SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Navajo Nation Higher Education Act
of 2004''.

SEC. 2. CONGRESSIONAL FINDINGS.

    Congress finds as follows:
            (1) The Treaty of 1868 between the United States of America
        and the Navajo Tribe of Indians provides for the education of
        the citizens of the Navajo Nation.
            (2) In 1968, the Navajo Nation created and chartered the
        Navajo Community College by Resolution CN-95-68 as a wholly
        owned educational entity of the Navajo Nation.
            (3) In 1971, Congress enacted the Navajo Community College
        Act (Public Law 92-189; 25 U.S.C. 640a et seq.).
            (4) In 1997, the Navajo Nation officially changed the name
        of the Navajo Community College to Dine College by Resolution
        CAP-35-97.
            (5) The purpose of Dine College is to provide educational
        opportunities to the Navajo people and others in areas
        important to the economic and social development of the Navajo
        Nation.
            (6) The mission of Dine College is to apply the principles
        of Sa'ah Naaghai Bik'eh Hozhoon (Dine Philosophy) to advance
        quality student learning through training of the mind and
        heart--
                    (A) through Nitsahakees (Thinking), Nahata
                (Planning), Iina (Living), and Sihasin (Assurance);
                    (B) in study of the Dine language, history,
                philosophy, and culture;
                    (C) in preparation for further studies and
                employment in a multicultural and technological world;
                and
                    (D) in fostering social responsibility, community
                service, and scholarly research that contribute to the
                social, economic, and cultural well-being of the Navajo
                Nation.
            (7) The United States has a trust and treaty responsibility
        to the Navajo Nation to provide for the educational
        opportunities for Navajo people.
            (8) Significant portions of the College's infrastructure
        are dilapidated and pose a serious health and safety risk to
        students, employees and the public.
            (9) The purposes and intent of this Act are consistent with
        Executive Order 13270 on tribal colleges and universities and
        fulfill the United States Government's trust responsibility to
        serve the educational needs of the Navajo people.
            (10) The purposes and intent of this Act are consistent
        with Executive Order 13336 on American Indian and Alaska Native
        education, issued on April 30, 2004, and fulfill the United
        States Government's responsibility to serve the education needs
        of the Navajo people.

SEC. 3. DEFINITIONS.

    For the purposes of this Act:
            (1) Secretary.--The term ``Secretary'' means the Secretary
        of the Interior.
            (2) Nation.--The term ``Nation'' means the Navajo Nation.
            (3) College.--The term ``College'' means Dine College.
            (4) Operations and maintenance.--The term ``operation and
        maintenance'' means all cost and expenses associated with the
        customary daily operation of the College and necessary
        maintenance costs.
            (5) Infrastructure.--The term ``infrastructure'' means
        College buildings, water and sewer facilities, roads,
        foundation, information technology, and telecommunications,
        including classrooms and external matters such as walkways.
            (6) Renovations and repairs.--The term ``renovations and
        repairs'' means modernization and improvements to the
        infrastructure.

SEC. 4. REAUTHORIZATION OF DINE COLLEGE.

    Congress authorizes the Dine College to receive all Federal funding
and resources under this Act and other laws for its operation,
improvement, and growth, including (but not limited to) the following:
            (1) to provide programs of higher education for citizens of
        the Nation and others;
            (2) to provide vocational and technical education for
        citizens of the Nation and others;
            (3) to preserve and protect the Navajo language,
        philosophy, and culture for citizens of the Nation and others;
            (4) to provide Navajo communities and people with
        employment and training opportunities;
            (5) to provide economic development and community outreach
        for Navajo communities and people; and
            (6) to provide a safe learning, working, and living
        environment for students, employees, and the public.

SEC. 5. FACILITIES AND CAPITAL PROJECTS.

    The College is authorized to expend money received pursuant to
section 7(c) to undertake all renovations and repairs to the College's
infrastructure, as identified by a strategic plan approved by the
College, and submitted to the Secretary.

SEC. 6. STATUS OF FUNDS.

    Funds provided under this Act to the College may be treated as non-
Federal, private funds of the College for purposes of any provision of
Federal law which requires that non-Federal or private funds of the
College be used in a project for a specific purpose.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are hereby authorized to be appropriated to
the College, for each fiscal year, such amounts as are necessary to pay
for the operation and maintenance of the College.
    (b) Budget Placement.--The Secretary shall fund the operation and
maintenance of the College separately from tribal colleges and
universities recognized and funded by the Tribally Controlled College
or University Assistance Act of 1978 (25 U.S.C. 1801 et seq.).
    (c) Facilities and Capital Projects.--In addition to amounts
appropriated under subsection (a), there are authorized to be
appropriated to carry out section 5, $15,000,000 for each of the first
5 fiscal years beginning after the date of enactment of this Act. Such
amounts may be funded through any one or more of the following
agencies:
            (1) the Department of Interior;
            (2) the Department of Education;
            (3) the Department of Heath and Human Services;
            (4) the Department of Housing and Urban Development;
            (5) the Department of Commerce;
            (6) the Environmental Protection Agency;
            (7) the Department of Veterans Affairs;
            (8) the Department of Agriculture;
            (9) the Department of Homeland Security;
            (10) the Department of Defense;
            (11) the Department of Labor; and
            (12) the Department of Transportation.

SEC. 8. SURVEY, STUDY, AND REPORT.

    (a) Information to Congress.--The Secretary shall conduct a
detailed survey and study of all capital projects and facility needs of
the College, and shall report the results of such survey and study to
Congress not later than October 31, 2009. Such report shall include any
recommendations or views submitted by the College and the Nation, and
shall include detailed recommendations by the Secretary.
    (b) Administrative Expenses.--Funds to carry out this section may
be drawn from general administrative appropriations to the Secretary.

SEC. 9. SUPERSESSION OF NAVAJO COMMUNITY COLLEGE ACT.

    This Act supersedes the Navajo Community College Act (Public Law
92-189; 25 U.S.C. 640a et seq.).

SEC. 10. CONTINUING ELIGIBILITY FOR OTHER FEDERAL FUNDS.

    Except as explicitly provided for in other Federal law, nothing in
this Act shall preclude the eligibility of the College to receive
Federal funding and resources under any program authorized under the
Higher Education Act of 1965, the Equity in Educational Land Grant
Status Act (Title V, Part C, of P.L. 103-382; 7 U.S.C. 301 note), or
any other applicable program for the benefit of institutions of higher
education, community colleges, or postsecondary educational
institutions.

Summary: Navajo Nation Higher Education Act of 2004 (sic) - Authorizes the Navajo Nation's Dine College to receive all Federal funding and resources under this Act and other laws for its operation, improvement, and growth. Authorizes the College to expend certain funds to undertake all renovations and repairs to its infrastructure, as identified by a strategic plan approved by it and submitted to the Secretary of the Interior. Allows funds to be treated as non-Federal, private funds of the College. Authorizes appropriations to the College for: (1) operation and maintenance, to be funded by the Secretary separately from funding institutions under the Tribally Controlled College or University Assistance Act of 1978. And (2) facilities and capital projects, to be funded through any of specified Federal agencies. Supersedes and repeals the Navajo Community College Act.

To fulfill the United States Government's trust responsibility to serve the educational needs of the Navajo people.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Summer Relief for Motorists Act of
2006''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that the States, with an average gas
tax of 20.8 cents per gallon, also possess the ability to provide
significant immediate relief to motorists by temporarily suspending
their own motor fuel excise taxes. While Congress believes such action
is appropriate, Congress also believes that the States should find
offsets for such temporary motor fuel excise tax suspensions in order
to maintain their commitment to transportation infrastructure
investment.

SEC. 3. SUSPENSION OF HIGHWAY FUEL TAXES.

