“TEXT OF AMENDMENTS” published by the Congressional Record on April 22, 2002

Volume 148, No. 45 covering the 2nd Session of the 107th Congress (2001 - 2002) 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 Department of Interior was published in the Senate section on pages S3022-S3106 on April 22, 2002.

The publication is reproduced in full below:

TEXT OF AMENDMENTS

SA 3177. Mr. MURKOWSKI submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 81, strike line 14 and all that follows through page 92, line 16.

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SA 3178. Mr. MURKOWSKI submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 94, line 5, strike ``renewable''.

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SA 3179. Mr. MURKOWSKI submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 109, line 5, strike ``renewable''.

____

SA 3180. Mr. MURKOWSKI submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 109, line 12, strike ``renewable''.

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SA 3181. Mr. MURKOWSKI submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 109, line 14, strike ``renewable''.

____

SA 3182. Mr. KYL (for himself and Mr. Graham) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle

(for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place insert the following:

SEC. . PERMANENT REPEAL OF ESTATE TAXES.

Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by striking ``this Act'' and all that follows through ``2010.'' in subsection

(a) and inserting ``this Act (other than title V) shall not apply to taxable, plan, or limitation years beginning after December 31, 2010.'', and by striking ``, estates, gifts, and transfers'' in subsection (b).

____

SA 3183. Mr. ROBERTS submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following section.

SEC. . RESEARCH PROGRAM.

(a) In General.--The Secretary may fund comprehensive geological, engineering, and geophysical studies concerning--

(1) natural gas products in storage facilities; and

(2) other related research topics.

(b) Priority.--In funding studies under subsection (a), the Secretary shall give priority to studies relating to storage facilities that have experienced releases of natural gas.

(1) interpret geology in the context of possible releases of natural gas;

(2) develop a comprehensive and quantitative understanding of geology relevant to past and possible future migration and loss of stored natural gas;

(3) include an engineering analysis of existing storage facilities, including laboratory analysis of well construction and operations;

(4) integrate information through simulations using geomechanical and fluid flow models to reconstruct or predict geological events that caused or may cause releases of natural gas from storage facilities;

(5) evaluate--

(A) properties of underground reservoirs and surrounding geological strata;

(B) natural geological stresses; and

(6) use a cross-disciplinary approach using technologies in geophysical, petrophysical, hydrological, geomechanical, and remote sensing to characterize and model geology in the vicinity of a storage facility.

(d) Review.--The Office of Fossil Energy Research of the Department of Energy shall review applications for funding of studies under this section.

(e) Unsolicited Applications.--In addition to applications for funding of studies received in response to requests for proposals issued by the Secretary, the Secretary shall accept and consider for funding under this section any unsolicited application for research funding received by the Secretary that has research goals consistent with this section.

(f) Research Support.--The Secretary shall facilitate research support from other Federal agencies that have related geological, engineering, and other specialties.

(g) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $500,000 for each of fiscal years 2003 through 2006.

____

SA 3184. Mr. KYL submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 28 following line 16 insert the following:

SEC. 211. SERVICE OBLIGATIONS OF LOAD-SERVING ENTITIES.

Part II of the Federal Power Act is amended by inserting after section 207 the following new section:

``SERVICE OBLIGATIONS

``Sec. 207A. (a)(1) The Commission shall exercise its authority under this act to ensure that any load-serving entity that, as of the date of enactment of this section--

``(A) owns generation facilities, or holds rights under one or more long-term contracts to purchase electric energy, for the purpose of meeting a service obligation, and

``(B) by reason of ownership of transmission facilities, or one or more contracts for firm transmission service, holds firm transmission rights for delivery of the output of such generation facilities or such purchased energy to meet such service obligation, is entitled to use such firm transmission rights in order to deliver such output or purchased energy to meet that service obligation.

``(2) The Commission shall exercise its authority under this Act in a manner that facilitates the planning and expansion of transmission facilities to meet the reasonable needs of load-serving entities to satisfy their service obligations.

``(b) For purposes of this section:

``(1) The term `distribution utility' means an electric utility that has a service obligation to end-users.

``(2) The term `load-serving entity' means a distribution utility or an electric utility that has a service obligation to a distribution utility.

``(3) The term `service obligation' means (i) a requirement applicable to an electric utility under Federal, State or local law to provide electric service to end-users or to a distribution utility, or (ii) an obligation under a long-term firm sales contract (executed before the date of enactment of this section) to provide all or part of the electric energy necessary for a distribution utility to meet a requirement under clause (i).''

____

SA 3185. Mr. KYL submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 28 following line 16 insert the following:

SEC. 211. SERVICE OBLIGATIONS OF LOAD-SERVING ENTITIES.

Part II of the Federal Power Act is amended by inserting after section 207 the following new section:

``service obligations

``Sec. 207A. (a)(1) The Commission shall exercise its authority under this Act to ensure that any load-serving entity that, as of the date of enactment of this section--

``(A) owns generation facilities, or holds rights under one or more long-term contracts to purchase electric energy, for the purpose of meeting a service obligation, and

``(B) by reason of ownership of transmission facilities, or one or more long-term contracts or agreements for firm transmission service, holds firm transmission rights for delivery of the output of such generation facilities or such purchased energy to meet such service obligation, is entitled to use such firm transmission rights in order to deliver such output or purchased energy, or the output of other generating facilities or purchased energy to the extent deliverable using such rights, to meet that service obligation.

``(2) The Commission shall exercise its authority under this Act in a manner that facilities the planning and expansion of transmission facilities to meet the reasonable needs of load-serving entities to satisfy their existing and reasonably forecast service obligations.

``(b) For purposes of this section:

``(1) The term `distribution utility' means an electric utility that has a service obligation to end-users.

``(2) The term `load-serving entity' means a distribution utility or an electric utility that has a service obligation to a distribution utility.

``(3) The term `service obligation' means (i) a requirement applicable to an electric utility under Federal, State or local law or under long-term contract to provide electric service to end-users or to a distribution utility, or (ii) an obligation under a long-term firm sales contract (executed before the date of enactment of this section) to provide all or part of the electric energy necessary for a distribution utility to meet a requirement under clause (i).''

``(4) The term `long-term' means for a period of one year or more.''

____

SA 3186. Mr. HAGEL submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 370, strike line 3 and all that follows through page 384, line 19, and insert the following:

SEC. 1101. PURPOSE.

The purpose of this title is to establish a greenhouse gas reductions registry and information system that--

(1) is complete, consistent, transparent, and accurate;

(2) will create reliable and accurate data that can be used by public and private entities to design efficient and effective greenhouse gas emission reduction strategies; and,

(3) will encourage and acknowledge greenhouse gas emissions reductions.

SEC. 1102. DEFINITIONS.

In this title:

(1) Database.--The term ``database'' means the National Greenhouse Gas Database established under section 1104.

(2) Designated agency or agencies.--The term ``Designated Agency or Agencies'' means the Department or Departments or Agency or Agencies given the responsibility for a function or program under the Memorandum of Agreement entered into pursuant to section 1103.

(3) Direct emissions.--The term ``direct emissions'' means greenhouse gas emissions by an entity from a facility that is owned or controlled by that entity.

(4) Entity.--The term ``entity'' means--

(A) a person located in the United States; or

(B) a public or private entity, to the extent that the entity operates in the United States.

(5) Facility.--The term ``facility'' means all buildings, structures, or installations located on any 1 or more of contiguous or adjacent property or properties, or a fleet of 20 or more transportation vehicles, under common control of the same entity.

(6) Greenhouse gas.--The term ``greenhouse gas'' means--

(A) carbon dioxide;

(B) methane;

(D) hydrofluorocarbons;

(E) perfluorocarbons; and

(F) sulfur hexafluoride.

(7) Indirect emissions.--The term `indirect emissions' means greenhouse gas emissions that are a consequence of the activities of an entity but that are emitted from a facility owned or controlled by another entity and are not already reported as direct emissions by a covered entity.

(8) Sequestration.--The term `sequestration' means the capture, long-term separation, isolation, or removal of greenhouse gases from the atmosphere, including through a biological or geologic method such as reforestation or an underground reservoir.

SEC. 1103. ESTABLISHMENT OF MEMORANDUM OF AGREEMENT.

(a) Not later than 1 year after the date of enactment of this Act, the President, acting through the Chairman of the Council on Environmental Quality, shall direct the Department of Energy, the Department of Commerce, the Department of Agriculture, the Department of Transportation and the Environmental Protection Agency, to enter into a Memorandum of Agreement that will--

(1) recognize and maintain existing statutory and regulatory authorities, functions and programs that collect data on greenhouse gas emissions and effects and that are necessary for the operation of the National Greenhouse Gas Database;

(2) distribute additional responsibilities and activities identified by this title to Federal departments or agencies according to their mission and expertise and to maximize the use of existing resources; and

(3) provide for the comprehensive collection and analysis of data on the emissions related to product use, including fossil fuel and energy consuming appliances and vehicles.

(b) The Memorandum of Agreement entered into under subsection (a) shall, at a minimum, retain the following functions for the respective Departments and agencies:

(1) The Department of Energy shall be primarily responsible for developing, maintaining, and verifying the emissions reduction registry, under both this title and its authority under section 1605(b) of the Energy Policy Act of 1992 (42 U.S.C. 13385(b)).

(2) The Department of Commerce shall be primarily responsible for the development of measurement standards for emissions monitoring and verification technologies and methods to ensure that there is a consistent and technically accurate record of emissions, reductions and atmospheric concentrations of greenhouse gases for the database under this title.

(3) The Environmental Protection Agency shall be primarily responsible for emissions monitoring, measurement, verification and data collection, pursuant to this title and existing authority under titles IV and VIII of the Clean Air Act, and including mobile source emissions information from implementation of the Corporate Average Fuel Economy program under chapter 329 of title 49, United States Code, and the Agency's role in completing the national inventory for compliance with the United Nations Framework Convention on Climate Change.

(c) The Chairman shall publish a draft version of the Memorandum of Agreement in the Federal Register and solicit comments on it as soon as practicable and publish the final Memorandum of Agreement in the Federal Register not later than 15 months after the date of enactment of this Act.

(d) The final Memorandum of Agreement shall not be subject to judicial review.

SEC. 1104. NATIONAL GREENHOUSE GAS DATABASE.

(a) Establishment.--The Designated Agency or Agencies, working in consultation with the private sector and nongovernmental organizations, shall establish, operate and maintain a database to be known as the National Greenhouse Gas Database to collect, verify, and analyze information on--

(1) greenhouse gas emissions by entities located in the United States; and

(2) greenhouse gas emission reductions by entities based in the United States.

(b) National Greenhouse Gas Database Components.--The database shall consist of a registry of greenhouse gas emissions reductions.

(c) Deadline.--Not later than 2 years after the date of enactment of this Act, the Designated Agency or Agencies shall promulgate a rule to implement a comprehensive system for greenhouse gas emissions reporting and reductions registration. The Designated Agency or Agencies shall ensure that the system is designed to maximize completeness, transparency, and accuracy and to minimize measurement and reporting costs for covered entities.

(d) Required Elements of Database Reporting System.--

(1) Voluntary reporting.--An entity may voluntarily report to the Designated Agency or Agencies, for inclusion in the registry portion of the national database--

(A) with respect to the preceding calendar year and any greenhouse gas emitted by the entity--

(i) project reductions from facilities owned or controlled by the reporting entity in the United States;

(ii) transfers of project reductions to and from any other entity;

(iii) project reductions and transfers of project reductions outside the United States;

(iv) other indirect emissions; and

(v) product use phase emissions; and

(B) with respect to greenhouse gas emissions reductions activities carried out since 1990 and verified according to rules implementing paragraphs (3) and (5) and submitted to the Designated Agency or Agencies before the date that is three years after the date of enactment of this Act, those reductions that have been reported or submitted by an entity under section 1605(b) of the Energy Policy Act of 1992 (42 U.S.C. 13385(b)) or under other Federal or State voluntary greenhouse gas reduction programs.

(2) Types of activities.--Under paragraph (1), an entity may report projects that reduce greenhouse gas emissions or sequester a greenhouse gas, including--

(A) fuel switching;

(B) energy efficiency improvements;

(D) use of combined heat and power systems;

(E) management of cropland, grassland, and grazing land;

(F) forestry activities that increase forest carbon stocks or reduce forest carbon missions;

(G) carbon capture and storage;

(H) methane recovery; and

(I) greenhouse gas offset investments.

(3) Provision of verification information by reporting entities.--Each reporting entity shall provide information sufficient for the Designated Agency or Agencies to verify, in accordance with measurement and verification criteria developed under section 1106, that the greenhouse gas report of the reporting entity--

(A) has been accurately reported; and

(B) in the case of each voluntary report, represents--

(i) actual reductions in direct greenhouse gas emissions relative to historic emission levels and net of any increases in--

(I) direct emissions; and

(II) indirect emissions from--

(aa) all outsourced activities, contract manufacturing, wastes transferred from the control of an entity, and other relevant instances, as determined to be practicable under the rule promulgated under subsection (c); or

(bb) electricity, heat, and steam imported from another entity, as determined to be practicable under the rule promulgated under subsection (c); or

(ii) actual increases in net sequestration.

(4) Independent third-party verification.--A reporting entity may--

(A) obtain independent third-party verification; and

(B) present the results of the third-party verification to the Designated Agency or Agencies for consideration by the Designated Agency or Agencies in carrying out this subsection.

(5) Data quality.--The rule promulgated under subsection

(A) prevent the reporting of some or all of the same greenhouse gas emissions or emission reductions by more than 1 reporting entity;

(B) provide for corrections to errors in data submitted to the database;

(C) provide for adjustment to data by reporting entities that have had a significant organizational change (including mergers, acquisitions, and divestiture), in order to maintain comparability among data in the database over time;

(D) provide for adjustments to reflect new technologies or methods for measuring or calculating greenhouse gas emissions; and

(E) account for changes in registration of ownership of emissions reductions resulting from a voluntary private transaction between reporting entities.

(6) Availability of data.--The Designated Agency or Agencies shall ensure that information in the database is published, accessible to the public, and made available in electronic format on the Internet, except in cases where the Designated Agency or Agencies determine that publishing or making available the information would disclose information vital to national security.

(7) Data infrastructure.--The Designated Agency or Agencies shall ensure that the database uses and is integrated with existing Federal, regional, and state greenhouse gas data collection and reporting systems to the maximum extent possible and avoid duplication of such systems.

(8) Additional issues to be considered.--In promulgating the rules for and implementing the Database, the Designated Agency or Agencies shall consider a broad range of issues involved in establishing an effective database, including the following:

(A) Units for reporting.--The appropriate units for reporting each greenhouse gas, and whether to require reporting of emission efficiency rates (including emissions per kilowatt-hour for electricity generators) in addition to mass emissions of greenhouse gases,

(B) International consistency.--The greenhouse gas reduction and sequestration methods and standards applied in other countries, as applicable or relevant; and

(C) Data sufficiency.--The extent to which available fossil fuels, greenhouse gas emissions, and greenhouse gas production and importation data are adequate to implement a comprehensive National Greenhouse Gas Database.

(e) Annual Report.--The Designated Agency or Agencies shall publish an annual report that--

(1) describes the total greenhouse gas emissions and emission reductions reported to the database;

(2) provides entity-by-entity and sector-by-sector analyses of the emissions and emission reductions reported; and

(3) describes the atmospheric concentrations of greenhouse gases and tracks such information over time.

____

SA 3187. Mr. BYRD (for himself and Mr. Jeffords) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 283, between lines 8 and 9, insert the following:

SEC. 9__. INCREASED USE OF RECOVERED MATERIAL IN FEDERALLY

FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT

OR CONCRETE.

(a) Definitions.--In this section:

(1) Administrator.--The term ``Administrator'' means the Administrator of the Environmental Protection Agency.

(2) Agency head.--The term ``agency head'' means--

(A) the Secretary of Transportation; and

(B) the head of each other Federal agency that on a regular basis procures, or provides Federal funds to pay or assist in paying the cost of procuring, material for cement or concrete projects.

(3) Cement or concrete project.--The term ``cement or concrete project'' means a project for the construction or maintenance of a highway or other transportation facility or a Federal, State, or local government building or other public facility that--

(A) involves the procurement of cement or concrete; and

(B) is carried out in whole or in part using Federal funds.

(4) Recovered material.--The term ``recovered material'' means--

(A) ground granulated blast furnace slag;

(B) coal combustion fly ash; and

(C) any other waste material or byproduct recovered or diverted from solid waste that the Administrator, in consultation with an agency head, determines should be treated as recovered material under this section for use in cement or concrete projects paid for, in whole or in part, by the agency head.

