II 

112TH CONGRESS 

1ST SESSION S. 1960 

To provide incentives to create American jobs. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 7, 2011 

Ms. COLLINS (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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Jobs Creation Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 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 


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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. 


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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. 

1 TITLE I—TAX INCENTIVES 

2 Subtitle A—Payroll Tax Holiday 

3 SEC. 101. EXTENSION OF PAYROLL TAX HOLIDAY. 

4 Section 601(c) of the Tax Relief, Unemployment In5 surance Reauthorization, and Job Creation Act of 2010 

6 (26 U.S.C. 1401 note) is amended by striking ‘‘year 

7 2011’’ and inserting ‘‘years 2011 and 2012’’. 

8 SEC. 102. TEMPORARY EMPLOYER PAYROLL TAX CUT. 

9 (a) IN GENERAL.— 

10 (1) EMPLOYERS.—Section 601(a) of the Tax 

11 Relief, Unemployment Insurance Reauthorization, 

12 and Job Creation Act of 2010 (26 U.S.C. 1401 

13 note) is amended by striking ‘‘and’’ at the end of 

14 paragraph (1), by striking the period at the end of 


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1 paragraph (2), and by adding at the end the fol2 lowing new paragraph: 

3 ‘‘(3) with respect to remuneration paid during 

4 the payroll tax holiday period for qualified services, 

5 the rate of tax under 3111(a) of such Code shall be 

6 4.2 percent (including for purposes of determining 

7 the applicable percentage under sections 3221(a) of 

8 such Code).’’. 

9 (2) SELF-EMPLOYED INDIVIDUALS.—Section 

10 601(a) of such Act is amended by striking ‘‘10.40 

11 percent’’ in paragraph (1) and inserting ‘‘8.40 per12 cent’’. 

13 (b) QUALIFIED SERVICES.—Section 601 of the Tax 

14 Relief, Unemployment Insurance Reauthorization, and 

15 Job Creation Act of 2010 (26 U.S.C. 1401 note) is 

16 amended by adding at the end the following new sub17 section: 

18 ‘‘(f) QUALIFIED SERVICES.—For purposes of this 

19 section, the term ‘qualified services’ means services per20 formed— 

21 ‘‘(1) in a trade or business of a qualified em22 ployer, or 

23 ‘‘(2) in the case of a qualified employer exempt 

24 from tax under section 501(a) of the Internal Rev25 enue Code of 1986, in furtherance of the activities 


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1 related to the purpose or function constituting the 

2 basis of the employer’s exemption under section 501 

3 of such Code.’’. 

4 (c) CONFORMING AMENDMENTS.— 

5 (1) Section 601 of the Tax Relief, Unemploy6 ment Insurance Reauthorization, and Job Creation 

7 Act of 2010 is amended by striking subsection (b). 

8 (2) Section 601(e)(2) of such Act is amended 

9 by striking ‘‘subsection (a)(2)’’ and inserting ‘‘para10 graphs (2) and (3) of subsection (a)’’. 

11 (3) The headings for title VI and section 601 

12 of such Act are each amended by striking ‘‘em13 ployee’’. 

14 (d) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to wages paid and self-employment 

16 income earned after December 31, 2011. 

17 Subtitle B—American Opportunity 

18 SEC. 111. SHORT TITLE. 

19 This subtitle may be cited as the ‘‘American Oppor20 tunity Act of 2011’’. 

21 SEC. 112. ANGEL INVESTMENT TAX CREDIT. 

22 (a) IN GENERAL.—Subpart B of part IV of sub23 chapter A of chapter 1 of the Internal Revenue Code of 

24 1986 is amended by adding at the end the following new 

25 section: 


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1 ‘‘SEC. 30E. ANGEL INVESTMENT TAX CREDIT. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al3 lowed as a credit against the tax imposed by this chapter 

4 for the taxable year an amount equal to 25 percent of the 

5 qualified equity investments made by a qualified investor 

6 during the taxable year. 

7 ‘‘(b) QUALIFIED EQUITY INVESTMENT.—For pur8 poses of this section— 

9 ‘‘(1) IN GENERAL.—The term ‘qualified equity 

10 investment’ means any equity investment in a quali11 fied small business entity if— 

12 ‘‘(A) such investment is acquired by the 

13 taxpayer at its original issue (directly or 

14 through an underwriter) solely in exchange for 

15 cash, and 

16 ‘‘(B) such investment is designated for 

17 purposes of this section by the qualified small 

18 business entity. 

19 ‘‘(2) EQUITY INVESTMENT.—The term ‘equity 

20 investment’ means— 

21 ‘‘(A) any form of equity, including a gen22 eral or limited partnership interest, common 

23 stock, preferred stock (other than nonqualified 

24 preferred stock as defined in section 351(g)(2)), 

25 with or without voting rights, without regard to 

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1 ible into common stock or any form of subordi2 nate or convertible debt, or both, with warrants 

3 or other means of equity conversion, and 

4 ‘‘(B) any capital interest in an entity 

5 which is a partnership. 

6 ‘‘(3) REDEMPTIONS.—A rule similar to the rule 

7 of section 1202(c)(3) shall apply for purposes of this 

8 subsection. 

9 ‘‘(c) QUALIFIED SMALL BUSINESS ENTITY.—For 

10 purposes of this section— 

11 ‘‘(1) IN GENERAL.—The term ‘qualified small 

12 business entity’ means any domestic corporation or 

13 partnership if such corporation or partnership— 

14 ‘‘(A) is a small business (as defined in sec15 tion 41(b)(3)(D)(iii)), 

16 ‘‘(B) has its headquarters in the United 

17 States, 

18 ‘‘(C) is engaged in a high technology trade 

19 or business related to— 

20 ‘‘(i) advanced materials, nanotechnol21 ogy, or precision manufacturing, 

22 ‘‘(ii) aerospace, aeronautics, or de23 fense, 

24 ‘‘(iii) biotechnology or pharma25 ceuticals, 


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1 ‘‘(iv) electronics, semiconductors, soft2 ware, or computer technology, 

3 ‘‘(v) energy, environment, or clean 

4 technologies, 

5 ‘‘(vi) forest products or agriculture, 

6 ‘‘(vii) information technology, commu7 nication technology, digital media, or 

8 photonics, 

9 ‘‘(viii) life sciences or medical 

10 sciences, 

11 ‘‘(ix) marine technology or aqua12 culture, 

13 ‘‘(x) transportation, or 

14 ‘‘(xi) any other high technology trade 

15 or business as determined by the Sec16 retary, 

17 ‘‘(D) has been in existence for less than 5 

18 years as of the date of the qualified equity in19 vestment, 

20 ‘‘(E) employs less than 100 full-time equiv21 alent employees as of the date of such invest22 ment, 

23 ‘‘(F) has more than 50 percent of the em24 ployees performing substantially all of their 


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1 services in the United States as of the date of 

2 such investment, and 

3 ‘‘(G) has equity investments designated for 

4 purposes of this paragraph. 

5 ‘‘(2) DESIGNATION OF EQUITY INVEST6 MENTS.—For purposes of paragraph (1)(G), an eq7 uity investment shall not be treated as designated if 

8 such designation would result in the aggregate 

9 amount which may be taken into account under this 

10 section with respect to equity investments in such 

11 corporation or partnership exceeds— 

12 ‘‘(A) $10,000,000, taking into account the 

13 total amount of all qualified equity investments 

14 made by all taxpayers for the taxable year and 

15 all preceding taxable years, 

16 ‘‘(B) $2,000,000, taking into account the 

17 total amount of all qualified equity investments 

18 made by all taxpayers for such taxable year, 

19 and 

20 ‘‘(C) $1,000,000, taking into account the 

21 total amount of all qualified equity investments 

22 made by the taxpayer for such taxable year. 

23 ‘‘(d) QUALIFIED INVESTOR.—For purposes of this 

24 section— 


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1 ‘‘(1) IN GENERAL.—The term ‘qualified inves2 tor’ means an accredited investor, as defined by the 

3 Securities and Exchange Commission, investor net4 work, or investor fund who review new or proposed 

5 businesses for potential investment. 

6 ‘‘(2) INVESTOR NETWORK.—The term ‘investor 

7 network’ means a group of accredited investors orga8 nized for the sole purpose of making qualified equity 

9 investments. 

10 ‘‘(3) INVESTOR FUND.— 

11 ‘‘(A) IN GENERAL.—The term ‘investor 

12 fund’ means a corporation that for the applica13 ble taxable year is treated as an S corporation 

14 or a general partnership, limited partnership, 

15 limited liability partnership, trust, or limited li16 ability company and which for the applicable 

17 taxable year is not taxed as a corporation. 

18 ‘‘(B) ALLOCATION OF CREDIT.— 

19 ‘‘(i) IN GENERAL.—Except as pro20 vided in clause (ii), the credit allowed 

21 under subsection (a) shall be allocated to 

22 the shareholders or partners of the investor 

23 fund in proportion to their ownership in24 terest or as specified in the fund’s organi25 zational documents, except that tax-exempt 


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1 investors shall be allowed to transfer their 

2 interest to investors within the fund in ex3 change for future financial consideration. 

4 ‘‘(ii) SINGLE MEMBER LIMITED LI5 ABILITY COMPANY.—If the investor fund is 

6 a single member limited liability company 

7 that is disregarded as an entity separate 

8 from its owner, the credit allowed under 

9 subsection (a) may be claimed by such lim10 ited liability company’s owner, if such 

11 owner is a person subject to the tax under 

12 this title. 

13 ‘‘(4) EXCLUSION.—The term ‘qualified investor’ 

14 does not include— 

15 ‘‘(A) a person controlling at least 50 per16 cent of the qualified small business entity, 

17 ‘‘(B) an employee of such entity, or 

18 ‘‘(C) any bank, bank and trust company, 

19 insurance company, trust company, national 

20 bank, savings association or building and loan 

21 association for activities that are a part of its 

22 normal course of business. 

23 ‘‘(e) NATIONAL LIMITATION ON AMOUNT OF INVEST24 MENTS DESIGNATED.— 


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1 ‘‘(1) IN GENERAL.—There is an angel invest2 ment tax credit limitation of $500,000,000 for each 

3 of calendar years 2011 through 2015. 

4 ‘‘(2) ALLOCATION OF LIMITATION.—The limita5 tion under paragraph (1) shall be allocated by the 

6 Secretary among qualified small business entities se7 lected by the Secretary. 

8 ‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If 

9 the angel investment tax credit limitation for any 

10 calendar year exceeds the aggregate amount allo11 cated under paragraph (2) for such year, such limi12 tation for the succeeding calendar year shall be in13 creased by the amount of such excess. No amount 

14 may be carried under the preceding sentence to any 

15 calendar year after 2020. 

16 ‘‘(f) APPLICATION WITH OTHER CREDITS.— 

17 ‘‘(1) BUSINESS CREDIT TREATED AS PART OF

18 GENERAL BUSINESS CREDIT.—Except as provided in 

19 paragraph (2), the credit which would be allowed 

20 under subsection (a) for any taxable year (deter21 mined without regard to this subsection) shall be 

22 treated as a credit listed in section 38(b) for such 

23 taxable year (and not allowed under subsection (a)). 

24 ‘‘(2) PERSONAL CREDIT.— 


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1 ‘‘(A) IN GENERAL.—In the case of an indi2 vidual who elects the application of this para3 graph, for purposes of this title, the credit al4 lowed under subsection (a) for any taxable year 

5 (determined after application of paragraph (1)) 

6 shall be treated as a credit allowable under sub7 part A for such taxable year. 

8 ‘‘(B) LIMITATION BASED ON AMOUNT OF

9 TAX.—In the case of a taxable year to which 

10 section 26(a)(2) does not apply, the credit al11 lowed under subpart A for any taxable year (de12 termined after application of paragraph (1)) by 

13 reason of subparagraph (A) shall not exceed the 

14 excess of— 

15 ‘‘(i) the sum of the regular tax liabil16 ity (as defined in section 26(b)) plus the 

17 tax imposed by section 55, over 

18 ‘‘(ii) the sum of the credits allowable 

19 under subpart A (other than this section) 

20 and section 27 for the taxable year. 

21 ‘‘(C) CARRYFORWARD OF UNUSED CRED22 IT.—If the credit allowable under subsection (a) 

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1 able year, reduced by the sum of the credits al2 lowable under subpart A (other than this sec3 tion) for such taxable year, such excess shall be 

4 carried to each of the succeeding 20 taxable 

5 years to the extent that such unused credit may 

6 not be taken into account under subsection (a) 

7 by reason of subparagraph (A) for a prior tax8 able year because of such limitation. 

9 ‘‘(g) SPECIAL RULES.— 

10 ‘‘(1) RELATED PARTIES.—For purposes of this 

11 section— 

12 ‘‘(A) IN GENERAL.—All related persons 

13 shall be treated as 1 person. 

14 ‘‘(B) RELATED PERSONS.—A person shall 

15 be treated as related to another person if the 

16 relationship between such persons would result 

17 in the disallowance of losses under section 267 

18 or 707(b). 

19 ‘‘(2) BASIS.—For purposes of this subtitle, the 

20 basis of any investment with respect to which a cred21 it is allowable under this section shall be reduced by 

22 the amount of such credit so allowed. This sub23 section shall not apply for purposes of sections 1202, 

24 1397B, and 1400B. 


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1 ‘‘(3) RECAPTURE.—The Secretary shall, by reg2 ulations, provide for recapturing the benefit of any 

3 credit allowable under subsection (a) with respect to 

4 any qualified equity investment which is held by the 

5 taxpayer less than 3 years, except that no benefit 

6 shall be recaptured in the case of— 

7 ‘‘(A) transfer of such investment by reason 

8 of the death of the taxpayer, 

9 ‘‘(B) transfer between spouses, 

10 ‘‘(C) transfer incident to the divorce (as 

11 defined in section 1041) of such taxpayer, or 

12 ‘‘(D) a transaction to which section 381(a) 

13 applies (relating to certain acquisitions of the 

14 assets of one corporation by another corpora15 tion). 

