< Back to S. 1960 (112th Congress, 2011–2013)

Text of the Jobs Creation Act

This bill was introduced on December 7, 2011, in a previous session of Congress, but was not enacted. The text of the bill below is as of Dec 7, 2011 (Introduced).

Source: GPO

II

112th CONGRESS

1st Session

S. 1960

IN THE SENATE OF THE UNITED STATES

December 7, 2011

(for herself and Mrs. McCaskill) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To provide incentives to create American jobs.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Jobs Creation Act.

(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—Tax incentives

Subtitle A—Payroll tax holiday

Sec. 101. Extension of payroll tax holiday.

Sec. 102. Temporary employer payroll tax cut.

Subtitle B—American Opportunity

Sec. 111. Short title.

Sec. 112. Angel investment tax credit.

Subtitle C—Extension of expiring provisions

Sec. 121. Extension of bonus depreciation.

Sec. 122. Deduction for qualified tuition and related expenses.

Sec. 123. Research credit.

Sec. 124. 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements.

Sec. 125. Enhanced charitable deduction for contributions of food inventory.

Sec. 126. Enhanced charitable deduction for contributions of book inventories to public schools.

Sec. 127. Enhanced charitable deduction for corporate contributions of computer inventory for educational purposes.

TITLE II—Infrastructure provisions

Sec. 201. Capitalization of State infrastructure banks.

Sec. 202. Highway infrastructure investment.

Sec. 203. State revolving loan funds.

TITLE III—Regulatory Reform

Subtitle A—Clearing unnecessary regulatory burdens

Sec. 301. Short title.

Sec. 302. Regulatory reform.

Sec. 303. Reduction or waiver of civil penalties imposed on small entities.

Subtitle B—EPA regulatory relief

Sec. 311. Short title.

Sec. 312. Legislative stay.

Sec. 313. Compliance dates.

Sec. 314. Energy recovery and conservation.

Sec. 315. Other provisions.

TITLE IV—Workforce development

Subtitle A—Job training program consolidation

Sec. 401. Short title.

Sec. 402. Definitions.

Sec. 403. Study and proposal on duplicative job training programs.

Subtitle B—Innovation and Job Creation

Sec. 411. Short title.

Sec. 412. Definitions.

Sec. 413. National Innovation Council.

Sec. 414. National Innovation Council Board.

Sec. 415. Transfer of programs and functions.

Sec. 416. Cluster Information Center.

Sec. 417. Grant programs.

Sec. 418. Authorization of appropriations.

TITLE V—Offsets

Subtitle A—Surtax on high-income taxpayers

Sec. 501. Surtax on millionaires.

Subtitle B—Closing big oil tax loopholes

Sec. 511. Short title.

PART I—Close big oil tax loopholes

Sec. 521. Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers.

Sec. 522. Limitation on section 199 deduction attributable to oil, natural gas, or primary products thereof.

Sec. 523. Limitation on deduction for intangible drilling and development costs.

Sec. 524. Limitation on percentage depletion allowance for oil and gas wells.

Sec. 525. Limitation on deduction for tertiary injectants.

PART II—Outer Continental Shelf oil and natural gas

Sec. 531. Repeal of outer Continental Shelf deep water and deep gas royalty relief.

I

Tax incentives

A

Payroll tax holiday

101.

Extension of payroll tax holiday

Section 601(c) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (26 U.S.C. 1401 note) is amended by striking year 2011 and inserting years 2011 and 2012.

102.

Temporary employer payroll tax cut

(a)

In general

(1)

Employers

Section 601(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (26 U.S.C. 1401 note) is amended by striking and at the end of paragraph (1), by striking the period at the end of paragraph (2), and by adding at the end the following new paragraph:

(3)

with respect to remuneration paid during the payroll tax holiday period for qualified services, the rate of tax under 3111(a) of such Code shall be 4.2 percent (including for purposes of determining the applicable percentage under sections 3221(a) of such Code).

.

(2)

Self-employed individuals

Section 601(a) of such Act is amended by striking 10.40 percent in paragraph (1) and inserting 8.40 percent.

(b)

Qualified services

Section 601 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (26 U.S.C. 1401 note) is amended by adding at the end the following new subsection:

(f)

Qualified services

For purposes of this section, the term qualified services means services performed—

(1)

in a trade or business of a qualified employer, or

(2)

in the case of a qualified employer exempt from tax under section 501(a) of the Internal Revenue Code of 1986, in furtherance of the activities related to the purpose or function constituting the basis of the employer’s exemption under section 501 of such Code.

.

(c)

Conforming amendments

(1)

Section 601 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is amended by striking subsection (b).

(2)

Section 601(e)(2) of such Act is amended by striking subsection (a)(2) and inserting paragraphs (2) and (3) of subsection (a).

(3)

The headings for title VI and section 601 of such Act are each amended by striking employee.

(d)

Effective date

The amendments made by this section shall apply to wages paid and self-employment income earned after December 31, 2011.

B

American Opportunity

111.

Short title

This subtitle may be cited as the American Opportunity Act of 2011.

112.

Angel investment tax credit

(a)

In general

Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

30E.

Angel investment tax credit

(a)

Allowance of credit

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 25 percent of the qualified equity investments made by a qualified investor during the taxable year.

(b)

Qualified equity investment

For purposes of this section—

(1)

In general

The term qualified equity investment means any equity investment in a qualified small business entity if—

(A)

such investment is acquired by the taxpayer at its original issue (directly or through an underwriter) solely in exchange for cash, and

(B)

such investment is designated for purposes of this section by the qualified small business entity.

(2)

Equity investment

The term equity investment means—

(A)

any form of equity, including a general or limited partnership interest, common stock, preferred stock (other than nonqualified preferred stock as defined in section 351(g)(2)), with or without voting rights, without regard to seniority position and whether or not convertible into common stock or any form of subordinate or convertible debt, or both, with warrants or other means of equity conversion, and

(B)

any capital interest in an entity which is a partnership.

(3)

Redemptions

A rule similar to the rule of section 1202(c)(3) shall apply for purposes of this subsection.

(c)

Qualified small business entity

For purposes of this section—

(1)

In general

The term qualified small business entity means any domestic corporation or partnership if such corporation or partnership—

(A)

is a small business (as defined in section 41(b)(3)(D)(iii)),

(B)

has its headquarters in the United States,

(C)

is engaged in a high technology trade or business related to—

(i)

advanced materials, nanotechnology, or precision manufacturing,

(ii)

aerospace, aeronautics, or defense,

(iii)

biotechnology or pharmaceuticals,

(iv)

electronics, semiconductors, software, or computer technology,

(v)

energy, environment, or clean technologies,

(vi)

forest products or agriculture,

(vii)

information technology, communication technology, digital media, or photonics,

(viii)

life sciences or medical sciences,

(ix)

marine technology or aquaculture,

(x)

transportation, or

(xi)

any other high technology trade or business as determined by the Secretary,

(D)

has been in existence for less than 5 years as of the date of the qualified equity investment,

(E)

employs less than 100 full-time equivalent employees as of the date of such investment,

(F)

has more than 50 percent of the employees performing substantially all of their services in the United States as of the date of such investment, and

(G)

has equity investments designated for purposes of this paragraph.

(2)

Designation of equity investments

For purposes of paragraph (1)(G), an equity investment shall not be treated as designated if such designation would result in the aggregate amount which may be taken into account under this section with respect to equity investments in such corporation or partnership exceeds—

(A)

$10,000,000, taking into account the total amount of all qualified equity investments made by all taxpayers for the taxable year and all preceding taxable years,

(B)

$2,000,000, taking into account the total amount of all qualified equity investments made by all taxpayers for such taxable year, and

(C)

$1,000,000, taking into account the total amount of all qualified equity investments made by the taxpayer for such taxable year.

(d)

Qualified investor

For purposes of this section—

(1)

In general

The term qualified investor means an accredited investor, as defined by the Securities and Exchange Commission, investor network, or investor fund who review new or proposed businesses for potential investment.

(2)

Investor network

The term investor network means a group of accredited investors organized for the sole purpose of making qualified equity investments.

(3)

Investor fund

(A)

In general

The term investor fund means a corporation that for the applicable taxable year is treated as an S corporation or a general partnership, limited partnership, limited liability partnership, trust, or limited liability company and which for the applicable taxable year is not taxed as a corporation.

(B)

Allocation of credit

(i)

In general

Except as provided in clause (ii), the credit allowed under subsection (a) shall be allocated to the shareholders or partners of the investor fund in proportion to their ownership interest or as specified in the fund's organizational documents, except that tax-exempt investors shall be allowed to transfer their interest to investors within the fund in exchange for future financial consideration.

(ii)

Single member limited liability company

If the investor fund is a single member limited liability company that is disregarded as an entity separate from its owner, the credit allowed under subsection (a) may be claimed by such limited liability company's owner, if such owner is a person subject to the tax under this title.

(4)

Exclusion

The term qualified investor does not include—

(A)

a person controlling at least 50 percent of the qualified small business entity,

(B)

an employee of such entity, or

(C)

any bank, bank and trust company, insurance company, trust company, national bank, savings association or building and loan association for activities that are a part of its normal course of business.

(e)

National limitation on amount of investments designated

(1)

In general

There is an angel investment tax credit limitation of $500,000,000 for each of calendar years 2011 through 2015.

(2)

Allocation of limitation

The limitation under paragraph (1) shall be allocated by the Secretary among qualified small business entities selected by the Secretary.

(3)

Carryover of unused limitation

If the angel investment tax credit limitation for any calendar year exceeds the aggregate amount allocated under paragraph (2) for such year, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2020.

