Volume 161, No. 9 covering the 1st Session of the 114th Congress (2015 - 2016) 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 S292-S300 on Jan. 20, 2015.
The publication is reproduced in full below:
TEXT OF AMENDMENTS
SA 57. Mrs. BOXER submitted an amendment intended to be proposed by her to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. EFFECTIVE DATE.
This Act shall not take effect until the President determines that the Administrator of the Environmental Protection Agency, in consultation with other relevant Federal agencies, has completed a comprehensive study analyzing the human health impacts of the pipeline described in section 2(a), including--
(1) increased air pollution in communities near refineries that will process the up to 830,000 barrels per day of tar sands crude that will be transported through the pipeline, including assessment of the cumulative air pollution impacts on the communities;
(2) increased exposure of communities to particulate matter and heavy metals from the disposal, storage, and use of petroleum coke that results from the refining of the tar sands crude that will be transported through the pipeline;
(3) increased exposures in communities to benzene, volatile organic compounds, hydrogen sulfide, and other toxic substances that may result from spills or the contamination of water supplies from tar sands crude transported through the pipeline; and
(4) increased cancer rates and exposures to elevated levels of polycyclic aromatic hydrocarbons (``PAHs''), mercury, and other toxic pollutants, where the tar sands crude that will be transported through the pipeline is mined, extracted, upgraded, or refined.
______
SA 58. Mr. SCHATZ submitted an amendment intended to be proposed to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve the Keystone XL Pipeline; as follows:
At the appropriate place, insert the following:
SEC. __. SENSE OF CONGRESS.
(a) Findings.--The environmental analysis contained in the Final Supplemental Environmental Impact Statement referred to in section 2(a) and deemed to satisfy the requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) as described in section 2(a), states that--
(1) ``[W]arming of the climate system is unequivocal and each of the last [3] decades has been successively warmer at the Earth's surface than any preceding decade since 1850.'';
(2) ``The [Intergovernmental Panel on Climate Change], in addition to other institutions, such as the National Research Council and the United States (U.S.) Global Change Research Program (USGCRP), have concluded that it is extremely likely that global increases in atmospheric [greenhouse gas] concentrations and global temperatures are caused by human activities.''; and
(3) ``A warmer planet causes large-scale changes that reverberate throughout the climate system of the Earth, including higher sea levels, changes in precipitation, and altered weather patterns (e.g. an increase in more extreme weather events).''.
(b) Sense of Congress.--Consistent with the findings under subsection (a), it is the sense of Congress that--
(1) climate change is real; and
(2) human activity significantly contributes to climate change.
______
SA 59. Mr. SCHATZ submitted an amendment intended to be proposed by him to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. IMPLEMENTATION.
This Act shall be implemented in a manner that addresses the analysis in the Final Supplemental Environmental Impact Statement referenced in section 2(a) (referred to in this section as the ``FSEIS'') and deemed in section 2(a) as having satisfied the requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), with regard to climate change and the recommendations made in the FSEIS with respect to measures to mitigate greenhouse gas emissions and climate change in section 4.14-16 of the FSEIS.
______
SA 60. Mr. MENENDEZ submitted an amendment intended to be proposed to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. SENSE OF CONGRESS ON UNITED STATES AND CANADA
EFFORTS TO REDUCE GREENHOUSE GAS EMISSIONS.
It is the sense of Congress that--
(1) the Governments of the United States and Canada should continuing working towards their shared goal of reducing emissions approximately 17 percent below 2005 levels, by 2020; and
(2) the Government of Canada should join the United States Government's goal of reducing emissions 26-28 percent below 2005 levels, by 2025.
______
SA 61. Mr. MENENDEZ submitted an amendment intended to be proposed to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. SENSE OF CONGRESS REGARDING FEDERAL TRANSPORTATION
INFRASTRUCTURE INVESTMENT.
(a) Findings.--Congress finds that--
(1) the transportation sector accounts for 9 percent of the gross domestic product of the United States;
(2) in 2012, the transportation infrastructure of the United States supported the shipment of 19,662,000,000 tons of freight valued at $17,352,000,000,000;
(3) in 2012, 12,547,000 people were employed in transportation-related industries in the United States;
(4) every dollar invested in the transportation infrastructure of the United States returns $3.54 in economic impact; and
(5) every $1,000,000,000 in public infrastructure spending creates 21,671 jobs.
(b) Sense of Congress.--It is the sense of Congress that--
(1) transportation infrastructure is essential to the economy of the United States; and
(2) increased Federal transportation infrastructure investment could create millions of jobs and help businesses grow.
______
SA 62. Mr. MENENDEZ submitted an amendment intended to be proposed to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following: SEC. __. SENSE OF CONGRESS REGARDING FEDERAL TRANSPORTATION
INFRASTRUCTURE INVESTMENT.
It is the sense of Congress that increased Federal transportation infrastructure investment will--
(1) create millions of jobs;
(2) help businesses grow;
(3) reduce traffic congestion; and
(4) save lives.
______
SA 63. Mr. MENENDEZ submitted an amendment intended to be proposed to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the end, add the following:
TITLE I--CLOSING BIG OIL LOOPHOLES
SEC. 201. SHORT TITLE.
This title may be cited as the ``Close Big Oil Tax Loopholes Act''.
Subtitle A--Close Big Oil Tax Loopholes
SEC. 211. MODIFICATIONS OF FOREIGN TAX CREDIT RULES
APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES
WHICH ARE DUAL CAPACITY TAXPAYERS.
(a) In General.--Section 901 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:
``(n) Special Rules Relating to Major Integrated Oil Companies Which Are Dual Capacity Taxpayers.--
``(1) General rule.--Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (within the meaning of section 167(h)(5)) to a foreign country or possession of the United States for any period shall not be considered a tax--
``(A) if, for such period, the foreign country or possession does not impose a generally applicable income tax, or
``(B) to the extent such amount exceeds the amount
(determined in accordance with regulations) which--
``(i) is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or
``(ii) would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.
Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).
``(2) Dual capacity taxpayer.--For purposes of this subsection, the term `dual capacity taxpayer' means, with respect to any foreign country or possession of the United States, a person who--
``(A) is subject to a levy of such country or possession, and
``(B) receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.
``(3) Generally applicable income tax.--For purposes of this subsection--
``(A) In general.--The term `generally applicable income tax' means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.
``(B) Exceptions.--Such term shall not include a tax unless it has substantial application, by its terms and in practice, to--
``(i) persons who are not dual capacity taxpayers, and
``(ii) persons who are citizens or residents of the foreign country or possession.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.
(2) Contrary treaty obligations upheld.--The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.
SEC. 212. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO
OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.