16 ‘‘(h) REGULATIONS.—The Secretary shall prescribe 

17 such regulations as may be appropriate to carry out this 

18 section, including regulations— 

19 ‘‘(1) which prevent the abuse of the purposes of 

20 this section, 

21 ‘‘(2) which impose appropriate reporting re22 quirements, and 

23 ‘‘(3) which apply the provisions of this section 

24 to newly formed entities.’’. 


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1 (b) CREDIT MADE PART OF GENERAL BUSINESS

2 CREDIT.—Subsection (b) of section 38 of the Internal 

3 Revenue Code of 1986 is amended— 

4 (1) in paragraph (35), by striking ‘‘plus’’; 

5 (2) in paragraph (36), by striking the period at 

6 the end and inserting ‘‘, plus’’; and 

7 (3) by adding at the end the following new 

8 paragraph: 

9 ‘‘(37) the portion of the angel investment tax 

10 credit to which section 30E(f)(1) applies.’’. 

11 (c) CONFORMING AMENDMENTS.— 

12 (1) Section 1016(a) of the Internal Revenue 

13 Code of 1986 is amended by striking ‘‘and’’ at the 

14 end of paragraph (36), by striking the period at the 

15 end of paragraph (37) and inserting ‘‘, and’’, and by 

16 inserting after paragraph (37) the following new 

17 paragraph: 

18 ‘‘(38) to the extent provided in section 

19 30E(g)(2).’’. 

20 (2) Section 24(b)(3)(B) of such Code is amend21 ed by striking ‘‘and 30D’’ and inserting ‘‘30D, and 

22 30E’’. 

23 (3) Section 25(e)(1)(C)(ii) of such Code is 

24 amended by inserting ‘‘30E,’’ after ‘‘30D,’’. 


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1 (4) Section 25A(i)(5)(B) of such Code is 

2 amended by striking ‘‘and 30D’’ and inserting ‘‘, 

3 30D, and 30E’’. 

4 (5) Section 25A(i)(5) of such Code is amended 

5 by inserting ‘‘30E,’’ after ‘‘30D,’’. 

6 (6) Section 25B(g)(2) of such Code is amended 

7 by striking ‘‘and 30D’’ and inserting ‘‘30D, and 

8 30E’’. 

9 (7) Section 26(a)(1) of such Code is amended 

10 by striking ‘‘and 30D’’ and inserting ‘‘30D, and 

11 30E’’. 

12 (8) Section 30(c)(2)(B)(ii) of such Code is 

13 amended by striking ‘‘and 30D’’ and inserting ‘‘, 

14 30D, and 30E’’. 

15 (9) Section 30B(g)(2)(B)(ii) of such Code is 

16 amended by striking ‘‘and 30D’’ and inserting 

17 ‘‘30D, and 30E’’. 

18 (10) Section 30D(d)(2)(B)(ii) of such Code is 

19 amended by striking ‘‘and 25D’’ and inserting ‘‘, 

20 25D, and 30E’’. 

21 (11) Section 904(i) of such Code is amended by 

22 striking ‘‘and 30D’’ and inserting ‘‘30D, and 30E’’. 

23 (12) Section 1400C(d)(2) of such Code is 

24 amended by striking ‘‘and 30D’’ and inserting 

25 ‘‘30D, and 30E’’. 


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1 (d) CLERICAL AMENDMENT.—The table of sections 

2 for subpart B of part IV of subchapter A of chapter 1 

3 of the Internal Revenue Code of 1986 is amended by add4 ing at the end the following new item: 

‘‘Sec. 30E. Angel investment tax credit.’’. 

5 (e) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to investments made after Decem7 ber 31, 2010, in taxable years ending after such date. 

8 (f) REGULATIONS ON ALLOCATION OF NATIONAL

9 LIMITATION.—Not later than 120 days after the date of 

10 the enactment of this Act, the Secretary of the Treasury 

11 or the Secretary’s delegate shall prescribe regulations 

12 which specify— 

13 (1) how small business entities shall apply for 

14 an allocation under section 30E(e)(2) of the Internal 

15 Revenue Code of 1986, as added by this section, 

16 (2) the competitive procedure through which 

17 such allocations are made, 

18 (3) the criteria for determining an allocation to 

19 a small business entity, including— 

20 (A) whether the small business entity is lo21 cated in a State that is historically underserved 

22 by angel investors and venture capital investors, 

23 (B) whether the small business entity has 

24 received an angel investment tax credit, or its 


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1 equivalent, from the State in which the small 

2 business entity is located and registered, 

3 (C) whether small business entities in low4 , medium-, and high-population density States 

5 are receiving allocations, and 

6 (D) whether the small business entity has 

7 been awarded a Small Business Innovative Re8 search or Small Business Technology Transfer 

9 grant from a Federal agency, 

10 (4) the actions that such Secretary or delegate 

11 shall take to ensure that such allocations are prop12 erly made to qualified small business entities, and 

13 (5) the actions that such Secretary or delegate 

14 shall take to ensure that angel investment tax cred15 its are allocated and issued to the taxpayer. 

16 (g) AUDIT AND REPORT.—Not later than January 

17 31, 2014, the Comptroller General of the United States, 

18 pursuant to an audit of the angel investment tax credit 

19 program established under section 30E of the Internal 

20 Revenue Code of 1986 (as added by subsection (a)), shall 

21 report to Congress on such program, including all quali22 fied small business entities that receive an allocation of 

23 an angel investment credit under such section. 


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1 Subtitle C—Extension of Expiring 

2 Provisions 

3 SEC. 121. EXTENSION OF BONUS DEPRECIATION. 

4 (a) IN GENERAL.—Paragraph (2) of section 168(k) 

5 is amended— 

6 (1) by striking ‘‘January 1, 2014’’ in subpara7 graph (A)(iv) and inserting ‘‘January 1, 2015’’, and 

8 (2) by striking ‘‘January 1, 2013’’ each place 

9 it appears and inserting ‘‘January 1, 2014’’. 

10 (b) 100 PERCENT EXPENSING.—Paragraph (5) of 

11 section 168(k) is amended— 

12 (1) by striking ‘‘January 1, 2013’’ and insert13 ing ‘‘January 1, 2014’’, and 

14 (2) by striking ‘‘January 1, 2012’’ each place 

15 it appears and inserting ‘‘January 1, 2013’’. 

16 (c) EXTENSION OF ELECTION TO ACCELERATE THE

17 AMT CREDIT IN LIEU OF BONUS DEPRECIATION.— 

18 (1) IN GENERAL.—Subclause (II) of section 

19 168(k)(4)(D)(iii) is amended by striking ‘‘2013’’ and 

20 inserting ‘‘2014’’. 

21 (2) ROUND 3 EXTENSION PROPERTY.—Para22 graph (4) of section 168(k) is amended by adding at 

23 the end the following new subparagraph: 

24 ‘‘(J) SPECIAL RULES FOR ROUND 3 EX25 TENSION PROPERTY.— 


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1 ‘‘(i) IN GENERAL.—In the case of 

2 round 3 extension property, this paragraph 

3 shall be applied without regard to— 

4 ‘‘(I) the limitation described in 

5 subparagraph (B)(i) thereof, and 

6 ‘‘(II) the business credit increase 

7 amount under subparagraph (E)(iii) 

8 thereof. 

9 ‘‘(ii) TAXPAYERS PREVIOUSLY ELECT10 ING ACCELERATION.—In the case of a tax11 payer who made the election under sub12 paragraph (A) for its first taxable year 

13 ending after March 31, 2008, a taxpayer 

14 who made the election under subparagraph 

15 (H)(ii) for its first taxable year ending 

16 after December 31, 2008, or a taxpayer 

17 who made the election under subparagraph 

18 (I)(iii) for its first taxable year ending 

19 after December 31, 2010— 

20 ‘‘(I) the taxpayer may elect not 

21 to have this paragraph apply to round 

22 3 extension property, but 

23 ‘‘(II) if the taxpayer does not 

24 make the election under subclause (I), 

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1 payer the bonus depreciation amount, 

2 maximum amount, and maximum in3 crease amount shall be computed and 

4 applied to eligible qualified property 

5 which is round 3 extension property. 

6 The amounts described in subclause (II) 

7 shall be computed separately from any 

8 amounts computed with respect to eligible 

9 qualified property which is not round 2 ex10 tension property. 

11 ‘‘(iii) TAXPAYERS NOT PREVIOUSLY

12 ELECTING ACCELERATION.—In the case of 

13 a taxpayer who neither made the election 

14 under subparagraph (A) for its first tax15 able year ending after March 31, 2008, 

16 nor made the election under subparagraph 

17 (H)(ii) for its first taxable year ending 

18 after December 31, 2008, nor made the 

19 election under subparagraph (I)(iii) for its 

20 first taxable year ending after December 

21 31, 2010— 

22 ‘‘(I) the taxpayer may elect to 

23 have this paragraph apply to its first 

24 taxable year ending after December 


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1 31, 2011, and each subsequent tax2 able year, and 

3 ‘‘(II) if the taxpayer makes the 

4 election under subclause (I), this 

5 paragraph shall only apply to eligible 

6 qualified property which is round 3 

7 extension property. 

8 ‘‘(iv) ROUND 3 EXTENSION PROP9 ERTY.—For purposes of this subpara10 graph, the term ‘round 3 extension prop11 erty’ means property which is eligible 

12 qualified property solely by reason of the 

13 extension of the application of the special 

14 allowance under paragraph (1) pursuant to 

15 the amendments made by section 7(a) of 

16 the Small Business Jobs Tax Extenders 

17 Act of 2011 (and the application of such 

18 extension to this paragraph pursuant to 

19 the amendment made by section 7(c)(1) of 

20 such Act).’’. 

21 (d) CONFORMING AMENDMENTS.— 

22 (1) The heading for subsection (k) of section 

23 168 is amended by striking ‘‘JANUARY 1, 2013’’ and 

24 inserting ‘‘JANUARY 1, 2014’’. 


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1 (2) The heading for clause (ii) of section 

2 168(k)(2)(B) is amended by striking ‘‘PRE-JANUARY

3 1, 2013’’ and inserting ‘‘PRE-JANUARY 1, 2014’’. 

4 (3) Paragraph (5) of section 168(l) is amend5 ed— 

6 (A) by striking ‘‘and’’ at the end of sub7 paragraph (A), 

8 (B) by redesignating subparagraph (C) as 

9 subparagraph (B), and 

10 (C) by inserting after subparagraph (A) 

11 the following new subparagraph: 

12 ‘‘(B) by substituting ‘January 1, 2013’ for 

13 ‘January 1, 2014’ in clause (i) thereof, and’’. 

14 (4) Subparagraph (C) of section 168(n)(2) is 

15 amended by striking ‘‘January 1, 2013’’ and insert16 ing ‘‘January 1, 2014’’. 

17 (5) Subparagraph (D) of section 1400L(b)(2) is 

18 amended by striking ‘‘January 1, 2013’’ and insert19 ing ‘‘January 1, 2014’’. 

20 (6) Subparagraph (B) of section 1400N(d)(3) 

21 is amended by striking ‘‘January 1, 2013’’ and in22 serting ‘‘January 1, 2014’’. 

23 (e) EFFECTIVE DATES.—The amendments made by 

24 this section shall apply to property placed in service after 


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1 December 31, 2011, in taxable years ending after such 

2 date. 

3 SEC. 122. DEDUCTION FOR QUALIFIED TUITION AND RE4 LATED EXPENSES. 

5 (a) IN GENERAL.—Subsection (e) of section 222 of 

6 the Internal Revenue Code of 1986 is amended by striking 

7 ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

8 2012’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2011. 

12 SEC. 123. RESEARCH CREDIT. 

13 (a) IN GENERAL.—Subparagraph (B) of section 

14 41(h)(1) of the Internal Revenue Code of 1986 is amended 

15 by striking ‘‘December 31, 2011’’ and inserting ‘‘Decem16 ber 31, 2012’’. 

17 (b) CONFORMING AMENDMENT.—Subparagraph (D) 

18 of section 45C(b)(1) of such Code is amended by striking 

19 ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

20 2012’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to amounts paid or incurred after 

23 December 31, 2011. 


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1 SEC. 124. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR 

2 QUALIFIED LEASEHOLD IMPROVEMENTS, 

3 QUALIFIED RESTAURANT BUILDINGS AND IM4 PROVEMENTS, AND QUALIFIED RETAIL IM5 PROVEMENTS. 

6 (a) IN GENERAL.—Clauses (iv), (v), and (ix) of sec7 tion 168(e)(3)(E) of the Internal Revenue Code of 1986 

8 are each amended by striking ‘‘January 1, 2012’’ and in9 serting ‘‘January 1, 2013’’. 

10 (b) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to property placed in service after 

12 December 31, 2011. 

13 SEC. 125. ENHANCED CHARITABLE DEDUCTION FOR CON14 TRIBUTIONS OF FOOD INVENTORY. 

15 (a) IN GENERAL.—Clause (iv) of section 

16 170(e)(3)(C) of the Internal Revenue Code of 1986 is 

17 amended by striking ‘‘December 31, 2011’’ and inserting 

18 ‘‘December 31, 2012’’. 

19 (b) EFFECTIVE DATE.—The amendment made by 

20 this section shall apply to contributions made after De21 cember 31, 2011. 

22 SEC. 126. ENHANCED CHARITABLE DEDUCTION FOR CON23 TRIBUTIONS OF BOOK INVENTORIES TO PUB24 LIC SCHOOLS. 

25 (a) IN GENERAL.—Clause (iv) of section 

26 170(e)(3)(D) of the Internal Revenue Code of 1986 is 


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1 amended by striking ‘‘December 31, 2011’’ and inserting 

2 ‘‘December 31, 2012’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 this section shall apply to contributions made after De5 cember 31, 2011. 

6 SEC. 127. ENHANCED CHARITABLE DEDUCTION FOR COR7 PORATE CONTRIBUTIONS OF COMPUTER IN8 VENTORY FOR EDUCATIONAL PURPOSES. 