(b) Implementation of Requirements.--

(1) In general.--Not later than 1 year after the date of enactment of this Act, the Administrator and each agency head shall take such actions as are necessary to implement fully all procurement requirements and incentives in effect as of the date of enactment of this Act (including guidelines under section 6002 of the Solid Waste Disposal Act (42 U.S.C. 6963)) that provide for the use of cement and concrete incorporating recovered material in cement or concrete projects.

(2) Priority.--In carrying out paragraph (1) an agency head shall give priority to achieving greater use of recovered material in cement or concrete projects for which recovered materials historically have not been used or have been used only minimally.

(1) In general.--The Administrator and the Secretary of Transportation, in cooperation with the Secretary of Energy, shall conduct a study to determine the extent to which current procurement requirements, when fully implemented in accordance with subsection (b), may realize energy savings and greenhouse gas emission reduction benefits attainable with substitution of recovered material in cement used in cement or concrete projects.

(2) Matters to be addressed.--The study shall--

(A) quantify the extent to which recovered materials are being substituted for Portland cement, particularly as a result of current procurement requirements, and the energy savings and greenhouse gas emission reduction benefits associated with that substitution;

(B) identify all barriers in procurement requirements to fuller realization of energy savings and greenhouse gas emission reduction benefits, including barriers resulting from exceptions from current law; and

(C)(i) identify potential mechanisms to achieve greater substitution of recovered material in types of cement or concrete projects for which recovered materials historically have not been used or have been used only minimally;

(ii) evaluate the feasibility of establishing guidelines or standards for optimized substitution rates of recovered material in those cement or concrete projects; and

(iii) identify any potential environmental or economic effects that may result from greater substitution of recovered material in those cement or concrete projects.

(3) Report.--Not later than 30 months after the date of enactment of this Act, the Secretary shall submit to the Committee on Appropriations and Committee on Environment and Public Works of the Senate and the Committee on Appropriations and Committee on Energy and Commerce of the House of Representatives a report on the study.

(d) Additional Procurement Requirements.--The Administrator and each agency head shall take additional actions authorized under the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) to establish procurement requirements and incentives that provide for the use of cement and concrete with increased substitution of recovered material in the construction and maintenance of cement or concrete projects, so as to--

(1) realize more fully the energy savings and greenhouse gas emission reduction benefits associated with increased substitution; and

(2) eliminate barriers identified under subsection (c).

(e) Effect of Section.--Nothing in this section affects the requirements of section 6002 of the Solid Waste Disposal Act

(42 U.S.C. 6962) (including the guidelines and specifications for implementing those requirements).

____

SA 3188. Mr. GRAHAM (for himself and Mr. Nelson of Florida) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 130, between lines 7 and 8, insert the following:

SEC. 6__. REACQUISITION OF CERTAIN NONPRODUCING LEASES ON THE

OUTER CONTINENTAL SHELF OFF THE COAST OF

FLORIDA.

(a) Definitions.--In this section:

(1) Qualified lease.--The term ``qualified lease'' means any of the following leases in the Outer Continental Shelf Eastern Gulf of Mexico Planning Area: G06401, G06402, G08333, G08334, G06408, G06409, G08346, G10426, G10427, G06432, G06433, G06436, G06440, G06442, G06443, G06444, G10446, G10447, G10448, G10449, G10450, G10451, G10452, G10453, G10454, G10455, G10456, G10459, G10460, G06464, G06469, G10461, G06470, G10462, G10463, G06474, G06475, G10464, G06476, G06477, G10465, G10466, G10471, G10472, G10473, G10477, G10498, G10499, G10500, G10501, G10502, G10503, G10504, G10505, G10506, G10507, G10508, G10509, G10510, G10511, G10512, G10513, G10514, G10404, G10405, G08308, G08309, G08310, G10408, G10409, G10410, G10413, G10414, G10415, G10417, G08317, G08318, G08319, G10493, G10494, G10495, G10496, G10497, G10430, G10431, G10432, G10433, G10434, G10435, G10484, G10485, G08361, G08362, G08363, G08364, G08365, G08366, G08367, and G08368.

(2) Qualified lessee.--The term ``qualified lessee'' means a person that, on the date of enactment of this section, holds an interest in a qualified lease that is recorded with the Minerals Management Service.

(3) Secretary.--The term ``Secretary'' means the Secretary of the Interior.

(b) Lease Cancellation.--

(1) In general.--The Secretary shall carry out a program under which the Secretary shall--

(A) issue credits to qualified lessees that elect to participate in the program in exchange for the cancellation of a qualified lease; and

(B) accept credits issued under this section--

(i) to pay royalties on oil or gas production conducted in any area outside the Eastern Gulf of Mexico; and

(ii) to pay rental fees on leases in existence on the date of enactment of this Act that are located outside the Eastern Gulf of Mexico.

(2) Submission of financial information.--

(A) In general.--During the period beginning on the January 1, 2003 and ending on March 30, 2008, a qualified lessee that seeks to receive credits in consideration for the cancellation of a qualified lease may do so by submitting to the Secretary the financial information and documentation relating to the amounts referred to in clauses (i) and (ii) of paragraph (4)(A), certified by a certified public accountant.

(B) Notification of final opportunity.--Between January 1, 2008 and January 31, 2008, the Secretary shall notify each qualified lessee that has not submitted the information and documentation required under subparagraph (A) in writing--

(i) of the opportunity to receive credits in consideration for the cancellation of a qualified lease;

(ii) of the financial information and documentation required under subparagraph (A); and

(iii) that the deadline for the submission of the financial information and documentation is March 30, 2008.

(3) Review.--

(A) Initial review.--Not later than 60 days after the date on which the Secretary receives the financial information and documentation under paragraph (2)(A), the Secretary shall--

(i) complete an initial review of the information and documentation submitted; and

(ii) request any additional information that may be necessary to determine the value of credits to be offered under paragraph (4).

(B) Final review.--Not later than 90 days after the date on which the Secretary completes the initial review under subparagraph (B), the Secretary--

(i) shall complete a final review of the information and documentation provided by the qualified lessee under paragraph (2)(A) and any additional information submitted under subparagraph (A)(ii); and

(ii) in accordance with paragraph (4), determine the amount of credits to be offered to the qualified lessee.

(4) Amount of credits.--

(A) In general.--For each qualified lessee that complies with the requirements of paragraphs (2) and (3), the Secretary shall offer credits in an amount equal to--

(i) the amount of consideration paid by the qualified lessee to acquire the interest in the qualified lease; and

(ii) the amount of direct expenditures made by the qualified lessee in connection with the exploration and development of the qualified lease during the period from the date of acquisition of the qualified lease to the date of enactment of this Act.

(B) Exclusions.--In determining the amount of credits under subparagraph (A), the Secretary shall not consider the potential value of oil and gas resources associated with the qualified lease.

(5) Offer.--Not later than 90 days after completing the final review under paragraph (3)(B), the Secretary shall make an offer to the qualified lessee to issue credits in an amount determined under paragraph (4) in exchange for the cancellation of the qualified lease.

(6) Acceptance.--To accept the offer of the Secretary under paragraph (5) with respect to a qualified lease, not later than 60 days after the date on which the offer is made under that paragraph, a qualified lessee shall submit to the Secretary a written agreement that if credits are issued under paragraph (7), the qualified lessee--

(A) consents to the cancellation of any qualified lease;

(B) will dismiss any civil or administrative action brought by the qualified lessee against the United States relating to the qualified lease that is pending as of the date of cancellation of the eligible lease; and

(C) waives the right to bring any further civil or administrative action relating to the qualified lease after that date.

(7) Issuance of credits.--If, not later than 60 days after the date of the offer under paragraph (5), a qualified lessee accepts the offer in accordance with paragraph (6), the Secretary shall--

(A) cancel the qualified lease; and

(B) issue to the qualified lessee credits in the amount determined under paragraph (4).

(8) Acceptance of credits.--

(A) In general.--On or after October 1, 2012, the Secretary shall accept credits issued under paragraph (7) in the same manner as rental fees and royalty payments on oil and gas production conducted in any area outside the Eastern Gulf of Mexico under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).

(B) Exception.--The Secretary shall not accept credits under subparagraph (A) for oil or gas production in an area--

(i) that is within 3 miles of the seaward boundary of a coastal State;

(ii) that is subject to an administrative or legislative leasing moratorium; or

(iii) in which leasing is otherwise prohibited on the date of enactment of this Act.

(C) Adjustment for inflation.--The Secretary shall adjust the amount of credits accepted under subparagraph (A) to reflect changes in the implicit Gross Domestic Product deflator during the period from the date on which the credits were issued under paragraph (7) to October 1, 2012.

(9) Sale or transfer.--

(A) In general.--A qualified lessee may transfer or sell any credits issued under paragraph (7) to any other person qualified to hold leases under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).

(B) Requirements.--A sale or transfer of credits under subparagraph (A) shall be subject to the requirements of this section.

(D) Notification.--

(i) In general.--Not later than 30 days after the date on which a qualified lessee transfers or sells any credits, the qualified lessee shall notify the Secretary of the transfer or sale.

(ii) Validity.--The transfer or sale of a credit shall not be valid until the date on which the Secretary receives the notification required under clause (i).

(10) No additional compensation.--A qualified lessee that participates in the cancellation of a qualified lease under this Act--

(A) shall be considered to be fully compensated for the value of the qualified lease; and

(B) shall not be eligible to seek additional compensation from the Federal Government for the qualified lease.

(11) Effect.--Nothing in this section constitutes a finding by Congress that--

(A) actions by the Federal Government involving the qualified leases before the date of enactment of this Act constituted a breach of contract or a taking of property under the Constitution of the United States; or

(B) the qualified leases have any particular value.

____

SA 3189. Mr. TORRICELLI (for himself and Mr. Graham) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--ENVIRONMENTAL CLEANUP FINANCING AND REINSURANCE AND CORPORATE

INVERSION LIMITATIONS

Subtitle A--Environmental Cleanup Financing

SEC. __01. EXTENSION OF SUPERFUND, OIL SPILL LIABILITY, AND

LEAKING UNDERGROUND STORAGE TANK TAXES.

(a) Excise Taxes.--

(1) Superfund taxes.--Section 4611(e) is amended to read as follows:

``(e) Application of Hazardous Substance Superfund Financing Rate.--The Hazardous Substance Superfund financing rate under this section shall apply after December 31, 1986, and before January 1, 1996, and after the date of the enactment of the Energy Policy Act of 2002 and before October 1, 2007.''.

(2) Oil spill liability tax.--Section 4611(f) is amended to read as follows:

``(f) Application of Oil Spill Liability Trust Fund Financing Rate.--The Oil Spill Liability Trust Fund financing rate under subsection (c) shall apply after December 31, 1989, and before January 1, 1995, and after the date of the enactment of the Energy Policy Act of 2002 and before October 1, 2007.''.

(3) Leaking underground storage tank rate.--Section 4081(d)(3) is amended by striking ``April 1, 2005'' and inserting ``October 1, 2007.''.

(b) Corporate Environmental Income Tax.--Section 59A is amended--

(1) by striking ``0.12 percent'' in subsection (a) and inserting ``0.06 percent'', and

(2) by striking subsection (e) and inserting the following:

``(e) Application of Tax.--The tax imposed by this section shall apply to taxable years beginning after December 31, 1986, and before January 1, 1996, and to taxable years beginning after the date of the enactment of the Energy Policy Act of 2002 and before January 1, 2007.''.

(1) Section 4611(b) is amended--

(A) by striking ``or exported from'' in paragraph (1)(A),

(B) by striking ``or exportation'' in paragraph (1)(B), and

(2) Section 4611(d)(3) is amended--

(A) by striking ``or exporting the crude oil, as the case may be'' in the text and inserting ``the crude oil'', and

(B) by striking ``or exports'' in the heading.

(d) Effective Dates.--

(1) Excise taxes.--The amendments made by subsections (a) and (c) shall take effect on the date of the enactment of this Act.

(2) Income tax.--The amendment made by subsection (b) shall apply to taxable years beginning after the date of the enactment of this Act.

Subtitle B--Reinsurance Inversion Limitations

SEC. __11. PREVENTION OF EVASION OF UNITED STATES INCOME TAX

ON NONLIFE INSURANCE COMPANIES THROUGH USE OF

REINSURANCE WITH FOREIGN PERSONS.

(a) In General.--Subparagraph (A) of section 832(b)(4)

(relating to insurance company taxable income) is amended to read as follows:

``(A) From the amount of gross premiums written on insurance contracts during the taxable year, deduct return premiums and premiums paid for reinsurance (except as provided in paragraph (9)).''

(b) Treatment of Reinsurance With Related Reinsurers.--Subsection (b) of section 832 is amended by adding at the end the following new paragraph:

``(9) Denial of deduction under paragraph (4) for reinsurance of u.s. risks with certain related persons.--

``(A) In general.--No deduction shall be allowed under paragraph (4) for premiums paid for the direct or indirect reinsurance of United States risks with a related reinsurer.

``(B) Exceptions.--This paragraph shall not apply to any premium to the extent that--

``(i) the income attributable to the reinsurance to which such premium relates is includible in the gross income of--

``(I) such reinsurer, or

``(II) 1 or more domestic corporations or citizens or residents of the United States, or

``(ii) the related insurer establishes to the satisfaction of the Secretary that the taxable income (determined in accordance with this section 832) attributable to such reinsurance is subject to an effective rate of income tax imposed by a foreign country at a rate greater than 20 percent of the maximum rate of tax specified in section 11.

``(C) Election by reinsurer to be taxed on income.--Income of a related reinsurer attributable to the reinsurance of United States risks which is not otherwise includible in gross income shall be treated as gross income which is effectively connected with the conduct of a trade or business in the United States if such reinsurer--

``(i) elects to so treat such income, and

``(ii) meets such requirements as the Secretary shall prescribe to ensure that the taxes imposed by this chapter on such income are paid.

``(D) Definitions.--For purposes of this paragraph--

``(i) United states risk.--The term `United States risk' means any risk related to property in the United States, or liability arising out of activity in, or in connection with the lives or health of residents of, the United States.

``(ii) Related insurer.--The term `related insurer' means any reinsurer owned or controlled directly or indirectly by the same interests (within the meaning of section 482) as the person making the premium payment.''

(c) Technical Amendment.--Subparagraph (A) of section 832(b)(5) is amended by inserting after clause (iii) the following new clause:

``(iv) To the results so obtained, add reinsurance recovered from a related reinsurer to the extent a deduction for the premium paid for the reinsurance was disallowed under paragraph (9).''

(d) Effective Date.--The amendments made by this section shall apply to premiums paid after the date that the Committee on Ways and Means of the House of Representatives or the Committee on Finance of the Senate votes to report this bill.

Subtitle C--Corporate Inversion Limitations

SEC. __21. PREVENTION OF CORPORATE EXPATRIATION TO AVOID

UNITED STATES INCOME TAX.

(a) In General.--Paragraph (4) of section 7701(a) (defining domestic) is amended to read as follows:

``(4) Domestic.--

``(A) In general.--Except as provided in subparagraph (B), the term `domestic' when applied to a corporation or partnership means created or organized in the United States or under the law of the United States or of any State unless, in the case of a partnership, the Secretary provides otherwise by regulations.

``(B) Certain corporations treated as domestic.--

``(i) In general.--The acquiring corporation in a corporate expatriation transaction shall be treated as a domestic corporation.

``(ii) Corporate expatriation transaction.--For purposes of this subparagraph, the term `corporate expatriation transaction' means any transaction if--

``(I) a nominally foreign corporation (referred to in this subparagraph as the `acquiring corporation') acquires, as a result of such transaction, directly or indirectly substantially all of the properties held directly or indirectly by a domestic corporation, and

``(II) immediately after the transaction, more than 80 percent of the stock (by vote or value) of the acquiring corporation is held by former shareholders of the domestic corporation by reason of holding stock in the domestic corporation.

``(iii) Lower stock ownership requirement in certain cases.--Subclause (II) of clause (ii) shall be applied by substituting `50 percent' for `80 percent' with respect to any nominally foreign corporation if--

``(I) such corporation does not have substantial business activities (when compared to the total business activities of the expanded affiliated group) in the foreign country in which or under the law of which the corporation is created or organized, and

``(II) the stock of the corporation is publicly traded and the principal market for the public trading of such stock is in the United States.