(a) Denial of Deduction.--Paragraph (4) of section 199(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
``(E) Special rule for certain oil and gas income.--In the case of any taxpayer who is a major integrated oil company
(within the meaning of section 167(h)(5)) for the taxable year, the term `domestic production gross receipts' shall not include gross receipts from the production, refining, processing, transportation, or distribution of oil, gas, or any primary product (within the meaning of subsection (d)(9)) thereof.''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2015.
SEC. 213. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND
DEVELOPMENT COSTS; AMORTIZATION OF DISALLOWED
AMOUNTS.
(a) In General.--Section 263(c) of the Internal Revenue Code of 1986 is amended to read as follows:
``(c) Intangible Drilling and Development Costs in the Case of Oil and Gas Wells and Geothermal Wells.--
``(1) In general.--Notwithstanding subsection (a), and except as provided in subsection (i), regulations shall be prescribed by the Secretary under this subtitle corresponding to the regulations which granted the option to deduct as expenses intangible drilling and development costs in the case of oil and gas wells and which were recognized and approved by the Congress in House Concurrent Resolution 50, Seventy-ninth Congress. Such regulations shall also grant the option to deduct as expenses intangible drilling and development costs in the case of wells drilled for any geothermal deposit (as defined in section 613(e)(2)) to the same extent and in the same manner as such expenses are deductible in the case of oil and gas wells. This subsection shall not apply with respect to any costs to which any deduction is allowed under section 59(e) or 291.
``(2) Exclusion.--
``(A) In general.--This subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (within the meaning of section 167(h)(5)).
``(B) Amortization of amounts not allowable as deductions under subparagraph (a).--The amount not allowable as a deduction for any taxable year by reason of subparagraph (A) shall be allowable as a deduction ratably over the 60-month period beginning with the month in which the costs are paid or incurred. For purposes of section 1254, any deduction under this subparagraph shall be treated as a deduction under this subsection.''.
(b) Effective Date.--The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2015.
SEC. 214. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR
OIL AND GAS WELLS.
(a) In General.--Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
``(f) Application With Respect to Major Integrated Oil Companies.--In the case of any taxable year in which the taxpayer is a major integrated oil company (within the meaning of section 167(h)(5)), the allowance for percentage depletion shall be zero.''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2015.
SEC. 215. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.
(a) In General.--Section 193 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
``(d) Application With Respect to Major Integrated Oil Companies.--
``(1) In general.--This section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (within the meaning of section 167(h)(5)).
``(2) Amortization of amounts not allowable as deductions under paragraph (1).--The amount not allowable as a deduction for any taxable year by reason of paragraph (1) shall be allowable as a deduction ratably over the 60-month period beginning with the month in which the costs are paid or incurred.''.
(b) Effective Date.--The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2015.
SEC. 216. MODIFICATION OF DEFINITION OF MAJOR INTEGRATED OIL
COMPANY.
(a) In General.--Paragraph (5) of section 167(h) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
``(C) Certain successors in interest.--For purposes of this paragraph, the term `major integrated oil company' includes any successor in interest of a company that was described in subparagraph (B) in any taxable year, if such successor controls more than 50 percent of the crude oil production or natural gas production of such company.''.
(b) Conforming Amendments.--
(1) In general.--Subparagraph (B) of section 167(h)(5) of the Internal Revenue Code of 1986 is amended by inserting
``except as provided in subparagraph (C),'' after ``For purposes of this paragraph,''.
(2) Taxable years tested.--Clause (iii) of section 167(h)(5)(B) of such Code is amended--
(A) by striking ``does not apply by reason of paragraph (4) of section 613A(d)'' and inserting ``did not apply by reason of paragraph (4) of section 613A(d) for any taxable year after 2004'', and
(B) by striking ``does not apply'' in subclause (II) and inserting ``did not apply for the taxable year''.
(c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2015.
Subtitle B--Outer Continental Shelf Oil and Natural Gas
SEC. 221. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND
DEEP GAS ROYALTY RELIEF.
(a) In General.--Sections 344 and 345 of the Energy Policy Act of 2005 (42 U.S.C. 15904, 15905) are repealed.
(b) Administration.--The Secretary of the Interior shall not be required to provide for royalty relief in the lease sale terms beginning with the first lease sale held on or after the date of enactment of this Act for which a final notice of sale has not been published.
Subtitle C--Miscellaneous
SEC. 231. DEFICIT REDUCTION.
The net amount of any savings realized as a result of the enactment of this title and the amendments made by this title
(after any expenditures authorized by this title and the amendments made by this title) shall be deposited in the Treasury and used for Federal budget deficit reduction or, if there is no Federal budget deficit, for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.
SEC. 232. BUDGETARY EFFECTS.
The budgetary effects of this title, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this title, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.
Subtitle D--Extension of Certain Energy Tax Benefits
SEC. 241. PERMANENT EXTENSION OF CREDITS WITH RESPECT TO
FACILITIES PRODUCING ELECTRICITY FROM CERTAIN
RENEWABLE RESOURCES.
(a) In General.--
(1) Wind.--Paragraph (1) of section 45(d) of the Internal Revenue Code of 1986 is amended by striking ``, and the construction of which begins before January 1, 2015''.
(2) Closed-loop biomass.--Paragraph (2) of section 45(d) of such Code is amended--
(A) by striking ``, and the construction of which begins before January 1, 2015'' in subparagraph (A)(i), and
(B) by striking ``which before January 1, 2015, is originally placed in service''.
(3) Open-loop biomass.--Subparagraph (A) of section 45(d)(3) of such Code is amended--
(A) by striking ``any facility owned by the taxpayer which'',
(B) by inserting ``owned by the taxpayer and'' after
``facility'' in clause (i),
(C) by striking `` and the construction of which begins before January 1, 2015'' in clause (i)(I), and
(D) by striking clause (ii) and inserting the following:
``(ii) any other facility owned by the taxpayer.''.
(4) Geothermal energy.--Paragraph (4) of section 45(d) of such Code is amended by striking ``and which'' and all that follows through ``Such term shall not'' and inserting ``and, in the case of a facility using solar energy, which is placed in service before January 1, 2006. Such term shall not''.
(5) Landfill gas.--Paragraph (6) of section 45(d) of such Code is amended by striking ``and the construction of which begins before January 1, 2015''.
(6) Trash facilities.--Paragraph (7) of section 45(d) of such Code is amended by striking ``and the construction of which begins before January 1, 2015''.
(7) Qualified hydropower.--Paragraph (9) of section 45(d) of such Code is amended--
(A) by striking ``and before January 1, 2015'' in subparagraph (A)(i),
(B) by striking ``and the construction of which begins before January 1, 2015'' in subparagraph (A)(ii), and
(C) by striking subparagraph (C).
(8) Marine and hydrokinetic renewable energy facilities.--Paragraph (11)(B) of section 45(d) of such Code is amended by striking ``and the construction of which begins before January 1, 2015''.