(f)

Application with other credits

(1)

Business credit treated as part of general business credit

Except as provided in paragraph (2), the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).

(2)

Personal credit

(A)

In general

In the case of an individual who elects the application of this paragraph, for purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.

(B)

Limitation based on amount of tax

In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subpart A for any taxable year (determined after application of paragraph (1)) by reason of subparagraph (A) shall not exceed the excess of—

(i)

the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

(ii)

the sum of the credits allowable under subpart A (other than this section) and section 27 for the taxable year.

(C)

Carryforward of unused credit

If the credit allowable under subsection (a) by reason of subparagraph (A) exceeds the limitation imposed by section 26(a)(1) or subparagraph (B), whichever is applicable, for such taxable year, reduced by the sum of the credits allowable under subpart A (other than this section) for such taxable year, such excess shall be carried to each of the succeeding 20 taxable years to the extent that such unused credit may not be taken into account under subsection (a) by reason of subparagraph (A) for a prior taxable year because of such limitation.

(g)

Special rules

(1)

Related parties

For purposes of this section—

(A)

In general

All related persons shall be treated as 1 person.

(B)

Related persons

A person shall be treated as related to another person if the relationship between such persons would result in the disallowance of losses under section 267 or 707(b).

(2)

Basis

For purposes of this subtitle, the basis of any investment with respect to which a credit is allowable under this section shall be reduced by the amount of such credit so allowed. This subsection shall not apply for purposes of sections 1202, 1397B, and 1400B.

(3)

Recapture

The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any qualified equity investment which is held by the taxpayer less than 3 years, except that no benefit shall be recaptured in the case of—

(A)

transfer of such investment by reason of the death of the taxpayer,

(B)

transfer between spouses,

(C)

transfer incident to the divorce (as defined in section 1041) of such taxpayer, or

(D)

a transaction to which section 381(a) applies (relating to certain acquisitions of the assets of one corporation by another corporation).

(h)

Regulations

The Secretary shall prescribe such regulations as may be appropriate to carry out this section, including regulations—

(1)

which prevent the abuse of the purposes of this section,

(2)

which impose appropriate reporting requirements, and

(3)

which apply the provisions of this section to newly formed entities.

.

(b)

Credit made part of general business credit

Subsection (b) of section 38 of the Internal Revenue Code of 1986 is amended—

(1)

in paragraph (35), by striking plus;

(2)

in paragraph (36), by striking the period at the end and inserting , plus; and

(3)

by adding at the end the following new paragraph:

(37)

the portion of the angel investment tax credit to which section 30E(f)(1) applies.

.

(c)

Conforming amendments

(1)

Section 1016(a) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting , and, and by inserting after paragraph (37) the following new paragraph:

(38)

to the extent provided in section 30E(g)(2).

.

(2)

Section 24(b)(3)(B) of such Code is amended by striking and 30D and inserting 30D, and 30E.

(3)

Section 25(e)(1)(C)(ii) of such Code is amended by inserting 30E, after 30D,.

(4)

Section 25A(i)(5)(B) of such Code is amended by striking and 30D and inserting , 30D, and 30E.

(5)

Section 25A(i)(5) of such Code is amended by inserting 30E, after 30D,.

(6)

Section 25B(g)(2) of such Code is amended by striking and 30D and inserting 30D, and 30E.

(7)

Section 26(a)(1) of such Code is amended by striking and 30D and inserting 30D, and 30E.

(8)

Section 30(c)(2)(B)(ii) of such Code is amended by striking and 30D and inserting , 30D, and 30E.

(9)

Section 30B(g)(2)(B)(ii) of such Code is amended by striking and 30D and inserting 30D, and 30E.

(10)

Section 30D(d)(2)(B)(ii) of such Code is amended by striking and 25D and inserting , 25D, and 30E.

(11)

Section 904(i) of such Code is amended by striking and 30D and inserting 30D, and 30E.

(12)

Section 1400C(d)(2) of such Code is amended by striking and 30D and inserting 30D, and 30E.

(d)

Clerical amendment

The table of sections for subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

Sec. 30E. Angel investment tax credit.

.

(e)

Effective date

The amendments made by this section shall apply to investments made after December 31, 2010, in taxable years ending after such date.

(f)

Regulations on allocation of national limitation

Not later than 120 days after the date of the enactment of this Act, the Secretary of the Treasury or the Secretary's delegate shall prescribe regulations which specify—

(1)

how small business entities shall apply for an allocation under section 30E(e)(2) of the Internal Revenue Code of 1986, as added by this section,

(2)

the competitive procedure through which such allocations are made,

(3)

the criteria for determining an allocation to a small business entity, including—

(A)

whether the small business entity is located in a State that is historically underserved by angel investors and venture capital investors,

(B)

whether the small business entity has received an angel investment tax credit, or its equivalent, from the State in which the small business entity is located and registered,

(C)

whether small business entities in low-, medium-, and high-population density States are receiving allocations, and

(D)

whether the small business entity has been awarded a Small Business Innovative Research or Small Business Technology Transfer grant from a Federal agency,

(4)

the actions that such Secretary or delegate shall take to ensure that such allocations are properly made to qualified small business entities, and

(5)

the actions that such Secretary or delegate shall take to ensure that angel investment tax credits are allocated and issued to the taxpayer.

(g)

Audit and report

Not later than January 31, 2014, the Comptroller General of the United States, pursuant to an audit of the angel investment tax credit program established under section 30E of the Internal Revenue Code of 1986 (as added by subsection (a)), shall report to Congress on such program, including all qualified small business entities that receive an allocation of an angel investment credit under such section.

C

Extension of expiring provisions

121.

Extension of bonus depreciation

(a)

In general

Paragraph (2) of section 168(k) is amended—

(1)

by striking January 1, 2014 in subparagraph (A)(iv) and inserting January 1, 2015, and

(2)

by striking January 1, 2013 each place it appears and inserting January 1, 2014.

(b)

100 percent expensing

Paragraph (5) of section 168(k) is amended—

(1)

by striking January 1, 2013 and inserting January 1, 2014, and

(2)

by striking January 1, 2012 each place it appears and inserting January 1, 2013.

(c)

Extension of election to accelerate the AMT credit in lieu of bonus depreciation

(1)

In general

Subclause (II) of section 168(k)(4)(D)(iii) is amended by striking 2013 and inserting 2014.

(2)

Round 3 extension property

Paragraph (4) of section 168(k) is amended by adding at the end the following new subparagraph:

(J)

Special rules for round 3 extension property

(i)

In general

In the case of round 3 extension property, this paragraph shall be applied without regard to—

(I)

the limitation described in subparagraph (B)(i) thereof, and

(II)

the business credit increase amount under subparagraph (E)(iii) thereof.

(ii)

Taxpayers previously electing acceleration

In the case of a taxpayer who made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, a taxpayer who made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, or a taxpayer who made the election under subparagraph (I)(iii) for its first taxable year ending after December 31, 2010—

(I)

the taxpayer may elect not to have this paragraph apply to round 3 extension property, but

(II)

if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer the bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is round 3 extension property.

The amounts described in subclause (II) shall be computed separately from any amounts computed with respect to eligible qualified property which is not round 2 extension property.
(iii)

Taxpayers not previously electing acceleration

In the case of a taxpayer who neither made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, nor made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, nor made the election under subparagraph (I)(iii) for its first taxable year ending after December 31, 2010—

(I)

the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2011, and each subsequent taxable year, and

(II)

if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is round 3 extension property.

(iv)

Round 3 extension property

For purposes of this subparagraph, the term round 3 extension property means property which is eligible qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 7(a) of the Small Business Jobs Tax Extenders Act of 2011 (and the application of such extension to this paragraph pursuant to the amendment made by section 7(c)(1) of such Act).

.

(d)

Conforming amendments

(1)

The heading for subsection (k) of section 168 is amended by striking January 1, 2013 and inserting January 1, 2014.

(2)

The heading for clause (ii) of section 168(k)(2)(B) is amended by striking pre-January 1, 2013 and inserting pre-January 1, 2014.

(3)

Paragraph (5) of section 168(l) is amended—

(A)

by striking and at the end of subparagraph (A),

(B)

by redesignating subparagraph (C) as subparagraph (B), and

(C)

by inserting after subparagraph (A) the following new subparagraph:

(B)

by substituting January 1, 2013 for January 1, 2014 in clause (i) thereof, and

.

(4)

Subparagraph (C) of section 168(n)(2) is amended by striking January 1, 2013 and inserting January 1, 2014.

(5)

Subparagraph (D) of section 1400L(b)(2) is amended by striking January 1, 2013 and inserting January 1, 2014.

(6)

Subparagraph (B) of section 1400N(d)(3) is amended by striking January 1, 2013 and inserting January 1, 2014.

(e)

Effective dates

The amendments made by this section shall apply to property placed in service after December 31, 2011, in taxable years ending after such date.

122.

Deduction for qualified tuition and related expenses

(a)

In general

Subsection (e) of section 222 of the Internal Revenue Code of 1986 is amended by striking December 31, 2011 and inserting December 31, 2012.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

123.

Research credit

(a)

In general

Subparagraph (B) of section 41(h)(1) of the Internal Revenue Code of 1986 is amended by striking December 31, 2011 and inserting December 31, 2012.

(b)

Conforming amendment

Subparagraph (D) of section 45C(b)(1) of such Code is amended by striking December 31, 2011 and inserting December 31, 2012.

(c)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after December 31, 2011.

124.

15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements

(a)

In general

Clauses (iv), (v), and (ix) of section 168(e)(3)(E) of the Internal Revenue Code of 1986 are each amended by striking January 1, 2012 and inserting January 1, 2013.

