Midwestern disaster areas within the State'' for ``August 28, 2005'' in paragraph (5)(A).
(10) New markets tax credit.--Section 1400N(m)--
(A) by substituting ``$300,000,000 for 2009 and 2010'' for
``$300,000,000 for 2005 and 2006'' in paragraph (2)(A), and
(B) by substituting ``$400,000,000 for 2011'' for
``$400,000,000 for 2007'' in paragraph (2)(B).
(11) Education tax benefits.--Section 1400O, by substituting ``2008 or 2009'' for ``2005 or 2006''.
(12) Housing tax benefits.--Section 1400P, by substituting
``the applicable disaster date'' for ``August 28, 2005'' in subsection (c)(1).
(13) Special rules for use of retirement funds.--Section 1400Q--
(A) by substituting ``qualified Disaster Recovery Assistance distribution'' for ``qualified hurricane distribution'' each place it appears,
(B) by substituting ``on or after the applicable disaster date and before January 1, 2010'' for ``on or after August 25, 2005, and before January 1, 2007'' in subsection
(a)(4)(A)(i),
(C) by substituting ``the applicable disaster date'' for
``August 28, 2005'' in subsections (a)(4)(A)(i) and
(c)(3)(B),
(D) by disregarding clauses (ii) and (iii) of subsection
(a)(4)(A) thereof,
(E) by substituting ``qualified storm damage distribution'' for ``qualified Katrina distribution'' each place it appears,
(F) by substituting ``after the date which is 6 months before the applicable disaster date and before the date which is the day after the applicable disaster date'' for ``after February 28, 2005, and before August 29, 2005'' in subsection
(b)(2)(B)(ii),
(G) by substituting ``the Midwestern disaster area, but not so purchased or constructed on account of severe storms, tornados, or flooding giving rise to the designation of the area as a disaster area'' for ``the Hurricane Katrina disaster area, but not so purchased or constructed on account of Hurricane Katrina'' in subsection (b)(2)(B)(iii),
(H) by substituting ``beginning on the applicable disaster date and ending on the date which is 5 months after the date of the enactment of the Housing and Economic Recovery Act of 2008'' for ``beginning on August 25, 2005, and ending on February 28, 2006'' in subsection (b)(3)(A),
(I) by substituting ``qualified storm damage individual'' for ``qualified Hurricane Katrina individual'' each place it appears,
(J) by substituting ``December 31, 2009'' for ``December 31, 2006'' in subsection (c)(2)(A),
(K) by substituting ``beginning on the date of the enactment of the Housing and Economic Recovery Act of 2008 and ending on December 31, 2009'' for ``beginning on September 24, 2005, and ending on December 31, 2006'' in subsection (c)(4)(A)(i),
(L) by substituting ``the applicable disaster date'' for
``August 25, 2005'' in subsection (c)(4)(A)(ii), and
(M) by substituting ``January 1, 2010'' for ``January 1, 2007'' in subsection (d)(2)(A)(ii).
(14) Employee retention credit for employers affected by severe storms, tornados, and flooding.--Section 1400R(a)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(B) by substituting ``January 1, 2009'' for ``January 1, 2006'' both places it appears, and
(C) only with respect to eligible employers who employed an average of not more than 200 employees on business days during the taxable year before the applicable disaster date.
(15) Temporary suspension of limitations on charitable contributions.--Section 1400S(a), by substituting the following paragraph for paragraph (4) thereof:
``(4) Qualified contributions.--
``(A) In general.--For purposes of this subsection, the term `qualified contribution' means any charitable contribution (as defined in section 170(c)) if--
``(i) such contribution--
``(I) is paid during the period beginning on the earliest applicable disaster date for all States and ending on December 31, 2008, in cash to an organization described in section 170(b)(1)(A), and
``(II) is made for relief efforts in 1 or more Midwestern disaster areas,
``(ii) the taxpayer obtains from such organization contemporaneous written acknowledgment (within the meaning of section 170(f)(8)) that such contribution was used (or is to be used) for relief efforts in 1 or more Midwestern disaster areas, and
``(iii) the taxpayer has elected the application of this subsection with respect to such contribution.
``(B) Exception.--Such term shall not include a contribution by a donor if the contribution is--
``(i) to an organization described in section 509(a)(3), or
``(ii) for establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2)).
``(C) Application of election to partnerships and s corporations.--In the case of a partnership or S corporation, the election under subparagraph (A)(iii) shall be made separately by each partner or shareholder.''.
(16) Suspension of certain limitations on personal casualty losses.--Section 1400S(b)(1), by substituting ``the applicable disaster date'' for ``August 25, 2005''.
(17) Special rule for determining earned income.--Section 1400S(d)--
(A) by treating an individual as a qualified individual if such individual's principal place of abode on the applicable disaster date was located in a Midwestern disaster area,
(B) by treating the applicable disaster date with respect to any such individual as the applicable date for purposes of such subsection, and
(C) by treating an area as described in paragraph
(2)(B)(ii) thereof if the area is a Midwestern disaster area only by reason of subsection (b)(2) of this section (relating to areas eligible only for public assistance)
(18) Adjustments regarding taxpayer and dependency status.--Section 1400S(e), by substituting ``2008 or 2009'' for ``2005 or 2006''.
(e) Modifications to Katrina Emergency Tax Relief Act of 2005.--The following provisions of the Katrina Emergency Tax Relief Act of 2005 shall be applied with the following modifications:
(1) Additional exemption for housing displaced individual.--Section 302--
(A) by substituting ``Midwestern displaced individual'' for
``Hurricane Katrina displaced individual'' each place it appears, and
(B) by treating an area as a core disaster area for purposes of applying subsection (c) thereof if the area is a Midwestern disaster area without regard to subsection (b)(2) of this section (relating to areas eligible only for public assistance).
(2) Increase in standard mileage rate.--Section 303, by substituting ``beginning on the applicable disaster date and ending on December 31, 2009'' for ``beginning on August 25, 2005, and ending on December 31, 2006''.
(3) Mileage reimbursements for charitable volunteers.--Section 304--
(A) by substituting ``beginning on the applicable disaster date and ending on December 31, 2009'' for ``beginning on August 25, 2005, and ending on December 31, 2006'' in subsection (a), and
(B) by substituting ``the applicable disaster date'' for
``August 25, 2005'' in subsection (a).
(4) Exclusion of certain cancellation of indebtedness income.--Section 401--
(A) by treating an individual whose principal place of abode on the applicable disaster date was in a Midwestern disaster area (determined without regard to subsection (b)(2) of this section) as an individual described in subsection
(b)(1) thereof, and by treating an individual whose principal place of abode on the applicable disaster date was in a Midwestern disaster area solely by reason of subsection
(b)(2) of this section as an individual described in subsection (b)(2) thereof,
(B) by substituting ``the applicable disaster date'' for
``August 28, 2005'' both places it appears, and
(C) by substituting ``January 1, 2010'' for ``January 1, 2007'' in subsection (e).
(5) Extension of replacement period for nonrecognition of gain.--Section 405, by substituting ``on or after the applicable disaster date'' for ``on or after August 25, 2005''.
SEC. ___. ENHANCED CHARITABLE DEDUCTIONS FOR CONTRIBUTIONS OF
FOOD INVENTORY.
(a) Increased Amount of Deduction.--
(1) In general.--Clause (iv) of section 170(e)(3)(C)
(relating to termination) of the Internal Revenue Code of 1986 is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(2) Effective date.--The amendment made by this subsection shall apply to contributions made after December 31, 2007.
(b) Temporary Suspension of Limitations on Charitable Contributions.--
(1) In general.--Section 170(b) of such Code is amended by adding at the end the following new paragraph:
``(3) Temporary suspension of limitations on charitable contributions.--In the case of a qualified farmer or rancher
(as defined in paragraph (1)(E)(v)), any charitable contribution of food--
``(A) to which subsection (e)(3)(C) applies (without regard to clause (ii) thereof), and
``(B) which is made during the period beginning on the date of the enactment of this paragraph and before January 1, 2009,shall be treated for purposes of paragraph (1)(E) or (2)(B), whichever is applicable, as if it were a qualified conservation contribution which is made by a qualified farmer or rancher and which otherwise meets the requirements of such paragraph.''.
(2) Effective date.--The amendment made by this subsection shall apply to taxable years ending after the date of the enactment of this Act.
SEC. ___. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF BOOK INVENTORY.
(a) Extension.--Clause (iv) of section 170(e)(3)(D) of the Internal Revenue Code of 1986 (relating to termination) of the Internal Revenue Code of 1986 is amended by striking
``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Clerical Amendment.--Clause (iii) of section 170(e)(3)(D) of such Code (relating to certification by donee) is amended by inserting ``of books'' after ``to any contribution''.
(c) Effective Date.--The amendments made by this section shall apply to contributions made after December 31, 2007.
SEC. ___. REPORTING REQUIREMENTS RELATING TO DISASTER RELIEF
CONTRIBUTIONS.
(a) In General.--Section 6033(b) of the Internal Revenue Code of 1986 (relating to returns of certain organizations described in section 501(c)(3)) is amended by striking
``and'' at the end of paragraph (13), by redesignating paragraph (14) as paragraph (15), and by adding after paragraph (13) the following new paragraph:
``(14) such information as the Secretary may require with respect to disaster relief activities, including the amount and use of qualified contributions to which section 1400S(a) applies, and''.
(b) Effective Date.--The amendments made by this section shall apply to returns the due date for which (determined without regard to any extension) occurs after December 31, 2008.
______
SA 5036. Mr. COBURN submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ____. PROTECTION OF TAXPAYERS.
Notwithstanding any other provision of this Act, title III of Division B of this Act shall not take effect.
______
SA 5037. Mr. BAYH (for himself, Mr. Nelson of Nebraska, and Ms. Klobuchar) submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
Beginning on page 573, line 12, strike through page 574, line 14, and insert the following:
``(8) Real property tax deduction.--For purposes of paragraph (1), the real property tax deduction is the lesser of--
``(A) the amount allowable as a deduction under this chapter for State and local taxes described in section 164(a)(1), or
``(B) $500 ($1,000 in the case of a joint return).
Any taxes taken into account under section 62(a) shall not be taken into account under this paragraph.''.
______
SA 5038. Mrs. LINCOLN (for herself and Mr. Pryor) submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
At the end of subtitle A of title III of division C, insert the following: SEC. ___. TEMPORARY TAX RELIEF FOR AREAS DAMAGED BY 2008
MIDWESTERN SEVERE STORMS, TORNADOS, AND
FLOODING.
(a) In General.--Subject to the modifications described in this section, the following provisions of or relating to the Internal Revenue Code of 1986 shall apply to any Midwestern disaster area in addition to the areas to which such provisions otherwise apply:
(1) Go zone benefits.--
(A) Section 1400N (relating to tax benefits) other than subsections (b), (i), and (j) thereof.
(B) Section 1400O (relating to education tax benefits).
(C) Section 1400P (relating to housing tax benefits).
(D) Section 1400Q (relating to special rules for use of retirement funds).
(E) Section 1400R(a) (relating to employee retention credit for employers).
(F) Section 1400S (relating to additional tax relief) other than subsection (d) thereof.
(G) Section 1400T (relating to special rules for mortgage revenue bonds).
(2) Other benefits included in katrina emergency tax relief act of 2005.--Sections 302, 303, 304, 401, and 405 of the Katrina Emergency Tax Relief Act of 2005.
(3) Other benefits.--Section 3082(a) of this Act (relating to use of amended income tax returns to take into account receipt of certain casualty loss grants by disallowing previously taken casualty loss deductions).
(b) Midwestern Disaster Area.--
(1) In general.--For purposes of this section and for applying the substitutions described in subsections (d) and
(e), the term ``Midwestern disaster area'' means an area--
(A) with respect to which a major disaster has been declared by the President after May 20, 2008, and before August 1, 2008, under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of severe storms, tornados, or flooding occurring in any of the States of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, and Wisconsin, and
(B) determined by the President to warrant individual or individual and public assistance from the Federal Government under such Act with respect to damages attributable to such severe storms, tornados, or flooding.
In the case of a State with respect to which the President during the period beginning on January 1, 2008, and ending on July 31, 2008, has declared major disasters under such Act with respect to at least 75 percent of the counties of such State, subparagraph (A) shall be applied by substituting
``December 31, 2007'' for ``May 20, 2008''.
(2) Certain benefits available to areas eligible only for public assistance.--For purposes of applying this section to benefits under the following provisions, paragraph (1) shall be applied without regard to subparagraph (B):
(A) Sections 1400Q, 1400S(b), and 1400S(d) of the Internal Revenue Code of 1986.
(B) Sections 302, 401, and 405 of the Katrina Emergency Tax Relief Act of 2005.
(c) References.--
(1) Area.--Any reference in such provisions to the Hurricane Katrina disaster area or the Gulf Opportunity Zone shall be treated as a reference to any Midwestern disaster area and any reference to the Hurricane Katrina disaster area or the Gulf Opportunity Zone within a State shall be treated as a reference to all Midwestern disaster areas within the State.
(2) Items attributable to disaster.--Any reference in such provisions to any loss, damage, or other item attributable to Hurricane Katrina shall be treated as a reference to any loss, damage, or other item attributable to the severe storms, tornados, or flooding giving rise to any Presidential declaration described in subsection (b)(1)(A).
(3) Applicable disaster date.--For purposes of applying the substitutions described in subsections (d) and (e), the term
``applicable disaster date'' means, with respect to any Midwestern disaster area, the date on which the severe storms, tornados, or flooding giving rise to the Presidential declaration described in subsection (b)(1)(A) occurred.
(d) Modifications to 1986 Code.--The following provisions of the Internal Revenue Code of 1986 shall be applied with the following modifications:
(1) Tax-exempt bond financing.--Section 1400N(a)--
(A) by substituting ``qualified Midwestern disaster area bond'' for ``qualified Gulf Opportunity Zone Bond'' each place it appears,
(B) by substituting ``any State in which a Midwestern disaster area is located'' for ``the State of Alabama, Louisiana, or Mississippi'' in paragraph (2)(B),
(C) by substituting ``designated for purposes of this section (on the basis of providing assistance to areas in the order in which such assistance is most needed)'' for
``designated for purposes of this section'' in paragraph
(2)(C),
(D) by substituting ``January 1, 2013'' for ``January 1, 2011'' in paragraph (2)(D),
(E) in paragraph (3)(A)--
(i) by substituting ``$5,000'' for ``$2,500'', and
(ii) by substituting ``before the earliest applicable disaster date for Midwestern disaster areas within the State'' for ``before August 28, 2005'',
(F) by substituting ``qualified Midwestern disaster area repair or construction'' for ``qualified GO Zone repair or construction'' each place it appears, and
(G) by substituting ``after the date of the enactment of the Housing and Economic Recovery Act of 2008 and before January 1, 2013'' for ``after the date of the enactment of this paragraph and before January 1, 2011'' in paragraph
(7)(C).
(2) Low-income housing credit.--Section 1400N(c)--
(A) only with respect to calendar years 2009, 2010, and 2011,
(B) by substituting ``Disaster Recovery Assistance housing amount'' for ``Gulf Opportunity housing amount'',
(C) by substituting ``before the earliest applicable disaster date for Midwestern disaster areas within the State'' for ``before August 28, 2005'' in paragraph (1)(B), and
(D) determined without regard to paragraphs (2), (3), (4),
(5), and (6) thereof.
(3) Special allowance for certain property acquired on or after the applicable disaster date.--Section 1400N(d)--
(A) by substituting ``qualified Disaster Recovery Assistance property'' for ``qualified Gulf Opportunity Zone property'' each place it appears,
(B) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(C) by substituting ``December 31, 2011'' for ``December 31, 2007'' in paragraph (2)(A)(v),
(D) by substituting ``December 31, 2012'' for ``December 31, 2008'' in paragraph (2)(A)(v),
(E) by substituting ``the day before the applicable disaster date'' for ``August 27, 2005'' in paragraph (3)(A), and
(F) determined without regard to paragraph (6) thereof.
(4) Increase in expensing under section 179.--Section 1400N(e), by substituting ``qualified section 179 Disaster Recovery Assistance property'' for ``qualified section 179 Gulf Opportunity Zone property'' each place it appears.
(5) Expensing for certain demolition and clean-up costs.--Section 1400N(f)--
(A) by substituting ``qualified Disaster Recovery Assistance clean-up cost'' for ``qualified Gulf Opportunity Zone clean-up cost'' each place it appears, and
(B) by substituting ``beginning on the applicable disaster date and ending on December 31, 2010'' for ``beginning on August 28, 2005, and ending on December 31, 2007'' in paragraph (2).
(6) Extension of expensing for environmental remediation costs.--Section 1400N(g)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(B) by substituting ``January 1, 2011'' for ``January 1, 2008'' in paragraph (1), and
(C) by substituting ``December 31, 2010'' for ``December 31, 2007''.
(7) Increase in rehabilitation credit.--Section 1400N(h)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'', and
(B) by substituting ``January 1, 2011'' for ``January 1, 2008'' in paragraph (1).
(8) Treatment of net operating losses attributable to disaster losses.--Section 1400N(k)--
(A) by substituting ``qualified Disaster Recovery Assistance loss'' for ``qualified Gulf Opportunity Zone loss'' each place it appears,
(B) by substituting ``after the day before the applicable disaster date, and before January 1, 2011'' for ``after August 27, 2005, and before January 1, 2008'' each place it appears,
(C) by substituting ``the applicable disaster date'' for
``August 28, 2005'' in paragraph (2)(B)(ii)(I),
(D) by substituting ``qualified Disaster Recovery Assistance property'' for ``qualified Gulf Opportunity Zone property'' in paragraph (2)(B)(iv), and
(E) by substituting ``qualified Disaster Recovery Assistance casualty loss'' for ``qualified Gulf Opportunity Zone casualty loss'' each place it appears.
(9) Credit to holders of tax credit bonds.--Section 1400N(l)--
(A) by substituting ``Midwestern tax credit bond'' for
``Gulf tax credit bond'' each place it appears,
(B) by substituting ``any State in which a Midwestern disaster area is located'' for ``the State of Alabama, Louisiana, or Mississippi'' in paragraph (4)(A)(i),
(C) by substituting ``after December 31, 2008 and before January 1, 2010'' for ``after December 31, 2005, and before January 1, 2007'',
(D) by substituting ``shall not exceed $100,000,000.'' for
``shall not exceed'' and all that follows in paragraph
(4)(C), and
(E) by substituting ``the earliest applicable disaster date for Midwestern disaster areas within the State'' for ``August 28, 2005'' in paragraph (5)(A).
(10) New markets tax credit.--Section 1400N(m)--
(A) by substituting ``$300,000,000 for 2009 and 2010'' for
``$300,000,000 for 2005 and 2006'' in paragraph (2)(A), and
(B) by substituting ``$400,000,000 for 2011'' for
``$400,000,000 for 2007'' in paragraph (2)(B).
(11) Education tax benefits.--Section 1400O, by substituting ``2008 or 2009'' for ``2005 or 2006''.
(12) Housing tax benefits.--Section 1400P, by substituting
``the applicable disaster date'' for ``August 28, 2005'' in subsection (c)(1).
(13) Special rules for use of retirement funds.--Section 1400Q--
(A) by substituting ``qualified Disaster Recovery Assistance distribution'' for ``qualified hurricane distribution'' each place it appears,
(B) by substituting ``on or after the applicable disaster date and before January 1, 2010'' for ``on or after August 25, 2005, and before January 1, 2007'' in subsection
(a)(4)(A)(i),
(C) by substituting ``the applicable disaster date'' for
``August 28, 2005'' in subsections (a)(4)(A)(i) and
(c)(3)(B),
(D) by disregarding clauses (ii) and (iii) of subsection
(a)(4)(A) thereof,
(E) by substituting ``qualified storm damage distribution'' for ``qualified Katrina distribution'' each place it appears,
(F) by substituting ``after the date which is 6 months before the applicable disaster date and before the date which is the day after the applicable disaster date'' for ``after February 28, 2005, and before August 29, 2005'' in subsection
(b)(2)(B)(ii),
(G) by substituting ``the Midwestern disaster area, but not so purchased or constructed on account of severe storms, tornados, or flooding giving rise to the designation of the area as a disaster area'' for ``the Hurricane Katrina disaster area, but not so purchased or constructed on account of Hurricane Katrina'' in subsection (b)(2)(B)(iii),
(H) by substituting ``beginning on the applicable disaster date and ending on the date which is 5 months after the date of the enactment of the Housing and Economic Recovery Act of 2008'' for ``beginning on August 25, 2005, and ending on February 28, 2006'' in subsection (b)(3)(A),
(I) by substituting ``qualified storm damage individual'' for ``qualified Hurricane Katrina individual'' each place it appears,
(J) by substituting ``December 31, 2009'' for ``December 31, 2006'' in subsection (c)(2)(A),
(K) by substituting ``beginning on the date of the enactment of the Housing and Economic Recovery Act of 2008 and ending on December 31, 2009'' for ``beginning on September 24, 2005, and ending on December 31, 2006'' in subsection (c)(4)(A)(i),
(L) by substituting ``the applicable disaster date'' for
``August 25, 2005'' in subsection (c)(4)(A)(ii), and
(M) by substituting ``January 1, 2010'' for ``January 1, 2007'' in subsection (d)(2)(A)(ii).
(14) Employee retention credit for employers affected by severe storms, tornados, and flooding.--Section 1400R(a)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(B) by substituting ``January 1, 2009'' for ``January 1, 2006'' both places it appears, and
(C) only with respect to eligible employers who employed an average of not more than 200 employees on business days during the taxable year before the applicable disaster date.
(15) Temporary suspension of limitations on charitable contributions.--Section 1400S(a), by substituting the following paragraph for paragraph (4) thereof:
``(4) Qualified contributions.--
``(A) In general.--For purposes of this subsection, the term `qualified contribution' means any charitable contribution (as defined in section 170(c)) if--
``(i) such contribution--
``(I) is paid during the period beginning on the earliest applicable disaster date for all States and ending on December 31, 2008, in cash to an organization described in section 170(b)(1)(A), and
``(II) is made for relief efforts in 1 or more Midwestern disaster areas,
``(ii) the taxpayer obtains from such organization contemporaneous written acknowledgment (within the meaning of section 170(f)(8)) that such contribution was used (or is to be used) for relief efforts in 1 or more Midwestern disaster areas, and
``(iii) the taxpayer has elected the application of this subsection with respect to such contribution.
``(B) Exception.--Such term shall not include a contribution by a donor if the contribution is--
``(i) to an organization described in section 509(a)(3), or
``(ii) for establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2)).
``(C) Application of election to partnerships and s corporations.--In the case of a partnership or S corporation, the election under subparagraph (A)(iii) shall be made separately by each partner or shareholder.''.
(16) Suspension of certain limitations on personal casualty losses.--Section 1400S(b)(1), by substituting ``the applicable disaster date'' for ``August 25, 2005''.
(17) Special rule for determining earned income.--Section 1400S(d)--
(A) by treating an individual as a qualified individual if such individual's principal place of abode on the applicable disaster date was located in a Midwestern disaster area,
(B) by treating the applicable disaster date with respect to any such individual as the applicable date for purposes of such subsection, and
(C) by treating an area as described in paragraph
(2)(B)(ii) thereof if the area is a Midwestern disaster area only by reason of subsection (b)(2) of this section (relating to areas eligible only for public assistance)
(18) Adjustments regarding taxpayer and dependency status.--Section 1400S(e), by substituting ``2008 or 2009'' for ``2005 or 2006''.
(e) Modifications to Katrina Emergency Tax Relief Act of 2005.--The following provisions of the Katrina Emergency Tax Relief Act of 2005 shall be applied with the following modifications:
(1) Additional exemption for housing displaced individual.--Section 302--
(A) by substituting ``Midwestern displaced individual'' for
``Hurricane Katrina displaced individual'' each place it appears, and
(B) by treating an area as a core disaster area for purposes of applying subsection (c) thereof if the area is a Midwestern disaster area without regard to subsection (b)(2) of this section (relating to areas eligible only for public assistance).
(2) Increase in standard mileage rate.--Section 303, by substituting ``beginning on the applicable disaster date and ending on December 31, 2009'' for ``beginning on August 25, 2005, and ending on December 31, 2006''.
(3) Mileage reimbursements for charitable volunteers.--Section 304--
(A) by substituting ``beginning on the applicable disaster date and ending on December 31, 2009'' for ``beginning on August 25, 2005, and ending on December 31, 2006'' in subsection (a), and
(B) by substituting ``the applicable disaster date'' for
``August 25, 2005'' in subsection (a).
(4) Exclusion of certain cancellation of indebtedness income.--Section 401--
(A) by treating an individual whose principal place of abode on the applicable disaster date was in a Midwestern disaster area (determined without regard to subsection (b)(2) of this section) as an individual described in subsection
(b)(1) thereof, and by treating an individual whose principal place of abode on the applicable disaster date was in a Midwestern disaster area solely by reason of subsection
(b)(2) of this section as an individual described in subsection (b)(2) thereof,
(B) by substituting ``the applicable disaster date'' for
``August 28, 2005'' both places it appears, and
(C) by substituting ``January 1, 2010'' for ``January 1, 2007'' in subsection (e).
(5) Extension of replacement period for nonrecognition of gain.--Section 405, by substituting ``on or after the applicable disaster date'' for ``on or after August 25, 2005''.
SEC. ___. ENHANCED CHARITABLE DEDUCTIONS FOR CONTRIBUTIONS OF
FOOD INVENTORY.
(a) Increased Amount of Deduction.--
(1) In general.--Clause (iv) of section 170(e)(3)(C)
(relating to termination) of the Internal Revenue Code of 1986 is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(2) Effective date.--The amendment made by this subsection shall apply to contributions made after December 31, 2007.
(b) Temporary Suspension of Limitations on Charitable Contributions.--
(1) In general.--Section 170(b) of such Code is amended by adding at the end the following new paragraph:
``(3) Temporary suspension of limitations on charitable contributions.--In the case of a qualified farmer or rancher
(as defined in paragraph (1)(E)(v)), any charitable contribution of food--
``(A) to which subsection (e)(3)(C) applies (without regard to clause (ii) thereof), and
``(B) which is made during the period beginning on the date of the enactment of this paragraph and before January 1, 2009,
shall be treated for purposes of paragraph (1)(E) or (2)(B), whichever is applicable, as if it were a qualified conservation contribution which is made by a qualified farmer or rancher and which otherwise meets the requirements of such paragraph.''.
(2) Effective date.--The amendment made by this subsection shall apply to taxable years ending after the date of the enactment of this Act.
SEC. ___. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF BOOK INVENTORY.
(a) Extension.--Clause (iv) of section 170(e)(3)(D) of the Internal Revenue Code of 1986 (relating to termination) of the Internal Revenue Code of 1986 is amended by striking
``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Clerical Amendment.--Clause (iii) of section 170(e)(3)(D) of such Code (relating to certification by donee) is amended by inserting ``of books'' after ``to any contribution''.
(c) Effective Date.--The amendments made by this section shall apply to contributions made after December 31, 2007.
SEC. ___. REPORTING REQUIREMENTS RELATING TO DISASTER RELIEF
CONTRIBUTIONS.
(a) In General.--Section 6033(b) of the Internal Revenue Code of 1986 (relating to returns of certain organizations described in section 501(c)(3)) is amended by striking
``and'' at the end of paragraph (13), by redesignating paragraph (14) as paragraph (15), and by adding after paragraph (13) the following new paragraph:
``(14) such information as the Secretary may require with respect to disaster relief activities, including the amount and use of qualified contributions to which section 1400S(a) applies, and''.
(b) Effective Date.--The amendments made by this section shall apply to returns the due date for which (determined without regard to any extension) occurs after December 31, 2008.
______
SA 5039. Mr. SCHUMER submitted an amendment intended to be proposed by him to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 455, between lines 14 and 15, insert the following:
SEC. 1606. VALUATION OF MULTIFAMILY PROPERTIES IN
NONCOMPETITIVE SALES BY HUD TO STATES AND
LOCALITIES.
Subtitle A of title II of the Deficit Reduction Act of 2005
(Public Law 109-171; 120 Stat. 7) is amended by adding at the end the following new section:
``SEC. 2004. VALUATION OF MULTIFAMILY PROPERTIES IN
NONCOMPETITIVE SALES BY HUD TO STATES AND
LOCALITIES.
``Notwithstanding any other provision of law, in determining the market value of any multifamily real property or multifamily loan for any noncompetitive sale to a State or local government entity occurring during fiscal years 2008, 2009, or 2010, the Secretary shall consider, but not be limited to, industry standard appraisal practices, including the cost of repairs needed to bring the property at least to minimum State and local code standards and of maintaining the existing affordability restrictions imposed by the Secretary on the multifamily real property or multifamily loan.''.
______
SA 5040. Ms. LANDRIEU (for herself, Mr. Grassley, Mr. Harkin, and Mr. Wicker) submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 510, strike lines 1 through 5, and insert the following:
(C) establish land banks for homes that have been foreclosed upon;
(D) demolish blighted structures; and
(E) redevelop demolished, blighted, or vacant properties, including those damaged or destroyed in areas subject to a disaster declaration by the President under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
______
SA 5041. Mr. CASEY (for himself and Mr. Specter) submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 455, between lines 14 and 15, insert the following:
SEC. 1606. SENSE OF THE SENATE ON THE JOINT EFFORTS OF THE
CITY OF PHILADELPHIA AND PHILADELPHIA COURT OF
COMMON PLEAS TO PREVENT HOME FORECLOSURES.
(a) Findings.--The Senate finds that--
(1) the Mortgage Bankers Association reported this month that over 1,000,000 homes have entered foreclosure proceedings, the highest rate of such proceedings ever recorded;
(2) the Center for Responsible Lending reports that 7,200,000 families now hold a subprime loan;
(3) the Joint Economic Committee of the Congress estimates that from the third quarter of 2007 through the fourth quarter of 2009 there will be 45,470 subprime foreclosures in Pennsylvania;
(4) the Joint Economic Committee further predicts that the cumulative loss in property value resulting from these foreclosures will exceed $2,400,000,000 and the estimated loss in property taxes will be $34,000,000;
(5) the Pew Charitable Trusts reports that 1,684,475 Pennsylvania homeowners will experience home devaluation due to subprime foreclosures in 2008 and 2009;
(6) a 2005 Freddie Mac/Roper poll of homeowners indicates that more than 6 in 10 delinquent borrowers are not aware of services that lenders offer to individuals having trouble with their mortgage;
(7) the Department of Housing and Urban Development program statistics show that 96 percent of the families that receive housing counseling services avoid foreclosure;
(8) Philadelphia County reported 730 properties filed for foreclosure in April 2008, more foreclosure filings than any other county in Pennsylvania;
(9) the Center for Responsible Lending estimates that Philadelphia County could lose up to 4,444 homes to foreclosure; and
(10) it has been over 1 year since the first legislation dealing with the subprime mortgage crisis was introduced in the Senate to consider housing legislation that provides homeowners with relief and that alleviates the foreclosure crisis.
(b) Sense of the Senate.--It is the sense of the Senate that--
(1) the City of Philadelphia and the Philadelphia Court of Common Pleas should be commended for their efforts to facilitate negotations between borrowers and lenders to attempt to restructure loan terms and prevent foreclosures;
(2) the commitment of such entitites to their home foreclosure prevention program, such program's requirement of mandatory counseling for delinquent borrowers, and such program's use of professional housing counselors to negotiate between lenders and homeowners represent the best practices in the industry; and
(3) the Secretary of Housing and Urban Development should, to the extent possible, inform other cities about the Philadelphia program and advise such other cities that the funds provided under section 2401 may be used to defray the cost of similar foreclosure prevention programs.
______
SA 5042. Mr. WYDEN (for himself, Mr. Smith, Ms. Cantwell, and Mrs. Murray) submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security; developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 614, line 23, insert ``, but only with respect to property the acquisition of which has not occurred, or the construction, reconstruction, or renovation of which has not begun, before the date of the enactment of the Housing Assistance Tax Act of 2008'' after ``Alabama''.
______
SA 5043. Mr. BINGAMAN (for himself and Mr. Domenici) submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security; developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. _____. INCREASING ACCESS AND UNDERSTANDING OF ENERGY
EFFICIENT MORTGAGES.
(a) Definition.--As used in this section, the term ``energy efficient mortgage'' has the same meaning as given that term in paragraph (24) of section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704(24)).
(b) Recommendations To Eliminate Barriers to Use of Energy Efficient Mortgages.--
(1) In general.--Not later than 180 days after the date of enactment of this section, the Secretary of Housing and Urban Development, in conjunction with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall consult with the residential mortgage industry and States to develop recommendations to eliminate the barriers that exist to increasing the availability, use, and purchase of energy efficient mortgages, including such barriers as--
(A) the lack of reliable and accessible information on such mortgages, including estimated energy savings and other benefits of energy efficient housing;
(B) the confusion regarding underwriting requirements and differences among various energy efficient mortgage programs;
(C) the complex and time consuming process of securing such mortgages;
(D) the lack of publicly available research on the default risk of such mortgages; and
(E) the availability of certified or accredited home energy rating services.
(2) Report to congress.--The Secretary of Housing and Urban Development shall submit a report to Congress that--
(A) summarizes the recommendations developed under paragraph (1); and
(B) includes any recommendations for statutory, regulatory, or administrative changes the Secretary deems necessary to institute such recommendations.
(c) Energy Efficient Mortgages Outreach Campaign.--
(1) In general.--The Secretary of Housing and Urban Development, in consultation and coordination with the Secretary of Energy, the Administrator of the Environmental Protection Agency, and State Energy and Housing Finance Directors, shall carry out an education and outreach campaign to inform and educate consumers, home builders, residential lenders, and other real estate professionals on the availability, benefits, and advantages of--
(A) improved energy efficiency in housing; and
(B) energy efficient mortgages.
(2) Authorization of appropriations.--There are authorized to be appropriated such sums as are necessary to carry out the education and outreach campaign described under paragraph
(1).
______
SA 5044. Mrs. LINCOLN (for herself and Mr. Smith) submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security; developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 587, line 24, insert ``and `80 percent of the class life of such property' shall be substituted for `20 years' in paragraph (1)(B)(ii)(III) thereof'' after ``thereof''.
______
SA 5045. Mr. BAUCUS submitted an amendment intended to be proposed by him to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 630, after line 2, insert the following:
TITLE IV--ENERGY TAX INCENTIVES
Subtitle A--Energy Production Incentives
PART I--RENEWABLE ENERGY INCENTIVES
SEC. 3101. RENEWABLE ENERGY CREDIT.
(a) Extension of Credit.--
(1) 1-year extension for wind facilities.--Paragraph (1) of section 45(d) is amended by striking ``January 1, 2009'' and inserting ``January 1, 2010''.
(2) 3-year extension for certain other facilities.--Each of the following provisions of section 45(d) is amended by striking ``January 1, 2009'' and inserting ``January 1, 2012'':
(A) Clauses (i) and (ii) of paragraph (2)(A).
(B) Clauses (i)(I) and (ii) of paragraph (3)(A).
(C) Paragraph (4).
(D) Paragraph (5).
(E) Paragraph (6).
(F) Paragraph (7).
(G) Subparagraphs (A) and (B) of paragraph (9).
(b) Modification of Credit Phaseout.--
(1) Repeal of phaseout.--Subsection (b) of section 45 is amended--
(A) by striking paragraph (1), and
(B) by striking ``the 8 cent amount in paragraph (1),'' in paragraph (2) thereof.
(2) Limitation based on investment in facility.--Subsection
(b) of section 45 is amended by inserting before paragraph
(2) the following new paragraph:
``(1) Limitation based on investment in facility.--
``(A) In general.--In the case of any qualified facility originally placed in service after December 31, 2009, the amount of the credit determined under subsection (a) for any taxable year with respect to electricity produced at such facility shall not exceed the product of--
``(i) the applicable percentage with respect to such facility, multiplied by
``(ii) the eligible basis of such facility.
``(B) Carryforward of unused limitation and excess credit.--
``(i) Unused limitation.--If the limitation imposed under subparagraph (A) with respect to any facility for any taxable year exceeds the prelimitation credit for such facility for such taxable year, the limitation imposed under subparagraph
(A) with respect to such facility for the succeeding taxable year shall be increased by the amount of such excess.
``(ii) Excess credit.--If the prelimitation credit with respect to any facility for any taxable year exceeds the limitation imposed under subparagraph (A) with respect to such facility for such taxable year, the credit determined under subsection (a) with respect to such facility for the succeeding taxable year (determined before the application of subparagraph (A) for such succeeding taxable year) shall be increased by the amount of such excess. With respect to any facility, no amount may be carried forward under this clause to any taxable year beginning after the 10-year period described in subsection (a)(2)(A)(ii) with respect to such facility.
``(iii) Prelimitation credit.--The term `prelimitation credit' with respect to any facility for a taxable year means the credit determined under subsection (a) with respect to such facility for such taxable year, determined without regard to subparagraph (A) and after taking into account any increase for such taxable year under clause (ii).
``(C) Applicable percentage.--For purposes of this paragraph--
``(i) In general.--The term `applicable percentage' means, with respect to any facility, the appropriate percentage prescribed by the Secretary for the month in which such facility is originally placed in service.
``(ii) Method of prescribing applicable percentages.--The applicable percentages prescribed by the Secretary for any month under clause (i) shall be percentages which yield over a 10-year period amounts of limitation under subparagraph (A) which have a present value equal to 35 percent of the eligible basis of the facility.
``(iii) Method of discounting.--The present value under clause (ii) shall be determined--
``(I) as of the last day of the 1st year of the 10-year period referred to in clause (ii),
``(II) by using a discount rate equal to the greater of 110 percent of the Federal long-term rate as in effect under section 1274(d) for the month preceding the month for which the applicable percentage is being prescribed, or 4.5 percent, and
``(III) by taking into account the limitation under subparagraph (A) for any year on the last day of such year.
``(D) Eligible basis.--For purposes of this paragraph--
``(i) In general.--The term `eligible basis' means, with respect to any facility, the sum of--
``(I) the basis of such facility determined as of the time that such facility is originally placed in service, and
``(II) the portion of the basis of any shared qualified property which is properly allocable to such facility under clause (ii).
``(ii) Rules for allocation.--For purposes of subclause
(II) of clause (i), the basis of shared qualified property shall be allocated among all qualified facilities which are projected to be placed in service and which require utilization of such property in proportion to projected generation from such facilities.
``(iii) Shared qualified property.--For purposes of this paragraph, the term `shared qualified property' means, with respect to any facility, any property described in section 168(e)(3)(B)(vi)--
``(I) which a qualified facility will require for utilization of such facility, and
``(II) which is not a qualified facility.
``(iv) Special rule relating to geothermal facilities.--In the case of any qualified facility using geothermal energy to produce electricity, the basis of such facility for purposes of this paragraph shall be determined as though intangible drilling and development costs described in section 263(c) were capitalized rather than expensed.
``(E) Special rule for first and last year of credit period.--In the case of any taxable year any portion of which is not within the 10-year period described in subsection
(a)(2)(A)(ii) with respect to any facility, the amount of the limitation under subparagraph (A) with respect to such facility shall be reduced by an amount which bears the same ratio to the amount of such limitation (determined without regard to this subparagraph) as such portion of the taxable year which is not within such period bears to the entire taxable year.
``(F) Election to treat all facilities placed in service in a year as 1 facility.--At the election of the taxpayer, all qualified facilities which are part of the same project and which are placed in service during the same calendar year shall be treated for purposes of this section as 1 facility which is placed in service at the mid-point of such year or the first day of the following calendar year.''.
(c) Trash Facility Clarification.--Paragraph (7) of section 45(d) is amended--
(1) by striking ``facility which burns'' and inserting
``facility (other than a facility described in paragraph (6)) which uses'', and
(2) by striking ``combustion''.
(d) Expansion of Biomass Facilities.--
(1) Open-loop biomass facilities.--Paragraph (3) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:
``(B) Expansion of facility.--Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.''.
(2) Closed-loop biomass facilities.--Paragraph (2) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following new subparagraph:
``(B) Expansion of facility.--Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A)(i), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.''.
(e) Sales of Net Electricity to Regulated Public Utilities Treated as Sales to Unrelated Persons.--Paragraph (4) of section 45(e) is amended by adding at the end the following new sentence: ``The net amount of electricity sold by any taxpayer to a regulated public utility (as defined in section 7701(a)(33)) shall be treated as sold to an unrelated person.''.
(f) Modification of Rules for Hydropower Production.--Subparagraph (C) of section 45(c)(8) is amended to read as follows:
``(C) Nonhydroelectric dam.--For purposes of subparagraph
(A), a facility is described in this subparagraph if--
``(i) the hydroelectric project installed on the nonhydroelectric dam is licensed by the Federal Energy Regulatory Commission and meets all other applicable environmental, licensing, and regulatory requirements,
``(ii) the nonhydroelectric dam was placed in service before the date of the enactment of this paragraph and operated for flood control, navigation, or water supply purposes and did not produce hydroelectric power on the date of the enactment of this paragraph, and
``(iii) the hydroelectric project is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license requirements imposed under applicable law that change the water surface elevation for the purpose of improving environmental quality of the affected waterway.
The Secretary, in consultation with the Federal Energy Regulatory Commission, shall certify if a hydroelectric project licensed at a nonhydroelectric dam meets the criteria in clause (iii). Nothing in this section shall affect the standards under which the Federal Energy Regulatory Commission issues licenses for and regulates hydropower projects under part I of the Federal Power Act.''.
(g) Effective Date.--
(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to property originally placed in service after December 31, 2008.
(2) Repeal of credit phaseout.--The amendments made by subsection (b)(1) shall apply to taxable years ending after December 31, 2008.
(3) Limitation based on investment in facility.--The amendment made by subsection (b)(2) shall apply to property originally placed in service after December 31, 2009.
(4) Trash facility clarification; sales to related regulated public utilities.--The amendments made by subsections (c) and (e) shall apply to electricity produced and sold after the date of the enactment of this Act.
(5) Expansion of biomass facilities.--The amendments made by subsection (d) shall apply to property placed in service after the date of the enactment of this Act.
SEC. 3102. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM
MARINE RENEWABLES.
(a) In General.--Paragraph (1) of section 45(c) is amended by striking ``and'' at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting ``, and'', and by adding at the end the following new subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(b) Marine Renewables.--Subsection (c) of section 45 is amended by adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and hydrokinetic renewable energy' means energy derived from--
``(i) waves, tides, and currents in oceans, estuaries, and tidal areas,
``(ii) free flowing water in rivers, lakes, and streams,
``(iii) free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, or
``(iv) differentials in ocean temperature (ocean thermal energy conversion).
``(B) Exceptions.--Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph
(A)(iii)), or impoundment for electric power production purposes.''.
(c) Definition of Facility.--Subsection (d) of section 45 is amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy facilities.--In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term
`qualified facility' means any facility owned by the taxpayer--
``(A) which has a nameplate capacity rating of at least 150 kilowatts, and
``(B) which is originally placed in service on or after the date of the enactment of this paragraph and before January 1, 2012.''.
(d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is amended by striking ``or (9)'' and inserting ``(9), or
(11)''.
(e) Coordination With Small Irrigation Power.--Paragraph
(5) of section 45(d), as amended by section 3101, is amended by striking ``January 1, 2012'' and inserting ``the date of the enactment of paragraph (11)''.
(f) Effective Date.--The amendments made by this section shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.
SEC. 3103. ENERGY CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) are each amended by striking
``January 1, 2009'' and inserting ``January 1, 2015''.
(2) Fuel cell property.--Subparagraph (E) of section 48(c)(1) is amended by striking ``December 31, 2008'' and inserting ``December 31, 2014''.
(3) Microturbine property.--Subparagraph (E) of section 48(c)(2) is amended by striking ``December 31, 2008'' and inserting ``December 31, 2014''.
(b) Allowance of Energy Credit Against Alternative Minimum Tax.--Subparagraph (B) of section 38(c)(4) is amended by striking ``and'' at the end of clause (iii), by redesignating clause (iv) as clause (v), and by inserting after clause
(iii) the following new clause:
``(iv) the credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48, and''.
(c) Energy Credit for Combined Heat and Power System Property.--
(1) In general.--Section 48(a)(3)(A) (defining energy property) is amended by striking ``or'' at the end of clause
(iii), by inserting ``or'' at the end of clause (iv), and by adding at the end the following new clause:
``(v) combined heat and power system property,''.
(2) Combined heat and power system property.--Section 48 is amended by adding at the end the following new subsection:
``(d) Combined Heat and Power System Property.--For purposes of subsection (a)(3)(A)(v)--
``(1) Combined heat and power system property.--The term
`combined heat and power system property' means property comprising a system--
``(A) which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy
(including heating and cooling applications),
``(B) which produces--
``(i) at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof), and
``(ii) at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof),
``(C) the energy efficiency percentage of which exceeds 60 percent, and
``(D) which is placed in service before January 1, 2015.
``(2) Limitation.--
``(A) In general.--In the case of combined heat and power system property with an electrical capacity in excess of the applicable capacity placed in service during the taxable year, the credit under subsection (a)(1) (determined without regard to this paragraph) for such year shall be equal to the amount which bears the same ratio to such credit as the applicable capacity bears to the capacity of such property.
``(B) Applicable capacity.--For purposes of subparagraph
(A), the term `applicable capacity' means 15 megawatts or a mechanical energy capacity of more than 20,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.
``(C) Maximum capacity.--The term `combined heat and power system property' shall not include any property comprising a system if such system has a capacity in excess of 50 megawatts or a mechanical energy capacity in excess of 67,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.
``(3) Special rules.--
``(A) Energy efficiency percentage.--For purposes of this subsection, the energy efficiency percentage of a system is the fraction--
``(i) the numerator of which is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates, and expected to be consumed in its normal application, and
``(ii) the denominator of which is the lower heating value of the fuel sources for the system.