    (a) Suspension of Highway Fuel Taxes on Gasoline, Diesel Fuel, and
Kerosene.--
            (1) In general.--Section 4081 of the Internal Revenue Code
        of 1986 (relating to imposition of tax on gasoline, diesel
        fuel, and kerosene) is amended by adding at the end the
        following new subsection:
    ``(f) Suspension of Taxes on Gasoline, Diesel Fuel, and Kerosene.--
            ``(1) In general.--During the suspension period, each rate
        of tax referred to in paragraph (2) shall be reduced to zero
        cents per gallon.
            ``(2) Rates of tax.--The rates of tax referred to in this
        paragraph are the rates of tax otherwise applicable under--
                    ``(A) clauses (i) and (iii) of subsection (a)(2)(A)
                (relating to gasoline, diesel fuel, and kerosene),
                determined after application of subsection (a)(2)(B)
                and without regard to subsection (a)(2)(C), and
                    ``(B) paragraph (1) of section 4041(a) (relating to
                diesel fuel and kerosene) with respect to fuel sold for
                use or used in a diesel-powered highway vehicle.
            ``(3) Suspension period.--For purposes of this subsection,
        the term `suspension period' means the period beginning on May
        29, 2006 (or, if later, the date of the enactment of this
        subsection) and ending on September 4, 2006.
            ``(4) Maintenance of trust fund deposits.--In determining
        the amounts to be appropriated to the Highway Trust Fund under
        section 9503 and to the Leaking Underground Storage Tank Trust
        Fund under section 9508, an amount equal to the reduction in
        revenues to the Treasury by reason of this subsection shall be
        treated as taxes received in the Treasury under this section or
        section 4041.''.
            (2) Effective date.--The amendment made by this subsection
        shall take effect on the date of the enactment of this Act.
    (b) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before the tax suspension date, tax has been
                imposed under section 4081 of the Internal Revenue Code
                of 1986 on any highway motor fuel, and
                    (B) on such date such fuel is held by a dealer and
                has not been used and is intended for sale,
        there shall be credited or refunded (without interest) to the
        person who paid such tax (hereafter in this subsection referred
        to as the ``taxpayer'') an amount equal to the excess of the
        tax paid by the taxpayer over the tax which would be imposed on
        such fuel had the taxable event occurred on such date.
            (2) Time for filing claims.--No credit or refund shall be
        allowed or made under this subsection unless--
                    (A) claim therefor is filed with the Secretary of
                the Treasury before the date which is 6 months after
                the tax suspension date based on a request submitted to
                the taxpayer before the date which is 3 months after
                the tax suspension date by the dealer who held the
                highway motor fuel on such date, and
                    (B) the taxpayer has repaid or agreed to repay the
                amount so claimed to such dealer or has obtained the
                written consent of such dealer to the allowance of the
                credit or the making of the refund.
            (3) Exception for fuel held in retail stocks.--No credit or
        refund shall be allowed under this subsection with respect to
        any highway motor fuel in retail stocks held at the place where
        intended to be sold at retail.
            (4) Definitions.--For purposes of this subsection--
                    (A) Tax suspension date.--The term ``tax suspension
                date'' means the first day of the suspension period in
                effect under section 4081(f) of the Internal Revenue
                Code of 1986 (as added by subsection (a) of this
                section).
                    (B) Highway motor fuel.--The term ``highway motor
                fuel'' has the meaning given such term for purposes of
                subsection (c).
                    (C) Other terms.--The terms ``dealer'' and ``held
                by a dealer'' have the respective meanings given to
                such terms by section 6412 of such Code.
            (5) Certain rules to apply.--Rules similar to the rules of
        subsections (b) and (c) of section 6412 of such Code shall
        apply for purposes of this subsection.
    (c) Floor Stocks Tax.--
            (1) Imposition of tax.--In the case of any highway motor
        fuel which is held on the tax restoration date by any person,
        there is hereby imposed a floor stocks tax equal to the excess
        of the tax which would be imposed on such fuel had the taxable
        event occurred on such date over the tax (if any) previously
        paid (and not credited or refunded) on such fuel.
            (2) Liability for tax and method of payment.--
                    (A) Liability for tax.--The person holding highway
                motor fuel on the tax restoration date to which the tax
                imposed by paragraph (1) applies shall be liable for
                such tax.
                    (B) Method of payment.--The tax imposed by
                paragraph (1) shall be paid in such manner as the
                Secretary shall prescribe.
                    (C) Time for payment.--The tax imposed by paragraph
                (1) shall be paid on or before the 45th day after the
                tax restoration date.
            (3) Definitions.--For purposes of this subsection--
                    (A) Tax restoration date.--The term ``tax
                restoration date'' means the first day after the
                suspension period (as defined in section 4081(f) of the
                Internal Revenue Code of 1986).
                    (B) Highway motor fuel.--The term ``highway motor
                fuel'' means any liquid on which tax would have been
                imposed under section 4081 of the Internal Revenue Code
                of 1986 during the suspension period in effect under
                section 4081(f) of such Code but for the amendments
                made by subsection (a).
                    (C) Held by a person.--A highway motor fuel shall
                be considered as held by a person if title thereto has
                passed to such person (whether or not delivery to the
                person has been made).
                    (D) Secretary.--The term ``Secretary'' means the
                Secretary of the Treasury or the Secretary's delegate.
            (4) Exception for exempt uses.--The tax imposed by
        paragraph (1) shall not apply to any highway motor fuel held by
        any person exclusively for any use to the extent a credit or
        refund of the tax is allowable for such use.
            (5) Exception for certain amounts of fuel.--
                    (A) In general.--No tax shall be imposed by
                paragraph (1) on any highway motor fuel held on the tax
                restoration date by any person if the aggregate amount
                of such highway motor fuel held by such person on such
                date does not exceed 2,000 gallons. The preceding
                sentence shall apply only if such person submits to the
                Secretary (at the time and in the manner required by
                the Secretary) such information as the Secretary shall
                require for purposes of this subparagraph.
                    (B) Exempt fuel.--For purposes of subparagraph (A),
                there shall not be taken into account any highway motor
                fuel held by any person which is exempt from the tax
                imposed by paragraph (1) by reason of paragraph (4).
                    (C) Controlled groups.--For purposes of this
                subsection--
                            (i) Corporations.--
                                    (I) In general.--All persons
                                treated as a controlled group shall be
                                treated as 1 person.
                                    (II) Controlled group.--The term
                                ``controlled group'' has the meaning
                                given to such term by subsection (a) of
                                section 1563 of such Code; except that
                                for such purposes the phrase ``more
                                than 50 percent'' shall be substituted
                                for the phrase ``at least 80 percent''
                                each place it appears in such
                                subsection.
                            (ii) Nonincorporated persons under common
                        control.--Under regulations prescribed by the
                        Secretary, principles similar to the principles
                        of subparagraph (A) shall apply to a group of
                        persons under common control if 1 or more of
                        such persons is not a corporation.
            (6) Other laws applicable.--All provisions of law,
        including penalties, applicable with respect to the taxes
        imposed by section 4081 of such Code shall, insofar as
        applicable and not inconsistent with the provisions of this
        subsection, apply with respect to the floor stock taxes imposed
        by paragraph (1) to the same extent as if such taxes were
        imposed by such section.

SEC. 4. SUSPENSION OF ROYALTY RELIEF.

    (a) New Leases.--
            (1) Requirement.--The Secretary of the Interior (referred
        to in this title as the ``Secretary'') shall suspend the
        application of any provision of Federal law under which a
        person would otherwise be provided relief from a requirement to
        pay a royalty for the production of oil or natural gas from
        Federal land (including submerged land) occurring on or after
        the date of enactment of this Act during a period in which--
                    (A) for the production of oil, the average price of
                crude oil in the United States during the 4-week period
                immediately preceding the suspension is greater than
                $35.86 per barrel; and
                    (B) for the production of natural gas, the average
                wellhead price of natural gas in the United States
                during the 4-week period immediately preceding the
                suspension is greater than $4.48 per 1,000 cubic feet.
            (2) Determination of average prices.--For purposes of
        paragraph (1), the Secretary shall determine average prices,
        taking into consideration the most recent data reported by the
        Energy Information Administration.
    (b) Renegotiation of Existing Leases.--
            (1) Requirement.--The Secretary shall, to the maximum
        extent practicable, renegotiate each lease authorizing
        production of oil or natural gas on Federal land (including
        submerged land) issued by the Secretary before the date of the
        enactment of this Act as the Secretary determines to be
        necessary to modify the terms of the lease to ensure that a
        suspension of a requirement to pay royalties under the lease
        does not apply to production described in subsection (a)(1).
            (2) Failure to renegotiate and modify.--
                    (A) In general.--Beginning on the date that is 1
                year after the date of enactment of this Act, a lessee
                that does not renegotiate a lease described in
                paragraph (1) in accordance with that paragraph shall
                not be eligible to enter into a new lease authorizing
                production of oil or natural gas on Federal land
                (including submerged land).
                    (B) Transfers.--A lessee shall not be eligible to
                obtain by sale or other transfer any lease described in
                paragraph (1) issued before the date of enactment of
                this Act, unless the lessee--
                            (i) renegotiates the lease; and
                            (ii) enters into an agreement with the
                        Secretary to modify the terms of the lease in
                        accordance with paragraph (1).

Summary: Summer Relief for Motorists Act of 2006 - Expresses the sense of Congress that states can assist motorists by temporarily suspending state gasoline taxes without jeopardizing their commitment to transportation infrastructure investment. Amends the Internal Revenue Code to suspend excise taxes on gasoline, diesel fuel, and kerosene from the enactment of this Act until September 4, 2006 . Provides for reimbursement to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund for tax revenues lost during the suspension period. Requires the Secretary of the Interior to suspend the application of any federal law exempting crude oil and natural gas producers from the payment of royalties for production activities on federal lands during periods when the average price of crude oil exceeds $35.86 per barrel and the average wellhead price of natural gas exceeds $4.48 per 1,000 cubic feet.

To amend the Internal Revenue Code of 1986 to suspend the highway fuels taxes, to provide for suspension of royalty relief, and for other purposes.


SECTION 1. EXCLUSION FROM GROSS INCOME FOR DISTRIBUTIONS FROM
              CONTROLLED FOREIGN CORPORATIONS WHICH ARE INVESTED IN
              CERTAIN PROPERTY LOCATED IN THE UNITED STATES OR USED TO
              HIRE NEW EMPLOYEES IN THE UNITED STATES.