``(iv) Partnership transactions.--The term `corporate expatriation transaction' includes any transaction if--

``(I) a nominally foreign corporation (referred to in this subparagraph as the `acquiring corporation') acquires, as a result of such transaction, directly or indirectly properties constituting a trade or business of a domestic partnership,

``(II) immediately after the transaction, more than 80 percent of the stock (by vote or value) of the acquiring corporation is held by former partners of the domestic partnership (determined without regard to stock of the acquiring corporation which is sold in a public offering related to the transaction), and

``(III) the acquiring corporation meets the requirements of subclauses (I) and (II) of clause (iii).

``(v) Special rules.--For purposes of this subparagraph--

``(I) a series of related transactions shall be treated as 1 transaction, and

``(II) stock held by members of the expanded affiliated group which includes the acquiring corporation shall not be taken into account in determining ownership.

``(vi) Other definitions.--For purposes of this subparagraph--

``(I) Nominally foreign corporation.--The term `nominally foreign corporation' means any corporation which would (but for this subparagraph) be treated as a foreign corporation.

``(II) Expanded affiliated group.--The term `expanded affiliated group' means an affiliated group (as defined in section 1504(a) without regard to section 1504(b)).''

(b) Effective Dates.--

(1) In general.--The amendment made by this section shall apply to corporate expatriation transactions completed after September 11, 2001.

(2) Special rule.--The amendment made by this section shall also apply to corporate expatriation transactions completed on or before September 11, 2001, but only with respect to taxable years of the acquiring corporation beginning after December 31, 2003.

____

SA 3190. Mr. TORRICELLI (for himself and Mr. Graham) submitted an amendment intended to be proposed to amendmnt SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--ENVIRONMENTAL CLEANUP FINANCING AND REINSURANCE AND CORPORATE

INVERSION LIMITATIONS

Subtitle A--Environmental Cleanup Financing

SEC. __01. EXTENSION OF SUPERFUND, OIL SPILL LIABILITY, AND

LEAKING UNDERGROUND STORAGE TANK EXCISE TAXES.

(a) Superfund Taxes.--Section 4611(e) is amended to read as follows:

(b) Oil Spill Liability Tax.--Section 4611(f) is amended to read as follows:

(c) Leaking Underground Storage Tank Rate.--Section 4081(d)(3) is amended by striking ``April 1, 2005'' and inserting ``October 1, 2007.''.

(d) Technical Amendments.--

(1) Section 4611(b) is amended--

(A) by striking ``or exported from'' in paragraph (1)(A),

(B) by striking ``or exportation'' in paragraph (1)(B), and

(2) Section 4611(d)(3) is amended--

(A) by striking ``or exporting the crude oil, as the case may be'' in the text and inserting ``the crude oil'', and

(B) by striking ``or exports'' in the heading.

(e) Effective Date.--The amendments made by this section shall take effect on the date of the enactment of this Act.

Subtitle B--Reinsurance Inversion Limitations

SEC. __11. PREVENTION OF EVASION OF UNITED STATES INCOME TAX

ON NONLIFE INSURANCE COMPANIES THROUGH USE OF

REINSURANCE WITH FOREIGN PERSONS.

(a) In General.--Subparagraph (A) of section 832(b)(4)

(relating to insurance company taxable income) is amended to read as follows:

``(A) From the amount of gross premiums written on insurance contracts during the taxable year, deduct return premiums and premiums paid for reinsurance (except as provided in paragraph (9)).''

(b) Treatment of Reinsurance With Related Reinsurers.--Subsection (b) of section 832 is amended by adding at the end the following new paragraph:

``(9) Denial of deduction under paragraph (4) for reinsurance of u.s. risks with certain related persons.--

``(A) In general.--No deduction shall be allowed under paragraph (4) for premiums paid for the direct or indirect reinsurance of United States risks with a related reinsurer.

``(B) Exceptions.--This paragraph shall not apply to any premium to the extent that--

``(i) the income attributable to the reinsurance to which such premium relates is includible in the gross income of--

``(I) such reinsurer, or

``(II) 1 or more domestic corporations or citizens or residents of the United States, or

``(i) elects to so treat such income, and

``(ii) meets such requirements as the Secretary shall prescribe to ensure that the taxes imposed by this chapter on such income are paid.

``(D) Definitions.--For purposes of this paragraph--

(c) Technical Amendment.--Subparagraph (A) of section 832(b)(5) is amended by inserting after clause (iii) the following new clause:

``(iv) To the results so obtained, add reinsurance recovered from a related reinsurer to the extent a deduction for the premium paid for the reinsurance was disallowed under paragraph (9).''

Subtitle C--Corporate Inversion Limitations

SEC. __21. PREVENTION OF CORPORATE EXPATRIATION TO AVOID

UNITED STATES INCOME TAX.

(a) In General.--Paragraph (4) of section 7701(a) (defining domestic) is amended to read as follows:

``(4) Domestic.--

``(B) Certain corporations treated as domestic.--

``(i) In general.--The acquiring corporation in a corporate expatriation transaction shall be treated as a domestic corporation.

``(ii) Corporate expatriation transaction.--For purposes of this subparagraph, the term `corporate expatriation transaction' means any transaction if--

``(II) the stock of the corporation is publicly traded and the principal market for the public trading of such stock is in the United States.

``(iv) Partnership transactions.--The term `corporate expatriation transaction' includes any transaction if--

``(III) the acquiring corporation meets the requirements of subclauses (I) and (II) of clause (iii).

``(v) Special rules.--For purposes of this subparagraph--

``(I) a series of related transactions shall be treated as 1 transaction, and

``(II) stock held by members of the expanded affiliated group which includes the acquiring corporation shall not be taken into account in determining ownership.

``(vi) Other definitions.--For purposes of this subparagraph--

``(I) Nominally foreign corporation.--The term `nominally foreign corporation' means any corporation which would (but for this subparagraph) be treated as a foreign corporation.

``(II) Expanded affiliated group.--The term `expanded affiliated group' means an affiliated group (as defined in section 1504(a) without regard to section 1504(b)).''

(b) Effective Dates.--

(1) In general.--The amendment made by this section shall apply to corporate expatriation transactions completed after September 11, 2001.

____

SA 3191. Mr. GRAHAM submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. . CUSTOMS USER FEES.

Section 13031(j)(3) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended by striking ``2003'' and inserting ``2012''.

____

SA 3192. Mr. GRAHAM submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--CURB TAX ABUSES

Subtitle A--Tax Shelters

SEC. __01. SHORT TITLE.

This subtitle may be cited as the ``Abusive Tax Shelter Shutdown Act of 2002''.

SEC. __02. FINDINGS AND PURPOSE.

(a) Findings.--The Congress hereby finds that:

(1) Many corporate tax shelter transactions are complicated ways of accomplishing nothing aside from claimed tax benefits, and the legal opinions justifying those transactions take an inappropriately narrow and restrictive view of well-developed court doctrines under which--

(A) the taxation of a transaction is determined in accordance with its substance and not merely its form,

(B) transactions which have no significant effect on the taxpayer's economic or beneficial interests except for tax benefits are treated as sham transactions and disregarded,

(C) transactions involving multiple steps are collapsed when those steps have no substantial economic meaning and are merely designed to create tax benefits,

(D) transactions with no business purpose are not given effect, and

(E) in the absence of a specific congressional authorization, it is presumed that Congress did not intend a transaction to result in a negative tax where the taxpayer's economic position or rate of return is better after tax than before tax.

(2) Permitting aggressive and abusive tax shelters not only results in large revenue losses but also undermines voluntary compliance with the Internal Revenue Code of 1986.

(b) Purpose.--The purpose of this subtitle is to eliminate abusive tax shelters by denying tax attributes claimed to arise from transactions that do not meet a heightened economic substance requirement and by repealing the provision that permits legal opinions to be used to avoid penalties on tax underpayments resulting from transactions without significant economic substance or business purpose.

PART I--CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE

SEC. __11. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

(a) In General.--Section 7701 is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection:

``(m) Clarification of Economic Substance Doctrine; Etc.--

``(1) General rules.--

``(A) In general.--In applying the economic substance doctrine, the determination of whether a transaction has economic substance shall be made as provided in this paragraph.

``(B) Definition of economic substance.--For purposes of subparagraph (A)--

``(i) In general.--A transaction has economic substance only if--

``(I) the transaction changes in a meaningful way (apart from Federal income tax effects) the taxpayer's economic position, and

``(II) the taxpayer has a substantial nontax purpose for entering into such transaction and the transaction is a reasonable means of accomplishing such purpose.

``(ii) Special rule where taxpayer relies on profit potential.--A transaction shall not be treated as having economic substance by reason of having a potential for profit unless--

``(I) the present value of the reasonably expected pre-tax profit from the transaction is substantial in relation to the present value of the expected net tax benefits that would be allowed if the transaction were respected, and

``(II) the reasonably expected pre-tax profit from the transaction exceeds a risk-free rate of return.

``(C) Treatment of fees and foreign taxes.--Fees and other transaction expenses and foreign taxes shall be taken into account as expenses in determining pre-tax profit under subparagraph (B)(ii).

``(2) Special rules for transactions with tax-indifferent parties.--

``(A) Special rules for financing transactions.--The form of a transaction which is in substance the borrowing of money or the acquisition of financial capital directly or indirectly from a tax-indifferent party shall not be respected if the present value of the deductions to be claimed with respect to the transaction are substantially in excess of the present value of the anticipated economic returns of the person lending the money or providing the financial capital. A public offering shall be treated as a borrowing, or an acquisition of financial capital, from a tax-indifferent party if it is reasonably expected that at least 50 percent of the offering will be placed with tax-indifferent parties.

``(B) Artificial income shifting and basis adjustments.--The form of a transaction with a tax-indifferent party shall not be respected if--

``(i) it results in an allocation of income or gain to the tax-indifferent party in excess of such party's economic income or gain, or

``(ii) it results in a basis adjustment or shifting of basis on account of overstating the income or gain of the tax-indifferent party.

``(3) Definitions and special rules.--For purposes of this subsection--

``(A) Economic substance doctrine.--The term `economic substance doctrine' means the common law doctrine under which tax benefits under subtitle A with respect to a transaction are not allowable if the transaction does not have economic substance or lacks a business purpose.

``(B) Tax-indifferent party.--The term `tax-indifferent party' means any person or entity not subject to tax imposed by subtitle A. A person shall be treated as a tax-indifferent party with respect to a transaction if the items taken into account with respect to the transaction have no substantial impact on such person's liability under subtitle A.

``(C) Exception for personal transactions of individuals.--In the case of an individual, this subsection shall apply only to transactions entered into in connection with a trade or business or an activity engaged in for the production of income.

``(D) Treatment of lessors.--In applying subclause (I) of paragraph (1)(B)(ii) to the lessor of tangible property subject to a lease, the expected net tax benefits shall not include the benefits of depreciation, or any tax credit, with respect to the leased property and subclause (II) of paragraph (1)(B)(ii) shall be disregarded in determining whether any of such benefits are allowable.

``(4) Other common law doctrines not affected.--Except as specifically provided in this subsection, the provisions of this subsection shall not be construed as altering or supplanting any other rule of law referred to in section 6662(i)(2), and the requirements of this subsection shall be construed as being in addition to any such other rule of law.''

(b) Effective Date.--The amendments made by this section shall apply to transactions after the date of the enactment of this Act.

PART II--PENALTIES

SEC. __21. INCREASE IN PENALTY ON UNDERPAYMENTS RESULTING

FROM FAILURE TO SATISFY CERTAIN COMMON LAW

RULES.

(a) In General.--Section 6662 (relating to imposition of accuracy-related penalty) is amended by adding at the end the following new subsection:

``(i) Increase in Penalty in Case of Failure To Satisfy Certain Common Law Rules.--

``(1) In general.--To the extent that an underpayment is attributable to a disallowance described in paragraph (2)--

``(A) subsection (a) shall be applied with respect to such portion by substituting `40 percent' for `20 percent', and

``(B) subsection (d)(2)(B) and section 6664(c) shall not apply.

``(2) Disallowances described.--A disallowance is described in this subsection if such disallowance is on account of--

``(A) a lack of economic substance (within the meaning of section 7701(m)(1)) for the transaction giving rise to the claimed benefit or the transaction was not respected under section 7701(m)(2),

``(B) a lack of business purpose for such transaction or because the form of the transaction does not reflect its substance, or

``(C) a failure to meet the requirements of any other similar rule of law.

``(3) Increase in penalty not to apply if compliance with disclosure requirements.--Paragraph (1)(A) shall not apply if the taxpayer discloses to the Secretary (as such time and in such manner as the Secretary shall prescribe) such information as the Secretary shall prescribe with respect to such transaction.''.

(b) Modifications to Penalty on Substantial Understatement of Income Tax.--

(1) Modification of threshold.--Subparagraph (A) of section 6662(d)(1) is amended to read as follows:

``(A) In general.--For purposes of this section, there is a substantial understatement of income tax for any taxable year if the amount of the understatement for the taxable year exceeds the lesser of--

``(i) $500,000, or

``(ii) the greater of 10 percent of the tax required to be shown on the return for the taxable year or $5,000.''

(2) Modification of penalty on tax shelters, etc.--Clauses

(i) and (ii) of section 6662(d)(2)(C) are amended to read as follows:

``(i) In general.--Subparagraph (B) shall not apply to any item attributable to a tax shelter.''

``(ii) Determination of understatements with respect to tax shelters, etc.--In any case in which there are one or more items attributable to a tax shelter, the amount of the understatement under subparagraph (A) shall in no event be less than the amount of understatement which would be determined for the taxable year if all items shown on the return which are not attributable to any tax shelter were treated as being correct. A similar rule shall apply in cases to which subsection (i) applies, whether or not the items are attributable to a tax shelter.''

(c) Treatment of Amended Returns.--Subsection (a) of section 6664 is amended by adding at the end the following new sentence: ``For purposes of this subsection, an amended return shall be disregarded if such return is filed on or after the date the taxpayer is first contacted by the Secretary regarding the examination of the return.''

SEC. __22. PENALTY ON PROMOTERS OF TAX AVOIDANCE STRATEGIES

WHICH HAVE NO ECONOMIC SUBSTANCE, ETC.

(a) Penalty.--

(1) In general.--Section 6700 (relating to promoting abusive tax shelters, etc.) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:

``(c) Penalty on Substantial Promoters for Promoting Tax Avoidance Strategies Which Have No Economic Substance, Etc.--

``(1) Imposition of penalty.--Any substantial promoter of a tax avoidance strategy shall pay a penalty in the amount determined under paragraph (2) with respect to such strategy if such strategy (or any similar strategy promoted by such promoter) fails to meet the requirements of any rule of law referred to in section 6662(i)(2).

``(2) Amount of penalty.--The penalty under paragraph (1) with respect to a promoter of a tax avoidance strategy is an amount equal to 100 percent of the gross income derived (or to be derived) by such promoter from such strategy.

``(3) Tax avoidance strategy.--For purposes of this subsection, the term `tax avoidance strategy' means any entity, plan, arrangement, or transaction a significant purpose of the structure of which is the avoidance or evasion of Federal income tax.

``(4) Substantial promoter.--For purposes of this subsection--

``(A) In general.--The term `substantial promoter' means, with respect to any tax avoidance strategy, any promoter if--

``(i) such promoter offers such strategy to more than 1 potential participant, and

``(ii) such promoter may receive fees in excess of $500,000 in the aggregate with respect to such strategy.

``(B) Aggregation rules.--For purposes of this paragraph--

``(i) Related persons.--A promoter and all persons related to such promoter shall be treated as 1 person who is a promoter.

``(ii) Similar strategies.--All similar tax avoidance strategies of a promoter shall be treated as 1 tax avoidance strategy.

``(C) Promoter.--The term `promoter' means any person who participates in the promotion, offering, or sale of the tax avoidance strategy.

``(D) Related person.--Persons are related if they bear a relationship to each other which is described in section 267(b) or 707(b).

``(4) Coordination with subsection (a).--No penalty shall be imposed by this subsection on any promoter with respect to a tax avoidance strategy if a penalty is imposed under subsection (a) on such promoter with respect to such strategy.''

(2) Conforming amendment.--Subsection (d) of section 6700 is amended--

(A) by striking ``Penalty'' and inserting ``Penalties'', and

(B) by striking ``penalty'' the first place it appears in the text and inserting ``penalties''.

(b) Increase in Penalty on Promoting Abusive Tax Shelters.--The first sentence of section 6700(a) is amended by striking ``a penalty equal to'' and all that follows and inserting ``a penalty equal to the greater of $1,000 or 100 percent of the gross income derived (or to be derived) by such person from such activity.''