``(B) Determinations made on btu basis.--The energy efficiency percentage and the percentages under paragraph
(1)(B) shall be determined on a Btu basis.
``(C) Input and output property not included.--The term
`combined heat and power system property' does not include property used to transport the energy source to the facility or to distribute energy produced by the facility.
``(4) Systems using biomass.--If a system is designed to use biomass (within the meaning of paragraphs (2) and (3) of section 45(c) without regard to the last sentence of paragraph (3)(A)) for at least 90 percent of the energy source--
``(A) paragraph (1)(C) shall not apply, but
``(B) the amount of credit determined under subsection (a) with respect to such system shall not exceed the amount which bears the same ratio to such amount of credit (determined without regard to this paragraph) as the energy efficiency percentage of such system bears to 60 percent.''.
(d) Increase of Credit Limitation for Fuel Cell Property.--Subparagraph (B) of section 48(c)(1) is amended by striking
``$500'' and inserting ``$1,500''.
(e) Public Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is amended by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).
(B) Paragraph (2) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act.
(2) Allowance against alternative minimum tax.--The amendments made by subsection (b) shall apply to credits determined under section 46 of the Internal Revenue Code of 1986 in taxable years beginning after the date of the enactment of this Act and to carrybacks of such credits.
(3) Combined heat and power and fuel cell property.--The amendments made by subsections (c) and (d) shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
(4) Public utility property.--The amendments made by subsection (e) shall apply to periods after February 13, 2008, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
SEC. 3104. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) is amended by striking
``December 31, 2008'' and inserting ``December 31, 2014''.
(b) Maximum Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1)(A) is amended by striking ``$2,000'' and inserting ``$4,000''.
(2) Conforming amendment.--Section 25D(e)(4)(A)(i) is amended by striking ``$6,667'' and inserting ``$13,333''.
(c) Credit for Residential Wind Property.--
(1) In general.--Section 25D(a) is amended by striking
``and'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``, and'', and by adding at the end the following new paragraph:
``(4) 30 percent of the qualified small wind energy property expenditures made by the taxpayer during such year.''.
(2) Limitation.--Section 25D(b)(1) is amended by striking
``and'' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ``, and'', and by adding at the end the following new subparagraph:
``(D) $500 with respect to each half kilowatt of capacity
(not to exceed $4,000) of wind turbines for which qualified small wind energy property expenditures are made.''.
(3) Qualified small wind energy property expenditures.--
(A) In general.--Section 25D(d) is amended by adding at the end the following new paragraph:
``(4) Qualified small wind energy property expenditure.--The term `qualified small wind energy property expenditure' means an expenditure for property which uses a wind turbine to generate electricity for use in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.''.
(B) No double benefit.--Section 45(d)(1) is amended by adding at the end the following new sentence: ``Such term shall not include any facility with respect to which any qualified small wind energy property expenditure (as defined in subsection (d)(4) of section 25D) is taken into account in determining the credit under such section.''.
(4) Maximum expenditures in case of joint occupancy.--Section 25D(e)(4)(A) is amended by striking ``and'' at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ``, and'', and by adding at the end the following new clause:
``(iv) $1,667 in the case of each half kilowatt of capacity
(not to exceed $13,333) of wind turbines for which qualified small wind energy property expenditures are made.''.
(d) Credit for Geothermal Heat pump Systems.--
(1) In general.--Section 25D(a), as amended by subsection
(c), is amended by striking ``and'' at the end of paragraph
(3), by striking the period at the end of paragraph (4) and inserting ``, and'', and by adding at the end the following new paragraph:
``(5) 30 percent of the qualified geothermal heat pump property expenditures made by the taxpayer during such year.''.
(2) Limitation.--Section 25D(b)(1), as amended by subsection (c), is amended by striking ``and'' at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting ``, and'', and by adding at the end the following new subparagraph:
``(E) $2,000 with respect to any qualified geothermal heat pump property expenditures.''.
(3) Qualified geothermal heat pump property expenditure.--Section 25D(d), as amended by subsection (c), is amended by adding at the end the following new paragraph:
``(5) Qualified geothermal heat pump property expenditure.--
``(A) In general.--The term `qualified geothermal heat pump property expenditure' means an expenditure for qualified geothermal heat pump property installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.
``(B) Qualified geothermal heat pump property.--The term
`qualified geothermal heat pump property' means any equipment which--
``(i) uses the ground or ground water as a thermal energy source to heat the dwelling unit referred to in subparagraph
(A) or as a thermal energy sink to cool such dwelling unit, and
``(ii) meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made.''.
(4) Maximum expenditures in case of joint occupancy.--Section 25D(e)(4)(A), as amended by subsection (c), is amended by striking ``and'' at the end of clause (iii), by striking the period at the end of clause (iv) and inserting
``, and'', and by adding at the end the following new clause:
``(v) $6,667 in the case of any qualified geothermal heat pump property expenditures.''.
(e) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of Unused Credit.--
``(1) Limitation based on amount of tax.--In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits allowed against regular and alternative minimum tax.--In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting ``and section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking ``and 25B'' and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking ``section 23'' and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and 25B'' and inserting ``25B, and 25D''.
(f) Effective Date.--
(1) In general.--The amendments made by this section shall apply to taxable years beginning after December 31, 2007.
(2) Application of egtrra sunset.--The amendments made by subparagraphs (A) and (B) of subsection (e)(2) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.
SEC. 3105. SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC
RESTRUCTURING POLICY.
(a) Extension for Qualified Electric Utilities.--
(1) In general.--Paragraph (3) of section 451(i) is amended by inserting ``(before January 1, 2010, in the case of a qualified electric utility)'' after ``January 1, 2008''.
(2) Qualified electric utility.--Subsection (i) of section 451 is amended by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively, and by inserting after paragraph (5) the following new paragraph:
``(6) Qualified electric utility.--For purposes of this subsection, the term `qualified electric utility' means a person that, as of the date of the qualifying electric transmission transaction, is vertically integrated, in that it is both--
``(A) a transmitting utility (as defined in section 3(23) of the Federal Power Act (16 U.S.C. 796(23))) with respect to the transmission facilities to which the election under this subsection applies, and
``(B) an electric utility (as defined in section 3(22) of the Federal Power Act (16 U.S.C. 796(22))).''.
(b) Extension of Period for Transfer of Operational Control Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is amended by striking ``December 31, 2007'' and inserting ``the date which is 4 years after the close of the taxable year in which the transaction occurs''.
(c) Property Located Outside the United States Not Treated as Exempt Utility Property.--Paragraph (5) of section 451(i) is amended by adding at the end the following new subparagraph:
``(C) Exception for property located outside the united states.--The term `exempt utility property' shall not include any property which is located outside the United States.''.
(d) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall apply to transactions after December 31, 2007.
(2) Transfers of operational control.--The amendment made by subsection (b) shall take effect as if included in section 909 of the American Jobs Creation Act of 2004.
(3) Exception for property located outside the united states.--The amendment made by subsection (c) shall apply to transactions after the date of the enactment of this Act.
SEC. 3106. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:
``SEC. 54C. NEW CLEAN RENEWABLE ENERGY BONDS.
``(a) New Clean Renewable Energy Bond.--For purposes of this subpart, the term `new clean renewable energy bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such issue are to be used for capital expenditures incurred by governmental bodies, public power providers, or cooperative electric companies for one or more qualified renewable energy facilities,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this section.
``(b) Reduced Credit Amount.--The annual credit determined under section 54A(b) with respect to any new clean renewable energy bond shall be 70 percent of the amount so determined without regard to this subsection.
``(c) Limitation on Amount of Bonds Designated.--
``(1) In general.--The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated under this subsection to such issuer.
``(2) National limitation on amount of bonds designated.--There is a national new clean renewable energy bond limitation of $2,000,000,000 which shall be allocated by the Secretary as provided in paragraph (3), except that--
``(A) not more than 33\1/3\ percent thereof may be allocated to qualified projects of public power providers,
``(B) not more than 33\1/3\ percent thereof may be allocated to qualified projects of governmental bodies, and
``(C) not more than 33\1/3\ percent thereof may be allocated to qualified projects of cooperative electric companies.
``(3) Method of allocation.--
``(A) Allocation among public power providers.--After the Secretary determines the qualified projects of public power providers which are appropriate for receiving an allocation of the national new clean renewable energy bond limitation, the Secretary shall, to the maximum extent practicable, make allocations among such projects in such manner that the amount allocated to each such project bears the same ratio to the cost of such project as the limitation under paragraph
(2)(A) bears to the cost of all such projects.
``(B) Allocation among governmental bodies and cooperative electric companies.--The Secretary shall make allocations of the amount of the national new clean renewable energy bond limitation described in paragraphs (2)(B) and (2)(C) among qualified projects of governmental bodies and cooperative electric companies, respectively, in such manner as the Secretary determines appropriate.
``(d) Definitions.--For purposes of this section--
``(1) Qualified renewable energy facility.--The term
`qualified renewable energy facility' means a qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and to any placed in service date) owned by a public power provider, a governmental body, or a cooperative electric company.
``(2) Public power provider.--The term `public power provider' means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on the date of the enactment of this paragraph).
``(3) Governmental body.--The term `governmental body' means any State or Indian tribal government, or any political subdivision thereof.
``(4) Cooperative electric company.--The term `cooperative electric company' means a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C).
``(5) Clean renewable energy bond lender.--The term `clean renewable energy bond lender' means a lender which is a cooperative which is owned by, or has outstanding loans to, 100 or more cooperative electric companies and is in existence on February 1, 2002, and shall include any affiliated entity which is controlled by such lender.
``(6) Qualified issuer.--The term `qualified issuer' means a public power provider, a cooperative electric company, a governmental body, a clean renewable energy bond lender, or a not-for-profit electric utility which has received a loan or loan guarantee under the Rural Electrification Act.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified tax credit bond' means--
``(A) a qualified forestry conservation bond, or
``(B) a new clean renewable energy bond,which is part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and (6).''.
(2) Subparagraph (C) of section 54A(d)(2) is amended to read as follows:
``(C) Qualified purpose.--For purposes of this paragraph, the term `qualified purpose' means--
``(i) in the case of a qualified forestry conservation bond, a purpose specified in section 54B(e), and
``(ii) in the case of a new clean renewable energy bond, a purpose specified in section 54C(a)(1).''.
(3) The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
``Sec. 54C. Qualified clean renewable energy bonds.''.
(c) Effective Date.--The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.
PART II--CARBON MITIGATION PROVISIONS
SEC. 3111. EXPANSION AND MODIFICATION OF ADVANCED COAL
PROJECT INVESTMENT CREDIT.
(a) Modification of Credit Amount.--Section 48A(a) is amended by striking ``and'' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting
``, and'', and by adding at the end the following new paragraph:
``(3) 30 percent of the qualified investment for such taxable year in the case of projects described in clause
(iii) of subsection (d)(3)(B).''.
(b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A) is amended by striking ``$1,300,000,000'' and inserting
``$2,550,000,000''.
(c) Authorization of Additional Projects.--
(1) In general.--Subparagraph (B) of section 48A(d)(3) is amended to read as follows:
``(B) Particular projects.--Of the dollar amount in subparagraph (A), the Secretary is authorized to certify--
``(i) $800,000,000 for integrated gasification combined cycle projects the application for which is submitted during the period described in paragraph (2)(A)(i),
``(ii) $500,000,000 for projects which use other advanced coal-based generation technologies the application for which is submitted during the period described in paragraph
(2)(A)(i), and
``(iii) $1,250,000,000 for advanced coal-based generation technology projects the application for which is submitted during the period described in paragraph (2)(A)(ii).''.
(2) Application period for additional projects.--Subparagraph (A) of section 48A(d)(2) is amended to read as follows:
``(A) Application period.--Each applicant for certification under this paragraph shall submit an application meeting the requirements of subparagraph (B). An applicant may only submit an application--
``(i) for an allocation from the dollar amount specified in clause (i) or (ii) of paragraph (3)(B) during the 3-year period beginning on the date the Secretary establishes the program under paragraph (1), and
``(ii) for an allocation from the dollar amount specified in paragraph (3)(B)(iii) during the 3-year period beginning at the earlier of the termination of the period described in clause (i) or the date prescribed by the Secretary.''.
(3) Capture and sequestration of carbon dioxide emissions requirement.--
(A) In general.--Section 48A(e)(1) is amended by striking
``and'' at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting ``; and'', and by adding at the end the following new subparagraph:
``(G) in the case of any project the application for which is submitted during the period described in subsection
(d)(2)(A)(ii), the project includes equipment which separates and sequesters at least 65 percent (70 percent in the case of an application for reallocated credits under subsection
(d)(4)) of such project's total carbon dioxide emissions.''.
(B) Highest priority for projects which sequester carbon dioxide emissions.--Section 48A(e)(3) is amended by striking
``and'' at the end of subparagraph (A)(iii), by striking the period at the end of subparagraph (B)(iii) and inserting ``, and'', and by adding at the end the following new subparagraph:
``(C) give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions.''.
(C) Recapture of credit for failure to sequester.--Section 48A is amended by adding at the end the following new subsection:
``(i) Recapture of Credit for Failure To Sequester.--The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain the separation and sequestration requirements of subsection (e)(1)(G).''.
(4) Additional priority for research partnerships.--Section 48A(e)(3)(B), as amended by paragraph (3)(B), is amended--
(A) by striking ``and'' at the end of clause (ii),
(B) by redesignating clause (iii) as clause (iv), and
(C) by inserting after clause (ii) the following new clause:
``(iii) applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)), and''.
(5) Clerical amendment.--Section 48A(e)(3) is amended by striking ``integrated gasification combined cycle'' in the heading and inserting ``certain''.
(d) Disclosure of Allocations.--Section 48A(d) is amended by adding at the end the following new paragraph:
``(5) Disclosure of allocations.--The Secretary shall, upon making a certification under this subsection or section 48B(d), publicly disclose the identity of the applicant and the amount of the credit certified with respect to such applicant.''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to credits the application for which is submitted during the period described in section 48A(d)(2)(A)(ii) of the Internal Revenue Code of 1986 and which are allocated or reallocated after the date of the enactment of this Act.
(2) Disclosure of allocations.--The amendment made by subsection (d) shall apply to certifications made after the date of the enactment of this Act.
(3) Clerical amendment.--The amendment made by subsection
(c)(5) shall take effect as if included in the amendment made by section 1307(b) of the Energy Tax Incentives Act of 2005.
SEC. 3112. EXPANSION AND MODIFICATION OF COAL GASIFICATION
INVESTMENT CREDIT.
(a) Modification of Credit Amount.--Section 48B(a) is amended by inserting ``(30 percent in the case of credits allocated under subsection (d)(1)(B))'' after ``20 percent''.
(b) Expansion of Aggregate Credits.--Section 48B(d)(1) is amended by striking ``shall not exceed $350,000,000'' and all that follows and inserting ``shall not exceed--
``(A) $350,000,000, plus
``(B) $250,000,000 for qualifying gasification projects that include equipment which separates and sequesters at least 75 percent of such project's total carbon dioxide emissions.''.
(c) Recapture of Credit for Failure To Sequester.--Section 48B is amended by adding at the end the following new subsection:
``(f) Recapture of Credit for Failure To Sequester.--The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain the separation and sequestration requirements for such project under subsection
(d)(1).''.
(d) Selection Priorities.--Section 48B(d) is amended by adding at the end the following new paragraph:
``(4) Selection priorities.--In determining which qualifying gasification projects to certify under this section, the Secretary shall--
``(A) give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions, and
``(B) give high priority to applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)).''.
(e) Effective Date.--The amendments made by this section shall apply to credits described in section 48B(d)(1)(B) of the Internal Revenue Code of 1986 which are allocated or reallocated after the date of the enactment of this Act.
SEC. 3113. TEMPORARY INCREASE IN COAL EXCISE TAX.
Paragraph (2) of section 4121(e) is amended--
(1) by striking ``January 1, 2014'' in subparagraph (A) and inserting ``December 31, 2018'', and
(2) by striking ``January 1 after 1981'' in subparagraph
(B) and inserting ``December 31 after 2007''.
SEC. 3114. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO
CERTAIN COAL PRODUCERS AND EXPORTERS.
(a) Refund.--
(1) Coal producers.--
(A) In general.--Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the Internal Revenue Code of 1986, if--
(i) a coal producer establishes that such coal producer, or a party related to such coal producer, exported coal produced by such coal producer to a foreign country or shipped coal produced by such coal producer to a possession of the United States, or caused such coal to be exported or shipped, the export or shipment of which was other than through an exporter who meets the requirements of paragraph (2),
(ii) such coal producer filed an excise tax return on or after October 1, 1990, and on or before the date of the enactment of this Act, and
(iii) such coal producer files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act,then the Secretary shall pay to such coal producer an amount equal to the tax paid under section 4121 of such Code on such coal exported or shipped by the coal producer or a party related to such coal producer, or caused by the coal producer or a party related to such coal producer to be exported or shipped.
(B) Special rules for certain taxpayers.--For purposes of this section--
(i) In general.--If a coal producer or a party related to a coal producer has received a judgment described in clause
(iii), such coal producer shall be deemed to have established the export of coal to a foreign country or shipment of coal to a possession of the United States under subparagraph
(A)(i).
(ii) Amount of payment.--If a taxpayer described in clause
(i) is entitled to a payment under subparagraph (A), the amount of such payment shall be reduced by any amount paid pursuant to the judgment described in clause (iii).
(iii) Judgment described.--A judgment is described in this subparagraph if such judgment--
(I) is made by a court of competent jurisdiction within the United States,
(II) relates to the constitutionality of any tax paid on exported coal under section 4121 of the Internal Revenue Code of 1986, and
(III) is in favor of the coal producer or the party related to the coal producer.
(2) Exporters.--Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the Internal Revenue Code of 1986, and a judgment described in paragraph (1)(B)(iii) of this subsection, if--
(A) an exporter establishes that such exporter exported coal to a foreign country or shipped coal to a possession of the United States, or caused such coal to be so exported or shipped,
(B) such exporter filed a tax return on or after October 1, 1990, and on or before the date of the enactment of this Act, and
(C) such exporter files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act,then the Secretary shall pay to such exporter an amount equal to $0.825 per ton of such coal exported by the exporter or caused to be exported or shipped, or caused to be exported or shipped, by the exporter.
(b) Limitations.--Subsection (a) shall not apply with respect to exported coal if a settlement with the Federal Government has been made with and accepted by, the coal producer, a party related to such coal producer, or the exporter, of such coal, as of the date that the claim is filed under this section with respect to such exported coal. For purposes of this subsection, the term ``settlement with the Federal Government'' shall not include any settlement or stipulation entered into as of the date of the enactment of this Act, the terms of which contemplate a judgment concerning which any party has reserved the right to file an appeal, or has filed an appeal.
(c) Subsequent Refund Prohibited.--No refund shall be made under this section to the extent that a credit or refund of such tax on such exported or shipped coal has been paid to any person.
(d) Definitions.--For purposes of this section--
(1) Coal producer.--The term ``coal producer'' means the person in whom is vested ownership of the coal immediately after the coal is severed from the ground, without regard to the existence of any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. The term includes any person who extracts coal from coal waste refuse piles or from the silt waste product which results from the wet washing (or similar processing) of coal.
(2) Exporter.--The term ``exporter'' means a person, other than a coal producer, who does not have a contract, fee arrangement, or any other agreement with a producer or seller of such coal to export or ship such coal to a third party on behalf of the producer or seller of such coal and--
(A) is indicated in the shipper's export declaration or other documentation as the exporter of record, or
(B) actually exported such coal to a foreign country or shipped such coal to a possession of the United States, or caused such coal to be so exported or shipped.
(3) Related party.--The term ``a party related to such coal producer'' means a person who--
(A) is related to such coal producer through any degree of common management, stock ownership, or voting control,
(B) is related (within the meaning of section 144(a)(3) of the Internal Revenue Code of 1986) to such coal producer, or
(C) has a contract, fee arrangement, or any other agreement with such coal producer to sell such coal to a third party on behalf of such coal producer.
(4) Secretary.--The term ``Secretary'' means the Secretary of Treasury or the Secretary's designee.
(e) Timing of Refund.--With respect to any claim for refund filed pursuant to this section, the Secretary shall determine whether the requirements of this section are met not later than 180 days after such claim is filed. If the Secretary determines that the requirements of this section are met, the claim for refund shall be paid not later than 180 days after the Secretary makes such determination.
(f) Interest.--Any refund paid pursuant to this section shall be paid by the Secretary with interest from the date of overpayment determined by using the overpayment rate and method under section 6621 of the Internal Revenue Code of 1986.
(g) Denial of Double Benefit.--The payment under subsection
(a) with respect to any coal shall not exceed--
(1) in the case of a payment to a coal producer, the amount of tax paid under section 4121 of the Internal Revenue Code of 1986 with respect to such coal by such coal producer or a party related to such coal producer, and
(2) in the case of a payment to an exporter, an amount equal to $0.825 per ton with respect to such coal exported by the exporter or caused to be exported by the exporter.
(h) Application of Section.--This section applies only to claims on coal exported or shipped on or after October 1, 1990, through the date of the enactment of this Act.
(i) Standing Not Conferred.--
(1) Exporters.--With respect to exporters, this section shall not confer standing upon an exporter to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by a coal producer of any Federal or State tax, fee, or royalty paid by the coal producer.
(2) Coal producers.--With respect to coal producers, this section shall not confer standing upon a coal producer to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by an exporter of any Federal or State tax, fee, or royalty paid by the producer and alleged to have been passed on to an exporter.
SEC. 3115. CARBON AUDIT OF THE TAX CODE.
(a) Study.--The Secretary of the Treasury shall enter into an agreement with the National Academy of Sciences to undertake a comprehensive review of the Internal Revenue Code of 1986 to identify the types of and specific tax provisions that have the largest effects on carbon and other greenhouse gas emissions and to estimate the magnitude of those effects.
(b) Report.--Not later than 2 years after the date of enactment of this Act, the National Academy of Sciences shall submit to Congress a report containing the results of study authorized under this section.
(c) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $1,500,000 for the period of fiscal years 2008 and 2009.
Subtitle B--Transportation and Domestic Fuel Security Provisions
SEC. 3121. INCLUSION OF CELLULOSIC BIOFUEL IN BONUS
DEPRECIATION FOR BIOMASS ETHANOL PLANT
PROPERTY.
(a) In General.--Paragraph (3) of section 168(l) is amended to read as follows:
``(3) Cellulosic biofuel.--The term `cellulosic biofuel' means any liquid fuel which is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis.''.
(b) Conforming Amendments.--Subsection (l) of section 168 is amended--
(1) by striking ``cellulosic biomass ethanol'' each place it appears and inserting ``cellulosic biofuel'',
(2) by striking ``Cellulosic Biomass Ethanol'' in the heading of such subsection and inserting ``Cellulosic Biofuel'', and
(3) by striking ``cellulosic biomass ethanol'' in the heading of paragraph (2) thereof and inserting ``cellulosic biofuel''.
(c) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.
SEC. 3122. CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.
(a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are each amended by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
(b) Increase in Rate of Credit.--
(1) Income tax credit.--Paragraphs (1)(A) and (2)(A) of section 40A(b) are each amended by striking ``50 cents'' and inserting ``$1.00''.
(2) Excise tax credit.--Paragraph (2) of section 6426(c) is amended to read as follows:
``(2) Applicable amount.--For purposes of this subsection, the applicable amount is $1.00.''.
(3) Conforming amendments.--
(A) Subsection (b) of section 40A is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.
(B) Paragraph (2) of section 40A(f) is amended to read as follows:
``(2) Exception.--Subsection (b)(4) shall not apply with respect to renewable diesel.''.
(C) Paragraphs (2) and (3) of section 40A(e) are each amended by striking ``subsection (b)(5)(C)'' and inserting
``subsection (b)(4)(C)''.
(D) Clause (ii) of section 40A(d)(3)(C) is amended by striking ``subsection (b)(5)(B)'' and inserting ``subsection
(b)(4)(B)''.
(c) Uniform Treatment of Diesel Produced From Biomass.--Paragraph (3) of section 40A(f) is amended--
(1) by striking ``diesel fuel'' and inserting ``liquid fuel'',
(2) by striking ``using a thermal depolymerization process'', and
(3) by striking ``or D396'' in subparagraph (B) and inserting ``, D396, or other equivalent standard approved by the Secretary''.
(d) Coproduction of Renewable Diesel With Petroleum Feedstock.--
(1) In general.--Paragraph (3) of section 40A(f) (defining renewable diesel) is amended by adding at the end the following new sentence: ``Such term does not include any fuel derived from coprocessing biomass with a feedstock which is not biomass. For purposes of this paragraph, the term
`biomass' has the meaning given such term by section 45K(c)(3).''.
(2) Conforming amendment.--Paragraph (3) of section 40A(f) is amended by striking ``(as defined in section 45K(c)(3))''.
(e) Eligibility of Certain Aviation Fuel.--Paragraph (3) of section 40A(f) (defining renewable diesel) is amended by adding at the end the following: ``The term `renewable diesel' also means fuel derived from biomass which meets the requirements of a Department of Defense specification for military jet fuel or an American Society of Testing and Materials specification for aviation turbine fuel.''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to fuel produced, and sold or used, after December 31, 2008.
(2) Coproduction of renewable diesel with petroleum feedstock.--The amendments made by subsection (d) shall apply to fuel produced, and sold or used, after the date of the enactment of this Act.
SEC. 3123. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED
TO PROVIDE AN INCENTIVE FOR UNITED STATES
PRODUCTION.
(a) Alcohol Fuels Credit.--Paragraph (6) of section 40(d) is amended to read as follows:
``(6) Limitation to alcohol with connection to the united states.--No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States. For purposes of this paragraph, the term `United States' includes any possession of the United States.''.
(b) Biodiesel Fuels Credit.--Subsection (d) of section 40A is amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united states.--No credit shall be determined under this section with respect to any biodiesel which is produced outside the United States for use as a fuel outside the United States. For purposes of this paragraph, the term `United States' includes any possession of the United States.''.
(c) Excise Tax Credit.--
(1) In general.--Section 6426 is amended by adding at the end the following new subsection:
``(i) Limitation to Fuels With Connection to the United States.--
``(1) Alcohol.--No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States.
``(2) Biodiesel and alternative fuels.--No credit shall be determined under this section with respect to any biodiesel or alternative fuel which is produced outside the United States for use as a fuel outside the United States.
For purposes of this subsection, the term `United States' includes any possession of the United States.''.
(2) Conforming amendment.--Subsection (e) of section 6427 is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph:
``(5) Limitation to fuels with connection to the united states.--No amount shall be payable under paragraph (1) or
(2) with respect to any mixture or alternative fuel if credit is not allowed with respect to such mixture or alternative fuel by reason of section 6426(i).''.
(d) Effective Date.--The amendments made by this section shall apply to claims for credit or payment made on or after May 15, 2008.
SEC. 3124. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE
MOTOR VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:
``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this subsection with respect to any new qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle.
``(2) Base amount.--The amount determined under this paragraph is $3,000.
``(3) Battery capacity.--In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $200, plus $200 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $2,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business credit.--So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.
``(B) Limitation based on amount of tax.--In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall not exceed the excess of--
``(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under subpart A
(other than this section and sections 23 and 25D) and section 27 for the taxable year.
``(d) New Qualified Plug-In Electric Drive Motor Vehicle.--For purposes of this section--
``(1) In general.--The term `new qualified plug-in electric drive motor vehicle' means a motor vehicle (as defined in section 30(c)(2))--
``(A) the original use of which commences with the taxpayer,
``(B) which is acquired for use or lease by the taxpayer and not for resale,
``(C) which is made by a manufacturer,
``(D) which has a gross vehicle weight rating of less than 14,000 pounds,
``(E) which has received a certificate of conformity under the Clean Air Act and meets or exceeds the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle, and
``(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which--
``(i) has a capacity of not less than 4 kilowatt hours, and
``(ii) is capable of being recharged from an external source of electricity.
``(2) Exception.--The term `new qualified plug-in electric drive motor vehicle' shall not include any vehicle which is not a passenger automobile or light truck if such vehicle has a gross vehicle weight rating of less than 8,500 pounds.
``(3) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).
``(4) Battery capacity.--The term `capacity' means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge.
``(e) Limitation on Number of New Qualified Plug-In Electric Drive Motor Vehicles Eligible for Credit.--
``(1) In general.--In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed.
``(2) Phaseout period.--For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after the date of the enactment of this section, is at least 60,000.
``(3) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is--
``(A) 50 percent for the first 2 calendar quarters of the phaseout period,
``(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, and
``(C) 0 percent for each calendar quarter thereafter.
``(4) Controlled groups.--Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.
``(f) Special Rules.--
``(1) Basis reduction.--The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (c)).
``(2) Recapture.--The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.
``(3) Property used outside united states, etc., not qualified.--No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.
``(4) Election not to take credit.--No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.
``(5) Property used by tax-exempt entity; interaction with air quality and motor vehicle safety standards.--Rules similar to the rules of paragraphs (6) and (10) of section 30B(h) shall apply for purposes of this section.''.
(b) Coordination With Alternative Motor Vehicle Credit.--Section 30B(d)(3) is amended by adding at the end the following new subparagraph:
``(D) Exclusion of plug-in vehicles.--Any vehicle with respect to which a credit is allowable under section 30D
(determined without regard to subsection (c) thereof) shall not be taken into account under this section.''.
(c) Credit Made Part of General Business Credit.--Section 38(b) is amended--
(1) by striking ``and'' each place it appears at the end of any paragraph,
(2) by striking ``plus'' each place it appears at the end of any paragraph,
(3) by striking the period at the end of paragraph (32) and inserting ``, plus'', and
(4) by adding at the end the following new paragraph:
``(33) the portion of the new qualified plug-in electric drive motor vehicle credit to which section 30D(c)(1) applies.''.
(d) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by section 104, is amended by striking ``and 25D'' and inserting ``25D, and 30D''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting
``30D,'' after ``25D,''.
(C) Section 25B(g)(2), as amended by section 104, is amended by striking ``and 25D'' and inserting ``, 25D, and 30D''.
(D) Section 26(a)(1), as amended by section 104, is amended by striking ``and 25D'' and inserting ``25D, and 30D''.
(E) Section 1400C(d)(2) is amended by striking ``and 25D'' and inserting ``25D, and 30D''.
(2) Section 1016(a) is amended by striking ``and'' at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting ``, and'', and by adding at the end the following new paragraph:
``(37) to the extent provided in section 30D(f)(1).''.
(3) Section 6501(m) is amended by inserting ``30D(f)(4),'' after ``30C(e)(5),''.
(4) The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
``Sec. 30D. New qualified plug-in electric drive motor vehicles.''.
(e) Treatment of Alternative Motor Vehicle Credit as a Personal Credit.--
(1) In general.--Paragraph (2) of section 30B(g) is amended to read as follows:
``(2) Personal credit.--The credit allowed under subsection
(a) for any taxable year (after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.''.
(2) Conforming amendments.--
(A) Subparagraph (A) of section 30C(d)(2) is amended by striking ``sections 27, 30, and 30B'' and inserting
``sections 27 and 30''.
(B) Paragraph (3) of section 55(c) is amended by striking
``30B(g)(2),''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2008.
(2) Treatment of alternative motor vehicle credit as personal credit.--The amendments made by subsection (e) shall apply to taxable years beginning after December 31, 2007.
(g) Application of EGTRRA Sunset.--The amendment made by subsection (d)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates.
SEC. 3125. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING
REDUCTION UNITS AND ADVANCED INSULATION.
(a) In General.--Section 4053 is amended by adding at the end the following new paragraphs:
``(9) Idling reduction device.--Any device or system of devices which--
``(A) is designed to provide to a vehicle those services
(such as heat, air conditioning, or electricity) that would otherwise require the operation of the main drive engine while the vehicle is temporarily parked or remains stationary using one or more devices affixed to a tractor, and
``(B) is determined by the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Energy and the Secretary of Transportation, to reduce idling of such vehicle at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary.
``(10) Advanced insulation.--Any insulation that has an R value of not less than R35 per inch.''.
(b) Effective Date.--The amendment made by this section shall apply to sales or installations after the date of the enactment of this Act.
SEC. 3126. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX
CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is amended by redesignating section 1400L as section 1400K and by adding at the end the following new section:
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone governmental unit, there shall be allowed as a credit against any taxes imposed for any payroll period by section 3402 for which such governmental unit is liable under section 3403 an amount equal to so much of the portion of the qualifying project expenditure amount allocated under subsection (b)(3) to such governmental unit for the calendar year as is allocated by such governmental unit to such period under subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes of this section--
``(1) In general.--The term `qualifying project expenditure amount' means, with respect to any calendar year, the sum of--
``(A) the total expenditures paid or incurred during such calendar year by all New York Liberty Zone governmental units and the Port Authority of New York and New Jersey for any portion of qualifying projects located wholly within the City of New York, New York, and
``(B) any such expenditures--
``(i) paid or incurred in any preceding calendar year which begins after the date of enactment of this section, and
``(ii) not previously allocated under paragraph (3).
``(2) Qualifying project.--The term `qualifying project' means any transportation infrastructure project, including highways, mass transit systems, railroads, airports, ports, and waterways, in or connecting with the New York Liberty Zone (as defined in section 1400K(h)), which is designated as a qualifying project under this section jointly by the Governor of the State of New York and the Mayor of the City of New York, New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State of New York and the Mayor of the City of New York, New York, shall jointly allocate to each New York Liberty Zone governmental unit the portion of the qualifying project expenditure amount which may be taken into account by such governmental unit under subsection (a) for any calendar year in the credit period.
``(B) Aggregate limit.--The aggregate amount which may be allocated under subparagraph (A) for all calendar years in the credit period shall not exceed $2,000,000,000.
``(C) Annual limit.--The aggregate amount which may be allocated under subparagraph (A) for any calendar year in the credit period shall not exceed the sum of--
``(i) $115,000,000 ($425,000,000 in the case of the last 2 years in the credit period), plus
``(ii) the aggregate amount authorized to be allocated under this paragraph for all preceding calendar years in the credit period which was not so allocated.
``(D) Unallocated amounts at end of credit period.--If, as of the close of the credit period, the amount under subparagraph (B) exceeds the aggregate amount allocated under subparagraph (A) for all calendar years in the credit period, the Governor of the State of New York and the Mayor of the City of New York, New York, may jointly allocate to New York Liberty Zone governmental units for any calendar year in the 5-year period following the credit period an amount equal to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project expenditure amount for such calendar year, reduced by
``(ii) the aggregate amount allocated under this subparagraph for all preceding calendar years.
``(4) Allocation to payroll periods.--Each New York Liberty Zone governmental unit which has been allocated a portion of the qualifying project expenditure amount under paragraph (3) for a calendar year may allocate such portion to payroll periods beginning in such calendar year as such governmental unit determines appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph (2), if the amount allocated under subsection (b)(3) to a New York Liberty Zone governmental unit for any calendar year exceeds the aggregate taxes imposed by section 3402 for which such governmental unit is liable under section 3403 for periods beginning in such year, such excess shall be carried to the succeeding calendar year and added to the allocation of such governmental unit for such succeeding calendar year.
``(2) Reallocation.--If a New York Liberty Zone governmental unit does not use an amount allocated to it under subsection (b)(3) within the time prescribed by the Governor of the State of New York and the Mayor of the City of New York, New York, then such amount shall after such time be treated for purposes of subsection (b)(3) in the same manner as if it had never been allocated.
``(d) Definitions and Special Rules.--For purposes of this section--
``(1) Credit period.--The term `credit period' means the 12-year period beginning on January 1, 2009.
``(2) New york liberty zone governmental unit.--The term
`New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
``(C) any agency or instrumentality of such State or City.
``(3) Treatment of funds.--Any expenditure for a qualifying project taken into account for purposes of the credit under this section shall be considered State and local funds for the purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of withholding taxes.--For purposes of this title, a New York Liberty Zone governmental unit shall be treated as having paid to the Secretary, on the day on which wages are paid to employees, an amount equal to the amount of the credit allowed to such entity under subsection (a) with respect to such wages, but only if such governmental unit deducts and withholds wages for such payroll period under section 3401
(relating to wage withholding).
``(e) Reporting.--The Governor of the State of New York and the Mayor of the City of New York, New York, shall jointly submit to the Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure amount for the calendar year, and
``(B) the amount allocated to each New York Liberty Zone governmental unit under subsection (b)(3) for the calendar year, and
``(2) includes such other information as the Secretary may require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance as may be necessary or appropriate to ensure compliance with the purposes of this section.''.
(b) Termination of Special Allowance and Expensing.--Subparagraph (A) of section 1400K(b)(2), as redesignated by subsection (a), is amended by striking the parenthetical therein and inserting ``(in the case of nonresidential real property and residential rental property, the date of the enactment of the Federal Housing Finance Regulatory Reform Act of 2008 or, if acquired pursuant to a binding contract in effect on such enactment date, December 31, 2009)''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking ``section 1400L(a)'' and inserting ``section 1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``section 1400K(c)(2)''.
(3) The table of sections for part I of subchapter Y of chapter 1 is amended by redesignating the item relating to section 1400L as an item relating to section 1400K and by inserting after such item the following new item:
``Sec. 1400L. New York Liberty Zone tax credits.''.
(d) Effective Date.--The amendments made by this section shall take effect on the date of the enactment of this Act.
SEC. 3127. TRANSPORTATION FRINGE BENEFIT TO BICYCLE
COMMUTERS.
(a) In General.--Paragraph (1) of section 132(f) is amended by adding at the end the following:
``(D) Any qualified bicycle commuting reimbursement.''.
(b) Limitation on Exclusion.--Paragraph (2) of section 132(f) is amended by striking ``and'' at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ``, and'', and by adding at the end the following new subparagraph:
``(C) the applicable annual limitation in the case of any qualified bicycle commuting reimbursement.''.
(c) Definitions.--Paragraph (5) of section 132(f) is amended by adding at the end the following:
``(F) Definitions related to bicycle commuting reimbursement.--
``(i) Qualified bicycle commuting reimbursement.--The term
`qualified bicycle commuting reimbursement' means, with respect to any calendar year, any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if such bicycle is regularly used for travel between the employee's residence and place of employment.
``(ii) Applicable annual limitation.--The term `applicable annual limitation' means, with respect to any employee for any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such year.
``(iii) Qualified bicycle commuting month.--The term
`qualified bicycle commuting month' means, with respect to any employee, any month during which such employee--
``(I) regularly uses the bicycle for a substantial portion of the travel between the employee's residence and place of employment, and
``(II) does not receive any benefit described in subparagraph (A), (B), or (C) of paragraph (1).''.
(d) Constructive Receipt of Benefit.--Paragraph (4) of section 132(f) is amended by inserting ``(other than a qualified bicycle commuting reimbursement)'' after
``qualified transportation fringe''.
(e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2008.
SEC. 3128. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY
CREDIT.
(a) Increase in Credit Amount.--Section 30C is amended--
(1) by striking ``30 percent'' in subsection (a) and inserting ``50 percent'', and
(2) by striking ``$30,000'' in subsection (b)(1) and inserting ``$50,000''.
(b) Extension of Credit.--Paragraph (2) of section 30C(g) is amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(c) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.
Subtitle C--Energy Conservation and Efficiency Provisions
SEC. 3141. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1, as amended by section 3106, is amended by adding at the end the following new section:
``SEC. 54D. QUALIFIED ENERGY CONSERVATION BONDS.
``(a) Qualified Energy Conservation Bond.--For purposes of this subchapter, the term `qualified energy conservation bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such issue are to be used for one or more qualified conservation purposes,
``(2) the bond is issued by a State or local government, and
``(3) the issuer designates such bond for purposes of this section.
``(b) Reduced Credit Amount.--The annual credit determined under section 54A(b) with respect to any qualified energy conservation bond shall be 70 percent of the amount so determined without regard to this subsection.
``(c) Limitation on Amount of Bonds Designated.--The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated to such issuer under subsection (e).
``(d) National Limitation on Amount of Bonds Designated.--There is a national qualified energy conservation bond limitation of $3,000,000,000.
``(e) Allocations.--
``(1) In general.--The limitation applicable under subsection (d) shall be allocated by the Secretary among the States in proportion to the population of the States.
``(2) Allocations to largest local governments.--
``(A) In general.--In the case of any State in which there is a large local government, each such local government shall be allocated a portion of such State's allocation which bears the same ratio to the State's allocation (determined without regard to this subparagraph) as the population of such large local government bears to the population of such State.
``(B) Allocation of unused limitation to state.--The amount allocated under this subsection to a large local government may be reallocated by such local government to the State in which such local government is located.
``(C) Large local government.--For purposes of this section, the term `large local government' means any municipality or county if such municipality or county has a population of 100,000 or more.
``(3) Allocation to issuers; restriction on private activity bonds.--Any allocation under this subsection to a State or large local government shall be allocated by such State or large local government to issuers within the State in a manner that results in not less than 70 percent of the allocation to such State or large local government being used to designate bonds which are not private activity bonds.
``(f) Qualified Conservation Purpose.--For purposes of this section--
``(1) In general.--The term `qualified conservation purpose' means any of the following:
``(A) Capital expenditures incurred for purposes of--
``(i) reducing energy consumption in publicly-owned buildings by at least 20 percent,
``(ii) implementing green community programs,
``(iii) rural development involving the production of electricity from renewable energy resources, or
``(iv) any qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and without regard to any placed in service date).
``(B) Expenditures with respect to research facilities, and research grants, to support research in--
``(i) development of cellulosic ethanol or other nonfossil fuels,
``(ii) technologies for the capture and sequestration of carbon dioxide produced through the use of fossil fuels,
``(iii) increasing the efficiency of existing technologies for producing nonfossil fuels,
``(iv) automobile battery technologies and other technologies to reduce fossil fuel consumption in transportation, or
``(v) technologies to reduce energy use in buildings.
``(C) Mass commuting facilities and related facilities that reduce the consumption of energy, including expenditures to reduce pollution from vehicles used for mass commuting.
``(D) Demonstration projects designed to promote the commercialization of--
``(i) green building technology,
``(ii) conversion of agricultural waste for use in the production of fuel or otherwise,
``(iii) advanced battery manufacturing technologies,
``(iv) technologies to reduce peak use of electricity, or
``(v) technologies for the capture and sequestration of carbon dioxide emitted from combusting fossil fuels in order to produce electricity.
``(E) Public education campaigns to promote energy efficiency.
``(2) Special rules for private activity bonds.--For purposes of this section, in the case of any private activity bond, the term `qualified conservation purposes' shall not include any expenditure which is not a capital expenditure.
``(g) Population.--
``(1) In general.--The population of any State or local government shall be determined for purposes of this section as provided in section 146(j) for the calendar year which includes the date of the enactment of this section.
``(2) Special rule for counties.--In determining the population of any county for purposes of this section, any population of such county which is taken into account in determining the population of any municipality which is a large local government shall not be taken into account in determining the population of such county.
``(h) Application to Indian Tribal Governments.--An Indian tribal government shall be treated for purposes of this section in the same manner as a large local government, except that--
``(1) an Indian tribal government shall be treated for purposes of subsection (e) as located within a State to the extent of so much of the population of such government as resides within such State, and
``(2) any bond issued by an Indian tribal government shall be treated as a qualified energy conservation bond only if issued as part of an issue the available project proceeds of which are used for purposes for which such Indian tribal government could issue bonds to which section 103(a) applies.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as amended by section 3106, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified tax credit bond' means--
``(A) a qualified forestry conservation bond,
``(B) a new clean renewable energy bond, or
``(C) a qualified energy conservation bond,which is part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and (6).''.
(2) Subparagraph (C) of section 54A(d)(2), as amended by section 3106, is amended to read as follows:
``(C) Qualified purpose.--For purposes of this paragraph, the term `qualified purpose' means--
``(i) in the case of a qualified forestry conservation bond, a purpose specified in section 54B(e),
``(ii) in the case of a new clean renewable energy bond, a purpose specified in section 54C(a)(1), and
``(iii) in the case of a qualified energy conservation bond, a purpose specified in section 54D(a)(1).''.
(3) The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
``Sec. 54D. Qualified energy conservation bonds.''.
(c) Effective Date.--The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.
SEC. 3142. CREDIT FOR NONBUSINESS ENERGY PROPERTY.
(a) Extension of Credit.--Section 25C(g) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2008''.
(b) Qualified Biomass Fuel Property.--
(1) In general.--Section 25C(d)(3) is amended--
(A) by striking ``and'' at the end of subparagraph (D),
(B) by striking the period at the end of subparagraph (E) and inserting ``, and'', and
(C) by adding at the end the following new subparagraph:
``(F) a stove which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and which has a thermal efficiency rating of at least 75 percent.''.
(2) Biomass fuel.--Section 25C(d) is amended by adding at the end the following new paragraph:
``(6) Biomass fuel.--The term `biomass fuel' means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants
(including aquatic plants), grasses, residues, and fibers.''.
(c) Coordination With Credit for Qualified Geothermal Heat Pump Property Expenditures.--
(1) In general.--Paragraph (3) of section 25C(d), as amended by subsection (b), is amended by striking subparagraph (C) and by redesignating subparagraphs (D), (E), and (F) as subparagraphs (C), (D), and (E), respectively.
(2) Conforming amendment.--Subparagraph (C) of section 25C(d)(2) is amended to read as follows:
``(C) Requirements and standards for air conditioners and heat pumps.--The standards and requirements prescribed by the Secretary under subparagraph (B) with respect to the energy efficiency ratio (EER) for central air conditioners and electric heat pumps--
``(i) shall require measurements to be based on published data which is tested by manufacturers at 95 degrees Fahrenheit, and
``(ii) may be based on the certified data of the Air Conditioning and Refrigeration Institute that are prepared in partnership with the Consortium for Energy Efficiency.''.