    (a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to items specifically excluded
from gross income) is amended by redesignating section 137 as section
138 and by inserting after section 136 the following new section:

``SEC. 137. DISTRIBUTIONS FROM CONTROLLED FOREIGN CORPORATIONS WHICH
              ARE INVESTED IN CERTAIN UNITED STATES PROPERTY OR WHICH
              ARE USED TO HIRE NEW EMPLOYEES IN THE UNITED STATES.

    ``(a) Exclusion.--The gross income of a United States shareholder
of a controlled foreign corporation shall not include the amount of any
qualified distribution received during the taxable year by such
shareholder from such corporation.
    ``(b) Reinvestment Requirements.--
            ``(1) In general.--If, as of the close of the reinvestment
        period with respect to any distribution, the taxpayer fails to
        meet--
                    ``(A) the investment in property requirement of
                subsection (c), or
                    ``(B) the job creation requirement of subsection
                (d),
        then the taxpayer's tax imposed by this chapter for the taxable
        year in which such reinvestment period ends shall be increased
        by an amount equal to the recapture amount with respect to such
        distribution.
            ``(2) Recapture amount.--For purposes of paragraph (1), the
        term `recapture amount' means an amount equal to the sum of--
                    ``(A) the shortfall percentage of the reduction in
                the taxpayer's liability for tax under this chapter
                which resulted from excluding such distribution from
                gross income under subsection (a), plus
                    ``(B) the aggregate amount of interest (determined
                in the manner provided in subsection (e)(4)) on the
                amount determined under subparagraph (A).
            ``(3) Shortfall percentage.--For purposes of paragraph (2),
        the term `shortfall percentage' means the greater of--
                    ``(A) the investment in property shortfall
                percentage, or
                    ``(B) the job creation shortfall percentage.
            ``(4) Investment in property shortfall percentage.--For
        purposes of paragraph (3), the term `investment in property
        shortfall percentage' means the percentage which--
                    ``(A) the excess (if any) of--
                            ``(i) an amount equal to 50 percent of the
                        distribution involved, over
                            ``(ii) the amount of qualified investment
                        made during the reinvestment period which
                        allocable to such distribution, bears to
                    ``(B) the amount described in subparagraph (A)(i).
            ``(5) Job creation shortfall percentage.--For purposes of
        paragraph (3), the term `job creation shortfall percentage'
        means the percentage which--
                    ``(A) the excess (if any) of--
                            ``(i) an amount equal to 12.5 percent of
                        the distribution involved, over
                            ``(ii) the amount of new employee wages
                        paid during the last taxable year of the
                        reinvestment period allocable to such
                        distribution, bears to
                    ``(B) the amount described in subparagraph (A)(i).
    ``(c) Investment in Property Requirement.--For purposes of this
section--
            ``(1) Requirement.--A taxpayer meets the investment in
        property requirement of this subsection if the qualified
        investment of the taxpayer during the reinvestment period (to
        the extent not taken into account under this paragraph with
        respect to any prior distribution) is not less than 50 percent
        of the amount of the distribution.
            ``(2) Qualified investment.--The term `qualified
        investment' means the sum of--
                    ``(A) the aggregate bases of new qualified property
                placed in service by the taxpayer, and
                    ``(B) the aggregate cost of used qualified property
                placed in service by the taxpayer.
        Rules similar to the rules of subsections (b) and (c) of
        section 48 (as in effect on the day before the date of the
        enactment of the Revenue Reconciliation Act of 1990) shall
        apply for purposes of this paragraph.
            ``(3) Qualified property.--For purposes of paragraph (2),
        the term `qualified property' means--
                    ``(A) section 38 property (as defined by section
                48(a) as in effect on the day before the date of the
                enactment of the Omnibus Budget Reconciliation Act of
                1990), and
                    ``(B) real property (not described in subparagraph
                (A)) used as an integral part of manufacturing facility
                (as defined in section 144(a)(12)(C)).
        The term `qualified property' shall not include any property if
        the taxpayer is the lessor of the property.
            ``(4) Recapture if property disposed of, etc.--
                    ``(A) In general.--If any qualified property is
                disposed of, or otherwise ceases to be qualified
                property with respect to the taxpayer, before the close
                of the recapture period, then the taxpayer's tax
                imposed by this chapter for the taxable year in which
                such disposition or cessation occurs shall be increased
                by the sum of--
                            ``(i) the recapture percentage of such
                        property's share of the tax benefit under this
                        section, plus
                            ``(ii) the aggregate amount of interest
                        (determined in the manner provided in
                        subsection (e)(4)) on the amount determined
                        under subparagraph (A).
                    ``(B) Definitions.--For purposes of this
                paragraph--
                            ``(i) Recapture period.--The term
                        `recapture period' means, with respect to any
                        property, the period consisting of the first
                        full year after the property is placed in
                        service and--
                                    ``(I) the 2 succeeding full years
                                in the case of 3-year property (within
                                the meaning of section 168),
                                    ``(II) the 4 succeeding full years
                                in the case of section 38 property
                                other than 3-year property, and
                                    ``(III) the 9 succeeding full years
                                in the case of property referred to in
                                paragraph (2)(B).
                            ``(ii) Recapture percentage.--The term
                        `recapture percentage' means the percentage
                        determined under section 50(a)(1)(B); except
                        that--
                                    ``(I) in the case of 3-year
                                property, the percentage set forth in
                                clause (ii) of the table contained in
                                paragraph (1)(B) shall be 66 percent,
                                the percentage set forth in clause
                                (iii) of such table shall be 33
                                percent, and clauses (iv) and (v) of
                                such table shall not apply, and
                                    ``(II) in the case of property
                                referred to in paragraph (2)(B), the
                                percentage shall be 100 percent for the
                                first full year of the recapture period
                                and, for each full year thereafter,
                                shall be 10 percentage points less than
                                the recapture percentage for the prior
                                year.
                    ``(C) Property's share of tax benefit.--A
                property's share of the tax benefit under this section
                shall be--
                            ``(i) an amount which bears the same ratio
                        to the reduction in the taxpayer's liability
                        for tax under this chapter which resulted from
                        excluding the distribution involved from gross
                        income under subsection (a), as
                            ``(ii) the unadjusted basis of such
                        property bears to the aggregate unadjusted
                        bases of all qualified property placed in
                        service during the reinvestment period with
                        respect to such distribution.
    ``(d) Job Creation Requirement.--For purposes of this section--
            ``(1) Requirement.--A taxpayer meets the job creation
        requirement of this subsection if the new employee wages paid
        by the taxpayer during the last taxable year of the
        reinvestment period (to the extent not taken into account under
        this paragraph with respect to any prior distribution) is not
        less than 12.5 percent of the amount of the distribution.
            ``(2) New employee wages.--The term `new employee wages'
        means, with respect to any distribution, wages paid to
        employees--
                    ``(A) who are first hired after the date of such
                distribution, and
                    ``(B) whose employment represents an increase in
                the aggregate number of employees of the taxpayer in
                the United States.
            ``(3) Wages.--The term `wages' has the same meaning as when
        used in section 51.
            ``(4) Increased employment must be maintained for 4
        years.--
                    ``(A) In general.--If for any taxable year in the
                employment maintenance period (hereafter in this
                paragraph referred to as the `redetermination year')
                the new employee wages with respect to any distribution
                are less than the new employee wages for the last
                taxable year of the reinvestment period with respect to
                such distribution, the taxpayer's tax imposed by this
                chapter for the redetermination year shall be increased
                by an amount equal to the adjusted recapture amount
                with respect to such distribution.
                    ``(B) Adjusted recapture amount.--For purposes of
                subparagraph (A), the term `adjusted recapture amount'
                means an amount equal to the sum of--
                    ``(A) the excess (if any) of--
                            ``(i) the job creation shortfall percentage
                        of the reduction in the taxpayer's liability
                        for tax under this chapter which resulted from
                        excluding such distribution from gross income
                        under subsection (a) (determined for the
                        redetermination year), over
                            ``(ii) the amount determined under
                        subsection (b)(2)(A) (increased by any prior
                        increase in tax under this paragraph with
                        respect to such distribution), plus
                    ``(B) the aggregate amount of interest (determined
                in the manner provided in subsection (e)(4)) on the
                excess determined under subparagraph (A).
                    ``(C) Employment maintenance period.--For purposes
                of this paragraph, the term `employment maintenance
                period' means any period of 4 consecutive taxable years
                selected by the taxpayer so long as at least 1 of such
                taxable years is during the reinvestment period.
    ``(e) Other Definitions and Special Rules.--For purposes of this
section--
            ``(1) Qualified distribution.--The term `qualified
        distribution' means any distribution to the extent that the
        amount thereof reduces the amount includible in gross income
        under section 956A (relating to earnings invested in excess
        passive assets).
            ``(2) Reinvestment period.--The term `reinvestment period'
        means, with respect to any distribution received during a
        taxable year, such taxable year and the 4 succeeding taxable
        years.
            ``(3) United States shareholder; controlled foreign
        corporation.--The terms `United States shareholder' and
        `controlled foreign corporation' have the respective meanings
        given such terms by sections 951 and 957.
            ``(4) Rules relating to determination of interest.--
                    ``(A) In general.--The amount of interest referred
                to in subsections (b)(2), (c)(4), and (d)(3) for any
                taxable year shall be determined for the period--
                            ``(i) beginning on the due date for taxable
                        year during which the distribution involved was
                        made, and
                            ``(ii) ending on the due date for the
                        taxable year for which the increase in tax is
                        being determined,
                by using the rates and method applicable under section
                6621 for underpayment of tax for such period.
                    ``(B) Due date.--For purposes of subparagraph (A),
                the term `due date' means the date prescribed by law
                (determined without regard to extensions) for filing
                the return of the tax imposed by this chapter for the
                taxable year.
                    ``(C) Treatment of increase in tax attributable to
                interest as interest.--Any increase in tax imposed by
                this chapter for a taxable year by reason of this
                section to the extent attributable to an amount
                referred to in subsection (b)(2)(B), (c)(4)(A)(ii), or
                (d)(3)(B) shall be treated as interest paid under
                section 6601 on the due date for such taxable year.
            ``(5) Controlled Groups.--All taxpayers treated as a single
        employer under subsection (a) or (b) of section 52 shall be
        treated as a single taxpayer.
    ``(f) Basis Adjustment.--
            ``(1) In general.--For purposes of this subtitle, the basis
        of any qualified property placed in service during any taxable
        year for which an amount was excluded from gross income under
        this section shall be reduced by an amount equal to such
        property's share of such exclusion (determined under subsection
        (c)(3)).
            ``(2) Certain dispositions.--If there is an increase in tax
        by reason of this section for any taxable year, proper
        adjustments shall be made under regulations prescribed by the
        Secretary with respect to any property the basis of which was
        reduced under paragraph (1).''
    (b) Technical Amendment.--Subsection (a) of section 1016 of such
Code is amended by striking ``and'' at the end of paragraph (24), by
striking the period at the end of paragraph (25) and inserting ``,
and'', and by adding at the end thereof the following new paragraph:
            ``(26) to the extent provided in section 137(f).''
    (c) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by striking the last
item and inserting the following new items:

                              ``Sec. 137. Distributions from controlled
                                        foreign corporations which are
                                        invested in certain United
                                        States property or which are
                                        used to hire new employees in
                                        the United States.
                              ``Sec. 138. Cross references to other
                                        Acts.''
    (d) Effective Date.--The amendments made by this section shall
apply to distributions received after the date of the enactment of this
Act in taxable years ending after such date.

Summary: Amends the Internal Revenue Code to exclude from the gross income of shareholders of controlled foreign corporations the amount of any distribution received from such corporation, if the shareholder meets the requirements for reinvestment in US property or the creation of domestic jobs.

To amend the Internal Revenue Code of 1986 to provide that distributions from a controlled foreign corporation to a United States shareholder shall be excluded from gross income if at least a portion of the distribution is invested in certain property located in the United States and in the employment of new employees in the United States.


to provide for annexing the
        Hawaiian Islands to the United States of July 7, 1898 (30 Stat.
        750), and which were later transferred to the State of Hawaii
        in the Act entitled ``An Act to provide for the admission of
        the State of Hawaii into the Union'' approved March 18, 1959
        (Public Law 86-3;
        73 Stat. 4).
            (4) Indigenous, native people.--The term ``indigenous,
        native people'' means the lineal descendants of the aboriginal,
        indigenous, native people of the United States.
            (5) Interagency coordinating group.--The term ``Interagency
        Coordinating Group'' means the Native Hawaiian Interagency
        Coordinating Group established under section 5.
            (6) Native hawaiian.--
                    (A) Prior to the recognition by the United States
                of the Native Hawaiian governing entity, the term
``Native Hawaiian'' means the indigenous, native people of Hawaii who
are the direct lineal descendants of the aboriginal, indigenous, native
people who resided in the islands that now comprise the State of Hawaii
on or before January 1, 1893, and who occupied and exercised
sovereignty in the Hawaiian archipelago, including the area that now
constitutes the State of Hawaii, and includes all Native Hawaiians who
were eligible in 1921 for the programs authorized by the Hawaiian Homes
Commission Act (42 Stat. 108, chapter 42) and their lineal descendants.
                    (B) Following the recognition by the United States
                of the Native Hawaiian governing entity, the term
                ``Native Hawaiian'' shall have the meaning given to
                such term in the organic governing documents of the
                Native Hawaiian governing entity.
            (7) Native hawaiian governing entity.--The term ``Native
        Hawaiian governing entity'' means the governing entity
        organized by the Native Hawaiian people.
            (8) Secretary.--The term ``Secretary'' means the Secretary
        of the Interior.

SEC. 3. UNITED STATES POLICY AND PURPOSE.

    (a) Policy.--The United States reaffirms that--
            (1) Native Hawaiians are a unique and distinct, indigenous,
        native people, with whom the United States has a political and
        legal relationship;
            (2) the United States has a special trust relationship to
        promote the welfare of Native Hawaiians;
            (3) Congress possesses the authority under the Constitution
        to enact legislation to address the conditions of Native
        Hawaiians and has exercised this authority through the
        enactment of--
                    (A) the Hawaiian Homes Commission Act, 1920 (42
                Stat. 108, chapter 42);
                    (B) the Act entitled ``An Act to provide for the
                admission of the State of Hawaii into the Union'',
                approved March 18, 1959 (Public Law 86-3; 73 Stat. 4);
                and
                    (C) more than 150 other Federal laws addressing the
                conditions of Native Hawaiians;
            (4) Native Hawaiians have--
                    (A) an inherent right to autonomy in their internal
                affairs;
                    (B) an inherent right of self-determination and
                self-governance; and
                    (C) the right to reorganize a Native Hawaiian
                governing entity; and
            (5) the United States shall continue to engage in a process
        of reconciliation and political relations with the Native
        Hawaiian people.
    (b) Purpose.--It is the intent of Congress that the purpose of this
Act is to provide a process for the recognition by the United States of
a Native Hawaiian governing entity for purposes of continuing a
government-to-government relationship.

SEC. 4. ESTABLISHMENT OF THE UNITED STATES OFFICE FOR NATIVE HAWAIIAN
              RELATIONS.

    (a) In General.--There is established within the Office of the
Secretary the United States Office for Native Hawaiian Relations.
    (b) Duties of the Office.--The United States Office for Native
Hawaiian Relations shall--
            (1) effectuate and coordinate the trust relationship
        between the Native Hawaiian people and the United States, and
        upon the recognition of the Native Hawaiian governing entity by
        the United States, between the Native Hawaiian governing entity
        and the United States through the Secretary, and with all other
        Federal agencies;
            (2) continue the process of reconciliation with the Native
        Hawaiian people, and upon the recognition of the Native
        Hawaiian governing entity by the United States, continue the
        process of reconciliation with the Native Hawaiian governing
        entity;
            (3) fully integrate the principle and practice of
        meaningful, regular, and appropriate consultation with the
        Native Hawaiian governing entity by providing timely notice to,
        and consulting with the Native Hawaiian people and the Native
        Hawaiian governing entity prior to taking any actions that may
        have the potential to significantly affect Native Hawaiian
        resources, rights, or lands;
            (4) consult with the Interagency Coordinating Group, other
        Federal agencies, and with relevant agencies of the State of
        Hawaii on policies, practices, and proposed actions affecting
        Native Hawaiian resources, rights, or lands; and
            (5) prepare and submit to the Committee on Indian Affairs
        and the Committee on Energy and Natural Resources of the
        Senate, and the Committee on Resources of the House of
        Representatives an annual report detailing the activities of
        the Interagency Coordinating Group that are undertaken with
        respect to the continuing process of reconciliation and to
        effect meaningful consultation with the Native Hawaiian
        governing entity and providing recommendations for any
        necessary changes to existing Federal statutes or regulations
        promulgated under the authority of Federal law.

SEC. 5. NATIVE HAWAIIAN INTERAGENCY COORDINATING GROUP.

    (a) Establishment.--In recognition of the fact that Federal
programs authorized to address the conditions of Native Hawaiians are
largely administered by Federal agencies other than the Department of
the Interior, there is established an interagency coordinating group to
be known as the ``Native Hawaiian Interagency Coordinating Group''.
    (b) Composition.--The Interagency Coordinating Group shall be
composed of officials, to be designated by the President, from--
            (1) each Federal agency that administers Native Hawaiian
        programs, establishes or implements policies that affect Native
        Hawaiians, or whose actions may significantly or uniquely
        impact on Native Hawaiian resources, rights, or lands; and
            (2) the United States Office for Native Hawaiian Relations
        established under section 4.
    (c) Lead Agency.--The Department of the Interior shall serve as the
lead agency of the Interagency Coordinating Group, and meetings of the
Interagency Coordinating Group shall be convened by the lead agency.
    (d) Duties.--The responsibilities of the Interagency Coordinating
Group shall be--
            (1) the coordination of Federal programs and policies that
        affect Native Hawaiians or actions by any agency or agencies of
        the Federal Government which may significantly or uniquely
        impact on Native Hawaiian resources, rights, or lands;
            (2) to assure that each Federal agency develops a policy on
        consultation with the Native Hawaiian people, and upon
        recognition of the Native Hawaiian governing entity by the
        United States, consultation with the Native Hawaiian governing
        entity; and
            (3) to assure the participation of each Federal agency in
        the development of the report to Congress authorized in section
        4(b)(5).