SEC. __23. MODIFICATIONS OF PENALTIES FOR AIDING AND ABETTING

UNDERSTATEMENT OF TAX LIABILITY INVOLVING TAX

SHELTERS.

(a) Imposition of Penalty.--Section 6701(a) (relating to imposition of penalty) is amended to read as follows:

``(a) Imposition of Penalties.--

``(1) In general.--Any person--

``(A) who aids or assists in, procures, or advises with respect to, the preparation or presentation of any portion of a return, affidavit, claim, or other document,

``(B) who knows (or has reason to believe) that such portion will be used in connection with any material matter arising under the internal revenue laws, and

``(C) who knows that such portion (if so used) would result in an understatement of the liability for tax of another person,shall pay a penalty with respect to each such document in the amount determined under subsection (b).

``(2) Certain tax shelters.--If--

``(A) any person--

``(i) aids or assists in, procures, or advises with respect to the creation, organization, sale, implementation, management, or reporting of a tax shelter (as defined in section 6662(d)(2)(C)(iii)) or of any entity, plan, arrangement, or transaction that fails to meet the requirements of any rule of law referred to in section 6662(i)(2), and

``(ii) opines, advises, represents, or otherwise indicates

(directly or indirectly) that the taxpayer's tax treatment of items attributable to such tax shelter or such entity, plan, arrangement, or transaction and giving rise to an understatement of tax liability would more likely than not prevail or not give rise to a penalty,

``(B) such opinion, advice, representation, or indication is unreasonable,

then such person shall pay a penalty in the amount determined under subsection (b). If a standard higher than the more likely than not standard was used in any such opinion, advice, representation, or indication, then subparagraph

(A)(ii) shall be applied as if such standard were substituted for the more likely than not standard.''

(b) Amount of Penalty.--Section 6701(b) (relating to amount of penalty) is amended--

(1) by inserting ``or (3)'' after ``paragraph (2)'' in paragraph (1),

(2) by striking ``subsection (a)'' each place it appears and inserting ``subsection (a)(1)'', and

(3) by redesignating paragraph (3) as paragraph (4) and by adding after paragraph (2) the following:

``(3) Tax shelters.--In the case of--

``(A) a penalty imposed by subsection (a)(1) which involves a return, affidavit, claim, or other document relating to a tax shelter or an entity, plan, arrangement, or transaction that fails to meet the requirements of any rule of law referred to in section 6662(i)(2), and

``(B) any penalty imposed by subsection (a)(2),

the amount of the penalty shall be equal to 100 percent of the gross proceeds derived (or to be derived) by the person in connection with the tax shelter or entity, plan, arrangement, or transaction.''

(as added by subsection (a)) on any person, the Secretary of the Treasury shall--

(1) notify the Director of Practice of the Internal Revenue Service and any appropriate State licensing authority of the penalty and the circumstances under which it was imposed, and

(2) publish the identity of the person and the fact the penalty was imposed on the person.

(d) Conforming Amendments.--

(1) Section 6701(d) is amended by striking ``Subsection

(a)'' and inserting ``Subsection (a)(1)''.

(2) Section 6701(e) is amended by striking ``subsection

(a)(1)'' and inserting ``subsection (a)(1)(A)''.

(3) Section 6701(f) is amended by inserting ``, tax shelter, or entity, plan, arrangement, or transaction'' after

``document'' each place it appears.

SEC. __24. FAILURE TO MAINTAIN LISTS.

Section 6708(a) (relating to failure to maintain lists of investors in potentially abusive tax shelters) is amended by adding at the end the following: ``In the case of a tax shelter (as defined in section 6662(d)(2)(C)(iii)) or entity, plan, arrangement, or transaction that fails to meet the requirements of any rule of law referred to in section 6662(i)(2), the penalty shall be equal to 50 percent of the gross proceeds derived (or to be derived) from each person with respect to which there was a failure and the limitation of the preceding sentence shall not apply.''

SEC. __25. PENALTY FOR FAILING TO DISCLOSE REPORTABLE

TRANSACTION.

(a) In General.--Part I of subchapter B of chapter 68

(relating to assessable penalties) is amended by inserting after section 6707 the following new section:

``SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE TAX SHELTER

INFORMATION WITH RETURN.

``(a) Imposition of Penalty.--Any person who fails to include with its return of Federal income tax any information required to be included under section 6011 with respect to a reportable transaction shall pay a penalty in the amount determined under subsection (b). No penalty shall be imposed on any such failure if it is shown that such failure is due to reasonable cause.

``(b) Amount of Penalty.--

``(1) In general.--The amount of the penalty under subsection (a) shall be equal to the greater of--

``(A) 5 percent of any increase in Federal tax which results from a difference between the taxpayer's treatment

(as shown on its return) of items attributable to the reportable transaction to which the failure relates and the proper tax treatment of such items, or

``(B) $100,000.

For purposes of subparagraph (A), the last sentence of section 6664(a) shall apply.

``(2) Listed transaction.--If the failure under subsection

(a) relates to a reportable transaction which is the same as, or substantially similar to, a transaction specifically identified by the Secretary as a tax avoidance transaction for purposes of section 6011, paragraph (1)(A) shall be applied by substituting `10 percent' for `5 percent'.

``(c) Reportable Transaction.--For purposes of this section, the term `reportable transaction' means any transaction with respect to which information is required under section 6011 to be included with a taxpayer's return of tax because, as determined under regulations prescribed under section 6011, such transaction has characteristics which may be indicative of a tax avoidance transaction.

``(d) Coordination With Other Penalties.--The penalty imposed by this section is in addition to any penalty imposed under section 6662.''

(b) Conforming Amendment.--The table of sections for part I of subchapter B of chapter 68 is amended by inserting after the item relating to section 6707 the following:

``Sec. 6707A. Penalty for failure to include tax shelter information on return.''

SEC. __26. REGISTRATION OF CERTAIN TAX SHELTERS WITHOUT

CORPORATE PARTICIPANTS.

Section 6111(d)(1)(A) (relating to certain confidential arrangements treated as tax shelters) is amended by striking

``for a direct or indirect participant which is a corporation''.

SEC. __27. EFFECTIVE DATES.

(a) In General.--Except as provided in subsections (b) and

(c), the amendments made by this part shall apply to transactions after the date of the enactment of this Act.

(b) Section __21.--The amendments made by subsections (b) and (c) of section __21 shall apply to taxable years ending after the date of the enactment of this Act.

(c) Section __22.--The amendments made by subsection (a) of section __22 shall apply to any tax avoidance strategy (as defined in section 6700(c) of the Internal Revenue Code of 1986, as amended by this part) interests in which are offered to potential participants after the date of the enactment of this Act.

(d) Section __26.--The amendment made by section __26 shall apply to any tax shelter interest which is offered to potential participants after the date of the enactment of this Act.

PART III--LIMITATIONS ON IMPORTATION OR TRANSFER OF BUILT-IN LOSSES

SEC. __31. LIMITATION ON IMPORTATION OF BUILT-IN LOSSES.

(a) In General.--Section 362 (relating to basis to corporations) is amended by adding at the end the following new subsection:

``(e) Limitation on Importation of Built-in Losses.--

``(1) In general.--If in any transaction described in subsection (a) or (b) there would (but for this subsection) be an importation of a net built-in loss, the basis of each property described in paragraph (2) which is acquired in such transaction shall (notwithstanding subsections (a) and (b)) be its fair market value immediately after such transaction.

``(2) Property described.--For purposes of paragraph (1), property is described in this paragraph if--

``(A) gain or loss with respect to such property is not subject to tax under this subtitle in the hands of the transferor immediately before the transfer, and

``(B) gain or loss with respect to such property is subject to such tax in the hands of the transferee immediately after such transfer.

In any case in which the transferor is a partnership, the preceding sentence shall be applied by treating each partner in such partnership as holding such partner's proportionate share of the property of such partnership.

``(3) Importation of net built-in loss.--For purposes of paragraph (1), there is an importation of a net built-in loss in a transaction if the transferee's aggregate adjusted bases of property described in paragraph (2) which is transferred in such transaction would (but for this subsection) exceed the fair market value of such property immediately after such transaction.''

(b) Comparable Treatment Where Liquidation.--Paragraph (1) of section 334(b) (relating to liquidation of subsidiary) is amended to read as follows:

``(1) In general.--If property is received by a corporate distributee in a distribution in a complete liquidation to which section 332 applies (or in a transfer described in section 337(b)(1)), the basis of such property in the hands of such distributee shall be the same as it would be in the hands of the transferor; except that the basis of such property in the hands of such distributee shall be the fair market value of the property at the time of the distribution--

``(A) in any case in which gain or loss is recognized by the liquidating corporation with respect to such property, or

``(B) in any case in which the liquidating corporation is a foreign corporation, the corporate distributee is a domestic corporation, and the corporate distributee's aggregate adjusted bases of property described in section 362(e)(2) which is distributed in such liquidation would (but for this subparagraph) exceed the fair market value of such property immediately after such liquidation.''

(c) Effective Date.--The amendments made by this section shall apply to transactions after the date of the enactment of this Act.

SEC. __32. DISALLOWANCE OF PARTNERSHIP LOSS TRANSFERS.

(a) Treatment of Contributed Property With Built-In Loss.--Paragraph (1) of section 704(c) 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:

``(C) if any property so contributed has a built-in loss--

``(i) such built-in loss shall be taken into account only in determining the amount of items allocated to the contributing partner, and

``(ii) except as provided in regulations, in determining the amount of items allocated to other partners, the basis of the contributed property in the hands of the partnership shall be treated as being equal to its fair market value immediately after the contribution.

For purposes of subparagraph (C), the term `built-in loss' means the excess of the adjusted basis of the property over its fair market value immediately after the contribution.''

(b) Adjustment to Basis of Partnership Property on Transfer of Partnership Interest If There Is Substantial Built-In Loss.--

(1) Adjustment required.--Subsection (a) of section 743

(relating to optional adjustment to basis of partnership property) is amended by inserting before the period ``or unless the partnership has a substantial built-in loss immediately after such transfer''.

(2) Adjustment.--Subsection (b) of section 743 is amended by inserting ``or with respect to which there is a substantial built-in loss immediately after such transfer'' after ``section 754 is in effect''.

(3) Substantial built-in loss.--Section 743 is amended by adding at the end the following new subsection:

``(d) Substantial Built-In Loss.--For purposes of this section, a partnership has a substantial built-in loss with respect to a transfer of an interest in a partnership if the transferee partner's proportionate share of the adjusted basis of the partnership property exceeds 110 percent of the basis of such partner's interest in the partnership.''

(4) Clerical amendments.--

(A) The section heading for section 743 is amended to read as follows:

``SEC. 743. ADJUSTMENT TO BASIS OF PARTNERSHIP PROPERTY WHERE

SECTION 754 ELECTION OR SUBSTANTIAL BUILT-IN

LOSS.''

(B) The table of sections for subpart C of part II of subchapter K of chapter 1 is amended by striking the item relating to section 743 and inserting the following new item:

``Sec. 743. Adjustment to basis of partnership property where section

754 election or substantial built-in loss.''

(1) Adjustment required.--Subsection (a) of section 734

(relating to optional adjustment to basis of undistributed partnership property) is amended by inserting before the period ``or unless there is a substantial basis reduction''.

(2) Adjustment.--Subsection (b) of section 734 is amended by inserting ``or unless there is a substantial basis reduction'' after ``section 754 is in effect''.

(3) Substantial basis reduction.--Section 734 is amended by adding at the end the following new subsection:

``(d) Substantial Basis Reduction.--For purposes of this section, there is a substantial basis reduction with respect to a distribution if the sum of the amounts described in subparagraphs (A) and (B) of subsection (b)(2) exceeds 10 percent of the aggregate adjusted basis of partnership property immediately after the distribution.''

(4) Clerical amendments.--

(A) The section heading for section 734 is amended to read as follows:

``SEC. 734. ADJUSTMENT TO BASIS OF UNDISTRIBUTED PARTNERSHIP

PROPERTY WHERE SECTION 754 ELECTION OR

SUBSTANTIAL BASIS REDUCTION.''

(B) The table of sections for subpart B of part II of subchapter K of chapter 1 is amended by striking the item relating to section 734 and inserting the following new item:

``Sec. 734. Adjustment to basis of undistributed partnership property where section 754 election or substantial basis reduction.''

(d) Effective Dates.--

(1) Subsection (a).--The amendment made by subsection (a) shall apply to contributions made after the date of the enactment of this Act.

(2) Subsection (b).--The amendments made by subsection (a) shall apply to transfers after the date of the enactment of this Act.

(3) Subsection (c).--The amendments made by subsection (a) shall apply to distributions after the date of the enactment of this Act.

Subtitle B--Reinsurance

SEC. __41. SHORT TITLE.

This subtitle may be cited as the ``Reinsurance Tax Equity Act of 2002''. SEC. __42. PREVENTION OF EVASION OF UNITED STATES INCOME TAX

ON NONLIFE INSURANCE COMPANIES THROUGH USE OF

REINSURANCE WITH FOREIGN PERSONS.

(a) In General.--Subparagraph (A) of section 832(b)(4)

(relating to insurance company taxable income) is amended to read as follows:

``(A) From the amount of gross premiums written on insurance contracts during the taxable year, deduct return premiums and premiums paid for reinsurance (except as provided in paragraph (9)).''

(b) Treatment of Reinsurance With Related Reinsurers.--Subsection (b) of section 832 is amended by adding at the end the following new paragraph:

``(9) Denial of deduction under paragraph (4) for reinsurance of u.s. risks with certain related persons.--

``(A) In general.--No deduction shall be allowed under paragraph (4) for premiums paid for the direct or indirect reinsurance of United States risks with a related reinsurer.

``(B) Exceptions.--This paragraph shall not apply to any premium to the extent that--

``(i) the income attributable to the reinsurance to which such premium relates is includible in the gross income of--

``(I) such reinsurer, or

``(II) 1 or more domestic corporations or citizens or residents of the United States, or

``(i) elects to so treat such income, and

``(ii) meets such requirements as the Secretary shall prescribe to ensure that the taxes imposed by this chapter on such income are paid.

``(D) Definitions.--For purposes of this paragraph--

(c) Technical Amendment.--Subparagraph (A) of section 832(b)(5) is amended by inserting after clause (iii) the following new clause:

``(iv) To the results so obtained, add reinsurance recovered from a related reinsurer to the extent a deduction for the premium paid for the reinsurance was disallowed under paragraph (9).''

Subtitle C--Corporate Inversions

SEC. __51. SHORT TITLE.

This subtitle may be cited as the ``Corporate Patriot Enforcement Act of 2002''.

SEC. __52. PREVENTION OF CORPORATE EXPATRIATION TO AVOID

UNITED STATES INCOME TAX.

(a) In General.--Paragraph (4) of section 7701(a) (defining domestic) is amended to read as follows:

``(4) Domestic.--

``(B) Certain corporations treated as domestic.--

``(i) In general.--The acquiring corporation in a corporate expatriation transaction shall be treated as a domestic corporation.

``(ii) Corporate expatriation transaction.--For purposes of this subparagraph, the term `corporate expatriation transaction' means any transaction if--

``(II) the stock of the corporation is publicly traded and the principal market for the public trading of such stock is in the United States.

``(iv) Partnership transactions.--The term `corporate expatriation transaction' includes any transaction if--

``(III) the acquiring corporation meets the requirements of subclauses (I) and (II) of clause (iii).

``(v) Special rules.--For purposes of this subparagraph--

``(I) a series of related transactions shall be treated as 1 transaction, and

``(II) stock held by members of the expanded affiliated group which includes the acquiring corporation shall not be taken into account in determining ownership.

``(vi) Other definitions.--For purposes of this subparagraph--

``(I) Nominally foreign corporation.--The term `nominally foreign corporation' means any corporation which would (but for this subparagraph) be treated as a foreign corporation.

``(II) Expanded affiliated group.--The term `expanded affiliated group' means an affiliated group (as defined in section 1504(a) without regard to section 1504(b)).''

(b) Effective Dates.--

(1) In general.--The amendment made by this section shall apply to corporate expatriation transactions completed after September 11, 2001.

____

SA 3193. Ms. LANDRIEU submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 130, between lines 7 and 8, insert the following:

SEC. 608. STATE REFERENDA TO LIFT MORATORIA ON OFFSHORE OIL

AND GAS DRILLING.