(d) Modification of Qualified Energy Efficiency Improvements.--
(1) In general.--Paragraph (1) of section 25C(c) is amended by inserting ``, or an asphalt roof with appropriate cooling granules,'' before ``which meet the Energy Star program requirements''.
(2) Building envelope component.--Subparagraph (D) of section 25C(c)(2) is amended--
(A) by inserting ``or asphalt roof'' after ``metal roof'', and
(B) by inserting ``or cooling granules'' after ``pigmented coatings''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the amendments made this section shall apply to expenditures made after December 31, 2007.
(2) Modification of qualified energy efficiency improvements.--The amendments made by subsection (d) shall apply to property placed in service after the date of the enactment of this Act.
SEC. 3143. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
Subsection (h) of section 179D is amended by striking
``December 31, 2008'' and inserting ``December 31, 2013''.
SEC. 3144. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT
FOR APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M is amended to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no more than 324 kilowatt hours per year and 5.8 gallons per cycle, and
``(B) $75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle
(5.5 gallons per cycle for dishwashers designed for greater than 12 place settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water consumption factor,
``(C) $150 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0 water consumption factor, and
``(D) $250 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5 water consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours per year than the 2001 energy conservation standards,
``(B) $75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation standards,
``(C) $100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010, and consumes at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation standards, and
``(D) $200 in the case of a refrigerator manufactured in calendar year 2008, 2009, or 2010 and which consumes at least 30 percent less energy than the 2001 energy conservation standards.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c) of section 45M is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that follows through ``the eligible'' and inserting ``The eligible'',
(C) by moving the text of such subsection in line with the subsection heading, and
(D) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and by moving such paragraphs 2 ems to the left.
(2) Modification of base period.--Paragraph (2) of section 45M(c), as amended by paragraph (1), is amended by striking
``3-calendar year'' and inserting ``2-calendar year''.
(c) Types of Energy Efficient Appliances.--Subsection (d) of section 45M (defining types of energy efficient appliances) is amended to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of this section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2), and
``(3) refrigerators described in subsection (b)(3).''.
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e) is amended to read as follows:
``(1) Aggregate credit amount allowed.--The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $75,000,000 reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior taxable years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes washers.--Paragraph (2) of section 45M(e) is amended to read as follows:
``(2) Amount allowed for certain refrigerators and clothes washers.--Refrigerators described in subsection (b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining qualified energy efficient appliance) is amended to read as follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection (b)(1),
``(B) any clothes washer described in subsection (b)(2), and
``(C) any refrigerator described in subsection (b)(3).''.
(2) Clothes washer.--Section 45M(f)(3) is amended by inserting ``commercial'' before ``residential'' the second place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section 45M is amended by redesignating paragraphs (4), (5), (6), and
(7) as paragraphs (5), (6), (7), and (8), respectively, and by inserting after paragraph (3) the following new paragraph:
``(4) Top-loading clothes washer.--The term `top-loading clothes washer' means a clothes washer which has the clothes container compartment access located on the top of the machine and which operates on a vertical axis.''.
(4) Replacement of energy factor.--Section 45M(f)(6), as redesignated by paragraph (3), is amended to read as follows:
``(6) Modified energy factor.--The term `modified energy factor' means the modified energy factor established by the Department of Energy for compliance with the Federal energy conservation standard.''.
(5) Gallons per cycle; water consumption factor.--Section 45M(f), as amended by paragraph (3), is amended by adding at the end the following:
``(9) Gallons per cycle.--The term `gallons per cycle' means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a dishwasher.
``(10) Water consumption factor.--The term `water consumption factor' means, with respect to a clothes washer, the quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.''.
(f) Effective Date.--The amendments made by this section shall apply to appliances produced after December 31, 2007.
SEC. 3145. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF
SMART METERS AND SMART GRID SYSTEMS.
(a) In General.--Section 168(e)(3)(D) is amended by striking ``and'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting a comma, and by inserting after clause (ii) the following new clauses:
``(iii) any qualified smart electric meter, and
``(iv) any qualified smart electric grid system.''.
(b) Definitions.--Section 168(i) is amended by inserting at the end the following new paragraph:
``(18) Qualified smart electric meters.--
``(A) In general.--The term `qualified smart electric meter' means any smart electric meter which is placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services.
``(B) Smart electric meter.--For purposes of subparagraph
(A), the term `smart electric meter' means any time-based meter and related communication equipment which is capable of being used by the taxpayer as part of a system that--
``(i) measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day,
``(ii) provides for the exchange of information between supplier or provider and the customer's electric meter in support of time-based rates or other forms of demand response,
``(iii) provides data to such supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, and
``(iv) provides net metering.
``(19) Qualified smart electric grid systems.--
``(A) In general.--The term `qualified smart electric grid system' means any smart grid property used as part of a system for electric distribution grid communications, monitoring, and management placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services.
``(B) Smart grid property.--For the purposes of subparagraph (A), the term `smart grid property' means electronics and related equipment that is capable of--
``(i) sensing, collecting, and monitoring data of or from all portions of a utility's electric distribution grid,
``(ii) providing real-time, two-way communications to monitor or manage such grid, and
``(iii) providing real time analysis of and event prediction based upon collected data that can be used to improve electric distribution system reliability, quality, and performance.''.
(c) Continued Application of 150 Percent Declining Balance Method.--Paragraph (2) of section 168(b) is amended by striking ``or'' at the end of subparagraph (B), by redesignating subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) the following new subparagraph:
``(C) any property (other than property described in paragraph (3)) which is a qualified smart electric meter or qualified smart electric grid system, or''.
(d) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
SEC. 3146. QUALIFIED GREEN BUILDING AND SUSTAINABLE DESIGN
PROJECTS.
(a) In General.--Paragraph (8) of section 142(l) is amended by striking ``September 30, 2009'' and inserting ``September 30, 2012''.
(b) Treatment of Current Refunding Bonds.--Paragraph (9) of section 142(l) is amended by striking ``October 1, 2009'' and inserting ``October 1, 2012''.
(c) Accountability.--The second sentence of section 701(d) of the American Jobs Creation Act of 2004 is amended by striking ``issuance,'' and inserting ``issuance of the last issue with respect to such project,''.
Subtitle D--Revenue Provisions
SEC. 3151. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN
TAX INDIFFERENT PARTIES.
(a) In General.--Subpart B of part II of subchapter E of chapter 1 is amended by inserting after section 457 the following new section:
``SEC. 457A. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN
TAX INDIFFERENT PARTIES.
``(a) In General.--Any compensation which is deferred under a nonqualified deferred compensation plan of a nonqualified entity shall be includible in gross income when there is no substantial risk of forfeiture of the rights to such compensation.
``(b) Nonqualified Entity.--For purposes of this section, the term `nonqualified entity' means--
``(1) any foreign corporation unless substantially all of its income is--
``(A) effectively connected with the conduct of a trade or business in the United States, or
``(B) subject to a comprehensive foreign income tax, and
``(2) any partnership unless substantially all of its income is allocated to persons other than--
``(A) foreign persons with respect to whom such income is not subject to a comprehensive foreign income tax, and
``(B) organizations which are exempt from tax under this title.
``(c) Determinability of Amounts of Compensation.--
``(1) In general.--If the amount of any compensation is not determinable at the time that such compensation is otherwise includible in gross income under subsection (a)--
``(A) such amount shall be so includible in gross income when determinable, and
``(B) the tax imposed under this chapter for the taxable year in which such compensation is includible in gross income shall be increased by the sum of--
``(i) the amount of interest determined under paragraph
(2), and
``(ii) an amount equal to 20 percent of the amount of such compensation.
``(2) Interest.--For purposes of paragraph (1)(B)(i), the interest determined under this paragraph for any taxable year is the amount of interest at the underpayment rate under section 6621 plus 1 percentage point on the underpayments that would have occurred had the deferred compensation been includible in gross income for the taxable year in which first deferred or, if later, the first taxable year in which such deferred compensation is not subject to a substantial risk of forfeiture.
``(d) Other Definitions and Special Rules.--For purposes of this section--
``(1) Substantial risk of forfeiture.--
``(A) In general.--The rights of a person to compensation shall be treated as subject to a substantial risk of forfeiture only if such person's rights to such compensation are conditioned upon the future performance of substantial services by any individual.
``(B) Exception for compensation based on gain recognized on an investment asset.--
``(i) In general.--To the extent provided in regulations prescribed by the Secretary, if compensation is determined solely by reference to the amount of gain recognized on the disposition of an investment asset, such compensation shall be treated as subject to a substantial risk of forfeiture until the date of such disposition.
``(ii) Investment asset.--For purposes of clause (i), the term `investment asset' means any single asset (other than an investment fund or similar entity)--
``(I) acquired directly by an investment fund or similar entity,
``(II) with respect to which such entity does not (nor does any person related to such entity) participate in the active management of such asset (or if such asset is an interest in an entity, in the active management of the activities of such entity), and
``(III) substantially all of any gain on the disposition of which (other than such deferred compensation) is allocated to investors in such entity.
``(iii) Coordination with special rule.--Paragraph (3)(B) shall not apply to any compensation to which clause (i) applies.
``(2) Comprehensive foreign income tax.--The term
`comprehensive foreign income tax' means, with respect to any foreign person, the income tax of a foreign country if--
``(A) such person is eligible for the benefits of a comprehensive income tax treaty between such foreign country and the United States, or
``(B) such person demonstrates to the satisfaction of the Secretary that such foreign country has a comprehensive income tax.
``(3) Nonqualified deferred compensation plan.--
``(A) In general.--The term `nonqualified deferred compensation plan' has the meaning given such term under section 409A(d), except that such term shall include any plan that provides a right to compensation based on the appreciation in value of a specified number of equity units of the service recipient.
``(B) Exception.--Compensation shall not be treated as deferred for purposes of this section if the service provider receives payment of such compensation not later than 12 months after the end of the taxable year of the service recipient during which the right to the payment of such compensation is no longer subject to a substantial risk of forfeiture.
``(4) Exception for certain compensation with respect to effectively connected income.--In the case a foreign corporation with income which is taxable under section 882, this section shall not apply to compensation which, had such compensation had been paid in cash on the date that such compensation ceased to be subject to a substantial risk of forfeiture, would have been deductible by such foreign corporation against such income.
``(5) Application of rules.--Rules similar to the rules of paragraphs (5) and (6) of section 409A(d) shall apply.
``(e) Regulations.--The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations disregarding a substantial risk of forfeiture in cases where necessary to carry out the purposes of this section.''.
(b) Conforming Amendment.--Section 26(b)(2), as amended by section 3011, is amended by striking ``and'' at the end of subparagraph (V), by striking the period at the end of subparagraph (W) and inserting ``, and'', and by adding at the end the following new subparagraph:
``(X) section 457A(c)(1)(B) (relating to determinability of amounts of compensation).''.
(c) Clerical Amendment.--The table of sections of subpart B of part II of subchapter E of chapter 1 is amended by inserting after the item relating to section 457 the following new item:
``Sec. 457A. Nonqualified deferred compensation from certain tax indifferent parties.''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to amounts deferred which are attributable to services performed after December 31, 2008.
(2) Application to existing deferrals.--In the case of any amount deferred to which the amendments made by this section do not apply solely by reason of the fact that the amount is attributable to services performed before January 1, 2009, to the extent such amount is not includible in gross income in a taxable year beginning before 2018, such amounts shall be includible in gross income in the later of--
(A) the last taxable year beginning before 2018, or
(B) the taxable year in which there is no substantial risk of forfeiture of the rights to such compensation (determined in the same manner as determined for purposes of section 457A of the Internal Revenue Code of 1986, as added by this section).
(3) Charitable contributions of existing deferrals permitted.--
(A) In general.--Subsection (b) of section 170 of the Internal Revenue Code of 1986 shall not apply to (and subsections (b) and (d) of such section shall be applied without regard to) so much of the taxpayer's qualified contributions made during the taxpayer's last taxable year beginning before 2018 as does not exceed the taxpayer's qualified inclusion amount. For purposes of subsection (b) of section 170 of such Code, the taxpayer's contribution base for such last taxable year shall be reduced by the amount of the taxpayer's qualified contributions to which such subsection does not apply by reason the preceding sentence.
(B) Qualified contributions.--For purposes of this paragraph, the term ``qualified contributions'' means the aggregate charitable contributions (as defined in section 170(c) of such Code) paid in cash by the taxpayer to organizations described in section 170(b)(1)(A) of such Code
(other than any organization described in section 509(a)(3) of such Code or any fund or account described in section 4966(d)(2) of such Code).
(C) Qualified inclusion amount.--For purposes of this paragraph, the term ``qualified inclusion amount'' means the amount includible in the taxpayer's gross income for the last taxable year beginning before 2018 by reason of paragraph
(2).
(4) Accelerated payments.--No later than 120 days after the date of the enactment of this Act, the Secretary shall issue guidance providing a limited period of time during which a nonqualified deferred compensation arrangement attributable to services performed on or before December 31, 2008, may, without violating the requirements of section 409A(a) of the Internal Revenue Code of 1986, be amended to conform the date of distribution to the date the amounts are required to be included in income.
(5) Certain back-to-back arrangements.--If the taxpayer is also a service recipient and maintains one or more nonqualified deferred compensation arrangements for its service providers under which any amount is attributable to services performed on or before December 31, 2008, the guidance issued under paragraph (4) shall permit such arrangements to be amended to conform the dates of distribution under such arrangement to the date amounts are required to be included in the income of such taxpayer under this subsection.
(6) Accelerated payment not treated as material modification.--Any amendment to a nonqualified deferred compensation arrangement made pursuant to paragraph (4) or
(5) shall not be treated as a material modification of the arrangement for purposes of section 409A of the Internal Revenue Code of 1986.
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SA 5046. Mr. CORNYN (for himself, Mrs. Boxer, Mr. Roberts, Mr. Pryor, Mr. Isakson, and Mr. Salazar) submitted an amendment intended to be proposed by him to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. REQUIRING MORTGAGE DISCLOSURE.
(a) In General.--Section 102(a)(4)(A) of the Ethics in Government Act of 1978 (5 U.S.C. App) is amended by inserting after ``spouse'' the following: ``, except that this exception shall not apply to a reporting individual described in section 101(f)(9)''.
(b) Effective Date.--The amendment made by subsection (a) shall take effect 1 month after the date of enactment of this Act.
______
SA 5047. Mr. ENSIGN submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 82, strike line 4 and all that follows through page 401, line 4, and insert the following:
``(iii) each enterprise received credit towards achieving each of its goals resulting from a transaction or activity pursuant to section 1331(b)(2); and
``(iv) each enterprise is achieving the purposes of the enterprise established by law; and
``(B) the actions that each enterprise could undertake to promote and expand the purposes of the enterprise;
``(2) aggregate and analyze relevant data on income to assess the compliance of each enterprise with the housing goals established under subpart B;
``(3) aggregate and analyze data on income, race, and gender by census tract and other relevant classifications, and compare such data with larger demographic, housing, and economic trends;
``(4) identify the extent to which each enterprise is involved in mortgage purchases and secondary market activities involving subprime and nontraditional loans;
``(5) compare the characteristics of subprime and nontraditional loans both purchased and securitized by each enterprise to other loans purchased and securitized by each enterprise; and
``(6) compare the characteristics of high-cost loans purchased and securitized, where such securities are not held on portfolio to loans purchased and securitized, where such securities are either retained on portfolio or repurchased by the enterprise, including such characteristics as--
``(A) the purchase price of the property that secures the mortgage;
``(B) the loan-to-value ratio of the mortgage, which shall reflect any secondary liens on the relevant property;
``(C) the terms of the mortgage;
``(D) the creditworthiness of the borrower; and
``(E) any other relevant data, as determined by the Director.
``(c) Data Collection and Reporting.--
``(1) In general.--To assist the Director in analyzing the matters described in subsection (b), the Director shall conduct, on a monthly basis, a survey of mortgage markets in accordance with this subsection.
``(2) Data points.--Each monthly survey conducted by the Director under paragraph (1) shall collect data on--
``(A) the characteristics of individual mortgages that are eligible for purchase by the enterprises and the characteristics of individual mortgages that are not eligible for purchase by the enterprises including, in both cases, information concerning--
``(i) the price of the house that secures the mortgage;
``(ii) the loan-to-value ratio of the mortgage, which shall reflect any secondary liens on the relevant property;
``(iii) the terms of the mortgage;
``(iv) the creditworthiness of the borrower or borrowers; and
``(v) whether the mortgage, in the case of a conforming mortgage, was purchased by an enterprise;
``(B) the characteristics of individual subprime and nontraditional mortgages that are eligible for purchase by the enterprises and the characteristics of borrowers under such mortgages, including the creditworthiness of such borrowers and determination whether such borrowers would qualify for prime lending; and
``(C) such other matters as the Director determines to be appropriate.
``(3) Public availability.--The Director shall make any data collected by the Director in connection with the conduct of a monthly survey available to the public in a timely manner, provided that the Director may modify the data released to the public to ensure that the data--
``(A) is not released in an identifiable form; and
``(B) is not otherwise obtainable from other publicly available data sets.
``(4) Definition.--For purposes of this subsection, the term `identifiable form' means any representation of information that permits the identity of a borrower to which the information relates to be reasonably inferred by either direct or indirect means.''.
SEC. 1126. PUBLIC USE DATABASE.
Section 1323 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (42 U.S.C. 4543) is amended--
(1) in subsection (a)--
(A) by striking ``(a) In General.--The Secretary'' and inserting the following:
``(a) Availability.--
``(1) In general.--The Director''; and
(B) by adding at the end the following new paragraph:
``(2) Census tract level reporting.--Such data shall include the data elements required to be reported under the Home Mortgage Disclosure Act of 1975, at the census tract level.'';
(2) in subsection (b)(2), by inserting before the period at the end the following: ``or with subsection (a)(2)''; and
(3) by adding at the end the following new subsection:
``(d) Timing.--Data submitted under this section by an enterprise in connection with a provision referred to in subsection (a) shall be made publicly available in accordance with this section not later than September 30 of the year following the year to which the data relates.''.
SEC. 1127. REPORTING OF MORTGAGE DATA.
Section 1326 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4546) is amended--
(1) in subsection (a), by striking ``The Director'' and inserting ``Subject to subsection (d), the Director''; and
(2) by adding at the end the following:
``(d) Mortgage Information.--Subject to privacy considerations, as described in section 304(j) of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(j)), the Director shall, by regulation or order, provide that certain information relating to single family mortgage data of the enterprises shall be disclosed to the public, in order to make available to the public--
``(1) the same data from the enterprises that is required of insured depository institutions under the Home Mortgage Disclosure Act of 1975; and
``(2) information collected by the Director under section 1324(b)(6).''.
SEC. 1128. REVISION OF HOUSING GOALS.
(a) Repeal.--Sections 1331 through 1334 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4561 through 4564) are hereby repealed.
(b) Housing Goal.--The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended by inserting before section 1335 the following:
``SEC. 1331. ESTABLISHMENT OF HOUSING GOALS.
``(a) In General.--The Director shall, by regulation, establish effective for the first calendar year that begins after the date of enactment of the Federal Housing Finance Regulatory Reform Act of 2008, and each year thereafter, annual housing goals, as described under this subpart, with respect to the mortgage purchases by the enterprises.
``(b) Special Counting Requirements.--
``(1) In general.--The Director shall determine whether an enterprise shall receive full, partial, or no credit for a transaction toward achievement of any of the housing goals established pursuant to this section or sections 1332 through 1334.
``(2) Considerations.--In making any determination under paragraph (1), the Director shall consider whether a transaction or activity of an enterprise is substantially equivalent to a mortgage purchase and either (A) creates a new market, or (B) adds liquidity to an existing market, provided however that the terms and conditions of such mortgage purchase is neither determined to be unacceptable, nor contrary to good lending practices, and otherwise promotes sustainable homeownership and further, that such mortgage purchase actually fulfills the purposes of the enterprise and is in accordance with the chartering Act of such enterprise.
``(c) Eliminating Interest Rate Disparities.--
``(1) In general.--In establishing and implementing the housing goals under this subpart, the Director shall require the enterprises to disclose appropriate information to allow the Director to assess if there are any disparities in interest rates charged on mortgages to borrowers who are minorities, as compared with borrowers of similar creditworthiness who are not minorities, as evidenced in reports pursuant to the Home Mortgage Disclosure Act of 1975.
``(2) Report to congress on disparities.--Upon a finding by the Director that a pattern of disparities in interest rates exists pursuant to the information provided by an enterprise under paragraph (1), the Director shall--
``(A) forward to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report detailing the disparities; and
``(B) forward the report prepared under subparagraph (A) to any other appropriate regulatory or enforcement agency.
``(3) Identity of individuals not disclosed.--In carrying out this subsection, the Director shall ensure that no personally identifiable financial information that would enable an individual borrower to be reasonably identified shall be made public.
``(d) Timing.--The Director shall establish an annual deadline for the establishment of housing goals described in subsection (a), taking into consideration the need for the enterprises to reasonably and sufficiently plan their operations and activities in advance, including operations and activities necessary to meet such goals.
``SEC. 1331A. DISCRETIONARY ADJUSTMENT OF HOUSING GOALS.
``(a) Authority.--
``(1) Review.--The Director shall review the appropriateness of each goal established pursuant to this subpart at least once during each year to assure that given current market conditions that each such goal is feasible.
``(2) Petition to reduce.--An enterprise may petition the Director in writing at any time during a year to reduce the level of any goal for such year established pursuant to this subpart.
``(b) Standard for Reduction.--The Director may reduce the level for a goal pursuant to such a petition only if--
``(1) market and economic conditions or the financial condition of the enterprise require such action; or
``(2) efforts to meet the goal would result in the constraint of liquidity, over-investment in certain market segments, or other consequences contrary to the intent of this subpart, section 301(3) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1716(3)), or section 301(b)(3) of the Federal Home Loan Mortgage Corporation Act
(12 U.S.C. 1451 note), as applicable.
``(c) Determination.--
``(1) 30-day period.--If an enterprise submits a petition for reduction to the Director under subsection (a)(2), the Director shall make a determination regarding any proposed reduction within 30 days of receipt of the petition.
``(2) Extension.--The Director may extend the period described in paragraph (1) for a single additional 15-day period, but only if the Director requests additional information from the enterprise.
``SEC. 1332. SINGLE-FAMILY HOUSING GOALS.
``(a) Establishment of Goals.--
``(1) In general.--The Director shall establish annual goals for the purchase by each enterprise of conventional, conforming, single-family, owner-occupied, purchase money mortgages financing housing for each of the following:
``(A) Low-income families.
``(B) Families that reside in low-income areas.
``(C) Very low-income families.
``(2) Goals as percentage of total purchase money mortgage purchases.--The goals established under paragraph (1) shall be established as a percentage of the total number of single-family dwelling units financed by single-family purchase money mortgage purchases of the enterprise.
``(b) Determination of Compliance.--
``(1) In general.--The Director shall determine, for each year that the housing goals under this section are in effect pursuant to section 1331(a), whether each enterprise has complied with the single-family housing goals established under this section for such year.
``(2) Compliance requirements.--An enterprise shall be considered to be in compliance with a goal described under subsection (a) for a year, only if, for each of the types of families described in subsection (a), the percentage of the number of conventional, conforming, single-family, owner-occupied, purchase money mortgages purchased by the enterprise in such year that serve such families, meets or exceeds the target established under subsection (c) for the year for such type of family.
``(c) Annual Targets.--
``(1) In general.--The Director shall establish annual targets for each goal described in subsection (a).
``(2) Considerations.--In establishing annual targets under paragraph (1), the Director shall consider--
``(A) national housing needs;
``(B) economic, housing, and demographic conditions;
``(C) the performance and effort of the enterprises toward achieving the housing goals under this section in previous years;
``(D) the ability of the enterprise to lead the industry in making mortgage credit available;
``(E) recent information submitted in compliance with the Home Mortgage Disclosure Act of 1975 and such other reliable mortgage data as may be available;
``(F) the size of the purchase money conventional mortgage market serving each of the types of families described in subsection (a), relative to the size of the overall purchase money mortgage market; and
``(G) the need to maintain the sound financial condition of the enterprises.
``(3) High-cost loans and inappropriate lending practices.--In establishing annual targets under paragraph
(1), the Director shall not consider segments of the market determined to be unacceptable or contrary to good lending practices pursuant to section 1331(b)(2).
``(d) Notice of Determination and Enterprise Comment.--
``(1) Notice.--Within 30 days of making a determination under subsection (b) regarding compliance of an enterprise for a year with the housing goals established under this section and before any public disclosure thereof, the Director shall provide notice of the determination to the enterprise, which shall include an analysis and comparison, by the Director, of the performance of the enterprise for the year and the targets for the year under subsection (c).
``(2) Comment period.--The Director shall provide each enterprise and the public an opportunity to comment on the determination during the 30-day period beginning upon receipt by the enterprise of the notice.
``(e) Use of Borrower Income.--In monitoring the performance of each enterprise pursuant to the housing goals under this section and evaluating such performance (for purposes of section 1336), the Director shall consider a mortgagor's income to be the income of the mortgagor at the time of origination of the mortgage.
``(f) Consideration of Properties With Rental Units.--Mortgages financing 1-to-4 unit owner-occupied properties shall count toward the achievement of the single-family housing goal under this section, if such properties otherwise meet the requirements under this section notwithstanding the use of 1 or more units for rental purposes.
``SEC. 1333. SINGLE-FAMILY HOUSING REFINANCE GOALS.
``(a) Prepayment of Existing Loans.--
``(1) In general.--The Director shall establish annual goals for the purchase by each enterprise of mortgages on conventional, conforming, single-family, owner-occupied housing given to pay off or prepay an existing loan served by the same property for each of the following:
``(A) Low-income families.
``(B) Families that reside in low-income areas.
``(C) Very low-income families.
``(2) Goals as percentage of total refinancing mortgage purchases.--The goals described under paragraph (1) shall be established as a percentage of the total number of single-family dwelling units refinanced by mortgage purchases of each enterprise.
``(b) Determination of Compliance.--
``(1) In general.--The Director shall determine, for each year that the housing goals under this section are in effect pursuant to section 1331(a), whether each enterprise has complied with the single-family housing refinance goals established under this section for such year.
``(2) Compliance.--An enterprise shall be considered to be in compliance with the goals of this section for a year, only if, for each of the types of families described in subsection
(a), the percentage of the number of conventional, conforming, single-family, owner-occupied refinancing mortgages purchased by each enterprise in such year that serve such families, meets or exceeds the target for the year for such type of family that is established under subsection
(c).
``(c) Annual Targets.--
``(1) In general.--The Director shall establish annual targets for each goal described in subsection (a).
``(2) Considerations.--In establishing annual targets under paragraph (1), the Director shall consider--
``(A) national housing needs;
``(B) economic, housing, and demographic conditions;
``(C) the performance and effort of the enterprises toward achieving the housing goals under this section in previous years;
``(D) the ability of the enterprise to lead the industry in making mortgage credit available;
``(E) recent information submitted in compliance with the Home Mortgage Disclosure Act of 1975 and such other reliable mortgage data as may be available;
``(F) the size of the purchase money conventional mortgage market serving each of the types of families described in subsection (a), relative to the size of the overall purchase money mortgage market; and
``(G) the need to maintain the sound financial condition of the enterprises.
``(d) Notice of Determination and Enterprise Comment.--
``(1) Notice.--Within 30 days of making a determination under subsection (b) regarding compliance of an enterprise for a year with the housing goals established under this section and before any public disclosure thereof, the Director shall provide notice of the determination to the enterprise, which shall include an analysis and comparison, by the Director, of the performance of the enterprise for the year and the targets for the year under subsection (c).
``(2) Comment period.--The Director shall provide each enterprise and the public an opportunity to comment on the determination during the 30-day period beginning upon receipt by the enterprise of the notice.
``(e) Use of Borrower Income.--In monitoring the performance of each enterprise pursuant to the housing goals under this section and evaluating such performance (for purposes of section 1336), the Director shall consider a mortgagor's income to be the income of the mortgagor at the time of origination of the mortgage.
``SEC. 1334. MULTIFAMILY SPECIAL AFFORDABLE HOUSING GOAL.
``(a) Establishment.--
``(1) In general.--The Director shall establish, by regulation, by unit, dollar volume, or percentage of multifamily activity, as determined by the Director, an annual goal for the purchase by each enterprise of--
``(A) mortgages that finance dwelling units affordable to very low-income families; and
``(B) mortgages that finance dwelling units assisted by the low-income housing tax credit under section 42 of the Internal Revenue Code of 1986.
``(2) Additional requirements for smaller projects.--The Director shall establish, within the housing goal established under this section, additional requirements for the purchase by each enterprise of mortgages described in paragraph (1) for multifamily housing projects of a smaller or limited size, which may be based on the number of dwelling units in the project or the amount of the mortgage, or both, and shall include multifamily housing projects of 5 to 50 units (as adjusted by the Director), or with mortgages of up to
$5,000,000 (as adjusted by the Director).
``(3) Factors.--The Director shall establish the goal and additional requirements under this section taking into consideration--
``(A) national multifamily mortgage credit needs;
``(B) the performance and effort of the enterprise in making mortgage credit available for multifamily housing in previous years;
``(C) the size of the multifamily mortgage market, including the size of the small multifamily mortgage market;
``(D) the most recent information available for the Residential Survey published by the Census Bureau, and such other reliable data as may be available regarding multifamily mortgages;
``(E) the ability of the enterprise to lead the industry in expanding mortgage credit availability at favorable terms, especially for underserved markets, such as for--
``(i) small multifamily projects;
``(ii) multifamily properties in need of preservation and rehabilitation; and
``(iii) multifamily properties located in rural areas; and
``(F) the need to maintain the sound financial condition of the enterprise.
``(b) Units Financed by Housing Finance Agency Bonds.--The Director may give credit toward the achievement of the multifamily special affordable housing goal under this section (for purposes of section 1336) to dwelling units in multifamily housing projects that otherwise qualify under such goal and that are financed by tax-exempt or taxable bonds issued by a State or local housing finance agency, but only if such bonds--
``(1) are secured by a guarantee of the enterprise; or
``(2) are not investment grade and are purchased by the enterprise.
``(c) Use of Tenant Rent Level.--
``(1) In general.--The Director shall monitor the performance of each enterprise in meeting the goal established under this section and shall evaluate such performance (for purposes of section 1336) based on whether the rent levels are affordable to low-income and very low-income families.
``(2) Rent level.--A rent level shall be considered to be affordable for purposes of this subsection for an income category referred to in this subsection if it does not exceed 30 percent of the maximum income level of such income category, with appropriate adjustments for unit size as measured by the number of bedrooms.
``(d) Determination of Compliance.--
``(1) In general.--The Director shall, for each year that the housing goal under this section is in effect pursuant to section 1331(a), determine whether each enterprise has complied with such goal and the additional requirements under subsection (a)(2).
``(2) Compliance.--An enterprise shall be considered to be in compliance with the goal described under subsection (a) for a year only if the multifamily mortgage purchases of the enterprise meet or exceed the goal for the year established under subsection (a).
``(e) Consideration of Units in Single-Family Rental Housing.--In establishing the goal under this section, the Director may take into consideration the number of housing units financed by any mortgage purchased by an enterprise on single-family rental housing that is not owner-occupied.
``(f) Removing Credit.--The Director shall subtract from the units or mortgages counted toward the goal established under this section in a current year any units or mortgages credited toward such goal in a prior year if an enterprise requires a lender to repurchase, or reimburse for losses, or indemnify the enterprise against potential losses on such units or mortgages.
``(g) Notice of Determination and Enterprise Comment.--
``(1) Notice.--Within 30 days of making a determination under subsection (d) regarding compliance of an enterprise for a year with the housing goal established under this section and before any public disclosure thereof, the Director shall provide notice of the determination to the enterprise, which shall include an analysis and comparison, by the Director, of the performance of the enterprise for the year and the goal for the year under subsection (a).
``(2) Comment period.--The Director shall provide each enterprise and the public an opportunity to comment on the determination during the 30-day period beginning upon receipt by the enterprise of the notice.''.
(c) Conforming Amendments.--The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended--
(1) in section 1335(a) (12 U.S.C. 4565(a)), in the matter preceding paragraph (1), by striking ``low- and moderate-income housing goal'' and all that follows through ``section 1334'' and inserting ``housing goals established under this subpart''; and
(2) in section 1336(a)(1) (12 U.S.C. 4566(a)(1)), by striking ``sections 1332, 1333, and 1334,'' and inserting
``this subpart''.
(d) Definitions.--Section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4502) is amended--
(1) by striking paragraph (24), as so designated by section 1002 of this Act, and inserting the following:
``(24) Very low-income.--
``(A) In general.--The term `very low-income' means--
``(i) in the case of owner-occupied units, families having incomes not greater than 50 percent of the area median income; and
``(ii) in the case of rental units, families having incomes not greater than 50 percent of the area median income, with adjustments for smaller and larger families, as determined by the Director.
``(B) Rule of construction.--For purposes of section 1338 and 1339, the term `very low-income' means--
``(i) in the case of owner-occupied units, income in excess of 30 percent but not greater than 50 percent of the area median income; and
``(ii) in the case of rental units, income in excess of 30 percent but not greater than 50 percent of the area median income, with adjustments for smaller and larger families, as determined by the Director.''; and
(2) by adding at the end the following:
``(26) Conforming mortgage.--The term `conforming mortgage' means, with respect to an enterprise, a conventional mortgage having an original principal obligation that does not exceed the applicable dollar limitation, in effect at the time of such origination, under--
``(A) section 302(b)(2) of the Federal National Mortgage Association Charter Act; or
``(B) section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act.
``(27) Extremely low-income.--The term `extremely low-income' means--
``(A) in the case of owner-occupied units, income not in excess of 30 percent of the area median income; and
``(B) in the case of rental units, income not in excess of 30 percent of the area median income, with adjustments for smaller and larger families, as determined by the Director.
``(28) Low-income area.--The term `low-income area' means a census tract or block numbering area in which the median income does not exceed 80 percent of the median income for the area in which such census tract or block numbering area is located, and, for the purposes of section 1332(a)(2), shall include families having incomes not greater than 100 percent of the area median income who reside in minority census tracts.
``(29) Minority census tract.--The term `minority census tract' means a census tract that has a minority population of at least 30 percent and a median family income of less than 100 percent of the area family median income.
``(30) Shortage of standard rental units both affordable and available to extremely low-income renter households.--
``(A) In general.--The term `shortage of standard rental units both affordable and available to extremely low-income renter households' means the gap between--
``(i) the number of units with complete plumbing and kitchen facilities with a rent that is 30 percent or less of 30 percent of the adjusted area median income as determined by the Director that are occupied by extremely low-income renter households or are vacant for rent; and
``(ii) the number of extremely low-income renter households.
``(B) Rule of construction.--If the number of units described in subparagraph (A)(i) exceeds the number of extremely low-income households as described in subparagraph
(A)(ii), there is no shortage.
``(31) Shortage of standard rental units both affordable and available to very low-income renter households.--
``(A) In general.--The term `shortage of standard rental units both affordable and available to very low-income renter households' means the gap between--
``(i) the number of units with complete plumbing and kitchen facilities with a rent that is 30 percent or less of 50 percent of the adjusted area median income as determined by the Director that are occupied by either extremely low- or very low-income renter households or are vacant for rent; and
``(ii) the number of extremely low- and very low-income renter households.
``(B) Rule of construction.--If the number of units described in subparagraph (A)(i) exceeds the number of extremely low- and very low-income households as described in subparagraph (A)(ii), there is no shortage.''.
SEC. 1129. DUTY TO SERVE UNDERSERVED MARKETS.
(a) Establishment and Evaluation of Performance.--Section 1335 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4565) is amended--
(1) in the section heading, by inserting ``duty to serve underserved markets and'' before ``other'';
(2) by striking subsection (b);
(3) in subsection (a)--
(A) in the matter preceding paragraph (1), by inserting
``and to carry out the duty under subsection (a) of this section'' before ``, each enterprise shall'';
(B) in paragraph (3), by inserting ``and'' after the semicolon at the end;
(C) in paragraph (4), by striking ``; and'' and inserting a period;
(D) by striking paragraph (5); and
(E) by redesignating such subsection as subsection (b);
(4) by inserting before subsection (b) (as so redesignated by paragraph (3)(E) of this subsection) the following new subsection:
``(a) Duty to Serve Underserved Markets.--
``(1) Duty.--In accordance with the purpose of the enterprises under section 301(3) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1716) and section 301(b)(3) of the Federal Home Loan Mortgage Corporation Act
(12 U.S.C. 1451 note) to undertake activities relating to mortgages on housing for very low-, low-, and moderate-income families involving a reasonable economic return that may be less than the return earned on other activities, each enterprise shall have the duty to increase the liquidity of mortgage investments and improve the distribution of investment capital available for mortgage financing for underserved markets by purchasing or securitizing mortgage investments.
``(2) Underserved markets.--To meet its duty under paragraph (1), each enterprise shall comply with the following requirements with respect to the following underserved markets:
``(A) Manufactured housing.--The enterprise shall lead the industry in developing loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on manufactured homes for very low-, low-, and moderate-income families.
``(B) Affordable housing preservation.--The enterprise shall lead the industry in developing loan products and flexible underwriting guidelines to facilitate a secondary market to preserve housing affordable to very low-, low-, and moderate-income families, including housing projects subsidized under--
``(i) the project-based and tenant-based rental assistance programs under section 8 of the United States Housing Act of 1937;
``(ii) the program under section 236 of the National Housing Act;
``(iii) the below-market interest rate mortgage program under section 221(d)(4) of the National Housing Act;
``(iv) the supportive housing for the elderly program under section 202 of the Housing Act of 1959;
``(v) the supportive housing program for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act;
``(vi) the programs under title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361 et seq.), but only permanent supportive housing projects subsidized under such programs; and
``(vii) the rural rental housing program under section 515 of the Housing Act of 1949.
``(C) Rural and other underserved markets.--The enterprise shall lead the industry in developing loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on housing for very low-, low-, and moderate-income families in rural areas, and for mortgages for housing for any other underserved market for very low-, low-, and moderate-income families that the Director identifies as lacking adequate credit through conventional lending sources. Such underserved markets may be identified by borrower type, market segment, or geographic area.''; and
(5) by adding at the end the following new subsection:
``(c) Evaluation and Reporting of Compliance.--
``(1) In general.--Not later than 6 months after the effective date of the Federal Housing Finance Regulatory Reform Act of 2008, the Director shall establish a manner for evaluating whether, and the extent to which, the enterprises have complied with the duty under subsection (a) to serve underserved markets and for rating the extent of such compliance. Using such method, the Director shall, for each year, evaluate such compliance and rate the performance of each enterprise as to extent of compliance. The Director shall include such evaluation and rating for each enterprise for a year in the report for that year submitted pursuant to section 1319B(a).
``(2) Separate evaluations.--In determining whether an enterprise has complied with the duty referred to in paragraph (1), the Director shall separately evaluate whether the enterprise has complied with such duty with respect to each of the underserved markets identified in subsection (a), taking into consideration--
``(A) the development of loan products and more flexible underwriting guidelines;
``(B) the extent of outreach to qualified loan sellers in each of such underserved markets; and
``(C) the volume of loans purchased in each of such underserved markets.
``(3) Manufactured housing market.--In determining whether an enterprise has complied with the duty under subparagraph
(A) of subsection (a)(2), the Director may consider loans secured by both real and personal property.''.
(b) Enforcement.--Subsection (a) of section 1336 of the Housing and Community Development Act of 1992 (12 U.S.C. 4566(a)) is amended--
(1) in paragraph (1), by inserting ``and with the duty under section 1335(a) of each enterprise with respect to underserved markets,'' before ``as provided in this section''; and
(2) by adding at the end of such subsection, as amended by the preceding provisions of this subtitle, the following new paragraph:
``(4) Enforcement of duty to provide mortgage credit to underserved markets.--The duty under section 1335(a) of each enterprise to serve underserved markets (as determined in accordance with section 1335(c)) shall be enforceable under this section to the same extent and under the same provisions that the housing goals established under this subpart are enforceable. Such duty shall not be enforceable under any other provision of this title (including subpart C of this part) other than this section or under any provision of the Federal National Mortgage Association Charter Act or the Federal Home Loan Mortgage Corporation Act.''.
SEC. 1130. MONITORING AND ENFORCING COMPLIANCE WITH HOUSING
GOALS.
(a) In General.--Section 1336 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4566) is amended by striking subsections (b) and (c) and inserting the following:
``(b) Notice and Preliminary Determination of Failure To Meet Goals.--
``(1) Notice.--If the Director preliminarily determines that an enterprise has failed, or that there is a substantial probability that an enterprise will fail, to meet any housing goal under this subpart, the Director shall provide written notice to the enterprise of such a preliminary determination, the reasons for such determination, and the information on which the Director based the determination.
``(2) Response period.--
``(A) In general.--During the 30-day period beginning on the date on which an enterprise is provided notice under paragraph (1), the enterprise may submit to the Director any written information that the enterprise considers appropriate for consideration by the Director in finally determining whether such failure has occurred or whether the achievement of such goal was or is feasible.
``(B) Extended period.--The Director may extend the period under subparagraph (A) for good cause for not more than 30 additional days.
``(C) Shortened period.--The Director may shorten the period under subparagraph (A) for good cause.
``(D) Failure to respond.--The failure of an enterprise to provide information during the 30-day period under this paragraph (as extended or shortened) shall waive any right of the enterprise to comment on the proposed determination or action of the Director.
``(3) Consideration of information and final determination.--
``(A) In general.--After the expiration of the response period under paragraph (2), or upon receipt of information provided during such period by the enterprise, whichever occurs earlier, the Director shall issue a final determination on--
``(i) whether the enterprise has failed, or there is a substantial probability that the enterprise will fail, to meet the housing goal; and
``(ii) whether (taking into consideration market and economic conditions and the financial condition of the enterprise) the achievement of the housing goal was or is feasible.
``(B) Considerations.--In making a final determination under subparagraph (A), the Director shall take into consideration any relevant information submitted by the enterprise during the response period.
``(C) Notice.--The Director shall provide written notice, including a response to any information submitted during the response period, to the enterprise, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives, of--
``(i) each final determination under this paragraph that an enterprise has failed, or that there is a substantial probability that the enterprise will fail, to meet a housing goal;
``(ii) each final determination that the achievement of a housing goal was or is feasible; and
``(iii) the reasons for each such final determination.
``(c) Cease and Desist, Civil Money Penalties, and Remedies Including Housing Plans.--
``(1) Requirement.--If the Director finds, pursuant to subsection (b), that there is a substantial probability that an enterprise will fail, or has actually failed, to meet any housing goal under this subpart, and that the achievement of the housing goal was or is feasible, the Director may require that the enterprise submit a housing plan under this subsection. If the Director makes such a finding and the enterprise refuses to submit such a plan, submits an unacceptable plan, fails to comply with the plan, or the Director finds that the enterprise has failed to meet any housing goal under this subpart, in addition to requiring an enterprise to submit a housing plan, the Director may issue a cease and desist order in accordance with section 1341, impose civil money penalties in accordance with section 1345, or order other remedies as set forth in paragraph (7).
``(2) Housing plan.--If the Director requires a housing plan under this subsection, such a plan shall be--
``(A) a feasible plan describing the specific actions the enterprise will take--
``(i) to achieve the goal for the next calendar year; and
``(ii) if the Director determines that there is a substantial probability that the enterprise will fail to meet a goal in the current year, to make such improvements and changes in its operations as are reasonable in the remainder of such year; and
``(B) sufficiently specific to enable the Director to monitor compliance periodically.
``(3) Deadline for submission.--The Director shall establish a deadline for an enterprise to comply with any remedial action or submit a housing plan to the Director, which may not be more than 45 days after the enterprise is provided notice. The Director may extend the deadline to the extent that the Director determines necessary. Any extension of the deadline shall be in writing and for a time certain.
``(4) Approval.--The Director shall review each submission by an enterprise, including a housing plan submitted under this subsection, and, not later than 30 days after submission, approve or disapprove the plan or other action. The Director may extend the period for approval or disapproval for a single additional 30-day period if the Director determines it necessary. The Director shall approve any plan that the Director determines is likely to succeed, and conforms with the Federal National Mortgage Association Charter Act or the Federal Home Loan Mortgage Corporation Act
(as applicable), this title, and any other applicable provision of law.
``(5) Notice of approval and disapproval.--The Director shall provide written notice to any enterprise submitting a housing plan of the approval or disapproval of the plan
(which shall include the reasons for any disapproval of the plan) and of any extension of the period for approval or disapproval.
``(6) Resubmission.--If the initial housing plan submitted by an enterprise under this section is disapproved, the enterprise shall submit an amended plan acceptable to the Director not later than 15 days after such disapproval, or such longer period that the Director determines is in the public interest.
``(7) Additional remedies for failure to meet goals.--In addition to ordering a housing plan under this section, issuing cease and desist orders under section 1341, and ordering civil money penalties under section 1345, the Director may--
``(A) seek other actions when an enterprise fails to meet a goal; and
``(B) exercise appropriate enforcement authority available to the Director under this Act.''.
(b) Conforming Amendment.--The heading for subpart C of part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended to read as follows:
``Subpart C--Enforcement''.
(c) Cease and Desist Proceedings .--
(1) Repeal.--Section 1341 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4581) is hereby repealed.
(2) Cease and desist proceedings.--The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended by inserting before section 1342 the following:
``SEC. 1341. CEASE AND DESIST PROCEEDINGS.