(b) Effective Date.--The amendments made by this section shall take effect on January 1, 2015.
SEC. 242. PERMANENT EXTENSION OF ENERGY INVESTMENT CREDIT.
(a) Extension of Energy Percentage for Certain Solar Property.--Subclause (II) of section 48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by striking ``but only with respect to periods ending before January 1, 2017''.
(b) Extension of Energy Property.--
(1) Solar property.--Clause (ii) of section 48(a)(3) of such Code is amended by striking ``but only with respect to periods ending before January 1, 2017''.
(2) Thermal energy.--Clause (vii) of section 48(a)(3) of such Code is amended by striking ``, but only with respect to periods ending before January 1, 2017''.
(3) Qualified fuel cell property.--Paragraph (1) of section 48(c) of such Code is amended by striking subparagraph (D).
(4) Qualified microturbine property.--Paragraph (2) of section 48(c) of such Code is amended by striking subparagraph (D).
(5) Combined heat and power property.--Subparagraph (A) of section 48(c)(3) of such Code is amended by inserting ``and'' at the end of clause (ii)(II), by striking ``, and'' at the end of clause (iii) and inserting a period, and by striking clause (iv).
(6) Qualified small wind energy property.--Paragraph (4) of section 48(c) of such Code is amended by striking subparagraph (C).
(c) Election to Treat Qualified Facilities as Energy Property.--Clause (ii) of section 48(a)(5)(C) of such Code is amended by striking ``and the construction of which begins before January 1, 2015''.
(d) Effective Date.--The amendments made by this section shall take effect on January 1, 2015.
______
SA 64. Mr. MENENDEZ submitted an amendment intended to be proposed to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the end, add the following:
TITLE I--CLOSING BIG OIL LOOPHOLES
SEC. 201. SHORT TITLE.
This title may be cited as the ``Close Big Oil Tax Loopholes Act''.
Subtitle A--Close Big Oil Tax Loopholes
SEC. 211. MODIFICATIONS OF FOREIGN TAX CREDIT RULES
APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES
WHICH ARE DUAL CAPACITY TAXPAYERS.
(a) In General.--Section 901 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:
``(n) Special Rules Relating to Major Integrated Oil Companies Which Are Dual Capacity Taxpayers.--
``(1) General rule.--Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (within the meaning of section 167(h)(5)) to a foreign country or possession of the United States for any period shall not be considered a tax--
``(A) if, for such period, the foreign country or possession does not impose a generally applicable income tax, or
``(B) to the extent such amount exceeds the amount
(determined in accordance with regulations) which--
``(i) is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or
``(ii) would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.
Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).
``(2) Dual capacity taxpayer.--For purposes of this subsection, the term `dual capacity taxpayer' means, with respect to any foreign country or possession of the United States, a person who--
``(A) is subject to a levy of such country or possession, and
``(B) receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.
``(3) Generally applicable income tax.--For purposes of this subsection--
``(A) In general.--The term `generally applicable income tax' means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.
``(B) Exceptions.--Such term shall not include a tax unless it has substantial application, by its terms and in practice, to--
``(i) persons who are not dual capacity taxpayers, and
``(ii) persons who are citizens or residents of the foreign country or possession.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.
(2) Contrary treaty obligations upheld.--The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.
SEC. 212. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO
OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.
(a) Denial of Deduction.--Paragraph (4) of section 199(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
``(E) Special rule for certain oil and gas income.--In the case of any taxpayer who is a major integrated oil company
(within the meaning of section 167(h)(5)) for the taxable year, the term `domestic production gross receipts' shall not include gross receipts from the production, refining, processing, transportation, or distribution of oil, gas, or any primary product (within the meaning of subsection (d)(9)) thereof.''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2015.
SEC. 213. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND
DEVELOPMENT COSTS; AMORTIZATION OF DISALLOWED
AMOUNTS.
(a) In General.--Section 263(c) of the Internal Revenue Code of 1986 is amended to read as follows:
``(c) Intangible Drilling and Development Costs in the Case of Oil and Gas Wells and Geothermal Wells.--
``(1) In general.--Notwithstanding subsection (a), and except as provided in subsection (i), regulations shall be prescribed by the Secretary under this subtitle corresponding to the regulations which granted the option to deduct as expenses intangible drilling and development costs in the case of oil and gas wells and which were recognized and approved by the Congress in House Concurrent Resolution 50, Seventy-ninth Congress. Such regulations shall also grant the option to deduct as expenses intangible drilling and development costs in the case of wells drilled for any geothermal deposit (as defined in section 613(e)(2)) to the same extent and in the same manner as such expenses are deductible in the case of oil and gas wells. This subsection shall not apply with respect to any costs to which any deduction is allowed under section 59(e) or 291.
``(2) Exclusion.--
``(A) In general.--This subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (within the meaning of section 167(h)(5)).
``(B) Amortization of amounts not allowable as deductions under subparagraph (a).--The amount not allowable as a deduction for any taxable year by reason of subparagraph (A) shall be allowable as a deduction ratably over the 60-month period beginning with the month in which the costs are paid or incurred. For purposes of section 1254, any deduction under this subparagraph shall be treated as a deduction under this subsection.''.
(b) Effective Date.--The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2015.
SEC. 214. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR
OIL AND GAS WELLS.
(a) In General.--Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
``(f) Application With Respect to Major Integrated Oil Companies.--In the case of any taxable year in which the taxpayer is a major integrated oil company (within the meaning of section 167(h)(5)), the allowance for percentage depletion shall be zero.''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2015.
SEC. 215. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.
(a) In General.--Section 193 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
``(d) Application With Respect to Major Integrated Oil Companies.--
``(1) In general.--This section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (within the meaning of section 167(h)(5)).
``(2) Amortization of amounts not allowable as deductions under paragraph (1).--The amount not allowable as a deduction for any taxable year by reason of paragraph (1) shall be allowable as a deduction ratably over the 60-month period beginning with the month in which the costs are paid or incurred.''.
(b) Effective Date.--The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2015.
SEC. 216. MODIFICATION OF DEFINITION OF MAJOR INTEGRATED OIL
COMPANY.
(a) In General.--Paragraph (5) of section 167(h) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
``(C) Certain successors in interest.--For purposes of this paragraph, the term `major integrated oil company' includes any successor in interest of a company that was described in subparagraph (B) in any taxable year, if such successor controls more than 50 percent of the crude oil production or natural gas production of such company.''.
(b) Conforming Amendments.--
(1) In general.--Subparagraph (B) of section 167(h)(5) of the Internal Revenue Code of 1986 is amended by inserting
``except as provided in subparagraph (C),'' after ``For purposes of this paragraph,''.