(a) In General.--Notwithstanding any moratorium or executive order temporarily suspending or permanently prohibiting offshore oil or gas drilling on submerged land off the coast of a State--

(1) the State may hold a referendum on whether to allow production of oil or gas on the submerged land, including whether to impose any restrictions on the proximity of such drilling to the shore; and

(2) if such production is approved by the referendum, the President shall authorize a lease sale for the submerged land.

(b) Royalties.--

(1) New leases under subsection (a).--Of any royalties collected after the date of enactment of this Act from drilling conducted under subsection (a), 30 percent shall be distributed to the State off the shore of which oil or gas is produced.

(2) New deep water leases.--For fiscal year 2007, and each fiscal year thereafter, of any royalties collected during the fiscal year from leases in water 800 or more meters deep that are issued after the date of enactment of this Act, 30 percent shall be distributed to the States offshore of which the leases lie.

(3) Existing leases.--Notwithstanding section 8(g)(2) of the Outer Continental Shelf Lands Act (43 U.S.C. 1338(g)(2)), on and after the date that is 10 years after the date of enactment of this Act, 30 percent of amounts collected from leases issued before, on, or after the date of enactment of this Act shall be distributed to the States offshore of which the leases lie.

____

SA 3194. Ms. LANDRIEU (for herself and Mr. Domenici) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle B of title V, add the following:

SEC. 5__. NEW NUCLEAR REACTOR TECHNOLOGY PROGRAM.

(a) In General.--Chapter 19 of the Atomic Energy Act of 1954 is amended by inserting after section 276 (42 U.S.C. 2023) the following:

``SEC. 277. NEW NUCLEAR REACTOR TECHNOLOGY PROGRAM.

``(a) In General.--The Commission shall develop and maintain a program to identify and address safety and environmental issues associated with designs for nuclear power plants that would incorporate new reactor technologies, as identified by the Department of Energy and the nuclear power industry.

``(b) Activities.--In carrying out the program under subsection (a), the Commission shall--

``(1) conduct modeling and analyses of, and tests and experiments on, designs for nuclear power plants to determine total system behavior and the response of the nuclear power plants to hypothetical accidents; and

``(2) consider--

``(A) new reactor technologies that may affect--

``(i) risk-informed licensing of new nuclear power plants;

``(ii) the behavior of advanced fuels; and

``(iii) environmental considerations relating to--

``(I) spent fuel management; and

``(II) standards for limiting negative health effects;

``(B) other new technologies (including advanced sensors, digital instrumentation, and digital controls) and human factors that affect the application of new reactor technology to nuclear power plants in existence as of the date of enactment of this section; and

``(C) any other emerging technical issue relating to new reactor technologies, as determined by the Commission.

``(c) Authorization of Appropriations.--There are authorized to be appropriated such sums are necessary to carry out this section.''.

(b) Conforming Amendment.--The table of contents of the Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) is amended by inserting after the item relating to section 276 the following:

``Sec. 277. New nuclear reactor technology program.''.

____

SA 3195. Mr. HARKIN (for himself, Mr. Cochran, Mr. Grassley, and Mrs. Lincoln) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill

(S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 293, strike line 5 and all that follows through page 294 and insert the following:

Section 325(d)(3) of the Energy Policy and Conservation Act

(42 U.S.C. 6295)d)) is amended by adding at the end the following:

``(C) Revision of standards.--Not later than 60 days after the date of enactment of this subparagraph, the Secretary shall amend the standards established under paragraph (1).''.

____

SA 3196. Mr. JOHNSON submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

In the appropriate place in subtitle A of title II, insert the following:

SEC. 2 . SENSE OF THE SENATE RESOLUTION CONCERNING ELECTRIC

POWER TRANSMISSION SYSTEMS.

It is the sense of the Senate that the development of regional energy markets and the magnitude of constraints in electric power transmission systems require that the Federal Government be attentive to electric power transmission issues, particularly issues that can be addressed through policies that facilitate investment in, the enhancement of, and the efficiency of electric power transmission systems.

____

SA 3197. Mr. CARPER (for himself, Ms. Collins, Mr. Levin, Ms. Landrieu, Ms. Stabenow, and Mr. Jeffords) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle

Beginning on page 47, strike line 23 and all that follows through page 48, line 20, and insert the following:

``(m) Termination of Mandatory Purchase and Sale Requirements.--

``(1) Obligation to purchase.-- After the date of enactment of this subsection, no electric utility shall be required to enter into a new contract or obligation to purchase electric energy from a qualifying cogeneration facility or a qualifying small power production facility under this section if the Commission finds that the qualifying cogeneration facility or qualifying small power production facility has access to independently administered, auction-based day ahead and real time wholesale markets for the sale of electric energy.

``(2) Obligation to sell.--After the date of enactment of this subsection, no electric utility shall be required to enter into a new contract or obligation to sell electric energy to a qualifying cogeneration facility or a qualifying small power production facility under this section if competing retail electric suppliers are able to provide electric energy to the qualifying cogeneration facility or qualifying small power production facility.

``(3) No effect on existing rights and remedies.--Nothing in this subsection affects the rights or remedies of any party under any contract or obligation, in effect on the date of enactment of this subsection, to purchase electric energy or capacity from or to sell electric energy or capacity to a facility under this Act (including the right to recover costs of purchasing electric energy or capacity).

____

SA 3198. Mr. CARPER (for himself, Mr. Specter, and Ms. Landrieu) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 177, before line 1, insert the following:

SEC. 811. REQUIREMENT FOR REGULATIONS TO REDUCE OIL

CONSUMPTION.

(a) Oil Savings.--

(1) In general.--The new regulations required by section 801 shall include regulations that apply to passenger and non-passenger automobiles manufactured after model year 2006 and are designed to result in a reduction in the amount of oil (including oil refined into gasoline) used by automobiles of at least 1,000,000 barrels per day by 2015.

(2) Calculation of reduction.--To determine the amount of the reduction in oil used by passenger and non-passenger automobiles, the Secretary of Transportation shall make calculations based on the number of barrels of oil projected by the Energy Information Administration of the Department of Energy in table A7 of the report entitled ``Annual Energy Outlook 2002'' (report no. DOE/EIA-0383(2002)) to be consumed by light-duty vehicles in 2015 without the regulations required by paragraph (1).

(3) Consideration of alternative fuel technologies.--The Secretary of Transportation shall consult with the Secretary of Energy to identify alternative fuel technologies that could be utilized in the transportation sector to reduce dependence on crude-oil-derived fuels. The Secretary of Transportation shall take those technologies into consideration in prescribing the regulations under this section.

(4) Final regulations.--The Secretary of Transportation shall issue the final regulations required by this subsection after carrying out the consultation described in paragraph

(3), but not later than 15 months after the date of the enactment of this Act.

(b) Reports to Congress.--

(1) Requirement.--Beginning in 2007, the Secretary of Transportation shall, after consulting with the Administrator of the Environmental Protection Agency, submit to Congress in January of every odd-numbered year through 2015 a report on the implementation of the requirements of this section.

(2) Content.--The report required by paragraph (1) shall explain and assess the progress in reducing oil consumption by automobiles as required by this section.

____

SA 3199. Mrs. BOXER (for herself and Mrs. Feinstein) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 204, strike line 14 and all that follows through page 205, line 8.

____

SA 3200. Mrs. BOXER (for herself and Mrs. Feinstein) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 191, strike lines 8 through 11 and insert the following:

``(4) Cellulosic biomass ethanol.--For the purpose of paragraph (2)--

``(A) except as provided in subparagraph (B), 1 gallon of cellulosic biomass ethanol shall be considered to be the equivalent of 1.5 gallons of renewable fuel; and

``(B) 1 gallon of cellulosic biomass ethanol shall be considered the equivalent of 2 gallons of renewable fuel if the cellulosic biomass ethanol is derived from agricultural residues.''.

____

SA 3201. Mrs. BOXER submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. . FERC STUDY ON EFFECTS OF JUST AND REASONABLE

ELECTRICITY RATES.

Not later than August 15, 2002, the Federal Energy Regulatory Commission shall submit a report to the Senate Energy and Natural Resources Committee and the House Energy and Commerce Committee detailing how the order of June 18, 2001, ``Addressing Price Mitigation in California and the Western United States'', helped establish just and reasonable electricity prices in the 11 states, including California, that comprise the Western Systems Coordinating Council.

____

SA 3202. Mr. JEFFORDS submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 568, strike line 6 and all that follows through page 570, line 7 and insert the following:

SEC. 1701. REGULATORY REVIEWS.

(a) Regulatory Reviews.--Not later than one year after the date of enactment of this section, each Federal agency shall review relevant regulations and standards to identify--

(1) existing regulations and standards that act as barriers to market entry for emerging energy technologies (including fuel cells, combined heat and power, distributed power generation, small-scale renewable energy, geothermal heat pump technology, and energy recovery in industrial processes), and

(2) actions the agency is taking or could take to, consistent with the purposes of the regulations the agency administers--

(A) remove barriers to market entry for emerging energy technologies,

(B) increase energy efficiency and conservation, or

(b) Report to Congress.--Not later than 18 months after the date of enactment of this section, the Director of the Office of Science and Technology Policy shall report to the Congress on the results of the agency reviews conducted under subsection (a).

(1) all regulatory barriers to--

(A) the development and commercialization of emerging energy technologies and processes, and

(B) the further development and expansion of existing energy conservation technologies and processes, and

(2) actions taken, or proposed to be taken, to remove such barriers.

____

SA 3203. Mr. JEFFORDS (for himself and Mr. Smith of New Hampshire) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 119, between lines 10 and 11, insert the following:

Subtitle B--Nuclear Security

SEC. 511. REPORT ON NUCLEAR SECURITY.

Report to Congress.--Not later than 60 days after the date of enactment of this section, the Nuclear Regulator Commission shall report to the relevant committees of Congress on any changes and on-going review of the design basis threat since September 11, 2001.

____

SA 3204. Mrs. CARNAHAN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 294, after line 18, insert the following:

``(6) Small duct, high velocity air conditioners and heat pumps, a niche product with external static pressures several times those of conventional products, are exempt from paragraphs (1) through (4). No later than January 1, 2004, the Secretary shall, in accordance with subsections (o) and

(p), prescribe a standard for small duct, high velocity equipment.''

____

SA 3205. Mr. TORRICELLI submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 137, between lines 7 and 8, insert the following:

SEC. __. ALLOWANCE OF DEDUCTION FOR QUALIFIED NEW OR

RETROFITTED WATER SUBMETERING DEVICES.

(a) In General.--Part VI of subchapter B of chapter 1

(relating to itemized deductions for individuals and corporations), as amended by this Act, is amended by inserting after section 179D the following new section:

``SEC. 179E. DEDUCTION FOR QUALIFIED NEW OR RETROFITTED WATER

SUBMETERING DEVICES.

``(a) Allowance of Deduction.--In the case of a taxpayer who is an eligible resupplier, there shall be allowed as a deduction an amount equal to the cost of each qualified water submetering device placed in service during the taxable year.

``(b) Maximum Deduction.--The deduction allowed by this section with respect to each qualified water submetering device shall not exceed $30.

``(c) Eligible Resupplier.--For purposes of this section, the term `eligible resupplier' means any taxpayer who purchases and installs qualified water submetering devices in every unit in any multi-unit property.

``(d) Qualified Water Submetering Device.--The term

`qualified water submetering device' means any tangible property to which section 168 applies if such property is a submetering device (including ancillary equipment)--

``(1) which is purchased and installed by the taxpayer to enable consumers to manage their purchase or use of water in response to water price and usage signals, and

``(2) which permits reading of water price and usage signals on at least a daily basis.

``(e) Property Used Outside the United States Not Qualified.--No deduction shall be allowed under subsection

(a) with respect to property which is used predominantly outside the United States or with respect to the portion of the cost of any property taken into account under section 179.

``(f) Basis Reduction.--

``(1) In general.--For purposes of this title, the basis of any property shall be reduced by the amount of the deduction with respect to such property which is allowed by subsection

(a).

``(2) Ordinary income recapture.--For purposes of section 1245, the amount of the deduction allowable under subsection

(a) with respect to any property that is of a character subject to the allowance for depreciation shall be treated as a deduction allowed for depreciation under section 167.''.

(b) Conforming Amendments.--

(1) Section 263(a)(1), as amended by this Act, is amended by striking ``or'' at the end of subparagraph (J), by striking the period at the end of subparagraph (K) and inserting ``, or'', and by inserting after subparagraph (K) the following new subparagraph:

``(L) expenditures for which a deduction is allowed under section 179E.''.

(2) Section 312(k)(3)(B), as amended by this Act, is amended by striking ``or 179D'' each place it appears in the heading and text and inserting ``, 179D, or 179E''.

(3) Section 1016(a), as amended by this Act, is amended by striking ``and'' at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting ``, and'', and by adding at the end the following new paragraph:

``(36) to the extent provided in section 179E(f)(1).''.

(4) Section 1245(a), as amended by this Act, is amended by inserting ``179E,'' after ``179D,'' both places it appears in paragraphs (2)(C) and (3)(C).

(5) The table of contents for subpart B of part IV of subchapter A of chapter 1, as amended by this Act, is amended by inserting after the item relating to section 179D the following new item:

``Sec. 179E. Deduction for qualified new or retrofitted water submetering devices.''.

(c) Effective Date.--The amendments made by this section shall apply to qualified water submetering devices placed in service after the date of the enactment of this Act, in taxable years ending after such date. SEC. __. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR

DEPRECIATION OF QUALIFIED WATER SUBMETERING

DEVICES.

(a) In General.--Subparagraph (A) of section 168(e)(3)

(relating to classification of property) 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) any qualified water submetering device.''.

(b) Definition of Qualified Water Submetering Device.--Section 168(i) (relating to definitions and special rules), as amended by this Act, is amended by inserting at the end the following new paragraph:

``(16) Qualified water submetering device.--The term

`qualified water submetering device' means any qualified water submetering device (as defined in section 179E(d)) which is placed in service by a taxpayer who is an eligible resupplier (as defined in section 179E(c)).''.

(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.

____

SA 3206. Mr. TORRICELLI submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 574, between lines 11 and 12, insert the following:

SEC. 17__. STUDY OF ETHANOL-FROM-SOLID WASTE LOAN GUARANTEE

PROGRAM.

The Secretary of Energy shall--

(1) conduct a study of the feasibility of providing guarantees of loans by private banking and investment institutions for facilities for the processing and conversion of municipal solid waste and sewage sludge into fuel ethanol and other commercial byproducts; and

(2) not later than 90 days after the date of enactment of this Act, submit to Congress a report on the results of the study.

____

SA 3207. Mr. BAUCUS (for himself and Mr. Bingaman) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 126, strike line 2 and all that follows through line 14 and insert the following:

``the States; and

(3) improve the collection, storage, and retrieval of information related to such leasing activities.

(b) Improved Enforcement.--The Secretary shall improve inspection and enforcement of oil and gas activities, including enforcement of terms and conditions in permits to drill.

(c) Report.--No later than 180 days after enactment of this Act, the Secretary shall report to Congress describing the actions she has taken to comply with subsections (a) and (b).

(d) Authorization of Appropriations.--For each of the fiscal years 2003 through 2006, in addition to amounts otherwise authorized to be appropriated for the purpose of carrying out section 17 of the Mineral Leasing Act (30 U.S.C. 226), there are authorized to be appropriated to the Secretary of the Interior.

(1) $40,000,000 for the purpose of carrying out paragraphs

(1) through (3) of subsection (a); and

(2) $20,000,000 for the purpose of carrying out subsection

(b).''

____

SA 3208. Mr. BAUCUS submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, add the following:

SEC. . ENHANCED DOMESTIC PRODUCTION OF OIL AND GAS THROUGH

EXCHANGE OF NONPRODUCING LEASES.

(a) Definition.--For purposes of this section:

(1) the term ``Badger-two Medicine Area'' means federal lands, owned by the United States Forest Service, located in: T 31 N, R 12-13 W; T 30 N, R 11-13 W; T 29 N, R 10-16 W; and, T 28 N, R 10-14 W.

(2) the term ``Blacklead Area'' means federal lands, owned by the United States Forest Service lands and Bureau of Land Management, located in: T 27 N, R 9 W; T 26 N, R 9-10 W, T 25 N, R 8-10 W, T 24 N, R 8-9 W.

(3) the term ``noproducing leases'' means authorized Federal oil and gas leases that are in existence and in good standing as of the date of enactment of this Act and are located in the Badger-Two Medicine Area or the Blackleaf Area.