(b)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2011.

125.

Enhanced charitable deduction for contributions of food inventory

(a)

In general

Clause (iv) of section 170(e)(3)(C) of the Internal Revenue Code of 1986 is amended by striking December 31, 2011 and inserting December 31, 2012.

(b)

Effective date

The amendment made by this section shall apply to contributions made after December 31, 2011.

126.

Enhanced charitable deduction for contributions of book inventories to public schools

(a)

In general

Clause (iv) of section 170(e)(3)(D) of the Internal Revenue Code of 1986 is amended by striking December 31, 2011 and inserting December 31, 2012.

(b)

Effective date

The amendment made by this section shall apply to contributions made after December 31, 2011.

127.

Enhanced charitable deduction for corporate contributions of computer inventory for educational purposes

(a)

In general

Subparagraph (G) of section 170(e)(6) of the Internal Revenue Code of 1986 is amended by striking December 31, 2011 and inserting December 31, 2012.

(b)

Effective date

The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2011.

II

Infrastructure provisions

201.

Capitalization of State infrastructure banks

Section 610 of title 23, United States Code, is amended—

(1)

in subsection (d)—

(A)

by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively; and

(B)

by inserting after paragraph (4) the following:

(5)

Special single allocation

(A)

In general

Subject to subparagraph (C), of the funds made available under subparagraph (D), the Secretary shall allocate to each State a proportional amount in the manner required under this section for a 1-time deposit into the State infrastructure bank, for use in accordance with this section.

(B)

Certain uses of funds

A State may use an amount equal to 20 percent of the funds allocated under subparagraph (A) for—

(i)

investigating the viability of identifying revenue sources for repayment for projects;

(ii)

technical assistance;

(iii)

promotion to potential borrowers; and

(iv)

other activities that would enhance the project pipeline.

(C)

Nonparticipating States

(i)

In general

The Secretary shall allocate to each State that elects not to establish, or is prohibited by State law from establishing, an infrastructure bank under this section an amount equal to, at the election of the State—

(I)

20 percent of the amount that would otherwise be allocated to the State under subparagraph (A) for—

(aa)

investigating the viability of establishing such an infrastructure bank in the State;

(bb)

identifying revenue sources for repayment for projects;

(cc)

technical assistance;

(dd)

promotion to potential borrowers; and

(ee)

other activities that would enhance the project pipeline; or

(II)

10 percent of the amount that would otherwise be allocated to the State under subparagraph (A) for use for other surface transportation projects authorized under this title or title 49.

(ii)

Use of remaining funds

The amounts remaining after making an allocation to a State under clause (i) shall be redistributed by the Secretary to States with infrastructure banks under this section in accordance with subparagraph (A).

(D)

Funding

(i)

In general

On October 1, 2012, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this paragraph $10,000,000,000, to remain available until expended.

(ii)

Receipt and acceptance

The Secretary shall be entitled to receive, shall accept, and shall use to carry out this paragraph the funds transferred under clause (i), without further appropriation.

(E)

Non-Federal share

The non-Federal share of the cost of a project carried out using an allocation under this paragraph shall be 10 percent.

; and

(2)

by adding at the end the following:

(l)

Studies and reports

(1)

Annual financial audit

(A)

In general

The special single allocation described in subsection (d)(5)(A) shall be subject to an annual financial audit by an independent public accounting firm selected by the Inspector General to ensure that the State infrastructure bank meets generally accepted accounting principles.

(B)

Availability

The Inspector General shall—

(i)

submit to the appropriate committees of Congress the results of each audit carried out under subparagraph (A); and

(ii)

publish the results of each audit carried out under subparagraph (A) on a publicly accessible Internet site of the Department.

(2)

Annual performance evaluation

(A)

In general

The Inspector General shall carry out an annual assessment—

(i)

to evaluate the overall performance of the State infrastructure bank program; and

(ii)

to determine the effectiveness of the program at meeting the objectives and strategy goals of the program.

(B)

Initial review

In the first annual assessment carried out under this paragraph, the Inspector General shall include a report that describes—

(i)

each State that has established a State infrastructure bank under this section; and

(ii)
(I)

each State that elected not to establish, or is prohibited by State law from establishing, such an infrastructure bank; and

(II)

each State described in subclause (I) that is investigating the viability of establishing an infrastructure bank in the State under this section.

(C)

Dissemination

The Inspector General shall submit to the appropriate committees of Congress a report that contains the results of each annual assessment carried out under this paragraph.

.

202.

Highway infrastructure investment

(a)

In general

Out of any funds in the Treasury not otherwise appropriated, there is appropriated to the Secretary of Transportation (referred to in this section as the Secretary) $25,000,000,000 for—

(1)

construction, reconstruction, rehabilitation, resurfacing, restoration, and operational improvements for highways (including Interstate highways) and bridges (including bridges on public roads of all functional classifications);

(2)

the seismic retrofit and painting of bridges and approaches to bridges and other elevated structures; and

(3)

the cost of mitigation eligible under title 23, United States Code, necessary to address adverse impacts of projects funded under this Act.

(b)

Federal share; limitation on obligations

(1)

Federal share

The Federal share payable on account of any project or activity carried out using funds made available under this section shall be, at the option of the recipient, up to 100 percent of the total cost of the project or activity.

(2)

Limitation on obligations

The funds made available under this section shall not be subject to any limitation on obligations for Federal-aid highways and highway safety construction programs established under title 23, United States Code, or any other provision of law.

(c)

Availability

The funds made available under this section shall be available for obligation until the date that is 2 years after the date of enactment of this Act.

(d)

Distribution of funds

After making the set-aside under subsection (h), the Secretary shall apportion the funds made available under this section among States in the same ratio as amounts apportioned among States for fiscal year 2011 under the Surface Transportation Extension Act of 2010 (Public Law 111–147; 124 Stat. 78).

(e)

Apportionment

The apportionments under subsection (d) shall be made not later than 30 days after the date of enactment of this Act.

(f)

Redistribution

(1)

Unobligated funds

Subject to paragraph (2), not later than 1 year after the date on which the apportionments are made under subsection (e), the Secretary shall—

(A)

withdraw from each recipient of funds apportioned under subsection (e) any unobligated funds; and

(B)

redistribute those amounts in the manner described in the Surface Transportation Extension Act of 2010 (Public Law 111–147; 124 Stat. 78) to States that have had no funds withdrawn under this paragraph (excluding States that have opted not to obligate funds under this section).

(2)

Extensions

(A)

In general

Subject to subparagraph (B), at the request of a State, the Secretary may provide an extension of the 1-year period described in paragraph (1) only to the extent that the Secretary determines that the State has encountered—

(i)

extreme conditions that create an unworkable bidding environment; or

(ii)

other extenuating circumstances.

(B)

Notice

Before granting an extension under subparagraph (A), the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a written notice providing a thorough justification for the extension.

(g)

Conditions

(1)

In general

Funds made available under this section shall be administered as if apportioned under chapter 1 of title 23, United States Code.

(2)

Advance construction

Funds made available under this section shall not be obligated for the purposes authorized under section 115(b) of title 23, United States Code.

(3)

Funds under other Acts

Funds made available under this section—

(A)

shall be in addition to all funds provided for fiscal year 2012 for Federal-aid Highways in any other Act; and

(B)

shall not affect the distribution of any such funds.

(4)

Disadvantaged business enterprises

Section 1101(b) of Public Law 109–59 (23 U.S.C. 101 note; 119 Stat. 1156) shall apply to the funds apportioned under this section.

(h)

Oversight

The Secretary may set aside not more than 0.15 percent of the funds made available under this section to fund oversight by the Administrator of the Federal Highway Administration of projects and activities carried out using funds made available to the Federal Highway Administration by this Act, to remain available through September 30, 2015.

203.

State revolving loan funds

(a)

In general

In addition to any other amounts made available under Federal law, on October 1, 2012, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Administrator of the Environmental Protection Agency $800,000,000, to remain available until expended—

(1)

for State water pollution control revolving funds under title VI of the Federal Water Pollution Control Act (33 U.S.C. 1381 et seq.); and

(2)

for State drinking water treatment revolving loan funds under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12).

(b)

Receipt and acceptance

The Administrator of the Environmental Protection Agency shall be entitled to receive, shall accept, and shall use in accordance with paragraphs (1) and (2) of subsection (a) the funds transferred under that subsection, without further appropriation.

III

Regulatory Reform

A

Clearing unnecessary regulatory burdens

301.

Short title

This subtitle may be cited as the Clearing Unnecessary Regulatory Burdens Act or the CURB Act.

302.