``(a) Grounds for Issuance.--The Director may issue and serve a notice of charges under this section upon an enterprise if the Director determines that--
``(1) the enterprise has failed to meet any housing goal established under subpart B, following a written notice and determination of such failure in accordance with section 1336;
``(2) the enterprise has failed to submit a report under section 1327, following a notice of such failure, an opportunity for comment by the enterprise, and a final determination by the Director;
``(3) the enterprise has failed to submit the information required under subsection (m) or (n) of section 309 of the Federal National Mortgage Association Charter Act, or subsection (e) or (f) of section 307 of the Federal Home Loan Mortgage Corporation Act;
``(4) the enterprise has violated any provision of part 2 of this title or any order, rule, or regulation under part 2;
``(5) the enterprise has failed to submit a housing plan or perform its responsibilities under a remedial order that substantially complies with section 1336(c) within the applicable period; or
``(6) the enterprise has failed to comply with a housing plan under section 1336(c).
``(b) Procedure.--
``(1) Notice of charges.--Each notice of charges issued under this section shall contain a statement of the facts constituting the alleged conduct and shall fix a time and place at which a hearing will be held to determine on the record whether an order to cease and desist from such conduct should issue.
``(2) Issuance of order.--If the Director finds on the record made at a hearing described in paragraph (1) that any conduct specified in the notice of charges has been established (or the enterprise consents pursuant to section 1342(a)(4)), the Director may issue and serve upon the enterprise an order requiring the enterprise to--
``(A) comply with the goals;
``(B) submit a report under section 1327;
``(C) comply with any provision of part 2 of this title or any order, rule, or regulation under part 2;
``(D) submit a housing plan in compliance with section 1336(c);
``(E) comply with the housing plan in compliance with section 1336(c); or
``(F) provide the information required under subsection (m) or (n) of section 309 of the Federal National Mortgage Association Charter Act, or subsection (e) or (f) of section 307 of the Federal Home Loan Mortgage Corporation Act.
``(c) Effective Date.--An order under this section shall become effective upon the expiration of the 30-day period beginning on the date of service of the order upon the enterprise (except in the case of an order issued upon consent, which shall become effective at the time specified therein), and shall remain effective and enforceable as provided in the order, except to the extent that the order is stayed, modified, terminated, or set aside by action of the Director or otherwise, as provided in this subpart.''.
(d) Civil Money Penalties.--
(1) Repeal.--Section 1345 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4585) is hereby repealed.
(2) Civil money penalties.--The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended by inserting after section 1344 the following:
``SEC. 1345. CIVIL MONEY PENALTIES.
``(a) Authority.--The Director may impose a civil money penalty, in accordance with the provisions of this section, on any enterprise that has failed to--
``(1) meet any housing goal established under subpart B, following a written notice and determination of such failure in accordance with section 1336(b);
``(2) submit a report under section 1327, following a notice of such failure, an opportunity for comment by the enterprise, and a final determination by the Director;
``(3) submit the information required under subsection (m) or (n) of section 309 of the Federal National Mortgage Association Charter Act or subsection (e) or (f) of section 307 of the Federal Home Loan Mortgage Corporation Act;
``(4) comply with any provision of part 2 of this title or any order, rule, or regulation under part 2;
``(5) submit a housing plan or perform its responsibilities under a remedial order issued pursuant to section 1336(c) within the required period; or
``(6) comply with a housing plan for the enterprise under section 1336(c).
``(b) Amount of Penalty.--The amount of a penalty under this section, as determined by the Director, may not exceed--
``(1) for any failure described in paragraph (1), (5), or
(6) of subsection (a), $100,000 for each day that the failure occurs; and
``(2) for any failure described in paragraph (2), (3), or
(4) of subsection (a), $50,000 for each day that the failure occurs.
``(c) Procedures.--
``(1) Establishment.--The Director shall establish standards and procedures governing the imposition of civil money penalties under this section. Such standards and procedures--
``(A) shall provide for the Director to notify the enterprise in writing of the determination of the Director to impose the penalty, which shall be made on the record;
``(B) shall provide for the imposition of a penalty only after the enterprise has been given an opportunity for a hearing on the record pursuant to section 1342; and
``(C) may provide for review by the Director of any determination or order, or interlocutory ruling, arising from a hearing.
``(2) Factors in determining amount of penalty.--In determining the amount of a penalty under this section, the Director shall give consideration to factors including--
``(A) the gravity of the offense;
``(B) any history of prior offenses;
``(C) ability to pay the penalty;
``(D) injury to the public;
``(E) benefits received;
``(F) deterrence of future violations;
``(G) the length of time that the enterprise should reasonably take to achieve the goal; and
``(H) such other factors as the Director may determine, by regulation, to be appropriate.
``(d) Action to Collect Penalty.--If an enterprise fails to comply with an order by the Director imposing a civil money penalty under this section, after the order is no longer subject to review, as provided in sections 1342 and 1343, the Director may bring an action in the United States District Court for the District of Columbia to obtain a monetary judgment against the enterprise, and such other relief as may be available. The monetary judgment may, in the court's discretion, include the attorneys' fees and other expenses incurred by the United States in connection with the action. In an action under this subsection, the validity and appropriateness of the order imposing the penalty shall not be subject to review.
``(e) Settlement by Director.--The Director may compromise, modify, or remit any civil money penalty which may be, or has been, imposed under this section.
``(f) Deposit of Penalties.--The Director shall use any civil money penalties collected under this section to help fund the Housing Trust Fund established under section 1338.''.
(e) Director Authority.--
(1) Authority to bring a civil action.--Section 1344(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4584) is amended by striking
``The Secretary may request the Attorney General of the United States to bring a civil action'' and inserting ``The Director may bring a civil action''.
(2) Subpoena enforcement.--Section 1348(c) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4588(c)) is amended by inserting ``may bring an action or'' before ``may request''.
(3) Conforming amendments.--Subpart C of part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4581 et seq.) is amended by striking ``Secretary'' each place that term appears and inserting ``Director'' in each of--
(A) section 1342 (12 U.S.C. 4582);
(B) section 1343 (12 U.S.C. 4583);
(C) section 1346 (12 U.S.C. 4586);
(D) section 1347 (12 U.S.C. 4587); and
(E) section 1348 (12 U.S.C. 4588).
SEC. 1131. AFFORDABLE HOUSING PROGRAMS.
(a) Repeal.--Section 1337 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4567) is hereby repealed.
(b) Housing Trust Funds.--The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 1301 et seq.) is amended by inserting after section 1336 the following:
``SEC. 1337. AFFORDABLE HOUSING APPROPRIATIONS.
``(a) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated such sums as are necessary to carry out the provisions of sections 1338 and 1339.
``(2) Allocation.--Of the amounts authorized to be appropriated under paragraph (1)--
``(A) 65 percent of such amounts shall be allocated to the Secretary of Housing and Urban Development to fund the Housing Trust Fund established under section 1338; and
``(B) 35 percent of such amounts shall be allocated to fund the Capital Magnet Fund established pursuant to section 1339.
``(b) Required Amount for HOPE Reserve Fund.--Of the aggregate amount allocated under subsection (a), 25 percent shall be deposited into a fund established in the Treasury of the United States by the Secretary of the Treasury for such purpose.
``(c) Limitation.--No funds under this title may be used in conjunction with property taken by eminent domain, unless eminent domain is employed only for a public use, except that, for purposes of this section, public use shall not be construed to include economic development that primarily benefits any private entity.
``SEC. 1338. HOUSING TRUST FUND.
``(a) Establishment and Purpose.--The Secretary of Housing and Urban Development (in this section referred to as the
`Secretary') shall establish and manage a Housing Trust Fund, which shall be funded with amounts appropriated under section 1337 and any amounts as are or may be transferred or credited to such Housing Trust Fund under any other provisions of law. The purpose of the Housing Trust Fund under this section is to provide grants to States for use--
``(1) to increase and preserve the supply of rental housing for extremely low- and very low-income families, including homeless families; and
``(2) to increase homeownership for extremely low- and very low-income families.
``(b) Allocations for HOPE Bond Payments.--
``(1) In general.--Notwithstanding subsection (c), to help address the mortgage crisis, of the amounts appropriated under section 1337(a) in excess of amounts described in section 1337(b)--
``(A) 100 percent of such excess shall be used to reimburse the Treasury for payments made pursuant to section 257(w)(1)(C) of the National Housing Act in calendar year 2009;
``(B) 50 percent of such excess shall be used to reimburse the Treasury for such payments in calendar year 2010; and
``(C) 25 percent of such excess shall be used to reimburse the Treasury for such payments in calendar year 2011.
``(2) Excess funds.--At the termination of the HOPE for Homeowners Program established under section 257 of the National Housing Act, if amounts used to reimburse the Treasury under paragraph (1) exceed the total net cost to the Government of the HOPE for Homeowners Program, such amounts shall be used for their original purpose, as described in subparagraphs (A) and (B) of section 1337(a)(2).
``(3) Treasury fund.--The amounts referred to in subparagraphs (A) through (C) of paragraph (1) shall be deposited into a fund established in the Treasury of the United States by the Secretary of the Treasury for such purpose.
``(c) Allocation for Housing Trust Fund in Fiscal Year 2010 and Subsequent Years.--
``(1) In general.--Except as provided in subsection (b), the Secretary shall distribute the amounts appropriated for the Housing Trust Fund under this section to provide affordable housing as described in this subsection.
``(2) Permissible designees.--A State receiving grant amounts under this subsection may designate a State housing finance agency, housing and community development entity, tribally designated housing entity (as such term is defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1997 (25 U.S.C. 4103)), or any other qualified instrumentality of the State to receive such grant amounts.
``(3) Distribution to states by needs-based formula.--
``(A) In general.--The Secretary shall, by regulation, establish a formula within 12 months of the date of enactment of the Federal Housing Finance Regulatory Reform Act of 2008, to distribute amounts made available under this subsection to each State to provide affordable housing to extremely low- and very low-income households.
``(B) Basis for formula.--The formula required under subparagraph (A) shall include the following:
``(i) The ratio of the shortage of standard rental units both affordable and available to extremely low-income renter households in the State to the aggregate shortage of standard rental units both affordable and available to extremely low-income renter households in all the States.
``(ii) The ratio of the shortage of standard rental units both affordable and available to very low-income renter households in the State to the aggregate shortage of standard rental units both affordable and available to very low-income renter households in all the States.
``(iii) The ratio of extremely low-income renter households in the State living with either (I) incomplete kitchen or plumbing facilities, (II) more than 1 person per room, or
(III) paying more than 50 percent of income for housing costs, to the aggregate number of extremely low-income renter households living with either (IV) incomplete kitchen or plumbing facilities, (V) more than 1 person per room, or (VI) paying more than 50 percent of income for housing costs in all the States.
``(iv) The ratio of very low-income renter households in the State paying more than 50 percent of income on rent relative to the aggregate number of very low-income renter households paying more than 50 percent of income on rent in all the States.
``(v) The resulting sum calculated from the factors described in clauses (i) through (iv) shall be multiplied by the relative cost of construction in the State. For purposes of this subclause, the term `cost of construction'--
``(I) means the cost of construction or building rehabilitation in the State relative to the national cost of construction or building rehabilitation; and
``(II) shall be calculated such that values higher than 1.0 indicate that the State's construction costs are higher than the national average, a value of 1.0 indicates that the State's construction costs are exactly the same as the national average, and values lower than 1.0 indicate that the State's cost of construction are lower than the national average.
``(C) Priority.--The formula required under subparagraph
(A) shall give priority emphasis and consideration to the factor described in subparagraph (B)(i).
``(4) Allocation of grant amounts.--
``(A) Notice.--Not later than 60 days after the date that the Secretary determines the formula amounts described in paragraph (3), the Secretary shall caused to be published in the Federal Register a notice that such amounts shall be so available.
``(B) Grant amount.--In each fiscal year other than fiscal year 2009, the Secretary shall make a grant to each State in an amount that is equal to the formula amount determined under paragraph (3) for that State.
``(C) Minimum state allocations.--If the formula amount determined under paragraph (3) for a fiscal year would allocate less than $3,000,000 to any State, the allocation for such State shall be $3,000,000, and the increase shall be deducted pro rata from the allocations made to all other States.
``(5) Allocation plans required.--
``(A) In general.--For each year that a State or State designated entity receives a grant under this subsection, the State or State designated entity shall establish an allocation plan. Such plan shall--
``(i) set forth a plan for the distribution of grant amounts received by the State or State designated entity for such year;
``(ii) be based on priority housing needs, as determined by the State or State designated entity in accordance with the regulations established under subsection (g)(2)(C);
``(iii) comply with paragraph (6); and
``(iv) include performance goals that comply with the requirements established by the Secretary pursuant to subsection (g)(2).
``(B) Establishment.--In establishing an allocation plan under this paragraph, a State or State designated entity shall--
``(i) notify the public of the establishment of the plan;
``(ii) provide an opportunity for public comments regarding the plan;
``(iii) consider any public comments received regarding the plan; and
``(iv) make the completed plan available to the public.
``(C) Contents.--An allocation plan of a State or State designated entity under this paragraph shall set forth the requirements for eligible recipients under paragraph (8) to apply for such grant amounts, including a requirement that each such application include--
``(i) a description of the eligible activities to be conducted using such assistance; and
``(ii) a certification by the eligible recipient applying for such assistance that any housing units assisted with such assistance will comply with the requirements under this section.
``(6) Selection of activities funded using housing trust fund grant amounts.--Grant amounts received by a State or State designated entity under this subsection may be used, or committed for use, only for activities that--
``(A) are eligible under paragraph (7) for such use;
``(B) comply with the applicable allocation plan of the State or State designated entity under paragraph (5); and
``(C) are selected for funding by the State or State designated entity in accordance with the process and criteria for such selection established pursuant to subsection
(g)(2)(C).
``(7) Eligible activities.--Grant amounts allocated to a State or State designated entity under this subsection shall be eligible for use, or for commitment for use, only for assistance for--
``(A) the production, preservation, and rehabilitation of rental housing, including housing under the programs identified in section 1335(a)(2)(B) and for operating costs, except that not less than 75 percent of such grant amounts shall be used for the benefit only of extremely low-income families and not more than 25 percent for the benefit only of very low-income families; and
``(B) the production, preservation, and rehabilitation of housing for homeownership, including such forms as down payment assistance, closing cost assistance, and assistance for interest rate buy-downs, that--
``(i) is available for purchase only for use as a principal residence by families that qualify both as--
``(I) extremely low- and very low-income families at the times described in subparagraphs (A) through (C) of section 215(b)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(b)(2)); and
``(II) first-time homebuyers, as such term is defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704), except that any reference in such section to assistance under title II of such Act shall for purposes of this subsection be considered to refer to assistance from affordable housing fund grant amounts;
``(ii) has an initial purchase price that meets the requirements of section 215(b)(1) of the Cranston-Gonzalez National Affordable Housing Act;
``(iii) is subject to the same resale restrictions established under section 215(b)(3) of the Cranston-Gonzalez National Affordable Housing Act and applicable to the participating jurisdiction that is the State in which such housing is located; and
``(iv) is made available for purchase only by, or in the case of assistance under this subsection, is made available only to homebuyers who have, before purchase completed a program of independent financial education and counseling from an eligible organization that meets the requirements of section 132 of the Federal Housing Finance Regulatory Reform Act of 2008.
``(8) Eligible recipients.--Grant amounts allocated to a State or State designated entity under this subsection may be provided only to a recipient that is an organization, agency, or other entity (including a for-profit entity or a nonprofit entity) that--
``(A) has demonstrated experience and capacity to conduct an eligible activity under paragraph (7), as evidenced by its ability to--
``(i) own, construct or rehabilitate, manage, and operate an affordable multifamily rental housing development;
``(ii) design, construct or rehabilitate, and market affordable housing for homeownership; or
``(iii) provide forms of assistance, such as down payments, closing costs, or interest rate buy-downs for purchasers;
``(B) demonstrates the ability and financial capacity to undertake, comply, and manage the eligible activity;
``(C) demonstrates its familiarity with the requirements of any other Federal, State, or local housing program that will be used in conjunction with such grant amounts to ensure compliance with all applicable requirements and regulations of such programs; and
``(D) makes such assurances to the State or State designated entity as the Secretary shall, by regulation, require to ensure that the recipient will comply with the requirements of this subsection during the entire period that begins upon selection of the recipient to receive such grant amounts and ending upon the conclusion of all activities under paragraph (8) that are engaged in by the recipient and funded with such grant amounts.
``(9) Limitations on use.--
``(A) Required amount for homeownership activities.--Of the aggregate amount allocated to a State or State designated entity under this subsection not more than 10 percent shall be used for activities under subparagraph (B) of paragraph
(7).
``(B) Deadline for commitment or use.--Grant amounts allocated to a State or State designated entity under this subsection shall be used or committed for use within 2 years of the date that such grant amounts are made available to the State or State designated entity. The Secretary shall recapture any such amounts not so used or committed for use and reallocate such amounts under this subsection in the first year after such recapture.
``(C) Use of returns.--The Secretary shall, by regulation, provide that any return on a loan or other investment of any grant amount used by a State or State designated entity to provide a loan under this subsection shall be treated, for purposes of availability to and use by the State or State designated entity, as a grant amount authorized under this subsection.
``(D) Prohibited uses.--The Secretary shall, by regulation--
``(i) set forth prohibited uses of grant amounts allocated under this subsection, which shall include use for--
``(I) political activities;
``(II) advocacy;
``(III) lobbying, whether directly or through other parties;
``(IV) counseling services;
``(V) travel expenses; and
``(VI) preparing or providing advice on tax returns;
``(ii) provide that, except as provided in clause (iii), grant amounts of a State or State designated entity may not be used for administrative, outreach, or other costs of--
``(I) the State or State designated entity; or
``(II) any other recipient of such grant amounts; and
``(iii) limit the amount of any grant amounts for a year that may be used by the State or State designated entity for administrative costs of carrying out the program required under this subsection, including home ownership counseling, to a percentage of such grant amounts of the State or State designated entity for such year, which may not exceed 10 percent.
``(E) Prohibition of consideration of use for meeting housing goals or duty to serve.--In determining compliance with the housing goals under this subpart and the duty to serve underserved markets under section 1335, the Director may not consider any grant amounts used under this section for eligible activities under paragraph (7). The Director shall give credit toward the achievement of such housing goals and such duty to serve underserved markets to purchases by the enterprises of mortgages for housing that receives funding from such grant amounts, but only to the extent that such purchases by the enterprises are funded other than with such grant amounts.
``(d) Reduction for Failure to Obtain Return of Misused Funds.--If in any year a State or State designated entity fails to obtain reimbursement or return of the full amount required under subsection (e)(1)(B) to be reimbursed or returned to the State or State designated entity during such year--
``(1) except as provided in paragraph (2)--
``(A) the amount of the grant for the State or State designated entity for the succeeding year, as determined pursuant to this section, shall be reduced by the amount by which such amounts required to be reimbursed or returned exceed the amount actually reimbursed or returned; and
``(B) the amount of the grant for the succeeding year for each other State or State designated entity whose grant is not reduced pursuant to subparagraph (A) shall be increased by the amount determined by applying the formula established pursuant to this section to the total amount of all reductions for all State or State designated entities for such year pursuant to subparagraph (A); or
``(2) in any case in which such failure to obtain reimbursement or return occurs during a year immediately preceding a year in which grants under this section will not be made, the State or State designated entity shall pay to the Secretary for reallocation among the other grantees an amount equal to the amount of the reduction for the entity that would otherwise apply under paragraph (1)(A).
``(e) Accountability of Recipients and Grantees.--
``(1) Recipients.--
``(A) Tracking of funds.--The Secretary shall--
``(i) require each State or State designated entity to develop and maintain a system to ensure that each recipient of assistance under this section uses such amounts in accordance with this section, the regulations issued under this section, and any requirements or conditions under which such amounts were provided; and
``(ii) establish minimum requirements for agreements, between the State or State designated entity and recipients, regarding assistance under this section, which shall include--
``(I) appropriate periodic financial and project reporting, record retention, and audit requirements for the duration of the assistance to the recipient to ensure compliance with the limitations and requirements of this section and the regulations under this section; and
``(II) any other requirements that the Secretary determines are necessary to ensure appropriate administration and compliance.
``(B) Misuse of funds.--
``(i) Reimbursement requirement.--If any recipient of assistance under this section is determined, in accordance with clause (ii), to have used any such amounts in a manner that is materially in violation of this section, the regulations issued under this section, or any requirements or conditions under which such amounts were provided, the State or State designated entity shall require that, within 12 months after the determination of such misuse, the recipient shall reimburse the State or State designated entity for such misused amounts and return to the State or State designated entity any such amounts that remain unused or uncommitted for use. The remedies under this clause are in addition to any other remedies that may be available under law.
``(ii) Determination.--A determination is made in accordance with this clause if the determination is made by the Secretary or made by the State or State designated entity, provided that--
``(I) the State or State designated entity provides notification of the determination to the Secretary for review, in the discretion of the Secretary, of the determination; and
``(II) the Secretary does not subsequently reverse the determination.
``(2) Grantees.--
``(A) Report.--
``(i) In general.--The Secretary shall require each State or State designated entity receiving grant amounts in any given year under this section to submit a report, for such year, to the Secretary that--
``(I) describes the activities funded under this section during such year with such grant amounts; and
``(II) the manner in which the State or State designated entity complied during such year with any allocation plan established pursuant to subsection (c).
``(ii) Public availability.--The Secretary shall make such reports pursuant to this subparagraph publicly available.
``(B) Misuse of funds.--If the Secretary determines, after reasonable notice and opportunity for hearing, that a State or State designated entity has failed to comply substantially with any provision of this section, and until the Secretary is satisfied that there is no longer any such failure to comply, the Secretary shall--
``(i) reduce the amount of assistance under this section to the State or State designated entity by an amount equal to the amount of grant amounts which were not used in accordance with this section;
``(ii) require the State or State designated entity to repay the Secretary any amount of the grant which was not used in accordance with this section;
``(iii) limit the availability of assistance under this section to the State or State designated entity to activities or recipients not affected by such failure to comply; or
``(iv) terminate any assistance under this section to the State or State designated entity.
``(f) Definitions.--For purposes of this section, the following definitions shall apply:
``(1) Extremely low-income renter household.--The term
`extremely low-income renter household' means a household whose income is not in excess of 30 percent of the area median income, with adjustments for smaller and larger families, as determined by the Secretary.
``(2) Recipient.--The term `recipient' means an individual or entity that receives assistance from a State or State designated entity from amounts made available to the State or State designated entity under this section.
``(3) Shortage of standard rental units both affordable and available to extremely low-income renter households.--
``(A) In general.--The term `shortage of standard rental units both affordable and available to extremely low-income renter households' means for any State or other geographical area the gap between--
``(i) the number of units with complete plumbing and kitchen facilities with a rent that is 30 percent or less of 30 percent of the adjusted area median income as determined by the Secretary that are occupied by extremely low-income renter households or are vacant for rent; and
``(ii) the number of extremely low-income renter households.
``(B) Rule of construction.--If the number of units described in subparagraph (A)(i) exceeds the number of extremely low-income households as described in subparagraph
(A)(ii), there is no shortage.
``(4) Shortage of standard rental units both affordable and available to very low-income renter households.--
``(A) In general.--The term `shortage of standard rental units both affordable and available to very low-income renter households' means for any State or other geographical area the gap between--
``(i) the number of units with complete plumbing and kitchen facilities with a rent that is 30 percent or less of 50 percent of the adjusted area median income as determined by the Secretary that are occupied by very low-income renter households or are vacant for rent; and
``(ii) the number of very low-income renter households.
``(B) Rule of construction.--If the number of units described in subparagraph (A)(i) exceeds the number of very low-income households as described in subparagraph (A)(ii), there is no shortage.
``(5) Very low-income family.--The term `very low-income family' has the meaning given such term in section 1303, except that such term includes any family that resides in a rural area that has an income that does not exceed the poverty line (as such term is defined in section 673(2) of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2)), including any revision required by such section) applicable to a family of the size involved.
``(6) Very low-income renter households.--The term `very low-income renter households' means a household whose income is in excess of 30 percent but not greater than 50 percent of the area median income, with adjustments for smaller and larger families, as determined by the Secretary.
``(g) Regulations.--
``(1) In general.--The Secretary shall issue regulations to carry out this section.
``(2) Required contents.--The regulations issued under this subsection shall include--
``(A) a requirement that the Secretary ensure that the use of grant amounts under this section by States or State designated entities is audited not less than annually to ensure compliance with this section;
``(B) authority for the Secretary to audit, provide for an audit, or otherwise verify a State or State designated entity's activities to ensure compliance with this section;
``(C) requirements for a process for application to, and selection by, each State or State designated entity for activities meeting the State or State designated entity's priority housing needs to be funded with grant amounts under this section, which shall provide for priority in funding to be based upon--
``(i) geographic diversity;
``(ii) ability to obligate amounts and undertake activities so funded in a timely manner;
``(iii) in the case of rental housing projects under subsection (c)(7)(A), the extent to which rents for units in the project funded are affordable, especially for extremely low-income families;
``(iv) in the case of rental housing projects under subsection (c)(7)(A), the extent of the duration for which such rents will remain affordable;
``(v) the extent to which the application makes use of other funding sources; and
``(vi) the merits of an applicant's proposed eligible activity;
``(D) requirements to ensure that grant amounts provided to a State or State designated entity under this section that are used for rental housing under subsection (c)(7)(A) are used only for the benefit of extremely low- and very low-income families; and
``(E) requirements and standards for establishment, by a State or State designated entity, for use of grant amounts in 2009 and subsequent years of performance goals, benchmarks, and timetables for the production, preservation, and rehabilitation of affordable rental and homeownership housing with such grant amounts.
``(h) Affordable Housing Trust Fund.--If, after the date of enactment of the Federal Housing Finance Regulatory Reform Act of 2008, in any year, there is enacted any provision of Federal law establishing an affordable housing trust fund other than under this title for use only for grants to provide affordable rental housing and affordable homeownership opportunities, and the subsequent year is a year referred to in subsection (c), the Secretary shall in such subsequent year and any remaining years referred to in subsection (c) transfer to such affordable housing trust fund the aggregate amount allocated pursuant to subsection (c) in such year. Notwithstanding any other provision of law, assistance provided using amounts transferred to such affordable housing trust fund pursuant to this subsection may not be used for any of the activities specified in clauses
(i) through (vi) of subsection (c)(9)(D).
``(i) Funding Accountability and Transparency.--Any grant under this section to a grantee by a State or State designated entity, any assistance provided to a recipient by a State or State designated entity, and any grant, award, or other assistance from an affordable housing trust fund referred to in subsection (h) shall be considered a Federal award for purposes of the Federal Funding Accountability and Transparency Act of 2006 (31 U.S.C. 6101 note). Upon the request of the Director of the Office of Management and Budget, the Secretary shall obtain and provide such information regarding any such grants, assistance, and awards as the Director of the Office of Management and Budget considers necessary to comply with the requirements of such Act, as applicable, pursuant to the preceding sentence.
``SEC. 1339. CAPITAL MAGNET FUND.
``(a) Establishment.--There is established in the Treasury of the United States a trust fund to be known as the Capital Magnet Fund, which shall be a special account within the Community Development Financial Institutions Fund.
``(b) Deposits to Trust Fund.--The Capital Magnet Fund shall consist of--
``(1) any amounts appropriated to the Fund pursuant to section 1337(a); and
``(2) any amounts as are or may be transferred or credited to such Fund under any other provisions of law.''.
``(c) Expenditures From Trust Fund.--Amounts in the Capital Magnet Fund shall be available to the Secretary of the Treasury to carry out a competitive grant program to attract private capital for and increase investment in--
``(1) the development, preservation, rehabilitation, or purchase of affordable housing for primarily extremely low-, very low-, and low-income families; and
``(2) economic development activities or community service facilities, such as day care centers, workforce development centers, and health care clinics, which in conjunction with affordable housing activities implement a concerted strategy to stabilize or revitalize a low-income area or underserved rural area.
``(d) Federal Assistance.--All assistance provided using amounts in the Capital Magnet Fund shall be considered to be Federal financial assistance.
``(e) Eligible Grantees.--A grant under this section may be made, pursuant to such requirements as the Secretary of the Treasury shall establish for experience and success in attracting private financing and carrying out the types of activities proposed under the application of the grantee, only to--
``(1) a Treasury certified community development financial institution; or
``(2) a nonprofit organization having as 1 of its principal purposes the development or management of affordable housing.
``(f) Eligible Uses.--Grant amounts awarded from the Capital Magnet Fund pursuant to this section may be used for the purposes described in paragraphs (1) and (2) of subsection (c), including for the following uses:
``(1) To provide loan loss reserves.
``(2) To capitalize a revolving loan fund.
``(3) To capitalize an affordable housing fund.
``(4) To capitalize a fund to support activities described in subsection (c)(2).
``(5) For risk-sharing loans.
``(g) Applications.--
``(1) In general.--The Secretary of the Treasury shall provide, in a competitive application process established by regulation, for eligible grantees under subsection (e) to submit applications for Capital Magnet Fund grants to the Secretary at such time and in such manner as the Secretary shall determine.
``(2) Content of application.--The application required under paragraph (1) shall include a detailed description of--
``(A) the types of affordable housing, economic, and community revitalization projects that support or sustain residents of an affordable housing project funded by a grant under this section for which such grant amounts would be used, including the proposed use of eligible grants as authorized under this section;
``(B) the types, sources, and amounts of other funding for such projects; and
``(C) the expected time frame of any grant used for such project.
``(h) Grant Limitation.--
``(1) In general.--Any 1 eligible grantee and its subsidiaries and affiliates may not be awarded more than 15 percent of the aggregate funds available for grants during any year from the Capital Magnet Fund.
``(2) Geographic diversity.--
``(A) Goal.--The Secretary of the Treasury shall seek to fund activities in geographically diverse areas of economic distress, including metropolitan and underserved rural areas in every State.
``(B) Diversity defined.--For purposes of this paragraph, geographic diversity includes those areas that meet objective criteria of economic distress developed by the Secretary of the Treasury, which may include--
``(i) the percentage of low-income families or the extent of poverty;
``(ii) the rate of unemployment or underemployment;
``(iii) extent of blight and disinvestment;
``(iv) projects that target extremely low-, very low-, and low-income families in or outside a designated economic distress area; or
``(v) any other criteria designated by the Secretary of the Treasury.
``(3) Leverage of funds.--Each grant from the Capital Magnet Fund awarded under this section shall be reasonably expected to result in eligible housing, or economic and community development projects that support or sustain an affordable housing project funded by a grant under this section whose aggregate costs total at least 10 times the grant amount.
``(4) Commitment for use deadline.--Amounts made available for grants under this section shall be committed for use within 2 years of the date of such allocation. The Secretary of the Treasury shall recapture into the Capital Magnet Fund any amounts not so used or committed for use and allocate such amounts in the first year after such recapture.
``(5) Lobbying restrictions.--No assistance or amounts made available under this section may be expended by an eligible grantee to pay any person to influence or attempt to influence any agency, elected official, officer or employee of a State or local government in connection with the making, award, extension, continuation, renewal, amendment, or modification of any State or local government contract, grant, loan, or cooperative agreement as such terms are defined in section 1352 of title 31, United States Code.
``(6) Prohibition of consideration of use for meeting housing goals or duty to serve.--In determining the compliance of the enterprises with the housing goals under this section and the duty to serve underserved markets under section 1335, the Director of the Federal Housing Finance Agency may not consider any Capital Magnet Fund amounts used under this section for eligible activities under subsection
(f). The Director of the Federal Housing Finance Agency shall give credit toward the achievement of such housing goals and such duty to serve underserved markets to purchases by the enterprises of mortgages for housing that receives funding from Capital Magnet Fund grant amounts, but only to the extent that such purchases by the enterprises are funded other than with such grant amounts.
``(7) Accountability of recipients and grantees.--
``(A) Tracking of funds.--The Secretary of the Treasury shall--
``(i) require each grantee to develop and maintain a system to ensure that each recipient of assistance from the Capital Magnet Fund uses such amounts in accordance with this section, the regulations issued under this section, and any requirements or conditions under which such amounts were provided; and
``(ii) establish minimum requirements for agreements, between the grantee and the Capital Magnet Fund, regarding assistance from the Capital Magnet Fund, which shall include--
``(I) appropriate periodic financial and project reporting, record retention, and audit requirements for the duration of the grant to the recipient to ensure compliance with the limitations and requirements of this section and the regulations under this section; and
``(II) any other requirements that the Secretary determines are necessary to ensure appropriate grant administration and compliance.
``(B) Misuse of funds.--If the Secretary of the Treasury determines, after reasonable notice and opportunity for hearing, that a grantee has failed to comply substantially with any provision of this section and until the Secretary is satisfied that there is no longer any such failure to comply, the Secretary shall--
``(i) reduce the amount of assistance under this section to the grantee by an amount equal to the amount of Capital Magnet Fund grant amounts which were not used in accordance with this section;
``(ii) require the grantee to repay the Secretary any amount of the Capital Magnet Fund grant amounts which were not used in accordance with this section;
``(iii) limit the availability of assistance under this section to the grantee to activities or recipients not affected by such failure to comply; or
``(iv) terminate any assistance under this section to the grantee.
``(i) Periodic Reports.--
``(1) In general.--The Secretary of the Treasury shall submit a report, on a periodic basis, to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives describing the activities to be funded under this section.
``(2) Reports available to public.--The Secretary of the Treasury shall make the reports required under paragraph (1) publicly available.
``(j) Regulations.--
``(1) In general.--The Secretary of the Treasury shall issue regulations to carry out this section.
``(2) Required contents.--The regulations issued under this subsection shall include--
``(A) authority for the Secretary to audit, provide for an audit, or otherwise verify an enterprise's activities, to ensure compliance with this section;
``(B) a requirement that the Secretary ensure that the allocation of each enterprise is audited not less than annually to ensure compliance with this section; and
``(C) requirements for a process for application to, and selection by, the Secretary for activities to be funded with amounts from the Capital Magnet Fund, which shall provide that--
``(i) funds be fairly distributed to urban, suburban, and rural areas; and
``(ii) selection shall be based upon specific criteria, including a prioritization of funding based upon--
``(I) the ability to use such funds to generate additional investments;
``(II) affordable housing need (taking into account the distinct needs of different regions of the country); and
``(III) ability to obligate amounts and undertake activities so funded in a timely manner.''. SEC. 1132. FINANCIAL EDUCATION AND COUNSELING.
(a) Goals.--Financial education and counseling under this section shall have the goal of--
(1) increasing the financial knowledge and decision making capabilities of prospective homebuyers;
(2) assisting prospective homebuyers to develop monthly budgets, build personal savings, finance or plan for major purchases, reduce their debt, improve their financial stability, and set and reach their financial goals;
(3) helping prospective homebuyers to improve their credit scores by understanding the relationship between their credit histories and their credit scores; and
(4) educating prospective homebuyers about the options available to build savings for short- and long-term goals.
(b) Grants.--
(1) In general.--The Secretary of the Treasury (in this section referred to as the ``Secretary'') shall make grants to eligible organizations to enable such organizations to provide a range of financial education and counseling services to prospective homebuyers.
(2) Selection.--The Secretary shall select eligible organizations to receive assistance under this section based on their experience and ability to provide financial education and counseling services that result in documented positive behavioral changes.
(c) Eligible Organizations.--
(1) In general.--For purposes of this section, the term
``eligible organization'' means an organization that is--
(A) certified in accordance with section 106(e)(1) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e)); or
(B) certified by the Office of Financial Education of the Department of the Treasury for purposes of this section, in accordance with paragraph (2).
(2) OFE certification.--To be certified by the Office of Financial Education for purposes of this section, an eligible organization shall be--
(A) a housing counseling agency certified by the Secretary of Housing and Urban Development under section 106(e) of the Housing and Urban Development Act of 1968;
(B) a State, local, or tribal government agency;
(C) a community development financial institution (as defined in section 103(5) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702(5)) or a credit union; or
(D) any collaborative effort of entities described in any of subparagraphs (A) through (C).
(d) Authority for Pilot Projects.--
(1) In general.--The Secretary of the Treasury shall authorize not more than 5 pilot project grants to eligible organizations under subsection (c) in order to--
(A) carry out the services under this section; and
(B) provide such other services that will improve the financial stability and economic condition of low- and moderate-income and low-wealth individuals.
(2) Goal.--The goal of the pilot project grants under this subsection is to--
(A) identify successful methods resulting in positive behavioral change for financial empowerment; and
(B) establish program models for organizations to carry out effective counseling services.
(e) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section and for the provision of additional financial educational services.
(f) Study and Report on Effectiveness and Impact.--
(1) In general.--The Comptroller General of the United States shall conduct a study on the effectiveness and impact of the grant program established under this section. Not later than 3 years after the date of enactment of this Act, the Comptroller General shall submit a report on the results of such study to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.
(2) Content of study.--The study required under paragraph
(1) shall include an evaluation of the following:
(A) The effectiveness of the grant program established under this section in improving the financial situation of homeowners and prospective homebuyers served by the grant program.
(B) The extent to which financial education and counseling services have resulted in positive behavioral changes.
(C) The effectiveness and quality of the eligible organizations providing financial education and counseling services under the grant program.
(g) Regulations.--The Secretary is authorized to promulgate such regulations as may be necessary to implement and administer the grant program authorized by this section.
SEC. 1133. TRANSFER AND RIGHTS OF CERTAIN HUD EMPLOYEES.
(a) Transfer.--Each employee of the Department of Housing and Urban Development whose position responsibilities primarily involve the establishment and enforcement of the housing goals under subpart B of part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4561 et seq.) shall be transferred to the Federal Housing Finance Agency for employment, not later than the effective date of the Federal Housing Finance Regulatory Reform Act of 2008, and such transfer shall be deemed a transfer of function for purposes of section 3503 of title 5, United States Code.
(b) Guaranteed Positions.--
(1) In general.--Each employee transferred under subsection
(a) shall be guaranteed a position with the same status, tenure, grade, and pay as that held on the day immediately preceding the transfer.
(2) No involuntary separation or reduction.--An employee transferred under subsection (a) holding a permanent position on the day immediately preceding the transfer may not be involuntarily separated or reduced in grade or compensation during the 12-month period beginning on the date of transfer, except for cause, or, in the case of a temporary employee, separated in accordance with the terms of the appointment of the employee.
(c) Appointment Authority for Excepted and Senior Executive Service Employees.--
(1) In general.--In the case of an employee occupying a position in the excepted service or the Senior Executive Service, any appointment authority established under law or by regulations of the Office of Personnel Management for filling such position shall be transferred, subject to paragraph (2).
(2) Decline of transfer.--The Director may decline a transfer of authority under paragraph (1) to the extent that such authority relates to--
(A) a position excepted from the competitive service because of its confidential, policymaking, policy-determining, or policy-advocating character; or
(B) a noncareer position in the Senior Executive Service
(within the meaning of section 3132(a)(7) of title 5, United States Code).
(d) Reorganization.--If the Director determines, after the end of the 1-year period beginning on the effective date of the Federal Housing Finance Regulatory Reform Act of 2008, that a reorganization of the combined workforce is required, that reorganization shall be deemed a major reorganization for purposes of affording affected employee retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code.
(e) Employee Benefit Programs.--
(1) In general.--Any employee described under subsection
(a) accepting employment with the Agency as a result of a transfer under subsection (a) may retain, for 12 months after the date on which such transfer occurs, membership in any employee benefit program of the Agency or the Department of Housing and Urban Development, as applicable, including insurance, to which such employee belongs on such effective date, if--
(A) the employee does not elect to give up the benefit or membership in the program; and
(B) the benefit or program is continued by the Director of the Federal Housing Finance Agency.
(2) Cost differential.--
(A) In general.--The difference in the costs between the benefits which would have been provided by the Department of Housing and Urban Development and those provided by this section shall be paid by the Director.
(B) Health insurance.--If any employee elects to give up membership in a health insurance program or the health insurance program is not continued by the Director, the employee shall be permitted to select an alternate Federal health insurance program not later than 30 days after the date of such election or notice, without regard to any other regularly scheduled open season.
Subtitle C--Prompt Corrective Action
SEC. 1141. CRITICAL CAPITAL LEVELS.
(a) In General.--Section 1363 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4613) is amended--
(1) by striking ``For'' and inserting ``(a) Enterprises.--For''; and
(2) by adding at the end the following new subsection:
``(b) Federal Home Loan Banks.--
``(1) In general.--For purposes of this subtitle, the critical capital level for each Federal Home Loan Bank shall be such amount of capital as the Director shall, by regulation, require.
``(2) Consideration of other critical capital levels.--In establishing the critical capital level under paragraph (1) for the Federal Home Loan Banks, the Director shall take due consideration of the critical capital level established under subsection (a) for the enterprises, with such modifications as the Director determines to be appropriate to reflect the difference in operations between the banks and the enterprises.''.
(b) Regulations.--Not later than the expiration of the 180-day period beginning on the date of enactment of this Act, the Director of the Federal Housing Finance Agency shall issue regulations pursuant to section 1363(b) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (as added by this section) establishing the critical capital level under such section.
SEC. 1142. CAPITAL CLASSIFICATIONS.
(a) In General.--Section 1364 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4614) is amended--
(1) in the heading for subsection (a) by striking ``In General'' and inserting ``Enterprises'';
(2) in subsection (c)--
(A) by striking ``subsection (b)'' and inserting
``subsection (c)'';
(B) by striking ``enterprises'' and inserting ``regulated entities''; and
(C) by striking the last sentence;
(3) by redesignating subsections (c) (as so amended by paragraph (2) of this subsection) and (d) as subsections (d) and (f), respectively;
(4) by striking subsection (b) and inserting the following:
``(b) Federal Home Loan Banks.--
``(1) Establishment and criteria.--For purposes of this subtitle, the Director shall, by regulation--
``(A) establish the capital classifications specified under paragraph (2) for the Federal Home Loan Banks;
``(B) establish criteria for each such capital classification based on the amount and types of capital held by a bank and the risk-based, minimum, and critical capital levels for the banks and taking due consideration of the capital classifications established under subsection (a) for the enterprises, with such modifications as the Director determines to be appropriate to reflect the difference in operations between the banks and the enterprises; and
``(C) shall classify the Federal Home Loan Banks according to such capital classifications.
``(2) Classifications.--The capital classifications specified under this paragraph are--
``(A) adequately capitalized;
``(B) undercapitalized;
``(C) significantly undercapitalized; and
``(D) critically undercapitalized.
``(c) Discretionary Classification.--
``(1) Grounds for reclassification.--The Director may reclassify a regulated entity under paragraph (2) if--
``(A) at any time, the Director determines in writing that the regulated entity is engaging in conduct that could result in a rapid depletion of core or total capital or the value of collateral pledged as security has decreased significantly or that the value of the property subject to any mortgage held by the regulated entity (or securitized in the case of an enterprise) has decreased significantly;
``(B) after notice and an opportunity for hearing, the Director determines that the regulated entity is in an unsafe or unsound condition; or
``(C) pursuant to section 1371(b), the Director deems the regulated entity to be engaging in an unsafe or unsound practice.
``(2) Reclassification.--In addition to any other action authorized under this title, including the reclassification of a regulated entity for any reason not specified in this subsection, if the Director takes any action described in paragraph (1), the Director may classify a regulated entity--
``(A) as undercapitalized, if the regulated entity is otherwise classified as adequately capitalized;
``(B) as significantly undercapitalized, if the regulated entity is otherwise classified as undercapitalized; and
``(C) as critically undercapitalized, if the regulated entity is otherwise classified as significantly undercapitalized.''; and
(5) by inserting after subsection (d) (as so redesignated by paragraph (3) of this subsection), the following new subsection:
``(e) Restriction on Capital Distributions.--
``(1) In general.--A regulated entity shall make no capital distribution if, after making the distribution, the regulated entity would be undercapitalized.
``(2) Exception.--Notwithstanding paragraph (1), the Director may permit a regulated entity, to the extent appropriate or applicable, to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition--
``(A) is made in connection with the issuance of additional shares or obligations of the regulated entity in at least an equivalent amount; and
``(B) will reduce the financial obligations of the regulated entity or otherwise improve the financial condition of the entity.''.
(b) Regulations.--Not later than the expiration of the 180-day period beginning on the date of enactment of this Act, the Director of the Federal Housing Finance Agency shall issue regulations to carry out section 1364(b) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (as added by this section), relating to capital classifications for the Federal Home Loan Banks.
SEC. 1143. SUPERVISORY ACTIONS APPLICABLE TO UNDERCAPITALIZED
REGULATED ENTITIES.
Section 1365 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4615) is amended--
(1) by striking ``the enterprise'' each place that term appears and inserting ``the regulated entity'';
(2) by striking ``An enterprise'' each place that term appears and inserting ``A regulated entity'';
(3) by striking ``an enterprise'' each place that term appears and inserting ``a regulated entity'';
(4) in subsection (a)--
(A) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively;
(B) by inserting before paragraph (2), as redesignated, the following:
``(1) Required monitoring.--The Director shall--
``(A) closely monitor the condition of any undercapitalized regulated entity;
``(B) closely monitor compliance with the capital restoration plan, restrictions, and requirements imposed on an undercapitalized regulated entity under this section; and
``(C) periodically review the plan, restrictions, and requirements applicable to an undercapitalized regulated entity to determine whether the plan, restrictions, and requirements are achieving the purpose of this section.''; and
(C) by adding at the end the following:
``(4) Restriction of asset growth.--An undercapitalized regulated entity shall not permit its average total assets during any calendar quarter to exceed its average total assets during the preceding calendar quarter, unless--
``(A) the Director has accepted the capital restoration plan of the regulated entity;
``(B) any increase in total assets is consistent with the capital restoration plan; and
``(C) the ratio of tangible equity to assets of the regulated entity increases during the calendar quarter at a rate sufficient to enable the regulated entity to become adequately capitalized within a reasonable time.