(4) the term ``Secretary'' means the Secretary of the Interior.

(b) Evaluation.--The Secretary is directed to undertake an evaluation of opportunities to enhance domestic production through the exchange of the nonproducing leases in the Badger-Two Medicine Area and the Blackleaf Area. In undertaking the evaluation, the Secretary shall consult with the Governor of Montana, the lessees holding the nonproducing leases, and interested members of the public. The evaluation shall include--

(1) A discussion of opportunities to enhance domestic production of oil and gas through an exchange of the nonproducing leases for oil and gas lease tracts of comparable value in Montana or in the Central and Western Gulf of Mexico Planning Areas on the Outer Continental Shelf;

(2) A discussion of opportunities to enhance domestic production of oil and gas through the issuance of bidding, royalty, or rental credits for use on federal onshore oil and gas leases in Montana or in the Central and Western Gulf of Mexico Planning Areas on the Outer Continental Shelf in exchange for the cancellation of the nonproducing leases:

(3) A discussion of any other appropriate opportunities to exchange the nonproducing leases or provide compensation for their cancellation with the consent of the lessee.

(4) Views of interested parties, including the written views of the State of Montana;

(5) A discussion of the level of interest of the holders of the nonproducing lessees in the exchange of such interest;

(6) Recommendations regarding the advisability of pursuing such exchanges; and

(7) Recommendations regarding changes in law and regulation needed to enable the Secretary to undertake such an exchange.

The Secretary shall transmit the evaluation to the Committee on Energy and Natural Resources of the Senate and the Committee on Resources of the House of Representatives within two years after the date of enactment of this Act.

(c) Valuation of Nonproducing Leases.--For purposes of the evaluation, the value of each nonproducing lease shall be an amount equal to--

(1) consideration paid by the current lessee for each nonproducing lease; plus

(2) all direct expenditures made by the current lessee prior to the date of enactment of this Act in connection with the exploration or development, or both, of such lease (plus interest on such consideration and such expenditures from the date of payment to date of issuance of the credits); minus

(3) the sum of the revenues from the nonproducing lease.

(d) Suspension of Leases.--In order to allow for the evaluation under this section and review by the Congress, nonproducing leases in the Badger-Two Medicine Area shall be suspended for a period of three years commencing from the date of enactment of this Act.

(e) Limitation on Suspension of Leases.--The suspension referred to in subsection (d) shall not apply to nonproducing leases located in the Blackleaf Area.

(f) Authorization of Appropriations.--There are hereby authorized to be appropriated such sums as may be necessary to carry out the purposes of this section.

____

SA 3209. Mr. WELLSTONE submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 373, strike lines 3 and 4 and insert the following:sources;

(3) take into account the findings of the initial report developed under section 1317(a); and

(4) provide for the comprehensive collection and

On page 476, between lines 16 and 17, insert the following:

PART I--CARBON SEQUESTRATION RESEARCH, DEMONSTRATION PROJECTS, AND

OUTREACH

On page 487, between lines 18 and 19, insert the following:

PART II--FOUNDATIONS FOR A NATIONAL CARBON SEQUESTRATION BASELINE AND

ACCOUNTING SYSTEM

SEC. 1315. PURPOSE.

The purpose of this part is to establish foundations for a national carbon sequestration baseline and accounting system to support development and assessment of programs and policies that encourage environmentally beneficial carbon sequestration and carbon storage practices.

SEC. 1316. DEFINITIONS.

In this part:

(1) Accounting system.--

(A) In general.--The term ``accounting system'' means a system for quantifying increases or decreases, relative to a comprehensive baseline and a reference case, in carbon release, carbon sequestration, or carbon storage in biomass and soil (excluding carbon release, carbon sequestration, or carbon storage resulting from the planting or harvesting of annual crops) that result from natural or human-caused changes in natural resources or land uses, practices, or activities.

(B) Inclusion.--The term ``accounting system'' includes parameters that are sufficient to provide a basis for spatial or georeferenced tracking of changes in levels of carbon storage that can be measured and assessed over time.

(2) Baseline.--The term ``baseline'' means a quantification of the carbon stored in biomass and soil that is associated with all natural resources, or land uses, practices, or activities, within a specific land area at a specific point in time.

(3) Biomass.--The term ``biomass'' means roots, stems, or foliage of vegetation.

(4) Carbon release.--

(A) In general.--The term ``carbon release'' means a release of carbon as a result of a natural cause or a change in a land or resource use, practice, or activity.

(B) Exclusion.--The term ``carbon release'' does not include a release of carbon as a result of the burning of fossil fuel.

(5) Carbon sequestration.--The term ``carbon sequestration'' means the process of increasing the carbon content in biomass and soil through a biological method (such as photosynthesis) that captures or removes carbon from the atmosphere.

(6) Carbon storage.--The term ``carbon storage'' means the quantity of carbon stored in biomass and soil.

(7) Carbon storage performance indicator.--The term

``carbon storage performance indicator'' means a set of scientifically based computations (including a model and a reference table) that can be used by landowners and others to easily extrapolate a quantification of carbon storage independent from or in combination with sampling.

(8) Federal agency.--The term ``Federal agency'' includes--

(A) the Environmental Protection Agency;

(B) the National Air and Space Administration; and

(i) the Department of Agriculture;

(ii) the Department of Commerce;

(iii) the Department of Energy; and

(iv) the Department of the Interior.

(9) Pilot area.--The term ``pilot area'' means an area consisting of 1 or more States in which a pilot program under section 1318 is carried out.

(10) Reference case.--The term ``reference case'' means a quantified projection of carbon release, carbon sequestration, or carbon storage reflecting a typical scenario against which the effects of a program, policy, or project can be assessed.

(11) Secretary.--The term ``Secretary'' means the Secretary of Agriculture.

SEC. 1317. ESTABLISHMENT OF FOUNDATIONS FOR A NATIONAL

BASELINE AND ACCOUNTING SYSTEM.

(a) Annual Reports on Establishment.--Not later than 1 year after the date of enactment of this Act, the Secretary, in collaboration with other Federal agencies and in consultation with eligible entities carrying out pilot programs under section 1318, shall submit to Congress a report, and in each of the 4 years thereafter shall submit an updated report, on the technical, information, and administrative requirements, institutional relationships, infrastructure, and funding

(including funding of startup costs and maintenance costs) needed to establish a national baseline and accounting system, including--

(1) methodologies for quantification and measurement of carbon release, carbon sequestration, and carbon storage, and release and sequestration of other greenhouse gases, including methodologies--

(A) to develop reference cases for various types of activities and geographic locations;

(B) to cover subsequent releases under the accounting system; and

(C) to track or estimate changes in carbon release, carbon sequestration, or carbon storage in land outside an area that are caused by changes in activities in another area;

(2) institutional relationships necessary to collect information, including the role that States may fulfill;

(3) means of determining the adequacy of information and the necessary level of precision;

(4) alternative approaches for developing a national baseline and accounting system in the most cost-effective manner while maintaining necessary levels of precision and accuracy;

(5) an assessment of the appropriate uses for, and the feasibility of developing, carbon storage performance indicators for carbon release, carbon sequestration, and carbon storage, and performance indicators for other greenhouse gases, for various land and resource uses and forest, agricultural, and cropland management practices

(including an evaluation of associated economic and financial costs);

(6) the extent to which a national baseline and accounting system could support a range of policy and program initiatives to encourage environmentally beneficial carbon sequestration and carbon storage practices, including practices that result in the benefits described in section 1318(c)(2)(D);

(7) requirements for the management and access to data by the public;

(8) issues, options, and methodologies relating to accounting for carbon content in wood products and annual crops;

(9) an assessment of national, State, and local policies and programs--

(A) to encourage carbon sequestration and carbon storage practices that also have other beneficial impacts on the environment; and

(B) to discourage those practices that have harmful impacts;

(10) innovative methods for financing the continued development of a national baseline and accounting system; and

(11) recommendations to Congress on appropriate considerations in carrying out the purposes of this part.

(b) Development of Carbon Storage Performance Indicators.--

(1) In general.--During the 5-year period beginning on the date of enactment of this Act, the Secretary, in collaboration with other Federal agencies, shall conduct research on, develop, and publish as appropriate, carbon storage performance indicators that assist landowners and others in cost-effective and reliable quantification of the carbon release, carbon sequestration, and carbon storage expected to result from various land and resource uses, practices, or activities over various periods of time.

(2) Required elements.--In carrying out paragraph (1), the Secretary shall--

(A) review relevant information, including information developed under the pilot programs under section 1318;

(B) determine the extent to which carbon storage performance indicators should vary according to--

(i) region of the United States;

(ii) biological, ecological, or physiological criterion; or

(iii) type of management practice;

(i) various levels of precision for quantification and measurement based on a range of uses; and

(ii) implications for potential uses of the carbon storage performance indicators, including such uses as--

(I) communications to encourage beneficial practices;

(II) initial screening for potential benefits from certain practices;

(III) quantification of a national baseline and accounting system and reference case, including uses--

(aa) to augment sampling to reduce costs;

(bb) to ensure inclusion of subsequent releases of quantified carbon storage and carbon sequestration to address permanence and long-term trends in carbon storage; and

(cc) to simplify assessment of impacts within and outside a specific area; and

(IV) project-level quantification of carbon release, carbon sequestration, and carbon storage;

(D) consider the implications of establishing performance indicators for greenhouse gases other than carbon;

(E)(i) identify practices that--

(I) consistently store, release, or sequester carbon over a specified period of time; and

(II) offer additional environmental benefits, including practices that result in the benefits described in section 1318(c)(2)(D); and

(ii) identify factors that may serve to affect the performance of the practices described in clause (i) with respect to carbon sequestration and environmental impacts; and

(F) provide information on methods by which landowners and others may evaluate costs and return on investment over time.

(3) Peer review.--The carbon storage performance indicators developed under paragraph (1) shall be subjected to peer review by members of the public and private science and policy communities and potential user groups, including eligible entities carrying out pilot programs under section 1318.

(c) Report on Design Options for National Baseline and Accounting System.--Not later than 5 years after the date of enactment of this Act, the Secretary shall submit to Congress a report that--

(1) assesses and describes options for the design and development of a publicly accessible national baseline and accounting system; and

(2) summarizes and synthesizes relevant findings of the annual reports submitted under subsection (a).

SEC. 1318. PILOT PROGRAMS TO ESTABLISH BASELINES AND

ACCOUNTING SYSTEMS.

(a) Grants.--

(1) In general.--The Secretary, in consultation with other Federal agencies, shall make competitive grants to not more than 5 eligible entities to carry out pilot programs to demonstrate and assess the feasibility of publicly accessible, automated baselines and accounting systems that are designed--

(A) to assess trends; and

(B) to assist in developing and assessing carbon sequestration and storage policies and programs.

(2) Eligible entities.--To be eligible to receive a grant under this section, an entity shall be--

(A) a State entity or consortium of State entities;

(B) a research institution with a demonstrated capacity for research relating to this part, such as--

(i) an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)); and

(ii) a land-grant college or university (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103));

(D) a nonprofit entity; or

(E) a consortium of entities described in any of subparagraphs (A) through (D).

(b) Applications.--

(1) In general.--To receive a grant to carry out a pilot program, an eligible entity shall submit to the Secretary an application at such time, in such form, and containing such information as the Secretary may require.

(2) Required elements.--An application by an eligible entity to carry out a pilot program shall contain, at a minimum, a description of--

(A) sources, level of detail, aggregation, and plans for filling gaps in information that the eligible entity would use to carry out the pilot program;

(B) proposed management of, and access by the public to, the information described in subparagraph (A), including--

(i) design of automation support; and

(ii) reporting and quality control of data submissions and data entry in a manner that protects confidentiality;

(C) means by which recommendations for cost-effective mechanisms for a national, multistate, or State baseline and accounting system may result from the pilot program;

(D) means by which a baseline and accounting system, including a reference case, may be developed;

(E) institutional arrangements that the eligible entity will use to collect and manage relevant information from various sources and levels of government;

(F) the participation of the governmental and nongovernmental interests that would be affected by the pilot program;

(G) a sampling plan to provide for the measurement of carbon at the beginning and end of the pilot program; and

(H) information on how the pilot program could--

(i) support improved agricultural and forest management practices to reduce greenhouse gas emissions and offer other environmental, social, and economic benefits;

(ii) recognize long-term commitment of land to uses that store rather than release carbon and that offer other environmental benefits; and

(iii) lead to development of new mechanisms for improved institutional coordination, cooperation, and communication among Federal, State, and local governmental organizations involved in public and private land management, policy, and practice.

(1) In general.--In selecting pilot programs for grants under this section, the Secretary shall give priority to pilot programs that have the greatest potential for advancing the purpose of this part.

(2) Considerations.--In carrying out paragraph (1), the Secretary shall consider--

(A) the percentage of land in a pilot area that is forest and the percentage of land in a pilot area that is cropland, as determined under the National Resources Inventory for 1997 conducted by the Natural Resources Conservation Service;

(B) the regional distribution of pilot areas to reflect a wide variety of forest, agriculture, and ecosystem settings;

(C) innovations in regulations, policies, programs, or voluntary incentives adopted or proposed by the eligible entity to encourage legal, financial, and other mechanisms that would create incentives for environmentally beneficial carbon sequestration and carbon storage on public and private land; and

(D) the potential for beneficial environmental, social, and economic results through--

(i) reduction of threats from global climate change; and

(ii) ancillary benefits such as--

(I) prevention of erosion;

(II) flood control;

(III) soil conservation, fertility, and productivity;

(IV) improved water quality;

(V) protection and restoration of ecosystems and fish and wildlife habitat;

(VI) management and conservation of forests, including through reforestation practices; and

(VII) management of water resources.

(d) Guidelines for Pilot Programs.--Not later than 1 year after the date of enactment of this Act, the Secretary, in collaboration with other Federal agencies and eligible entities desiring to carry out pilot programs, shall develop guidelines for the pilot programs.

(e) Access to Information.--To assist States in developing baselines and accounting systems, the Secretary shall facilitate access to the most up-to-date information on carbon sequestration and carbon storage from--

(1) the Department of Agriculture, through involvement of the Agricultural Research Service, the Cooperative State Research, Education, and Extension Service, the Forest Service, and the Natural Resources Conservation Service;

(2) the Environmental Protection Agency;

(3) the National Aeronautics and Space Administration; and

(4) other agencies and Federal, State, or private sources of information.

(f) Reports.--An eligible entity that receives a grant under this section shall submit to the Secretary such reports as the Secretary may require.

SEC. 1319. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out this part $20,000,000 for the period of fiscal years 2003 through 2007, of which--

(1) $5,000,000 shall be used--

(A) to carry out section 1317; and

(B) to pay administrative expenses incurred in carrying out section 1318; and

(2) $15,000,000 shall be used for grants under section 1318.

____

SA 3210. Mr. CORZINE (for himself and Mr. Fitzgerald) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 143, between lines 22 and 23, insert the following:

(d) Financial Protection of Government.--

(1) In general.--To the extent practicable, the Secretary of Energy shall ensure that the Government is compensated for the risk assumed in making loan guarantees under this section.

(2) Government participation in gains.--To the extent to which any entity accepts financial assistance under this section by accepting the proceeds of a loan guaranteed by the Government under this section, the Secretary of Energy may enter into a contract under which the Government, contingent on the financial success of the entity, will participate in the gains of the entity or of holders of securities of the entity through the use of such instruments as warrants, stock options, common or preferred stock, or other appropriate equity instruments.

(3) Deposit in treasury.--All amounts collected by the Secretary of the Treasury under this section shall be deposited in the Treasury as miscellaneous receipts.

____

SA 3211. Mrs. FEINSTEIN (for herself and Ms. Snowe) submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle A of title VIII, insert the following:

SEC. 820A. ADDITIONAL REQUIREMENTS FOR VEHICLE FUEL ECONOMY.

(a) Relationship to Provision on Fuel Economy Standards for Pickup Trucks.--Section 811 (relating to fuel economy standards for pickup trucks) shall not take effect.

(b) Increased Average Fuel Economy Standard for Light Trucks.--

(1) Definition of light truck.--Section 32901(a) of title 49, United States Code, is amended by adding at the end the following new paragraph:

``(17) `light truck' has the meaning given that term in regulations prescribed by the Secretary of Transportation in the administration of this chapter.''.