SEC. 6. PROCESS FOR THE RECOGNITION OF THE NATIVE HAWAIIAN GOVERNING
              ENTITY.

    (a) Recognition of the Native Hawaiian Governing Entity.--The right
of the Native Hawaiian people to organize for their common welfare and
to adopt appropriate organic governing documents is hereby recognized
by the United States.
    (b) Process for Recognition.--
            (1) Submittal of organic governing documents.--Following
        the organization of the Native Hawaiian governing entity, the
        adoption of organic governing documents, and the election of
        officers of the Native Hawaiian governing entity, the duly
        elected officers of the Native Hawaiian governing entity shall
        submit the organic governing documents of the Native Hawaiian
        governing entity to the Secretary.
            (2) Certifications.--
                    (A) In general.--Within 90 days of the date that
                the duly elected officers of the Native Hawaiian
                governing entity submit the organic governing documents
                to the Secretary, the Secretary shall certify that the
                organic governing documents--
                            (i) establish the criteria for citizenship
                        in the Native Hawaiian governing entity;
                            (ii) were adopted by a majority vote of the
                        citizens of the Native Hawaiian governing
                        entity;
                            (iii) provide for the exercise of
                        governmental authorities by the Native Hawaiian
                        governing entity;
                            (iv) provide for the Native Hawaiian
                        governing entity to negotiate with Federal,
                        State, and local governments, and other
                        entities;
                            (v) prevent the sale, disposition, lease,
                        or encumbrance of lands, interests in lands, or
                        other assets of the Native Hawaiian governing
                        entity without the consent of the Native
                        Hawaiian governing entity;
                            (vi) provide for the protection of the
                        civil rights of the citizens of the Native
                        Hawaiian governing entity and all persons
                        subject to the authority of the Native Hawaiian
                        governing entity, and ensure that the Native
                        Hawaiian governing entity exercises its
                        authority consistent with the requirements of
                        section 202 of the Act of April 11, 1968 (25
                        U.S.C. 1302); and
                            (vii) are consistent with applicable
                        Federal law and the special trust relationship
                        between the United States and the indigenous
                        native people of the United States.
                    (B) By the secretary.--Within 90 days of the date
                that the duly elected officers of the Native Hawaiian
                governing entity submit the organic governing documents
                to the Secretary, the Secretary shall certify that the
                State of Hawaii supports the recognition of the Native
                Hawaiian governing entity by the United States as
                evidenced by a resolution or act of the Hawaii State
                legislature.
                    (C) Resubmission in case of noncompliance.--
                            (i) Resubmission by the secretary.--If the
                        Secretary determines that the organic governing
                        documents do not address the criteria described
                        in subparagraph (A) or that the organic
                        governing documents, or any part thereof, are
                        not consistent with other applicable Federal
                        law, the Secretary shall resubmit the organic
                        governing documents to the duly elected
                        officers of the Native Hawaiian governing
                        entity along with a justification for each of
                        the Secretary's findings as to why the
                        provisions are not consistent with such law.
                            (ii) Amendment and resubmission by the
                        native hawaiian governing entity.--If the
                        organic governing documents are resubmitted to
                        the duly elected officers of the Native
                        Hawaiian governing entity by the Secretary
                        under clause (i), the duly elected officers of
                        the Native Hawaiian governing entity shall--
                                    (I) amend the organic governing
                                documents to ensure that the documents
                                comply with applicable Federal law and
                                address the criteria described in
                                subparagraph (A); and
                                    (II) resubmit the amended organic
                                governing documents to the Secretary
                                for certification in accordance with
                                the requirements of this paragraph.
                    (D) Certifications deemed made.--The certifications
                authorized in subparagraph (A) shall be deemed to have
                been made if the Secretary has not acted within 90 days
                of the date that the duly elected officers of the
                Native Hawaiian governing entity have submitted the
                organic governing documents of the Native Hawaiian
                governing entity to the Secretary.
            (3) Federal recognition.--Notwithstanding any other
        provision of law, upon the election of the officers of the
        Native Hawaiian governing entity and the certifications by the
        Secretary required under paragraph (2), the United States
        hereby extends Federal recognition to the Native Hawaiian
        governing entity as the representative governing body of the
        Native Hawaiian people.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated such sums as may be
necessary to carry out the activities authorized in this Act.

SEC. 8. REAFFIRMATION OF DELEGATION OF FEDERAL
              AUTHORITY; NEGOTIATIONS.

    (a) Reaffirmation.--The delegation by the United States of
authority to the State of Hawaii to address the conditions of the
indigenous, native people of Hawaii contained in the Act entitled ``An
Act to provide for the admission of the State of Hawaii into the
Union'' approved March 18, 1959 (Public Law 86-3; 73 Stat. 5) is hereby
reaffirmed.
    (b) Negotiations.--Upon the Federal recognition of the Native
Hawaiian governing entity by the United States, the United States is
authorized to negotiate and enter into an agreement with the State of
Hawaii and the Native Hawaiian governing entity regarding the transfer
of lands, resources, and assets dedicated to Native Hawaiian use to the
Native Hawaiian governing entity. Nothing in this Act is intended to
serve as a settlement of any claims against the United States.

SEC. 9. APPLICABILITY OF CERTAIN FEDERAL LAWS.

    (a) Indian Gaming Regulatory Act.--Nothing contained in this Act
shall be construed as an authorization for the Native Hawaiian
governing entity to conduct gaming activities under the authority of
the Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.).
    (b) Bureau of Indian Affairs.--Nothing contained in this Act shall
be construed as an authorization for eligibility to participate in any
programs and services provided by the Bureau of Indian Affairs for any
persons not otherwise eligible for such programs or services.

SEC. 10. SEVERABILITY.

    In the event that any section or provision of this Act is held
invalid, it is the intent of Congress that the remaining sections or
provisions of this Act shall continue in full force and effect.

Summary: Establishes the United States Office for Native Hawaiian Relations within the Office of the Secretary of the Interior. Establishes the Native Hawaiian Interagency Coordinating Group to: (1) coordinate Federal programs and policies or actions that may significantly or uniquely affect Native Hawaiian resources, rights, or lands. (2) assure that each Federal agency develops a policy on consultation with Native Hawaiians. And (3) assure the participation of such agencies in the development of an annual report to Congress. Recognizes the right of the Native Hawaiian people to adopt organic governing documents, to be submitted to the Secretary. Requires the Secretary to certify that: (1) such documents meet specified certifications. And (2) the State of Hawaii supports the recognition of such Native Hawaiian government as evidenced by a resolution or act of the Hawaiian State legislature. Extends Federal recognition to such government as the representative governing body of the Native Hawaiian people upon election of officers and certification by the Secretary. Authorizes appropriations. Reaffirms the delegation by the United States of authority to the State of Hawaii to address the conditions of the indigenous, native people of Hawaii. Permits the United States, upon Federal recognition of the Native Hawaiian government, to enter into an agreement with the State and such government regarding the transfer of lands, resources, and assets dedicated to Native Hawaiian use.

To express the policy of the United States regarding the United States' relationship with Native Hawaiians, to provide a process for the reorganization of a Native Hawaiian government and the recognition by the United States of the Native Hawaiian government, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Continuity of Electric Capacity
Resources Act''.

SEC. 2. DIVERSITY OF SUPPLY AND CONTINUITY OF ELECTRIC CAPACITY
              RESOURCES.

    Title II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:

``SEC. 224. DIVERSITY OF SUPPLY AND CONTINUITY OF ELECTRIC CAPACITY
              RESOURCES.