``(5) Prior approval of acquisitions and new activities.--An undercapitalized regulated entity shall not, directly or indirectly, acquire any interest in any entity or engage in any new activity, unless--
``(A) the Director has accepted the capital restoration plan of the regulated entity, the regulated entity is implementing the plan, and the Director determines that the proposed action is consistent with and will further the achievement of the plan; or
``(B) the Director determines that the proposed action will further the purpose of this subtitle.'';
(5) in subsection (b)--
(A) in the subsection heading, by striking
``Discretionary'';
(B) in the matter preceding paragraph (1), by striking
``may'' and inserting ``shall''; and
(C) in paragraph (2)--
(i) by striking ``make, in good faith, reasonable efforts necessary to''; and
(ii) by striking the period at the end and inserting ``in any material respect.''; and
(6) by striking subsection (c) and inserting the following:
``(c) Other Discretionary Safeguards.--The Director may take, with respect to an undercapitalized regulated entity, any of the actions authorized to be taken under section 1366 with respect to a significantly undercapitalized regulated entity, if the Director determines that such actions are necessary to carry out the purpose of this subtitle.''.
SEC. 1144. SUPERVISORY ACTIONS APPLICABLE TO SIGNIFICANTLY
UNDERCAPITALIZED REGULATED ENTITIES.
Section 1366 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4616) is amended--
(1) in subsection (a)(2), by striking ``undercapitalized enterprise'' and inserting ``undercapitalized'';
(2) by striking ``the enterprise'' each place that term appears and inserting ``the regulated entity'';
(3) by striking ``An enterprise'' each place that term appears and inserting ``A regulated entity'';
(4) by striking ``an enterprise'' each place that term appears and inserting ``a regulated entity'';
(5) in subsection (b)--
(A) in the subsection heading, by striking ``Discretionary Supervisory'' and inserting ``Specific'';
(B) in the matter preceding paragraph (1), by striking
``may, at any time, take any'' and inserting ``shall carry out this section by taking, at any time, 1 or more'';
(C) by striking paragraph (6);
(D) by redesignating paragraph (5) as paragraph (6);
(E) by inserting after paragraph (4) the following:
``(5) Improvement of management.--Take 1 or more of the following actions:
``(A) New election of board.--Order a new election for the board of directors of the regulated entity.
``(B) Dismissal of directors or executive officers.--Require the regulated entity to dismiss from office any director or executive officer who had held office for more than 180 days immediately before the date on which the regulated entity became undercapitalized. Dismissal under this subparagraph shall not be construed to be a removal pursuant to the enforcement powers of the Director under section 1377.
``(C) Employ qualified executive officers.--Require the regulated entity to employ qualified executive officers (who, if the Director so specifies, shall be subject to approval by the Director).''; and
(F) by adding at the end the following:
``(7) Other action.--Require the regulated entity to take any other action that the Director determines will better carry out the purpose of this section than any of the other actions specified in this subsection.''; and
(6) by striking subsection (c) and inserting the following:
``(c) Restriction on Compensation of Executive Officers.--A regulated entity that is classified as significantly undercapitalized in accordance with section 1364 may not, without prior written approval by the Director--
``(1) pay any bonus to any executive officer; or
``(2) provide compensation to any executive officer at a rate exceeding the average rate of compensation of that officer (excluding bonuses, stock options, and profit sharing) during the 12 calendar months preceding the calendar month in which the regulated entity became significantly undercapitalized.''.
SEC. 1145. AUTHORITY OVER CRITICALLY UNDERCAPITALIZED
REGULATED ENTITIES.
(a) In General.--Section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4617) is amended to read as follows:
``SEC. 1367. AUTHORITY OVER CRITICALLY UNDERCAPITALIZED
REGULATED ENTITIES.
``(a) Appointment of the Agency as Conservator or Receiver.--
``(1) In general.--Notwithstanding any other provision of Federal or State law, the Director may appoint the Agency as conservator or receiver for a regulated entity in the manner provided under paragraph (2) or (4). All references to the conservator or receiver under this section are references to the Agency acting as conservator or receiver.
``(2) Discretionary appointment.--The Agency may, at the discretion of the Director, be appointed conservator or receiver for the purpose of reorganizing, rehabilitating, or winding up the affairs of a regulated entity.
``(3) Grounds for discretionary appointment of conservator or receiver.--The grounds for appointing conservator or receiver for any regulated entity under paragraph (2) are as follows:
``(A) Substantial dissipation.--Substantial dissipation of assets or earnings due to--
``(i) any violation of any provision of Federal or State law; or
``(ii) any unsafe or unsound practice.
``(B) Unsafe or unsound condition.--An unsafe or unsound condition to transact business.
``(C) Cease and desist orders.--Any willful violation of a cease and desist order that has become final.
``(D) Concealment.--Any concealment of the books, papers, records, or assets of the regulated entity, or any refusal to submit the books, papers, records, or affairs of the regulated entity, for inspection to any examiner or to any lawful agent of the Director.
``(E) Inability to meet obligations.--The regulated entity is likely to be unable to pay its obligations or meet the demands of its creditors in the normal course of business.
``(F) Losses.--The regulated entity has incurred or is likely to incur losses that will deplete all or substantially all of its capital, and there is no reasonable prospect for the regulated entity to become adequately capitalized (as defined in section 1364(a)(1)).
``(G) Violations of law.--Any violation of any law or regulation, or any unsafe or unsound practice or condition that is likely to--
``(i) cause insolvency or substantial dissipation of assets or earnings; or
``(ii) weaken the condition of the regulated entity.
``(H) Consent.--The regulated entity, by resolution of its board of directors or its shareholders or members, consents to the appointment.
``(I) Undercapitalization.--The regulated entity is undercapitalized or significantly undercapitalized (as defined in section 1364(a)(3)), and--
``(i) has no reasonable prospect of becoming adequately capitalized;
``(ii) fails to become adequately capitalized, as required by--
``(I) section 1365(a)(1) with respect to a regulated entity; or
``(II) section 1366(a)(1) with respect to a significantly undercapitalized regulated entity;
``(iii) fails to submit a capital restoration plan acceptable to the Agency within the time prescribed under section 1369C; or
``(iv) materially fails to implement a capital restoration plan submitted and accepted under section 1369C.
``(J) Critical undercapitalization.--The regulated entity is critically undercapitalized, as defined in section 1364(a)(4).
``(K) Money laundering.--The Attorney General notifies the Director in writing that the regulated entity has been found guilty of a criminal offense under section 1956 or 1957 of title 18, United States Code, or section 5322 or 5324 of title 31, United States Code.
``(4) Mandatory receivership.--
``(A) In general.--The Director shall appoint the Agency as receiver for a regulated entity if the Director determines, in writing, that--
``(i) the assets of the regulated entity are, and during the preceding 60 calendar days have been, less than the obligations of the regulated entity to its creditors and others; or
``(ii) the regulated entity is not, and during the preceding 60 calendar days has not been, generally paying the debts of the regulated entity (other than debts that are the subject of a bona fide dispute) as such debts become due.
``(B) Periodic determination required for critically undercapitalized regulated entity.--If a regulated entity is critically undercapitalized, the Director shall make a determination, in writing, as to whether the regulated entity meets the criteria specified in clause (i) or (ii) of subparagraph (A)--
``(i) not later than 30 calendar days after the regulated entity initially becomes critically undercapitalized; and
``(ii) at least once during each succeeding 30-calendar day period.
``(C) Determination not required if receivership already in place.--Subparagraph (B) does not apply with respect to a regulated entity in any period during which the Agency serves as receiver for the regulated entity.
``(D) Receivership terminates conservatorship.--The appointment of the Agency as receiver of a regulated entity under this section shall immediately terminate any conservatorship established for the regulated entity under this title.
``(5) Judicial review.--
``(A) In general.--If the Agency is appointed conservator or receiver under this section, the regulated entity may, within 30 days of such appointment, bring an action in the United States district court for the judicial district in which the home office of such regulated entity is located, or in the United States District Court for the District of Columbia, for an order requiring the Agency to remove itself as conservator or receiver.
``(B) Review.--Upon the filing of an action under subparagraph (A), the court shall, upon the merits, dismiss such action or direct the Agency to remove itself as such conservator or receiver.
``(6) Directors not liable for acquiescing in appointment of conservator or receiver.--The members of the board of directors of a regulated entity shall not be liable to the shareholders or creditors of the regulated entity for acquiescing in or consenting in good faith to the appointment of the Agency as conservator or receiver for that regulated entity.
``(7) Agency not subject to any other federal agency.--When acting as conservator or receiver, the Agency shall not be subject to the direction or supervision of any other agency of the United States or any State in the exercise of the rights, powers, and privileges of the Agency.
``(b) Powers and Duties of the Agency as Conservator or Receiver.--
``(1) Rulemaking authority of the agency.--The Agency may prescribe such regulations as the Agency determines to be appropriate regarding the conduct of conservatorships or receiverships.
``(2) General powers.--
``(A) Successor to regulated entity.--The Agency shall, as conservator or receiver, and by operation of law, immediately succeed to--
``(i) all rights, titles, powers, and privileges of the regulated entity, and of any stockholder, officer, or director of such regulated entity with respect to the regulated entity and the assets of the regulated entity; and
``(ii) title to the books, records, and assets of any other legal custodian of such regulated entity.
``(B) Operate the regulated entity.--The Agency may, as conservator or receiver--
``(i) take over the assets of and operate the regulated entity with all the powers of the shareholders, the directors, and the officers of the regulated entity and conduct all business of the regulated entity;
``(ii) collect all obligations and money due the regulated entity;
``(iii) perform all functions of the regulated entity in the name of the regulated entity which are consistent with the appointment as conservator or receiver;
``(iv) preserve and conserve the assets and property of the regulated entity; and
``(v) provide by contract for assistance in fulfilling any function, activity, action, or duty of the Agency as conservator or receiver.
``(C) Functions of officers, directors, and shareholders of a regulated entity.--The Agency may, by regulation or order, provide for the exercise of any function by any stockholder, director, or officer of any regulated entity for which the Agency has been named conservator or receiver.
``(D) Powers as conservator.--The Agency may, as conservator, take such action as may be--
``(i) necessary to put the regulated entity in a sound and solvent condition; and
``(ii) appropriate to carry on the business of the regulated entity and preserve and conserve the assets and property of the regulated entity.
``(E) Additional powers as receiver.--In any case in which the Agency is acting as receiver, the Agency shall place the regulated entity in liquidation and proceed to realize upon the assets of the regulated entity in such manner as the Agency deems appropriate, including through the sale of assets, the transfer of assets to a limited-life regulated entity established under subsection (i), or the exercise of any other rights or privileges granted to the Agency under this paragraph.
``(F) Organization of new enterprise.--The Agency shall, as receiver for an enterprise, organize a successor enterprise that will operate pursuant to subsection (i).
``(G) Transfer or sale of assets and liabilities.--The Agency may, as conservator or receiver, transfer or sell any asset or liability of the regulated entity in default, and may do so without any approval, assignment, or consent with respect to such transfer or sale.
``(H) Payment of valid obligations.--The Agency, as conservator or receiver, shall, to the extent of proceeds realized from the performance of contracts or sale of the assets of a regulated entity, pay all valid obligations of the regulated entity that are due and payable at the time of the appointment of the Agency as conservator or receiver, in accordance with the prescriptions and limitations of this section.
``(I) Subpoena authority.--
``(i) In general.--
``(I) Agency authority.--The Agency may, as conservator or receiver, and for purposes of carrying out any power, authority, or duty with respect to a regulated entity (including determining any claim against the regulated entity and determining and realizing upon any asset of any person in the course of collecting money due the regulated entity), exercise any power established under section 1348.
``(II) Applicability of law.--The provisions of section 1348 shall apply with respect to the exercise of any power under this subparagraph, in the same manner as such provisions apply under that section.
``(ii) Subpoena.--A subpoena or subpoena duces tecum may be issued under clause (i) only by, or with the written approval of, the Director, or the designee of the Director.
``(iii) Rule of construction.--This subsection shall not be construed to limit any rights that the Agency, in any capacity, might otherwise have under section 1317 or 1379B.
``(J) Incidental powers.--The Agency may, as conservator or receiver--
``(i) exercise all powers and authorities specifically granted to conservators or receivers, respectively, under this section, and such incidental powers as shall be necessary to carry out such powers; and
``(ii) take any action authorized by this section, which the Agency determines is in the best interests of the regulated entity or the Agency.
``(K) Other provisions.--
``(i) Shareholders and creditors of failed regulated entity.--Notwithstanding any other provision of law, the appointment of the Agency as receiver for a regulated entity pursuant to paragraph (2) or (4) of subsection (a) and its succession, by operation of law, to the rights, titles, powers, and privileges described in subsection (b)(2)(A) shall terminate all rights and claims that the stockholders and creditors of the regulated entity may have against the assets or charter of the regulated entity or the Agency arising as a result of their status as stockholders or creditors, except for their right to payment, resolution, or other satisfaction of their claims, as permitted under subsections (b)(9), (c), and (e).
``(ii) Assets of regulated entity.--Notwithstanding any other provision of law, for purposes of this section, the charter of a regulated entity shall not be considered an asset of the regulated entity.
``(3) Authority of receiver to determine claims.--
``(A) In general.--The Agency may, as receiver, determine claims in accordance with the requirements of this subsection and any regulations prescribed under paragraph (4).
``(B) Notice requirements.--The receiver, in any case involving the liquidation or winding up of the affairs of a closed regulated entity, shall--
``(i) promptly publish a notice to the creditors of the regulated entity to present their claims, together with proof, to the receiver by a date specified in the notice which shall be not less than 90 days after the date of publication of such notice; and
``(ii) republish such notice approximately 1 month and 2 months, respectively, after the date of publication under clause (i).
``(C) Mailing required.--The receiver shall mail a notice similar to the notice published under subparagraph (B)(i) at the time of such publication to any creditor shown on the books of the regulated entity--
``(i) at the last address of the creditor appearing in such books; or
``(ii) upon discovery of the name and address of a claimant not appearing on the books of the regulated entity, within 30 days after the discovery of such name and address.
``(4) Rulemaking authority relating to determination of claims.--Subject to subsection (c), the Director may prescribe regulations regarding the allowance or disallowance of claims by the receiver and providing for administrative determination of claims and review of such determination.
``(5) Procedures for determination of claims.--
``(A) Determination period.--
``(i) In general.--Before the end of the 180-day period beginning on the date on which any claim against a regulated entity is filed with the Agency as receiver, the Agency shall determine whether to allow or disallow the claim and shall notify the claimant of any determination with respect to such claim.
``(ii) Extension of time.--The period described in clause
(i) may be extended by a written agreement between the claimant and the Agency.
``(iii) Mailing of notice sufficient.--The requirements of clause (i) shall be deemed to be satisfied if the notice of any determination with respect to any claim is mailed to the last address of the claimant which appears--
``(I) on the books of the regulated entity;
``(II) in the claim filed by the claimant; or
``(III) in documents submitted in proof of the claim.
``(iv) Contents of notice of disallowance.--If any claim filed under clause (i) is disallowed, the notice to the claimant shall contain--
``(I) a statement of each reason for the disallowance; and
``(II) the procedures available for obtaining agency review of the determination to disallow the claim or judicial determination of the claim.
``(B) Allowance of proven claim.--The receiver shall allow any claim received on or before the date specified in the notice published under paragraph (3)(B)(i) by the receiver from any claimant which is proved to the satisfaction of the receiver.
``(C) Disallowance of claims filed after filing period.--Claims filed after the date specified in the notice published under paragraph (3)(B)(i), or the date specified under paragraph (3)(C), shall be disallowed and such disallowance shall be final.
``(D) Authority to disallow claims.--
``(i) In general.--The receiver may disallow any portion of any claim by a creditor or claim of security, preference, or priority which is not proved to the satisfaction of the receiver.
``(ii) Payments to less than fully secured creditors.--In the case of a claim of a creditor against a regulated entity which is secured by any property or other asset of such regulated entity, the receiver--
``(I) may treat the portion of such claim which exceeds an amount equal to the fair market value of such property or other asset as an unsecured claim against the regulated entity; and
``(II) may not make any payment with respect to such unsecured portion of the claim, other than in connection with the disposition of all claims of unsecured creditors of the regulated entity.
``(iii) Exceptions.--No provision of this paragraph shall apply with respect to--
``(I) any extension of credit from any Federal Reserve Bank, Federal Home Loan Bank, or the United States Treasury; or
``(II) any security interest in the assets of the regulated entity securing any such extension of credit.
``(E) No judicial review of determination pursuant to subparagraph (d).--No court may review the determination of the Agency under subparagraph (D) to disallow a claim.
``(F) Legal effect of filing.--
``(i) Statute of limitation tolled.--For purposes of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commencement of an action.
``(ii) No prejudice to other actions.--Subject to paragraph
(10), the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action which was filed before the date of the appointment of the receiver, subject to the determination of claims by the receiver.
``(6) Provision for judicial determination of claims.--
``(A) In general.--The claimant may file suit on a claim
(or continue an action commenced before the appointment of the receiver) in the district or territorial court of the United States for the district within which the principal place of business of the regulated entity is located or the United States District Court for the District of Columbia
(and such court shall have jurisdiction to hear such claim), before the end of the 60-day period beginning on the earlier of--
``(i) the end of the period described in paragraph
(5)(A)(i) with respect to any claim against a regulated entity for which the Agency is receiver; or
``(ii) the date of any notice of disallowance of such claim pursuant to paragraph (5)(A)(i).
``(B) Statute of limitations.--A claim shall be deemed to be disallowed (other than any portion of such claim which was allowed by the receiver), and such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim, if the claimant fails, before the end of the 60-day period described under subparagraph (A), to file suit on such claim (or continue an action commenced before the appointment of the receiver).
``(7) Review of claims.--
``(A) Other review procedures.--
``(i) In general.--The Agency shall establish such alternative dispute resolution processes as may be appropriate for the resolution of claims filed under paragraph (5)(A)(i).
``(ii) Criteria.--In establishing alternative dispute resolution processes, the Agency shall strive for procedures which are expeditious, fair, independent, and low cost.
``(iii) Voluntary binding or nonbinding procedures.--The Agency may establish both binding and nonbinding processes under this subparagraph, which may be conducted by any government or private party. All parties, including the claimant and the Agency, must agree to the use of the process in a particular case.
``(B) Consideration of incentives.--The Agency shall seek to develop incentives for claimants to participate in the alternative dispute resolution process.
``(8) Expedited determination of claims.--
``(A) Establishment required.--The Agency shall establish a procedure for expedited relief outside of the routine claims process established under paragraph (5) for claimants who--
``(i) allege the existence of legally valid and enforceable or perfected security interests in assets of any regulated entity for which the Agency has been appointed receiver; and
``(ii) allege that irreparable injury will occur if the routine claims procedure is followed.
``(B) Determination period.--Before the end of the 90-day period beginning on the date on which any claim is filed in accordance with the procedures established under subparagraph
(A), the Director shall--
``(i) determine--
``(I) whether to allow or disallow such claim; or
``(II) whether such claim should be determined pursuant to the procedures established under paragraph (5); and
``(ii) notify the claimant of the determination, and if the claim is disallowed, provide a statement of each reason for the disallowance and the procedure for obtaining agency review or judicial determination.
``(C) Period for filing or renewing suit.--Any claimant who files a request for expedited relief shall be permitted to file a suit, or to continue a suit filed before the date of appointment of the receiver, seeking a determination of the rights of the claimant with respect to such security interest after the earlier of--
``(i) the end of the 90-day period beginning on the date of the filing of a request for expedited relief; or
``(ii) the date on which the Agency denies the claim.
``(D) Statute of limitations.--If an action described under subparagraph (C) is not filed, or the motion to renew a previously filed suit is not made, before the end of the 30-day period beginning on the date on which such action or motion may be filed under subparagraph (B), the claim shall be deemed to be disallowed as of the end of such period
(other than any portion of such claim which was allowed by the receiver), such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim.
``(E) Legal effect of filing.--
``(i) Statute of limitation tolled.--For purposes of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commencement of an action.
``(ii) No prejudice to other actions.--Subject to paragraph
(10), the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action that was filed before the appointment of the receiver, subject to the determination of claims by the receiver.
``(9) Payment of claims.--
``(A) In general.--The receiver may, in the discretion of the receiver, and to the extent that funds are available from the assets of the regulated entity, pay creditor claims, in such manner and amounts as are authorized under this section, which are--
``(i) allowed by the receiver;
``(ii) approved by the Agency pursuant to a final determination pursuant to paragraph (7) or (8); or
``(iii) determined by the final judgment of any court of competent jurisdiction.
``(B) Agreements against the interest of the agency.--No agreement that tends to diminish or defeat the interest of the Agency in any asset acquired by the Agency as receiver under this section shall be valid against the Agency unless such agreement is in writing and executed by an authorized officer or representative of the regulated entity.
``(C) Payment of dividends on claims.--The receiver may, in the sole discretion of the receiver, pay from the assets of the regulated entity dividends on proved claims at any time, and no liability shall attach to the Agency by reason of any such payment, for failure to pay dividends to a claimant whose claim is not proved at the time of any such payment.
``(D) Rulemaking authority of the director.--The Director may prescribe such rules, including definitions of terms, as the Director deems appropriate to establish a single uniform interest rate for, or to make payments of post-insolvency interest to creditors holding proven claims against the receivership estates of the regulated entity, following satisfaction by the receiver of the principal amount of all creditor claims.
``(10) Suspension of legal actions.--
``(A) In general.--After the appointment of a conservator or receiver for a regulated entity, the conservator or receiver may, in any judicial action or proceeding to which such regulated entity is or becomes a party, request a stay for a period not to exceed--
``(i) 45 days, in the case of any conservator; and
``(ii) 90 days, in the case of any receiver.
``(B) Grant of stay by all courts required.--Upon receipt of a request by the conservator or receiver under subparagraph (A) for a stay of any judicial action or proceeding in any court with jurisdiction of such action or proceeding, the court shall grant such stay as to all parties.
``(11) Additional rights and duties.--
``(A) Prior final adjudication.--The Agency shall abide by any final unappealable judgment of any court of competent jurisdiction which was rendered before the appointment of the Agency as conservator or receiver.
``(B) Rights and remedies of conservator or receiver.--In the event of any appealable judgment, the Agency as conservator or receiver--
``(i) shall have all of the rights and remedies available to the regulated entity (before the appointment of such conservator or receiver) and the Agency, including removal to Federal court and all appellate rights; and
``(ii) shall not be required to post any bond in order to pursue such remedies.
``(C) No attachment or execution.--No attachment or execution may issue by any court upon assets in the possession of the receiver, or upon the charter, of a regulated entity for which the Agency has been appointed receiver.
``(D) Limitation on judicial review.--Except as otherwise provided in this subsection, no court shall have jurisdiction over--
``(i) any claim or action for payment from, or any action seeking a determination of rights with respect to, the assets or charter of any regulated entity for which the Agency has been appointed receiver; or
``(ii) any claim relating to any act or omission of such regulated entity or the Agency as receiver.
``(E) Disposition of assets.--In exercising any right, power, privilege, or authority as conservator or receiver in connection with any sale or disposition of assets of a regulated entity for which the Agency has been appointed conservator or receiver, the Agency shall conduct its operations in a manner which--
``(i) maximizes the net present value return from the sale or disposition of such assets;
``(ii) minimizes the amount of any loss realized in the resolution of cases; and
``(iii) ensures adequate competition and fair and consistent treatment of offerors.
``(12) Statute of limitations for actions brought by conservator or receiver.--
``(A) In general.--Notwithstanding any provision of any contract, the applicable statute of limitations with regard to any action brought by the Agency as conservator or receiver shall be--
``(i) in the case of any contract claim, the longer of--
``(I) the 6-year period beginning on the date on which the claim accrues; or
``(II) the period applicable under State law; and
``(ii) in the case of any tort claim, the longer of--
``(I) the 3-year period beginning on the date on which the claim accrues; or
``(II) the period applicable under State law.
``(B) Determination of the date on which a claim accrues.--For purposes of subparagraph (A), the date on which the statute of limitations begins to run on any claim described in such subparagraph shall be the later of--
``(i) the date of the appointment of the Agency as conservator or receiver; or
``(ii) the date on which the cause of action accrues.
``(13) Revival of expired state causes of action.--
``(A) In general.--In the case of any tort claim described under clause (ii) for which the statute of limitations applicable under State law with respect to such claim has expired not more than 5 years before the appointment of the Agency as conservator or receiver, the Agency may bring an action as conservator or receiver on such claim without regard to the expiration of the statute of limitations applicable under State law.
``(B) Claims described.--A tort claim referred to under clause (i) is a claim arising from fraud, intentional misconduct resulting in unjust enrichment, or intentional misconduct resulting in substantial loss to the regulated entity.
``(14) Accounting and recordkeeping requirements.--
``(A) In general.--The Agency as conservator or receiver shall, consistent with the accounting and reporting practices and procedures established by the Agency, maintain a full accounting of each conservatorship and receivership or other disposition of a regulated entity in default.
``(B) Annual accounting or report.--With respect to each conservatorship or receivership, the Agency shall make an annual accounting or report available to the Board, the Comptroller General of the United States, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives.
``(C) Availability of reports.--Any report prepared under subparagraph (B) shall be made available by the Agency upon request to any shareholder of a regulated entity or any member of the public.
``(D) Recordkeeping requirement.--After the end of the 6-year period beginning on the date on which the conservatorship or receivership is terminated by the Director, the Agency may destroy any records of such regulated entity which the Agency, in the discretion of the Agency, determines to be unnecessary, unless directed not to do so by a court of competent jurisdiction or governmental agency, or prohibited by law.
``(15) Fraudulent transfers.--
``(A) In general.--The Agency, as conservator or receiver, may avoid a transfer of any interest of an entity-affiliated party, or any person determined by the conservator or receiver to be a debtor of the regulated entity, in property, or any obligation incurred by such party or person, that was made within 5 years of the date on which the Agency was appointed conservator or receiver, if such party or person voluntarily or involuntarily made such transfer or incurred such liability with the intent to hinder, delay, or defraud the regulated entity, the Agency, the conservator, or receiver.
``(B) Right of recovery.--To the extent a transfer is avoided under subparagraph (A), the conservator or receiver may recover, for the benefit of the regulated entity, the property transferred, or, if a court so orders, the value of such property (at the time of such transfer) from--
``(i) the initial transferee of such transfer or the entity-affiliated party or person for whose benefit such transfer was made; or
``(ii) any immediate or mediate transferee of any such initial transferee.
``(C) Rights of transferee or obligee.--The conservator or receiver may not recover under subparagraph (B) from--
``(i) any transferee that takes for value, including satisfaction or securing of a present or antecedent debt, in good faith; or
``(ii) any immediate or mediate good faith transferee of such transferee.
``(D) Rights under this paragraph.--The rights under this paragraph of the conservator or receiver described under subparagraph (A) shall be superior to any rights of a trustee or any other party (other than any party which is a Federal agency) under title 11, United States Code.
``(16) Attachment of assets and other injunctive relief.--Subject to paragraph (17), any court of competent jurisdiction may, at the request of the conservator or receiver, issue an order in accordance with rule 65 of the Federal Rules of Civil Procedure, including an order placing the assets of any person designated by the conservator or receiver under the control of the court, and appointing a trustee to hold such assets.
``(17) Standards of proof.--Rule 65 of the Federal Rules of Civil Procedure shall apply with respect to any proceeding under paragraph (16) without regard to the requirement of such rule that the applicant show that the injury, loss, or damage is irreparable and immediate.
``(18) Treatment of claims arising from breach of contracts executed by the conservator or receiver.--
``(A) In general.--Notwithstanding any other provision of this subsection, any final and unappealable judgment for monetary damages entered against the conservator or receiver for the breach of an agreement executed or approved in writing by the conservator or receiver after the date of its appointment, shall be paid as an administrative expense of the conservator or receiver.
``(B) No limitation of power.--Nothing in this paragraph shall be construed to limit the power of the conservator or receiver to exercise any rights under contract or law, including to terminate, breach, cancel, or otherwise discontinue such agreement.
``(19) General exceptions.--
``(A) Limitations.--The rights of the conservator or receiver appointed under this section shall be subject to the limitations on the powers of a receiver under sections 402 through 407 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4402 through 4407).
``(B) Mortgages held in trust.--
``(i) In general.--Any mortgage, pool of mortgages, or interest in a pool of mortgages held in trust, custodial, or agency capacity by a regulated entity for the benefit of any person other than the regulated entity shall not be available to satisfy the claims of creditors generally, except that nothing in this clause shall be construed to expand or otherwise affect the authority of any regulated entity.
``(ii) Holding of mortgages.--Any mortgage, pool of mortgages, or interest in a pool of mortgages described in clause (i) shall be held by the conservator or receiver appointed under this section for the beneficial owners of such mortgage, pool of mortgages, or interest in accordance with the terms of the agreement creating such trust, custodial, or other agency arrangement.
``(iii) Liability of conservator or receiver.--The liability of the conservator or receiver appointed under this section for damages shall, in the case of any contingent or unliquidated claim relating to the mortgages held in trust, be estimated in accordance with the regulations of the Director.
``(c) Priority of Expenses and Unsecured Claims.--
``(1) In general.--Unsecured claims against a regulated entity, or the receiver therefor, that are proven to the satisfaction of the receiver shall have priority in the following order:
``(A) Administrative expenses of the receiver.
``(B) Any other general or senior liability of the regulated entity (which is not a liability described under subparagraph (C) or (D).
``(C) Any obligation subordinated to general creditors
(which is not an obligation described under subparagraph
(D)).
``(D) Any obligation to shareholders or members arising as a result of their status as shareholder or members.
``(2) Creditors similarly situated.--All creditors that are similarly situated under paragraph (1) shall be treated in a similar manner, except that the receiver may take any action
(including making payments) that does not comply with this subsection, if--
``(A) the Director determines that such action is necessary to maximize the value of the assets of the regulated entity, to maximize the present value return from the sale or other disposition of the assets of the regulated entity, or to minimize the amount of any loss realized upon the sale or other disposition of the assets of the regulated entity; and
``(B) all creditors that are similarly situated under paragraph (1) receive not less than the amount provided in subsection (e)(2).
``(3) Definition.--As used in this subsection, the term
`administrative expenses of the receiver' includes--
``(A) the actual, necessary costs and expenses incurred by the receiver in preserving the assets of a failed regulated entity or liquidating or otherwise resolving the affairs of a failed regulated entity; and
``(B) any obligations that the receiver determines are necessary and appropriate to facilitate the smooth and orderly liquidation or other resolution of the regulated entity.
``(d) Provisions Relating to Contracts Entered Into Before Appointment of Conservator or Receiver.--
``(1) Authority to repudiate contracts.--In addition to any other rights a conservator or receiver may have, the conservator or receiver for any regulated entity may disaffirm or repudiate any contract or lease--
``(A) to which such regulated entity is a party;
``(B) the performance of which the conservator or receiver, in its sole discretion, determines to be burdensome; and
``(C) the disaffirmance or repudiation of which the conservator or receiver determines, in its sole discretion, will promote the orderly administration of the affairs of the regulated entity.
``(2) Timing of repudiation.--The conservator or receiver shall determine whether or not to exercise the rights of repudiation under this subsection within a reasonable period following such appointment.
``(3) Claims for damages for repudiation.--
``(A) In general.--Except as otherwise provided under subparagraph (C) and paragraphs (4), (5), and (6), the liability of the conservator or receiver for the disaffirmance or repudiation of any contract pursuant to paragraph (1) shall be--
``(i) limited to actual direct compensatory damages; and
``(ii) determined as of--
``(I) the date of the appointment of the conservator or receiver; or
``(II) in the case of any contract or agreement referred to in paragraph (8), the date of the disaffirmance or repudiation of such contract or agreement.
``(B) No liability for other damages.--For purposes of subparagraph (A), the term `actual direct compensatory damages' shall not include--
``(i) punitive or exemplary damages;
``(ii) damages for lost profits or opportunity; or
``(iii) damages for pain and suffering.
``(C) Measure of damages for repudiation of financial contracts.--In the case of any qualified financial contract or agreement to which paragraph (8) applies, compensatory damages shall be--
``(i) deemed to include normal and reasonable costs of cover or other reasonable measures of damages utilized in the industries for such contract and agreement claims; and
``(ii) paid in accordance with this subsection and subsection (e), except as otherwise specifically provided in this section.
``(4) Leases under which the regulated entity is the lessee.--
``(A) In general.--If the conservator or receiver disaffirms or repudiates a lease under which the regulated entity was the lessee, the conservator or receiver shall not be liable for any damages (other than damages determined under subparagraph (B)) for the disaffirmance or repudiation of such lease.
``(B) Payments of rent.--Notwithstanding subparagraph (A), the lessor under a lease to which that subparagraph applies shall--
``(i) be entitled to the contractual rent accruing before the later of the date on which--
``(I) the notice of disaffirmance or repudiation is mailed; or
``(II) the disaffirmance or repudiation becomes effective, unless the lessor is in default or breach of the terms of the lease;
``(ii) have no claim for damages under any acceleration clause or other penalty provision in the lease; and
``(iii) have a claim for any unpaid rent, subject to all appropriate offsets and defenses, due as of the date of the appointment, which shall be paid in accordance with this subsection and subsection (e).
``(5) Leases under which the regulated entity is the lessor.--
``(A) In general.--If the conservator or receiver repudiates an unexpired written lease of real property of the regulated entity under which the regulated entity is the lessor and the lessee is not, as of the date of such repudiation, in default, the lessee under such lease may either--
``(i) treat the lease as terminated by such repudiation; or
``(ii) remain in possession of the leasehold interest for the balance of the term of the lease, unless the lessee defaults under the terms of the lease after the date of such repudiation.
``(B) Provisions applicable to lessee remaining in possession.--If any lessee under a lease described under subparagraph (A) remains in possession of a leasehold interest under clause (ii) of subparagraph (A)--
``(i) the lessee--
``(I) shall continue to pay the contractual rent pursuant to the terms of the lease after the date of the repudiation of such lease; and
``(II) may offset against any rent payment which accrues after the date of the repudiation of the lease, and any damages which accrue after such date due to the nonperformance of any obligation of the regulated entity under the lease after such date; and
``(ii) the conservator or receiver shall not be liable to the lessee for any damages arising after such date as a result of the repudiation, other than the amount of any offset allowed under clause (i)(II).
``(6) Contracts for the sale of real property.--
``(A) In general.--If the conservator or receiver repudiates any contract for the sale of real property and the purchaser of such real property under such contract is in possession, and is not, as of the date of such repudiation, in default, such purchaser may either--
``(i) treat the contract as terminated by such repudiation; or
``(ii) remain in possession of such real property.
``(B) Provisions applicable to purchaser remaining in possession.--If any purchaser of real property under any contract described under subparagraph (A) remains in possession of such property under clause (ii) of subparagraph
(A)--
``(i) the purchaser--
``(I) shall continue to make all payments due under the contract after the date of the repudiation of the contract; and
``(II) may offset against any such payments any damages which accrue after such date due to the nonperformance (after such date) of any obligation of the regulated entity under the contract; and
``(ii) the conservator or receiver shall--
``(I) not be liable to the purchaser for any damages arising after such date as a result of the repudiation, other than the amount of any offset allowed under clause (i)(II);
``(II) deliver title to the purchaser in accordance with the provisions of the contract; and
``(III) have no obligation under the contract other than the performance required under subclause (II).
``(C) Assignment and sale allowed.--
``(i) In general.--No provision of this paragraph shall be construed as limiting the right of the conservator or receiver to assign the contract described under subparagraph
(A), and sell the property subject to the contract and the provisions of this paragraph.
``(ii) No liability after assignment and sale.--If an assignment and sale described under clause (i) is consummated, the conservator or receiver shall have no further liability under the contract described under subparagraph (A), or with respect to the real property which was the subject of such contract.
``(7) Service contracts.--
``(A) Services performed before appointment.--In the case of any contract for services between any person and any regulated entity for which the Agency has been appointed conservator or receiver, any claim of such person for services performed before the appointment of the conservator or receiver shall be--
``(i) a claim to be paid in accordance with subsections (b) and (e); and
``(ii) deemed to have arisen as of the date on which the conservator or receiver was appointed.
``(B) Services performed after appointment and prior to repudiation.--If, in the case of any contract for services described under subparagraph (A), the conservator or receiver accepts performance by the other person before the conservator or receiver makes any determination to exercise the right of repudiation of such contract under this section--
``(i) the other party shall be paid under the terms of the contract for the services performed; and
``(ii) the amount of such payment shall be treated as an administrative expense of the conservatorship or receivership.
``(C) Acceptance of performance no bar to subsequent repudiation.--The acceptance by the conservator or receiver of services referred to under subparagraph (B) in connection with a contract described in such subparagraph shall not affect the right of the conservator or receiver to repudiate such contract under this section at any time after such performance.
``(8) Certain qualified financial contracts.--
``(A) Rights of parties to contracts.--Subject to paragraphs (9) and (10), and notwithstanding any other provision of this title (other than subsection (b)(9)(B) of this section), any other Federal law, or the law of any State, no person shall be stayed or prohibited from exercising--
``(i) any right of that person to cause the termination, liquidation, or acceleration of any qualified financial contract with a regulated entity that arises upon the appointment of the Agency as receiver for such regulated entity at any time after such appointment;
``(ii) any right under any security agreement or arrangement or other credit enhancement relating to one or more qualified financial contracts; or
``(iii) any right to offset or net out any termination value, payment amount, or other transfer obligation arising under or in connection with 1 or more contracts and agreements described in clause (i), including any master agreement for such contracts or agreements.
``(B) Applicability of other provisions.--Subsection
(b)(10) shall apply in the case of any judicial action or proceeding brought against any receiver referred to under subparagraph (A), or the regulated entity for which such receiver was appointed, by any party to a contract or agreement described under subparagraph (A)(i) with such regulated entity.
``(C) Certain transfers not avoidable.--
``(i) In general.--Notwithstanding paragraph (11), or any other provision of Federal or State law relating to the avoidance of preferential or fraudulent transfers, the Agency, whether acting as such or as conservator or receiver of a regulated entity, may not avoid any transfer of money or other property in connection with any qualified financial contract with a regulated entity.
``(ii) Exception for certain transfers.--Clause (i) shall not apply to any transfer of money or other property in connection with any qualified financial contract with a regulated entity if the Agency determines that the transferee had actual intent to hinder, delay, or defraud such regulated entity, the creditors of such regulated entity, or any conservator or receiver appointed for such regulated entity.
``(D) Certain contracts and agreements defined.--In this subsection the following definitions shall apply:
``(i) Qualified financial contract.--The term `qualified financial contract' means any securities contract, commodity contract, forward contract, repurchase agreement, swap agreement, and any similar agreement that the Agency determines by regulation, resolution, or order to be a qualified financial contract for purposes of this paragraph.
``(ii) Securities contract.--The term `securities contract'--
``(I) means a contract for the purchase, sale, or loan of a security, a certificate of deposit, a mortgage loan, or any interest in a mortgage loan, a group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or any option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option, and including any repurchase or reverse repurchase transaction on any such security, certificate of deposit, mortgage loan, interest, group or index, or option;
``(II) does not include any purchase, sale, or repurchase obligation under a participation in a commercial mortgage loan, unless the Agency determines by regulation, resolution, or order to include any such agreement within the meaning of such term;
``(III) means any option entered into on a national securities exchange relating to foreign currencies;
``(IV) means the guarantee by or to any securities clearing agency of any settlement of cash, securities, certificates of deposit, mortgage loans or interests therein, group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option;
``(V) means any margin loan;
``(VI) means any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;
``(VII) means any combination of the agreements or transactions referred to in this clause;
``(VIII) means any option to enter into any agreement or transaction referred to in this clause;
``(IX) means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III),
(IV), (V), (VI), (VII), or (VIII), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a securities contract under this clause, except that the master agreement shall be considered to be a securities contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (III), (IV),
(V), (VI), (VII), or (VIII); and
``(X) means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause.
``(iii) Commodity contract.--The term `commodity contract' means--
``(I) with respect to a futures commission merchant, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade;
``(II) with respect to a foreign futures commission merchant, a foreign future;
``(III) with respect to a leverage transaction merchant, a leverage transaction;
``(IV) with respect to a clearing organization, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization, or commodity option traded on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization;
``(V) with respect to a commodity options dealer, a commodity option;
``(VI) any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;
``(VII) any combination of the agreements or transactions referred to in this clause;
``(VIII) any option to enter into any agreement or transaction referred to in this clause;
``(IX) a master agreement that provides for an agreement or transaction referred to in subclause (I), (II), (III), (IV),
(V), (VI), (VII), or (VIII), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a commodity contract under this clause, except that the master agreement shall be considered to be a commodity contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), (III),
(IV), (V), (VI), (VII), or (VIII); or
``(X) any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause.
``(iv) Forward contract.--The term `forward contract' means--
``(I) a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade, or product or byproduct thereof, with a maturity date more than 2 days after the date on which the contract is entered into, including a repurchase transaction, reverse repurchase transaction, consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any other similar agreement;
``(II) any combination of agreements or transactions referred to in subclauses (I) and (III);
``(III) any option to enter into any agreement or transaction referred to in subclause (I) or (II);
``(IV) a master agreement that provides for an agreement or transaction referred to in subclauses (I), (II), or (III), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a forward contract under this clause, except that the master agreement shall be considered to be a forward contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), or (III); or
``(V) any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause (I), (II), (III), or (IV), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.
``(v) Repurchase agreement.--The term `repurchase agreement' (including a reverse repurchase agreement)--
``(I) means an agreement, including related terms, which provides for the transfer of one or more certificates of deposit, mortgage-related securities (as such term is defined in section 3 of the Securities Exchange Act of 1934), mortgage loans, interests in mortgage-related securities or mortgage loans, eligible bankers' acceptances, qualified foreign government securities (defined for purposes of this clause as a security that is a direct obligation of, or that is fully guaranteed by, the central government of a member of the Organization for Economic Cooperation and Development, as determined by regulation or order adopted by the appropriate Federal banking authority), or securities that are direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers' acceptances, securities, mortgage loans, or interests with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers' acceptances, securities, mortgage loans, or interests as described above, at a date certain not later than 1 year after such transfers or on demand, against the transfer of funds, or any other similar agreement;
``(II) does not include any repurchase obligation under a participation in a commercial mortgage loan, unless the Agency determines by regulation, resolution, or order to include any such participation within the meaning of such term;
``(III) means any combination of agreements or transactions referred to in subclauses (I) and (IV);
``(IV) means any option to enter into any agreement or transaction referred to in subclause (I) or (III);
``(V) means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III), or (IV), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a repurchase agreement under this clause, except that the master agreement shall be considered to be a repurchase agreement under this subclause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (III), or (IV); and
``(VI) means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause (I), (III), (IV), or (V), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.
``(vi) Swap agreement.--The term `swap agreement' means--
``(I) any agreement, including the terms and conditions incorporated by reference in any such agreement, which is an interest rate swap, option, future, or forward agreement, including a rate floor, rate cap, rate collar, cross-currency rate swap, and basis swap; a spot, same day-tomorrow, tomorrow-next, forward, or other foreign exchange or precious metals agreement; a currency swap, option, future, or forward agreement; an equity index or equity swap, option, future, or forward agreement; a debt index or debt swap, option, future, or forward agreement; a total return, credit spread or credit swap, option, future, or forward agreement; a commodity index or commodity swap, option, future, or forward agreement; or a weather swap, weather derivative, or weather option;
``(II) any agreement or transaction that is similar to any other agreement or transaction referred to in this clause and that is of a type that has been, is presently, or in the future becomes, the subject of recurrent dealings in the swap markets (including terms and conditions incorporated by reference in such agreement) and that is a forward, swap, future, or option on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, quantitative measures associated with an occurrence, extent of an occurrence, or contingency associated with a financial, commercial, or economic consequence, or economic or financial indices or measures of economic or financial risk or value;
``(III) any combination of agreements or transactions referred to in this clause;
``(IV) any option to enter into any agreement or transaction referred to in this clause;
``(V) a master agreement that provides for an agreement or transaction referred to in subclause (I), (II), (III), or
(IV), together with all supplements to any such master agreement, without regard to whether the master agreement contains an agreement or transaction that is not a swap agreement under this clause, except that the master agreement shall be considered to be a swap agreement under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II),
(III), or (IV); and
``(VI) any security agreement or arrangement or other credit enhancement related to any agreements or transactions referred to in subclause (I), (II), (III), (IV), or (V), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.
``(vii) Treatment of master agreement as one agreement.--Any master agreement for any contract or agreement described in any preceding clause of this subparagraph (or any master agreement for such master agreement or agreements), together with all supplements to such master agreement, shall be treated as a single agreement and a single qualified financial contract. If a master agreement contains provisions relating to agreements or transactions that are not themselves qualified financial contracts, the master agreement shall be deemed to be a qualified financial contract only with respect to those transactions that are themselves qualified financial contracts.
``(viii) Transfer.--The term `transfer' means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with property or with an interest in property, including retention of title as a security interest and foreclosure of the equity of redemption of the regulated entity.
``(E) Certain protections in event of appointment of conservator.--Notwithstanding any other provision of this section, any other Federal law, or the law of any State
(other than paragraph (10) of this subsection and subsection
(b)(9)(B)), no person shall be stayed or prohibited from exercising--
``(i) any right such person has to cause the termination, liquidation, or acceleration of any qualified financial contract with a regulated entity in a conservatorship based upon a default under such financial contract which is enforceable under applicable noninsolvency law;
``(ii) any right under any security agreement or arrangement or other credit enhancement relating to 1 or more such qualified financial contracts; or
``(iii) any right to offset or net out any termination values, payment amounts, or other transfer obligations arising under or in connection with such qualified financial contracts.
``(F) Clarification.--No provision of law shall be construed as limiting the right or power of the Agency, or authorizing any court or agency to limit or delay in any manner, the right or power of the Agency to transfer any qualified financial contract in accordance with paragraphs
(9) and (10), or to disaffirm or repudiate any such contract in accordance with subsection (d)(1).