9 (a) IN GENERAL.—Subparagraph (G) of section 

10 170(e)(6) of the Internal Revenue Code of 1986 is amend11 ed by striking ‘‘December 31, 2011’’ and inserting ‘‘De12 cember 31, 2012’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to contributions made in taxable 

15 years beginning after December 31, 2011. 

16 TITLE II—INFRASTRUCTURE 

17 PROVISIONS 

18 SEC. 201. CAPITALIZATION OF STATE INFRASTRUCTURE 

19 BANKS. 

20 Section 610 of title 23, United States Code, is 

21 amended— 

22 (1) in subsection (d)— 

23 (A) by redesignating paragraphs (5) and 

24 (6) as paragraphs (6) and (7), respectively; and 


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1 (B) by inserting after paragraph (4) the 

2 following: 

3 ‘‘(5) SPECIAL SINGLE ALLOCATION.— 

4 ‘‘(A) IN GENERAL.—Subject to subpara5 graph (C), of the funds made available under 

6 subparagraph (D), the Secretary shall allocate 

7 to each State a proportional amount in the 

8 manner required under this section for a 1-time 

9 deposit into the State infrastructure bank, for 

10 use in accordance with this section. 

11 ‘‘(B) CERTAIN USES OF FUNDS.—A State 

12 may use an amount equal to 20 percent of the 

13 funds allocated under subparagraph (A) for— 

14 ‘‘(i) investigating the viability of iden15 tifying revenue sources for repayment for 

16 projects; 

17 ‘‘(ii) technical assistance; 

18 ‘‘(iii) promotion to potential bor19 rowers; and 

20 ‘‘(iv) other activities that would en21 hance the project pipeline. 

22 ‘‘(C) NONPARTICIPATING STATES.— 

23 ‘‘(i) IN GENERAL.—The Secretary 

24 shall allocate to each State that elects not 

25 to establish, or is prohibited by State law 


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1 from establishing, an infrastructure bank 

2 under this section an amount equal to, at 

3 the election of the State— 

4 ‘‘(I) 20 percent of the amount 

5 that would otherwise be allocated to 

6 the State under subparagraph (A) 

7 for— 

8 ‘‘(aa) investigating the via9 bility of establishing such an in10 frastructure bank in the State; 

11 ‘‘(bb) identifying revenue 

12 sources for repayment for 

13 projects; 

14 ‘‘(cc) technical assistance; 

15 ‘‘(dd) promotion to potential 

16 borrowers; and 

17 ‘‘(ee) other activities that 

18 would enhance the project pipe19 line; or 

20 ‘‘(II) 10 percent of the amount 

21 that would otherwise be allocated to 

22 the State under subparagraph (A) for 

23 use for other surface transportation 

24 projects authorized under this title or 

25 title 49. 


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1 ‘‘(ii) USE OF REMAINING FUNDS.— 

2 The amounts remaining after making an 

3 allocation to a State under clause (i) shall 

4 be redistributed by the Secretary to States 

5 with infrastructure banks under this sec6 tion in accordance with subparagraph (A). 

7 ‘‘(D) FUNDING.— 

8 ‘‘(i) IN GENERAL.—On October 1, 

9 2012, out of any funds in the Treasury not 

10 otherwise appropriated, the Secretary of 

11 the Treasury shall transfer to the Sec12 retary to carry out this paragraph 

13 $10,000,000,000, to remain available until 

14 expended. 

15 ‘‘(ii) RECEIPT AND ACCEPTANCE.— 

16 The Secretary shall be entitled to receive, 

17 shall accept, and shall use to carry out this 

18 paragraph the funds transferred under 

19 clause (i), without further appropriation. 

20 ‘‘(E) NON-FEDERAL SHARE.—The non21 Federal share of the cost of a project carried 

22 out using an allocation under this paragraph 

23 shall be 10 percent.’’; and 

24 (2) by adding at the end the following: 

25 ‘‘(l) STUDIES AND REPORTS.— 


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1 ‘‘(1) ANNUAL FINANCIAL AUDIT.— 

2 ‘‘(A) IN GENERAL.—The special single al3 location described in subsection (d)(5)(A) shall 

4 be subject to an annual financial audit by an 

5 independent public accounting firm selected by 

6 the Inspector General to ensure that the State 

7 infrastructure bank meets generally accepted 

8 accounting principles. 

9 ‘‘(B) AVAILABILITY.—The Inspector Gen10 eral shall— 

11 ‘‘(i) submit to the appropriate com12 mittees of Congress the results of each 

13 audit carried out under subparagraph (A); 

14 and 

15 ‘‘(ii) publish the results of each audit 

16 carried out under subparagraph (A) on a 

17 publicly accessible Internet site of the De18 partment. 

19 ‘‘(2) ANNUAL PERFORMANCE EVALUATION.— 

20 ‘‘(A) IN GENERAL.—The Inspector General 

21 shall carry out an annual assessment— 

22 ‘‘(i) to evaluate the overall perform23 ance of the State infrastructure bank pro24 gram; and 


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1 ‘‘(ii) to determine the effectiveness of 

2 the program at meeting the objectives and 

3 strategy goals of the program. 

4 ‘‘(B) INITIAL REVIEW.—In the first annual 

5 assessment carried out under this paragraph, 

6 the Inspector General shall include a report 

7 that describes— 

8 ‘‘(i) each State that has established a 

9 State infrastructure bank under this sec10 tion; and 

11 ‘‘(ii)(I) each State that elected not to 

12 establish, or is prohibited by State law 

13 from establishing, such an infrastructure 

14 bank; and 

15 ‘‘(II) each State described in sub16 clause (I) that is investigating the viability 

17 of establishing an infrastructure bank in 

18 the State under this section. 

19 ‘‘(C) DISSEMINATION.—The Inspector 

20 General shall submit to the appropriate commit21 tees of Congress a report that contains the re22 sults of each annual assessment carried out 

23 under this paragraph.’’. 


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1 SEC. 202. HIGHWAY INFRASTRUCTURE INVESTMENT. 

2 (a) IN GENERAL.—Out of any funds in the Treasury 

3 not otherwise appropriated, there is appropriated to the 

4 Secretary of Transportation (referred to in this section as 

5 the ‘‘Secretary’’) $25,000,000,000 for— 

6 (1) construction, reconstruction, rehabilitation, 

7 resurfacing, restoration, and operational improve8 ments for highways (including Interstate highways) 

9 and bridges (including bridges on public roads of all 

10 functional classifications); 

11 (2) the seismic retrofit and painting of bridges 

12 and approaches to bridges and other elevated struc13 tures; and 

14 (3) the cost of mitigation eligible under title 23, 

15 United States Code, necessary to address adverse 

16 impacts of projects funded under this Act. 

17 (b) FEDERAL SHARE; LIMITATION ON OBLIGA18 TIONS.— 

19 (1) FEDERAL SHARE.—The Federal share pay20 able on account of any project or activity carried out 

21 using funds made available under this section shall 

22 be, at the option of the recipient, up to 100 percent 

23 of the total cost of the project or activity. 

24 (2) LIMITATION ON OBLIGATIONS.—The funds 

25 made available under this section shall not be sub26 ject to any limitation on obligations for Federal-aid 


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1 highways and highway safety construction programs 

2 established under title 23, United States Code, or 

3 any other provision of law. 

4 (c) AVAILABILITY.—The funds made available under 

5 this section shall be available for obligation until the date 

6 that is 2 years after the date of enactment of this Act. 

7 (d) DISTRIBUTION OF FUNDS.—After making the 

8 set-aside under subsection (h), the Secretary shall appor9 tion the funds made available under this section among 

10 States in the same ratio as amounts apportioned among 

11 States for fiscal year 2011 under the Surface Transpor12 tation Extension Act of 2010 (Public Law 111–147; 124 

13 Stat. 78). 

14 (e) APPORTIONMENT.—The apportionments under 

15 subsection (d) shall be made not later than 30 days after 

16 the date of enactment of this Act. 

17 (f) REDISTRIBUTION.— 

18 (1) UNOBLIGATED FUNDS.—Subject to para19 graph (2), not later than 1 year after the date on 

20 which the apportionments are made under sub21 section (e), the Secretary shall— 

22 (A) withdraw from each recipient of funds 

23 apportioned under subsection (e) any unobli24 gated funds; and 


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1 (B) redistribute those amounts in the man2 ner described in the Surface Transportation 

3 Extension Act of 2010 (Public Law 111–147; 

4 124 Stat. 78) to States that have had no funds 

5 withdrawn under this paragraph (excluding 

6 States that have opted not to obligate funds 

7 under this section). 

8 (2) EXTENSIONS.— 

9 (A) IN GENERAL.—Subject to subpara10 graph (B), at the request of a State, the Sec11 retary may provide an extension of the 1-year 

12 period described in paragraph (1) only to the 

13 extent that the Secretary determines that the 

14 State has encountered— 

15 (i) extreme conditions that create an 

16 unworkable bidding environment; or 

17 (ii) other extenuating circumstances. 

18 (B) NOTICE.—Before granting an exten19 sion under subparagraph (A), the Secretary 

20 shall submit to the Committee on Transpor21 tation and Infrastructure of the House of Rep22 resentatives and the Committee on Environ23 ment and Public Works of the Senate a written 

24 notice providing a thorough justification for the 

25 extension. 


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1 (g) CONDITIONS.— 

2 (1) IN GENERAL.—Funds made available under 

3 this section shall be administered as if apportioned 

4 under chapter 1 of title 23, United States Code. 

5 (2) ADVANCE CONSTRUCTION.—Funds made 

6 available under this section shall not be obligated for 

7 the purposes authorized under section 115(b) of title 

8 23, United States Code. 

9 (3) FUNDS UNDER OTHER ACTS.—Funds made 

10 available under this section— 

11 (A) shall be in addition to all funds pro12 vided for fiscal year 2012 for ‘‘Federal-aid 

13 Highways’’ in any other Act; and 

14 (B) shall not affect the distribution of any 

15 such funds. 

16 (4) DISADVANTAGED BUSINESS ENTER17 PRISES.—Section 1101(b) of Public Law 109–59 

18 (23 U.S.C. 101 note; 119 Stat. 1156) shall apply to 

19 the funds apportioned under this section. 

20 (h) OVERSIGHT.—The Secretary may set aside not 

21 more than 0.15 percent of the funds made available under 

22 this section to fund oversight by the Administrator of the 

23 Federal Highway Administration of projects and activities 

24 carried out using funds made available to the Federal 


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1 Highway Administration by this Act, to remain available 

2 through September 30, 2015. 

3 SEC. 203. STATE REVOLVING LOAN FUNDS. 

4 (a) IN GENERAL.—In addition to any other amounts 

5 made available under Federal law, on October 1, 2012, 

6 out of any funds in the Treasury not otherwise appro7 priated, the Secretary of the Treasury shall transfer to 

8 the Administrator of the Environmental Protection Agen9 cy $800,000,000, to remain available until expended— 

10 (1) for State water pollution control revolving 

11 funds under title VI of the Federal Water Pollution 

12 Control Act (33 U.S.C. 1381 et seq.); and 

13 (2) for State drinking water treatment revolving 

14 loan funds under section 1452 of the Safe Drinking 

15 Water Act (42 U.S.C. 300j–12). 

16 (b) RECEIPT AND ACCEPTANCE.—The Administrator 

17 of the Environmental Protection Agency shall be entitled 

18 to receive, shall accept, and shall use in accordance with 

19 paragraphs (1) and (2) of subsection (a) the funds trans20 ferred under that subsection, without further appropria21 tion. 


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1 TITLE III—REGULATORY 

2 REFORM 

3 Subtitle A—Clearing Unnecessary 

4 Regulatory Burdens 

5 SEC. 301. SHORT TITLE. 

6 This subtitle may be cited as the ‘‘Clearing Unneces7 sary Regulatory Burdens Act’’ or the ‘‘CURB Act’’. 

8 SEC. 302. REGULATORY REFORM. 

9 (a) DEFINITIONS.—In this section— 

10 (1) the term ‘‘Administrator’’ means the Ad11 ministrator of the Office of Information and Regu12 latory Affairs in the Office of Management and 

13 Budget; 

14 (2) the term ‘‘agency’’ has the same meaning as 

15 in section 3502(1) of title 44, United States Code; 

16 (3) the term ‘‘economically significant guidance 

17 document’’ means a significant guidance document 

18 that may reasonably be anticipated to lead to an an19 nual effect on the economy of $100,000,000 or more 

20 or adversely affect in a material way the economy or 

21 a sector of the economy, except that economically 

22 significant guidance documents do not include guid23 ance documents on Federal expenditures and re24 ceipts; 

25 (4) the term ‘‘disseminated’’— 


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1 (A) means prepared by an agency and dis2 tributed to the public or regulated entities; and 

3 (B) does not include— 

4 (i) distribution limited to Federal 

5 Government employees; 

6 (ii) intra- or interagency use or shar7 ing of Federal Government information; 

8 and 

9 (iii) responses to requests for agency 

10 records under section 552 of title 5, 

11 United States Code (commonly referred to 

12 as the ‘‘Freedom of Information Act’’), 

13 section 552a of title 5, United States Code, 

14 (commonly referred to as the ‘‘Privacy 

15 Act’’), the Federal Advisory Committee 

16 Act (5 U.S.C. App.), or other similar laws; 

17 (5) the term ‘‘guidance document’’ means an 

18 agency statement of general applicability and future 

19 effect, other than a regulatory action, that sets forth 

20 a policy on a statutory, regulatory or technical issue 

21 or an interpretation of a statutory or regulatory 

22 issue; 

23 (6) the term ‘‘regulation’’ means an agency 

24 statement of general applicability and future effect, 

25 which the agency intends to have the force and efVerDate Mar 15 2010 02:42 Dec 08, 2011 Jkt 019200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S1960.IS S1960

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1 fect of law, that is designed to implement, interpret, 

2 or prescribe law or policy or to describe the proce3 dure or practice requirements of an agency; 

4 (7) the term ‘‘regulatory action’’ means any 

5 substantive action by an agency (normally published 

6 in the Federal Register) that promulgates or is ex7 pected to lead to the promulgation of a final regula8 tion, including notices of inquiry, advance notices of 