(2) Taxable years tested.--Clause (iii) of section 167(h)(5)(B) of such Code is amended--
(A) by striking ``does not apply by reason of paragraph (4) of section 613A(d)'' and inserting ``did not apply by reason of paragraph (4) of section 613A(d) for any taxable year after 2004'', and
(B) by striking ``does not apply'' in subclause (II) and inserting ``did not apply for the taxable year''.
(c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2015.
Subtitle B--Outer Continental Shelf Oil and Natural Gas
SEC. 221. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND
DEEP GAS ROYALTY RELIEF.
(a) In General.--Sections 344 and 345 of the Energy Policy Act of 2005 (42 U.S.C. 15904, 15905) are repealed.
(b) Administration.--The Secretary of the Interior shall not be required to provide for royalty relief in the lease sale terms beginning with the first lease sale held on or after the date of enactment of this Act for which a final notice of sale has not been published.
Subtitle C--Miscellaneous
SEC. 231. DEFICIT REDUCTION.
The net amount of any savings realized as a result of the enactment of this Act and the amendments made by this title
(after any expenditures authorized by this title and the amendments made by this title) shall be deposited in the Treasury and used for Federal budget deficit reduction or, if there is no Federal budget deficit, for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.
SEC. 232. BUDGETARY EFFECTS.
The budgetary effects of this title, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this title, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.
______
SA 65. Mr. MENENDEZ (for himself and Mrs. Gillibrand) submitted an amendment intended to be proposed to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. LIMITS ON LIABILITY FOR OIL SPILLS.
Section 1004(a) of the Oil Pollution Act of 1990 (33 U.S.C. 2704(a)) is amended--
(1) in paragraph (1), by adding ``and'' after the semicolon at the end;
(2) in paragraph (2), by striking the semicolon and inserting a period; and
(3) by striking paragraphs (3) and (4).
______
SA 66. Mr. COATS submitted an amendment intended to be proposed by him to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
After section 2, insert the following:
SEC. _. LIMITATION ON AUTHORITY TO ISSUE REGULATIONS UNDER
THE SURFACE MINING CONTROL AND RECLAMATION ACT
OF 1977.
The Secretary of the Interior may not, before December 31, 2016, issue or approve any proposed or final regulation under the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1201 et seq.) that would--
(1) adversely impact employment in coal mines in the United States;
(2) cause a reduction in revenue received by the Federal Government or any State, tribal, or local government, by reducing through regulation the quantity of coal in the United States that is available for mining;
(3) reduce the quantity of coal available for domestic consumption or for export;
(4) designate any area as unsuitable for surface coal mining and reclamation operations; or
(5) expose the United States to liability for taking the value of privately owned coal through regulation.
______
SA 67. Mr. SULLIVAN submitted an amendment intended to be proposed by him to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. POWERS OF ENVIRONMENTAL PROTECTION AGENCY.
Section 3063(a) of title 18, United States Code, is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively.
______
SA 68. Mr. CARDIN submitted an amendment intended to be proposed by him to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. COMMUNITY RIGHT TO PROTECT LOCAL WATER SUPPLIES.
(a) Findings.--Congress finds that--
(1) there are 2,537 wells within 1 mile of the proposed Keystone XL pipeline, including 39 public water supply wells and 20 private wells within 100 feet of the pipeline right of way;
(2) 254 miles of the proposed Keystone XL pipeline would traverse over the shallow Ogallala Aquifer, the largest underground fresh water source in the United States, underlying 8 States and 2,000,000 people, including 10.5 miles where the groundwater lies at depths between 5 and 10 feet and another 12.4 miles where the water table is at a depth of 10 to 15 feet;
(3) on July 26, 2010, a pipeline ruptured near Marshall, Michigan, releasing 843,000 gallons of tar sands diluted bitumen into Talmadge Creek, flowing into the Kalamazoo River;
(4) the Talmadge Creek tar sands spill is the costliest inland oil spill cleanup in United States history, and the Kalamazoo River continues to be contaminated from the spill;
(5) on March 29, 2013, the first pipeline of the United States to transport Canadian tar sands to the Gulf Coast, the ExxonMobil Pegasus Pipeline, ruptured, spilling 210,000 gallons of tar sands diluted bitumen in Mayflower, Arkansas; and
(6) following the Pegasus Pipeline tar sands spill, individuals in the Mayflower community experienced severe headaches, nausea, and respiratory infections.
(b) Petition to Protect Local Water Supplies.--
(1) In general.--Not later than 60 days after the date of enactment of this Act and prior to construction of the pipeline described in section 2(a), the President, or the designee of the President, shall provide to each municipality or county that relies on drinking water from a source that may be affected by a tar sands spill from the pipeline an analysis of the potential risks to public health and the environment from a leak or rupture of that pipeline.
(2) Notification to governors.--The President shall provide a copy of the analysis described in paragraph (1) to the Governor of each State in which an affected municipality or county is located.
(3) Effect on construction.--Construction of the pipeline described in section 2(a) may not begin if the Governor of a State with an affected municipality or county submits, not later than 30 days after receiving an analysis under paragraph (2), a petition to the President requesting that the pipeline not be located in the affected municipality or county.
(4) Withdrawal.--A Governor may withdraw a petition submitted under paragraph (3) at any time.
(5) Right of action.--A property owner with a private water well drilled into any portion of an aquifer that is below the proposed pipeline described in section 2(a) may sue the owner of the pipeline for damages if--
(A) the well water of the property owner becomes contaminated; and
(B) the property owner demonstrates that the well water was safe prior to construction and operation of the pipeline.
______
SA 69. Mr. DURBIN submitted an amendment intended to be proposed to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve the Keystone XL Pipeline; as follows:
At the appropriate place, insert the following:
SEC. ___. REGULATION OF TRANSPORTATION AND STORAGE OF
PETROLEUM COKE.
This Act shall not take effect prior to the date that--
(1) the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Transportation, promulgates rules concerning the storage and transportation of petroleum coke that ensure the protection of public and ecological health; and
(2) petroleum coke is no longer exempt from regulation under section 101(14) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601(14)), which may be established either by an Act of Congress or any regulations, rules, or guidance issued by the Administrator of the Environmental Protection Agency.
______
SA 70. Mr. PETERS (for himself and Ms. Stabenow) submitted an amendment intended to be proposed to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. PHMSA GREAT LAKES RESOURCES AND STUDY.
The pipeline described in section 2(a) shall not be constructed, connected, operated, or maintained until the Administrator of the Pipeline and Hazardous Materials Safety Administration--
(1) certifies to Congress that the Pipeline and Hazardous Materials Safety Administration has sufficient resources to carry out the duties of the Pipeline and Hazardous Materials Safety Administration for pipelines in the Great Lakes; and
(2) submits to Congress the results of a study on recommendations for special conditions on pipelines in the Great Lakes, similar to the recommendations in Appendix B of the environmental impact statement described in section 2(b).