Regulatory reform

(a)

Definitions

In this section—

(1)

the term Administrator means the Administrator of the Office of Information and Regulatory Affairs in the Office of Management and Budget;

(2)

the term agency has the same meaning as in section 3502(1) of title 44, United States Code;

(3)

the term economically significant guidance document means a significant guidance document that may reasonably be anticipated to lead to an annual effect on the economy of $100,000,000 or more or adversely affect in a material way the economy or a sector of the economy, except that economically significant guidance documents do not include guidance documents on Federal expenditures and receipts;

(4)

the term disseminated

(A)

means prepared by an agency and distributed to the public or regulated entities; and

(B)

does not include—

(i)

distribution limited to Federal Government employees;

(ii)

intra- or interagency use or sharing of Federal Government information; and

(iii)

responses to requests for agency records under section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act), section 552a of title 5, United States Code, (commonly referred to as the Privacy Act), the Federal Advisory Committee Act (5 U.S.C. App.), or other similar laws;

(5)

the term guidance document means an agency statement of general applicability and future effect, other than a regulatory action, that sets forth a policy on a statutory, regulatory or technical issue or an interpretation of a statutory or regulatory issue;

(6)

the term regulation means an agency statement of general applicability and future effect, which the agency intends to have the force and effect of law, that is designed to implement, interpret, or prescribe law or policy or to describe the procedure or practice requirements of an agency;

(7)

the term regulatory action means any substantive action by an agency (normally published in the Federal Register) that promulgates or is expected to lead to the promulgation of a final regulation, including notices of inquiry, advance notices of proposed rulemaking, and notices of proposed rulemaking;

(8)

the term significant guidance document

(A)

means a guidance document disseminated to regulated entities or the general public that may reasonably be anticipated to—

(i)

lead to an annual effect on the economy of $100,000,000 or more or affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities;

(ii)

create a serious inconsistency or otherwise interfere with an action taken or planned by another agency;

(iii)

materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or

(iv)

raise novel legal or policy issues arising out of legal mandates and the priorities, principles, and provisions of this section; and

(B)

does not include—

(i)

legal advisory opinions for internal Executive Branch use and not for release (such as Department of Justice Office of Legal Counsel opinions);

(ii)

briefs and other positions taken by agencies in investigations, pre-litigation, litigation, or other enforcement proceedings;

(iii)

speeches;

(iv)

editorials;

(v)

media interviews;

(vi)

press materials;

(vii)

congressional correspondence;

(viii)

guidance documents that pertain to a military or foreign affairs function of the United States (other than guidance on procurement or the import or export of non-defense articles and services);

(ix)

grant solicitations;

(x)

warning letters;

(xi)

case or investigatory letters responding to complaints involving fact-specific determinations;

(xii)

purely internal agency policies;

(xiii)

guidance documents that pertain to the use, operation or control of a government facility;

(xiv)

internal guidance documents directed solely to other agencies; and

(xv)

any other category of significant guidance documents exempted by an agency head in consultation with the Administrator; and

(9)

the term significant regulatory action means any regulatory action that is likely to result in a regulation that may—

(A)

have an annual effect on the economy of $100,000,000 or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities;

(B)

create a serious inconsistency or otherwise interfere with an action taken or planned by another agency;

(C)

materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or

(D)

raise novel legal or policy issues arising out of legal mandates and the priorities, principles, and provisions of this section.

(b)

Agency assessment of significant regulatory actions

For each significant regulatory action, each agency shall submit, at such times specified by the Administrator, a report to the Office of Information and Regulatory Affairs that includes—

(1)

an assessment, including the underlying analysis, of benefits anticipated from the significant regulatory action, such as—

(A)

the promotion of the efficient functioning of the economy and private markets;

(B)

the enhancement of health and safety;

(C)

the protection of the natural environment; and

(D)

the elimination or reduction of discrimination or bias;

(2)

to the extent feasible, a quantification of the benefits assessed under paragraph (1);

(3)

an assessment, including the underlying analysis, of costs anticipated from the regulatory action, such as—

(A)

the direct cost both to the Federal Government in administering the significant regulatory action and to businesses, consumers, and others (including State, local, and tribal officials) in complying with the regulation; and

(B)

any adverse effects on the efficient functioning of the economy, private markets (including productivity, employment, and competitiveness), health, safety, the natural environment, job creation, the prices of consumer goods, and energy costs;

(4)

to the extent feasible, a quantification of the costs assessed under paragraph (3); and

(5)

an assessment, including the underlying analysis, of costs and benefits of potentially effective and reasonably feasible alternatives to the planned significant regulatory action, identified by the agency or the public (including improving the current regulation and reasonably viable nonregulatory actions), and an explanation why the planned regulatory action is preferable to the identified potential alternatives.

(c)

Agency good guidance practices

(1)

Agency standards for significant guidance documents

(A)

Approval procedures

(i)

In general

Each agency shall develop or have written procedures for the approval of significant guidance documents, which shall ensure that the issuance of significant guidance documents is approved by appropriate senior agency officials.

(ii)

Requirement

Employees of an agency may not depart from significant guidance documents without appropriate justification and supervisory concurrence.

(B)

Standard elements

Each significant guidance document—

(i)

shall—

(I)

include the term guidance or its functional equivalent;

(II)

identify the agency or office issuing the document;

(III)

identify the activity to which and the persons to whom the significant guidance document applies;

(IV)

include the date of issuance;

(V)

note if the significant guidance document is a revision to a previously issued guidance document and, if so, identify the document that the significant guidance document replaces;

(VI)

provide the title of the document and a document identification number; and

(VII)

include the citation to the statutory provision or regulation (in Code of Federal Regulations format) which the significant guidance document applies to or interprets; and

(ii)

shall not include mandatory terms such as shall, must, required, or requirement unless—

(I)

the agency is using those terms to describe a statutory or regulatory requirement; or

(II)

the terminology is addressed to agency staff and will not foreclose agency consideration of positions advanced by affected private parties.

(2)

Public access and feedback for significant guidance documents

(A)

Internet access

(i)

In general

Each agency shall—

(I)

maintain on the Web site for the agency, or as a link on the Web site of the agency to the electronic list posted on a Web site of a component of the agency a list of the significant guidance documents in effect of the agency, including a link to the text of each significant guidance document that is in effect; and

(II)

not later than 30 days after the date on which a significant guidance document is issued, update the list described in clause (i).

(ii)

List requirements

The list described in subparagraph (A)(i) shall—

(I)

include the name of each—

(aa)

significant guidance document;

(bb)

document identification number; and

(cc)

issuance and revision dates; and

(II)

identify significant guidance documents that have been added, revised, or withdrawn in the preceding year.

(B)

Public feedback

(i)

In general

Each agency shall establish and clearly advertise on the Web site for the agency a means for the public to electronically submit—

(I)

comments on significant guidance documents; and

(II)

a request for issuance, reconsideration, modification, or rescission of significant guidance documents.

(ii)

Agency response

Any comments or requests submitted under subparagraph (A)—

(I)

are for the benefit of the agency; and

(II)

shall not require a formal response from the agency.

(iii)

Office for public comments

(I)

In general

Each agency shall designate an office to receive and address complaints from the public relating to—

(aa)

the failure of the agency to follow the procedures described in this section; or

(bb)

the failure to treat a significant guidance document as a binding requirement.

(II)

Web site

The agency shall provide, on the Web site of the agency, the name and contact information for the office designated under clause (i).

(3)

Notice and public comment for economically significant guidance documents

(A)

In general

Except as provided in paragraph (2), in preparing a draft of an economically significant guidance document, and before issuance of the final significant guidance document, each agency shall—

(i)

publish a notice in the Federal Register announcing that the draft document is available;

(ii)

post the draft document on the Internet and make a tangible copy of that document publicly available (or notify the public how the public can review the guidance document if the document is not in a format that permits such electronic posting with reasonable efforts);

(iii)

invite public comment on the draft document; and

(iv)

prepare and post on the Web site of the agency a document with responses of the agency to public comments.

(B)

Exceptions

In consultation with the Administrator, an agency head may identify a particular economically significant guidance document or category of such documents for which the procedures of this subsection are not feasible or appropriate.

(4)

Emergencies

(A)

In general

In emergency situations or when an agency is obligated by law to act more quickly than normal review procedures allow, the agency shall notify the Administrator as soon as possible and, to the extent practicable, comply with this subsection.

(B)

Significant guidance documents subject to statutory or court-imposed deadline

For a significant guidance document that is governed by a statutory or court-imposed deadline, the agency shall, to the extent practicable, schedule the proceedings of the agency to permit sufficient time to comply with this subsection.

(5)

Effective date

This section shall take effect 60 days after the date of enactment of this subtitle.

303.

Reduction or waiver of civil penalties imposed on small entities

(a)

In general

Chapter 6 of title 5, United States Code, is amended by adding at the end the following:

613.

Reduction or waiver of civil penalties imposed on small entities

(a)

Upon notifying a small entity of a violation by the small entity of a collection of information or recordkeeping requirement, the agency shall provide the small entity with an opportunity to request that the agency reduce or waive any civil penalty imposed on the small entity as a result of the violation.

(b)

If a small entity requests a reduction or waiver under subsection (a), the agency that receives the request shall—

(1)

review the records of the agency; and

(2)

reduce or waive the civil penalty imposed on the small entity if the agency determines that—

(A)

the civil penalty was the result of a first-time violation by the small entity of a collection of information or recordkeeping requirement; and

(B)

the reduction or waiver is consistent with the conditions and exclusions described in paragraphs (1), (3), (4), (5), and (6) of section 223(b) of the Small Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 note).

(c)

Not later than 60 days after the receipt of a request from a small entity under subsection (a), an agency shall send the small entity written notice of the determination of the agency with respect to the request and the reasons for the determination.

(d)

The Chief Counsel for Advocacy shall submit to Congress an annual report summarizing—

(1)

all requests received by the agencies under subsection (a) during the previous year; and

(2)

the results of the requests described in paragraph (1).

.

(b)

Technical and conforming amendment

The table of sections for chapter 6 of title 5, United States Code, is amended by adding at the end the following:

613. Reduction or waiver of civil penalties imposed on small entities.

.

B

EPA regulatory relief

311.

Short title

This subtitle may be cited as the EPA Regulatory Relief Act of 2011.

312.