9 proposed rulemaking, and notices of proposed rule10 making; 

11 (8) the term ‘‘significant guidance document’’— 

12 (A) means a guidance document dissemi13 nated to regulated entities or the general public 

14 that may reasonably be anticipated to— 

15 (i) lead to an annual effect on the 

16 economy of $100,000,000 or more or affect 

17 in a material way the economy, a sector of 

18 the economy, productivity, competition, 

19 jobs, the environment, public health or 

20 safety, or State, local, or tribal govern21 ments or communities; 

22 (ii) create a serious inconsistency or 

23 otherwise interfere with an action taken or 

24 planned by another agency; 


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1 (iii) materially alter the budgetary im2 pact of entitlements, grants, user fees, or 

3 loan programs or the rights and obliga4 tions of recipients thereof; or 

5 (iv) raise novel legal or policy issues 

6 arising out of legal mandates and the pri7 orities, principles, and provisions of this 

8 section; and 

9 (B) does not include— 

10 (i) legal advisory opinions for internal 

11 Executive Branch use and not for release 

12 (such as Department of Justice Office of 

13 Legal Counsel opinions); 

14 (ii) briefs and other positions taken by 

15 agencies in investigations, pre-litigation, 

16 litigation, or other enforcement pro17 ceedings; 

18 (iii) speeches; 

19 (iv) editorials; 

20 (v) media interviews; 

21 (vi) press materials; 

22 (vii) congressional correspondence; 

23 (viii) guidance documents that pertain 

24 to a military or foreign affairs function of 

25 the United States (other than guidance on 


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1 procurement or the import or export of 

2 non-defense articles and services); 

3 (ix) grant solicitations; 

4 (x) warning letters; 

5 (xi) case or investigatory letters re6 sponding to complaints involving fact-spe7 cific determinations; 

8 (xii) purely internal agency policies; 

9 (xiii) guidance documents that pertain 

10 to the use, operation or control of a gov11 ernment facility; 

12 (xiv) internal guidance documents di13 rected solely to other agencies; and 

14 (xv) any other category of significant 

15 guidance documents exempted by an agen16 cy head in consultation with the Adminis17 trator; and 

18 (9) the term ‘‘significant regulatory action’’ 

19 means any regulatory action that is likely to result 

20 in a regulation that may— 

21 (A) have an annual effect on the economy 

22 of $100,000,000 or more or adversely affect in 

23 a material way the economy, a sector of the 

24 economy, productivity, competition, jobs, the 


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1 environment, public health or safety, or State, 

2 local, or tribal governments or communities; 

3 (B) create a serious inconsistency or other4 wise interfere with an action taken or planned 

5 by another agency; 

6 (C) materially alter the budgetary impact 

7 of entitlements, grants, user fees, or loan pro8 grams or the rights and obligations of recipi9 ents thereof; or 

10 (D) raise novel legal or policy issues aris11 ing out of legal mandates and the priorities, 

12 principles, and provisions of this section. 

13 (b) AGENCY ASSESSMENT OF SIGNIFICANT REGU14 LATORY ACTIONS.—For each significant regulatory ac15 tion, each agency shall submit, at such times specified by 

16 the Administrator, a report to the Office of Information 

17 and Regulatory Affairs that includes— 

18 (1) an assessment, including the underlying 

19 analysis, of benefits anticipated from the significant 

20 regulatory action, such as— 

21 (A) the promotion of the efficient func22 tioning of the economy and private markets; 

23 (B) the enhancement of health and safety; 

24 (C) the protection of the natural environ25 ment; and 


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1 (D) the elimination or reduction of dis2 crimination or bias; 

3 (2) to the extent feasible, a quantification of 

4 the benefits assessed under paragraph (1); 

5 (3) an assessment, including the underlying 

6 analysis, of costs anticipated from the regulatory ac7 tion, such as— 

8 (A) the direct cost both to the Federal 

9 Government in administering the significant 

10 regulatory action and to businesses, consumers, 

11 and others (including State, local, and tribal of12 ficials) in complying with the regulation; and 

13 (B) any adverse effects on the efficient 

14 functioning of the economy, private markets 

15 (including productivity, employment, and com16 petitiveness), health, safety, the natural envi17 ronment, job creation, the prices of consumer 

18 goods, and energy costs; 

19 (4) to the extent feasible, a quantification of 

20 the costs assessed under paragraph (3); and 

21 (5) an assessment, including the underlying 

22 analysis, of costs and benefits of potentially effective 

23 and reasonably feasible alternatives to the planned 

24 significant regulatory action, identified by the agen25 cy or the public (including improving the current 


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•S 1960 IS

1 regulation and reasonably viable nonregulatory ac2 tions), and an explanation why the planned regu3 latory action is preferable to the identified potential 

4 alternatives. 

5 (c) AGENCY GOOD GUIDANCE PRACTICES.— 

6 (1) AGENCY STANDARDS FOR SIGNIFICANT

7 GUIDANCE DOCUMENTS.— 

8 (A) APPROVAL PROCEDURES.— 

9 (i) IN GENERAL.—Each agency shall 

10 develop or have written procedures for the 

11 approval of significant guidance docu12 ments, which shall ensure that the issuance 

13 of significant guidance documents is ap14 proved by appropriate senior agency offi15 cials. 

16 (ii) REQUIREMENT.—Employees of an 

17 agency may not depart from significant 

18 guidance documents without appropriate 

19 justification and supervisory concurrence. 

20 (B) STANDARD ELEMENTS.—Each signifi21 cant guidance document— 

22 (i) shall— 

23 (I) include the term ‘‘guidance’’ 

24 or its functional equivalent; 


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1 (II) identify the agency or office 

2 issuing the document; 

3 (III) identify the activity to 

4 which and the persons to whom the 

5 significant guidance document applies; 

6 (IV) include the date of issuance; 

7 (V) note if the significant guid8 ance document is a revision to a pre9 viously issued guidance document and, 

10 if so, identify the document that the 

11 significant guidance document re12 places; 

13 (VI) provide the title of the docu14 ment and a document identification 

15 number; and 

16 (VII) include the citation to the 

17 statutory provision or regulation (in 

18 Code of Federal Regulations format) 

19 which the significant guidance docu20 ment applies to or interprets; and 

21 (ii) shall not include mandatory terms 

22 such as ‘‘shall’’, ‘‘must’’, ‘‘required’’, or 

23 ‘‘requirement’’ unless— 


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1 (I) the agency is using those 

2 terms to describe a statutory or regu3 latory requirement; or 

4 (II) the terminology is addressed 

5 to agency staff and will not foreclose 

6 agency consideration of positions ad7 vanced by affected private parties. 

8 (2) PUBLIC ACCESS AND FEEDBACK FOR SIG9 NIFICANT GUIDANCE DOCUMENTS.— 

10 (A) INTERNET ACCESS.— 

11 (i) IN GENERAL.—Each agency 

12 shall— 

13 (I) maintain on the Web site for 

14 the agency, or as a link on the Web 

15 site of the agency to the electronic list 

16 posted on a Web site of a component 

17 of the agency a list of the significant 

18 guidance documents in effect of the 

19 agency, including a link to the text of 

20 each significant guidance document 

21 that is in effect; and 

22 (II) not later than 30 days after 

23 the date on which a significant guid24 ance document is issued, update the 

25 list described in clause (i). 


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1 (ii) LIST REQUIREMENTS.—The list 

2 described in subparagraph (A)(i) shall— 

3 (I) include the name of each— 

4 (aa) significant guidance 

5 document; 

6 (bb) document identification 

7 number; and 

8 (cc) issuance and revision 

9 dates; and 

10 (II) identify significant guidance 

11 documents that have been added, re12 vised, or withdrawn in the preceding 

13 year. 

14 (B) PUBLIC FEEDBACK.— 

15 (i) IN GENERAL.—Each agency shall 

16 establish and clearly advertise on the Web 

17 site for the agency a means for the public 

18 to electronically submit— 

19 (I) comments on significant guid20 ance documents; and 

21 (II) a request for issuance, recon22 sideration, modification, or rescission 

23 of significant guidance documents. 


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1 (ii) AGENCY RESPONSE.—Any com2 ments or requests submitted under sub3 paragraph (A)— 

4 (I) are for the benefit of the 

5 agency; and 

6 (II) shall not require a formal re7 sponse from the agency. 

8 (iii) OFFICE FOR PUBLIC COM9 MENTS.— 

10 (I) IN GENERAL.—Each agency 

11 shall designate an office to receive and 

12 address complaints from the public re13 lating to— 

14 (aa) the failure of the agen15 cy to follow the procedures de16 scribed in this section; or 

17 (bb) the failure to treat a 

18 significant guidance document as 

19 a binding requirement. 

20 (II) WEB SITE.—The agency 

21 shall provide, on the Web site of the 

22 agency, the name and contact infor23 mation for the office designated under 

24 clause (i). 


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1 (3) NOTICE AND PUBLIC COMMENT FOR ECO2 NOMICALLY SIGNIFICANT GUIDANCE DOCUMENTS.— 

3 (A) IN GENERAL.—Except as provided in 

4 paragraph (2), in preparing a draft of an eco5 nomically significant guidance document, and 

6 before issuance of the final significant guidance 

7 document, each agency shall— 

8 (i) publish a notice in the Federal 

9 Register announcing that the draft docu10 ment is available; 

11 (ii) post the draft document on the 

12 Internet and make a tangible copy of that 

13 document publicly available (or notify the 

14 public how the public can review the guid15 ance document if the document is not in a 

16 format that permits such electronic posting 

17 with reasonable efforts); 

18 (iii) invite public comment on the 

19 draft document; and 

20 (iv) prepare and post on the Web site 

21 of the agency a document with responses 

22 of the agency to public comments. 

23 (B) EXCEPTIONS.—In consultation with 

24 the Administrator, an agency head may identify 

25 a particular economically significant guidance 


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1 document or category of such documents for 

2 which the procedures of this subsection are not 

3 feasible or appropriate. 

4 (4) EMERGENCIES.— 

5 (A) IN GENERAL.—In emergency situa6 tions or when an agency is obligated by law to 

7 act more quickly than normal review procedures 

8 allow, the agency shall notify the Administrator 

9 as soon as possible and, to the extent prac10 ticable, comply with this subsection. 

11 (B) SIGNIFICANT GUIDANCE DOCUMENTS

12 SUBJECT TO STATUTORY OR COURT-IMPOSED

13 DEADLINE.—For a significant guidance docu14 ment that is governed by a statutory or court15 imposed deadline, the agency shall, to the ex16 tent practicable, schedule the proceedings of the 

17 agency to permit sufficient time to comply with 

18 this subsection. 

19 (5) EFFECTIVE DATE.—This section shall take 

20 effect 60 days after the date of enactment of this 

21 subtitle. 


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1 SEC. 303. REDUCTION OR WAIVER OF CIVIL PENALTIES IM2 POSED ON SMALL ENTITIES. 

3 (a) IN GENERAL.—Chapter 6 of title 5, United 

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘§ 613. Reduction or waiver of civil penalties imposed 

7 on small entities 

8 ‘‘(a) Upon notifying a small entity of a violation by 

9 the small entity of a collection of information or record10 keeping requirement, the agency shall provide the small 

11 entity with an opportunity to request that the agency re12 duce or waive any civil penalty imposed on the small entity 

13 as a result of the violation. 

14 ‘‘(b) If a small entity requests a reduction or waiver 

15 under subsection (a), the agency that receives the request 

16 shall— 

17 ‘‘(1) review the records of the agency; and 

18 ‘‘(2) reduce or waive the civil penalty imposed 

19 on the small entity if the agency determines that— 

20 ‘‘(A) the civil penalty was the result of a 

21 first-time violation by the small entity of a col22 lection of information or recordkeeping require23 ment; and 

24 ‘‘(B) the reduction or waiver is consistent 

25 with the conditions and exclusions described in 

26 paragraphs (1), (3), (4), (5), and (6) of section 


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1 223(b) of the Small Business Regulatory En2 forcement Fairness Act of 1996 (5 U.S.C. 601 

3 note). 

4 ‘‘(c) Not later than 60 days after the receipt of a 

5 request from a small entity under subsection (a), an agen6 cy shall send the small entity written notice of the deter7 mination of the agency with respect to the request and 

8 the reasons for the determination. 

9 ‘‘(d) The Chief Counsel for Advocacy shall submit to 

10 Congress an annual report summarizing— 

11 ‘‘(1) all requests received by the agencies under 

12 subsection (a) during the previous year; and 

13 ‘‘(2) the results of the requests described in 

14 paragraph (1).’’. 

15 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

16 The table of sections for chapter 6 of title 5, United States 

17 Code, is amended by adding at the end the following: 

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

18 Subtitle B—EPA Regulatory Relief 

19 SEC. 311. SHORT TITLE. 

20 This subtitle may be cited as the ‘‘EPA Regulatory 

21 Relief Act of 2011’’. 

22 SEC. 312. LEGISLATIVE STAY. 

23 (a) ESTABLISHMENT OF STANDARDS.—In place of 

24 the rules specified in subsection (b), and notwithstanding 

25 the date by which such rules would otherwise be required 


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1 to be promulgated, the Administrator of the Environ2 mental Protection Agency (in this subtitle referred to as 

3 the ‘‘Administrator’’) shall— 

4 (1) propose regulations for industrial, commer5 cial, and institutional boilers and process heaters, 

6 and commercial and industrial solid waste inciner7 ator units, subject to any of the rules specified in 

8 subsection (b)— 

9 (A) establishing maximum achievable con10 trol technology standards, performance stand11 ards, and other requirements under sections 

12 112 and 129, as applicable, of the Clean Air 

13 Act (42 U.S.C. 7412, 7429); and 

14 (B) identifying non-hazardous secondary 

15 materials that, when used as fuels or ingredi16 ents in combustion units of such boilers, proc17 ess heaters, or incinerator units are solid waste 

18 under the Solid Waste Disposal Act (42 U.S.C. 