______
SA 71. Mr. LEE submitted an amendment intended to be proposed by him to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. APPLICATIONS FOR PERMITS TO DRILL REFORM AND
PROCESS.
Section 17(p) of the Mineral Leasing Act (30 U.S.C. 226(p)) is amended by striking paragraph (2) and inserting the following:
``(2) Applications for permits to drill reform and process.--
``(A) Timeline.--
``(i) In general.--The Secretary shall decide whether to issue a permit to drill not later than 30 days after receiving an application for the permit.
``(ii) Extension.--The Secretary may extend the period in clause (i) for up to 2 periods of 15 days each, if the Secretary has given written notice of the delay to the applicant.
``(iii) Notice requirements.--Written notice under clause
(ii) shall--
``(I) be in the form of a letter from the Secretary or a designee of the Secretary; and
``(II) include the names and titles of the persons processing the application, the specific reasons for the delay, and a specific date a final decision on the application is expected.
``(B) Notice of reasons for denial.--If the application is denied, the Secretary shall provide the applicant--
``(i) in writing, clear and comprehensive reasons why the application was not accepted and detailed information concerning any deficiencies; and
``(ii) an opportunity to remedy any deficiencies.
``(C) Application considered approved.--
``(i) In general.--If the Secretary has not made a decision on the application by the end of the 60-day period beginning on the date the application is received by the Secretary, the application is considered approved, except in cases in which existing reviews under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) are incomplete.
``(ii) Environmental reviews.--Existing reviews under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) shall be completed not later than 180 days after receiving an application for the permit.
``(iii) Failure to complete.--If all existing reviews are not completed during the 180-day period described in clause
(ii), the project subject to the application shall be considered to have no significant impact in accordance with section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) and section 7(a)(2) of the Endangered Species Act of 1973 (16 U.S.C. 1536(a)(2)) and that classification shall be considered to be a final agency action.
``(D) Denial of permit.--If the Secretary decides not to issue a permit to drill in accordance with subparagraph (A), the Secretary shall--
``(i) provide to the applicant a description of the reasons for the denial of the permit;
``(ii) allow the applicant to resubmit an application for a permit to drill during the 10-day period beginning on the date the applicant receives the description of the denial from the Secretary; and
``(iii) issue or deny any resubmitted application not later than 10 days after the date the application is submitted to the Secretary.
``(E) Judicial review.--Actions of the Secretary carried out in accordance with this paragraph shall not be subject to judicial review.''.
______
SA 72. Mr. MENENDEZ (for himself and Ms. Cantwell) submitted an amendment intended to be proposed to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
In section 2 of the amendment, strike subsection (e) and insert the following:
(e) Private Property Protection.--Land or an interest in land for the pipeline and cross-border facilities described in subsection (a) may only be acquired from willing sellers.
______
SA 73. Mr. MORAN (for himself and Mr. Cruz) submitted an amendment intended to be proposed by him to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the end of the amendment, add the following:
SEC. ___. DELISTING OF LESSER PRAIRIE-CHICKEN AS THREATENED
SPECIES.
Notwithstanding the final rule of the United States Fish and Wildlife Service entitled ``Endangered and Threatened Wildlife and Plants; Determination of Threatened Status for the Lesser Prairie-Chicken'' (79 Fed. Reg. 19974 (April 10, 2014)), the lesser prairie-chicken (Tympanuchus pallidicinctus) shall not be listed as a threatened species under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.).
______
SA 74. Mr. REED (for himself, Ms. Collins, Mr. Sanders, Mr. Whitehouse, Mr. Casey, Mr. Coons, and Mr. Schumer) submitted an amendment intended to be proposed by him to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. FINDINGS AND SENSE OF THE SENATE.
(a) Findings.--The Senate finds the following:
(1) The Low-Income Home Energy Assistance Program (referred to in this section as
``LIHEAP'') is the main Federal program that helps low-income households and senior citizens with their energy bills, providing vital assistance during both the cold winter and hot summer months.
(2) Recipients of LIHEAP assistance are among the most vulnerable individuals in the country, with more than 90 percent of LIHEAP households having at least one member who is a child, a senior citizen, or disabled, and 20 percent of LIHEAP households including at least one veteran.
(3) The number of households eligible for LIHEAP assistance continues to exceed available funding, with current funding reaching just 20 percent of the eligible population.
(4) The average LIHEAP grant covers just a fraction of home energy costs, leaving many low-income families and senior citizens struggling to pay their energy bills and with fewer resources available to meet other essential needs.
(5) Access to affordable home energy is a matter of health and safety for many low-income households, children, senior citizens, and veterans.
(b) Sense of the Senate.--It is the sense of the Senate that LIHEAP should be funded at not less than $4,700,000,000 annually, to ensure that more low-income households and children, senior citizens, individuals with disabilities, and veterans can meet basic home energy needs.
______
SA 75. Mr. CARDIN submitted an amendment intended to be proposed by him to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. COMMUNITY RIGHT TO PROTECT LOCAL WATER SUPPLIES.
(a) Findings.--Congress finds that--
(1) there are 2,537 wells within 1 mile of the proposed Keystone XL pipeline, including 39 public water supply wells and 20 private wells within 100 feet of the pipeline right of way;
(2) 254 miles of the proposed Keystone XL pipeline would traverse over the shallow Ogallala Aquifer, the largest underground fresh water source in the United States, underlying 8 States and 2,000,000 people, including 10.5 miles where the groundwater lies at depths between 5 and 10 feet and another 12.4 miles where the water table is at a depth of 10 to 15 feet;
(3) on July 26, 2010, a pipeline ruptured near Marshall, Michigan, releasing 843,000 gallons of tar sands diluted bitumen into Talmadge Creek, flowing into the Kalamazoo River;
(4) the Talmadge Creek tar sands spill is the costliest inland oil spill cleanup in United States history, and the Kalamazoo River continues to be contaminated from the spill;
(5) on March 29, 2013, the first pipeline of the United States to transport Canadian tar sands to the Gulf Coast, the ExxonMobil Pegasus Pipeline, ruptured, spilling 210,000 gallons of tar sands diluted bitumen in Mayflower, Arkansas; and
(6) following the Pegasus Pipeline tar sands spill, individuals in the Mayflower community experienced severe headaches, nausea, and respiratory infections.
(b) Petition to Protect Local Water Supplies.--
(1) In general.--Not later than 60 days after the date of enactment of this Act and prior to construction of the pipeline described in section 2(a), the President, or the designee of the President, shall provide to each municipality or county that relies on drinking water from a source that may be affected by a tar sands spill from the pipeline an analysis of the potential risks to public health and the environment from a leak or rupture of that pipeline.
(2) Notification to governors.--The President shall provide a copy of the analysis described in paragraph (1) to the Governor of each State in which an affected municipality or county is located.