``(G) Walkaway clauses not effective.--
``(i) In general.--Notwithstanding the provisions of subparagraphs (A) and (E), and sections 403 and 404 of the Federal Deposit Insurance Corporation Improvement Act of 1991, no walkaway clause shall be enforceable in a qualified financial contract of a regulated entity in default.
``(ii) Walkaway clause defined.--For purposes of this subparagraph, the term `walkaway clause' means a provision in a qualified financial contract that, after calculation of a value of a party's position or an amount due to or from 1 of the parties in accordance with its terms upon termination, liquidation, or acceleration of the qualified financial contract, either does not create a payment obligation of a party or extinguishes a payment obligation of a party in whole or in part solely because of the status of such party as a nondefaulting party.
``(9) Transfer of qualified financial contracts.--In making any transfer of assets or liabilities of a regulated entity in default which includes any qualified financial contract, the conservator or receiver for such regulated entity shall either--
``(A) transfer to 1 person--
``(i) all qualified financial contracts between any person
(or any affiliate of such person) and the regulated entity in default;
``(ii) all claims of such person (or any affiliate of such person) against such regulated entity under any such contract
(other than any claim which, under the terms of any such contract, is subordinated to the claims of general unsecured creditors of such regulated entity);
``(iii) all claims of such regulated entity against such person (or any affiliate of such person) under any such contract; and
``(iv) all property securing, or any other credit enhancement for any contract described in clause (i), or any claim described in clause (ii) or (iii) under any such contract; or
``(B) transfer none of the financial contracts, claims, or property referred to under subparagraph (A) (with respect to such person and any affiliate of such person).
``(10) Notification of transfer.--
``(A) In general.--The conservator or receiver shall notify any person that is a party to a contract or transfer by 5:00 p.m. (Eastern Standard Time) on the business day following the date of the appointment of the receiver in the case of a receivership, or the business day following such transfer in the case of a conservatorship, if--
``(i) the conservator or receiver for a regulated entity in default makes any transfer of the assets and liabilities of such regulated entity; and
``(ii) such transfer includes any qualified financial contract.
``(B) Certain rights not enforceable.--
``(i) Receivership.--A person who is a party to a qualified financial contract with a regulated entity may not exercise any right that such person has to terminate, liquidate, or net such contract under paragraph (8)(A) of this subsection or under section 403 or 404 of the Federal Deposit Insurance Corporation Improvement Act of 1991, solely by reason of or incidental to the appointment of a receiver for the regulated entity (or the insolvency or financial condition of the regulated entity for which the receiver has been appointed)--
``(I) until 5:00 p.m. (Eastern Standard Time) on the business day following the date of the appointment of the receiver; or
``(II) after the person has received notice that the contract has been transferred pursuant to paragraph (9)(A).
``(ii) Conservatorship.--A person who is a party to a qualified financial contract with a regulated entity may not exercise any right that such person has to terminate, liquidate, or net such contract under paragraph (8)(E) of this subsection or under section 403 or 404 of the Federal Deposit Insurance Corporation Improvement Act of 1991, solely by reason of or incidental to the appointment of a conservator for the regulated entity (or the insolvency or financial condition of the regulated entity for which the conservator has been appointed).
``(iii) Notice.--For purposes of this paragraph, the conservator or receiver of a regulated entity shall be deemed to have notified a person who is a party to a qualified financial contract with such regulated entity, if the conservator or receiver has taken steps reasonably calculated to provide notice to such person by the time specified in subparagraph (A).
``(C) Business day defined.--For purposes of this paragraph, the term `business day' means any day other than any Saturday, Sunday, or any day on which either the New York Stock Exchange or the Federal Reserve Bank of New York is closed.
``(11) Disaffirmance or repudiation of qualified financial contracts.--In exercising the rights of disaffirmance or repudiation of a conservator or receiver with respect to any qualified financial contract to which a regulated entity is a party, the conservator or receiver for such institution shall either--
``(A) disaffirm or repudiate all qualified financial contracts between--
``(i) any person or any affiliate of such person; and
``(ii) the regulated entity in default; or
``(B) disaffirm or repudiate none of the qualified financial contracts referred to in subparagraph (A) (with respect to such person or any affiliate of such person).
``(12) Certain security interests not avoidable.--No provision of this subsection shall be construed as permitting the avoidance of any legally enforceable or perfected security interest in any of the assets of any regulated entity, except where such an interest is taken in contemplation of the insolvency of the regulated entity, or with the intent to hinder, delay, or defraud the regulated entity or the creditors of such regulated entity.
``(13) Authority to enforce contracts.--
``(A) In general.--Notwithstanding any provision of a contract providing for termination, default, acceleration, or exercise of rights upon, or solely by reason of, insolvency or the appointment of, or the exercise of rights or powers by, a conservator or receiver, the conservator or receiver may enforce any contract, other than a contract for liability insurance for a director or officer, or a contract or a regulated entity bond, entered into by the regulated entity.
``(B) Certain rights not affected.--No provision of this paragraph may be construed as impairing or affecting any right of the conservator or receiver to enforce or recover under a liability insurance contract for an officer or director, or regulated entity bond under other applicable law.
``(C) Consent requirement.--
``(i) In general.--Except as otherwise provided under this section, no person may exercise any right or power to terminate, accelerate, or declare a default under any contract to which a regulated entity is a party, or to obtain possession of or exercise control over any property of the regulated entity, or affect any contractual rights of the regulated entity, without the consent of the conservator or receiver, as appropriate, for a period of--
``(I) 45 days after the date of appointment of a conservator; or
``(II) 90 days after the date of appointment of a receiver.
``(ii) Exceptions.--This subparagraph shall not--
``(I) apply to a contract for liability insurance for an officer or director;
``(II) apply to the rights of parties to certain qualified financial contracts under subsection (d)(8); and
``(III) be construed as permitting the conservator or receiver to fail to comply with otherwise enforceable provisions of such contracts.
``(14) Savings clause.--The meanings of terms used in this subsection are applicable for purposes of this subsection only, and shall not be construed or applied so as to challenge or affect the characterization, definition, or treatment of any similar terms under any other statute, regulation, or rule, including the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934), and the Commodity Exchange Act.
``(15) Exception for federal reserve and federal home loan banks.--No provision of this subsection shall apply with respect to--
``(A) any extension of credit from any Federal Home Loan Bank or Federal Reserve Bank to any regulated entity; or
``(B) any security interest in the assets of the regulated entity securing any such extension of credit.
``(e) Valuation of Claims in Default.--
``(1) In general.--Notwithstanding any other provision of Federal law or the law of any State, and regardless of the method which the Agency determines to utilize with respect to a regulated entity in default or in danger of default, including transactions authorized under subsection (i), this subsection shall govern the rights of the creditors of such regulated entity.
``(2) Maximum liability.--The maximum liability of the Agency, acting as receiver or in any other capacity, to any person having a claim against the receiver or the regulated entity for which such receiver is appointed shall be not more than the amount that such claimant would have received if the Agency had liquidated the assets and liabilities of the regulated entity without exercising the authority of the Agency under subsection (i).
``(f) Limitation on Court Action.--Except as provided in this section or at the request of the Director, no court may take any action to restrain or affect the exercise of powers or functions of the Agency as a conservator or a receiver.
``(g) Liability of Directors and Officers.--
``(1) In general.--A director or officer of a regulated entity may be held personally liable for monetary damages in any civil action described in paragraph (2) brought by, on behalf of, or at the request or direction of the Agency, and prosecuted wholly or partially for the benefit of the Agency--
``(A) acting as conservator or receiver of such regulated entity; or
``(B) acting based upon a suit, claim, or cause of action purchased from, assigned by, or otherwise conveyed by such receiver or conservator.
``(2) Actions addressed.--Paragraph (1) applies in any civil action for gross negligence, including any similar conduct or conduct that demonstrates a greater disregard of a duty of care than gross negligence, including intentional tortious conduct, as such terms are defined and determined under applicable State law.
``(3) No limitation.--Nothing in this subsection shall impair or affect any right of the Agency under other applicable law.
``(h) Damages.--In any proceeding related to any claim against a director, officer, employee, agent, attorney, accountant, appraiser, or any other party employed by or providing services to a regulated entity, recoverable damages determined to result from the improvident or otherwise improper use or investment of any assets of the regulated entity shall include principal losses and appropriate interest.
``(i) Limited-Life Regulated Entities.--
``(1) Organization.--
``(A) Purpose.--The Agency, as receiver appointed pursuant to subsection (a)--
``(i) may, in the case of a Federal Home Loan Bank, organize a limited-life regulated entity with those powers and attributes of the Federal Home Loan Bank in default or in danger of default as the Director determines necessary, subject to the provisions of this subsection, and the Director shall grant a temporary charter to that limited-life regulated entity, and that limited-life regulated entity shall operate subject to that charter; and
``(ii) shall, in the case of an enterprise, organize a limited-life regulated entity with respect to that enterprise in accordance with this subsection.
``(B) Authorities.--Upon the creation of a limited-life regulated entity under subparagraph (A), the limited-life regulated entity may--
``(i) assume such liabilities of the regulated entity that is in default or in danger of default as the Agency may, in its discretion, determine to be appropriate, except that the liabilities assumed shall not exceed the amount of assets purchased or transferred from the regulated entity to the limited-life regulated entity;
``(ii) purchase such assets of the regulated entity that is in default, or in danger of default as the Agency may, in its discretion, determine to be appropriate; and
``(iii) perform any other temporary function which the Agency may, in its discretion, prescribe in accordance with this section.
``(2) Charter and establishment.--
``(A) Transfer of charter.--
``(i) Fannie mae.--If the Agency is appointed as receiver for the Federal National Mortgage Association, the limited-life regulated entity established under this subsection with respect to such enterprise shall, by operation of law and immediately upon its organization--
``(I) succeed to the charter of the Federal National Mortgage Association, as set forth in the Federal National Mortgage Association Charter Act; and
``(II) thereafter operate in accordance with, and subject to, such charter, this Act, and any other provision of law to which the Federal National Mortgage Association is subject, except as otherwise provided in this subsection.
``(ii) Freddie mac.--If the Agency is appointed as receiver for the Federal Home Loan Mortgage Corporation, the limited-life regulated entity established under this subsection with respect to such enterprise shall, by operation of law and immediately upon its organization--
``(I) succeed to the charter of the Federal Home Loan Mortgage Corporation, as set forth in the Federal Home Loan Mortgage Corporation Charter Act; and
``(II) thereafter operate in accordance with, and subject to, such charter, this Act, and any other provision of law to which the Federal Home Loan Mortgage Corporation is subject, except as otherwise provided in this subsection.
``(B) Interests in and assets and obligations of regulated entity in default.--Notwithstanding subparagraph (A) or any other provision of law--
``(i) a limited-life regulated entity shall assume, acquire, or succeed to the assets or liabilities of a regulated entity only to the extent that such assets or liabilities are transferred by the Agency to the limited-life regulated entity in accordance with, and subject to the restrictions set forth in, paragraph (1)(B);
``(ii) a limited-life regulated entity shall not assume, acquire, or succeed to any obligation that a regulated entity for which a receiver has been appointed may have to any shareholder of the regulated entity that arises as a result of the status of that person as a shareholder of the regulated entity; and
``(iii) no shareholder or creditor of a regulated entity shall have any right or claim against the charter of the regulated entity once the Agency has been appointed receiver for the regulated entity and a limited-life regulated entity succeeds to the charter pursuant to subparagraph (A).
``(C) Limited-life regulated entity treated as being in default for certain purposes.--A limited-life regulated entity shall be treated as a regulated entity in default at such times and for such purposes as the Agency may, in its discretion, determine.
``(D) Management.--Upon its establishment, a limited-life regulated entity shall be under the management of a board of directors consisting of not fewer than 5 nor more than 10 members appointed by the Agency.
``(E) Bylaws.--The board of directors of a limited-life regulated entity shall adopt such bylaws as may be approved by the Agency.
``(3) Capital stock.--
``(A) No agency requirement.--The Agency is not required to pay capital stock into a limited-life regulated entity or to issue any capital stock on behalf of a limited-life regulated entity established under this subsection.
``(B) Authority.--If the Director determines that such action is advisable, the Agency may cause capital stock or other securities of a limited-life regulated entity established with respect to an enterprise to be issued and offered for sale, in such amounts and on such terms and conditions as the Director may determine, in the discretion of the Director.
``(4) Investments.--Funds of a limited-life regulated entity shall be kept on hand in cash, invested in obligations of the United States or obligations guaranteed as to principal and interest by the United States, or deposited with the Agency, or any Federal reserve bank.
``(5) Exempt tax status.--Notwithstanding any other provision of Federal or State law, a limited-life regulated entity, its franchise, property, and income shall be exempt from all taxation now or hereafter imposed by the United States, by any territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority.
``(6) Winding up.--
``(A) In general.--Subject to subparagraphs (B) and (C), not later than 2 years after the date of its organization, the Agency shall wind up the affairs of a limited-life regulated entity.
``(B) Extension.--The Director may, in the discretion of the Director, extend the status of a limited-life regulated entity for 3 additional 1-year periods.
``(C) Termination of status as limited-life regulated entity.--
``(i) In general.--Upon the sale by the Agency of 80 percent or more of the capital stock of a limited-life regulated entity, as defined in clause (iv), to 1 or more persons (other than the Agency)--
``(I) the status of the limited-life regulated entity as such shall terminate; and
``(II) the entity shall cease to be a limited-life regulated entity for purposes of this subsection.
``(ii) Divestiture of remaining stock, if any.--
``(I) In general.--Not later than 1 year after the date on which the status of a limited-life regulated entity is terminated pursuant to clause (i), the Agency shall sell to 1 or more persons (other than the Agency) any remaining capital stock of the former limited-life regulated entity.
``(II) Extension authorized.--The Director may extend the period referred to in subclause (I) for not longer than an additional 2 years, if the Director determines that such action would be in the public interest.
``(iii) Savings clause.--Notwithstanding any provision of law, other than clause (ii), the Agency shall not be required to sell the capital stock of an enterprise or a limited-life regulated entity established with respect to an enterprise.
``(iv) Applicability.--This subparagraph applies only with respect to a limited-life regulated entity that is established with respect to an enterprise.
``(7) Transfer of assets and liabilities.--
``(A) In general.--
``(i) Transfer of assets and liabilities.--The Agency, as receiver, may transfer any assets and liabilities of a regulated entity in default, or in danger of default, to the limited-life regulated entity in accordance with and subject to the restrictions of paragraph (1).
``(ii) Subsequent transfers.--At any time after the establishment of a limited-life regulated entity, the Agency, as receiver, may transfer any assets and liabilities of the regulated entity in default, or in danger of default, as the Agency may, in its discretion, determine to be appropriate in accordance with and subject to the restrictions of paragraph
(1).
``(iii) Effective without approval.--The transfer of any assets or liabilities of a regulated entity in default or in danger of default to a limited-life regulated entity shall be effective without any further approval under Federal or State law, assignment, or consent with respect thereto.
``(iv) Equitable treatment of similarly situated creditors.--The Agency shall treat all creditors of a regulated entity in default or in danger of default that are similarly situated under subsection (c)(1) in a similar manner in exercising the authority of the Agency under this subsection to transfer any assets or liabilities of the regulated entity to the limited-life regulated entity established with respect to such regulated entity, except that the Agency may take actions (including making payments) that do not comply with this clause, if--
``(I) the Director determines that such actions are necessary to maximize the value of the assets of the regulated entity, to maximize the present value return from the sale or other disposition of the assets of the regulated entity, or to minimize the amount of any loss realized upon the sale or other disposition of the assets of the regulated entity; and
``(II) all creditors that are similarly situated under subsection (c)(1) receive not less than the amount provided in subsection (e)(2).
``(v) Limitation on transfer of liabilities.--Notwithstanding any other provision of law, the aggregate amount of liabilities of a regulated entity that are transferred to, or assumed by, a limited-life regulated entity may not exceed the aggregate amount of assets of the regulated entity that are transferred to, or purchased by, the limited-life regulated entity.
``(8) Regulations.--The Agency may promulgate such regulations as the Agency determines to be necessary or appropriate to implement this subsection.
``(9) Powers of limited-life regulated entities.--
``(A) In general.--Each limited-life regulated entity created under this subsection shall have all corporate powers of, and be subject to the same provisions of law as, the regulated entity in default or in danger of default to which it relates, except that--
``(i) the Agency may--
``(I) remove the directors of a limited-life regulated entity;
``(II) fix the compensation of members of the board of directors and senior management, as determined by the Agency in its discretion, of a limited-life regulated entity; and
``(III) indemnify the representatives for purposes of paragraph (1)(B), and the directors, officers, employees, and agents of a limited-life regulated entity on such terms as the Agency determines to be appropriate; and
``(ii) the board of directors of a limited-life regulated entity--
``(I) shall elect a chairperson who may also serve in the position of chief executive officer, except that such person shall not serve either as chairperson or as chief executive officer without the prior approval of the Agency; and
``(II) may appoint a chief executive officer who is not also the chairperson, except that such person shall not serve as chief executive officer without the prior approval of the Agency.
``(B) Stay of judicial action.--Any judicial action to which a limited-life regulated entity becomes a party by virtue of its acquisition of any assets or assumption of any liabilities of a regulated entity in default shall be stayed from further proceedings for a period of not longer than 45 days, at the request of the limited-life regulated entity. Such period may be modified upon the consent of all parties.
``(10) No federal status.--
``(A) Agency status.--A limited-life regulated entity is not an agency, establishment, or instrumentality of the United States.
``(B) Employee status.--Representatives for purposes of paragraph (1)(B), interim directors, directors, officers, employees, or agents of a limited-life regulated entity are not, solely by virtue of service in any such capacity, officers or employees of the United States. Any employee of the Agency or of any Federal instrumentality who serves at the request of the Agency as a representative for purposes of paragraph (1)(B), interim director, director, officer, employee, or agent of a limited-life regulated entity shall not--
``(i) solely by virtue of service in any such capacity lose any existing status as an officer or employee of the United States for purposes of title 5, United States Code, or any other provision of law; or
``(ii) receive any salary or benefits for service in any such capacity with respect to a limited-life regulated entity in addition to such salary or benefits as are obtained through employment with the Agency or such Federal instrumentality.
``(11) Authority to obtain credit.--
``(A) In general.--A limited-life regulated entity may obtain unsecured credit and issue unsecured debt.
``(B) Inability to obtain credit.--If a limited-life regulated entity is unable to obtain unsecured credit or issue unsecured debt, the Director may authorize the obtaining of credit or the issuance of debt by the limited-life regulated entity--
``(i) with priority over any or all of the obligations of the limited-life regulated entity;
``(ii) secured by a lien on property of the limited-life regulated entity that is not otherwise subject to a lien; or
``(iii) secured by a junior lien on property of the limited-life regulated entity that is subject to a lien.
``(C) Limitations.--
``(i) In general.--The Director, after notice and a hearing, may authorize the obtaining of credit or the issuance of debt by a limited-life regulated entity that is secured by a senior or equal lien on property of the limited-life regulated entity that is subject to a lien (other than mortgages that collateralize the mortgage-backed securities issued or guaranteed by an enterprise) only if--
``(I) the limited-life regulated entity is unable to otherwise obtain such credit or issue such debt; and
``(II) there is adequate protection of the interest of the holder of the lien on the property with respect to which such senior or equal lien is proposed to be granted.
``(D) Burden of proof.--In any hearing under this subsection, the Director has the burden of proof on the issue of adequate protection.
``(12) Affect on debts and liens.--The reversal or modification on appeal of an authorization under this subsection to obtain credit or issue debt, or of a grant under this section of a priority or a lien, does not affect the validity of any debt so issued, or any priority or lien so granted, to an entity that extended such credit in good faith, whether or not such entity knew of the pendency of the appeal, unless such authorization and the issuance of such debt, or the granting of such priority or lien, were stayed pending appeal.
``(j) Other Agency Exemptions.--
``(1) Applicability.--The provisions of this subsection shall apply with respect to the Agency in any case in which the Agency is acting as a conservator or a receiver.
``(2) Taxation.--The Agency, including its franchise, its capital, reserves, and surplus, and its income, shall be exempt from all taxation imposed by any State, county, municipality, or local taxing authority, except that any real property of the Agency shall be subject to State, territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed, except that, notwithstanding the failure of any person to challenge an assessment under State law of the value of such property, and the tax thereon, shall be determined as of the period for which such tax is imposed.
``(3) Property protection.--No property of the Agency shall be subject to levy, attachment, garnishment, foreclosure, or sale without the consent of the Agency, nor shall any involuntary lien attach to the property of the Agency.
``(4) Penalties and fines.--The Agency shall not be liable for any amounts in the nature of penalties or fines, including those arising from the failure of any person to pay any real property, personal property, probate, or recording tax or any recording or filing fees when due.
``(k) Prohibition of Charter Revocation.--In no case may the receiver appointed pursuant to this section revoke, annul, or terminate the charter of an enterprise.''.
(b) Technical and Conforming Amendments.--The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended--
(1) in section 1368 (12 U.S.C. 4618)--
(A) by striking ``an enterprise'' each place that term appears and inserting ``a regulated entity''; and
(B) by striking ``the enterprise'' each place that term appears and inserting ``the regulated entity'';
(2) in section 1369C (12 U.S.C. 4622), by striking
``enterprise'' each place that term appears and inserting
``regulated entity'';
(3) in section 1369D (12 U.S.C. 4623)--
(A) by striking ``an enterprise'' each place that term appears and inserting ``a regulated entity''; and
(B) in subsection (a)(1), by striking ``An enterprise'' and inserting ``A regulated entity''; and
(4) by striking sections 1369, 1369A, and 1369B (12 U.S.C. 4619, 4620, and 4621).
Subtitle D--Enforcement Actions
SEC. 1151. CEASE AND DESIST PROCEEDINGS.
Section 1371 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4631) is amended--
(1) by striking subsections (a) and (b) and inserting the following:
``(a) Issuance for Unsafe or Unsound Practices and Violations.--
``(1) Authority of director.--If, in the opinion of the Director, a regulated entity or any entity-affiliated party is engaging or has engaged, or the Director has reasonable cause to believe that the regulated entity or any entity-affiliated party is about to engage, in an unsafe or unsound practice in conducting the business of the regulated entity or the Office of Finance, or is violating or has violated, or the Director has reasonable cause to believe is about to violate, a law, rule, regulation, or order, or any condition imposed in writing by the Director in connection with the granting of any application or other request by the regulated entity or the Office of Finance or any written agreement entered into with the Director, the Director may issue and serve upon the regulated entity or entity-affiliated party a notice of charges in respect thereof.
``(2) Limitation.--The Director may not, pursuant to this section, enforce compliance with any housing goal established under subpart B of part 2 of subtitle A of this title, with section 1336 of this title, with subsection (m) or (n) of section 309 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723a(m), (n)), with subsection (e) or
(f) of section 307 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1456(e), (f)), or with paragraph
(5) of section 10(j) of the Federal Home Loan Bank Act (12 U.S.C. 1430(j)).
``(b) Issuance for Unsatisfactory Rating.--If a regulated entity receives, in its most recent report of examination, a less-than-satisfactory rating for asset quality, management, earnings, or liquidity, the Director may (if the deficiency is not corrected) deem the regulated entity to be engaging in an unsafe or unsound practice for purposes of subsection
(a).'';
(2) in subsection (c)--
(A) in paragraph (1), by inserting before the period at the end the following: ``, unless the party served with a notice of charges shall appear at the hearing personally or by a duly authorized representative, the party shall be deemed to have consented to the issuance of the cease and desist order''; and
(B) in paragraph (2)--
(i) by striking ``or director'' and inserting ``director, or entity-affiliated party''; and
(ii) by inserting ``or entity-affiliated party'' before
``consents'';
(3) in each of subsections (c), (d), and (e)--
(A) by striking ``the enterprise'' each place that term appears and inserting ``the regulated entity'';
(B) by striking ``an enterprise'' each place that term appears and inserting ``a regulated entity''; and
(C) by striking ``conduct'' each place that term appears and inserting ``practice'';
(4) in subsection (d)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``or director'' and inserting ``director, or entity-affiliated party''; and
(ii) by inserting ``to require a regulated entity or entity-affiliated party'' after ``includes the authority'';
(B) in paragraph (1)--
(i) by striking ``to require an executive officer or a director to''; and
(ii) by striking ``loss'' and all that follows through
``person'' and inserting ``loss, if'';
(iii) in subparagraph (A), by inserting ``such entity or party or finance facility'' before ``was''; and
(iv) by striking subparagraph (B) and inserting the following:
``(B) the violation or practice involved a reckless disregard for the law or any applicable regulations or prior order of the Director;''; and
(C) in paragraph (4), by inserting ``loan or'' before
``asset'';
(5) in subsection (e), by inserting ``or entity-affiliated party''--
(A) before ``or any executive''; and
(B) before the period at the end; and
(6) in subsection (f)--
(A) by striking ``enterprise'' and inserting ``regulated entity, finance facility,''; and
(B) by striking ``or director'' and inserting ``director, or entity-affiliated party''.
SEC. 1152. TEMPORARY CEASE AND DESIST PROCEEDINGS.
Section 1372 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4632) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Grounds for Issuance.--
``(1) In general.--If the Director determines that the actions specified in the notice of charges served upon a regulated entity or any entity-affiliated party pursuant to section 1371(a), or the continuation thereof, is likely to cause insolvency or significant dissipation of assets or earnings of that entity, or is likely to weaken the condition of that entity prior to the completion of the proceedings conducted pursuant to sections 1371 and 1373, the Director may--
``(A) issue a temporary order requiring that regulated entity or entity-affiliated party to cease and desist from any such violation or practice; and
``(B) require that regulated entity or entity-affiliated party to take affirmative action to prevent or remedy such insolvency, dissipation, condition, or prejudice pending completion of such proceedings.
``(2) Additional requirements.--An order issued under paragraph (1) may include any requirement authorized under subsection 1371(d).'';
(2) in subsection (b)--
(A) by striking ``or director'' and inserting ``director, or entity-affiliated party''; and
(B) by striking ``enterprise'' each place that term appears and inserting ``regulated entity'';
(3) in subsection (c), by striking ``enterprise'' each place that term appears and inserting ``regulated entity'';
(4) in subsection (d)--
(A) by striking ``or director'' each place that term appears and inserting ``director, or entity-affiliated party''; and
(B) by striking ``An enterprise'' and inserting ``A regulated entity''; and
(5) in subsection (e)--
(A) by striking ``request the Attorney General of the United States to''; and
(B) by striking ``or may, under the direction and control of the Attorney General, bring such action''.
SEC. 1153. REMOVAL AND PROHIBITION AUTHORITY.
(a) In General.--Part 1 of subtitle C of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4631 et seq.) is amended--
(1) by redesignating sections 1377 through 1379B (12 U.S.C. 4637-4641) as sections 1379 through 1379D, respectively; and
(2) by inserting after section 1376 (12 U.S.C. 4636) the following:
``SEC. 1377. REMOVAL AND PROHIBITION AUTHORITY.
``(a) Authority to Issue Order.--
``(1) In general.--The Director may serve upon a party described in paragraph (2), or any officer, director, or management of the Office of Finance a written notice of the intention of the Director to suspend or remove such party from office, or prohibit any further participation by such party, in any manner, in the conduct of the affairs of the regulated entity.
``(2) Applicability.--A party described in this paragraph is an entity-affiliated party or any officer, director, or management of the Office of Finance, if the Director determines that--
``(A) that party, officer, or director has, directly or indirectly--
``(i) violated--
``(I) any law or regulation;
``(II) any cease and desist order which has become final;
``(III) any condition imposed in writing by the Director in connection with the grant of any application or other request by such regulated entity; or
``(IV) any written agreement between such regulated entity and the Director;
``(ii) engaged or participated in any unsafe or unsound practice in connection with any regulated entity or business institution; or
``(iii) committed or engaged in any act, omission, or practice which constitutes a breach of such party's fiduciary duty;
``(B) by reason of the violation, practice, or breach described in subparagraph (A)--
``(i) such regulated entity or business institution has suffered or will probably suffer financial loss or other damage; or
``(ii) such party has received financial gain or other benefit; and
``(C) the violation, practice, or breach described in subparagraph (A)--
``(i) involves personal dishonesty on the part of such party; or
``(ii) demonstrates willful or continuing disregard by such party for the safety or soundness of such regulated entity or business institution.
``(b) Suspension Order.--
``(1) Suspension or prohibition authority.--If the Director serves written notice under subsection (a) upon a party subject to that subsection (a), the Director may, by order, suspend or remove such party from office, or prohibit such party from further participation in any manner in the conduct of the affairs of the regulated entity, if the Director--
``(A) determines that such action is necessary for the protection of the regulated entity; and
``(B) serves such party with written notice of the order.
``(2) Effective period.--Any order issued under this subsection--
``(A) shall become effective upon service; and
``(B) unless a court issues a stay of such order under subsection (g), shall remain in effect and enforceable until--
``(i) the date on which the Director dismisses the charges contained in the notice served under subsection (a) with respect to such party; or
``(ii) the effective date of an order issued under subsection (b).
``(3) Copy of order.--If the Director issues an order under subsection (b) to any party, the Director shall serve a copy of such order on any regulated entity with which such party is affiliated at the time such order is issued.
``(c) Notice, Hearing, and Order.--
``(1) Notice.--A notice under subsection (a) of the intention of the Director to issue an order under this section shall contain a statement of the facts constituting grounds for such action, and shall fix a time and place at which a hearing will be held on such action.
``(2) Timing of hearing.--A hearing shall be fixed for a date not earlier than 30 days, nor later than 60 days, after the date of service of notice under subsection (a), unless an earlier or a later date is set by the Director at the request of--
``(A) the party receiving such notice, and good cause is shown; or
``(B) the Attorney General of the United States.
``(3) Consent.--Unless the party that is the subject of a notice delivered under subsection (a) appears at the hearing in person or by a duly authorized representative, such party shall be deemed to have consented to the issuance of an order under this section.
``(4) Issuance of order of suspension.--The Director may issue an order under this section, as the Director may deem appropriate, if--
``(A) a party is deemed to have consented to the issuance of an order under paragraph (3); or
``(B) upon the record made at the hearing, the Director finds that any of the grounds specified in the notice have been established.
``(5) Effectiveness of order.--Any order issued under paragraph (4) shall become effective at the expiration of 30 days after the date of service upon the relevant regulated entity and party (except in the case of an order issued upon consent under paragraph (3), which shall become effective at the time specified therein). Such order shall remain effective and enforceable except to such extent as it is stayed, modified, terminated, or set aside by action of the Director or a reviewing court.
``(d) Prohibition of Certain Specific Activities.--Any person subject to an order issued under this section shall not--
``(1) participate in any manner in the conduct of the affairs of any regulated entity or the Office of Finance;
``(2) solicit, procure, transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or authorization with respect to any voting rights in any regulated entity;
``(3) violate any voting agreement previously approved by the Director; or
``(4) vote for a director, or serve or act as an entity-affiliated party of a regulated entity or as an officer or director of the Office of Finance.
``(e) Industry-Wide Prohibition.--
``(1) In general.--Except as provided in paragraph (2), any person who, pursuant to an order issued under this section, has been removed or suspended from office in a regulated entity or the Office of Finance, or prohibited from participating in the conduct of the affairs of a regulated entity or the Office of Finance, may not, while such order is in effect, continue or commence to hold any office in, or participate in any manner in the conduct of the affairs of, any regulated entity or the Office of Finance.
``(2) Exception if director provides written consent.--If, on or after the date on which an order is issued under this section which removes or suspends from office any party, or prohibits such party from participating in the conduct of the affairs of a regulated entity or the Office of Finance, such party receives the written consent of the Director, the order shall, to the extent of such consent, cease to apply to such party with respect to the regulated entity or such Office of Finance described in the written consent. Any such consent shall be publicly disclosed.
``(3) Violation of paragraph (1) treated as violation of order.--Any violation of paragraph (1) by any person who is subject to an order issued under subsection (h) shall be treated as a violation of the order.
``(f) Applicability.--This section shall only apply to a person who is an individual, unless the Director specifically finds that it should apply to a corporation, firm, or other business entity.
``(g) Stay of Suspension and Prohibition of Entity-Affiliated Party.--Not later than 10 days after the date on which any entity-affiliated party has been suspended from office or prohibited from participation in the conduct of the affairs of a regulated entity under this section, such party may apply to the United States District Court for the District of Columbia, or the United States district court for the judicial district in which the headquarters of the regulated entity is located, for a stay of such suspension or prohibition pending the completion of the administrative proceedings pursuant to subsection (c). The court shall have jurisdiction to stay such suspension or prohibition.
``(h) Suspension or Removal of Entity-Affiliated Party Charged With Felony.--
``(1) Suspension or prohibition.--
``(A) In general.--Whenever any entity-affiliated party is charged in any information, indictment, or complaint, with the commission of or participation in a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding 1 year under Federal or State law, the Director may, if continued service or participation by such party may pose a threat to the regulated entity or impair public confidence in the regulated entity, by written notice served upon such party, suspend such party from office or prohibit such party from further participation in any manner in the conduct of the affairs of any regulated entity.
``(B) Provisions applicable to notice.--
``(i) Copy.--A copy of any notice under subparagraph (A) shall be served upon the relevant regulated entity.
``(ii) Effective period.--A suspension or prohibition under subparagraph (A) shall remain in effect until the information, indictment, or complaint referred to in subparagraph (A) is finally disposed of, or until terminated by the Director.
``(2) Removal or prohibition.--
``(A) In general.--If a judgment of conviction or an agreement to enter a pretrial diversion or other similar program is entered against an entity-affiliated party in connection with a crime described in paragraph (1)(A), at such time as such judgment is not subject to further appellate review, the Director may, if continued service or participation by such party may pose a threat to the regulated entity or impair public confidence in the regulated entity, issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the regulated entity without the prior written consent of the Director.
``(B) Provisions applicable to order.--
``(i) Copy.--A copy of any order under subparagraph (A) shall be served upon the relevant regulated entity, at which time the entity-affiliated party who is subject to the order
(if a director or an officer) shall cease to be a director or officer of such regulated entity.
``(ii) Effect of acquittal.--A finding of not guilty or other disposition of the charge shall not preclude the Director from instituting proceedings after such finding or disposition to remove a party from office or to prohibit further participation in the affairs of a regulated entity pursuant to subsection (a) or (b).
``(iii) Effective period.--Unless terminated by the Director, any notice of suspension or order of removal issued under this subsection shall remain effective and outstanding until the completion of any hearing or appeal authorized under paragraph (4).
``(3) Authority of remaining board members.--
``(A) In general.--If at any time, because of the suspension of 1 or more directors pursuant to this section, there shall be on the board of directors of a regulated entity less than a quorum of directors not so suspended, all powers and functions vested in or exercisable by such board shall vest in and be exercisable by the director or directors on the board not so suspended, until such time as there shall be a quorum of the board of directors.
``(B) Appointment of temporary directors.--If all of the directors of a regulated entity are suspended pursuant to this section, the Director shall appoint persons to serve temporarily as directors pending the termination of such suspensions, or until such time as those who have been suspended cease to be directors of the regulated entity and their respective successors take office.
``(4) Hearing regarding continued participation.--
``(A) In general.--Not later than 30 days after the date of service of any notice of suspension or order of removal issued pursuant to paragraph (1) or (2), the entity-affiliated party may request in writing an opportunity to appear before the Director to show that the continued service or participation in the conduct of the affairs of the regulated entity by such party does not, or is not likely to, pose a threat to the interests of the regulated entity, or threaten to impair public confidence in the regulated entity.
``(B) Timing and form of hearing.--Upon receipt of a request for a hearing under subparagraph (A), the Director shall fix a time (not later than 30 days after the date of receipt of such request, unless extended at the request of such party) and place at which the entity-affiliated party may appear, personally or through counsel, before the Director or 1 or more designated employees of the Director to submit written materials (or, at the discretion of the Director, oral testimony) and oral argument.
``(C) Determination.--Not later than 60 days after the date of a hearing under subparagraph (B), the Director shall notify the entity-affiliated party whether the suspension or prohibition from participation in any manner in the conduct of the affairs of the regulated entity will be continued, terminated, or otherwise modified, or whether the order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the regulated entity will be rescinded or otherwise modified. Such notification shall contain a statement of the basis for any adverse decision of the Director.
``(5) Rules.--The Director is authorized to prescribe such rules as may be necessary to carry out this subsection.''.
(b) Conforming Amendments.--
(1) Safety and soundness act.--Subtitle C of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended--
(A) in section 1317(f), by striking ``section 1379B'' and inserting ``section 1379D'';
(B) in section 1373(a)--
(i) in paragraph (1), by striking ``or 1376(c)'' and inserting ``, 1376(c), or 1377'';
(ii) in paragraph (2), by inserting ``or 1377'' after''1371''; and
(iii) in paragraph (4), by inserting ``or removal or prohibition'' after ``cease and desist''; and
(C) in section 1374(a)--
(i) by striking ``or 1376'' and inserting ``1313B , 1376, or 1377''; and
(ii) by striking ``such section'' and inserting ``this title''.
(2) Fannie mae charter act.--Section 308(b) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723(b)) is amended in the second sentence, by striking ``The'' and inserting ``Except to the extent that action under section 1377 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 temporarily results in a lesser number, the''.
(3) Freddie mac charter act.--Section 303(a)(2)(A) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452(a)(2)(A)) is amended, in the second sentence, by striking ``The'' and inserting ``Except to the extent action under section 1377 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 temporarily results in a lesser number, the''.
SEC. 1154. ENFORCEMENT AND JURISDICTION.
Section 1375 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4635) is amended--
(1) by striking subsection (a) and inserting the following new subsection:
``(a) Enforcement.--The Director may, in the discretion of the Director, apply to the United States District Court for the District of Columbia, or the United States district court within the jurisdiction of which the headquarters of the regulated entity is located, for the enforcement of any effective and outstanding notice or order issued under this subtitle or subtitle B, or request that the Attorney General of the United States bring such an action. Such court shall have jurisdiction and power to order and require compliance with such notice or order.''; and
(2) in subsection (b), by striking ``or 1376'' and inserting ``1313B, 1376, or 1377''.
SEC. 1155. CIVIL MONEY PENALTIES.
Section 1376 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4636) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) In General.--The Director may impose a civil money penalty in accordance with this section on any regulated entity or any entity-affiliated party. The Director shall not impose a civil penalty in accordance with this section on any regulated entity or any entity-affiliated party for any violation that is addressed under section 1345(a).'';
(2) by striking subsection (b) and inserting the following:
``(b) Amount of Penalty.--
``(1) First tier.--A regulated entity or entity-affiliated party shall forfeit and pay a civil penalty of not more than
$10,000 for each day during which a violation continues, if such regulated entity or party--
``(A) violates any provision of this title, the authorizing statutes, or any order, condition, rule, or regulation under this title or any authorizing statute;
``(B) violates any final or temporary order or notice issued pursuant to this title;
``(C) violates any condition imposed in writing by the Director in connection with the grant of any application or other request by such regulated entity; or
``(D) violates any written agreement between the regulated entity and the Director.
``(2) Second tier.--Notwithstanding paragraph (1), a regulated entity or entity-affiliated party shall forfeit and pay a civil penalty of not more than $50,000 for each day during which a violation, practice, or breach continues, if--
``(A) the regulated entity or entity-affiliated party, respectively--
``(i) commits any violation described in any subparagraph of paragraph (1);
``(ii) recklessly engages in an unsafe or unsound practice in conducting the affairs of the regulated entity; or
``(iii) breaches any fiduciary duty; and
``(B) the violation, practice, or breach--
``(i) is part of a pattern of misconduct;
``(ii) causes or is likely to cause more than a minimal loss to the regulated entity; or
``(iii) results in pecuniary gain or other benefit to such party.
``(3) Third tier.--Notwithstanding paragraphs (1) and (2), any regulated entity or entity-affiliated party shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under paragraph (4) for each day during which such violation, practice, or breach continues, if such regulated entity or entity-affiliated party--
``(A) knowingly--
``(i) commits any violation described in any subparagraph of paragraph (1);
``(ii) engages in any unsafe or unsound practice in conducting the affairs of the regulated entity; or
``(iii) breaches any fiduciary duty; and
``(B) knowingly or recklessly causes a substantial loss to the regulated entity or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach.
``(4) Maximum amounts of penalties for any violation described in paragraph (3).--The maximum daily amount of any civil penalty which may be assessed pursuant to paragraph (3) for any violation, practice, or breach described in paragraph
(3) is--
``(A) in the case of any entity-affiliated party, an amount not to exceed $2,000,000; and
``(B) in the case of any regulated entity, $2,000,000.'';
(3) in subsection (c)--
(A) by striking ``enterprise'' each place that term appears and inserting ``regulated entity'';
(B) by inserting ``or entity-affiliated party'' before ``in writing''; and
(C) by inserting ``or entity-affiliated party'' before
``has been given'';
(4) in subsection (d)--
(A) by striking ``or director'' each place such term appears and inserting ``director, or entity-affiliated party'';
(B) by striking ``an enterprise'' and inserting ``a regulated entity'';
(C) by striking ``the enterprise'' and inserting ``the regulated entity'';
(D) by striking ``request the Attorney General of the United States to'';
(E) by inserting ``, or the United States district court within the jurisdiction of which the headquarters of the regulated entity is located,'' after ``District of Columbia'';
(F) by striking ``, or may, under the direction and control of the Attorney General of the United States, bring such an action''; and
(G) by striking ``and section 1374''; and
(5) in subsection (g), by striking ``An enterprise'' and inserting ``A regulated entity''.
SEC. 1156. CRIMINAL PENALTY.
(a) In General.--Subtitle C of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4631 et seq.) is amended by inserting after section 1377, as added by this Act, the following:
``SEC. 1378. CRIMINAL PENALTY.
``Whoever, being subject to an order in effect under section 1377, without the prior written approval of the Director, knowingly participates, directly or indirectly, in any manner (including by engaging in an activity specifically prohibited in such an order) in the conduct of the affairs of any regulated entity shall, notwithstanding section 3571 of title 18, be fined not more than $1,000,000, imprisoned for not more than 5 years, or both.''.
(b) Technical and Conforming Amendments.--The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended--
(1) in section 1379 (as so designated by this Act)--
(A) by striking ``an enterprise'' and inserting ``a regulated entity''; and
(B) by striking ``the enterprise'' and inserting ``the regulated entity'';
(2) in section 1379A (as so designated by this Act), by striking ``an enterprise'' and inserting ``a regulated entity'';
(3) in section 1379B(c) (as so designated by this Act), by striking ``enterprise'' and inserting ``regulated entity''; and
(4) in section 1379D (as so designated by this Act), by striking ``enterprise'' and inserting ``regulated entity''.
SEC. 1157. NOTICE AFTER SEPARATION FROM SERVICE.
Section 1379 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4637), as so designated by this Act, is amended--
(1) by striking ``2-year'' and inserting ``6-year'';
(2) by striking ``a director or executive officer of an enterprise'' and inserting ``an entity-affiliated party'';
(3) by striking ``director or officer'' each place that term appears and inserting ``entity-affiliated party''; and
(4) by striking ``enterprise.'' and inserting ``regulated entity.''.
SEC. 1158. SUBPOENA AUTHORITY.
(a) In General.--Section 1379B of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4641) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``administrative'';
(ii) by inserting ``, examination, or investigation'' after
``proceeding'';
(iii) by striking ``subtitle'' and inserting ``title''; and
(iv) by inserting ``or any designated representative thereof, including any person designated to conduct any hearing under this subtitle'' after ``Director''; and
(B) in paragraph (4), by striking ``issued by the Director'';
(2) in subsection (b), by inserting ``or in any territory or other place subject to the jurisdiction of the United States'' after ``State'';
(3) by striking subsection (c) and inserting the following:
``(c) Enforcement.--
``(1) In general.--The Director, or any party to proceedings under this subtitle, may apply to the United States District Court for the District of Columbia, or the United States district court for the judicial district of the United States in any territory in which such proceeding is being conducted, or where the witness resides or carries on business, for enforcement of any subpoena or subpoena duces tecum issued pursuant to this section.
``(2) Power of court.--The courts described under paragraph
(1) shall have the jurisdiction and power to order and require compliance with any subpoena issued under paragraph
(1).'';
(4) in subsection (d), by inserting ``enterprise-affiliated party'' before ``may allow''; and
(5) by adding at the end the following:
``(e) Penalties.--A person shall be guilty of a misdemeanor, and upon conviction, shall be subject to a fine of not more than $1,000 or to imprisonment for a term of not more than 1 year, or both, if that person willfully fails or refuses, in disobedience of a subpoena issued under subsection (c), to--
``(1) attend court;
``(2) testify in court;
``(3) answer any lawful inquiry; or
``(4) produce books, papers, correspondence, contracts, agreements, or such other records as requested in the subpoena.''.
Subtitle E--General Provisions
SEC. 1161. CONFORMING AND TECHNICAL AMENDMENTS.
(a) Amendments to 1992 Act.--The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.), as amended by this Act, is amended--
(1) in section 1315 (12 U.S.C. 4515)--
(A) in subsection (a)--
(i) by striking ``(a) Office Personnel.--The'' and inserting ``(a) In General.--Subject to title III of the Federal Housing Finance Regulatory Reform Act of 2008, the''; and
(ii) by striking ``the Office'' each place that term appears and inserting ``the Agency'';
(B) in subsection (c), by striking ``the Office'' and inserting ``the Agency'';
(C) in subsection (e), by striking ``the Office'' and inserting ``the Agency'';
(D) by striking subsection (d) and redesignating subsection
(e) as subsection (d); and
(E) by striking subsection (f);
(2) in section 1319A (12 U.S.C. 4520)--
(A) by striking ``(a) In General.--''; and
(B) by striking subsection (b);
(3) in section 1364(c) (12 U.S.C. 4614(c)), by striking the last sentence;
(4) by striking section 1383 (12 U.S.C. 1451 note);
(5) in each of sections 1319D, 1319E, and 1319F (12 U.S.C. 4523, 4524, 4525) by striking ``the Office'' each place that term appears and inserting ``the Agency''; and
(6) in each of sections 1319B and 1369(a)(3) (12 U.S.C. 4521, 4619(a)(3)), by striking ``Committee on Banking, Finance and Urban Affairs'' each place such term appears and inserting ``Committee on Financial Services''.