19 6901 et seq.; commonly referred to as the ‘‘Re20 source Conservation and Recovery Act’’) for 

21 purposes of determining the extent to which 

22 such combustion units are required to meet the 

23 emissions standards under section 112 of the 

24 Clean Air Act (42 U.S.C. 7412) or the emission 


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1 standards under section 129 of such Act (42 

2 U.S.C. 7429); and 

3 (2) finalize the regulations on the date that is 

4 15 months after the date of the enactment of this 

5 subtitle, or on such later date as may be determined 

6 by the Administrator. 

7 (b) STAY OF EARLIER RULES.—The following rules 

8 are of no force or effect, shall be treated as though such 

9 rules had never taken effect, and shall be replaced as de10 scribed in subsection (a): 

11 (1) ‘‘National Emission Standards for Haz12 ardous Air Pollutants for Major Sources: Industrial, 

13 Commercial, and Institutional Boilers and Process 

14 Heaters’’, published at 76 Fed. Reg. 15608 (March 

15 21, 2011). 

16 (2) ‘‘National Emission Standards for Haz17 ardous Air Pollutants for Area Sources: Industrial, 

18 Commercial, and Institutional Boilers’’, published at 

19 76 Fed. Reg. 15554 (March 21, 2011). 

20 (3) ‘‘Standards of Performance for New Sta21 tionary Sources and Emission Guidelines for Exist22 ing Sources: Commercial and Industrial Solid Waste 

23 Incineration Units’’, published at 76 Fed. Reg. 

24 15704 (March 21, 2011). 


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1 (4) ‘‘Identification of Non-Hazardous Sec2 ondary Materials That are Solid Waste’’, published 

3 at 76 Fed. Reg. 15456 (March 21, 2011). 

4 (c) INAPPLICABILITY OF CERTAIN PROVISIONS.— 

5 With respect to any standard required by subsection (a) 

6 to be promulgated in regulations under section 112 of the 

7 Clean Air Act (42 U.S.C. 7412), the provisions of sub8 sections (g)(2) and (j) of such section 112 shall not apply 

9 prior to the effective date of the standard specified in such 

10 regulations. 

11 SEC. 313. COMPLIANCE DATES. 

12 (a) ESTABLISHMENT OF COMPLIANCE DATES.—For 

13 each regulation promulgated pursuant to section 312, the 

14 Administrator— 

15 (1) shall establish a date for compliance with 

16 standards and requirements under such regulation 

17 that is, notwithstanding any other provision of law, 

18 not earlier than 5 years after the effective date of 

19 the regulation; and 

20 (2) in proposing a date for such compliance, 

21 shall take into consideration— 

22 (A) the costs of achieving emissions reduc23 tions; 


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1 (B) any non-air quality health and environ2 mental impact and energy requirements of the 

3 standards and requirements; 

4 (C) the feasibility of implementing the 

5 standards and requirements, including the time 

6 needed to— 

7 (i) obtain necessary permit approvals; 

8 and 

9 (ii) procure, install, and test control 

10 equipment; 

11 (D) the availability of equipment, sup12 pliers, and labor, given the requirements of the 

13 regulation and other proposed or finalized regu14 lations of the Environmental Protection Agency; 

15 and 

16 (E) potential net employment impacts. 

17 (b) NEW SOURCES.—The date on which the Adminis18 trator proposes a regulation pursuant to section 312(a)(1) 

19 establishing an emission standard under section 112 or 

20 129 of the Clean Air Act (42 U.S.C. 7412, 7429) shall 

21 be treated as the date on which the Administrator first 

22 proposes such a regulation for purposes of applying the 

23 definition of a new source under section 112(a)(4) of such 

24 Act (42 U.S.C. 7412(a)(4)) or the definition of a new solid 


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1 waste incineration unit under section 129(g)(2) of such 

2 Act (42 U.S.C. 7429(g)(2)). 

3 (c) RULE OF CONSTRUCTION.—Nothing in this sub4 title shall be construed to restrict or otherwise affect the 

5 provisions of paragraphs (3)(B) and (4) of section 112(i) 

6 of the Clean Air Act (42 U.S.C. 7412(i)). 

7 SEC. 314. ENERGY RECOVERY AND CONSERVATION. 

8 (a) IN GENERAL.—Notwithstanding any other provi9 sion of law, to ensure the recovery and conservation of 

10 energy consistent with the Solid Waste Disposal Act (42 

11 U.S.C. 6901 et seq.) (commonly known as the ‘‘Resource 

12 Conservation and Recovery Act of 1976’’), in promul13 gating regulations under section 312(a) that address the 

14 subject matter of the regulations described in paragraphs 

15 (3) and (4) of section 312(b), the Administrator shall— 

16 (1) adopt the definitions of the terms ‘‘commer17 cial and industrial solid waste incineration unit’’, 

18 ‘‘commercial and industrial waste’’, and ‘‘contained 

19 gaseous material’’ contained in the regulation enti20 tled ‘‘Standards of Performance for New Stationary 

21 Sources and Emission Guidelines for Existing 

22 Sources: Commercial and Industrial Solid Waste In23 cineration Units’’ (65 Fed. Reg. 75338 (December 

24 1, 2000)); and 


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1 (2) identify nonhazardous secondary material as 

2 not to be solid waste for purposes of the Solid Waste 

3 Disposal Act (42 U.S.C. 6901 et seq.) if— 

4 (A) the material— 

5 (i) does not meet the definition of 

6 commercial and industrial waste; and 

7 (ii) is on the list published by the Ad8 ministrator under subsection (b); or 

9 (B) in the case of the material that is a 

10 gas, the material does not meet the definition of 

11 contained gaseous material. 

12 (b) LIST OF NONHAZARDOUS SECONDARY MATE13 RIALS.— 

14 (1) IN GENERAL.—Not later than 120 days 

15 after the date of enactment of this subtitle, the Ad16 ministrator shall publish a list of nonhazardous sec17 ondary materials that are not solid waste when com18 busted in units designed for energy recovery, includ19 ing— 

20 (A) without limitation, all forms of bio21 mass, including— 

22 (i) agricultural and forest-derived bio23 mass; 

24 (ii) biomass crops, vines, and orchard 

25 trees; 


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1 (iii) bagasse and other crop and tree 

2 residues, including— 

3 (I) hulls and seeds; 

4 (II) spent grains; 

5 (III) byproducts of cotton; 

6 (IV) corn and peanut production; 

7 (V) rice milling and grain eleva8 tor operations; 

9 (VI) cellulosic biofuels; and 

10 (VII) byproducts of ethanol nat11 ural fermentation processes; 

12 (iv) hogged fuel, including wood pal13 lets, sawdust, and wood pellets; 

14 (v) wood debris from forests and 

15 urban areas; 

16 (vi) resinated wood and other 

17 resinated biomass-derived residuals, includ18 ing trim, sanderdust, offcuts, and wood19 working residuals; 

20 (vii) creosote-treated, borate-treated, 

21 sap-stained, and other treated wood; 

22 (viii) residuals from wastewater treat23 ment by the manufacturing industry, in24 cluding process wastewater with significant 

25 British thermal unit (‘‘Btu’’) value; 


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1 (ix) paper and paper or cardboard re2 cycling residuals, including paper-derived 

3 fuel cubes, paper fines, and paper and 

4 cardboard rejects; 

5 (x) turpentine, turpentine derivatives, 

6 pine tar, rectified methanol, glycerine, lum7 ber kiln condensates, and wood char; 

8 (xi) tall oil and related soaps; 

9 (xii) biogases or bioliquids generated 

10 from biomass materials, wastewater oper11 ations, or landfill operations; 

12 (xiii) processed biomass derived from 

13 construction and demolition debris for the 

14 purpose of fuel production; and 

15 (xiv) animal manure and bedding ma16 terial; 

17 (B) solid and emulsified paraffin; 

18 (C) petroleum and chemical reaction and 

19 distillation byproducts and residues, alcohol, 

20 ink, and nonhalogenated solvents; 

21 (D) tire-derived fuel, including factory 

22 scrap tire and related material; 

23 (E) foundry sand processed in thermal rec24 lamation units; 


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1 (F) coal refuse and coal combustion re2 siduals; 

3 (G) shredded cloth and carpet scrap; 

4 (H) latex paint water, organic printing 

5 dyes and inks, recovered paint solids, and non6 metallic paint sludges; 

7 (I) nonchlorinated plastics; 

8 (J) all used oil that qualifies as recycled oil 

9 under section 1004 of the Solid Waste Disposal 

10 Act (42 U.S.C. 6903); 

11 (K) process densified fuels that contain 

12 any of the materials described in this para13 graph; and 

14 (L) any other specific or general categories 

15 of material that the Administrator determines 

16 the combustion of which is for use as a fuel 

17 pursuant to paragraph (2). 

18 (2) ADDITIONS TO THE LIST.— 

19 (A) IN GENERAL.—To provide greater reg20 ulatory certainty, the Administrator may, after 

21 public notice and opportunity to comment, add 

22 nonhazardous secondary materials to the list 

23 published under paragraph (1)— 

24 (i) as the Administrator determines 

25 necessary; or 


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1 (ii) based on a petition submitted by 

2 any person. 

3 (B) RESPONSE.—Not later than 120 days 

4 after receiving any petition under subparagraph 

5 (A)(ii), the Administrator shall respond to the 

6 petition. 

7 (C) REQUIREMENTS.—In making a deter8 mination under this paragraph, the Adminis9 trator may decline to add a material to the list 

10 under paragraph (1) if the Administrator deter11 mines that regulation under section 112 of the 

12 Clean Air Act (42 U.S.C. 7412) would not rea13 sonably protect public health with an ample 

14 margin of safety. 

15 SEC. 315. OTHER PROVISIONS. 

16 (a) ESTABLISHMENT OF STANDARDS ACHIEVABLE IN

17 PRACTICE.—In promulgating rules under section 312(a), 

18 the Administrator shall ensure that emissions standards 

19 for existing and new sources established under section 112 

20 or 129 of the Clean Air Act (42 U.S.C. 7412, 7429), as 

21 applicable, can be met under actual operating conditions 

22 consistently and concurrently with emission standards for 

23 all other air pollutants regulated by the rule for the source 

24 category, taking into account variability in actual source 

25 performance, source design, fuels, inputs, controls, ability 


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1 to measure the pollutant emissions, and operating condi2 tions. 

3 (b) REGULATORY ALTERNATIVES.—For each regula4 tion promulgated pursuant to section 312(a), from among 

5 the range of regulatory alternatives authorized under the 

6 Clean Air Act (42 U.S.C. 7401 et seq.) including work 

7 practice standards under section 112(h) of such Act (42 

8 U.S.C. 7412(h)), the Administrator shall impose the least 

9 burdensome, consistent with the purposes of such Act and 

10 Executive Order 13563 published at 76 Fed. Reg. 3821 

11 (January 21, 2011). 

12 TITLE IV—WORKFORCE 

13 DEVELOPMENT 

14 Subtitle A—Job Training Program 

15 Consolidation 

16 SEC. 401. SHORT TITLE. 

17 This subtitle may be cited as the ‘‘Job Training Pro18 gram Consolidation Act of 2011’’. 

19 SEC. 402. DEFINITIONS. 

20 In this subtitle: 

21 (1) JOB TRAINING PROGRAM.—The term ‘‘job 

22 training program’’ means any federally funded em23 ployment and training program, including the pro24 grams identified in the January 2011 report of the 

25 Government Accountability Office entitled ‘‘Multiple 


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1 Employee and Training Programs: Providing Infor2 mation on Colocating Services and Consolidating Ad3 ministrative Structures Could Promote Efficiencies’’ 

4 (GAO–11–92) or the March 2011 report of such Of5 fice entitled ‘‘Opportunities to Reduce Potential Du6 plication in Government Programs, Save Tax Dol7 lars, and Enhance Revenue’’ (GAO–11–318SP). 

8 (2) DIRECTOR.—The term ‘‘Director’’ means 

9 the Director of the Office of Management and Budg10 et. 

11 SEC. 403. STUDY AND PROPOSAL ON DUPLICATIVE JOB 

12 TRAINING PROGRAMS. 

13 (a) STUDY REQUIRED.—The Director shall conduct 

14 a study on the effectiveness of current job training pro15 grams and on the consolidation of duplicative job training 

16 programs, using funds that are authorized under Federal 

17 law other than this subtitle and available for activities de18 scribed in this section. 

19 (b) RECOMMENDATIONS.— 

20 (1) IN GENERAL.—In conducting the study re21 quired by subsection (a), the Director shall prepare 

22 recommendations for legislation. 

23 (2) REDUCTION OF PROGRAMS AND COSTS.— 

24 The recommended legislation shall— 


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1 (A) reduce the overall number of job train2 ing programs; 

3 (B) reduce Federal administrative costs of 

4 job training programs; 

5 (C) reduce State and local administrative 

6 costs of job training programs; and 

7 (D) ensure that job training programs for 

8 veterans are visible and accessible to veterans 

9 seeking employment. 

10 (3) CONSOLIDATION UNDER SINGLE AGENCY.— 

11 The recommended legislation shall consolidate all job 

12 training programs into a reduced number of pro13 grams that— 

14 (A) are carried out by a single agency; and 

15 (B) emphasize the provision of job training 

16 that develops skills needed by employers in the 

17 State or local area involved. 

18 (4) USE OF SAVINGS.—Under the recommended 

19 legislation— 

20 (A) half of all funds saved shall be used to 

21 increase funds for individual training accounts 

22 under section 134(d)(4)(F) of the Workforce 

23 Investment Act of 1998 (29 U.S.C. 

24 2864(d)(4)(F)); and 


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1 (B) half of all funds saved shall be depos2 ited in the General Fund of the Treasury for 

3 debt reduction purposes. 

4 (c) REPORT.—Using funds described in subsection 

5 (a), not later than 180 days after the date of enactment 

6 of this Act, the Director shall prepare and submit to Con7 gress a report on the results of the study required by sub8 section (a), including the recommendations described in 

9 subsection (b). 