(3) Effect on construction.--Construction of the pipeline described in section 2(a) may not begin if the Governor of a State with an affected municipality or county submits, not later than 30 days after receiving an analysis under paragraph (2), a petition to the President requesting that the pipeline not be located in the affected municipality or county.
(4) Withdrawal.--A Governor may withdraw a petition submitted under paragraph (3) at any time.
(5) Right of action.--A property owner with a private water well drilled into any portion of an aquifer that is below the proposed pipeline described in section 2(a) may sue the owner of the pipeline for damages if--
(A) the well water of the property owner becomes contaminated as a result of--
(i) construction activities associated with the pipeline; or
(ii) a rupture in the pipeline; and
(B) the property owner demonstrates that the well water was safe prior to construction and operation of the pipeline.
______
SA 76. Mrs. GILLIBRAND submitted an amendment intended to be proposed to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SECTION __. USE OF FEDERAL DISASTER RELIEF AND EMERGENCY
ASSISTANCE FOR ENERGY-EFFICIENT PRODUCTS AND
STRUCTURES.
(a) In General.--Title III of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5141 et seq.) is amended by adding at the end the following:
``SEC. 327. USE OF ASSISTANCE FOR ENERGY-EFFICIENT PRODUCTS
AND STRUCTURES.
``(a) Definitions.--In this section--
``(1) the term `energy-efficient product' means a product that--
``(A) meets or exceeds the requirements for designation under an Energy Star program established under section 324A of the of the Energy Policy and Conservation Act of 1975 (42 U.S.C. 6294a); or
``(B) meets or exceeds the requirements for designation as being among the highest 25 percent of equivalent products for energy efficiency under the Federal Energy Management Program; and
``(2) the term `energy-efficient structure' means a residential structure, a public facility, or a private nonprofit facility that meets or exceeds the requirements of American Society of Heating, Refrigerating and Air-Conditioning Engineers Standard 90.1-2010 or the 2013 International Energy Conservation Code, or any successor thereto.
``(b) Use of Assistance.--A recipient of assistance relating to a major disaster or emergency may use the assistance to replace or repair a damaged product or structure with an energy-efficient product or energy-efficient structure.''.
(b) Applicability.--The amendment made by this section shall apply to assistance made available under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) before, on, or after the date of enactment of this Act that is expended on or after the date of enactment of this Act.
______
SA 77. Mr. UDALL (for himself, Mr. Markey, and Mr. Bennet) submitted an amendment intended to be proposed by him to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:
After section 2, insert the following:
SEC. ____. RENEWABLE ELECTRICITY STANDARD.
(a) In General.--Title VI of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end the following:
``SEC. 610. RENEWABLE ELECTRICITY STANDARD.
``(a) Definitions.--In this section:
``(1) Base quantity of electricity.--
``(A) In general.--The term `base quantity of electricity' means the total quantity of electric energy sold by a retail electric supplier, expressed in terms of kilowatt hours, to electric customers for purposes other than resale during the most recent calendar year for which information is available.
``(B) Exclusions.--The term `base quantity of electricity' does not include--
``(i) electric energy that is not incremental hydropower generated by a hydroelectric facility; and
``(ii) electricity generated through the incineration of municipal solid waste.
``(2) Biomass.--
``(A) In general.--The term `biomass' means--
``(i) cellulosic (plant fiber) organic materials from a plant that is planted for the purpose of being used to produce energy;
``(ii) nonhazardous plant or algal matter that is derived from--
``(I) an agricultural crop, crop byproduct, or residue resource; or
``(II) waste, such as landscape or right-of-way trimmings
(but not including municipal solid waste, recyclable postconsumer waste paper, painted, treated, or pressurized wood, wood contaminated with plastic, or metals);
``(iii) animal waste or animal byproducts; and
``(iv) landfill methane.
``(B) National forest land and certain other public land.--In the case of organic material removed from National Forest System land or from public land administered by the Secretary of the Interior, the term `biomass' means only organic material from--
``(i) ecological forest restoration;
``(ii) precommercial thinnings;
``(iii) brush;
``(iv) mill residues; or
``(v) slash.
``(C) Exclusion of certain federal land.--Notwithstanding subparagraph (B), the term `biomass' does not include material or matter that would otherwise qualify as biomass if the material or matter is located on the following Federal land:
``(i) Federal land containing old growth forest or late successional forest unless the Secretary of the Interior or the Secretary of Agriculture determines that the removal of organic material from the land--
``(I) is appropriate for the applicable forest type; and
``(II) maximizes the retention of--
``(aa) late-successional and large and old growth trees;
``(bb) late-successional and old growth forest structure; and
``(cc) late-successional and old growth forest composition.
``(ii) Federal land on which the removal of vegetation is prohibited, including components of the National Wilderness Preservation System.
``(iii) Wilderness study areas.
``(iv) Inventoried roadless areas.
``(v) Components of the National Landscape Conservation System.
``(vi) National Monuments.
``(3) Existing facility.--The term `existing facility' means a facility for the generation of electric energy from a renewable energy resource that is not an eligible facility.
``(4) Incremental hydropower.--The term `incremental hydropower' means additional generation that is achieved from increased efficiency or additions of capacity made on or after--
``(A) the date of enactment of this section; or
``(B) the effective date of an existing applicable State renewable portfolio standard program at a hydroelectric facility that was placed in service before that date.
``(5) Indian land.--The term `Indian land' means--
``(A) any land within the limits of any Indian reservation, pueblo, or rancheria;
``(B) any land not within the limits of any Indian reservation, pueblo, or rancheria title to which on the date of enactment of this section was held by--
``(i) the United States for the benefit of any Indian tribe or individual; or
``(ii) any Indian tribe or individual subject to restriction by the United States against alienation;
``(C) any dependent Indian community; or
``(D) any land conveyed to any Alaska Native corporation under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).
``(6) Indian tribe.--The term `Indian tribe' means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.
``(7) Renewable energy.--The term `renewable energy' means electric energy generated by a renewable energy resource.
``(8) Renewable energy resource.--The term `renewable energy resource' means solar, wind, ocean, tidal, geothermal energy, biomass, landfill gas, incremental hydropower, or hydrokinetic energy.
``(9) Repowering or cofiring increment.--The term
`repowering or cofiring increment' means--
``(A) the additional generation from a modification that is placed in service on or after the date of enactment of this section, to expand electricity production at a facility used to generate electric energy from a renewable energy resource;
``(B) the additional generation above the average generation during the 3-year period ending on the date of enactment of this section at a facility used to generate electric energy from a renewable energy resource or to cofire biomass that was placed in service before the date of enactment of this section; or
``(C) the portion of the electric generation from a facility placed in service on or after the date of enactment of this section, or a modification to a facility placed in service before the date of enactment of this section made on or after January 1, 2001, associated with cofiring biomass.