    ``(a) Definitions.--In this subsection:
            ``(1) Bulk-power system; transmission organization.--The
        terms `bulk-power system' and `transmission organization' have
        the meaning given the terms in section 215.
            ``(2) Electric capacity resource.--The term `electric
        capacity resource' means an electric generating resource, as
        measured by the maximum load-carrying ability of the resource,
        exclusive of station use and planned, unplanned, or other
        outage or derating.
            ``(3) Regional reliability coordinator.--The term `regional
        reliability coordinator' has the meaning given the term
        `reliability coordinator' (as defined by the Electric
        Reliability Organization).
    ``(b) Electric Capacity Resources Report.--
            ``(1) Notice.--Not later than 14 days after the date of
        enactment of this section, the Commission shall submit to each
        transmission organization with a tariff on file with the
        Commission that includes provisions addressing the procurement
        of electric capacity resources notice that the transmission
        organization is required to file with the Commission a report
        in accordance with paragraph (2).
            ``(2) Report.--Not later than 180 days after the date on
        which a transmission organization receives a notice under
        paragraph (1), the transmission organization shall submit to
        the Commission a report that--
                    ``(A)(i) identifies electric capacity resources
                that are available to the transmission organization as
                of the date of the report; and
                    ``(ii) describes the fuel sources and operational
                characteristics of each electric capacity resource
                identified under clause (i);
                    ``(B) evaluates, using generally accepted metrics,
                the financial health, viability, and projected
                remaining years of service of the available electric
                capacity resources identified under subparagraph
                (A)(i);
                    ``(C) identifies--
                            ``(i) over the short- and long-term periods
                        in the planning cycle of the transmission
                        organization, announced and projected
                        retirements of the available electric capacity
                        resources;
                            ``(ii) the projected future needs of the
                        transmission organization for electric capacity
                        resources; and
                            ``(iii) the availability of transmission
                        facilities and transmission support services
                        necessary to provide for the transmission
                        organization reasonable assurances of essential
                        reliability services, including adequate
                        voltage support;
                    ``(D) assesses the current and projected status of
                the reliability of the elements of the bulk-power
                system under the control of the transmission
                organization, over the short- and long-term periods in
                the planning cycle of the transmission organization
                (including the current and projected status of electric
                capacity resources), as determined by the regional
                reliability coordinator that has been designated by the
                Electric Reliability Organization to have oversight
                over the bulk-power system elements under the control
                of the transmission organization; and
                    ``(E) prior to the submission of the report, has
                been made available to members of the transmission
                organization and to the public for comment.
    ``(c) Tariff Amendments.--
            ``(1) In general.--Not later than 180 days after the date
        on which the Commission receives a report submitted under
        subsection (b), the transmission organization that submitted
        the report shall file with the Commission--
                    ``(A) 1 or more tariff amendments that would
                achieve each of the objectives described in paragraph
                (2) with respect to the transmission organization; and
                    ``(B) supporting information that demonstrates the
                manner in which the amendments would achieve each of
                those objectives, taking into account the report
                submitted under subsection (b)(2).
            ``(2) Objectives.--The objectives referred to in paragraph
        (1) are the following:
                    ``(A) A diverse generation portfolio and the
                availability of transmission facilities and
                transmission support services necessary to provide
                reasonable assurances of a continuous supply of
                electricity for customers of the transmission
                organization at the proper voltage and frequency.
                    ``(B) An enhanced opportunity for self-supply of
                electric capacity resources by electric cooperatives,
                Federal power marketing agencies, and State utilities
                with a service obligation (as those terms are defined
                in section 217(a)), with the term `self-supply' to be
                defined in the supporting information filed under
                paragraph (1).
                    ``(C) A reasonable assurance of short- and long-
                term reliability, with the terms `short-term
                reliability' and `long-term reliability' to be defined
                by the applicable regional reliability coordinator
                referred to in subsection (b)(2)(D).
                    ``(D) A reasonable likelihood of prudent investment
                in, and adequate fuel supply for, existing and future
                electric capacity resources over the short- and long-
                term periods in the planning cycle identified in the
                applicable report submitted under subsection (b)(2).''.

SEC. 3. ACTIVITIES CARRIED OUT UNDER AN AUTHORIZATION DURING WAR OR
              EMERGENCY.

    Section 202(c) of the Federal Power Act (16 U.S.C. 824a(c)) is
amended--
            (1) in the first sentence, by striking ``(c) During'' and
        inserting the following:
    ``(c) Authorization During War or Emergency.--
            ``(1) In general.--During''; and
            (2) by adding at the end the following:
            ``(2) No liability.--Any person subject to an order issued
        under this subsection shall not be liable for actions carried
        out in compliance with the order.''.

Summary: Continuity of Electric Capacity Resources Act This bill amends the Federal Power Act to require the Federal Energy Regulatory Commission (FERC) to notify transmission organizations that they must file an electric capacity resources report if they have a tariff on file that addresses the procurement of electric capacity resources. Report contents must: identify electric capacity resources available to the transmission organization. Describe the fuel sources and operational characteristics of each electric capacity resource. Evaluate the financial health, viability, and projected remaining years of service of these available electric capacity resources. And assess the current and projected reliability of the elements of the bulk-power system under the transmission organization's control. Subsequent to this report, transmission organizations must also submit tariff amendments that would achieve specified objectives, including a diverse generation portfolio and the availability of transmission facilities and transmission support services that would provide a continuous supply of electricity for customers. The bill shields any person from liability for actions taken to comply with a FERC order for temporary connections and exchanges of facilities during war or an energy emergency.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Urban Entrepreneurial Opportunities
Act''.

SEC. 2. TAX INCENTIVES FOR URBAN ENTREPRENEURIAL OPPORTUNITY FINANCING
              SUBSIDIARIES.

    (a) General Rule.--Part VIII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to special deductions for
corporations) is amended by adding at the end thereof the following new
subpart:

   ``Subpart B--Tax Incentives for Urban Entrepreneurial Opportunity
                         Financing Subsidiaries

                              ``Sec. 251. Deduction for equity
                                        contributions to urban
                                        entrepreneurial opportunity
                                        financing subsidiaries.
                              ``Sec. 252. Overall limitation on
                                        deductions.
                              ``Sec. 253. Definitions and special
                                        rules.

``SEC. 251. DEDUCTION FOR EQUITY CONTRIBUTIONS TO URBAN ENTREPRENEURIAL
              OPPORTUNITY FINANCING SUBSIDIARIES.

    ``(a) General Rule.--In the case of a qualified contributing
corporation, there shall be allowed as a deduction an amount equal to
the equity contributions made by such corporation to an urban
entrepreneurial opportunity financing subsidiary of such corporation.
Such deduction shall be allowed for the taxable year of the
contributing corporation in which the equity contribution is used by
the subsidiary in making qualified enterprise zone business loans.
    ``(b) Limitation.--The amount allowed as a deduction under
subsection (a) to any qualified contributing corporation for any
taxable year shall not exceed the lesser of--
            ``(1) $10,000,000, or
            ``(2) the portion of the program limitation allocated to
        such corporation under section 252 to the extent the amount so
        allocated was not used in a prior taxable year.
    ``(c) Equity Contribution.--For purposes of this section, the term
`equity contribution' means--
            ``(1) any amount paid in cash for stock in an urban
        entrepreneurial opportunity financing subsidiary of the
        corporation if such stock is acquired at its original issuance,
        and
            ``(2) any contribution in cash to the capital of an urban
        entrepreneurial opportunity financing subsidiary of the
        corporation.
    ``(d) Recapture Provisions.--
            ``(1) Basis adjustment.--The adjusted basis of any stock
        held by a corporation in an urban entrepreneurial opportunity
        financing subsidiary of such corporation shall be reduced by
        the amount allowed as a deduction under subsection (a) in
        connection with the acquisition of such stock. No increase in
        the basis of any such stock shall be made on account of any
        contribution to the capital of such subsidiary for which a
        deduction is allowed under subsection (a).
            ``(2) Ordinary income recapture.--Any gain recognized on
        the sale or other disposition by a corporation of stock in an
        urban entrepreneurial opportunity financing subsidiary of such
        corporation shall be treated as ordinary income.
            ``(3) Certain events treated as dispositions.--If any urban
        entrepreneurial opportunity financing subsidiary of a
        corporation ceases to qualify as an urban entrepreneurial
        opportunity financing subsidiary with respect to such
        corporation, such corporation shall recognize gain as if it
        sold its stock in such subsidiary for an amount equal to its
        fair market value immediately before such cessation.

``SEC. 252. OVERALL LIMITATION ON DEDUCTIONS.

    ``(a) General Rule.--The Secretary of Housing and Urban Development
shall allocate the program limitation among the qualified contributing
corporations submitting applications to such Secretary for allocations
under this section.
    ``(b) Program Limitation.--The program limitation is $250,000,000.
    ``(c) Method of Making Allocations.--The Secretary of Housing and
Urban Development shall prescribe regulations setting forth the
procedures for making allocations under this section. Such procedures
shall--
            ``(1) include the criteria used in selecting the
        corporations to which the allocations are made, and
            ``(2) be designed to ensure a reasonable availability, on a
        geographical basis, of the benefits of this subpart.

``SEC. 253. DEFINITIONS AND SPECIAL RULES.