10 Subtitle B—Innovation and Job 

11 Creation 

12 SEC. 411. SHORT TITLE. 

13 This subtitle may be cited as the ‘‘National Innova14 tion and Job Creation Act of 2011’’. 

15 SEC. 412. DEFINITIONS. 

16 In this subtitle: 

17 (1) BOARD.—The term ‘‘Board’’ means the Na18 tional Innovation Council Board appointed under 

19 section 414. 

20 (2) CLIC.—The term ‘‘CLIC’’ means the 

21 CLUSTER Information Center established under 

22 section 416. 

23 (3) CLUSTER INITIATIVE.—The term ‘‘CLUS24 TER Initiative’’ means a formally organized effort 

25 to promote cluster growth and competitiveness 


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1 through collaborative activities among cluster par2 ticipants. 

3 (4) CLUSTER PROGRAM.—The term ‘‘CLUS4 TER Program’’ means the Competitive Leadership 

5 for the United States Through its Economic Regions 

6 Program established under this subtitle to create 

7 and sustain a series of initiatives to promote eco8 nomic growth in industry groups. 

9 (5) COUNCIL.—The term ‘‘Council’’ means the 

10 National Innovation Council established under sec11 tion 413. 

12 (6) INDUSTRY CLUSTER.—The term ‘‘industry 

13 cluster’’ means a geographic concentration of inter14 connected businesses, suppliers, service providers, 

15 and associated institutions in a particular field. 

16 (7) INDUSTRY RESEARCH COUNCIL.—The term 

17 ‘‘Industry Research Council’’ means an entity that— 

18 (A) is organized for the purpose of advanc19 ing innovation; 

20 (B) is comprised of at least 5 for profit en21 tities; and 

22 (C) contributes not less than the minimum 

23 amount established by the Council toward any 

24 grant awarded by the Council. 


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1 (8) INNOVATION.—The term ‘‘innovation’’ 

2 means the achievement of meaningful increases in 

3 productivity through the introduction or diffusion of 

4 a new or improved product, service, process, source 

5 of supply of materials, business structure, business 

6 practice, business model, or methods of production, 

7 delivery, distribution, financing, marketing, pack8 aging, promoting, or pricing. 

9 (9) PRODUCTIVITY.—The term ‘‘productivity’’ 

10 means the measure of the quality or quantity of eco11 nomic output relative to the input required to 

12 produce that output. 

13 SEC. 413. NATIONAL INNOVATION COUNCIL. 

14 (a) ESTABLISHMENT.— 

15 (1) IN GENERAL.—There is established, in the 

16 Executive Office of the President, the ‘‘National In17 novation Council’’, which shall— 

18 (A) coordinate Federal innovation policy; 

19 and 

20 (B) provide financial assistance for State 

21 and local innovation initiatives. 

22 (2) DIRECTOR.—The Council shall be under the 

23 direction of a Director, who shall be appointed by 

24 the President, with the advice and consent of the 

25 Senate. 


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1 (3) STAFF.— 

2 (A) IN GENERAL.—In accordance with 

3 such policies as the Council shall from time to 

4 time prescribe, the Director shall appoint and 

5 fix the compensation of such personnel as may 

6 be necessary to enable the Council to perform 

7 its duties under this subtitle. 

8 (B) TEMPORARY STAFF.—The Director 

9 may appoint, for a limited term or on a tem10 porary basis, such professional or technical staff 

11 as the Director determines to be necessary to 

12 carry out specific functions under this subtitle 

13 for which their expertise is required. 

14 (b) POWERS AND RESPONSIBILITIES.— 

15 (1) POLICY FORMULATION AND ADVOCACY.— 

16 The Council shall be responsible for formulating and 

17 advocating for the innovation policy of the Federal 

18 Government. 

19 (2) ASSISTANCE.—The Council shall achieve 

20 the goal described in paragraph (1) by— 

21 (A) providing assistance to other Federal 

22 agencies with respect to innovation, upon re23 quest; 

24 (B) assisting the Census Bureau, the Bu25 reau of Economic Analysis, the Bureau of 


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1 Labor Statistics, other major Federal statistical 

2 agencies, and the National Science Foundation 

3 in developing operational measures of innova4 tion that can be included in new or existing eco5 nomic data sources, and providing funding to 

6 such agencies for such purpose; 

7 (C) providing Federal agencies and compa8 nies with the information they need to promote 

9 innovation and productivity; and 

10 (D) assisting companies with activities 

11 such as— 

12 (i) joint industry-university research 

13 partnerships; 

14 (ii) technology transfer from labora15 tories to businesses; 

16 (iii) technology-based entrepreneur17 ship; 

18 (iv) industrial modernization through 

19 adoption of best practice technologies and 

20 business practices; and 

21 (v) incumbent worker training. 

22 (3) INNOVATION MEASUREMENT.—The Council 

23 shall create methods of measuring innovation and 

24 productivity. 


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1 (4) RESEARCH PROGRAM.—The Council shall 

2 carry out a program of research on innovation and 

3 productivity. 

4 (5) ADVOCACY.—The Council shall recommend 

5 specific measures to improve innovation and produc6 tivity in the United States. 

7 (c) COLLABORATION.—The Council shall collaborate 

8 with, and provide funding to, the Census Bureau, the Bu9 reau of Economic Analysis, the Bureau of Labor Statis10 tics, other major Federal statistical agencies, and the Na11 tional Science Foundation to develop— 

12 (1) measures of productivity in the service sec13 tor; 

14 (2) measures of total factor productivity, re15 flecting capital, materials, energy, and purchased 

16 services, labor, and other relevant factors as produc17 tive inputs for all industries; 

18 (3) measures of gross product and productivity 

19 for counties and metropolitan areas; and 

20 (4) measures of private rates of return from re21 search and development. 

22 (d) DATA COLLECTION AND ANALYSIS.—The Council 

23 shall— 


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1 (1) collect and analyze data necessary to evalu2 ate the impact on productivity resulting from the 

3 Council’s programs; and 

4 (2) require recipients of funding or other assist5 ance from the Council to provide information nec6 essary to measure improvements in productivity re7 sulting from such funding or assistance. 

8 (e) ANNUAL REPORT.—The Council shall annually 

9 submit a report (to be known as the ‘‘National Innovation 

10 Report’’) to Congress, which shall set forth— 

11 (1) the current and foreseeable trends in inno12 vation and productivity in the Nation; 

13 (2) a review and analysis of recent domestic 

14 and international developments affecting innovation 

15 and productivity in the Nation; 

16 (3) goals for improved innovation and produc17 tivity in the Nation; 

18 (4) a program designed to improve innovation 

19 and productivity in the Nation; and 

20 (5) such recommendations for legislation as the 

21 President considers desirable. 

22 SEC. 414. NATIONAL INNOVATION COUNCIL BOARD. 

23 (a) ESTABLISHMENT.—The Council shall be under 

24 the direction of the National Innovation Council Board, 

25 which shall be comprised of 11 voting members, who shall 


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1 be appointed by the President, with the advice and consent 

2 of the Senate. 

3 (b) APPOINTMENT CRITERIA.— 

4 (1) QUALIFICATIONS.—Each voting member of 

5 the Board— 

6 (A) shall be eminent in the field of busi7 ness, economic development, health care, ap8 plied sciences, engineering, education, or public 

9 affairs; 

10 (B) shall have a record of distinguished 

11 service in his or her field; and 

12 (C) shall have demonstrated knowledge 

13 and appreciation of the value of innovation. 

14 (2) REPRESENTATION.—In making appoint15 ments under this section, the President shall— 

16 (A) give due regard to equitable represen17 tation of members who are women or who rep18 resent minority groups; 

19 (B) provide representation of the views of 

20 leaders in economic development and innovation 

21 in all areas of the Nation; and 

22 (C) appoint not fewer than— 

23 (i) 1 representative with a background 

24 in manufacturing; 


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1 (ii) 1 representative with a back2 ground in the service industry; 

3 (iii) 1 representative of higher edu4 cation; 

5 (iv) 1 representative of State and local 

6 government; 

7 (v) 1 representative of organized 

8 labor; 

9 (vi) 1 representative of the nonprofit 

10 sector; 

11 (vii) 1 representative of economic de12 velopment organizations; 

13 (viii) 1 representative of professional 

14 associations; and 

15 (ix) 1 recognized expert in innovation. 

16 (3) TERMS.—Voting members of the Board 

17 shall be appointed to 4-year terms. 

18 (4) EX OFFICIO MEMBERS.—The Secretary of 

19 Commerce and the Secretary of Labor shall serve as 

20 ex officio members of the Board. 

21 SEC. 415. TRANSFER OF PROGRAMS AND FUNCTIONS. 

22 There shall be transferred to the Council the func23 tions, personnel, assets, and liabilities of— 


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1 (1) the Manufacturing Extension Partnership 

2 Program of the National Institute of Standards and 

3 Technology; 

4 (2) the Technology Innovation Program of the 

5 National Institute of Standards and Technology; 

6 (3) the Office of Technology Partnerships of 

7 the National Institute of Standards and Technology; 

8 (4) the Partnerships for Innovation of the Na9 tional Science Foundation; 

10 (5) the Industry-University Cooperative Re11 search Center Program of the National Science 

12 Foundation; 

13 (6) the Engineering Research Center Program 

14 of the National Science Foundation; and 

15 (7) the Workforce Innovation in Regional Eco16 nomic Development of the Department of Labor. 

17 SEC. 416. CLUSTER INFORMATION CENTER. 

18 (a) ESTABLISHMENT.—There is established within 

19 the Council the CLUSTER Information Center. 

20 (b) PURPOSES.—The purpose of the CLIC is to pro21 mote the collection, development, and dissemination of 

22 data and analysis on industry clusters throughout the 

23 United States. 


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1 (c) DATABASES.—The Director of the Council shall 

2 compile databases for the CLIC from existing Federal 

3 data sets available from— 

4 (1) the Census Bureau; 

5 (2) the Bureau of Economic Analysis; 

6 (3) the Bureau of Labor Statistics; 

7 (4) the International Trade Administration; 

8 (5) the Statistics of Income Program of the In9 ternal Revenue Service; 

10 (6) the Office of Patent Resource Administra11 tion in the United States Patent and Trademark Of12 fice; 

13 (7) the National Science Foundation; 

14 (8) the National Innovation Council; 

15 (9) other Federal agencies; and 

16 (10) non-Federal sources, including private 

17 databases, as appropriate. 

18 (d) FUNCTIONS.— 

19 (1) IN GENERAL.—The CLIC shall— 

20 (A) support and disseminate research on 

21 the formation and evolution of industry clus22 ters, CLUSTER Initiatives, and CLUSTER 

23 Programs; 

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1 ment of industry clusters, CLUSTER Initia2 tives, and CLUSTER Programs in the United 

3 States and in other countries, specifically deter4 mining how productivity, innovation, and com5 petitive advantage can be maximized through 

6 industry clusters, CLUSTER Initiatives, and 

7 CLUSTER Programs; 

8 (C) develop technical assistance guides for 

9 regional cluster analysis and CLUSTER Initia10 tive and initiative program development and op11 erations; and 

12 (D) bring together representatives of in13 dustry clusters, CLUSTER Initiatives, and 

14 CLUSTER Programs, experts, and scholars to 

15 disseminate developments in cluster analysis, 

16 initiatives, and programs. 

17 (2) DATA COLLECTION.—The CLIC shall col18 lect and make available data on cluster activity 

19 showing— 

20 (A) breadth, a geographically-specific pic21 ture of the array of clusters in each key indus22 try throughout the United States, with data on 

23 size, specialization, and competitiveness of the 

24 industry clusters in each State, region, and 

25 major metropolitan area; 


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1 (B) depth, for each cluster, detailed data 

2 such as regional domestic product contribution, 

3 total jobs and earnings by key occupations, es4 tablishment size, nature of specialization, pat5 ents, Federal research and development spend6 ing, citation patterns, and trade; and 

7 (C) flow, estimates of supply chain product 

8 and service flows within and between industry 

9 clusters. 

10 (3) REPORT.—The CLIC shall— 

11 (A) monitor the extent to which the data 

12 available to it is sufficient for proper analysis of 

13 cluster activity; and 

14 (B) submit a report to Congress that in15 cludes recommendations regarding further au16 thorization for data collection, as necessary. 

17 (4) LIMITATION.—The CLIC may not collect or 

18 analyze data which would otherwise be in violation 

19 of Federal privacy laws. 

20 (5) DISSEMINATION OF ANALYSES.—Data and 

21 analysis compiled by the CLIC shall be made avail22 able to other Federal agencies, State and local gov23 ernments, and nonprofit and for-profit entities, to 

24 guide investments in industry cluster activities that 


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1 will lead to increased productivity, innovation, and 

2 competitive advantage, including— 

3 (A) cluster development; 

4 (B) economic development; 

5 (C) workforce development; 

6 (D) research and development; 

7 (E) business site locations; 

8 (F) analysis of United States competitive9 ness, by industry, industry cluster, and geog10 raphy; and 

11 (G) other appropriate activities. 

12 (e) CLUSTER INITIATIVE AND CLUSTER PROGRAM

13 REGISTRY.— 

14 (1) IN GENERAL.—The CLIC shall maintain a 

15 publicly available registry of CLUSTER Initiatives 

16 and CLUSTER Programs that contain information 

17 that is useful to the study and analysis of CLUS18 TER Initiatives and CLUSTER Programs, includ19 ing— 

20 (A) organizational structure; 

21 (B) membership; 

22 (C) activities; 

23 (D) funding; and 

24 (E) perceived impacts of registered CLUS25 TER Initiatives and CLUSTER Programs. 


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1 (2) INFORMATION COLLECTED.—At the time a 

2 CLUSTER Initiative is registered, the CLIC shall 

3 collect sufficient information to demonstrate that the 

4 CLUSTER Initiative— 

5 (A) is an industry-led effort with not fewer 

6 than 5 member firms and 1 lead organizing en7 tity; 

8 (B) involves not fewer than 3 cluster sup9 port organizations, such workforce boards, com10 munity colleges, universities, and industry asso11 ciations; and 

12 (C) has a strategy to enhance the competi13 tive position of the cluster. 