(b) Amendments to Fannie Mae Charter Act.--The Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.) is amended--
(1) in each of sections 303(c)(2) (12 U.S.C. 1718(c)(2)), 309(d)(3)(B) (12 U.S.C. 1723a(d)(3)(B)), and 309(k)(1) (12 U.S.C. 1723a(k)(1)), by striking ``Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development'' each place that term appears, and inserting ``Director of the Federal Housing Finance Agency''; and
(2) in section 309--
(A) in subsection (m) (12 U.S.C. 1723a(m))--
(i) in paragraph (1), by striking ``to the Secretary, in a form determined by the Secretary'' and inserting ``to the Director of the Federal Housing Finance Agency, in a form determined by the Director''; and
(ii) in paragraph (2), by striking ``to the Secretary, in a form determined by the Secretary'' and inserting ``to the Director of the Federal Housing Finance Agency, in a form determined by the Director'';
(B) in subsection (n) (12 U.S.C. 1723a(n))--
(i) in paragraph (1), by striking ``and the Secretary'' and inserting ``and the Director of the Federal Housing Finance Agency''; and
(ii) in paragraph (2), by striking ``Secretary'' each place that term appears and inserting ``Director of the Federal Housing Finance Agency''; and
(C) in paragraph (3)(B), by striking ``Secretary'' and inserting ``Director of the Federal Housing Finance Agency''.
(c) Amendments to Freddie Mac Charter Act.--The Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.) is amended--
(1) in each of sections 303(b)(2) (12 U.S.C. 1452(b)(2)), 303(h)(2) (12 U.S.C. 1452(h)(2)), and section 307(c)(1) (12 U.S.C. 1456(c)(1)), by striking ``Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development'' each place that term appears, and inserting ``Director of the Federal Housing Finance Agency'';
(2) in section 306 (12 U.S.C. 1455)--
(A) in subsection (c)(2), by inserting ``the'' after
``Secretary of'';
(B) in subsection (i)--
(i) by striking ``section 1316(c)'' and inserting ``section 306(c)''; and
(ii) by striking ``section 106'' and inserting ``section 1316''; and
(C) in subsection (j)(2), by striking ``of substantially'' and inserting ``or substantially''; and
(3) in section 307 (12 U.S.C. 1456)--
(A) in subsection (e)--
(i) in paragraph (1), by striking ``to the Secretary, in a form determined by the Secretary'' and inserting ``to the Director of the Federal Housing Finance Agency, in a form determined by the Director''; and
(ii) in paragraph (2), by striking ``to the Secretary, in a form determined by the Secretary'' and inserting ``to the Director of the Federal Housing Finance Agency, in a form determined by the Director''; and
(B) in subsection (f)--
(i) in paragraph (1), by striking ``and the Secretary'' and inserting ``and the Director of the Federal Housing Finance Agency'';
(ii) in paragraph (2), by striking ``the Secretary'' each place that term appears and inserting ``the Director of the Federal Housing Finance Agency''; and
(iii) in paragraph (3)(B), by striking ``Secretary'' and inserting ``Director of the Federal Housing Finance Agency''.
(d) Amendment to Title 18, United States Code.--Section 1905 of title 18, United States Code, is amended by striking
``Office of Federal Housing Enterprise Oversight'' and inserting ``Federal Housing Finance Agency''.
(e) Amendments to Flood Disaster Protection Act of 1973.--Section 102(f)(3)(A) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(3)(A)) is amended by striking
``Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development'' and inserting ``Director of the Federal Housing Finance Agency''.
(f) Amendment to Department of Housing and Urban Development Act.--Section 5 of the Department of Housing and Urban Development Act (42 U.S.C. 3534) is amended by striking subsection (d).
(g) Amendments to Title 5, United States Code.--Title 5, United States Code, is amended--
(1) in section 5313, by striking the item relating to the Director of the Office of Federal Housing Enterprise Oversight, Department of Housing and Urban Development and inserting the following new item:
``Director of the Federal Housing Finance Agency.''; and
(2) in section 3132(a)(1)--
(A) in subparagraph (B), by striking ``,, and'' and inserting ``, and'';
(B) in subparagraph (D)--
(i) by striking ``the Federal Housing Finance Board'';
(ii) by striking ``the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development'' and inserting ``the Federal Housing Finance Agency''; and
(iii) by striking ``or or'' at the end;
(C) in subparagraph (E), as added by section 8(d)(1)(B)(iii) of Public Law 107-123, by adding ``or'' at the end; and
(D) by redesignating subparagraph (E), as added by section 10702(c)(1)(C) of Public Law 107-171, as subparagraph (F).
(h) Amendment to Sarbanes-Oxley Act.--Section 105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(b)(5)(B)(ii)(II)) is amended by inserting ``and the Director of the Federal Housing Finance Agency,'' after
``Commission,''.
(i) Amendment to Federal Deposit Insurance Act.--Section 11(t)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1821(t)(2)(A)) is amended by adding at the end the following:
``(vii) Federal Housing Finance Agency.''.
SEC. 1162. PRESIDENTIALLY-APPOINTED DIRECTORS OF ENTERPRISES.
(a) Fannie Mae.--
(1) In general.--Section 308(b) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723(b)) is amended--
(A) in the first sentence, by striking ``eighteen persons, five of whom shall be appointed annually by the President of the United States, and the remainder of whom'' and inserting
``13 persons, or such other number that the Director determines appropriate, who'';
(B) in the second sentence, by striking ``appointed by the President'';
(C) in the third sentence--
(i) by striking ``appointed or''; and
(ii) by striking ``, except that any such appointed member may be removed from office by the President for good cause'';
(D) in the fourth sentence, by striking ``elective''; and
(E) by striking the fifth sentence.
(2) Transitional provision.--The amendments made by paragraph (1) shall not apply to any appointed position of the board of directors of the Federal National Mortgage Association until the expiration of the annual term for such position during which the effective date under section 1163 occurs.
(b) Freddie Mac.--
(1) In general.--Section 303(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452(a)(2)) is amended--
(A) in subparagraph (A)--
(i) in the first sentence, by striking ``18 persons, 5 of whom shall be appointed annually by the President of the United States and the remainder of whom'' and inserting ``13 persons, or such other number as the Director determines appropriate, who''; and
(ii) in the second sentence, by striking ``appointed by the President of the United States'';
(B) in subparagraph (B)--
(i) by striking ``such or''; and
(ii) by striking ``, except that any appointed member may be removed from office by the President for good cause''; and
(C) in subparagraph (C)--
(i) by striking the first sentence; and
(ii) by striking ``elective''.
(2) Transitional provision.--The amendments made by paragraph (1) shall not apply to any appointed position of the board of directors of the Federal Home Loan Mortgage Corporation until the expiration of the annual term for such position during which the effective date under section 1163 occurs.
SEC. 1163. EFFECTIVE DATE.
Except as otherwise specifically provided in this title, this title and the amendments made by this title shall take effect on, and shall apply beginning on, the date of enactment of this Act.
TITLE II--FEDERAL HOME LOAN BANKS
SEC. 1201. RECOGNITION OF DISTINCTIONS BETWEEN THE
ENTERPRISES AND THE FEDERAL HOME LOAN BANKS.
Section 1313 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4513) is amended by adding at the end the following:
``(f) Recognition of Distinctions Between the Enterprises and the Federal Home Loan Banks.--Prior to promulgating any regulation or taking any other formal or informal agency action of general applicability relating to the Federal Home Loan Banks, including the issuance of an advisory document or examination guidance, the Director shall consider the differences between the Federal Home Loan Banks and the enterprises with respect to--
``(1) the Banks'--
``(A) cooperative ownership structure;
``(B) the mission of providing liquidity to members;
``(C) affordable housing and community development mission;
``(D) capital structure; and
``(E) joint and several liability; and
``(2) any other differences that the Director considers appropriate.''.
SEC. 1202. DIRECTORS.
Section 7 of the Federal Home Loan Bank Act (12 U.S.C. 1427) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Number; Election; Qualifications; Conflicts of Interest.--
``(1) In general.--Subject to paragraphs (2) through (4), the management of each Federal Home Loan Bank shall be vested in a board of 13 directors, or such other number as the Director determines appropriate.
``(2) Board makeup.--The board of directors of each Bank shall be comprised of--
``(A) member directors, who shall comprise at least the majority of the members of the board of directors; and
``(B) independent directors, who shall comprise not fewer than \2/5\ of the members of the board of directors.
``(3) Selection criteria.--
``(A) In general.--Each member of the board of directors shall be--
``(i) elected by plurality vote of the members, in accordance with procedures established under this section; and
``(ii) a citizen of the United States.
``(B) Independent director criteria.--
``(i) In general.--Each independent director that is not a public interest director under clause (ii) shall have demonstrated knowledge of, or experience in, financial management, auditing and accounting, risk management practices, derivatives, project development, or organizational management, or such other knowledge or expertise as the Director may provide by regulation.
``(ii) Public interest.--Not fewer than 2 of the independent directors shall have more than 4 years of experience in representing consumer or community interests on banking services, credit needs, housing, or financial consumer protections.
``(iii) Conflicts of interest.--No independent director may, during the term of service on the board of directors, serve as an officer of any Federal Home Loan Bank or as a director, officer, or employee of any member of a Bank, or of any person that receives advances from a Bank.
``(4) Definitions.--For purposes of this section, the following definitions shall apply:
``(A) Independent director.--The terms `independent director' and `independent directorship' mean a member of the board of directors of a Federal Home Loan Bank who is a bona fide resident of the district in which the Federal Home Loan Bank is located, or the directorship held by such a person, respectively.
``(B) Member director.--The terms `member director' and
`member directorship' mean a member of the board of directors of a Federal Home Loan Bank who is an officer or director of a member institution that is located in the district in which the Federal Home Loan Bank is located, or the directorship held by such a person, respectively.'';
(2) by striking ``elective'' each place that term appears, other than in subsections (d), (e), and (f), and inserting
``member'';
(3) in subsection (b)--
(A) by striking the subsection heading and all that follows through ``Each elective directorship'' and inserting the following:
``(b) Directorships.--
``(1) Member directorships.--Each member directorship''; and
(B) by adding at the end the following:
``(2) Independent directorships.--
``(A) Elections.--Each independent director--
``(i) shall be elected by the members entitled to vote, from among eligible persons nominated, after consultation with the Advisory Council of the Bank, by the board of directors of the Bank; and
``(ii) shall be elected by a plurality of the votes of the members of the Bank at large, with each member having the number of votes for each such directorship as it has under paragraph (1) in an election to fill member directorships.
``(B) Criteria.--Nominees shall meet all applicable requirements prescribed in this section.
``(C) Nomination and election procedures.--Procedures for nomination and election of independent directors shall be prescribed by the bylaws of each Federal Home Loan Bank, in a manner consistent with the rules and regulations of the Agency.'';
(4) in subsection (c)--
(A) by striking ``elective'' each place that term appears and inserting ``member'', except--
(i) in the second sentence, the second place that term appears; and
(ii) each place that term appears in the fifth sentence; and
(B) in the second sentence--
(i) by inserting ``(A) except as provided in clause (B) of this sentence,'' before ``if at any time''; and
(ii) by inserting before the period at the end the following: ``, and (B) clause (A) of this sentence shall not apply to the directorships of any Federal Home Loan Bank resulting from the merger of any 2 or more such Banks'';
(5) in subsection (d)--
(A) in the first sentence--
(i) by striking ``, whether elected or appointed,''; and
(ii) by striking ``3 years'' and inserting ``4 years'';
(B) in the second sentence--
(i) by striking ``Federal Home Loan Bank System Modernization Act of 1999'' and inserting ``Federal Housing Finance Regulatory Reform Act of 2008'';
(ii) by striking ``\1/3\'' and inserting ``\1/4\''; and
(iii) by striking ``or appointed''; and
(C) in the third sentence--
(i) by striking ``an elective'' each place that term appears and inserting ``a''; and
(ii) by striking ``in any elective directorship or elective directorships'';
(6) in subsection (f)--
(A) by striking paragraph (2);
(B) by striking ``appointed or'' each place that term appears; and
(C) in paragraph (3)--
(i) by striking ``(3) Elected bank directors.--'' and inserting ``(2) Election process.--''; and
(ii) by striking ``elective'' each place that term appears;
(7) in subsection (i)--
(A) in paragraph (1), by striking ``Subject to paragraph
(2), each'' and inserting ``Each''; and
(B) by striking paragraph (2) and inserting the following:
``(2) Annual report.--The Director shall include, in the annual report submitted to the Congress pursuant to section 1319B of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, information regarding the compensation and expenses paid by the Federal Home Loan Banks to the directors on the boards of directors of the Banks.''; and
(8) by adding at the end the following:
``(l) Transition Rule.--Any member of the board of directors of a Bank elected or appointed in accordance with this section prior to the date of enactment of this subsection may continue to serve as a member of that board of directors for the remainder of the existing term of service.''.
SEC. 1203. DEFINITIONS.
Section 2 of the Federal Home Loan Bank Act (12 U.S.C. 1422) is amended--
(1) by striking paragraphs (1), (10), and (11);
(2) by redesignating paragraphs (2) through (9) as paragraphs (1) through (8), respectively;
(3) by redesignating paragraphs (12) and (13) as paragraphs
(9) and (10), respectively; and
(4) by adding at the end the following:
``(11) Director.--The term `Director' means the Director of the Federal Housing Finance Agency.
``(12) Agency.--The term `Agency' means the Federal Housing Finance Agency, established under section 1311 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992.''.
SEC. 1204. AGENCY OVERSIGHT OF FEDERAL HOME LOAN BANKS.
The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.), other than in provisions of that Act added or amended otherwise by this Act, is amended--
(1) by striking sections 2A and 2B (12 U.S.C. 1422a, 1422b);
(2) by striking section 18 (12 U.S.C. 1438) and inserting the following:
``SEC. 18. ADMINISTRATIVE PROVISIONS.
``(a) Acquisition Authority.--The Director of the Office of Thrift Supervision, utilizing the services of the Administrator of General Services (hereinafter referred to as the `Administrator'), and subject to any limitation hereon which may hereafter be imposed in appropriation Acts, is hereby authorized--
``(1) to acquire, in the name of the United States, real property in the District of Columbia, for the purposes set forth in this section;
``(2) to construct, develop, furnish, and equip such buildings thereon and such facilities as in its judgment may be appropriate to provide, to such extent as the Director of the Office of Thrift Supervision may deem advisable, suitable and adequate quarters and facilities for the Director of the Office of Thrift Supervision and the agencies under its administration or supervision;
``(3) to enlarge, remodel, or reconstruct any of the same; and
``(4) to make or enter into contracts for any of the foregoing.
``(b) Advances.--The Director of the Office of Thrift Supervision may require of the respective banks, and they shall make to the Director of the Office of Thrift Supervision, such advances of funds for the purposes set out in subsection (a) as in the sole judgment of the Director of the Office of Thrift Supervision may from time to time be advisable. Such advances shall be apportioned by the Director of the Office of Thrift Supervision among the banks in proportion to the total assets of the respective banks, determined in such manner and as of such times as the Director of the Office of Thrift Supervision may prescribe. Each such advance shall bear interest at the rate of 4 \1/2\ per centum per annum from the date of the advance and shall be repaid by the Director of the Office of Thrift Supervision in such installments and over such period, not longer than twenty-five years from the making of the advance, as the Director of the Office of Thrift Supervision may determine. Payments of interest and principal upon such advances shall be made from receipts of the Director of the Office of Thrift Supervision or from other sources which may from time to time be available to the Director of the Office of Thrift Supervision. The obligation of the Director of the Office of Thrift Supervision to make any such payment shall not be regarded as an obligation of the United States. To such extent as the Director of the Office of Thrift Supervision may prescribe any such obligation shall be regarded as a legal investment for the purposes of subsections (g) and (h) of section 11 and for the purposes of section 16.
``(c) Plans and Designs.--The plans and designs for such buildings and facilities and for any such enlargement, remodeling, or reconstruction shall, to such extent as the chairperson of the Director of the Office of Thrift Supervision may request, be subject to the approval of the Director.
``(d) Custody, Management and Control.--Upon the making of arrangements mutually agreeable to the Director of the Office of Thrift Supervision and the Administrator, which arrangements may be modified from time to time by mutual agreement between them and may include but shall not be limited to the making of payments by the Director of the Office of Thrift Supervision and such agencies to the Administrator and by the Administrator to the Director of the Office of Thrift Supervision, the custody, management, and control of such buildings and facilities and of such real property shall be vested in the Administrator in accordance therewith. Until the making of such arrangements, such custody, management, and control, including the assignment and allotment and the reassignment and reallotment of building and other space, shall be vested in the Director of the Office of Thrift Supervision.
``(e) Proceeds.--Any proceeds (including advances) received by the Director of the Office of Thrift Supervision in connection with this subsection, and any proceeds from the sale or other disposition of real or other property acquired by the Director of the Office of Thrift Supervision under this section, shall be considered as receipts of the Director of the Office of Thrift Supervision, and obligations and expenditures of the Director of the Office of Thrift Supervision and such agencies in connection with this section shall not be considered as administrative expenses. As used in this section, the term `property' shall include interests in property.
``(f) Budget Program.--
``(1) In general.--With respect to its functions under this section, the Director of the Office of Thrift Supervision shall--
``(A) annually prepare and submit a budget program as provided in title I of the Government Corporation Control Act with regard to wholly owned Government corporations, and for purposes of this paragraph, the terms `wholly owned Government corporations' and `Government corporations', wherever used in such title, shall include the Director of the Office of Thrift Supervision; and
``(B) maintain an integral set of accounts which shall be audited by the General Accounting Office in accordance with the principles and procedures applicable to commercial corporate transactions, as provided in such title, and no other settlement or adjustment shall be required with respect to transactions under this section or with respect to claims, demands, or accounts by or against any person arising thereunder.
``(2) Miscellaneous provisions.--The first budget program shall be for the first full fiscal year beginning on or after the date of enactment of this subsection. Except as otherwise provided in this section or by the Director of the Office of Thrift Supervision, the provisions of this section and the functions thereby or thereunder subsisting shall be applicable and exercisable notwithstanding and without regard to the Act of June 20, 1938 (D.C. Code, secs. 5-413--5-428), except that the proviso of section 16 thereof shall apply to any building constructed under this section, and section 306 of the Act of July 30, 1947 (61 Stat. 584), or any other provision of law relating to the construction, alteration, repair, or furnishing of public or other buildings or structures or the obtaining of sites therefor, but any person or body in whom any such function is vested may provide for delegation or redelegation of the exercise of such function.
``(g) Limitation.--No obligation shall be incurred and no expenditure, except in liquidation of obligation, shall be made pursuant to paragraphs (1) and (2) of subsection (a), if the total amount of all obligations incurred pursuant thereto would thereupon exceed $13,200,000, or such greater amount as may be provided in an appropriations Act or other law.''.
(3) in section 11 (12 U.S.C. 1431)--
(A) in subsection (b)--
(i) in the first sentence--
(I) by striking ``The Board'' and inserting ``The Office of Finance, as agent for the Banks,''; and
(II) by striking ``the Board'' and inserting ``such Office''; and
(ii) in the second and fourth sentences, by striking ``the Board'' each place such term appears and inserting ``the Office of Finance'';
(B) in subsection (c)--
(i) by striking ``the Board'' the first place such term appears and inserting ``the Office of Finance, as agent for the Banks,''; and
(ii) by striking ``the Board'' the second place such term appears and inserting ``such Office''; and
(C) in subsection (f)--
(i) by striking the 2 commas after ``permit'' and inserting
``or''; and
(ii) by striking the comma after ``require'';
(4) in section 6 (12 U.S.C. 1426)--
(A) in subsection (b)(1), in the matter preceding subparagraph (A), by striking ``Finance Board approval'' and inserting ``approval by the Director''; and
(B) in each of subsections (c)(4)(B) and (d)(2), by striking ``Finance Board regulations'' each place that term appears and inserting ``regulations of the Director'';
(5) in section 10(b) (12 U.S.C. 1430(b))--
(A) in the subsection heading, by striking ``Formal Board Resolution'' and inserting ``Approval of Director''; and
(B) by striking ``by formal resolution'';
(6) in section 21(b)(5) (12 U.S.C. 1441(b)(5)), by striking
``Chairperson of the Federal Housing Finance Board'' and inserting ``Director'';
(7) in section 15 (12 U.S.C. 1435), by inserting ``or the Director'' after ``the Board'';
(8) by striking ``the Board'' each place that term appears and inserting ``the Director'';
(9) by striking ``The Board'' each place that term appears and inserting ``The Director'';
(10) by striking ``the Finance Board'' each place that term appears and inserting ``the Director'';
(11) by striking ``The Finance Board'' each place that term appears and inserting ``The Director''; and
(12) by striking ``Federal Housing Finance Board'' each place that term appears and inserting ``Director''.
SEC. 1205. HOUSING GOALS.
The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended by inserting after section 10b the following new section:
``SEC. 10C. HOUSING GOALS.
``(a) In General.--The Director shall establish housing goals with respect to the purchase of mortgages, if any, by the Federal Home Loan Banks. Such goals shall be consistent with the goals established under sections 1331 through 1334 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992.
``(b) Considerations.--In establishing the goals required by subsection (a), the Director shall consider the unique mission and ownership structure of the Federal Home Loan Banks.
``(c) Transition Period.--To facilitate an orderly transition, the Director shall establish interim target goals for purposes of this section for each of the 2 calendar years following the date of enactment of this section.
``(d) Monitoring and Enforcement of Goals.--The requirements of section 1336 of the Federal Housing Enterprises Safety and Soundness Act of 1992, shall apply to this section, in the same manner and to the same extent as that section applies to the Federal housing enterprises.
``(e) Annual Report.--The Director shall annually report to Congress on the performance of the Banks in meeting the goals established under this section.''.
SEC. 1206. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS.
Section 4(a)(1) of the Federal Home Loan Bank Act (12 U.S.C. 1424(a)(1)) is amended--
(1) by inserting after ``savings bank,'' the following:
``community development financial institution,''; and
(2) in subparagraph (B), by inserting after ``United States,'' the following: ``or, in the case of a community development financial institution, is certified as a community development financial institution under the Community Development Banking and Financial Institutions Act of 1994.''.
SEC. 1207. SHARING OF INFORMATION AMONG FEDERAL HOME LOAN
BANKS.
The Federal Home Loan Bank Act is amended by inserting after section 20 (12 U.S.C. 1440) the following new section:
``SEC. 20A. SHARING OF INFORMATION AMONG FEDERAL HOME LOAN
BANKS.
``(a) Information on Financial Condition.--In order to enable each Federal Home Loan Bank to evaluate the financial condition of one or more of the other Federal Home Loan Banks individually and the Federal Home Loan Bank System (including any risks associated with the issuance or repayment of consolidated Federal Home Loan Bank bonds and debentures or other borrowings and the joint and several liabilities of the Banks incurred due to such borrowings), as well as to comply with any of its obligations under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), the Director shall make available to the Banks such reports, records, or other information as may be available, relating to the condition of any Federal Home Loan Bank.
``(b) Sharing of Information.--
``(1) In general.--The Director shall promulgate regulations to facilitate the sharing of information made available under subsection (a) directly among the Federal Home Loan Banks.
``(2) Limitation.--Notwithstanding paragraph (1), a Federal Home Loan Bank responding to a request from another Bank or from the Director for information pursuant to this section may request that the Director determine that such information is proprietary and that the public interest requires that such information not be shared.
``(c) Limitation.--Nothing in this section shall affect the obligations of any Federal Home Loan Bank under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) or the regulations issued by the Securities and Exchange Commission thereunder.''.
SEC. 1208. EXCLUSION FROM CERTAIN REQUIREMENTS.
(a) In General.--The Federal Home Loan Banks shall be exempt from compliance with--
(1) sections 13(e), 14(a), and 14(c) of the Securities Exchange Act of 1934, and related Commission regulations;
(2) section 15 of the Securities Exchange Act of 1934, and related Commission regulations, with respect to transactions in the capital stock of a Federal Home Loan Bank;
(3) section 17A of the Securities Exchange Act of 1934, and related Commission regulations, with respect to the transfer of the securities of a Federal Home Loan Bank; and
(4) the Trust Indenture Act of 1939.
(b) Member Exemption.--The members of the Federal Home Loan Bank System shall be exempt from compliance with sections 13(d), 13(f), 13(g), 14(d), and 16 of the Securities Exchange Act of 1934, and related Commission regulations, with respect to ownership of or transactions in the capital stock of the Federal Home Loan Banks by such members.
(c) Exempted and Government Securities.--
(1) Capital stock.--The capital stock issued by each of the Federal Home Loan Banks under section 6 of the Federal Home Loan Bank Act are--
(A) exempted securities, within the meaning of section 3(a)(2) of the Securities Act of 1933; and
(B) exempted securities, within the meaning of section 3(a)(12)(A) of the Securities Exchange Act of 1934, except to the extent provided in section 38 of that Act.
(2) Other obligations.--The debentures, bonds, and other obligations issued under section 11 of the Federal Home Loan Bank Act (12 U.S.C. 1431) are--
(A) exempted securities, within the meaning of section 3(a)(2) of the Securities Act of 1933;
(B) government securities, within the meaning of section 3(a)(42) of the Securities Exchange Act of 1934; and
(C) government securities, within the meaning of section 2(a)(16) of the Investment Company Act of 1940.
(3) Brokers and dealers.--A person (other than a Federal Home Loan Bank effecting transactions for members of the Federal Home Loan Bank System) that effects transactions in the capital stock or other obligations of a Federal Home Loan Bank, for the account of others or for that person's own account, as applicable, is a broker or dealer, as those terms are defined in paragraphs (4) and (5), respectively, of section 3(a) of the Securities Exchange Act of 1934, but is excluded from the definition of--
(A) the term ``government securities broker'' under section 3(a)(43) of the Securities Exchange Act of 1934; and
(B) the term ``government securities dealer'' under section 3(a)(44) of the Securities Exchange Act of 1934.
(d) Exemption From Reporting Requirements.--The Federal Home Loan Banks shall be exempt from periodic reporting requirements under the securities laws pertaining to the disclosure of--
(1) related party transactions that occur in the ordinary course of the business of the Banks with members; and
(2) the unregistered sales of equity securities.
(e) Tender Offers.--Commission rules relating to tender offers shall not apply in connection with transactions in the capital stock of the Federal Home Loan Banks.
(f) Regulations.--
(1) In general.--The Commission shall promulgate such rules and regulations as may be necessary or appropriate in the public interest or in furtherance of this section and the exemptions provided in this section.
(2) Considerations.--In issuing regulations under this section, the Commission shall consider the distinctive characteristics of the Federal Home Loan Banks when evaluating--
(A) the accounting treatment with respect to the payment to the Resolution Funding Corporation;
(B) the role of the combined financial statements of the Federal Home Loan Banks;
(C) the accounting classification of redeemable capital stock; and
(D) the accounting treatment related to the joint and several nature of the obligations of the Banks.
(g) Definitions.--As used in this section--
(1) the terms ``Bank'', ``Federal Home Loan Bank'',
``member'', and ``Federal Home Loan Bank System'' have the same meanings as in section 2 of the Federal Home Loan Bank Act (12 U.S.C. 1422);
(2) the term ``Commission'' means the Securities and Exchange Commission; and
(3) the term ``securities laws'' has the same meaning as in section 3(a)(47) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(47)).
SEC. 1209. VOLUNTARY MERGERS.
Section 26 of the Federal Home Loan Bank Act (12 U.S.C. 1446) is amended--
(1) by striking ``Whenever'' and inserting ``(a) In General.--Whenever''; and
(2) by adding at the end the following:
``(b) Voluntary Mergers Authorized.--
``(1) In general.--Any Federal Home Loan Bank may, with the approval of the Director and of the boards of directors of the Banks involved, merge with another Bank.
``(2) Regulations required.--The Director shall promulgate regulations establishing the conditions and procedures for the consideration and approval of any voluntary merger described in paragraph (1), including the procedures for Bank member approval.''.
SEC. 1210. AUTHORITY TO REDUCE DISTRICTS.
Section 3 of the Federal Home Loan Bank Act (12 U.S.C. 1423) is amended--
(1) by striking ``As soon'' and inserting ``(a) In General.--As soon''; and
(2) by adding at the end the following:
``(b) Authority to Reduce Districts.--Notwithstanding subsection (a), the number of districts may be reduced to a number less than 8--
``(1) pursuant to a voluntary merger between Banks, as approved pursuant to section 26(b); or
``(2) pursuant to a decision by the Director to liquidate a Bank pursuant to section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992.''.
SEC. 1211. COMMUNITY FINANCIAL INSTITUTION MEMBERS.
(a) Total Asset Requirement.--Paragraph (10) of section 2 of the Federal Home Loan Bank Act (12 U.S.C. 1422(10)), as so redesignated by section 201(3) of this Act, is amended by striking ``$500,000,000'' each place such term appears and inserting ``$1,000,000,000''.
(b) Use of Advances for Community Development Activities.--Section 10(a) of the Federal Home Loan Bank Act (12 U.S.C. 1430(a)) is amended--
(1) in paragraph (2)(B)--
(A) by striking ``and''; and
(B) by inserting ``, and community development activities'' before the period at the end;
(2) in paragraph (3)(E), by inserting ``or community development activities'' after ``agriculture,''; and
(3) in paragraph (6)--
(A) by striking ``and''; and
(B) by inserting ``, and `community development activities'
'' before ``shall''.
SEC. 1212. PUBLIC USE DATA BASE; REPORTS TO CONGRESS.
Section 10 of the Federal Home Loan Bank Act (12 U.S.C. 1430) is amended--
(1) in subsection (j)(12)--
(A) by striking subparagraph (C) and inserting the following:
``(C) Reports.--The Director shall annually report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the collateral pledged to the Banks, including an analysis of collateral by type and by Bank district.''; and
(B) by adding at the end the following:
``(D) Submission to congress.--The Director shall submit the reports under subparagraphs (A) and (C) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, not later than 180 days after the date of enactment of the Federal Housing Finance Regulatory Reform Act of 2008.''; and
(2) by adding at the end the following:
``(k) Public Use Database.--
``(1) Data.--Each Federal Home Loan Bank shall provide to the Director, in a form determined by the Director, census tract level data relating to mortgages purchased, if any, including--
``(A) data consistent with that reported under section 1323 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992;
``(B) data elements required to be reported under the Home Mortgage Disclosure Act of 1975; and
``(C) any other data elements that the Director considers appropriate.
``(2) Public use database.--
``(A) In general.--The Director shall make available to the public, in a form that is useful to the public (including forms accessible electronically), and to the extent practicable, the data provided to the Director under paragraph (1).
``(B) Proprietary information.--Not withstanding subparagraph (A), the Director may not provide public access to, or disclose to the public, any information required to be submitted under this subsection that the Director determines is proprietary or that would provide personally identifiable information and that is not otherwise publicly accessible through other forms, unless the Director determines that it is in the public interest to provide such information.''.
SEC. 1213. SEMIANNUAL REPORTS.
Section 21B of the Federal Home Loan Bank Act is amended in subsection (f)(2)(C), by adding at the end the following:
``(v) Semiannual reports.--The Director shall report semiannually to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the projected date for the completion of contributions required by this section.''.
SEC. 1214. LIQUIDATION OR REORGANIZATION OF A FEDERAL HOME
LOAN BANK.
Section 26 of the Federal Home Loan Bank Act (12 U.S.C. 1446) is amended by adding at the end the following: ``At least 30 days prior to liquidating or reorganizing any Bank under this section, the Director shall notify the Bank of its determination and the facts and circumstances upon which such determination is based. The Bank may contest that determination in a hearing before the Director, in which all issues shall be determined on the record pursuant to section 554 of title 5, United States Code.''.
SEC. 1215. STUDY AND REPORT TO CONGRESS ON SECURITIZATION OF
ACQUIRED MEMBER ASSETS.
(a) Study.--The Director shall conduct a study on securitization of home mortgage loans purchased or to be purchased from member financial institutions under the Acquired Member Assets programs. In conducting the study, the Director shall establish a process for the formal submission of comments.
(b) Elements.--The study shall encompass--
(1) the benefits and risks associated with securitization of Acquired Member Assets;
(2) the potential impact of securitization upon liquidity in the mortgage and broader credit markets;
(3) the ability of the Federal Home Loan Bank or Banks in question to manage the risks associated with such a program;
(4) the impact of such a program on the existing activities of the Banks, including their mortgage portfolios and advances; and
(5) the joint and several liability of the Banks and the cooperative structure of the Federal Home Loan Bank System.
(c) Consultations.--In conducting the study under this section, the Director shall consult with the Federal Home Loan Banks, the Banks' fiscal agent, representatives of the mortgage lending industry, practitioners in the structured finance field, and other experts as needed.
(d) Report.--Not later than 1 year after the date of enactment of this Act, the Director shall submit a report to Congress on the results of the study conducted under subsection (a), including policy recommendations based on the analysis of the Director of the feasibility of mortgage-backed securities issuance by a Federal Home Loan Bank or Banks and the risks and benefits associated with such program or programs.
(e) Definitions.--As used in this section, the terms
``member'', ``Bank'', and ``Federal Home Loan Bank'' have the same meanings as in section 2 of the Federal Home Loan Bank Act (12 U.S.C. 1422).
SEC. 1216. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Right to Financial Privacy Act of 1978.--Section 1113(o) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3413(o)) is amended--
(1) by striking ``Federal Housing Finance Board'' and inserting ``Federal Housing Finance Agency''; and
(2) by striking ``Federal Housing Finance Board's'' and inserting ``Federal Housing Finance Agency's''.
(b) Riegle Community Development and Regulatory Improvement Act of 1994.--Section 117(e) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4716(e)) is amended by striking ``Federal Housing Finance Board'' and inserting ``Federal Housing Finance Agency''.
(c) Title 18, United States Code.--Title 18, United States Code, is amended by striking ``Federal Housing Finance Board'' each place such term appears in each of sections 212, 657, 1006, and 1014, and inserting ``Federal Housing Finance Agency''.
(d) MAHRA Act of 1997.--Section 517(b)(4) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by striking ``Federal Housing Finance Board'' and inserting ``Federal Housing Finance Agency''.
(e) Title 44, United States Code.--Section 3502(5) of title 44, United States Code, is amended by striking ``Federal Housing Finance Board'' and inserting ``Federal Housing Finance Agency''.
(f) Access to Local TV Act of 2000.--Section 1004(d)(2)(D)(iii) of the Launching Our Communities' Access to Local Television Act of 2000 (47 U.S.C. 1103(d)(2)(D)(iii)) is amended by striking ``Office of Federal Housing Enterprise Oversight, the Federal Housing Finance Board'' and inserting ``Federal Housing Finance Agency''.
(g) FIRREA.--Section 1216 of the Financial Institutions Reform, Recovery, and Enhancement Act of 1989 (12 U.S.C. 1833e) is amended--
(1) in subsection (a), by striking paragraph (3) and inserting the following:
``(3) the Federal Housing Finance Agency;'';
(2) in subsection (b), by striking ``Federal National Mortgage Association'' and inserting ``Federal Home Loan Banks, the Federal National Mortgage Association,''; and
(3) in subsection (c), by striking ``Finance Board'' and inserting ``Finance Agency''.
SEC. 1217. STUDY ON FEDERAL HOME LOAN BANK ADVANCES.
(a) In General.--Not later than 1 year after the date of enactment of this Act, the Director shall conduct a study and submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House or Representatives on the extent to which loans and securities used as collateral to support Federal Home Loan Bank advances are consistent with the interagency guidance on nontraditional mortgage products.
(b) Required Content.--The study required under subsection
(a) shall--
(1) consider and recommend any additional regulations, guidance, advisory bulletins, or other administrative actions necessary to ensure that the Federal Home Loan Banks are not supporting loans with predatory characteristics; and
(2) include an opportunity for the public to comment on any recommendations made under paragraph (1).
SEC. 1218. FEDERAL HOME LOAN BANK REFINANCING AUTHORITY FOR
CERTAIN RESIDENTIAL MORTGAGE LOANS.
Section 10(j)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1430(j)(2)) is amended--
(1) in subparagraph (A), by striking ``or'' at the end;
(2) in subparagraph (B), by striking the period at the end and inserting ``; or''; and
(3) by adding at the end the following:
``(C) during the 2-year period beginning on the date of enactment of this subparagraph, refinance loans that are secured by a first mortgage on a primary residence of any family having an income at or below 80 percent of the median income for the area.''.
TITLE III--TRANSFER OF FUNCTIONS, PERSONNEL, AND PROPERTY OF OFHEO AND
THE FEDERAL HOUSING FINANCE BOARD
Subtitle A--OFHEO
SEC. 1301. ABOLISHMENT OF OFHEO.
(a) In General.--Effective at the end of the 1-year period beginning on the date of enactment of this Act, the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development and the positions of the Director and Deputy Director of such Office are abolished.
(b) Disposition of Affairs.--During the 1-year period beginning on the date of enactment of this Act, the Director of the Office of Federal Housing Enterprise Oversight, solely for the purpose of winding up the affairs of the Office of Federal Housing Enterprise Oversight--
(1) shall manage the employees of such Office and provide for the payment of the compensation and benefits of any such employee which accrue before the effective date of the transfer of such employee under section 1303; and
(2) may take any other action necessary for the purpose of winding up the affairs of the Office.
(c) Status of Employees Before Transfer.--The amendments made by title I and the abolishment of the Office of Federal Housing Enterprise Oversight under subsection (a) of this section may not be construed to affect the status of any employee of such Office as an employee of an agency of the United States for purposes of any other provision of law before the effective date of the transfer of any such employee under section 1303.
(d) Use of Property and Services.--
(1) Property.--The Director may use the property of the Office of Federal Housing Enterprise Oversight to perform functions which have been transferred to the Director for such time as is reasonable to facilitate the orderly transfer of functions transferred under any other provision of this Act or any amendment made by this Act to any other provision of law.
(2) Agency services.--Any agency, department, or other instrumentality of the United States, and any successor to any such agency, department, or instrumentality, which was providing supporting services to the Office of Federal Housing Enterprise Oversight before the expiration of the period under subsection (a) in connection with functions that are transferred to the Director shall--
(A) continue to provide such services, on a reimbursable basis, until the transfer of such functions is complete; and
(B) consult with any such agency to coordinate and facilitate a prompt and reasonable transition.
(e) Continuation of Services.--The Director may use the services of employees and other personnel of the Office of Federal Housing Enterprise Oversight, on a reimbursable basis, to perform functions which have been transferred to the Director for such time as is reasonable to facilitate the orderly transfer of functions pursuant to any other provision of this Act or any amendment made by this Act to any other provision of law.
(f) Savings Provisions.--
(1) Existing rights, duties, and obligations not affected.--Subsection (a) shall not affect the validity of any right, duty, or obligation of the United States, the Director of the Office of Federal Housing Enterprise Oversight, or any other person, which--
(A) arises under--
(i) the Federal Housing Enterprises Financial Safety and Soundness Act of 1992;
(ii) the Federal National Mortgage Association Charter Act;
(iii) the Federal Home Loan Mortgage Corporation Act; or
(iv) any other provision of law applicable with respect to such Office; and
(B) existed on the day before the date of abolishment under subsection (a).
(2) Continuation of suits.--No action or other proceeding commenced by or against the Director of the Office of Federal Housing Enterprise Oversight in connection with functions that are transferred to the Director of the Federal Housing Finance Agency shall abate by reason of the enactment of this Act, except that the Director of the Federal Housing Finance Agency shall be substituted for the Director of the Office of Federal Housing Enterprise Oversight as a party to any such action or proceeding.
SEC. 1302. CONTINUATION AND COORDINATION OF CERTAIN ACTIONS.
(a) In General.--All regulations, orders, and determinations described in subsection (b) shall remain in effect according to the terms of such regulations, orders, and determinations, and shall be enforceable by or against the Director or the Secretary of Housing and Urban Development, as the case may be, until modified, terminated, set aside, or superseded in accordance with applicable law by the Director or the Secretary, as the case may be, any court of competent jurisdiction, or operation of law.
(b) Applicability.--A regulation, order, or determination is described in this subsection if it--
(1) was issued, made, prescribed, or allowed to become effective by--
(A) the Office of Federal Housing Enterprise Oversight;
(B) the Secretary of Housing and Urban Development, and relates to the authority of the Secretary under--
(i) the Federal Housing Enterprises Financial Safety and Soundness Act of 1992;
(ii) the Federal National Mortgage Association Charter Act, with respect to the Federal National Mortgage Association; or
(iii) the Federal Home Loan Mortgage Corporation Act, with respect to the Federal Home Loan Mortgage Corporation; or
(C) a court of competent jurisdiction, and relates to functions transferred by this Act; and
(2) is in effect on the effective date of the abolishment under section 1301(a).
SEC. 1303. TRANSFER AND RIGHTS OF EMPLOYEES OF OFHEO.
(a) Transfer.--Each employee of the Office of Federal Housing Enterprise Oversight shall be transferred to the Agency for employment, not later than the effective date of the abolishment under section 1301(a), and such transfer shall be deemed a transfer of function for purposes of section 3503 of title 5, United States Code.
(b) Guaranteed Positions.--
(1) In general.--Each employee transferred under subsection
(a) shall be guaranteed a position with the same status, tenure, grade, and pay as that held on the day immediately preceding the transfer.
(2) No involuntary separation or reduction.--An employee transferred under subsection (a) holding a permanent position on the day immediately preceding the transfer may not be involuntarily separated or reduced in grade or compensation during the 12-month period beginning on the date of transfer, except for cause, or, in the case of a temporary employee, separated in accordance with the terms of the appointment of the employee.
(c) Appointment Authority for Excepted and Senior Executive Service Employees.--
(1) In general.--In the case of an employee occupying a position in the excepted service or the Senior Executive Service, any appointment authority established under law or by regulations of the Office of Personnel Management for filling such position shall be transferred, subject to paragraph (2).
(2) Decline of transfer.--The Director may decline a transfer of authority under paragraph (1) to the extent that such authority relates to--
(A) a position excepted from the competitive service because of its confidential, policymaking, policy-determining, or policy-advocating character; or
(B) a noncareer position in the Senior Executive Service
(within the meaning of section 3132(a)(7) of title 5, United States Code).
(d) Reorganization.--If the Director determines, after the end of the 1-year period beginning on the effective date of the abolishment under section 1301(a), that a reorganization of the combined workforce is required, that reorganization shall be deemed a major reorganization for purposes of affording affected employee retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code.
(e) Employee Benefit Programs.--
(1) In general.--Any employee of the Office of Federal Housing Enterprise Oversight accepting employment with the Agency as a result of a transfer under subsection (a) may retain, for 12 months after the date on which such transfer occurs, membership in any employee benefit program of the Agency or the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development, as applicable, including insurance, to which such employee belongs on the date of the abolishment under section 1301(a), if--
(A) the employee does not elect to give up the benefit or membership in the program; and
(B) the benefit or program is continued by the Director of the Federal Housing Finance Agency.
(2) Cost differential.--
(A) In general.--The difference in the costs between the benefits which would have been provided by the Office of Federal Housing Enterprise Oversight and those provided by this section shall be paid by the Director.
(B) Health insurance.--If any employee elects to give up membership in a health insurance program or the health insurance program is not continued by the Director, the employee shall be permitted to select an alternate Federal health insurance program not later than 30 days after the date of such election or notice, without regard to any other regularly scheduled open season.
SEC. 1304. TRANSFER OF PROPERTY AND FACILITIES.
Upon the effective date of its abolishment under section 1301(a), all property of the Office of Federal Housing Enterprise Oversight shall transfer to the Agency.
Subtitle B--Federal Housing Finance Board
SEC. 1311. ABOLISHMENT OF THE FEDERAL HOUSING FINANCE BOARD.
(a) In General.--Effective at the end of the 1-year period beginning on the date of enactment of this Act, the Federal Housing Finance Board (in this subtitle referred to as the
``Board'') is abolished.
(b) Disposition of Affairs.--During the 1-year period beginning on the date of enactment of this Act, the Board, solely for the purpose of winding up the affairs of the Board--
(1) shall manage the employees of the Board and provide for the payment of the compensation and benefits of any such employee which accrue before the effective date of the transfer of such employee under section 1313; and
(2) may take any other action necessary for the purpose of winding up the affairs of the Board.
(c) Status of Employees Before Transfer.--The amendments made by titles I and II and the abolishment of the Board under subsection (a) may not be construed to affect the status of any employee of the Board as an employee of an agency of the United States for purposes of any other provision of law before the effective date of the transfer of any such employee under section 1313.
(d) Use of Property and Services.--
(1) Property.--The Director may use the property of the Board to perform functions which have been transferred to the Director, for such time as is reasonable to facilitate the orderly transfer of functions transferred under any other provision of this Act or any amendment made by this Act to any other provision of law.
(2) Agency services.--Any agency, department, or other instrumentality of the United States, and any successor to any such agency, department, or instrumentality, which was providing supporting services to the Board before the expiration of the 1-year period under subsection (a) in connection with functions that are transferred to the Director shall--
(A) continue to provide such services, on a reimbursable basis, until the transfer of such functions is complete; and
(B) consult with any such agency to coordinate and facilitate a prompt and reasonable transition.
(e) Continuation of Services.--The Director may use the services of employees and other personnel of the Board, on a reimbursable basis, to perform functions which have been transferred to the Director for such time as is reasonable to facilitate the orderly transfer of functions pursuant to any other provision of this Act or any amendment made by this Act to any other provision of law.