Legislative stay

(a)

Establishment of standards

In place of the rules specified in subsection (b), and notwithstanding the date by which such rules would otherwise be required to be promulgated, the Administrator of the Environmental Protection Agency (in this subtitle referred to as the Administrator) shall—

(1)

propose regulations for industrial, commercial, and institutional boilers and process heaters, and commercial and industrial solid waste incinerator units, subject to any of the rules specified in subsection (b)—

(A)

establishing maximum achievable control technology standards, performance standards, and other requirements under sections 112 and 129, as applicable, of the Clean Air Act (42 U.S.C. 7412, 7429); and

(B)

identifying non-hazardous secondary materials that, when used as fuels or ingredients in combustion units of such boilers, process heaters, or incinerator units are solid waste under the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.; commonly referred to as the Resource Conservation and Recovery Act) for purposes of determining the extent to which such combustion units are required to meet the emissions standards under section 112 of the Clean Air Act (42 U.S.C. 7412) or the emission standards under section 129 of such Act (42 U.S.C. 7429); and

(2)

finalize the regulations on the date that is 15 months after the date of the enactment of this subtitle, or on such later date as may be determined by the Administrator.

(b)

Stay of earlier rules

The following rules are of no force or effect, shall be treated as though such rules had never taken effect, and shall be replaced as described in subsection (a):

(1)

National Emission Standards for Hazardous Air Pollutants for Major Sources: Industrial, Commercial, and Institutional Boilers and Process Heaters, published at 76 Fed. Reg. 15608 (March 21, 2011).

(2)

National Emission Standards for Hazardous Air Pollutants for Area Sources: Industrial, Commercial, and Institutional Boilers, published at 76 Fed. Reg. 15554 (March 21, 2011).

(3)

Standards of Performance for New Stationary Sources and Emission Guidelines for Existing Sources: Commercial and Industrial Solid Waste Incineration Units, published at 76 Fed. Reg. 15704 (March 21, 2011).

(4)

Identification of Non-Hazardous Secondary Materials That are Solid Waste, published at 76 Fed. Reg. 15456 (March 21, 2011).

(c)

Inapplicability of certain provisions

With respect to any standard required by subsection (a) to be promulgated in regulations under section 112 of the Clean Air Act (42 U.S.C. 7412), the provisions of subsections (g)(2) and (j) of such section 112 shall not apply prior to the effective date of the standard specified in such regulations.

313.

Compliance dates

(a)

Establishment of compliance dates

For each regulation promulgated pursuant to section 312, the Administrator—

(1)

shall establish a date for compliance with standards and requirements under such regulation that is, notwithstanding any other provision of law, not earlier than 5 years after the effective date of the regulation; and

(2)

in proposing a date for such compliance, shall take into consideration—

(A)

the costs of achieving emissions reductions;

(B)

any non-air quality health and environmental impact and energy requirements of the standards and requirements;

(C)

the feasibility of implementing the standards and requirements, including the time needed to—

(i)

obtain necessary permit approvals; and

(ii)

procure, install, and test control equipment;

(D)

the availability of equipment, suppliers, and labor, given the requirements of the regulation and other proposed or finalized regulations of the Environmental Protection Agency; and

(E)

potential net employment impacts.

(b)

New sources

The date on which the Administrator proposes a regulation pursuant to section 312(a)(1) establishing an emission standard under section 112 or 129 of the Clean Air Act (42 U.S.C. 7412, 7429) shall be treated as the date on which the Administrator first proposes such a regulation for purposes of applying the definition of a new source under section 112(a)(4) of such Act (42 U.S.C. 7412(a)(4)) or the definition of a new solid waste incineration unit under section 129(g)(2) of such Act (42 U.S.C. 7429(g)(2)).

(c)

Rule of construction

Nothing in this subtitle shall be construed to restrict or otherwise affect the provisions of paragraphs (3)(B) and (4) of section 112(i) of the Clean Air Act (42 U.S.C. 7412(i)).

314.

Energy recovery and conservation

(a)

In general

Notwithstanding any other provision of law, to ensure the recovery and conservation of energy consistent with the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) (commonly known as the Resource Conservation and Recovery Act of 1976), in promulgating regulations under section 312(a) that address the subject matter of the regulations described in paragraphs (3) and (4) of section 312(b), the Administrator shall—

(1)

adopt the definitions of the terms commercial and industrial solid waste incineration unit, commercial and industrial waste, and contained gaseous material contained in the regulation entitled Standards of Performance for New Stationary Sources and Emission Guidelines for Existing Sources: Commercial and Industrial Solid Waste Incineration Units (65 Fed. Reg. 75338 (December 1, 2000)); and

(2)

identify nonhazardous secondary material as not to be solid waste for purposes of the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) if—

(A)

the material—

(i)

does not meet the definition of commercial and industrial waste; and

(ii)

is on the list published by the Administrator under subsection (b); or

(B)

in the case of the material that is a gas, the material does not meet the definition of contained gaseous material.

(b)

List of nonhazardous secondary materials

(1)

In general

Not later than 120 days after the date of enactment of this subtitle, the Administrator shall publish a list of nonhazardous secondary materials that are not solid waste when combusted in units designed for energy recovery, including—

(A)

without limitation, all forms of biomass, including—

(i)

agricultural and forest-derived biomass;

(ii)

biomass crops, vines, and orchard trees;

(iii)

bagasse and other crop and tree residues, including—

(I)

hulls and seeds;

(II)

spent grains;

(III)

byproducts of cotton;

(IV)

corn and peanut production;

(V)

rice milling and grain elevator operations;

(VI)

cellulosic biofuels; and

(VII)

byproducts of ethanol natural fermentation processes;

(iv)

hogged fuel, including wood pallets, sawdust, and wood pellets;

(v)

wood debris from forests and urban areas;

(vi)

resinated wood and other resinated biomass-derived residuals, including trim, sanderdust, offcuts, and woodworking residuals;

(vii)

creosote-treated, borate-treated, sap-stained, and other treated wood;

(viii)

residuals from wastewater treatment by the manufacturing industry, including process wastewater with significant British thermal unit (Btu) value;

(ix)

paper and paper or cardboard recycling residuals, including paper-derived fuel cubes, paper fines, and paper and cardboard rejects;

(x)

turpentine, turpentine derivatives, pine tar, rectified methanol, glycerine, lumber kiln condensates, and wood char;

(xi)

tall oil and related soaps;

(xii)

biogases or bioliquids generated from biomass materials, wastewater operations, or landfill operations;

(xiii)

processed biomass derived from construction and demolition debris for the purpose of fuel production; and

(xiv)

animal manure and bedding material;

(B)

solid and emulsified paraffin;

(C)

petroleum and chemical reaction and distillation byproducts and residues, alcohol, ink, and nonhalogenated solvents;

(D)

tire-derived fuel, including factory scrap tire and related material;

(E)

foundry sand processed in thermal reclamation units;

(F)

coal refuse and coal combustion residuals;

(G)

shredded cloth and carpet scrap;

(H)

latex paint water, organic printing dyes and inks, recovered paint solids, and nonmetallic paint sludges;

(I)

nonchlorinated plastics;

(J)

all used oil that qualifies as recycled oil under section 1004 of the Solid Waste Disposal Act (42 U.S.C. 6903);

(K)

process densified fuels that contain any of the materials described in this paragraph; and

(L)

any other specific or general categories of material that the Administrator determines the combustion of which is for use as a fuel pursuant to paragraph (2).

(2)

Additions to the list

(A)

In general

To provide greater regulatory certainty, the Administrator may, after public notice and opportunity to comment, add nonhazardous secondary materials to the list published under paragraph (1)—

(i)

as the Administrator determines necessary; or

(ii)

based on a petition submitted by any person.

(B)

Response

Not later than 120 days after receiving any petition under subparagraph (A)(ii), the Administrator shall respond to the petition.

(C)

Requirements

In making a determination under this paragraph, the Administrator may decline to add a material to the list under paragraph (1) if the Administrator determines that regulation under section 112 of the Clean Air Act (42 U.S.C. 7412) would not reasonably protect public health with an ample margin of safety.

315.

Other provisions

(a)

Establishment of standards achievable in practice

In promulgating rules under section 312(a), the Administrator shall ensure that emissions standards for existing and new sources established under section 112 or 129 of the Clean Air Act (42 U.S.C. 7412, 7429), as applicable, can be met under actual operating conditions consistently and concurrently with emission standards for all other air pollutants regulated by the rule for the source category, taking into account variability in actual source performance, source design, fuels, inputs, controls, ability to measure the pollutant emissions, and operating conditions.

(b)

Regulatory alternatives

For each regulation promulgated pursuant to section 312(a), from among the range of regulatory alternatives authorized under the Clean Air Act (42 U.S.C. 7401 et seq.) including work practice standards under section 112(h) of such Act (42 U.S.C. 7412(h)), the Administrator shall impose the least burdensome, consistent with the purposes of such Act and Executive Order 13563 published at 76 Fed. Reg. 3821 (January 21, 2011).

IV

Workforce development

A

Job training program consolidation

401.

Short title

This subtitle may be cited as the Job Training Program Consolidation Act of 2011.

402.

Definitions

In this subtitle:

(1)

Job training program

The term job training program means any federally funded employment and training program, including the programs identified in the January 2011 report of the Government Accountability Office entitled Multiple Employee and Training Programs: Providing Information on Colocating Services and Consolidating Administrative Structures Could Promote Efficiencies (GAO–11–92) or the March 2011 report of such Office entitled Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue (GAO–11–318SP).

(2)

Director

The term Director means the Director of the Office of Management and Budget.

403.

Study and proposal on duplicative job training programs

(a)

Study required

The Director shall conduct a study on the effectiveness of current job training programs and on the consolidation of duplicative job training programs, using funds that are authorized under Federal law other than this subtitle and available for activities described in this section.

(b)

Recommendations

(1)

In general

In conducting the study required by subsection (a), the Director shall prepare recommendations for legislation.