14 (3) PRIORITY FUNDING.—Registered CLUS15 TER Initiatives and CLUSTER Programs shall re16 ceive priority for funding from the Council and the 

17 CLIC. 

18 (4) USE OF INFORMATION.—Information con19 tained in the CLUSTER Initiative and CLUSTER 

20 Program Registry shall be made available to other 

21 Federal agencies, State and local governments, and 

22 nonprofit and for-profit entities. 

23 (f) OUTSIDE CONTRACTS.—The Director of the 

24 Council may contract out the operation of the CLIC to 

25 an external organization such as another Federal agency, 


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1 a university, a nonprofit research entity, or a private com2 pany. 

3 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated $20,000,000 to carry 

5 out this section. 

6 SEC. 417. GRANT PROGRAMS. 

7 (a) CLUSTER GRANT PROGRAM.— 

8 (1) AUTHORIZATION.—The Council shall award 

9 grants to eligible grantees to operate a CLUSTER 

10 Grant Program for the purpose of awarding grants 

11 to CLUSTER Initiatives in accordance with the re12 quirements under this subsection. 

13 (2) ELIGIBLE GRANTEES.—A grant may be 

14 awarded under this subsection to— 

15 (A) a State; or 

16 (B) an entity designated by a State or a 

17 group of States, which may be a city, a county, 

18 another political subdivision of a State, a non19 profit organization, or any other economic de20 velopment organization. 

21 (3) USE OF GRANT FUNDS.—All entities receiv22 ing grant funds under this subsection shall ensure 

23 that CLUSTER Initiatives supported by such 

24 funds— 


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1 (A) are operated in a manner consistent 

2 with the ‘‘best practices’’ established by the 

3 CLUSTER Program; 

4 (B) are industry-led; 

5 (C) are inclusive, seeking any and all orga6 nizations that might find benefit from partici7 pation, including startups, firms not locally 

8 owned, and firms rival to existing members; 

9 (D) encourage broad participation by and 

10 collaboration among all types of participants; 

11 (E) involve key State and local government 

12 actors; and 

13 (F) participate in the CLIC registry and 

14 research activities described in section 416(e). 

15 (4) GRANT TYPES.— 

16 (A) FEASIBILITY STUDY GRANTS.— 

17 (i) IN GENERAL.—A grant in an 

18 amount not to exceed $250,000 shall be 

19 awarded to eligible grantees for Cluster 

20 Program feasibility studies, planning, and 

21 operations. 

22 (ii) CONDITIONS.—A feasibility study 

23 grant shall be awarded to not fewer than 

24 1 eligible grantee in each State on a 1-time 

25 basis, with no matching funds required. 


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1 (B) START UP AND ANNUAL GRANTS.— 

2 (i) START UP GRANT.—A 1-year grant 

3 in an amount not to exceed $1,000,000 

4 shall be awarded to not fewer than 1 new 

5 cluster program in each State to support 

6 planning studies, provide technical assist7 ance, and fund start-up activities. 

8 (ii) ANNUAL GRANT.—An annual 

9 grant shall be awarded to not fewer than 

10 1 early-stage cluster programs in each 

11 State to provide technical assistance and 

12 fund operating activities. 

13 (iii) RENEWAL.—Grants awarded 

14 under clause (ii) may be renewed for a 

15 total period not to exceed 5 years (includ16 ing any start up grant). 

17 (iv) MATCHING FUNDS REQUIRE18 MENT.— 

19 (I) INITIAL PERIOD.—During the 

20 first 2 years in which an eligible enti21 ty receives grant funding under this 

22 subparagraph, the eligible entity shall 

23 provide matching funds in an amount 

24 equal to the amount of funds received 

25 under this subparagraph. 


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1 (II) SUBSEQUENT PERIOD.—If 

2 the Council determines, in accordance 

3 with criteria established by the 

4 CLUSTER Program, that an eligible 

5 grantee has demonstrated greater ef6 fectiveness than other grant recipients 

7 during the period described in sub8 clause (I), the non-Federal matching 

9 requirement for such eligible grantee 

10 in future years may be reduced. 

11 (C) MATCHING GRANTS FOR CLUSTER INI12 TIATIVES.— 

13 (i) IN GENERAL.—A grant of between 

14 $1,000,000 and $15,000,000 may be 

15 awarded, on a competitive basis, to CLUS16 TER Programs for the purpose of sup17 porting CLUSTER Initiatives. 

18 (ii) MATCHING REQUIREMENT.—An 

19 eligible entity receiving a grant under this 

20 subparagraph shall provide matching funds 

21 in an amount equal to the amount of grant 

22 funds received under this subparagraph. 

23 (iii) SELECTION CRITERIA.—In select24 ing grant recipients under this subpara25 graph, the Council shall consider— 


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1 (I) the probable impact of the 

2 proposed effort on the competitiveness 

3 of the area’s traded sector; 

4 (II) if the proposed effort fits 

5 within a broader achievable economic 

6 development strategy; 

7 (III) the capacity and commit8 ment of the sponsoring organization; 

9 (IV) the degree of support and 

10 involvement from relevant State and 

11 regional economic and workforce de12 velopment organizations, other public 

13 purpose institutions (such as univer14 sities, community colleges, workforce 

15 boards), and the private sector, in16 cluding industry associations; 

17 (V) the eligible grantee’s ex18 pected ability to access additional 

19 funds from Federal, State, and local 

20 sources; 

21 (VI) the eligible grantee’s capac22 ity to sustain activities once grant 

23 funds have been expended; and 

24 (VII) the extent to which eco25 nomic diversity across regions of the 


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1 United States would be increased 

2 through the grant. 

3 (5) APPLICATION PROCESS.—The application 

4 process for grants awarded under this subsection 

5 shall be on a rolling basis. 

6 (6) AUTHORIZATION OF APPROPRIATIONS.— 

7 There are authorized to be appropriated 

8 $350,000,000 for fiscal year 2012 and each subse9 quent fiscal year to carry out this subsection. 

10 (b) NATIONAL SECTOR RESEARCH GRANTS.— 

11 (1) GRANTS AUTHORIZED.—The Council shall 

12 award competitive grants to eligible companies and 

13 joint ventures to encourage innovation through re14 search partnerships between academic institutions in 

15 the United States and industry research alliances. 

16 (2) ELIGIBILITY.—Each company and joint 

17 venture desiring a grant under this subsection 

18 shall— 

19 (A) submit an application to the Council 

20 containing such information as the Council may 

21 reasonably require; 

22 (B) form an industry-led research consor23 tium consisting of at least 5 companies; and 


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1 (C) agree to develop a 3- to 10-year tech2 nology roadmap that charts out generic science 

3 and technology needs that the companies share. 

4 (3) FEDERAL COST SHARE.—The Federal share 

5 of a project funded by a grant under this subsection 

6 shall be not more than 50 percent of the total 

7 project costs. 

8 (c) PRODUCTIVITY ENHANCEMENT RESEARCH

9 GRANTS.—The Council shall award grants to academic in10 stitutions in the United States and to joint ventures com11 prised of academic institutions and private companies to 

12 support early-stage research into methods of increasing 

13 productivity and innovation, with broad application for a 

14 range of industries, including— 

15 (1) automated manufacturing or service proc16 esses; 

17 (2) technology-enabled remote service delivery; 

18 (3) quality improvement; and 

19 (4) other methods of improving productivity 

20 and innovation. 

21 (d) STATE INNOVATION-BASED ECONOMIC DEVEL22 OPMENT PARTNERSHIP GRANTS.— 

23 (1) GRANTS AUTHORIZED.—The Council shall 

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1 nership grants to State economic development enti2 ties designated by each State. 

3 (2) GRANT TYPES.— 

4 (A) FEASIBILITY STUDY GRANTS.— 

5 (i) IN GENERAL.—A grant of up to 

6 $250,000 shall be awarded to States for 

7 feasibility studies, planning, and oper8 ations. 

9 (ii) CONDITIONS.—A feasibility study 

10 grant shall be awarded to not fewer than 

11 1 eligible grantee in each State on a 1-time 

12 basis, with no matching funds required. 

13 (B) START-UP AND ANNUAL GRANTS.— 

14 (i) START UP GRANT.—A 1-year grant 

15 in an amount not to exceed $2,000,000 

16 shall be awarded to States to support plan17 ning studies, provide technical assistance, 

18 and fund start-up activities. 

19 (ii) ANNUAL GRANTS.—In addition to 

20 the grants authorized under clause (i), an21 nual grants shall be awarded to States to 

22 provide technical assistance and fund oper23 ating activities. Grants awarded under this 

24 clause may be renewed indefinitely. 


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1 (iii) MINIMUM GRANTS.—Each State 

2 shall be awarded not fewer than 1 grant 

3 under this subparagraph. 

4 (iv) MATCHING FUNDS REQUIRE5 MENT.—A State receiving a start-up grant 

6 under this subparagraph shall provide— 

7 (I) for the first $1,000,000 in 

8 grant funds, a match of $1 for every 

9 $2 received in grant funds; and 

10 (II) for any additional amount in 

11 grant funds, a match of $2 for every 

12 $1 received in grant funds. 

13 (3) IBED PLANS.— 

14 (A) INITIAL PLANS.—Each State desiring 

15 a grant under this subsection shall submit to 

16 the Council an initial innovation-based economic 

17 development plan (referred to in this paragraph 

18 as an ‘‘IBED Plan’’), which describes— 

19 (i) how grant funds would be used to 

20 support the creation of alliances for the 

21 dissemination of innovation among local 

22 governments, businesses, educational insti23 tutions, and other institutions; 


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1 (ii) how companies within the State 

2 would benefit from the activities funded 

3 through a grant under this subsection; and 

4 (iii) how innovation would be dissemi5 nated through the activities described in 

6 paragraph (4) to companies within the 

7 State. 

8 (B) REVIEW.—The Council and an outside 

9 panel of experts shall— 

10 (i) review the initial IBED Plans sub11 mitted under subparagraph (A); and 

12 (ii) notify the States of any suggested 

13 modifications to such plans. 

14 (C) RESUBMISSION OF PLANS.—States 

15 may submit modified IBED Plans to the Coun16 cil. 

17 (D) USE OF PLANS.—The Council shall 

18 score IBED Plans submitted under this para19 graph and award competitive grants to States 

20 under this subsection, to the extent available, 

21 on the basis of such scores. In scoring plans 

22 under this subparagraph, the Council shall 

23 award additional points for multi-State and re24 gional innovation-based economic development 

25 efforts. 


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1 (4) USE OF FUNDS.—Grant funds received 

2 under this subsection may be used to establish— 

3 (A) technology commercialization centers; 

4 (B) industry-university research centers; 

5 (C) regional cluster development programs; 

6 (D) regional skills alliances; 

7 (E) entrepreneurial support programs; 

8 (F) science parks; and 

9 (G) related activities to spur innovation or 

10 productivity. 

11 (5) FEDERAL COST SHARE.—The Federal share 

12 of a project funded by a grant under this subsection 

shall be not more than 1 13 ⁄3 of the total project costs. 

14 (6) NONCOMPETITIVE GRANTS.—The Council 

15 shall award noncompetitive planning and technical 

16 assistance grants to States that do not receive a 

17 competitive grant under this subsection, which shall 

18 be used to improve the quality of the States’ pro19 posals for subsequent grants under this section. 

20 (e) TECHNOLOGY DIFFUSION GRANTS.— 

21 (1) GRANTS AUTHORIZED.—The Council shall 

22 award grants to manufacturing extension partner23 ship centers in each State to promote the diffusion 

24 of existing technological innovations to companies in 

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1 standing any other provision of law, a manufac2 turing extension partnership may use grant funds 

3 awarded under this subsection for activities in the 

4 service sector that comply with the requirements 

5 under this subsection. 

6 (2) GRANT TYPES.— 

7 (A) FEASIBILITY STUDY GRANTS.— 

8 (i) IN GENERAL.—A grant of up to 

9 $250,000 shall be awarded to manufac10 turing extension partnership centers for 

11 feasibility studies, planning, and oper12 ations. 

13 (ii) CONDITIONS.—A feasibility study 

14 grant shall be awarded to not fewer than 

15 1 eligible grantee in each State on a 1-time 

16 basis, with no matching funds required. 

17 (B) START UP AND ANNUAL GRANTS.— 

18 (i) START UP GRANT.—A 1-year grant 

19 of up to $2,000,000 shall be awarded to a 

20 manufacturing extension partnership cen21 ter in each State to support planning stud22 ies, provide technical assistance, and fund 

23 start-up activities. 

24 (ii) ANNUAL GRANTS.—In addition to 

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1 nual grants shall be awarded to manufac2 turing extension partnership centers in 

3 each State provide technical assistance and 

4 fund operating activities. Grants awarded 

5 under this clause may be renewed indefi6 nitely. 

7 (iii) MATCHING FUNDS REQUIRE8 MENT.—A manufacturing extension part9 nership center receiving a grant under this 

10 subparagraph shall provide— 

11 (I) for the first $1,000,000 in 

12 grant funds, a match of $1 for every 

13 $2 received in grant funds; and 

14 (II) for any additional amount in 

15 grant funds, a match of $2 for every 

16 $1 received in grant funds. 

17 (3) USE OF FUNDS.—Grants funds received 

18 under this subsection may be used— 

19 (A) to establish manufacturing extension 

20 partnership centers in each State to provide— 

21 (i) support for manufacturing and 

22 services; and 

23 (ii) innovation awards; and 


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1 (B) to support the diffusion of innovation 

2 in any sector of the economy, including the 

3 service sector. 

4 (4) EVALUATION PROCESS.—In evaluating pro5 posals for grants under this subsection, the Council 

6 shall— 

7 (A) determine the degree to which measur8 able productivity gains are expected to be 

9 achieved through each applicant’s proposed dif10 fusion of innovation; 

11 (B) follow the 2-step process established 

12 under subsection (d)(3) for grants to carry out 

13 the activities described in paragraph (3)(A); 

14 and 

15 (C) require manufacturing extension part16 nership centers to submit a plan to carry out 

17 the activities described in paragraph (3)(B). 