    ``(a) Qualified Contributing Corporation.--For purposes of this
subpart, the term `qualified contributing corporation' means any
domestic corporation which is not a small business concern; except that
such term shall not include any corporation predominantly engaged in a
banking, insurance, finance, or similar business.
    ``(b) Urban Entrepreneurial Opportunity Financing Subsidiary.--For
purposes of this subpart, the term `urban entrepreneurial opportunity
financing subsidiary' means any domestic corporation--
            ``(1) all the stock of which (exclusive of directors'
        qualifying shares) is held directly by one qualified
        contributing corporation, and
            ``(2) all the activities of which consist of--
                    ``(A) making qualified enterprise zone business
                loans,
                    ``(B) providing management, administrative,
                consulting, and other support services to qualified
                small business concerns to which such corporation has
                made qualified enterprise zone business loans, and
                    ``(C) making temporary investments (for a period
                not exceeding 6 months) of amounts being held for
                purposes of making qualified enterprise zone business
                loans.
    ``(c) Qualified Enterprise Zone Business Loans.--For purposes of
this subpart, the term `qualified enterprise zone business loan' means
any loan made by an urban entrepreneurial opportunity financing
subsidiary if--
            ``(1) such loan is made to a qualified small business
        concern and such concern is not related (within the meaning of
        section 267(b) or 707(b)) to such subsidiary or the qualified
        contributing corporation holding such subsidiary,
            ``(2) the proceeds of such loan are used by such qualified
        small business concern in the active conduct of a trade or
        business in an urban enterprise zone,
            ``(3) the urban entrepreneurial opportunity financing
        subsidiary provides (without charge) substantial qualified
        services to the qualified small business concern in connection
        with such loan, except that such small business concern may
        waive the requirements of this paragraph, and
            ``(4) the interest on such loan does not exceed--
                    ``(A) in the case of a secured loan, the prime rate
                plus 3 percentage points, or
                    ``(B) in the case of any other loan, the prime rate
                plus 8 percentage points.
    ``(d) Qualified Small Business Concern.--For purposes of this
subpart, the term `qualified small business concern' means any person
if--
            ``(1) such person is a small business concern within the
        meaning of section 3 of the Small Business Act (15 U.S.C. 632),
        and
            ``(2) substantially all of the activities of such person
        are within an urban enterprise zone.
    ``(e) Other Definitions and Special Rules.--
            ``(1) Urban enterprise zone.--For purposes of this subpart,
        the term `urban enterprise zone' means--
                    ``(A) any urban area designated as an enterprise
                zone under any State law program, and
                    ``(B) any urban area designated as an enterprise
                zone under Federal law.
            ``(2) Substantial qualified services.--For purposes of this
        subpart, the term `substantial qualified services' means, with
        respect to any loan made by an urban entrepreneurial
        opportunity financing subsidiary, any management,
        administrative, consulting, or other support services provided
        to the borrower under such loan, but only if the amount of such
        services, to be provided during the first year such loan is
        outstanding involve at least 1,000 man-hours for each $100,000
        principal amount of such loan.
            ``(3) Prime rate.--For purposes of this subpart--
                    ``(A) In general.--The term `prime rate' means the
                average predominant prime rate quoted by commercial
                banks to large businesses, as determined by the Board
                of Governors of the Federal Reserve System.
                    ``(B) When determination made.--
                            ``(i) Except as provided in clause (ii),
                        the determination of the prime rate shall be
                        made as of the time the loan is made.
                            ``(ii) If the loan is a variable rate loan,
                        the prime rate taken into account with respect
                        to any change in rate shall be determined as of
                        the time such change takes effect.
            ``(4) Treatment of controlled groups.--Any group of
        corporations treated as a single employer under section 52 (a)
        or (b) shall be treated as one corporation for purposes of this
        subpart.
    ``(f) Employees of Borrower May Be Taken Into Account for Certain
Purposes.--If--
            ``(1) a qualified contributing corporation has provided
        financing through an urban entrepreneurial opportunity
        financing subsidiary to any qualified small business concern,
        and
            ``(2) such qualified small business concern designates such
        subsidiary as its primary lender,
such qualified contributing corporation may treat the employees of such
qualified small business concern as its own employees for purposes of
determining which such qualified contributing corporation is in
compliance with the requirements of any Federal law. A qualified small
business concern may designate only 1 urban entrepreneurial opportunity
financing subsidiary is its primary lender for any period.''
    (b) Clerical Amendment.--Part VIII of subchapter B of chapter 1 of
such Code is amended by inserting after the part heading the following:

                              ``Subpart A--General provisions.
                              ``Subpart B--Tax incentives for urban
                                        entrepreneurial opportunity
                                        financing subsidiaries.

                   ``Subpart A--General Provisions''.

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

Summary: Urban Entrepreneurial Opportunities Act - Amends the Internal Revenue Code to allow a deduction for equity contributions made by a corporation to an urban entrepreneurial opportunity financing subsidiary of such corporation. Requires the subsidiary to use such contribution in making qualified enterprise zone business loans to qualified small business concerns. Establishes an overall program limitation among the contributing corporations to be allocated by the Secretary of Housing and Urban Development.

Urban Entrepreneurial Opportunities Act


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Nuclear Facility and Material
Security Act of 2008''.

SEC. 2. NUCLEAR REACTOR DESIGNS REGARDING AIRCRAFT IMPACT.

    (a) Final Rule.--Not later than 1 year after the date of enactment
of this Act, the Nuclear Regulatory Commission shall issue a final rule
requiring all commercial nuclear power reactors approved for
construction after such date of enactment to be designed to withstand a
large commercial aircraft impact. Such rule shall address the
structural response, shock and vibration effects, and fire effects of
the impact.
    (b) Required Design Features.--Such final rule shall require design
features to ensure that--
            (1) important safety functions will operate for a
        sufficient period of time after the impact of a large
        commercial aircraft so that the unit can be safely shut down
        and maintained in safe shutdown condition; and
            (2) the consequences of the impact will not result in a
        release of radioactive materials to the environment that causes
        a member of the surrounding community to receive a dose that
        triggers an evacuation recommendation, consistent with the
        levels established by the Environmental Protection Agency and
        the Public Protection Action Guide Limit for Evacuation and
        Shelter (EPA 400-R-92-001).

SEC. 3. SPENT FUEL SECURITY ENHANCEMENTS.

    (a) Storage Rule.--Not later than 18 months after the date of
enactment of this Act, the Nuclear Regulatory Commission shall issue a
final rule requiring--
            (1) the configuration of spent fuel assemblies stored in
        spent fuel pools to minimize the risk of fire in the event the
        spent fuel pools are drained during an accident or terrorist
        attack;
            (2) spent nuclear fuel to be transferred from a spent fuel
        pool into dry cask storage at the earliest possible time that
        the heat load of the spent fuel material allows for such
        transfer to occur safely; and
            (3) mitigation features such as water-spray systems to cool
        spent fuel in the event spent fuel pools are drained during an
        accident or terrorist attack.
    (b) Independent Installation Security.--
            (1) Rulemaking requirement.--Not later than 1 year after
        the date of enactment of this Act, the Nuclear Regulatory
        Commission shall issue an Independent Spent Fuel Storage
        Installation security final rule that makes such installations
        subject to the security evaluation requirements of section 170D
        of the Atomic Energy Act of 1954 (42 U.S.C. 2210d).
            (2) Design basis threat.--The rule issued under paragraph
        (1) shall provide for incorporating Independent Spent Fuel
        Storage Installations into the design basis threat rule issued
        under section 170E of the Atomic Energy Act of 1954 (42 U.S.C.
        2210e).

SEC. 4. CONSIDERING THE RISK OF ACTS OF TERRORISM ON NUCLEAR
              FACILITIES.

    The Nuclear Regulatory Commission shall consider the likely
consequences of a potential terrorist attack in any review it is
required to undertake under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.).

SEC. 5. POTASSIUM IODIDE.

    (a) Repeal of Waiver Authority.--Section 127(f) of the Public
Health Security and Bioterrorism Preparedness and Response Act of 2002
(42 U.S.C. 300hh-12 note) is repealed.
    (b) Jurisdictional Authority.--The Secretary of Health and Human
Services shall exercise all Federal authority over the distribution of
potassium iodide as a medical prophylaxis for radiological exposure in
humans, including all activities under section 127 of the Public Health
Security and Bioterrorism Preparedness and Response Act of 2002 (42
U.S.C. 300hh-12 note).
    (c) NAS Studies.--Not later than June 30, 2011, and at least once
every 5 years thereafter, the Secretary of Health and Human Services
shall enter into an arrangement with the National Academy of Sciences
for studies on appropriate emergency response plans to nonroutine
releases of radioactive materials, including from nuclear power plants,
spent fuel storage facilities, radiological dispersal devices, and
improvised nuclear explosive devices. Such studies shall address
evacuation, sheltering, food interdiction, and medical prophylaxes for
radioiodine and other radioisotopes that are released in such events.
Such studies shall--
            (1) review relevant evacuations and food interdictions of
        the preceding five-year period for lessons learned;
            (2) identify the population that would be exposed by the
        release and evaluate the potential consequences of such
        exposure;
            (3) recommend best practices for emergency response to
        radiological releases; and
            (4) evaluate new research on medical prophylaxes for
        radioiodine and other radioisotopes released in such events and
        recommend whether additional medical prophylaxes should be
        procured for the Strategic National Stockpile or State and
        local stockpiles.
    (d) Secretary's Actions.--Based on the findings of the studies
conducted under subsection (c), the Secretary of Health and Human
Services shall--
            (1) consider the advisability of procurement for the
        Strategic National Stockpile, and distribution to State and
        local governments, of medical prophylaxes other than potassium
        iodide, against radioiodine and other radiological byproducts;
        and
            (2) update the Federal potassium iodide distribution
        guidelines, including with lessons learned from evacuation
        events, as necessary.
    (e) Guidelines.--Section 127(c) of the Public Health Security and
Bioterrorism Preparedness and Response Act of 2002 (42 U.S.C. 300hh-12
note) is amended to read as follows:
    ``(c) Guidelines.--Not later than 60 days after the date of
enactment of the Nuclear Facility and Material Security Act of 2008,
the Secretary of Health and Human Services, in consultation with
individuals representing appropriate Federal, State, and local
agencies, shall establish guidelines for the stockpiling of potassium
iodide tablets, and for the distribution and utilization of potassium
iodide tablets in the event of a nuclear incident.''.