``(10) Retail electric supplier.--
``(A) In general.--The term `retail electric supplier' means a person that sells electric energy to electric consumers that sold not less than 1,000,000 megawatt hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year.
``(B) Inclusion.--The term `retail electric supplier' includes a person that sells electric energy to electric consumers that, in combination with the sales of any affiliate organized after the date of enactment of this section, sells not less than 1,000,000 megawatt hours of electric energy to consumers for purposes other than resale.
``(C) Sales to parent companies or affiliates.--For purposes of this paragraph, sales by any person to a parent company or to other affiliates of the person shall not be treated as sales to electric consumers.
``(D) Governmental agencies.--
``(i) In general.--Except as provided in clause (ii), the term `retail electric supplier' does not include--
``(I) the United States, a State, any political subdivision of a State, or any agency, authority, or instrumentality of the United States, State, or political subdivision; or
``(II) a rural electric cooperative.
``(ii) Inclusion.--The term `retail electric supplier' includes an entity that is a political subdivision of a State, or an agency, authority, or instrumentality of the United States, a State, a political subdivision of a State, a rural electric cooperative that sells electric energy to electric consumers, or any other entity that sells electric energy to electric consumers that would not otherwise qualify as a retail electric supplier if the entity notifies the Secretary that the entity voluntarily agrees to participate in the Federal renewable electricity standard program.
``(b) Compliance.--For calendar year 2015 and each calendar year thereafter, each retail electric supplier shall meet the requirements of subsection (c) by submitting to the Secretary, not later than April 1 of the following calendar year, 1 or more of the following:
``(1) Federal renewable energy credits issued under subsection (e).
``(2) Certification of the renewable energy generated and electricity savings pursuant to the funds associated with State compliance payments as specified in subsection
(e)(4)(G).
``(3) Alternative compliance payments pursuant to subsection (h).
``(c) Required Annual Percentage.--For each of calendar years 2015 through 2039, the required annual percentage of the base quantity of electricity of a retail electric supplier that shall be generated from renewable energy resources, or otherwise credited towards the percentage requirement pursuant to subsection (d), shall be the applicable percentage specified in the following table:
Required Amount
``Calendar Years percentage
2015.............................................................8.5
2016.............................................................9.5
2017............................................................11.0
2018............................................................12.5
2019............................................................14.0
2020............................................................15.5
2021............................................................17.0
2022............................................................19.0
2023............................................................21.0
2024............................................................23.0
2025 and thereafter through 2039................................25.0.
``(d) Renewable Energy Credits.--
``(1) In general.--A retail electric supplier may satisfy the requirements of subsection (b)(1) through the submission of Federal renewable energy credits--
``(A) issued to the retail electric supplier under subsection (e);
``(B) obtained by purchase or exchange under subsection
(f); or
``(C) borrowed under subsection (g).
``(2) Federal renewable energy credits.--A Federal renewable energy credit may be counted toward compliance with subsection (b)(1) only once.
``(e) Issuance of Federal Renewable Energy Credits.--
``(1) In general.--Not later than 1 year after the date of enactment of this section, the Secretary shall establish by rule a program--
``(A) to verify and issue Federal renewable energy credits to generators of renewable energy;
``(B) to track the sale, exchange, and retirement of the credits; and
``(C) to enforce the requirements of this section.
``(2) Existing non-federal tracking systems.--To the maximum extent practicable, in establishing the program, the Secretary shall rely on existing and emerging State or regional tracking systems that issue and track non-Federal renewable energy credits.
``(3) Application.--
``(A) In general.--An entity that generates electric energy through the use of a renewable energy resource may apply to the Secretary for the issuance of renewable energy credits.
``(B) Eligibility.--To be eligible for the issuance of the credits, the applicant shall demonstrate to the Secretary that--
``(i) the electric energy will be transmitted onto the grid; or
``(ii) in the case of a generation offset, the electric energy offset would have otherwise been consumed onsite.
``(C) Contents.--The application shall indicate--
``(i) the type of renewable energy resource that is used to produce the electricity;
``(ii) the location at which the electric energy will be produced; and
``(iii) any other information the Secretary determines appropriate.
``(4) Quantity of federal renewable energy credits.--
``(A) In general.--Except as otherwise provided in this paragraph, the Secretary shall issue to a generator of electric energy 1 Federal renewable energy credit for each kilowatt hour of electric energy generated by the use of a renewable energy resource at an eligible facility.
``(B) Incremental hydropower.--
``(i) In general.--For purpose of compliance with this section, Federal renewable energy credits for incremental hydropower shall be based on the increase in average annual generation resulting from the efficiency improvements or capacity additions.
``(ii) Water flow information.--The incremental generation shall be calculated using the same water flow information that is--
``(I) used to determine a historic average annual generation baseline for the hydroelectric facility; and
``(II) certified by the Secretary or the Federal Energy Regulatory Commission.
``(iii) Operational changes.--The calculation of the Federal renewable energy credits for incremental hydropower shall not be based on any operational changes at the hydroelectric facility that is not directly associated with the efficiency improvements or capacity additions.
``(C) Indian land.--
``(i) In general.--The Secretary shall issue 2 renewable energy credits for each kilowatt hour of electric energy generated and supplied to the grid in a calendar year through the use of a renewable energy resource at an eligible facility located on Indian land.
``(ii) Biomass.--For purposes of this paragraph, renewable energy generated by biomass cofired with other fuels is eligible for 2 credits only if the biomass was grown on the land.
``(D) On-site eligible facilities.--
``(i) In general.--In the case of electric energy generated by a renewable energy resource at an on-site eligible facility that is not larger than 1 megawatt in capacity and is used to offset all or part of the requirements of a customer for electric energy, the Secretary shall issue 3 renewable energy credits to the customer for each kilowatt hour generated.
``(ii) Indian land.--In the case of an on-site eligible facility on Indian land, the Secretary shall issue not more than 3 credits per kilowatt hour.
``(E) Combination of renewable and nonrenewable energy resources.--If both a renewable energy resource and a nonrenewable energy resource are used to generate the electric energy, the Secretary shall issue the Federal renewable energy credits based on the proportion of the renewable energy resources used.
``(F) Retail electric suppliers.--If a generator has sold electric energy generated through the use of a renewable energy resource to a retail electric supplier under a contract for power from an existing facility and the contract has not determined ownership of the Federal renewable energy credits associated with the generation, the Secretary shall issue the Federal renewable energy credits to the retail electric supplier for the duration of the contract.
``(G) Compliance with state renewable portfolio standard programs.--Payments made by a retail electricity supplier, directly or indirectly, to a State for compliance with a State renewable portfolio standard program, or for an alternative compliance mechanism, shall be valued at 1 credit per kilowatt hour for the purpose of subsection (b)(2) based on the quantity of electric energy generation from renewable resources that results from the payments.