(2) Requirement for increased standard.--Section 32902(a) of title 49, United States Code, is amended--

(A) by inserting ``(1)'' after ``automobiles.--'';

(B) by inserting before the period at the end of the third sentence the following: ``, subject to paragraph (2)''; and

``(2) The average fuel economy standard for light trucks manufactured by a manufacturer may not be less than 27.5 miles per gallon, except that the average fuel economy standard for--

``(A) light trucks manufactured by a manufacturer in a model year after model year 2005 and before model year 2008 may not be less than 22.5 miles per gallon; and

``(B) light trucks manufactured by a manufacturer in a model year after model year 2007 and before model year 2012 may not be less than 25 miles per gallon.''.

(3) Applicability.--Paragraph (2) of section 32902(a) of such title does not apply with respect to light trucks manufactured before model year 2003.

(1) Vehicles defined as automobiles.--Section 32901(a)(3) of title 49, United States Code, is amended by striking ``is rated at--'' and all that follows through the end and inserting ``is rated at not more than 10,000 pounds gross vehicle weight.''.

(2) Effective date.--The amendment made by paragraph (1) shall take effect on January 1, 2007.

(d) Fuel Economy of the Federal Fleet of Vehicles.--

(1) Baseline average fuel economy.--The head of each executive agency shall determine, for each class of vehicles that are in the agency's fleet of vehicles in fiscal year 2002, the average fuel economy for all of the vehicles in that class that are in the agency's fleet of vehicles for that fiscal year. For the purposes of this section, the average fuel economy so determined for the agency's vehicles in a class of vehicles shall be the baseline average fuel economy for the agency's fleet of vehicles in that class.

(2) Increase of average fuel economy.--The head of an executive agency shall manage the procurement of vehicles in each class of vehicles for that agency in such a manner that--

(A) not later than September 30, 2003, the average fuel economy of the new vehicles in the agency's fleet of vehicles in each class of vehicles is not less than 3 miles per gallon higher than the baseline average fuel economy determined for that class; and

(B) not later than September 30, 2005, the average fuel economy of the new vehicles in the agency's fleet of vehicles in each class of vehicles is not less than 6 miles per gallon higher than the baseline average fuel economy determined for that class.

(3) Calculation of average fuel economy.--Average fuel economy shall be calculated for the purposes of this section in accordance with guidance which the Secretary of Transportation shall prescribe for the implementation of this section.

(4) Definitions.--In this subsection:

(A) The term ``class of vehicles'' means a class of vehicles for which an average fuel economy standard is in effect under chapter 329 of title 49, United States Code.

(B) The term ``executive agency'' has the meaning given the term in section 4(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).

(C) The term ``new vehicle'', with respect to the fleet of vehicles of an executive agency, means a vehicle procured by or for the agency after September 30, 2002.

____

SA 3212. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. . SUSPENSION OF DUTIES ON ETHANOL.

Notwithstanding any other provision of law, no duty shall be imposed on ethanol entered, or withdrawn from warehouse for consumption, beginning on the date that is 15 days after the date of enactment of this Act.

____

SA 3213. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 188, line 15, insert ``(excluding California, New York, and any other State that demonstrates to the satisfaction of the Administrator that the State is in compliance with all requirements of this Act)'' after

``United States''.

____

SA 3214. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 188, line 15, insert ``(excluding California and New York)'' after ``United States''.

____

SA 3215. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 189, strike line 3 and all that follows through page 199, line 17, and insert the following:shall be 1.62 in 2007.

``(B) Applicable volume.--

(i) Calendar years 2007 through 2012.--For the purpose of subparagraph (A), the applicable volume for any of calendar years 2007 through 2012 shall be determined in accordance with the following table:

Applicable volume of renewable fuel

``Calendar year: (In billions of gallons)

2007............................................................3.2

2008............................................................3.5

2009............................................................3.9

2010............................................................4.3

2011............................................................4.7

2012...........................................................5.0.

``(ii) Calendar year 2013 and thereafter.--For the purpose of subparagraph (A), the applicable volume for calendar year 2013 and each calendar year thereafter shall be equal to the product obtained by multiplying--

``(I) the number of gallons of gasoline that the Administrator estimates will be sold or introduced into commerce in the calendar year; and

``(II) the ratio that--

``(aa) 5.0 billion gallons of renewable fuels; bears to

``(bb) the number of gallons of gasoline sold or introduced into commerce in calendar year 2012.

``(3) Applicable percentages.--Not later than October 31 of each of calendar years 2006 through 2011, the Administrator of the Energy Information Administration shall provide the Administrator an estimate of the volumes of gasoline sales in the United States for the coming calendar year. Based on such estimates, the Administrator shall by November 30 of each of calendar years 2008 through 2011, determine and publish in the Federal Register, the renewable fuel obligation, on a volume percentage of gasoline basis, applicable to refiners, blenders, distributors and importers, as appropriate, for the coming calendar year, to ensure that the requirements of paragraph (2) are met. For each calendar year, the Administrator shall establish a single applicable percentage that applies to all parties, and make provision to avoid redundant obligations. In determining the applicable percentages, the Administrator shall make adjustments to account for the use of renewable fuels by exempt small refiners during the previous year.

``(4) Cellulosic biomass ethanol.--For the purpose of paragraph (2), 1 gallon of cellulosic biomass ethanol shall be considered to be the equivalent of 1.5 gallon of renewable fuel.

``(5) Credit program.--

``(A) In general.--The regulations promulgated to carry out this subsection shall provide for the generation of an appropriate amount of credits by any person that refines, blends, distributes or imports gasoline that contains a quantity of renewable fuel that is greater than the quantity required under paragraph (2). Such regulations shall provide for the generation of an appropriate amount of credits for biodiesel fuel. If a small refinery notifies the Administrator that it waives the exemption provided by this Act, the regulations shall provide for the generation of credits by the small refinery beginning in the year following such notification.

``(B) Use of credits.--A person that generates credits under subparagraph (A) may use the credits, or transfer all or a portion of the credits to another person, for the purpose of complying with paragraph (2).

``(C) Life of credits.--A credit generated under this paragraph shall be valid to show compliance:

(i) in the calendar year in which the credit was generated or the next calendar year, or

(ii) in the calendar year in which the credit was generated or next two consecutive calendar years if the Administrator promulgates regulations under paragraph (6).

``(D) Inability to purchase sufficient credits.--The regulations promulgated to carry out this subsection shall include provisions allowing any person that is unable to generate or purchase sufficient credits to meet the requirements under paragraph (2) to carry forward a renewables deficit provided that, in the calendar year following the year in which the renewables deficit is created, such person shall achieve compliance with the renewables requirement under paragraph (2), and shall generate or purchase additional renewables credits to offset the renewables deficit of the previous year.

``(6) Seasonal variations in renewable fuel use.--

``(A) Study.--For each of calendar years 2007 through 2012, the Administrator of the Energy Information Administration, shall conduct a study of renewable fuels blending to determine whether there are excessive seasonal variations in the use of renewable fuels.

``(B) Regulation of excessive seasonal variations.--If, for any calendar year, the Administrator of the Energy Information Administration, based on the study under subparagraph (A), makes the determinations specified in subparagraph (C), the Administrator shall promulgate regulations to ensure that 35 percent or more of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) is used during each of the periods specified in subparagraph (D) of each subsequent calendar year.

``(C) Determinations.--The determinations referred to in subparagraph (B) are that--

``(i) less than 35 percent of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) has been used during 1 of the periods specified in subparagraph

(D) of the calendar year; and

``(ii) a pattern of excessive seasonal variation described in clause (i) will continue in subsequent calendar years.

``(D) Periods.--The two periods referred to in this paragraph are--

``(i) April through September; and

``(ii) January through March and October through December.

``(E) Exclusions.--Renewable fuels blended or consumed in 2007 in a state which has received a waiver under section 209(b) shall not be included in the study in subparagraph

(A).

``(7) Waivers.--

``(A) In general.--The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, may waive the requirement of paragraph (2) in whole or in part on petition by 1 or more States by reducing the national quantity of renewable fuel required under this subsection--

``(i) based on a determination by the Administrator, after public notice and opportunity for comment, that implementation of the requirement would severely harm the economy or environment of a State, a region, or the United States; or

``(ii) based on a determination by the Administrator, after public notice and opportunity for comment, that there is an inadequate domestic supply or distribution capacity to meet the requirement.

``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy--

``(i) shall approve or deny a State petition for a waiver of the requirement of paragraph (2) within 180 days after the date on which the petition is received; but

``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted.

``(C) Termination of waivers.--A waiver granted under subparagraph (A) shall terminate after 1 year, but may be renewed by the Administrator after consultation with the Secretary of Agriculture and the Secretary of Energy.

``(8) Study and waiver for initial year of program.--Not later than 180 days from enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2007, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days from enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2007. This provision shall not be interpreted as limiting the Administrator's authority to waive the requirements of paragraph (2) in whole, or in part, under paragraph (7), pertaining to waivers.

``(9) Small refineries.--

``(A) In general.--The requirement of paragraph (2) shall not apply to small refineries until January 1, 2008. Not later than December 31, 2006, the Secretary of Energy shall complete for the Administrator a study to determine whether the requirement of paragraph (2) would impose a disproportionate economic hardship on small refineries. For any small refinery that the Secretary of Energy determines would experience a disproportionate economic hardship, the Administrator shall extend the small refinery exemption for such small refinery for no less than two additional years.

``(B) Economic hardship.--

``(i) A small refinery may at any time petition the Administrator for an extension of the exemption from the requirement of paragraph (2) for the reason of disproportionate economic hardship. In evaluating a hardship petition, the Administrator, in consultation with the Secretary of Energy, shall consider the findings of the study in addition to other economic factors.

``(ii) Deadline for action on petitions.--The Administrator shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the receipt of the petition.

``(C) Credit program.--If a small refinery notifies the Administrator that it waives the exemption provided by this Act, the regulations shall provide for the generation of credits by the small refinery beginning in the year following such notification.

``(D) Opt-in for small refiners.--A small refinery shall be subject to the requirements of this section if it notifies the Administrator that it waives the exemption under subparagraph (A).

``(10) Study.--Not later than 180 days after the date of enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2007, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days after the date of enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2007. This provision

____

SA 3216. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 189, strike line 3 and all that follows through page 199, line 17, and insert the following:shall be 1.62 in 2008.

``(B) Applicable volume.--

(i) Calendar years 2008 through 2012.--For the purpose of subparagraph (A), the applicable volume for any of calendar years 2008 through 2012 shall be determined in accordance with the following table:

Applicable volume of renewable fuel

``Calendar year: (In billions of gallons)

2008............................................................3.5

2009............................................................3.9

2010............................................................4.3

2011............................................................4.7

2012...........................................................5.0.

``(I) the number of gallons of gasoline that the Administrator estimates will be sold or introduced into commerce in the calendar year; and

``(II) the ratio that--

``(aa) 5.0 billion gallons of renewable fuels; bears to

``(bb) the number of gallons of gasoline sold or introduced into commerce in calendar year 2012.

``(3) Applicable percentages.--Not later than October 31 of each of calendar years 2007 through 2011, the Administrator of the Energy Information Administration shall provide the Administrator an estimate of the volumes of gasoline sales in the United States for the coming calendar year. Based on such estimates, the Administrator shall by November 30 of each of calendar years 2007 through 2011, determine and publish in the Federal Register, the renewable fuel obligation, on a volume percentage of gasoline basis, applicable to refiners, blenders, distributors and importers, as appropriate, for the coming calendar year, to ensure that the requirements of paragraph (2) are met. For each calendar year, the Administrator shall establish a single applicable percentage that applies to all parties, and make provision to avoid redundant obligations. In determining the applicable percentages, the Administrator shall make adjustments to account for the use of renewable fuels by exempt small refiners during the previous year.

``(4) Cellulosic biomass ethanol.--For the purpose of paragraph (2), 1 gallon of cellulosic biomass ethanol shall be considered to be the equivalent of 1.5 gallon of renewable fuel.

``(5) Credit program.--

``(C) Life of credits.--A credit generated under this paragraph shall be valid to show compliance:

(i) in the calendar year in which the credit was generated or the next calendar year, or

(ii) in the calendar year in which the credit was generated or next two consecutive calendar years if the Administrator promulgates regulations under paragraph (6).

``(6) Seasonal variations in renewable fuel use.--

``(A) Study.--For each of calendar years 2008 through 2012, the Administrator of the Energy Information Administration, shall conduct a study of renewable fuels blending to determine whether there are excessive seasonal variations in the use of renewable fuels.

``(C) Determinations.--The determinations referred to in subparagraph (B) are that--

``(i) less than 35 percent of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) has been used during 1 of the periods specified in subparagraph

(D) of the calendar year; and

``(ii) a pattern of excessive seasonal variation described in clause (i) will continue in subsequent calendar years.

``(D) Periods.--The two periods referred to in this paragraph are--

``(i) April through September; and

``(ii) January through March and October through December.

``(E) Exclusions.--Renewable fuels blended or consumed in 2008 in a state which has received a waiver under section 209(b) shall not be included in the study in subparagraph

(A).

``(7) Waivers.--

``(ii) based on a determination by the Administrator, after public notice and opportunity for comment, that there is an inadequate domestic supply or distribution capacity to meet the requirement.

``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy--

``(i) shall approve or deny a State petition for a waiver of the requirement of paragraph (2) within 180 days after the date on which the petition is received; but

``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted.

``(8) Study and waiver for initial year of program.--Not later than 180 days from enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2008, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days from enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2008. This provision shall not be interpreted as limiting the Administrator's authority to waive the requirements of paragraph (2) in whole, or in part, under paragraph (7), pertaining to waivers.

``(9) Small refineries.--

``(B) Economic hardship.--

``(ii) Deadline for action on petitions.--The Administrator shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the receipt of the petition.

``(D) Opt-in for small refiners.--A small refinery shall be subject to the requirements of this section if it notifies the Administrator that it waives the exemption under subparagraph (A).

``(10) Study.--Not later than 180 days after the date of enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2008, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days after the date of enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2007. This provision

____

SA 3217. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 189, strike line 3 and all that follows through page 199, line 17, and insert the following:shall be 1.62 in 2009.

``(B) Applicable volume.--

(i) Calendar years 2009 through 2012.--For the purpose of subparagraph (A), the applicable volume for any of calendar years 2009 through 2012 shall be determined in accordance with the following table:

Applicable volume of renewable fuel

``Calendar year: (In billions of gallons)

2009............................................................3.9

2010............................................................4.3

2011............................................................4.7

2012...........................................................5.0.

``(I) the number of gallons of gasoline that the Administrator estimates will be sold or introduced into commerce in the calendar year; and

``(II) the ratio that--

``(aa) 5.0 billion gallons of renewable fuels; bears to

``(bb) the number of gallons of gasoline sold or introduced into commerce in calendar year 2012.

``(3) Applicable percentages.--Not later than October 31 of each of calendar years 2008 through 2011, the Administrator of the Energy Information Administration shall provide the Administrator an estimate of the volumes of gasoline sales in the United States for the coming calendar year. Based on such estimates, the Administrator shall by November 30 of each of calendar years 2008 through 2011, determine and publish in the Federal Register, the renewable fuel obligation, on a volume percentage of gasoline basis, applicable to refiners, blenders, distributors and importers, as appropriate, for the coming calendar year, to ensure that the requirements of paragraph (2) are met. For each calendar year, the Administrator shall establish a single applicable percentage that applies to all parties, and make provision to avoid redundant obligations. In determining the applicable percentages, the Administrator shall make adjustments to account for the use of renewable fuels by exempt small refiners during the previous year.

``(4) Cellulosic biomass ethanol.--For the purpose of paragraph (2), 1 gallon of cellulosic biomass ethanol shall be considered to be the equivalent of 1.5 gallon of renewable fuel.

``(5) Credit program.--

``(C) Life of credits.--A credit generated under this paragraph shall be valid to show compliance:

(i) in the calendar year in which the credit was generated or the next calendar year, or

(ii) in the calendar year in which the credit was generated or next two consecutive calendar years if the Administrator promulgates regulations under paragraph (6).

``(6) Seasonal variations in renewable fuel use.--

``(A) Study.--For each of calendar years 2009 through 2012, the Administrator of the Energy Information Administration, shall conduct a study of renewable fuels blending to determine whether there are excessive seasonal variations in the use of renewable fuels.

``(C) Determinations.--The determinations referred to in subparagraph (B) are that--

``(i) less than 35 percent of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) has been used during 1 of the periods specified in subparagraph

(D) of the calendar year; and

``(ii) a pattern of excessive seasonal variation described in clause (i) will continue in subsequent calendar years.