(2)

Reduction of programs and costs

The recommended legislation shall—

(A)

reduce the overall number of job training programs;

(B)

reduce Federal administrative costs of job training programs;

(C)

reduce State and local administrative costs of job training programs; and

(D)

ensure that job training programs for veterans are visible and accessible to veterans seeking employment.

(3)

Consolidation under single agency

The recommended legislation shall consolidate all job training programs into a reduced number of programs that—

(A)

are carried out by a single agency; and

(B)

emphasize the provision of job training that develops skills needed by employers in the State or local area involved.

(4)

Use of savings

Under the recommended legislation—

(A)

half of all funds saved shall be used to increase funds for individual training accounts under section 134(d)(4)(F) of the Workforce Investment Act of 1998 (29 U.S.C. 2864(d)(4)(F)); and

(B)

half of all funds saved shall be deposited in the General Fund of the Treasury for debt reduction purposes.

(c)

Report

Using funds described in subsection (a), not later than 180 days after the date of enactment of this Act, the Director shall prepare and submit to Congress a report on the results of the study required by subsection (a), including the recommendations described in subsection (b).

B

Innovation and Job Creation

411.

Short title

This subtitle may be cited as the National Innovation and Job Creation Act of 2011.

412.

Definitions

In this subtitle:

(1)

Board

The term Board means the National Innovation Council Board appointed under section 414.

(2)

CLIC

The term CLIC means the CLUSTER Information Center established under section 416.

(3)

CLUSTER initiative

The term CLUSTER Initiative means a formally organized effort to promote cluster growth and competitiveness through collaborative activities among cluster participants.

(4)

CLUSTER program

The term CLUSTER Program means the Competitive Leadership for the United States Through its Economic Regions Program established under this subtitle to create and sustain a series of initiatives to promote economic growth in industry groups.

(5)

Council

The term Council means the National Innovation Council established under section 413.

(6)

Industry cluster

The term industry cluster means a geographic concentration of interconnected businesses, suppliers, service providers, and associated institutions in a particular field.

(7)

Industry research council

The term Industry Research Council means an entity that—

(A)

is organized for the purpose of advancing innovation;

(B)

is comprised of at least 5 for profit entities; and

(C)

contributes not less than the minimum amount established by the Council toward any grant awarded by the Council.

(8)

Innovation

The term innovation means the achievement of meaningful increases in productivity through the introduction or diffusion of a new or improved product, service, process, source of supply of materials, business structure, business practice, business model, or methods of production, delivery, distribution, financing, marketing, packaging, promoting, or pricing.

(9)

Productivity

The term productivity means the measure of the quality or quantity of economic output relative to the input required to produce that output.

413.

National Innovation Council

(a)

Establishment

(1)

In general

There is established, in the Executive Office of the President, the National Innovation Council, which shall—

(A)

coordinate Federal innovation policy; and

(B)

provide financial assistance for State and local innovation initiatives.

(2)

Director

The Council shall be under the direction of a Director, who shall be appointed by the President, with the advice and consent of the Senate.

(3)

Staff

(A)

In general

In accordance with such policies as the Council shall from time to time prescribe, the Director shall appoint and fix the compensation of such personnel as may be necessary to enable the Council to perform its duties under this subtitle.

(B)

Temporary staff

The Director may appoint, for a limited term or on a temporary basis, such professional or technical staff as the Director determines to be necessary to carry out specific functions under this subtitle for which their expertise is required.

(b)

Powers and responsibilities

(1)

Policy formulation and advocacy

The Council shall be responsible for formulating and advocating for the innovation policy of the Federal Government.

(2)

Assistance

The Council shall achieve the goal described in paragraph (1) by—

(A)

providing assistance to other Federal agencies with respect to innovation, upon request;

(B)

assisting the Census Bureau, the Bureau of Economic Analysis, the Bureau of Labor Statistics, other major Federal statistical agencies, and the National Science Foundation in developing operational measures of innovation that can be included in new or existing economic data sources, and providing funding to such agencies for such purpose;

(C)

providing Federal agencies and companies with the information they need to promote innovation and productivity; and

(D)

assisting companies with activities such as—

(i)

joint industry-university research partnerships;

(ii)

technology transfer from laboratories to businesses;

(iii)

technology-based entrepreneurship;

(iv)

industrial modernization through adoption of best practice technologies and business practices; and

(v)

incumbent worker training.

(3)

Innovation measurement

The Council shall create methods of measuring innovation and productivity.

(4)

Research program

The Council shall carry out a program of research on innovation and productivity.

(5)

Advocacy

The Council shall recommend specific measures to improve innovation and productivity in the United States.

(c)

Collaboration

The Council shall collaborate with, and provide funding to, the Census Bureau, the Bureau of Economic Analysis, the Bureau of Labor Statistics, other major Federal statistical agencies, and the National Science Foundation to develop—

(1)

measures of productivity in the service sector;

(2)

measures of total factor productivity, reflecting capital, materials, energy, and purchased services, labor, and other relevant factors as productive inputs for all industries;

(3)

measures of gross product and productivity for counties and metropolitan areas; and

(4)

measures of private rates of return from research and development.

(d)

Data collection and analysis

The Council shall—

(1)

collect and analyze data necessary to evaluate the impact on productivity resulting from the Council’s programs; and

(2)

require recipients of funding or other assistance from the Council to provide information necessary to measure improvements in productivity resulting from such funding or assistance.

(e)

Annual report

The Council shall annually submit a report (to be known as the National Innovation Report) to Congress, which shall set forth—

(1)

the current and foreseeable trends in innovation and productivity in the Nation;

(2)

a review and analysis of recent domestic and international developments affecting innovation and productivity in the Nation;

(3)

goals for improved innovation and productivity in the Nation;

(4)

a program designed to improve innovation and productivity in the Nation; and

(5)

such recommendations for legislation as the President considers desirable.

414.

National Innovation Council Board

(a)

Establishment

The Council shall be under the direction of the National Innovation Council Board, which shall be comprised of 11 voting members, who shall be appointed by the President, with the advice and consent of the Senate.

(b)

Appointment criteria

(1)

Qualifications

Each voting member of the Board—

(A)

shall be eminent in the field of business, economic development, health care, applied sciences, engineering, education, or public affairs;

(B)

shall have a record of distinguished service in his or her field; and

(C)

shall have demonstrated knowledge and appreciation of the value of innovation.

(2)

Representation

In making appointments under this section, the President shall—

(A)

give due regard to equitable representation of members who are women or who represent minority groups;

(B)

provide representation of the views of leaders in economic development and innovation in all areas of the Nation; and

(C)

appoint not fewer than—

(i)

1 representative with a background in manufacturing;

(ii)

1 representative with a background in the service industry;

(iii)

1 representative of higher education;

(iv)

1 representative of State and local government;

(v)

1 representative of organized labor;

(vi)

1 representative of the nonprofit sector;

(vii)

1 representative of economic development organizations;

(viii)

1 representative of professional associations; and

(ix)

1 recognized expert in innovation.

(3)

Terms

Voting members of the Board shall be appointed to 4-year terms.

(4)

Ex officio members

The Secretary of Commerce and the Secretary of Labor shall serve as ex officio members of the Board.

415.

Transfer of programs and functions

There shall be transferred to the Council the functions, personnel, assets, and liabilities of—

(1)

the Manufacturing Extension Partnership Program of the National Institute of Standards and Technology;

(2)

the Technology Innovation Program of the National Institute of Standards and Technology;

(3)

the Office of Technology Partnerships of the National Institute of Standards and Technology;

(4)

the Partnerships for Innovation of the National Science Foundation;

(5)

the Industry-University Cooperative Research Center Program of the National Science Foundation;

(6)

the Engineering Research Center Program of the National Science Foundation; and

(7)

the Workforce Innovation in Regional Economic Development of the Department of Labor.

416.

Cluster Information Center

(a)

Establishment

There is established within the Council the CLUSTER Information Center.

(b)

Purposes

The purpose of the CLIC is to promote the collection, development, and dissemination of data and analysis on industry clusters throughout the United States.

(c)

Databases

The Director of the Council shall compile databases for the CLIC from existing Federal data sets available from—

(1)

the Census Bureau;

(2)

the Bureau of Economic Analysis;

(3)

the Bureau of Labor Statistics;

(4)

the International Trade Administration;

(5)

the Statistics of Income Program of the Internal Revenue Service;

(6)

the Office of Patent Resource Administration in the United States Patent and Trademark Office;

(7)

the National Science Foundation;

(8)

the National Innovation Council;

(9)

other Federal agencies; and

(10)

non-Federal sources, including private databases, as appropriate.

(d)

Functions

(1)

In general

The CLIC shall—

(A)

support and disseminate research on the formation and evolution of industry clusters, CLUSTER Initiatives, and CLUSTER Programs;

(B)

gather, analyze, and disseminate information on the best practices for the development of industry clusters, CLUSTER Initiatives, and CLUSTER Programs in the United States and in other countries, specifically determining how productivity, innovation, and competitive advantage can be maximized through industry clusters, CLUSTER Initiatives, and CLUSTER Programs;

(C)

develop technical assistance guides for regional cluster analysis and CLUSTER Initiative and initiative program development and operations; and

(D)

bring together representatives of industry clusters, CLUSTER Initiatives, and CLUSTER Programs, experts, and scholars to disseminate developments in cluster analysis, initiatives, and programs.

(2)

Data collection

The CLIC shall collect and make available data on cluster activity showing—

(A)

breadth, a geographically-specific picture of the array of clusters in each key industry throughout the United States, with data on size, specialization, and competitiveness of the industry clusters in each State, region, and major metropolitan area;

(B)

depth, for each cluster, detailed data such as regional domestic product contribution, total jobs and earnings by key occupations, establishment size, nature of specialization, patents, Federal research and development spending, citation patterns, and trade; and

(C)

flow, estimates of supply chain product and service flows within and between industry clusters.