SEC. 6. AUDIT OF SAFETY AND SECURITY ANALYSIS AND REVIEW ACTIVITIES.

    Title II of the Energy Reorganization Act of 1974 (42 U.S.C. 5841
et seq.) is amended by adding at the end the following:

     ``audit of safety and security analysis and review activities

    ``Sec. 213.  (a) There shall be established within the Office of
the Inspector General of the Commission a unit with appropriate and
adequate technical staff, including degreed engineers with nuclear
power plant experience, which shall audit the Commission's regulatory
oversight activities related to safety and security of civilian nuclear
facilities.
    ``(b) There are authorized to be appropriated to the Commission,
for carrying out this Act, such sums as may be necessary.''.

SEC. 7. RADIATION SOURCE PROTECTION.

    (a) Categorization of Radiation Sources.--Section 170H f. of the
Atomic Energy Act of 1954 (42 U.S.C. 2210h(f)) is amended by adding at
the end the following new paragraph:
    ``(4) Not later than 1 year after the date of the enactment of this
paragraph, the task force shall--
            ``(A) complete an evaluation of the materials listed in the
        Code of Conduct;
            ``(B) make recommendations to amend the Commission's
        regulatory requirements for certain radiation sources or
        activity levels of certain radiation sources to account for--
                    ``(i) risks associated with the deliberate
                dispersal of those materials from radiation sources,
                including dispersal for the purpose of causing the
                ingestion or inhalation of those materials; and
                    ``(ii) the radiation source's potential to cause
                contamination of large areas, or economic and social
                disruption that could result from a terrorist attack;
                and
            ``(C) designate additional radiation sources for which the
        risks described in subparagraph (B)(i) and (ii) are
        particularly high as high-risk radiation sources for purposes
        of section 2(e) of the Nuclear Facility and Material Security
        Act of 2008.
Upon completion of the recommendations under this paragraph, the
Commission shall implement those recommendations by regulation.''.
    (b) Transportation of Radiation Sources.-- Not later than 18 months
after the date of enactment of this Act, the Nuclear Regulatory
Commission shall publish a final rule revising its regulations on the
security requirements for the transportation of Category 1, 2, and 3
sources (as defined in the Code of Conduct referred to in section 170H
a.(1) of the Atomic Energy Act of 1954 (42 U.S.C. 2210h(a)(1))),
including a requirement that shipments of Category 1, 2, and 3 sources
be equipped with covert technology that would enable location tracking
and recovery in the event the shipments or sources are stolen or
diverted.
    (c) Radiation Source Licensing.--Not later than 18 months after the
date of enactment of this Act, the Nuclear Regulatory Commission shall
issue a final rule requiring carriers and transporters transporting
within the United States radiation sources (as defined in section 170H
a.(2) of the Atomic Energy Act of 1954 (42 U.S.C. 2210h(a)(2))) to be
licensed by the Commission.
    (d) National Radiation Source Tracking System.--Not later than 2
years after the date of enactment of this Act, the Nuclear Regulatory
Commission shall issue a final rule, pursuant to its authority to
promote or protect the common defense and security under section 161 of
the Atomic Energy Act of 1954 (42 U.S.C. 2201), and in a manner that
maximizes the use of appropriate State government capabilities, to
revise Commission regulations with respect to the National Source
Tracking System to require technologies and systems that can provide
real-time tracking and enable locating--
            (1) Category 1, 2, and 3 sources (as defined in the Code of
        Conduct referred to in section 170H a.(1) of the Atomic Energy
        Act of 1954 (42 U.S.C. 2210h(a)(1))); and
            (2) radiation sources with \1/10\ or more of the activity
        threshold of such Category 3 sources.
    (e) High-Risk Radiation Sources Security and Replacement.--
            (1) Rule.--Not later than 2 years after the date of
        enactment of this Act, the Nuclear Regulatory Commission shall
        issue a final rule, pursuant to its authority to promote or
        protect the common defense and security under section 161 of
        the Atomic Energy Act of 1954 (42 U.S.C. 2201), to establish
        requirements leading to the replacement of all high-risk
        radiation sources. Such rule shall include provisions that--
                    (A) discontinue licensing for each application of
                new high-risk radiation sources as soon as is
                practicable, but in no event later than 10 years after
                the date of enactment of this Act, unless
                technologically feasible alternatives are not
                available;
                    (B) prescribe a new license fee structure, or other
                means of guaranteeing the availability of funds, for
                any new licenses of high-risk radiation sources to
                ensure that the costs of disposition of the high-risk
                radiation sources will be covered;
                    (C) provide for incentives for decommissioning and
                replacing existing high-risk radiation sources;
                    (D) prohibit the export of high-risk radiation
                sources to other countries; and
                    (E) prescribe enhanced security measures for
                existing high-risk radiation sources.
            (2) Task force recommendations.--Not later than 4 years
        after the initial rule is issued under paragraph (1) or any
        update is issued under paragraph (3), the Task Force on
        Radiation Source Protection and Security established under
        section 170H f. of the Atomic Energy Act of 1954 (42 U.S.C.
        2210h(f)) shall review the rule or update and make
        recommendations for appropriate modifications to the rule or
        update to account for--
                    (A) the emergence of new technologies that can be
                used to replace high-risk radiation sources; and
                    (B) new security threats or intelligence
                information regarding the risk of a deliberate attack
                using these radiation sources.
            (3) Nuclear regulatory commission review.--Taking into
        consideration the recommendations of the task force under
        paragraph (2), the Commission shall review and update the rule
        issued under paragraph (1) not less frequently than once every
        5 years to account for--
                    (A) the emergence of new technologies that can be
                used to replace high-risk radiation sources; and
                    (B) new security threats or intelligence
                information regarding the risk of a deliberate attack
                using these radiation sources.
            (4) Authorization of appropriations.--There are authorized
        to be appropriated to the Nuclear Regulatory Commission for
        carrying out paragraph (1)(C) such sums as may be necessary for
        the fiscal years 2009 through 2013.
            (5) Department of energy program.--There are authorized to
        be appropriated to the Secretary of Energy $50,000,000 for the
        period encompassing fiscal years 2009 through 2018 for the
        acceptance, storage, and disposition of high-risk radiation
        sources by the Department's United States Radiological Threat
        Reduction Program.
            (6) Definition.--For purposes of this subsection, the term
        ``high-risk radiation source'' means cesium chloride and any
        other radiation source that is designated by the Task Force on
        Radiation Source Protection and Security under section 170H
        f.(4)(C) of the Atomic Energy Act of 1954 (42 U.S.C.
        2210h(f)(4)(C)).

Summary: Nuclear Facility and Material Security Act of 2008 - Directs the Nuclear Regulatory Commission (NRC) to issue a final rule requiring: (1) all commercial nuclear power reactors approved for construction after enactment of this Act to be designed to withstand a large commercial aircraft impact. And (2) certain spent fuel security enhancements. Directs the NRC to issue an Independent Spent Fuel Storage Installation security final rule that: (1) makes such installations subject to specified security evaluation requirements of the Atomic Energy Act of 1954. And (2) incorporates such installations into a certain design basis threat rule. Requires the NRC to consider the likely consequences of a potential terrorist attack in any review it is required to undertake under the National Environmental Policy Act of 1969. Amends the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 to repeal the statement that certain requirements to make potassium iodide tablets available to state and local governments for stockpiling shall cease to apply if the President determines that there is an alternative and more effective prophylaxis or preventive measures for adverse thyroid conditions that may result from the release of radionuclides from nuclear power plants. Vests the Secretary of Health and Human Services with all federal authority over the distribution of potassium iodide as a medical prophylaxis for radiological exposure in humans. Directs the Secretary to arrange with the National Academy of Sciences (NAS) for studies on appropriate emergency response plans to nonroutine releases of radioactive materials, including from nuclear power plants, spent fuel storage facilities, radiological dispersal devices, and improvised nuclear explosive devices. Directs the Secretary to establish guidelines for the stockpiling and distribution of potassium iodide tablets in the event of a nuclear incident. Amends the Energy Reorganization Act of 1974 to establish within the Office of the Inspector General of the NRC a unit with appropriate and adequate technical staff with nuclear power plant experience to audit NRC regulatory oversight regarding civilian nuclear facilities. Amends the Atomic Energy Act of 1954 to require the NRC to promulgate final rules governing radiation source protection measures. Directs the NRC to publish final rules: (1) revising regulations on security requirements for transportation of radiation sources. (2) requiring carriers and transporters transporting radiation sources within the United States to be licensed by the NRC. (3) revising National Source Tracking System regulations to require technologies and systems that can provide real-time tracking and enable locating of specified radiation sources. And (4) establishing requirements leading to the replacement of all high-risk radiation sources. Authorizes appropriations for the acceptance, storage, and disposition of high-risk radiation sources by the Department of Energy United States Radiological Threat Reduction Program.

To provide for upgrading security at civilian nuclear facilities and of nuclear materials that could be used to construct a dirty bomb.