(f) Savings Provisions.--
(1) Existing rights, duties, and obligations not affected.--Subsection (a) shall not affect the validity of any right, duty, or obligation of the United States, a member of the Board, or any other person, which--
(A) arises under the Federal Home Loan Bank Act, or any other provision of law applicable with respect to the Board; and
(B) existed on the day before the effective date of the abolishment under subsection (a).
(2) Continuation of suits.--No action or other proceeding commenced by or against the Board in connection with functions that are transferred under this Act to the Director shall abate by reason of the enactment of this Act, except that the Director shall be substituted for the Board or any member thereof as a party to any such action or proceeding.
SEC. 1312. CONTINUATION AND COORDINATION OF CERTAIN ACTIONS.
(a) In General.--All regulations, orders, determinations, and resolutions described under subsection (b) shall remain in effect according to the terms of such regulations, orders, determinations, and resolutions, and shall be enforceable by or against the Director until modified, terminated, set aside, or superseded in accordance with applicable law by the Director, any court of competent jurisdiction, or operation of law.
(b) Applicability.--A regulation, order, determination, or resolution is described under this subsection if it--
(1) was issued, made, prescribed, or allowed to become effective by--
(A) the Board; or
(B) a court of competent jurisdiction, and relates to functions transferred by this Act; and
(2) is in effect on the effective date of the abolishment under section 1311(a).
SEC. 1313. TRANSFER AND RIGHTS OF EMPLOYEES OF THE FEDERAL
HOUSING FINANCE BOARD.
(a) Transfer.--Each employee of the Board shall be transferred to the Agency for employment, not later than the effective date of the abolishment under section 1311(a), and such transfer shall be deemed a transfer of function for purposes of section 3503 of title 5, United States Code.
(b) Guaranteed Positions.--
(1) In general.--Each employee transferred under subsection
(a) shall be guaranteed a position with the same status, tenure, grade, and pay as that held on the day immediately preceding the transfer.
(2) No involuntary separation or reduction.--An employee holding a permanent position on the day immediately preceding the transfer may not be involuntarily separated or reduced in grade or compensation during the 12-month period beginning on the date of transfer, except for cause, or, if the employee is a temporary employee, separated in accordance with the terms of the appointment of the employee.
(c) Appointment Authority for Excepted Employees.--
(1) In general.--In the case of an employee occupying a position in the excepted service, any appointment authority established under law or by regulations of the Office of Personnel Management for filling such position shall be transferred, subject to paragraph (2).
(2) Decline of transfer.--The Director may decline a transfer of authority under paragraph (1), to the extent that such authority relates to a position excepted from the competitive service because of its confidential, policymaking, policy-determining, or policy-advocating character.
(d) Reorganization.--If the Director determines, after the end of the 1-year period beginning on the effective date of the abolishment under section 1311(a), that a reorganization of the combined workforce is required, that reorganization shall be deemed a major reorganization for purposes of affording affected employee retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code.
(e) Employee Benefit Programs.--
(1) In general.--Any employee of the Board accepting employment with the Agency as a result of a transfer under subsection (a) may retain, for 12 months after the date on which such transfer occurs, membership in any employee benefit program of the Agency or the Board, as applicable, including insurance, to which such employee belongs on the effective date of the abolishment under section 1311(a) if--
(A) the employee does not elect to give up the benefit or membership in the program; and
(B) the benefit or program is continued by the Director.
(2) Cost differential.--
(A) In general.--The difference in the costs between the benefits which would have been provided by the Board and those provided by this section shall be paid by the Director.
(B) Health insurance.--If any employee elects to give up membership in a health insurance program or the health insurance program is not continued by the Director, the employee shall be permitted to select an alternate Federal health insurance program not later than 30 days after the date of such election or notice, without regard to any other regularly scheduled open season.
SEC. 1314. TRANSFER OF PROPERTY AND FACILITIES.
Upon the effective date of the abolishment under section 1311(a), all property of the Board shall transfer to the Agency.
TITLE IV--HOPE FOR HOMEOWNERS
SEC. 1401. SHORT TITLE.
This title may be cited as the ``HOPE for Homeowners Act of 2008''.
SEC. 1402. ESTABLISHMENT OF HOPE FOR HOMEOWNERS PROGRAM.
(a) Establishment.--Title II of the National Housing Act
(12 U.S.C. 1707 et seq.) is amended by adding at the end the following:
``SEC. 257. HOPE FOR HOMEOWNERS PROGRAM.
``(a) Establishment.--There is established in the Federal Housing Administration a HOPE for Homeowners Program.
``(b) Purpose.--The purpose of the HOPE for Homeowners Program is--
``(1) to create an FHA program, participation in which is voluntary on the part of homeowners and existing loan holders to insure refinanced loans for distressed borrowers to support long-term, sustainable homeownership;
``(2) to allow homeowners to avoid foreclosure by reducing the principle balance outstanding, and interest rate charged, on their mortgages;
``(3) to help stabilize and provide confidence in mortgage markets by bringing transparency to the value of assets based on mortgage assets;
``(4) to target mortgage assistance under this section to homeowners for their principal residence;
``(5) to enhance the administrative capacity of the FHA to carry out its expanded role under the HOPE for Homeowners Program;
``(6) to ensure the HOPE for Homeowners Program remains in effect only for as long as is necessary to provide stability to the housing market; and
``(7) to provide servicers of delinquent mortgages with additional methods and approaches to avoid foreclosure.
``(c) Establishment and Implementation of Program Requirements.--
``(1) Duties of the board.--In order to carry out the purposes of the HOPE for Homeowners Program, the Board shall--
``(A) establish requirements and standards for the program; and
``(B) prescribe such regulations and provide such guidance as may be necessary or appropriate to implement such requirements and standards.
``(2) Duties of the secretary.--In carrying out any of the program requirements or standards established under paragraph
(1), the Secretary may issue such interim guidance and mortgagee letters as the Secretary determines necessary or appropriate.
``(d) Insurance of Mortgages.--The Secretary is authorized upon application of a mortgagee to make commitments to insure or to insure any eligible mortgage that has been refinanced in a manner meeting the requirements under subsection (e).
``(e) Requirements of Insured Mortgages.--To be eligible for insurance under this section, a refinanced eligible mortgage shall comply with all of the following requirements:
``(1) Lack of capacity to pay existing mortgage.--
``(A) Borrower certification.--
``(i) In general.--The mortgagor shall provide certification to the Secretary that the mortgagor has not intentionally defaulted on the mortgage or any other debt, and has not knowingly, or willfully and with actual knowledge, furnished material information known to be false for the purpose of obtaining any eligible mortgage.
``(ii) Penalties.--
``(I) False statement.--Any certification filed pursuant to clause (i) shall contain an acknowledgment that any willful false statement made in such certification is punishable under section 1001, of title 18, United States Code, by fine or imprisonment of not more than 5 years, or both.
``(II) Liability for repayment.--The mortgagor shall agree in writing that the mortgagor shall be liable to repay to the Federal Housing Administration any direct financial benefit achieved from the reduction of indebtedness on the existing mortgage or mortgages on the residence refinanced under this section derived from misrepresentations made in the certifications and documentation required under this subparagraph, subject to the discretion of the Secretary.
``(B) Current borrower debt-to-income ratio.--As of March 1, 2008, the mortgagor shall have had a ratio of mortgage debt to income, taking into consideration all existing mortgages of that mortgagor at such time, greater than 31 percent (or such higher amount as the Board determines appropriate).
``(2) Determination of principal obligation amount.--The principal obligation amount of the refinanced eligible mortgage to be insured shall--
``(A) be determined by the reasonable ability of the mortgagor to make his or her mortgage payments, as such ability is determined by the Secretary pursuant to section 203(b)(4) or by any other underwriting standards established by the Board; and
``(B) not exceed 90 percent of the appraised value of the property to which such mortgage relates.
``(3) Required waiver of prepayment penalties and fees.--All penalties for prepayment or refinancing of the eligible mortgage, and all fees and penalties related to default or delinquency on the eligible mortgage, shall be waived or forgiven.
``(4) Extinguishment of subordinate liens.--
``(A) Required agreement.--All holders of outstanding mortgage liens on the property to which the eligible mortgage relates shall agree to accept the proceeds of the insured loan as payment in full of all indebtedness under the eligible mortgage, and all encumbrances related to such eligible mortgage shall be removed. The Secretary may take such actions, subject to standards established by the Board under subparagraph (B), as may be necessary and appropriate to facilitate coordination and agreement between the holders of the existing senior mortgage and any existing subordinate mortgages, taking into consideration the subordinate lien status of such subordinate mortgages.
``(B) Shared appreciation.--
``(i) In general.--The Board shall establish standards and policies that will allow for the payment to the holder of any existing subordinate mortgage of a portion of any future appreciation in the property secured by such eligible mortgage that is owed to the Secretary pursuant to subsection
(k).
``(ii) Factors.--In establishing the standards and policies required under clause (i), the Board shall take into consideration--
``(I) the status of any subordinate mortgage;
``(II) the outstanding principal balance of and accrued interest on the existing senior mortgage and any outstanding subordinate mortgages;
``(III) the extent to which the current appraised value of the property securing a subordinate mortgage is less than the outstanding principal balance and accrued interest on any other liens that are senior to such subordinate mortgage; and
``(IV) such other factors as the Board determines to be appropriate.
``(C) Voluntary program.--This paragraph may not be construed to require any holder of any existing mortgage to participate in the program under this section generally, or with respect to any particular loan.
``(5) Term of mortgage.--The refinanced eligible mortgage to be insured shall--
``(A) bear interest at a single rate that is fixed for the entire term of the mortgage; and
``(B) have a maturity of not less than 30 years from the date of the beginning of amortization of such refinanced eligible mortgage.
``(6) Maximum loan amount.--The principal obligation amount of the eligible mortgage to be insured shall not exceed 132 percent of the dollar amount limitation in effect for 2007 under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a property of the applicable size.
``(7) Prohibition on second liens.--A mortgagor may not grant a new second lien on the mortgaged property during the first 5 years of the term of the mortgage insured under this section.
``(8) Appraisals.--Any appraisal conducted in connection with a mortgage insured under this section shall--
``(A) be based on the current value of the property;
``(B) be conducted in accordance with title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.);
``(C) be completed by an appraiser who meets the competency requirements of the Uniform Standards of Professional Appraisal Practice;
``(D) be wholly consistent with the appraisal standards, practices, and procedures under section 202(e) of this Act that apply to all loans insured under this Act; and
``(E) comply with the requirements of subsection (g) of this section (relating to appraisal independence).
``(9) Documentation and verification of income.--In complying with the FHA underwriting requirements under the HOPE for Homeowners Program under this section, the mortgagee under the mortgage shall document and verify the income of the mortgagor by procuring an Internal Revenue Service transcript of the income tax returns of the mortgagor for the 2 most recent years for which the filing deadline for such years has passed and by any other method, in accordance with procedures and standards that the Board or the Secretary shall establish.
``(10) Mortgage fraud.--The mortgagor shall not have been convicted under any provision of Federal or State law for fraud, including mortgage fraud.
``(11) Primary residence.--The mortgagor shall provide documentation satisfactory in the determination of the Secretary to prove that the residence covered by the mortgage to be insured under this section is occupied by the mortgagor as the primary residence of the mortgagor, and that such residence is the only residence in which the mortgagor has any present ownership interest.
``(f) Study of Auction or Bulk Refinance Program.--
``(1) Study.--The Board shall conduct a study of the need for and efficacy of an auction or bulk refinancing mechanism to facilitate refinancing of existing residential mortgages that are at risk for foreclosure into mortgages insured under this section. The study shall identify and examine various options for mechanisms under which lenders and servicers of such mortgages may make bids for forward commitments for such insurance in an expedited manner.
``(2) Content.--
``(A) Analysis.--The study required under paragraph (1) shall analyze--
``(i) the feasibility of establishing a mechanism that would facilitate the more rapid refinancing of borrowers at risk of foreclosure into performing mortgages insured under this section;
``(ii) whether such a mechanism would provide an effective and efficient mechanism to reduce foreclosures on qualified existing mortgages;
``(iii) whether the use of an auction or bulk refinance program is necessary to stabilize the housing market and reduce the impact of turmoil in that market on the economy of the United States;
``(iv) whether there are other mechanisms or authority that would be useful to reduce foreclosure; and
``(v) and any other factors that the Board considers relevant.
``(B) Determinations.--To the extent that the Board finds that a facility of the type described in subparagraph (A) is feasible and useful, the study shall--
``(i) determine and identify any additional authority or resources needed to establish and operate such a mechanism;
``(ii) determine whether there is a need for additional authority with respect to the loan underwriting criteria established in this section or with respect to eligibility of participating borrowers, lenders, or holders of liens;
``(iii) determine whether such underwriting criteria should be established on the basis of individual loans, in the aggregate, or otherwise to facilitate the goal of refinancing borrowers at risk of foreclosure into viable loans insured under this section.
``(3) Report.--Not later than the expiration of the 60-day period beginning on the date of the enactment of this section, the Board shall submit a report regarding the results of the study conducted under this subsection to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate. The report shall include a detailed description of the analysis required under paragraph (2)(A) and of the determinations made pursuant to paragraph (2)(B), and shall include any other findings and recommendations of the Board pursuant to the study, including identifying various options for mechanisms described in paragraph (1).
``(g) Appraisal Independence.--
``(1) Prohibitions on interested parties in a real estate transaction.--No mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, nor any other person with an interest in a real estate transaction involving an appraisal in connection with a mortgage insured under this section shall improperly influence, or attempt to improperly influence, through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, nonpayment for services rendered, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with the mortgage.
``(2) Civil monetary penalties.--The Secretary may impose a civil money penalty for any knowing and material violation of paragraph (1) under the same terms and conditions as are authorized in section 536(a) of this Act.
``(h) Standards to Protect Against Adverse Selection.--
``(1) In general.--The Board shall, by rule or order, establish standards and policies to require the underwriter of the insured loan to provide such representations and warranties as the Board considers necessary or appropriate to enforce compliance with all underwriting and appraisal standards of the HOPE for Homeowners Program.
``(2) Exclusion for violations.--The Board shall prohibit the Secretary from paying insurance benefits to a mortgagee who violates the representations and warranties, as established under paragraph (1), or in any case in which a mortgagor fails to make the first payment on a refinanced eligible mortgage.
``(3) Other authority.--The Board may establish such other standards or policies as necessary to protect against adverse selection, including requiring loans identified by the Secretary as higher risk loans to demonstrate payment performance for a reasonable period of time prior to being insured under the program.
``(i) Premiums.--For each refinanced eligible mortgage insured under this section, the Secretary shall establish and collect--
``(1) at the time of insurance, a single premium payment in an amount equal to 3 percent of the amount of the original insured principal obligation of the refinanced eligible mortgage, which shall be paid from the proceeds of the mortgage being insured under this section, through the reduction of the amount of indebtedness that existed on the eligible mortgage prior to refinancing; and
``(2) in addition to the premium required under paragraph
(1), an annual premium in an amount equal to 1.5 percent of the amount of the remaining insured principal balance of the mortgage.
``(j) Origination Fees and Interest Rate.--The Board shall establish--
``(1) a reasonable limitation on origination fees for refinanced eligible mortgages insured under this section; and
``(2) procedures to ensure that interest rates on such mortgages shall be commensurate with market rate interest rates on such types of loans.
``(k) Equity and Appreciation.--
``(1) Five-year phase-in for equity as a result of sale or refinancing.--For each eligible mortgage insured under this section, the Secretary and the mortgagor of such mortgage shall, upon any sale or disposition of the property to which such mortgage relates, or upon the subsequent refinancing of such mortgage, be entitled to the following with respect to any equity created as a direct result of such sale or refinancing:
``(A) If such sale or refinancing occurs during the period that begins on the date that such mortgage is insured and ends 1 year after such date of insurance, the Secretary shall be entitled to 100 percent of such equity.
``(B) If such sale or refinancing occurs during the period that begins 1 year after such date of insurance and ends 2 years after such date of insurance, the Secretary shall be entitled to 90 percent of such equity and the mortgagor shall be entitled to 10 percent of such equity.
``(C) If such sale or refinancing occurs during the period that begins 2 years after such date of insurance and ends 3 years after such date of insurance, the Secretary shall be entitled to 80 percent of such equity and the mortgagor shall be entitled to 20 percent of such equity.
``(D) If such sale or refinancing occurs during the period that begins 3 years after such date of insurance and ends 4 years after such date of insurance, the Secretary shall be entitled to 70 percent of such equity and the mortgagor shall be entitled to 30 percent of such equity.
``(E) If such sale or refinancing occurs during the period that begins 4 years after such date of insurance and ends 5 years after such date of insurance, the Secretary shall be entitled to 60 percent of such equity and the mortgagor shall be entitled to 40 percent of such equity.
``(F) If such sale or refinancing occurs during any period that begins 5 years after such date of insurance, the Secretary shall be entitled to 50 percent of such equity and the mortgagor shall be entitled to 50 percent of such equity.
``(2) Appreciation in value.--For each eligible mortgage insured under this section, the Secretary and the mortgagor of such mortgage shall, upon any sale or disposition of the property to which such mortgage relates, each be entitled to 50 percent of any appreciation in value of the appraised value of such property that has occurred since the date that such mortgage was insured under this section.
``(l) Establishment of HOPE Fund.--
``(1) In general.--There is established in the Federal Housing Administration a revolving fund to be known as the Home Ownership Preservation Entity Fund, which shall be used by the Board for carrying out the mortgage insurance obligations under this section.
``(2) Management of fund.--The HOPE Fund shall be administered and managed by the Secretary, who shall establish reasonable and prudent criteria for the management and operation of any amounts in the HOPE Fund.
``(m) Limitation on Aggregate Insurance Authority.--The aggregate original principal obligation of all mortgages insured under this section may not exceed $300,000,000,000.
``(n) Reports by the Board.--The Board shall submit monthly reports to the Congress identifying the progress of the HOPE for Homeowners Program, which shall contain the following information for each month:
``(1) The number of new mortgages insured under this section, including the location of the properties subject to such mortgages by census tract.
``(2) The aggregate principal obligation of new mortgages insured under this section.
``(3) The average amount by which the principle balance outstanding on mortgages insured this section was reduced.
``(4) The amount of premiums collected for insurance of mortgages under this section.
``(5) The claim and loss rates for mortgages insured under this section.
``(6) Any other information that the Board considers appropriate.
``(o) Required Outreach Efforts.--The Secretary shall carry out outreach efforts to ensure that homeowners, lenders, and the general public are aware of the opportunities for assistance available under this section.
``(p) Enhancement of FHA Capacity.--Under the direction of the Board, the Secretary shall take such actions as may be necessary to--
``(1) contract for the establishment of underwriting criteria, automated underwriting systems, pricing standards, and other factors relating to eligibility for mortgages insured under this section;
``(2) contract for independent quality reviews of underwriting, including appraisal reviews and fraud detection, of mortgages insured under this section or pools of such mortgages; and
``(3) increase personnel of the Department as necessary to process or monitor the processing of mortgages insured under this section.
``(q) GNMA Commitment Authority.--
``(1) Guarantees.--The Secretary shall take such actions as may be necessary to ensure that securities based on and backed by a trust or pool composed of mortgages insured under this section are available to be guaranteed by the Government National Mortgage Association as to the timely payment of principal and interest.
``(2) Guarantee authority.--To carry out the purposes of section 306 of the National Housing Act (12 U.S.C. 1721), the Government National Mortgage Association may enter into new commitments to issue guarantees of securities based on or backed by mortgages insured under this section, not exceeding
$300,000,000,000. The amount of authority provided under the preceding sentence to enter into new commitments to issue guarantees is in addition to any amount of authority to make new commitments to issue guarantees that is provided to the Association under any other provision of law.
``(r) Sunset.--The Secretary may not enter into any new commitment to insure any refinanced eligible mortgage, or newly insure any refinanced eligible mortgage pursuant to this section before October 1, 2008 or after September 30, 2011.
``(s) Definitions.--For purposes of this section, the following definitions shall apply:
``(1) Approved financial institution or mortgagee.--The term `approved financial institution or mortgagee' means a financial institution or mortgagee approved by the Secretary under section 203 as responsible and able to service mortgages responsibly.
``(2) Board.--The term `Board' means the Board of Directors of the HOPE for Homeowners Program. The Board shall be composed of the Secretary, the Secretary of the Treasury, the Chairperson of the Board of Governors of the Federal Reserve System, and the Chairperson of the Board of Directors of the Federal Deposit Insurance Corporation.
``(3) Eligible mortgage.--The term `eligible mortgage' means a mortgage--
``(A) the mortgagor of which--
``(i) occupies such property as his or her principal residence; and
``(ii) cannot, subject to subsection (e)(1)(B) and such other standards established by the Board, afford his or her mortgage payments; and
``(B) originated on or before January 1, 2008.
``(4) Existing senior mortgage.--The term `existing senior mortgage' means, with respect to a mortgage insured under this section, the existing mortgage that has superior priority.
``(5) Existing subordinate mortgage.--The term `existing subordinate mortgage' means, with respect to a mortgage insured under this section, an existing mortgage that has subordinate priority to the existing senior mortgage.
``(6) HOPE for homeowners program.--The term `HOPE for Homeowners Program' means the program established under this section.
``(7) Secretary.--The term `Secretary' means the Secretary of Housing and Urban Development, except where specifically provided otherwise.
``(t) Requirements Related to the Board.--
``(1) Compensation, actual, necessary, and transportation expenses.--
``(A) Federal employees.--A member of the Board who is an officer or employee of the Federal Government shall serve without additional pay (or benefits in the nature of compensation) for service as a member of the Board.
``(B) Travel expenses.--Members of the Board shall be entitled to receive travel expenses, including per diem in lieu of subsistence, equivalent to those set forth in subchapter I of chapter 57 of title 5, United States Code.
``(2) Bylaws.--The Board may prescribe, amend, and repeal such bylaws as may be necessary for carrying out the functions of the Board.
``(3) Quorum.--A majority of the Board shall constitute a quorum.
``(4) Staff; experts and consultants.--
``(A) Detail of government employees.--Upon request of the Board, any Federal Government employee may be detailed to the Board without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.
``(B) Experts and consultants.--The Board shall procure the services of experts and consultants as the Board considers appropriate.
``(u) Rule of Construction Related to Voluntary Nature of the Program.--This section shall not be construed to require that any approved financial institution or mortgagee participate in any activity authorized under this section, including any activity related to the refinancing of an eligible mortgage.
``(v) Rule of Construction Related to Insurance of Mortgages.--Except as otherwise provided for in this section or by action of the Board, the provisions and requirements of section 203(b) shall apply with respect to the insurance of any eligible mortgage under this section.
``(w) HOPE Bonds.--
``(1) Issuance and repayment of bonds.--Notwithstanding section 504(b) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661d(b)), the Secretary of the Treasury shall--
``(A) subject to such terms and conditions as the Secretary of the Treasury deems necessary, issue Federal credit instruments, to be known as `HOPE Bonds', that are callable at the discretion of the Secretary of the Treasury and do not, in the aggregate, exceed the amount specified in subsection (m);
``(B) provide the subsidy amounts necessary for loan guarantees under the HOPE for Homeowners Program, not to exceed the amount specified in subsection (m), in accordance with the provisions of the Federal Credit Reform Act of 1990
(2 U.S.C. 661 et seq.), except as provided in this paragraph; and
``(C) use the proceeds from HOPE Bonds only to pay for the net costs to the Federal Government of the HOPE for Homeowners Program, including administrative costs.
``(2) Reimbursements to treasury.--Funds received pursuant to section 1338(b) of the Federal Housing Enterprises Regulatory Reform Act of 1992 shall be used to reimburse the Secretary of the Treasury for amounts borrowed under paragraph (1).
``(3) Use of reserve fund.--If the net cost to the Federal Government for the HOPE for Homeowners Program exceeds the amount of funds received under paragraph (2), remaining debts of the HOPE for Homeowners Program shall be paid from amounts deposited into the fund established by the Secretary under section 1337(b) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, remaining amounts in such fund to be used to reduce the National debt.''.
______
SA 5048. Mr. ENSIGN submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 133, between lines 9 and 10, insert the following:
``(g) Additional Limitations on Distribution of Funds.--
``(1) In general.--None of the funds allocated under this section shall be distributed out of either the Housing Trust Fund or the Capital Magnet Fund to--
``(A) an organization which has been indicted for a violation under Federal law relating to an election for Federal office; or
``(B) an organization which employs applicable individuals.
``(2) Applicable individuals defined.--In this subsection, the term `applicable individual' means an individual who--
``(A) is--
``(i) employed by the organization in a permanent or temporary capacity;
``(ii) contracted or retained by the organization; or
``(iii) acting on behalf of, or with the express or apparent authority of, the organization; and
``(B) has been indicted for a violation under Federal law relating to an election for Federal office.''.
______
SA 5049. Mr. ENSIGN submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 401, line 10, after the first period insert the following:
``(x) No Benefit for Delinquency Within First Six Months.--No insurance benefits shall be paid by the Secretary pursuant to this section if a mortgagor fails to timely make any of his or her first six payments on a refinanced eligible mortgage insured under this section.''.
______
SA 5050. Mr. ENSIGN submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 510, between lines 5 and 6, insert the following:
(4) Sale requirement.--If a State or unit of general local government purchases or otherwise acquires an abandoned or foreclosed upon home or residential property with funds received pursuant to this section or with any amounts derived or generated from activities authorized under this section, that State or unit of general local government shall sell such home or property by a date that is not later than 5 years after the date of enactment of this Act.
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SA 5051. Mr. ENSIGN submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 575, strike lines 3 through 13 and insert the following:
``(A) Increase for 2008.--
``(i) In general.--In the case of calendar year 2008, the State ceiling for each State shall be increased by an amount equal to $11,000,000,000 multiplied by the State share for such State.
``(ii) State share.--For purposes of this paragraph, the State share for any state shall be the amount, expressed as a percentage, determined with respect to such State under the formula established under clause (iii).
``(iii) Formula.--The formula established under this clause shall be established by the Secretary, in consultation with the Secretary of Housing and Urban Development, and shall be based on need, as such need is determined in the discretion of the Secretary, taking into account--
``(I) the number and percentage of home foreclosures in each State;
``(II) the number and percentage of homes financed by a subprime mortgage related loan in each State; and
``(III) the number and percentage of homes in default or delinquency in each State.
``(iv) Formula to be devised swiftly.--The formula under clause (iii) shall be established not later than 30 days after the date of enactment of this paragraph.
______
SA 5052. Mr. ENSIGN submitted an amendment intended to be proposed by him to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
On page 518, line 3, strike the period and insert ``: Provided, further that none of the funds appropriated by this section for section 2401 or funds appropriated by section 2401 shall be for political activities, lobbying, whether directly or through other parties, or travel expenses.''.
______
SA 5053 Mr. CORKER submitted an amendment intended to be proposed by him to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
Strike Title III of Division B.
______
SA 5054. Mr. ENSIGN submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
At the end of division C, add the following:
TITLE __--CLEAN ENERGY TAX STIMULUS
SEC. __01. SHORT TITLE.
This title may be cited as the ``Clean Energy Tax Stimulus Act of 2008''.
Subtitle A--Extension of Clean Energy Production Incentives
SEC. __11. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY
PRODUCTION TAX CREDIT.
(a) Extension of Credit.--Each of the following provisions of section 45(d) (relating to qualified facilities) is amended by striking ``January 1, 2009'' and inserting
``January 1, 2010'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (5).
(6) Paragraph (6).
(7) Paragraph (7).
(8) Paragraph (8).
(9) Subparagraphs (A) and (B) of paragraph (9).
(b) Production Credit for Electricity Produced From Marine Renewables.--
(1) In general.--Paragraph (1) of section 45(c) (relating to resources) is amended by striking ``and'' at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting ``, and'', and by adding at the end the following new subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(2) Marine renewables.--Subsection (c) of section 45 is amended by adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and hydrokinetic renewable energy' means energy derived from--
``(i) waves, tides, and currents in oceans, estuaries, and tidal areas,
``(ii) free flowing water in rivers, lakes, and streams,
``(iii) free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, or
``(iv) differentials in ocean temperature (ocean thermal energy conversion).
``(B) Exceptions.--Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph
(A)(iii)), or impoundment for electric power production purposes.''.
(3) Definition of facility.--Subsection (d) of section 45 is amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy facilities.--In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term
`qualified facility' means any facility owned by the taxpayer--
``(A) which has a nameplate capacity rating of at least 150 kilowatts, and
``(B) which is originally placed in service on or after the date of the enactment of this paragraph and before January 1, 2010.''.
(4) Credit rate.--Subparagraph (A) of section 45(b)(4) is amended by striking ``or (9)'' and inserting ``(9), or
(11)''.
(5) Coordination with small irrigation power.--Paragraph
(5) of section 45(d), as amended by subsection (a), is amended by striking ``January 1, 2010'' and inserting ``the date of the enactment of paragraph (11)''.
(c) Sales of Electricity to Regulated Public Utilities Treated as Sales to Unrelated Persons.--Section 45(e)(4)
(relating to related persons) is amended by adding at the end the following new sentence: ``A taxpayer shall be treated as selling electricity to an unrelated person if such electricity is sold to a regulated public utility (as defined in section 7701(a)(33).''.
(d) Trash Facility Clarification.--Paragraph (7) of section 45(d) is amended--
(1) by striking ``facility which burns'' and inserting
``facility (other than a facility described in paragraph (6)) which uses'', and
(2) by striking ``combustion''.
(e) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall apply to property originally placed in service after December 31, 2008.
(2) Modifications.--The amendments made by subsections (b) and (c) shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.
(3) Trash facility clarification.--The amendments made by subsection (d) shall apply to electricity produced and sold before, on, or after December 31, 2007.
SEC. __12. EXTENSION AND MODIFICATION OF SOLAR ENERGY AND
FUEL CELL INVESTMENT TAX CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) (relating to energy credit) are each amended by striking ``January 1, 2009'' and inserting
``January 1, 2017''.
(2) Fuel cell property.--Subparagraph (E) of section 48(c)(1) (relating to qualified fuel cell property) is amended by striking ``December 31, 2008'' and inserting
``December 31, 2017''.
(3) Qualified microturbine property.--Subparagraph (E) of section 48(c)(2) (relating to qualified microturbine property) is amended by striking ``December 31, 2008'' and inserting ``December 31, 2017''.
(b) Allowance of Energy Credit Against Alternative Minimum Tax.--Subparagraph (B) of section 38(c)(4) (relating to specified credits) is amended by striking ``and'' at the end of clause (iii), by striking the period at the end of clause
(iv) and inserting ``, and'', and by adding at the end the following new clause:
``(v) the credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48.''.
(c) Repeal of Dollar Per Kilowatt Limitation for Fuel Cell Property.--
(1) In general.--Section 48(c)(1) (relating to qualified fuel cell), as amended by subsection (a)(2), is amended by striking subparagraph (B) and by redesignating subparagraphs
(C), (D), and (E) as subparagraphs (B), (C), and (D), respectively.
(2) Conforming amendment.--Section 48(a)(1) is amended by striking ``paragraphs (1)(B) and (2)(B) of subsection (c)'' and inserting ``subsection (c)(2)(B)''.
(d) Public Electric Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is amended by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c), as amended by this section, is amended by striking subparagraph (C) and redesignating subparagraph (D) as subparagraph (C).
(B) Paragraph (2) of section 48(c), as amended by subsection (a)(3), is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).
(e) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall take effect on the date of the enactment of this Act.
(2) Allowance against alternative minimum tax.--The amendments made by subsection (b) shall apply to credits determined under section 46 of the Internal Revenue Code of 1986 in taxable years beginning after the date of the enactment of this Act and to carrybacks of such credits.
(3) Fuel cell property and public electric utility property.--The amendments made by subsections (c) and (d) shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
SEC. __13. EXTENSION AND MODIFICATION OF RESIDENTIAL ENERGY
EFFICIENT PROPERTY CREDIT.
(a) Extension.--Section 25D(g) (relating to termination) is amended by striking ``December 31, 2008'' and inserting
``December 31, 2009''.
(b) No Dollar Limitation for Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1) (relating to maximum credit) is amended by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively.
(2) Conforming amendments.--Section 25D(e)(4) is amended--
(A) by striking clause (i) in subparagraph (A),
(B) by redesignating clauses (ii) and (iii) in subparagraph
(A) as clauses (i) and (ii), respectively, and
(C) by striking ``, (2),'' in subparagraph (C).
(c) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of Unused Credit.--
``(1) Limitation based on amount of tax.--In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits allowed against regular and alternative minimum tax.--In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting ``and section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking ``and 25B'' and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking ``section 23'' and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and 25B'' and inserting ``25B, and 25D''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall apply to taxable years beginning after December 31, 2007.
(2) Application of egtrra sunset.--The amendments made by subparagraphs (A) and (B) of subsection (c)(2) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.
SEC. __14. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN
RENEWABLE ENERGY BONDS.
(a) Extension.--Section 54(m) (relating to termination) is amended by striking ``December 31, 2008'' and inserting
``December 31, 2009''.
(b) Increase in National Limitation.--Section 54(f)
(relating to limitation on amount of bonds designated) is amended--
(1) by inserting ``, and for the period beginning after the date of the enactment of the Clean Energy Tax Stimulus Act of 2008 and ending before January 1, 2010, $400,000,000'' after
``$1,200,000,000'' in paragraph (1),
(2) by striking ``$750,000,000 of the'' in paragraph (2) and inserting ``$750,000,000 of the $1,200,000,000'', and
(3) by striking ``bodies'' in paragraph (2) and inserting
``bodies, and except that the Secretary may not allocate more than \1/3\ of the $400,000,000 national clean renewable energy bond limitation to finance qualified projects of qualified borrowers which are public power providers nor more than \1/3\ of such limitation to finance qualified projects of qualified borrowers which are mutual or cooperative electric companies described in section 501(c)(12) or section 1381(a)(2)(C)''.
(c) Public Power Providers Defined.--Section 54(j) is amended--
(1) by adding at the end the following new paragraph:
``(6) Public power provider.--The term `public power provider' means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on the date of the enactment of this paragraph).'', and
(2) by inserting ``; Public Power Provider'' before the period at the end of the heading.
(d) Technical Amendment.--The third sentence of section 54(e)(2) is amended by striking ``subsection (l)(6)'' and inserting ``subsection (l)(5)''.
(e) Effective Date.--The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.
SEC. __15. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC
RESTRUCTURING POLICY.
(a) Qualifying Electric Transmission Transaction.--
(1) In general.--Section 451(i)(3) (defining qualifying electric transmission transaction) is amended by striking
``January 1, 2008'' and inserting ``January 1, 2010''.
(2) Effective date.--The amendment made by this subsection shall apply to transactions after December 31, 2007.
(b) Independent Transmission Company.--
(1) In general.--Section 451(i)(4)(B)(ii) (defining independent transmission company) is amended by striking
``December 31, 2007'' and inserting ``the date which is 2 years after the date of such transaction''.
(2) Effective date.--The amendment made by this subsection shall take effect as if included in the amendments made by section 909 of the American Jobs Creation Act of 2004.
Subtitle B--Extension of Incentives To Improve Energy Efficiency
SEC. __21. EXTENSION AND MODIFICATION OF CREDIT FOR ENERGY
EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.
(a) Extension of Credit.--Section 25C(g) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Qualified Biomass Fuel Property.--
(1) In general.--Section 25C(d)(3) is amended--
(A) by striking ``and'' at the end of subparagraph (D),
(B) by striking the period at the end of subparagraph (E) and inserting ``, and'', and
(C) by adding at the end the following new subparagraph:
``(F) a stove which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and which has a thermal efficiency rating of at least 75 percent.''.
(2) Biomass fuel.--Section 25C(d) (relating to residential energy property expenditures) is amended by adding at the end the following new paragraph:
``(6) Biomass fuel.--The term `biomass fuel' means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants
(including aquatic plants), grasses, residues, and fibers.''.
(c) Modifications of Standards for Energy-Efficient Building Property.--
(1) Electric heat pumps.--Subparagraph (B) of section 25C(d)(3) is amended to read as follows:
``(A) an electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2008.''.
(2) Central air conditioners.--Section 25C(d)(3)(D) is amended by striking ``2006'' and inserting ``2008''.
(3) Water heaters.--Subparagraph (E) of section 25C(d) is amended to read as follows:
``(E) a natural gas, propane, or oil water heater which has either an energy factor of at least 0.80 or a thermal efficiency of at least 90 percent.''.
(4) Oil furnaces and hot water boilers.--Paragraph (4) of section 25C(d) is amended to read as follows:
``(4) Qualified natural gas, propane, and oil furnaces and hot water boilers.--
``(A) Qualified natural gas furnace.--The term `qualified natural gas furnace' means any natural gas furnace which achieves an annual fuel utilization efficiency rate of not less than 95.
``(B) Qualified natural gas hot water boiler.--The term
`qualified natural gas hot water boiler' means any natural gas hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.
``(C) Qualified propane furnace.--The term `qualified propane furnace' means any propane furnace which achieves an annual fuel utilization efficiency rate of not less than 95.
``(D) Qualified propane hot water boiler.--The term
`qualified propane hot water boiler' means any propane hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.
``(E) Qualified oil furnaces.--The term `qualified oil furnace' means any oil furnace which achieves an annual fuel utilization efficiency rate of not less than 90.
``(F) Qualified oil hot water boiler.--The term `qualified oil hot water boiler' means any oil hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.''.
(d) Effective Date.--The amendments made this section shall apply to expenditures made after December 31, 2007.
SEC. __22. EXTENSION AND MODIFICATION OF TAX CREDIT FOR
ENERGY EFFICIENT NEW HOMES.
(a) Extension of Credit.--Subsection (g) of section 45L
(relating to termination) is amended by striking ``December 31, 2008'' and inserting ``December 31, 2010''.
(b) Allowance for Contractor's Personal Residence.--Subparagraph (B) of section 45L(a)(1) is amended to read as follows:
``(B)(i) acquired by a person from such eligible contractor and used by any person as a residence during the taxable year, or
``(ii) used by such eligible contractor as a residence during the taxable year.''.
(c) Effective Date.--The amendments made by this section shall apply to homes acquired after December 31, 2008.
SEC. __23. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT
COMMERCIAL BUILDINGS DEDUCTION.
(a) Extension.--Section 179D(h) (relating to termination) is amended by striking ``December 31, 2008'' and inserting
``December 31, 2009''.
(b) Adjustment of Maximum Deduction Amount.--
(1) In general.--Subparagraph (A) of section 179D(b)(1)
(relating to maximum amount of deduction) is amended by striking ``$1.80'' and inserting ``$2.25''.
(2) Partial allowance.--Paragraph (1) of section 179D(d) is amended--
(A) by striking ``$.60'' and inserting ``$0.75'', and
(B) by striking ``$1.80'' and inserting ``$2.25''.
(c) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
SEC. __24. MODIFICATION AND EXTENSION OF ENERGY EFFICIENT
APPLIANCE CREDIT FOR APPLIANCES PRODUCED AFTER
2007.
(a) In General.--Subsection (b) of section 45M (relating to applicable amount) is amended to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no more than 324 kilowatt hours per year and 5.8 gallons per cycle, and
``(B) $75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle
(5.5 gallons per cycle for dishwashers designed for greater than 12 place settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water consumption factor,
``(C) $150 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0 water consumption factor, and
``(D) $250 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5 water consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours per year than the 2001 energy conservation standards,
``(B) $75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation standards,
``(C) $100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010, and consumes at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation standards, and
``(D) $200 in the case of a refrigerator manufactured in calendar year 2008, 2009, or 2010 and which consumes at least 30 percent less energy than the 2001 energy conservation standards.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c) of section 45M (relating to eligible production) is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that follows through ``the eligible'' and inserting ``The eligible'', and
(C) by moving the text of such subsection in line with the subsection heading and redesignating subparagraphs (A) and
(B) as paragraphs (1) and (2), respectively.
(2) Modification of base period.--Paragraph (2) of section 45M(c), as amended by paragraph (1) of this section, is amended by striking ``3-calendar year'' and inserting ``2-calendar year''.
(c) Types of Energy Efficient Appliances.--Subsection (d) of section 45M (defining types of energy efficient appliances) is amended to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of this section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2), and
``(3) refrigerators described in subsection (b)(3).''.
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e)
(relating to aggregate credit amount allowed) is amended to read as follows:
``(1) Aggregate credit amount allowed.--The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $75,000,000 reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior taxable years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes washers.--Paragraph (2) of section 45M(e) is amended to read as follows:
``(2) Amount allowed for certain refrigerators and clothes washers.--Refrigerators described in subsection (b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining qualified energy efficient appliance) is amended to read as follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection (b)(1),
``(B) any clothes washer described in subsection (b)(2), and
``(C) any refrigerator described in subsection (b)(3).''.
(2) Clothes washer.--Section 45M(f)(3) (defining clothes washer) is amended by inserting ``commercial'' before
``residential'' the second place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section 45M (relating to definitions) is amended by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6),
(7), and (8), respectively, and by inserting after paragraph
(3) the following new paragraph:
``(4) Top-loading clothes washer.--The term `top-loading clothes washer' means a clothes washer which has the clothes container compartment access located on the top of the machine and which operates on a vertical axis.''.
(4) Replacement of energy factor.--Section 45M(f)(6), as redesignated by paragraph (3), is amended to read as follows:
``(6) Modified energy factor.--The term `modified energy factor' means the modified energy factor established by the Department of Energy for compliance with the Federal energy conservation standard.''.
(5) Gallons per cycle; water consumption factor.--Section 45M(f) (relating to definitions), as amended by paragraph
(3), is amended by adding at the end the following:
``(9) Gallons per cycle.--The term `gallons per cycle' means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a dishwasher.
``(10) Water consumption factor.--The term `water consumption factor' means, with respect to a clothes washer, the quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.''.
(f) Effective Date.--The amendments made by this section shall apply to appliances produced after December 31, 2007.
______
SA 5055. Mrs. LINCOLN submitted an amendment intended to be proposed to amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
At the end of title VI of division A, add the following:
SEC. 1606. CLARIFICATION OF SCOPE OF APPLICABLE RATE
PROVISION.
Section 44(f) of the Federal Deposit Insurance Act (12 U.S.C. 1831u(f)) is amended by adding at the end the following new paragraphs:
``(3) Other persons.--In the case of any other person or governmental or private entity in the State described in paragraph (1)--
``(A) any provision of the constitution of that State that establishes a maximum lawful annual interest rate, or otherwise or limits the amount of interest, discount points, finance charges, fees, or other charges that may be charged, taken, paid, received, or reserved from time to time, until judgment, thereby interfering in interstate commerce, shall not apply to any loan, discount, or credit sale made, or upon any bond, note, obligation, bill of exchange, financing transaction, or other evidence of debt issued or acquired by any other person or governmental or private entity; and
``(B) such interest, discount points, finance charges, fees, or other charges that may be charged, taken, paid, received, or reserved from time to time, until judgment, in any loan, discount, or credit sale made, or upon any bond, note, obligation, bill of exchange, financing transaction, or other evidence of debt issued to or acquired by any other person or governmental or private entity may not exceed 17 percent per year.''.
______
SA 5056. Mr. DeMINT submitted an amendment intended to be proposed by him to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
At the end of title VI of division A, add the following:
SEC. 1606. OIL AND NATURAL GAS LEASING IN NEW PRODUCING
AREAS.
(a) Definitions.--In this section:
(1) Eligible producing state.--The term ``eligible producing State'' means--
(A) a new producing State; and
(B) any other producing State that has, within the offshore administrative boundaries beyond the submerged land of a State, areas available for oil leasing, natural gas leasing, or both.
(2) New producing area.--The term ``new producing area'' means an area that is--
(A) within the offshore administrative boundaries beyond the submerged land of a State; and
(B) not available for oil or natural gas leasing as of the date of enactment of this Act.
(3) New producing state.--The term ``new producing State'' means a State with respect to which a petition has been approved by the Secretary under subsection (b).
(4) Qualified revenues.--The term ``qualified revenues'' means all rentals, royalties, bonus bids, and other sums due and payable to the United States from leases entered into on or after the date of enactment of this Act for new producing areas.
(5) Secretary.--The term ``Secretary'' means the Secretary of the Interior.
(b) Petition for Leasing New Producing Areas.--
(1) In general.--Notwithstanding any other provision of law, the Governor of a State, with the concurrence of the State legislature, may submit to the Secretary a petition requesting that the Secretary make a new producing area of the State eligible for oil leasing, gas leasing, or both, as determined by the State, in accordance with the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) and the Mineral Leasing Act (30 U.S.C. 181 et seq.).
(2) Action by secretary.--As soon as practicable after the date on which the Secretary receives a petition under paragraph (1), the Secretary shall approve or disapprove the petition.
(c) Disposition of Qualified Outer Continental Shelf Revenues From Eligible Producing States.--Notwithstanding section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338), for each applicable fiscal year, the Secretary of the Treasury shall deposit--
(1) 50 percent of qualified revenues in the general fund of the Treasury; and
(2) 50 percent of qualified revenues in a special account in the Treasury, which the Secretary shall disburse to eligible producing States for new producing areas, to be allocated in accordance with subsection (d)(1).
(d) Allocation to Eligible Producing States.--
(1) In general.--The amount made available under subsection
(c)(2)(A) shall be allocated to eligible producing States in amounts (based on a formula established by the Secretary by regulation) that are inversely proportional to the respective distances between the point on the coastline of each eligible producing State that is closest to the geographic center of the applicable leased tract and the geographic center of the leased tract, as determined by the Secretary.
(2) Use.--Amounts allocated to an eligible producing State under paragraph (1) shall be used to address the impacts of any oil and natural gas exploration and production activities under this section.
(e) Effect.--Nothing in this section affects--
(1) the amount of funds otherwise dedicated to the land and water conservation fund established under section 2 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-5); or
(2) any authority that permits energy production under any other provision of law.
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