(3)

Report

The CLIC shall—

(A)

monitor the extent to which the data available to it is sufficient for proper analysis of cluster activity; and

(B)

submit a report to Congress that includes recommendations regarding further authorization for data collection, as necessary.

(4)

Limitation

The CLIC may not collect or analyze data which would otherwise be in violation of Federal privacy laws.

(5)

Dissemination of analyses

Data and analysis compiled by the CLIC shall be made available to other Federal agencies, State and local governments, and nonprofit and for-profit entities, to guide investments in industry cluster activities that will lead to increased productivity, innovation, and competitive advantage, including—

(A)

cluster development;

(B)

economic development;

(C)

workforce development;

(D)

research and development;

(E)

business site locations;

(F)

analysis of United States competitiveness, by industry, industry cluster, and geography; and

(G)

other appropriate activities.

(e)

Cluster Initiative and Cluster Program Registry

(1)

In general

The CLIC shall maintain a publicly available registry of CLUSTER Initiatives and CLUSTER Programs that contain information that is useful to the study and analysis of CLUSTER Initiatives and CLUSTER Programs, including—

(A)

organizational structure;

(B)

membership;

(C)

activities;

(D)

funding; and

(E)

perceived impacts of registered CLUSTER Initiatives and CLUSTER Programs.

(2)

Information collected

At the time a CLUSTER Initiative is registered, the CLIC shall collect sufficient information to demonstrate that the CLUSTER Initiative—

(A)

is an industry-led effort with not fewer than 5 member firms and 1 lead organizing entity;

(B)

involves not fewer than 3 cluster support organizations, such workforce boards, community colleges, universities, and industry associations; and

(C)

has a strategy to enhance the competitive position of the cluster.

(3)

Priority funding

Registered CLUSTER Initiatives and CLUSTER Programs shall receive priority for funding from the Council and the CLIC.

(4)

Use of information

Information contained in the CLUSTER Initiative and CLUSTER Program Registry shall be made available to other Federal agencies, State and local governments, and nonprofit and for-profit entities.

(f)

Outside contracts

The Director of the Council may contract out the operation of the CLIC to an external organization such as another Federal agency, a university, a nonprofit research entity, or a private company.

(g)

Authorization of appropriations

There are authorized to be appropriated $20,000,000 to carry out this section.

417.

Grant programs

(a)

CLUSTER grant program

(1)

Authorization

The Council shall award grants to eligible grantees to operate a CLUSTER Grant Program for the purpose of awarding grants to CLUSTER Initiatives in accordance with the requirements under this subsection.

(2)

Eligible grantees

A grant may be awarded under this subsection to—

(A)

a State; or

(B)

an entity designated by a State or a group of States, which may be a city, a county, another political subdivision of a State, a nonprofit organization, or any other economic development organization.

(3)

Use of grant funds

All entities receiving grant funds under this subsection shall ensure that CLUSTER Initiatives supported by such funds—

(A)

are operated in a manner consistent with the best practices established by the CLUSTER Program;

(B)

are industry-led;

(C)

are inclusive, seeking any and all organizations that might find benefit from participation, including startups, firms not locally owned, and firms rival to existing members;

(D)

encourage broad participation by and collaboration among all types of participants;

(E)

involve key State and local government actors; and

(F)

participate in the CLIC registry and research activities described in section 416(e).

(4)

Grant types

(A)

Feasibility study grants

(i)

In general

A grant in an amount not to exceed $250,000 shall be awarded to eligible grantees for Cluster Program feasibility studies, planning, and operations.

(ii)

Conditions

A feasibility study grant shall be awarded to not fewer than 1 eligible grantee in each State on a 1-time basis, with no matching funds required.

(B)

Start up and annual grants

(i)

Start up grant

A 1-year grant in an amount not to exceed $1,000,000 shall be awarded to not fewer than 1 new cluster program in each State to support planning studies, provide technical assistance, and fund start-up activities.

(ii)

Annual grant

An annual grant shall be awarded to not fewer than 1 early-stage cluster programs in each State to provide technical assistance and fund operating activities.

(iii)

Renewal

Grants awarded under clause (ii) may be renewed for a total period not to exceed 5 years (including any start up grant).

(iv)

Matching funds requirement

(I)

Initial period

During the first 2 years in which an eligible entity receives grant funding under this subparagraph, the eligible entity shall provide matching funds in an amount equal to the amount of funds received under this subparagraph.

(II)

Subsequent period

If the Council determines, in accordance with criteria established by the CLUSTER Program, that an eligible grantee has demonstrated greater effectiveness than other grant recipients during the period described in subclause (I), the non-Federal matching requirement for such eligible grantee in future years may be reduced.

(C)

Matching grants for cluster initiatives

(i)

In general

A grant of between $1,000,000 and $15,000,000 may be awarded, on a competitive basis, to CLUSTER Programs for the purpose of supporting CLUSTER Initiatives.

(ii)

Matching requirement

An eligible entity receiving a grant under this subparagraph shall provide matching funds in an amount equal to the amount of grant funds received under this subparagraph.

(iii)

Selection criteria

In selecting grant recipients under this subparagraph, the Council shall consider—

(I)

the probable impact of the proposed effort on the competitiveness of the area’s traded sector;

(II)

if the proposed effort fits within a broader achievable economic development strategy;

(III)

the capacity and commitment of the sponsoring organization;

(IV)

the degree of support and involvement from relevant State and regional economic and workforce development organizations, other public purpose institutions (such as universities, community colleges, workforce boards), and the private sector, including industry associations;

(V)

the eligible grantee's expected ability to access additional funds from Federal, State, and local sources;

(VI)

the eligible grantee's capacity to sustain activities once grant funds have been expended; and

(VII)

the extent to which economic diversity across regions of the United States would be increased through the grant.

(5)

Application process

The application process for grants awarded under this subsection shall be on a rolling basis.

(6)

Authorization of appropriations

There are authorized to be appropriated $350,000,000 for fiscal year 2012 and each subsequent fiscal year to carry out this subsection.

(b)

National sector research grants

(1)

Grants authorized

The Council shall award competitive grants to eligible companies and joint ventures to encourage innovation through research partnerships between academic institutions in the United States and industry research alliances.

(2)

Eligibility

Each company and joint venture desiring a grant under this subsection shall—

(A)

submit an application to the Council containing such information as the Council may reasonably require;

(B)

form an industry-led research consortium consisting of at least 5 companies; and

(C)

agree to develop a 3- to 10-year technology roadmap that charts out generic science and technology needs that the companies share.

(3)

Federal cost share

The Federal share of a project funded by a grant under this subsection shall be not more than 50 percent of the total project costs.

(c)

Productivity enhancement research grants

The Council shall award grants to academic institutions in the United States and to joint ventures comprised of academic institutions and private companies to support early-stage research into methods of increasing productivity and innovation, with broad application for a range of industries, including—

(1)

automated manufacturing or service processes;

(2)

technology-enabled remote service delivery;

(3)

quality improvement; and

(4)

other methods of improving productivity and innovation.

(d)

State innovation-Based economic development partnership grants

(1)

Grants authorized

The Council shall award innovation-based economic development partnership grants to State economic development entities designated by each State.

(2)

Grant types

(A)

Feasibility study grants

(i)

In general

A grant of up to $250,000 shall be awarded to States for feasibility studies, planning, and operations.

(ii)

Conditions

A feasibility study grant shall be awarded to not fewer than 1 eligible grantee in each State on a 1-time basis, with no matching funds required.

(B)

Start-up and annual grants

(i)

Start up grant

A 1-year grant in an amount not to exceed $2,000,000 shall be awarded to States to support planning studies, provide technical assistance, and fund start-up activities.

(ii)

Annual grants

In addition to the grants authorized under clause (i), annual grants shall be awarded to States to provide technical assistance and fund operating activities. Grants awarded under this clause may be renewed indefinitely.

(iii)

Minimum grants

Each State shall be awarded not fewer than 1 grant under this subparagraph.

(iv)

Matching funds requirement

A State receiving a start-up grant under this subparagraph shall provide—

(I)

for the first $1,000,000 in grant funds, a match of $1 for every $2 received in grant funds; and

(II)

for any additional amount in grant funds, a match of $2 for every $1 received in grant funds.

(3)

IBED plans

(A)

Initial plans

Each State desiring a grant under this subsection shall submit to the Council an initial innovation-based economic development plan (referred to in this paragraph as an IBED Plan), which describes—

(i)

how grant funds would be used to support the creation of alliances for the dissemination of innovation among local governments, businesses, educational institutions, and other institutions;

(ii)

how companies within the State would benefit from the activities funded through a grant under this subsection; and

(iii)

how innovation would be disseminated through the activities described in paragraph (4) to companies within the State.

(B)

Review

The Council and an outside panel of experts shall—

(i)

review the initial IBED Plans submitted under subparagraph (A); and

(ii)

notify the States of any suggested modifications to such plans.

(C)

Resubmission of plans

States may submit modified IBED Plans to the Council.

(D)

Use of plans

The Council shall score IBED Plans submitted under this paragraph and award competitive grants to States under this subsection, to the extent available, on the basis of such scores. In scoring plans under this subparagraph, the Council shall award additional points for multi-State and regional innovation-based economic development efforts.

(4)

Use of funds

Grant funds received under this subsection may be used to establish—

(A)

technology commercialization centers;

(B)

industry-university research centers;

(C)

regional cluster development programs;

(D)

regional skills alliances;

(E)

entrepreneurial support programs;

(F)

science parks; and

(G)

related activities to spur innovation or productivity.