18 (f) USE OF GRANTS.—Grant funds received under 

19 this section shall be used to— 

20 (1) perform Council-supported grant work in 

21 the United States; and 

22 (2) promote the production of any resulting 

23 goods or services in the United States. 

24 (g) AWARD CRITERIA.—In evaluating proposals for 

25 grants under this section, the Council shall— 


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1 (1) determine, as 1 award factor, the extent to 

2 which a grant to each State or manufacturing exten3 sion partnership center is expected to increase pro4 duction, wages, or employment in the United States; 

5 (2) not award any grant which the Council be6 lieves could result in a decrease in production, 

7 wages, or employment in the United States; and 

8 (3) consult with technology-specific boards 

9 staffed with experts in fields appropriate to the pro10 posals for grants being evaluated. 

11 (h) MINIMUM FUNDING LEVEL.— 

12 (1) IN GENERAL.—For each of the grant pro13 grams established under subsections (a), (d), and 

14 (e)— 

15 (A) not fewer than 1 grant shall be award16 ed to a grantee in each State; and 

17 (B) the amount of each grant shall be not 

18 less than 80 percent of the average grant 

19 awarded in such grant program. 

20 (2) POPULATION-BASED ALLOCATIONS.—In 

21 each State, the total amount of grant funds awarded 

22 to grantees in such State under subsections (a) 

23 through (e) shall be not less than 50 percent of the 

24 product of— 


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1 (A) the percentage of the population of the 

2 United States who are residents of such State, 

3 according to the most recent decennial census; 

4 and 

5 (B) the total amount of grant funds 

6 awarded under subsections (a) through (e). 

7 (i) COORDINATION OF FUNDS.—Recipients of grants 

8 under this section may use, as matching funds, amounts 

9 received from the agencies listed in section 415, to the 

10 extent approved by the Council and such agencies. 

11 SEC. 418. AUTHORIZATION OF APPROPRIATIONS. 

12 There are authorized to be appropriated to the Na13 tional Innovation Council, for each of the fiscal years 2012 

14 through 2016, such sums as may be necessary to carry 

15 out this subtitle. 

16 TITLE V—OFFSETS 

17 Subtitle A—Surtax on High-income 

18 Taxpayers 

19 SEC. 501. SURTAX ON MILLIONAIRES. 

20 (a) IN GENERAL.—Subchapter A of chapter 1 of the 

21 Internal Revenue Code of 1986 is amended by adding at 

22 the end the following new part: 

23 ‘‘PART VIII—SURTAX ON MILLIONAIRES 

‘‘Sec. 59B. Surtax on millionaires. 


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1 ‘‘SEC. 59B. SURTAX ON MILLIONAIRES. 

2 ‘‘(a) GENERAL RULE.—In the case of a taxpayer 

3 other than a corporation for any taxable year beginning 

4 after 2012 and before 2023, there is hereby imposed (in 

5 addition to any other tax imposed by this subtitle) a tax 

6 equal to 2 percent of so much of the modified adjusted 

7 gross income of the taxpayer for such taxable year as ex8 ceeds $1,000,000 ($500,000, in the case of a married indi9 vidual filing a separate return). 

10 ‘‘(b) INFLATION ADJUSTMENT.— 

11 ‘‘(1) IN GENERAL.—In the case of any taxable 

12 year beginning after 2013, each dollar amount under 

13 subsection (a) shall be increased by an amount equal 

14 to— 

15 ‘‘(A) such dollar amount, multiplied by 

16 ‘‘(B) the cost-of-living adjustment deter17 mined under section 1(f)(3) for the calendar 

18 year in which the taxable year begins, deter19 mined by substituting ‘calendar year 2011’ for 

20 ‘calendar year 1992’ in subparagraph (B) 

21 thereof. 

22 ‘‘(2) ROUNDING.—If any amount as adjusted 

23 under paragraph (1) is not a multiple of $10,000, 

24 such amount shall be rounded to the next highest 

25 multiple of $10,000. 


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1 ‘‘(c) MODIFIED ADJUSTED GROSS INCOME.—For 

2 purposes of this section— 

3 ‘‘(1) IN GENERAL.—The term ‘modified ad4 justed gross income’ means adjusted gross income 

5 reduced by the excess of— 

6 ‘‘(A) gross income from a small business 

7 (as defined in section 6654(d)(1)(D)(iii))— 

8 ‘‘(i) which is not a passive activity 

9 (within the meaning of section 469(c)), 

10 and 

11 ‘‘(ii) with respect to which the tax12 payer pays wages to at least 1 full-time 

13 equivalent employee (as defined in section 

14 45R(d)(2)), other than the taxpayer, the 

15 taxpayer’s spouse, or an individual who 

16 bears a relationship to the taxpayer de17 scribed in section 152(d)(2), over 

18 ‘‘(B) the deductions which are properly al19 locable to such income. 

20 ‘‘(2) REGULATIONS.—The Secretary shall pre21 scribe regulations similar to the regulations under 

22 section 469(l) for determining the income that is 

23 taken into account under paragraph (1)(A). 

24 ‘‘(d) SPECIAL RULES.— 


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1 ‘‘(1) NONRESIDENT ALIEN.—In the case of a 

2 nonresident alien individual, only amounts taken 

3 into account in connection with the tax imposed 

4 under section 871(b) shall be taken into account 

5 under this section. 

6 ‘‘(2) CITIZENS AND RESIDENTS LIVING

7 ABROAD.—The dollar amount in effect under sub8 section (b) shall be decreased by the excess of— 

9 ‘‘(A) the amounts excluded from the tax10 payer’s gross income under section 911, over 

11 ‘‘(B) the amounts of any deductions or ex12 clusions disallowed under section 911(d)(6) 

13 with respect to the amounts described in sub14 paragraph (A). 

15 ‘‘(3) CHARITABLE TRUSTS.—Subsection (a) 

16 shall not apply to a trust all the unexpired interests 

17 in which are devoted to one or more of the purposes 

18 described in section 170(c)(2)(B). 

19 ‘‘(4) NOT TREATED AS TAX IMPOSED BY THIS

20 CHAPTER FOR CERTAIN PURPOSES.—The tax im21 posed under this section shall not be treated as tax 

22 imposed by this chapter for purposes of determining 

23 the amount of any credit under this chapter or for 

24 purposes of section 55.’’. 


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•S 1960 IS

1 (b) CLERICAL AMENDMENT.—The table of parts for 

2 subchapter A of chapter 1 of the Internal Revenue Code 

3 of 1986 is amended by adding at the end the following 

4 new item: 

‘‘PART VIII. SURTAX ON MILLIONAIRES.’’. 

5 (c) SECTION 15 NOT TO APPLY.—The amendment 

6 made by subsection (a) shall not be treated as a change 

7 in a rate of tax for purposes of section 15 of the Internal 

8 Revenue Code of 1986. 

9 (d) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2012. 

12 Subtitle B—Closing Big Oil Tax 

13 Loopholes 

14 SEC. 511. SHORT TITLE. 

15 (a) SHORT TITLE.—This subtitle may be cited as the 

16 ‘‘Close Big Oil Tax Loopholes Act’’. 

17 PART I—CLOSE BIG OIL TAX LOOPHOLES 

18 SEC. 521. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 

19 APPLICABLE TO MAJOR INTEGRATED OIL 

20 COMPANIES WHICH ARE DUAL CAPACITY 

21 TAXPAYERS. 

22 (a) IN GENERAL.—Section 901 of the Internal Rev23 enue Code of 1986 is amended by redesignating subsection 

24 (n) as subsection (o) and by inserting after subsection (m) 

25 the following new subsection: 


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•S 1960 IS

1 ‘‘(n) SPECIAL RULES RELATING TO MAJOR INTE2 GRATED OIL COMPANIES WHICH ARE DUAL CAPACITY

3 TAXPAYERS.— 

4 ‘‘(1) GENERAL RULE.—Notwithstanding any 

5 other provision of this chapter, any amount paid or 

6 accrued by a dual capacity taxpayer which is a 

7 major integrated oil company (as defined in section 

8 167(h)(5)(B)) to a foreign country or possession of 

9 the United States for any period shall not be consid10 ered a tax— 

11 ‘‘(A) if, for such period, the foreign coun12 try or possession does not impose a generally 

13 applicable income tax, or 

14 ‘‘(B) to the extent such amount exceeds 

15 the amount (determined in accordance with reg16 ulations) which— 

17 ‘‘(i) is paid by such dual capacity tax18 payer pursuant to the generally applicable 

19 income tax imposed by the country or pos20 session, or 

21 ‘‘(ii) would be paid if the generally ap22 plicable income tax imposed by the country 

23 or possession were applicable to such dual 

24 capacity taxpayer. 


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•S 1960 IS

1 Nothing in this paragraph shall be construed to 

2 imply the proper treatment of any such amount not 

3 in excess of the amount determined under subpara4 graph (B). 

5 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur6 poses of this subsection, the term ‘dual capacity tax7 payer’ means, with respect to any foreign country or 

8 possession of the United States, a person who— 

9 ‘‘(A) is subject to a levy of such country or 

10 possession, and 

11 ‘‘(B) receives (or will receive) directly or 

12 indirectly a specific economic benefit (as deter13 mined in accordance with regulations) from 

14 such country or possession. 

15 ‘‘(3) GENERALLY APPLICABLE INCOME TAX.— 

16 For purposes of this subsection— 

17 ‘‘(A) IN GENERAL.—The term ‘generally 

18 applicable income tax’ means an income tax (or 

19 a series of income taxes) which is generally im20 posed under the laws of a foreign country or 

21 possession on income derived from the conduct 

22 of a trade or business within such country or 

23 possession. 


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•S 1960 IS

1 ‘‘(B) EXCEPTIONS.—Such term shall not 

2 include a tax unless it has substantial applica3 tion, by its terms and in practice, to— 

4 ‘‘(i) persons who are not dual capacity 

5 taxpayers, and 

6 ‘‘(ii) persons who are citizens or resi7 dents of the foreign country or posses8 sion.’’. 

9 (b) EFFECTIVE DATE.— 

10 (1) IN GENERAL.—The amendments made by 

11 this section shall apply to taxes paid or accrued in 

12 taxable years beginning after the date of the enact13 ment of this Act. 

14 (2) CONTRARY TREATY OBLIGATIONS

15 UPHELD.—The amendments made by this section 

16 shall not apply to the extent contrary to any treaty 

17 obligation of the United States. 

18 SEC. 522. LIMITATION ON SECTION 199 DEDUCTION ATTRIB19 UTABLE TO OIL, NATURAL GAS, OR PRIMARY 

20 PRODUCTS THEREOF. 

21 (a) DENIAL OF DEDUCTION.—Paragraph (4) of sec22 tion 199(c) of the Internal Revenue Code of 1986 is 

23 amended by adding at the end the following new subpara24 graph: 


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•S 1960 IS

1 ‘‘(E) SPECIAL RULE FOR CERTAIN OIL

2 AND GAS INCOME.—In the case of any taxpayer 

3 who is a major integrated oil company (as de4 fined in section 167(h)(5)(B)) for the taxable 

5 year, the term ‘domestic production gross re6 ceipts’ shall not include gross receipts from the 

7 production, transportation, or distribution of 

8 oil, natural gas, or any primary product (within 

9 the meaning of subsection (d)(9)) thereof.’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 this section shall apply to taxable years beginning after 

12 December 31, 2011. 

13 SEC. 523. LIMITATION ON DEDUCTION FOR INTANGIBLE 

14 DRILLING AND DEVELOPMENT COSTS. 

15 (a) IN GENERAL.—Section 263(c) of the Internal 

16 Revenue Code of 1986 is amended by adding at the end 

17 the following new sentence: ‘‘This subsection shall not 

18 apply to amounts paid or incurred by a taxpayer in any 

19 taxable year in which such taxpayer is a major integrated 

20 oil company (as defined in section 167(h)(5)(B)).’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to amounts paid or incurred in tax23 able years beginning after December 31, 2011. 


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•S 1960 IS

1 SEC. 524. LIMITATION ON PERCENTAGE DEPLETION AL2 LOWANCE FOR OIL AND GAS WELLS. 

3 (a) IN GENERAL.—Section 613A of the Internal Rev4 enue Code of 1986 is amended by adding at the end the 

5 following new subsection: 

6 ‘‘(f) APPLICATION WITH RESPECT TO MAJOR INTE7 GRATED OIL COMPANIES.—In the case of any taxable year 

8 in which the taxpayer is a major integrated oil company 

9 (as defined in section 167(h)(5)(B)), the allowance for 

10 percentage depletion shall be zero.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2011. 

14 SEC. 525. LIMITATION ON DEDUCTION FOR TERTIARY 

15 INJECTANTS. 

16 (a) IN GENERAL.—Section 193 of the Internal Rev17 enue Code of 1986 is amended by adding at the end the 

18 following new subsection: 

19 ‘‘(d) APPLICATION WITH RESPECT TO MAJOR INTE20 GRATED OIL COMPANIES.—This section shall not apply to 

21 amounts paid or incurred by a taxpayer in any taxable 

22 year in which such taxpayer is a major integrated oil com23 pany (as defined in section 167(h)(5)(B)).’’. 

24 (b) EFFECTIVE DATE.—The amendment made by 

25 this section shall apply to amounts paid or incurred in tax26 able years beginning after December 31, 2011. 


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•S 1960 IS

1 PART II—OUTER CONTINENTAL SHELF OIL AND 

2 NATURAL GAS 

3 SEC. 531. REPEAL OF OUTER CONTINENTAL SHELF DEEP 

4 WATER AND DEEP GAS ROYALTY RELIEF. 

5 (a) IN GENERAL.—Sections 344 and 345 of the En6 ergy Policy Act of 2005 (42 U.S.C. 15904, 15905) are 

7 repealed. 

8 (b) ADMINISTRATION.—The Secretary of the Interior 

9 shall not be required to provide for royalty relief in the 

10 lease sale terms beginning with the first lease sale held 

11 on or after the date of enactment of this Act for which 

12 a final notice of sale has not been published. 

Æ 


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