``(f) Renewable Energy Credit Trading.--
``(1) In general.--A Federal renewable energy credit may be sold, transferred, or exchanged by the entity to whom the credit is issued or by any other entity that acquires the Federal renewable energy credit, other than renewable energy credits from existing facilities.
``(2) Carryover.--A Federal renewable energy credit for any year that is not submitted to satisfy the minimum renewable generation requirement of subsection (c) for that year may be carried forward for use pursuant to subsection (b)(1) within the next 3 years.
``(3) Delegation.--The Secretary may delegate to an appropriate market-making entity the administration of a national tradeable renewable energy credit market for purposes of creating a transparent national market for the sale or trade of renewable energy credits.
``(g) Renewable Energy Credit Borrowing.--
``(1) In general.--Not later than December 31, 2015, a retail electric supplier that has reason to believe the retail electric supplier will not be able to fully comply with subsection (b) may--
``(A) submit a plan to the Secretary demonstrating that the retail electric supplier will earn sufficient Federal renewable energy credits within the next 3 calendar years that, when taken into account, will enable the retail electric supplier to meet the requirements of subsection (b) for calendar year 2015 and the subsequent calendar years involved; and
``(B) on the approval of the plan by the Secretary, apply Federal renewable energy credits that the plan demonstrates will be earned within the next 3 calendar years to meet the requirements of subsection (b) for each calendar year involved.
``(2) Repayment.--The retail electric supplier shall repay all of the borrowed Federal renewable energy credits by submitting an equivalent number of Federal renewable energy credits, in addition to the credits otherwise required under subsection (b), by calendar year 2023 or any earlier deadlines specified in the approved plan.
``(h) Alternative Compliance Payments.--As a means of compliance under subsection (b)(4), the Secretary shall accept payment equal to the lesser of--
``(1) 200 percent of the average market value of Federal renewable energy credits and Federal energy efficiency credits for the applicable compliance period; or
``(2) 3 cents per kilowatt hour (as adjusted on January 1 of each year following calendar year 2006 based on the implicit price deflator for the gross national product).
``(i) Information Collection.--The Secretary may collect the information necessary to verify and audit--
``(1)(A) the annual renewable energy generation of any retail electric supplier; and
``(B) Federal renewable energy credits submitted by a retail electric supplier pursuant to subsection (b)(1);
``(2) the validity of Federal renewable energy credits submitted for compliance by a retail electric supplier to the Secretary; and
``(3) the quantity of electricity sales of all retail electric suppliers.
``(j) Environmental Savings Clause.--Incremental hydropower shall be subject to all applicable environmental laws and licensing and regulatory requirements.
``(k) State Programs.--
``(1) In general.--Nothing in this section diminishes any authority of a State or political subdivision of a State--
``(A) to adopt or enforce any law (including regulations) respecting renewable energy, including programs that exceed the required quantity of renewable energy under this section; or
``(B) to regulate the acquisition and disposition of Federal renewable energy credits by retail electric suppliers.
``(2) Compliance with section.--No law or regulation referred to in paragraph (1)(A) shall relieve any person of any requirement otherwise applicable under this section.
``(3) Coordination with state program.--The Secretary, in consultation with States that have in effect renewable energy programs, shall--
``(A) preserve the integrity of the State programs, including programs that exceed the required quantity of renewable energy under this section; and
``(B) facilitate coordination between the Federal program and State programs.
``(4) Existing renewable energy programs.--In the regulations establishing the program under this section, the Secretary shall incorporate common elements of existing renewable energy programs, including State programs, to ensure administrative ease, market transparency and effective enforcement.
``(5) Minimization of administrative burdens and costs.--In carrying out this section, the Secretary shall work with the States to minimize administrative burdens and costs to retail electric suppliers.
``(l) Recovery of Costs.--An electric utility that has sales of electric energy that are subject to rate regulation
(including any utility with rates that are regulated by the Commission and any State regulated electric utility) shall not be denied the opportunity to recover the full amount of the prudently incurred incremental cost of renewable energy obtained to comply with the requirements of subsection (b).
``(m) Program Review.--
``(1) In general.--The Secretary shall enter into an arrangement with the National Academy of Sciences under which the Academy shall conduct a comprehensive evaluation of all aspects of the program established under this section.
``(2) Evaluation.--The study shall include an evaluation of--
``(A) the effectiveness of the program in increasing the market penetration and lowering the cost of the eligible renewable energy technologies;
``(B) the opportunities for any additional technologies and sources of renewable energy emerging since the date of enactment of this section;
``(C) the impact on the regional diversity and reliability of supply sources, including the power quality benefits of distributed generation;
``(D) the regional resource development relative to renewable potential and reasons for any investment in renewable resources; and
``(E) the net cost/benefit of the renewable electricity standard to the national and State economies, including--
``(i) retail power costs;
``(ii) the economic development benefits of investment;
``(iii) avoided costs related to environmental and congestion mitigation investments that would otherwise have been required;
``(iv) the impact on natural gas demand and price; and
``(v) the effectiveness of green marketing programs at reducing the cost of renewable resources.
``(3) Report.--Not later than January 1, 2019, the Secretary shall transmit to Congress a report describing the results of the evaluation and any recommendations for modifications and improvements to the program.
``(n) State Renewable Energy Account.--
``(1) In general.--There is established in the Treasury a State renewable energy account.
``(2) Deposits.--All money collected by the Secretary from the alternative compliance payments under subsection (h) shall be deposited into the State renewable energy account established under paragraph (1).
``(3) Grants.--
``(A) In general.--Proceeds deposited in the State renewable energy account shall be used by the Secretary, subject to annual appropriations, for a program to provide grants--
``(i) to the State agency responsible for administering a fund to promote renewable energy generation for customers of the State or an alternative agency designated by the State; or
``(ii) if no agency described in clause (i), to the State agency developing State energy conservation plans under section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322).
``(B) Use.--The grants shall be used for the purpose of--
``(i) promoting renewable energy production; and
``(ii) providing energy assistance and weatherization services to low-income consumers.
``(C) Criteria.--The Secretary may issue guidelines and criteria for grants awarded under this paragraph.
``(D) State-approved funding mechanisms.--At least 75 percent of the funds provided to each State for each fiscal year shall be used to promote renewable energy production through grants, production incentives, or other State-approved funding mechanisms.
``(E) Allocation.--The funds shall be allocated to the States on the basis of retail electric sales subject to the renewable electricity standard under this section or through voluntary participation.
``(F) Records.--State agencies receiving grants under this paragraph shall maintain such records and evidence of compliance as the Secretary may require.''.
(b) Table of Contents Amendment.--The table of contents of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) is amended by adding at the end of the items relating to title VI the following:
``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Renewable electricity standard.''.
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