(5)

Federal cost share

The Federal share of a project funded by a grant under this subsection shall be not more than 1/3 of the total project costs.

(6)

Noncompetitive grants

The Council shall award noncompetitive planning and technical assistance grants to States that do not receive a competitive grant under this subsection, which shall be used to improve the quality of the States’ proposals for subsequent grants under this section.

(e)

Technology diffusion grants

(1)

Grants authorized

The Council shall award grants to manufacturing extension partnership centers in each State to promote the diffusion of existing technological innovations to companies in which such innovations are underutilized. Notwithstanding any other provision of law, a manufacturing extension partnership may use grant funds awarded under this subsection for activities in the service sector that comply with the requirements under this subsection.

(2)

Grant types

(A)

Feasibility study grants

(i)

In general

A grant of up to $250,000 shall be awarded to manufacturing extension partnership centers for feasibility studies, planning, and operations.

(ii)

Conditions

A feasibility study grant shall be awarded to not fewer than 1 eligible grantee in each State on a 1-time basis, with no matching funds required.

(B)

Start up and annual grants

(i)

Start up grant

A 1-year grant of up to $2,000,000 shall be awarded to a manufacturing extension partnership center in each State to support planning studies, provide technical assistance, and fund start-up activities.

(ii)

Annual grants

In addition to the grants authorized under clause (i), annual grants shall be awarded to manufacturing extension partnership centers in each State provide technical assistance and fund operating activities. Grants awarded under this clause may be renewed indefinitely.

(iii)

Matching funds requirement

A manufacturing extension partnership center receiving a grant under this subparagraph shall provide—

(I)

for the first $1,000,000 in grant funds, a match of $1 for every $2 received in grant funds; and

(II)

for any additional amount in grant funds, a match of $2 for every $1 received in grant funds.

(3)

Use of funds

Grants funds received under this subsection may be used—

(A)

to establish manufacturing extension partnership centers in each State to provide—

(i)

support for manufacturing and services; and

(ii)

innovation awards; and

(B)

to support the diffusion of innovation in any sector of the economy, including the service sector.

(4)

Evaluation process

In evaluating proposals for grants under this subsection, the Council shall—

(A)

determine the degree to which measurable productivity gains are expected to be achieved through each applicant’s proposed diffusion of innovation;

(B)

follow the 2-step process established under subsection (d)(3) for grants to carry out the activities described in paragraph (3)(A); and

(C)

require manufacturing extension partnership centers to submit a plan to carry out the activities described in paragraph (3)(B).

(f)

Use of grants

Grant funds received under this section shall be used to—

(1)

perform Council-supported grant work in the United States; and

(2)

promote the production of any resulting goods or services in the United States.

(g)

Award criteria

In evaluating proposals for grants under this section, the Council shall—

(1)

determine, as 1 award factor, the extent to which a grant to each State or manufacturing extension partnership center is expected to increase production, wages, or employment in the United States;

(2)

not award any grant which the Council believes could result in a decrease in production, wages, or employment in the United States; and

(3)

consult with technology-specific boards staffed with experts in fields appropriate to the proposals for grants being evaluated.

(h)

Minimum funding level

(1)

In general

For each of the grant programs established under subsections (a), (d), and (e)—

(A)

not fewer than 1 grant shall be awarded to a grantee in each State; and

(B)

the amount of each grant shall be not less than 80 percent of the average grant awarded in such grant program.

(2)

Population-based allocations

In each State, the total amount of grant funds awarded to grantees in such State under subsections (a) through (e) shall be not less than 50 percent of the product of—

(A)

the percentage of the population of the United States who are residents of such State, according to the most recent decennial census; and

(B)

the total amount of grant funds awarded under subsections (a) through (e).

(i)

Coordination of funds

Recipients of grants under this section may use, as matching funds, amounts received from the agencies listed in section 415, to the extent approved by the Council and such agencies.

418.

Authorization of appropriations

There are authorized to be appropriated to the National Innovation Council, for each of the fiscal years 2012 through 2016, such sums as may be necessary to carry out this subtitle.

V

Offsets

A

Surtax on high-income taxpayers

501.

Surtax on millionaires

(a)

In general

Subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:

VIII

Surtax on millionaires

Sec. 59B. Surtax on millionaires.

59B.

Surtax on millionaires

(a)

General rule

In the case of a taxpayer other than a corporation for any taxable year beginning after 2012 and before 2023, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to 2 percent of so much of the modified adjusted gross income of the taxpayer for such taxable year as exceeds $1,000,000 ($500,000, in the case of a married individual filing a separate return).

(b)

Inflation adjustment

(1)

In general

In the case of any taxable year beginning after 2013, each dollar amount under subsection (a) shall be increased by an amount equal to—

(A)

such dollar amount, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2011 for calendar year 1992 in subparagraph (B) thereof.

(2)

Rounding

If any amount as adjusted under paragraph (1) is not a multiple of $10,000, such amount shall be rounded to the next highest multiple of $10,000.

(c)

Modified adjusted gross income

For purposes of this section—

(1)

In general

The term modified adjusted gross income means adjusted gross income reduced by the excess of—

(A)

gross income from a small business (as defined in section 6654(d)(1)(D)(iii))—

(i)

which is not a passive activity (within the meaning of section 469(c)), and

(ii)

with respect to which the taxpayer pays wages to at least 1 full-time equivalent employee (as defined in section 45R(d)(2)), other than the taxpayer, the taxpayer's spouse, or an individual who bears a relationship to the taxpayer described in section 152(d)(2), over

(B)

the deductions which are properly allocable to such income.

(2)

Regulations

The Secretary shall prescribe regulations similar to the regulations under section 469(l) for determining the income that is taken into account under paragraph (1)(A).

(d)

Special rules

(1)

Nonresident alien

In the case of a nonresident alien individual, only amounts taken into account in connection with the tax imposed under section 871(b) shall be taken into account under this section.

(2)

Citizens and residents living abroad

The dollar amount in effect under subsection (b) shall be decreased by the excess of—

(A)

the amounts excluded from the taxpayer’s gross income under section 911, over

(B)

the amounts of any deductions or exclusions disallowed under section 911(d)(6) with respect to the amounts described in subparagraph (A).

(3)

Charitable trusts

Subsection (a) shall not apply to a trust all the unexpired interests in which are devoted to one or more of the purposes described in section 170(c)(2)(B).

(4)

Not treated as tax imposed by this chapter for certain purposes

The tax imposed under this section shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter or for purposes of section 55.

.

(b)

Clerical amendment

The table of parts for subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

Part VIII. Surtax on millionaires.

.

(c)

Section 15 not To apply

The amendment made by subsection (a) shall not be treated as a change in a rate of tax for purposes of section 15 of the Internal Revenue Code of 1986.

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.

B

Closing big oil tax loopholes

511.

Short title

(a)

Short title

This subtitle may be cited as the Close Big Oil Tax Loopholes Act.

I

Close big oil tax loopholes

521.

Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers

(a)

In general

Section 901 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:

(n)

Special rules relating to major integrated oil companies which are dual capacity taxpayers

(1)

General rule

Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (as defined in section 167(h)(5)(B)) to a foreign country or possession of the United States for any period shall not be considered a tax—

(A)

if, for such period, the foreign country or possession does not impose a generally applicable income tax, or

(B)

to the extent such amount exceeds the amount (determined in accordance with regulations) which—

(i)

is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or

(ii)

would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.

Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).
(2)

Dual capacity taxpayer

For purposes of this subsection, the term dual capacity taxpayer means, with respect to any foreign country or possession of the United States, a person who—

(A)

is subject to a levy of such country or possession, and

(B)

receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.

(3)

Generally applicable income tax

For purposes of this subsection—

(A)

In general

The term generally applicable income tax means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.

(B)

Exceptions

Such term shall not include a tax unless it has substantial application, by its terms and in practice, to—

(i)

persons who are not dual capacity taxpayers, and

(ii)

persons who are citizens or residents of the foreign country or possession.

.

(b)

Effective Date

(1)

In general

The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.

(2)

Contrary treaty obligations upheld

The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.

522.

Limitation on section 199 deduction attributable to oil, natural gas, or primary products thereof

(a)

Denial of deduction

Paragraph (4) of section 199(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(E)

Special rule for certain oil and gas income

In the case of any taxpayer who is a major integrated oil company (as defined in section 167(h)(5)(B)) for the taxable year, the term domestic production gross receipts shall not include gross receipts from the production, transportation, or distribution of oil, natural gas, or any primary product (within the meaning of subsection (d)(9)) thereof.

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

523.

Limitation on deduction for intangible drilling and development costs

(a)

In general

Section 263(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: This subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B))..

(b)

Effective date

The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.

524.

Limitation on percentage depletion allowance for oil and gas wells

(a)

In general

Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(f)

Application with respect to major integrated oil companies

In the case of any taxable year in which the taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)), the allowance for percentage depletion shall be zero.

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

525.

Limitation on deduction for tertiary injectants

(a)

In general

Section 193 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(d)

Application with respect to major integrated oil companies

This section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)).

.

(b)

Effective date

The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.

II

Outer Continental Shelf oil and natural gas

531.

Repeal of outer Continental Shelf deep water and deep gas royalty relief

(a)

In general

Sections 344 and 345 of the Energy Policy Act of 2005 (42 U.S.C. 15904, 15905) are repealed.

(b)

Administration

The Secretary of the Interior shall not be required to provide for royalty relief in the lease sale terms beginning with the first lease sale held on or after the date of enactment of this Act for which a final notice of sale has not been published.