``(D) Periods.--The two periods referred to in this paragraph are--

``(i) April through September; and

``(ii) January through March and October through December.

``(E) Exclusions.--Renewable fuels blended or consumed in 2009 in a state which has received a waiver under section 209(b) shall not be included in the study in subparagraph

(A).

``(7) Waivers.--

``(ii) based on a determination by the Administrator, after public notice and opportunity for comment, that there is an inadequate domestic supply or distribution capacity to meet the requirement.

``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy--

``(i) shall approve or deny a State petition for a waiver of the requirement of paragraph (2) within 180 days after the date on which the petition is received; but

``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted.

``(8) Study and waiver for initial year of program.--Not later than 180 days from enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2009, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days from enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2008. This provision shall not be interpreted as limiting the Administrator's authority to waive the requirements of paragraph (2) in whole, or in part, under paragraph (7), pertaining to waivers.

``(9) Small refineries.--

``(A) In general.--The requirement of paragraph (2) shall not apply to small refineries until January 1, 2009. Not later than December 31, 2006, the Secretary of Energy shall complete for the Administrator a study to determine whether the requirement of paragraph (2) would impose a disproportionate economic hardship on small refineries. For any small refinery that the Secretary of Energy determines would experience a disproportionate economic hardship, the Administrator shall extend the small refinery exemption for such small refinery for no less than two additional years.

``(B) Economic hardship.--

``(ii) Deadline for action on petitions.--The Administrator shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the receipt of the petition.

``(D) Opt-in for small refiners.--A small refinery shall be subject to the requirements of this section if it notifies the Administrator that it waives the exemption under subparagraph (A).

``(10) Study.--Not later than 180 days after the date of enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2009, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days after the date of enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2008. This provision

____

SA 3218. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 189, strike line 3 and all that follows through page 199, line 17, and insert the following:shall be 1.62 in 2010.

``(B) Applicable volume.--

(i) Calendar years 2010 through 2012.--For the purpose of subparagraph (A), the applicable volume for any of calendar years 2010 through 2012 shall be determined in accordance with the following table:

Applicable volume of renewable fuel

``Calendar year: (In billions of gallons)

2010............................................................4.3

2011............................................................4.7

2012...........................................................5.0.

``(I) the number of gallons of gasoline that the Administrator estimates will be sold or introduced into commerce in the calendar year; and

``(II) the ratio that--

``(aa) 5.0 billion gallons of renewable fuels; bears to

``(bb) the number of gallons of gasoline sold or introduced into commerce in calendar year 2012.

``(3) Applicable percentages.--Not later than October 31 of each of calendar years 2009 through 2011, the Administrator of the Energy Information Administration shall provide the Administrator an estimate of the volumes of gasoline sales in the United States for the coming calendar year. Based on such estimates, the Administrator shall by November 30 of each of calendar years 2009 through 2011 determine and publish in the Federal Register, the renewable fuel obligation, on a volume percentage of gasoline basis, applicable to refiners, blenders, distributors and importers, as appropriate, for the coming calendar year, to ensure that the requirements of paragraph (2) are met. For each calendar year, the Administrator shall establish a single applicable percentage that applies to all parties, and make provision to avoid redundant obligations. In determining the applicable percentages, the Administrator shall make adjustments to account for the use of renewable fuels by exempt small refiners during the previous year.

``(4) Cellulosic biomass ethanol.--For the purpose of paragraph (2), 1 gallon of cellulosic biomass ethanol shall be considered to be the equivalent of 1.5 gallon of renewable fuel.

``(5) Credit program.--

``(C) Life of credits.--A credit generated under this paragraph shall be valid to show compliance:

(i) in the calendar year in which the credit was generated or the next calendar year, or

(ii) in the calendar year in which the credit was generated or next two consecutive calendar years if the Administrator promulgates regulations under paragraph (6).

``(6) Seasonal variations in renewable fuel use.--

``(A) Study.--For each of calendar years 2010 through 2012, the Administrator of the Energy Information Administration, shall conduct a study of renewable fuels blending to determine whether there are excessive seasonal variations in the use of renewable fuels.

``(C) Determinations.--The determinations referred to in subparagraph (B) are that--

``(i) less than 35 percent of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) has been used during 1 of the periods specified in subparagraph

(D) of the calendar year; and

``(ii) a pattern of excessive seasonal variation described in clause (i) will continue in subsequent calendar years.

``(D) Periods.--The two periods referred to in this paragraph are--

``(i) April through September; and

``(ii) January through March and October through December.

``(E) Exclusions.--Renewable fuels blended or consumed in 2010 in a state which has received a waiver under section 209(b) shall not be included in the study in subparagraph

(A).

``(7) Waivers.--

``(ii) based on a determination by the Administrator, after public notice and opportunity for comment, that there is an inadequate domestic supply or distribution capacity to meet the requirement.

``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy--

``(i) shall approve or deny a State petition for a waiver of the requirement of paragraph (2) within 180 days after the date on which the petition is received; but

``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted.

``(8) Study and waiver for initial year of program.--Not later than 180 days from enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2010, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days from enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2010. This provision shall not be interpreted as limiting the Administrator's authority to waive the requirements of paragraph (2) in whole, or in part, under paragraph (7), pertaining to waivers.

``(9) Small refineries.--

``(A) In general.--The requirement of paragraph (2) shall not apply to small refineries until January 1, 2010. Not later than December 31, 2006, the Secretary of Energy shall complete for the Administrator a study to determine whether the requirement of paragraph (2) would impose a disproportionate economic hardship on small refineries. For any small refinery that the Secretary of Energy determines would experience a disproportionate economic hardship, the Administrator shall extend the small refinery exemption for such small refinery for no less than two additional years.

``(B) Economic hardship.--

``(ii) Deadline for action on petitions.--The Administrator shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the receipt of the petition.

``(D) Opt-in for small refiners.--A small refinery shall be subject to the requirements of this section if it notifies the Administrator that it waives the exemption under subparagraph (A).

``(10) Study.--Not later than 180 days after the date of enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2010, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days after the date of enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2009. This provision''.

____

SA 3219. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 189, strike line 3 and all that follows through page 199, line 17, and insert the following:shall be 1.62 in 2011.

``(B) Applicable volume.--

(i) Calendar years 2011 and 2012.--For the purpose of subparagraph (A), the applicable volume for any of calendar years 2011 and 2012 shall be determined in accordance with the following table:

Applicable volume of renewable fuel

``Calendar year: (In billions of gallons)

2011............................................................4.7

2012...........................................................5.0.

``(I) the number of gallons of gasoline that the Administrator estimates will be sold or introduced into commerce in the calendar year; and

``(II) the ratio that--

``(aa) 5.0 billion gallons of renewable fuels; bears to

``(bb) the number of gallons of gasoline sold or introduced into commerce in calendar year 2012.

``(3) Applicable percentages.--Not later than October 31 of each of calendar years 2010 and 2011, the Administrator of the Energy Information Administration shall provide the Administrator an estimate of the volumes of gasoline sales in the United States for the coming calendar year. Based on such estimates, the Administrator shall by November 30 of each of calendar years 2010 and 2011 determine and publish in the Federal Register, the renewable fuel obligation, on a volume percentage of gasoline basis, applicable to refiners, blenders, distributors and importers, as appropriate, for the coming calendar year, to ensure that the requirements of paragraph (2) are met. For each calendar year, the Administrator shall establish a single applicable percentage that applies to all parties, and make provision to avoid redundant obligations. In determining the applicable percentages, the Administrator shall make adjustments to account for the use of renewable fuels by exempt small refiners during the previous year.

``(4) Cellulosic biomass ethanol.--For the purpose of paragraph (2), 1 gallon of cellulosic biomass ethanol shall be considered to be the equivalent of 1.5 gallon of renewable fuel.

``(5) Credit program.--

``(C) Life of credits.--A credit generated under this paragraph shall be valid to show compliance:

(i) in the calendar year in which the credit was generated or the next calendar year, or

(ii) in the calendar year in which the credit was generated or next two consecutive calendar years if the Administrator promulgates regulations under paragraph (6).

``(6) Seasonal variations in renewable fuel use.--

``(A) Study.--For each of calendar years 2011 and 2012, the Administrator of the Energy Information Administration, shall conduct a study of renewable fuels blending to determine whether there are excessive seasonal variations in the use of renewable fuels.

``(C) Determinations.--The determinations referred to in subparagraph (B) are that--

``(i) less than 35 percent of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) has been used during 1 of the periods specified in subparagraph

(D) of the calendar year; and

``(ii) a pattern of excessive seasonal variation described in clause (i) will continue in subsequent calendar years.

``(D) Periods.--The two periods referred to in this paragraph are--

``(i) April through September; and

``(ii) January through March and October through December.

``(E) Exclusions.--Renewable fuels blended or consumed in 2011 in a state which has received a waiver under section 209(b) shall not be included in the study in subparagraph

(A).

``(7) Waivers.--

``(ii) based on a determination by the Administrator, after public notice and opportunity for comment, that there is an inadequate domestic supply or distribution capacity to meet the requirement.

``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy--

``(i) shall approve or deny a State petition for a waiver of the requirement of paragraph (2) within 180 days after the date on which the petition is received; but

``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted.

``(8) Study and waiver for initial year of program.--Not later than 180 days from enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2011, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days from enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2011. This provision shall not be interpreted as limiting the Administrator's authority to waive the requirements of paragraph (2) in whole, or in part, under paragraph (7), pertaining to waivers.

``(9) Small refineries.--

``(A) In general.--The requirement of paragraph (2) shall not apply to small refineries until January 1, 2011. Not later than December 31, 2006, the Secretary of Energy shall complete for the Administrator a study to determine whether the requirement of paragraph (2) would impose a disproportionate economic hardship on small refineries. For any small refinery that the Secretary of Energy determines would experience a disproportionate economic hardship, the Administrator shall extend the small refinery exemption for such small refinery for no less than two additional years.

``(B) Economic hardship.--

``(ii) Deadline for action on petitions.--The Administrator shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the receipt of the petition.

``(D) Opt-in for small refiners.--A small refinery shall be subject to the requirements of this section if it notifies the Administrator that it waives the exemption under subparagraph (A).

``(10) Study.--Not later than 180 days after the date of enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2011, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days after the date of enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2011. This provision

____

SA 3220. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 189, strike line 3 and all that follows through page 199, line 17, and insert the following:

``shall be 1.62 in 2012.

``(B) Applicable volume.--

``(i) Calendar year 2012.--For the purpose of subparagraph

(A), the applicable volume for calendar year 2012 shall be determined in accordance with the following table:

``Applicable volume of renewable fuel

``Calendar year: (In billions of gallons)

2012...........................................................5.0.

``(I) the number of gallons of gasoline that the Administrator estimates will be sold or introduced into commerce in the calendar year; and

``(II) the ratio that--

``(aa) 5.0 billion gallons of renewable fuels; bears to

``(bb) the number of gallons of gasoline sold or introduced into commerce in calendar year 2012.

``(3) Applicable percentages.--Not later than October 31 of calendar year 2011, the Administrator of the Energy Information Administration shall provide the Administrator an estimate of the volumes of gasoline sales in the United States for the coming calendar year. Based on such estimates, the Administrator shall by November 30 of calendar year 2011, determine and publish in the Federal Register, the renewable fuel obligation, on a volume percentage of gasoline basis, applicable to refiners, blenders, distributors and importers, as appropriate, for the coming calendar year, to ensure that the requirements of paragraph (2) are met. For each calendar year, the Administrator shall establish a single applicable percentage that applies to all parties, and make provision to avoid redundant obligations. In determining the applicable percentages, the Administrator shall make adjustments to account for the use of renewable fuels by exempt small refiners during the previous year.

``(4) Cellulosic biomass ethanol.--For the purpose of paragraph (2), 1 gallon of cellulosic biomass ethanol shall be considered to be the equivalent of 1.5 gallon of renewable fuel.

``(5) Credit program.--

``(C) Life of credits.--A credit generated under this paragraph shall be valid to show compliance:

(i) in the calendar year in which the credit was generated or the next calendar year, or

(ii) in the calendar year in which the credit was generated or next two consecutive calendar years if the Administrator promulgates regulations under paragraph (6).

``(6) Seasonal variations in renewable fuel use.--

``(A) Study.--For calendar year 2012, the Administrator of the Energy Information Administration, shall conduct a study of renewable fuels blending to determine whether there are excessive seasonal variations in the use of renewable fuels.

``(C) Determinations.--The determinations referred to in subparagraph (B) are that--

``(i) less than 35 percent of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) has been used during 1 of the periods specified in subparagraph

(D) of the calendar year; and

``(ii) a pattern of excessive seasonal variation described in clause (i) will continue in subsequent calendar years.

``(D) Periods.--The two periods referred to in this paragraph are--

``(i) April through September; and

``(ii) January through March and October through December.

``(E) Exclusions.--Renewable fuels blended or consumed in 2012 in a state which has received a waiver under section 209(b) shall not be included in the study in subparagraph

(A).

``(7) Waivers.--

``(ii) based on a determination by the Administrator, after public notice and opportunity for comment, that there is an inadequate domestic supply or distribution capacity to meet the requirement.

``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy--

``(i) shall approve or deny a State petition for a waiver of the requirement of paragraph (2) within 180 days after the date on which the petition is received; but

``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted.

``(8) Study and waiver for initial year of program.--Not later than 180 days from enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2012, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days from enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2012. This provision shall not be interpreted as limiting the Administrator's authority to waive the requirements of paragraph (2) in whole, or in part, under paragraph (7), pertaining to waivers.

``(9) Small refineries.--

``(A) In general.--The requirement of paragraph (2) shall not apply to small refineries until January 1, 2012. Not later than December 31, 2006, the Secretary of Energy shall complete for the Administrator a study to determine whether the requirement of paragraph (2) would impose a disproportionate economic hardship on small refineries. For any small refinery that the Secretary of Energy determines would experience a disproportionate economic hardship, the Administrator shall extend the small refinery exemption for such small refinery for no less than two additional years.

``(B) Economic hardship.--

``(ii) Deadline for action on petitions.--The Administrator shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the receipt of the petition.

``(D) Opt-in for small refiners.--A small refinery shall be subject to the requirements of this section if it notifies the Administrator that it waives the exemption under subparagraph (A).

``(10) Study.--Not later than 180 days after the date of enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2012, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days after the date of enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2012. This provision''.

____

SA 3221. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 199, strike line 21 and insert the following: pertaining waivers.

``(11) Exclusion of certain states.--Notwithstanding any other provision of this subsection, this subsection shall not apply to the States of California and New York.''.

____

SA 3222. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

On page 199, strike line 21 and insert the following: pertaining waivers.

``(11) Exclusion of certain states.--Notwithstanding any other provision of this subsection, this subsection shall not apply to the States of California and New York, or any other State.''.

____

SA 3223. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 188, strike line 10 and all that follows through page 190, line 11, and insert the following:

``(2) Renewable fuel program.--

``(A) In general.--Not later than 1 year after the date of enactment of this subsection, the Administrator shall promulgate regulations ensuring that gasoline sold or dispensed to consumers in the United States in any of calendar years 2004 through 2012, on an annual average basis, contains the applicable volume of renewable fuel as specified in subparagraph (B). Regardless of the date of promulgation, the regulations shall contain compliance provisions for refiners, blenders, distributors and importers, as appropriate, to ensure that the requirements of this section are met, but shall not restrict where renewables can be used, or impose any per-gallon obligation for the use of renewables. If the Administrator does not promulgate such regulations, the applicable percentage, on a volume percentage of gasoline basis, shall be 1.62 in 2004.

``(B) Applicable volume.--For the purpose of subparagraph

(A), the applicable volume for any of calendar years 2004 through 2012 shall be determined in accordance with the following table:

``Applicable volume of renewable fuel

``Calendar year: (In billions of gallons)

2004............................................................2.3

2005............................................................2.6

2006............................................................2.9

2007............................................................3.2

2008............................................................3.5

2009............................................................3.9

2010............................................................4.3

2011............................................................4.7

5.0.''............................................................

____

SA 3224. Mrs. FEINSTEIN submitted an amendment intended to be proposed to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the Department of Energy to enhance its mission areas through technology transfer and partnerships for fiscal years 2002 through 2006, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 189, strike line 3 and all that follows through page 199, line 17, and insert the following:

``shall be 1.62 in 2006.

``(B) Applicable volume.--

``(i) Calendar years 2006 through 2012.--For the purpose of subparagraph (A), the applicable volume for any of calendar years 2006 through 2012 shall be determined in accordance with the following table: