SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Temporary Payroll Tax Cut Continuation Act of 2011’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—TEMPORARY PAYROLL TAX RELIEF 
Sec. 101. Extension of payroll tax holiday. 
TITLE II—TEMPORARY EXTENSION OF UNEMPLOYMENT 
COMPENSATION PROVISIONS 
Sec. 201. Temporary extension of unemployment compensation provisions. 
Sec. 202. Extended unemployment benefits under the Railroad Unemployment 
Insurance Act. 
TITLE III—TEMPORARY EXTENSION OF HEALTH PROVISIONS 
Sec. 301. Medicare physician payment update. 
Sec. 302. 2-month extension of MMA section 508 reclassifications. 
Sec. 303. Extension of Medicare work geographic adjustment floor. 
Sec. 304. Extension of exceptions process for Medicare therapy caps. 
Sec. 305. Extension of payment for technical component of certain physician 
pathology services. 
Sec. 306. Extension of ambulance add-ons. 
Sec. 307. Extension of physician fee schedule mental health add-on payment. 
Sec. 308. Extension of outpatient hold harmless provision. 
Sec. 309. Extending minimum payment for bone mass measurement. 
Sec. 310. Extension of the qualifying individual (QI) program. 
Sec. 311. Extension of Transitional Medical Assistance (TMA). 
Sec. 312. Extension of the temporary assistance for needy families program. 
TITLE IV—MORTGAGE FEES AND PREMIUMS 
Sec. 401. Guarantee Fees. 
Sec. 402. FHA guarantee fees. 
TITLE V—OTHER PROVISIONS 
Subtitle A—Keystone XL Pipeline 
Sec. 501. Permit for Keystone XL pipeline. 
Subtitle B—Budgetary Provisions 
Sec. 511. Senate point of order against an emergency designation. 
Sec. 512. PAYGO scorecard estimates.
TITLE I—TEMPORARY PAYROLL 
TAX RELIEF 
SEC. 101. EXTENSION OF PAYROLL TAX HOLIDAY. 
(a) IN GENERAL.—Subsection (c) of section 601 of 
the Tax Relief, Unemployment Insurance Reauthorization, 
and Job Creation Act of 2010 (26 U.S.C. 1401 note) is 
amended to read as follows: 
‘‘(c) PAYROLL TAX HOLIDAY PERIOD.—The term 
‘payroll tax holiday period’ means— 
‘‘(1) in the case of the tax described in sub-
section (a)(1), calendar years 2011 and 2012, and 
‘‘(2) in the case of the taxes described in sub-
section (a)(2), the period beginning January 1, 
2011, and ending February 29, 2012.’’. 
(b) SPECIAL RULES FOR 2012.—Section 601 of such 
Act (26 U.S.C. 1401 note) is amended by adding at the 
end the following new subsection: 
‘‘(f) SPECIAL RULES FOR 2012.— 
‘‘(1) LIMITATION
ON
SELF-EMPLOYMENT
IN-
COME.—In the case of any taxable year beginning in 
2012, subsection (a)(1) shall only apply with respect 
to so much of the taxpayer’s self-employment income 
(as defined in section 1402(b) of the Internal Rev-
enue Code of 1986) as does not exceed the excess (if 
any) of—
‘‘(A) $18,350, over 
‘‘(B) the amount of wages and compensa-
tion received during the portion of the payroll 
tax holiday period occurring during 2012 sub-
ject to tax under section 3101(a) of such Code 
or section 3201(a) of such Code. 
‘‘(2) COORDINATION WITH DEDUCTION FOR EM-
PLOYMENT TAXES.—In the case of a taxable year 
beginning in 2012, subparagraph (A) of subsection 
(b)(2) shall be applied as if it read as follows: 
‘‘ ‘(A) the sum of— 
‘‘ ‘(i) 59.6 percent of the portion of 
such taxes attributable to the tax imposed 
by section 1401(a) of such Code (deter-
mined after the application of this section) 
on so much of self-employment income (as 
defined in section 1402(b) of such Code) 
as does not exceed the amount of self-em-
ployment income described in paragraph 
(1), plus 
‘‘ ‘(ii) one-half of the portion of such 
taxes attributable to the tax imposed by 
section 1401(a) of such Code (determined 
without regard to this section) on self-em-
ployment income (as so defined) in excess 
of such amount, plus’.’’. 
(c) RECAPTURE OF EXCESS BENEFIT.—Section 601 
of such Act (26 U.S.C. 1401 note), as amended by sub-
section (b), is further amended by adding at the end the 
following new subsection: 
‘‘(g) RECAPTURE OF EXCESS BENEFIT.— 
‘‘(1) IN GENERAL.—There is hereby imposed on 
the income of every individual a tax equal to 2 per-
cent of the sum of wages (within the meaning of sec-
tion 3121(a)(1) of the Internal Revenue Code of 
1986) and compensation (to which section 3201(a) 
of such Code applies) received during the period be-
ginning January 1, 2012, and ending February 29, 
2012, to the extent the amount of such sum exceeds 
$18,350. 
‘‘(2) REGULATIONS.—The Secretary of the 
Treasury or the Secretary’s delegate shall prescribe 
such regulations or other guidance as may be nec-
essary or appropriate to carry out this subsection, 
including guidance for payment by the employee of 
the tax imposed by paragraph (1).’’. 
(d) TECHNICAL AMENDMENTS.—Paragraph (2) of 
section 601(b) of such Act (26 U.S.C. 1401 note) is 
amended—
(1) by inserting ‘‘of such Code’’ after ‘‘164(f)’’; 
(2) 
by 
inserting 
‘‘of 
such 
Code’’ 
after 
‘‘1401(a)’’ in subparagraph (A); and 
(3) 
by 
inserting 
‘‘of 
such 
Code’’ 
after 
‘‘1401(b)’’ in subparagraph (B). 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to remuneration received, and taxable 
years beginning, after December 31, 2011. 
(2) TECHNICAL
AMENDMENTS.—The amend-
ments made by subsection (d) shall take effect as if 
included in the enactment of section 601 of the Tax 
Relief, Unemployment Insurance Reauthorization, 
and Job Creation Act of 2010. 
TITLE II—TEMPORARY EXTEN-
SION 
OF 
UNEMPLOYMENT 
COMPENSATION PROVISIONS 
SEC. 201. TEMPORARY EXTENSION OF UNEMPLOYMENT 
COMPENSATION PROVISIONS. 
(a) IN GENERAL.—(1) Section 4007 of the Supple-
mental Appropriations Act, 2008 (Public Law 110–252; 
26 U.S.C. 3304 note) is amended— 
(A) by striking ‘‘January 3, 2012’’ each place 
it appears and inserting ‘‘March 6, 2012’’;
(B) in the heading for subsection (b)(2), by 
striking ‘‘JANUARY 3, 2012’’ and inserting ‘‘MARCH 6, 
2012’’; and 
(C) in subsection (b)(3), by striking ‘‘June 9, 
2012’’ and inserting ‘‘August 15, 2012’’. 
(2) Section 2005 of the Assistance for Unemployed 
Workers and Struggling Families Act, as contained in 
Public Law 111–5 (26 U.S.C. 3304 note; 123 Stat. 444), 
is amended— 
(A) by striking ‘‘January 4, 2012’’ each place 
it appears and inserting ‘‘March 7, 2012’’; and 
(B) in subsection (c), by striking ‘‘June 11, 
2012’’ and inserting ‘‘August 15, 2012’’. 
(3) Section 5 of the Unemployment Compensation 
Extension Act of 2008 (Public Law 110–449; 26 U.S.C. 
3304 note) is amended by striking ‘‘June 10, 2012’’ and 
inserting ‘‘August 15, 2012’’. 
(4) Section 203 of the Federal-State Extended Un-
employment Compensation Act of 1970 (26 U.S.C. 3304 
note) is amended— 
(A) in subsection (d), in the second sentence of 
the flush matter following paragraph (2), by striking 
‘‘December 31, 2011’’ and inserting ‘‘February 29, 
2012’’; and
(B) in subsection (f)(2), by striking ‘‘December 
31, 2011’’ and inserting ‘‘February 29, 2012’’. 
(b) FUNDING.—Section 4004(e)(1) of the Supple-
mental Appropriations Act, 2008 (Public Law 110–252; 
26 U.S.C. 3304 note) is amended— 
(1) in subparagraph (F), by striking ‘‘and’’ at 
the end; and 
(2) by inserting after subparagraph (G) the fol-
lowing: 
‘‘(H) the amendments made by section 
201(a)(1) of the Temporary Payroll Tax Cut 
Continuation Act of 2011; and’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the enact-
ment of the Tax Relief, Unemployment Insurance Reau-
thorization, and Job Creation Act of 2010 (Public Law 
111–312). 
SEC. 202. EXTENDED UNEMPLOYMENT BENEFITS UNDER 
THE RAILROAD UNEMPLOYMENT INSURANCE 
ACT. 
(a) EXTENSION.—Section 2(c)(2)(D)(iii) of the Rail-
road Unemployment Insurance Act, as added by section 
2006 of the American Recovery and Reinvestment Act of 
2009 (Public Law 111–5) and as amended by section 9 
of the Worker, Homeownership, and Business Assistance
Act of 2009 (Public Law 111–92) and section 505 of the 
Tax Relief, Unemployment Insurance Reauthorization, 
and Job Creation Act of 2010 (Public Law 111–312), is 
amended— 
(1) by striking ‘‘June 30, 2011’’ and inserting 
‘‘August 31, 2011’’; and 
(2) by striking ‘‘December 31, 2011’’ and in-
serting ‘‘February 29, 2012’’. 
(b) 
CLARIFICATION
ON
AUTHORITY
TO
USE 
FUNDS.—Funds appropriated under either the first or 
second sentence of clause (iv) of section 2(c)(2)(D) of the 
Railroad Unemployment Insurance Act shall be available 
to cover the cost of additional extended unemployment 
benefits provided under such section 2(c)(2)(D) by reason 
of the amendments made by subsection (a) as well as to 
cover the cost of such benefits provided under such section 
2(c)(2)(D), as in effect on the day before the date of the 
enactment of this Act. 
TITLE III—TEMPORARY EXTEN-
SION OF HEALTH PROVISIONS 
SEC. 301. MEDICARE PHYSICIAN PAYMENT UPDATE. 
Section 1848(d) of the Social Security Act (42 U.S.C. 
1395w–4(d)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(13) UPDATE
FOR
FIRST
TWO
MONTHS
OF 
2012.— 
‘‘(A) IN GENERAL.—Subject to paragraphs 
(7)(B), (8)(B), (9)(B), (10)(B), (11)(B), and 
(12)(B), in lieu of the update to the single con-
version factor established in paragraph (1)(C) 
that would otherwise apply for the period begin-
ning on January 1, 2012, and ending on Feb-
ruary 29, 2012, the update to the single conver-
sion factor shall be zero percent. 
‘‘(B) NO
EFFECT
ON
COMPUTATION
OF 
CONVERSION FACTOR FOR REMAINING PORTION 
OF 2012 AND SUBSEQUENT YEARS.—The con-
version factor under this subsection shall be 
computed under paragraph (1)(A) for the pe-
riod beginning on March 1, 2012, and ending 
on December 31, 2012, and for 2013 and sub-
sequent years as if subparagraph (A) had never 
applied.’’. 
SEC. 302. 2-MONTH EXTENSION OF MMA SECTION 508 RE-
CLASSIFICATIONS. 
(a) IN GENERAL.—Section 106(a) of division B of 
the Tax Relief and Health Care Act of 2006 (42 U.S.C. 
1395 note), as amended by section 117 of the Medicare, 
Medicaid, and SCHIP Extension Act of 2007 (Public Law
110–173), section 124 of the Medicare Improvements for 
Patients and Providers Act of 2008 (Public Law 110– 
275), sections 3137(a) and 10317 of the Patient Protec-
tion and Affordable Care Act (Public Law 111–148), and 
section 102(a) of the Medicare and Medicaid Extenders 
Act of 2010 (Public Law 111–309), is amended by strik-
ing ‘‘September 30, 2011’’ and inserting ‘‘November 30, 
2011’’. 
(b) SPECIAL RULE FOR OCTOBER AND NOVEMBER 
2011.— 
(1) IN GENERAL.—Subject to paragraph (2), 
for purposes of implementation of the amendment 
made by subsection (a), including for purposes of 
the implementation of paragraph (2) of section 
117(a) of the Medicare, Medicaid, and SCHIP Ex-
tension Act of 2007 (Public Law 110–173), for the 
period beginning on October 1, 2011, and ending on 
November 30, 2011, the Secretary of Health and 
Human Services shall use the hospital wage index 
that was promulgated by the Secretary of Health 
and Human Services in the Federal Register on Au-
gust 18, 2011 (76 Fed. Reg. 51476), and any subse-
quent corrections. 
(2) EXCEPTION.—In determining the wage 
index applicable to hospitals that qualify for wage
index reclassification, the Secretary shall, for the pe-
riod beginning on October 1, 2011, and ending on 
November 30, 2011, include the average hourly wage 
data of hospitals whose reclassification was extended 
pursuant to the amendment made by subsection (a) 
only if including such data results in a higher appli-
cable reclassified wage index. Any revision to hos-
pital wage indexes made as a result of this para-
graph shall not be effected in a budget neutral man-
ner. 
(c) TIMEFRAME
FOR PAYMENTS.—The Secretary 
shall make payments required under subsections (a) and 
(b) by not later than December 31, 2012. 
SEC. 303. EXTENSION OF MEDICARE WORK GEOGRAPHIC 
ADJUSTMENT FLOOR. 
Section 1848(e)(1)(E) of the Social Security Act (42 
U.S.C. 1395w–4(e)(1)(E)) is amended by striking ‘‘before 
January 1, 2012’’ and inserting ‘‘before March 1, 2012’’. 
SEC. 304. EXTENSION OF EXCEPTIONS PROCESS FOR MEDI-
CARE THERAPY CAPS. 
Section 1833(g)(5) of the Social Security Act (42 
U.S.C. 1395l(g)(5)) is amended by striking ‘‘December 
31, 2011’’ and inserting ‘‘February 29, 2012’’.
SEC. 305. EXTENSION OF PAYMENT FOR TECHNICAL COM-
PONENT OF CERTAIN PHYSICIAN PATHOL-
OGY SERVICES. 
Section 542(c) of the Medicare, Medicaid, and 
SCHIP Benefits Improvement and Protection Act of 2000 
(as enacted into law by section 1(a)(6) of Public Law 106– 
554), as amended by section 732 of the Medicare Prescrip-
tion Drug, Improvement, and Modernization Act of 2003 
(42 U.S.C. 1395w–4 note), section 104 of division B of 
the Tax Relief and Health Care Act of 2006 (42 U.S.C. 
1395w–4 note), section 104 of the Medicare, Medicaid, 
and SCHIP Extension Act of 2007 (Public Law 110– 
173), section 136 of the Medicare Improvements for Pa-
tients and Providers Act of 2008 (Public Law 110–275), 
section 3104 of the Patient Protection and Affordable 
Care Act (Public Law 111–148), and section 105 of the 
Medicare and Medicaid Extenders Act of 2010 (Public 
Law 111–309), is amended by striking ‘‘and 2011’’ and 
inserting ‘‘2011, and the first two months of 2012’’. 
SEC. 306. EXTENSION OF AMBULANCE ADD-ONS. 
(a) GROUND AMBULANCE.—Section 1834(l)(13)(A) 
of the Social Security Act (42 U.S.C. 1395m(l)(13)(A)) 
is amended— 
(1) in the matter preceding clause (i), by strik-
ing ‘‘January 1, 2012’’ and inserting ‘‘March 1, 
2012’’; and
(2) in each of clauses (i) and (ii), by striking 
‘‘January 1, 2012’’ and inserting ‘‘March 1, 2012’’ 
each place it appears. 
(b) AIR AMBULANCE.—Section 146(b)(1) of the 
Medicare Improvements for Patients and Providers Act of 
2008 (Public Law 110–275), as amended by sections 
3105(b) and 10311(b) of Public Law 111–148 and section 
106(b) of the Medicare and Medicaid Extenders Act of 
2010 (Public Law 111–309), is amended by striking ‘‘De-
cember 31, 2011’’ and inserting ‘‘February 29, 2012’’. 
(c) 
SUPER
RURAL
AMBULANCE.—Section 
1834(l)(12)(A) of the Social Security Act (42 U.S.C. 
1395m(l)(12)(A)) is amended by striking ‘‘January 1, 
2012’’ and inserting ‘‘March 1, 2012’’. 
SEC. 307. EXTENSION OF PHYSICIAN FEE SCHEDULE MEN-
TAL HEALTH ADD-ON PAYMENT. 
Section 138(a)(1) of the Medicare Improvements for 
Patients and Providers Act of 2008 (Public Law 110– 
275), as amended by section 3107 of the Patient Protec-
tion and Affordable Care Act (Public Law 111–148) and 
section 107 of the Medicare and Medicaid Extenders Act 
of 2010 (Public Law 111–309), is amended by striking 
‘‘December 31, 2011’’ and inserting ‘‘February 29, 
2012’’.
SEC. 308. EXTENSION OF OUTPATIENT HOLD HARMLESS 
PROVISION. 
Section 1833(t)(7)(D)(i) of the Social Security Act 
(42 U.S.C. 1395l(t)(7)(D)(i)), as amended by section 
3121(a) of the Patient Protection and Affordable Care Act 
(Public Law 111–148) and section 108 of the Medicare 
and Medicaid Extenders Act of 2010 (Public Law 111– 
309), is amended— 
(1) in subclause (II)— 
(A) in the first sentence, by striking ‘‘Jan-
uary 1, 2012’’ and inserting ‘‘March 1, 2012’’; 
and 
(B) in the second sentence, by striking ‘‘or 
2011’’ and inserting ‘‘2011, or the first two 
months of 2012’’; and 
(2) in subclause (III)— 
(A) in the first sentence, by striking 
‘‘2009, and’’ and all that follows through ‘‘for 
which’’ and inserting ‘‘2009, and before March 
1, 2012, for which’’; and 
(B) in the second sentence, by striking 
‘‘2010, and’’ and all that follows through ‘‘the 
preceding’’ and inserting ‘‘2010, and before 
March 1, 2012, the preceding’’.
SEC. 309. EXTENDING MINIMUM PAYMENT FOR BONE MASS 
MEASUREMENT. 
Section 1848 of the Social Security Act (42 U.S.C. 
1395w–4) is amended— 
(1) in subsection (b)— 
(A) in paragraph (4)(B), by striking ‘‘and 
2011’’ and inserting ‘‘, 2011, and the first 2 
months of 2012’’; and 
(B) in paragraph (6)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘and 2011’’ and in-
serting ‘‘, 2011, and the first 2 months of 
2012’’; and 
(ii) in subparagraph (C), by striking 
‘‘and 2011’’ and inserting ‘‘, 2011, and the 
first 2 months of 2012’’; and 
(2) in subsection (c)(2)(B)(iv)(IV), by striking 
‘‘or 2011’’ and inserting ‘‘, 2011, or the first 2 
months of 2012’’. 
SEC. 310. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) 
PROGRAM. 
(a) EXTENSION.—Section 1902(a)(10)(E)(iv) of the 
Social Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is 
amended by striking ‘‘December 2011’’ and inserting 
‘‘February 2012’’.
(b) EXTENDING TOTAL AMOUNT AVAILABLE FOR 
ALLOCATION.—Section 1933(g) of such Act (42 U.S.C. 
1396u–3(g)) is amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (O); 
(B) in subparagraph (P), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(Q) for the period that begins on January 
1, 2012, and ends on February 29, 2012, the 
total allocation amount is $150,000,000.’’. 
SEC. 311. EXTENSION OF TRANSITIONAL MEDICAL ASSIST-
ANCE (TMA). 
Sections 1902(e)(1)(B) and 1925(f) of the Social Se-
curity Act (42 U.S.C. 1396a(e)(1)(B), 1396r–6(f)) are 
each amended by striking ‘‘December 31, 2011’’ and in-
serting ‘‘February 29, 2012’’. 
SEC. 312. EXTENSION OF THE TEMPORARY ASSISTANCE 
FOR NEEDY FAMILIES PROGRAM. 
Activities authorized by part A of title IV and section 
1108(b) of the Social Security Act (other than under sub-
sections (a)(3) and (b) of section 403 of such Act) shall 
continue through February 29, 2012, in the manner au-
thorized for fiscal year 2011, and out of any money in 
the Treasury of the United States not otherwise appro-
priated, there are hereby appropriated such sums as may 
be necessary for such purpose. Grants and payments may 
be made pursuant to this authority through the applicable 
portion of the second quarter of fiscal year 2012 at the 
pro rata portion of the level provided for such activities 
through the second quarter of fiscal year 2011. 
TITLE IV—MORTGAGE FEES AND 
PREMIUMS 
SEC. 401. GUARANTEE FEES. 
Subpart A of part 2 of subtitle A of title XIII of the 
Housing and Community Development Act of 1992 is 
amended by adding after section 1326 (12 U.S.C. 4546) 
the following new section: 
‘‘SEC. 1327. ENTERPRISE GUARANTEE FEES. 
‘‘(a) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) GUARANTEE FEE.—The term ‘guarantee 
fee’— 
‘‘(A) means a fee described in subsection 
(b); and 
‘‘(B) includes— 
‘‘(i) the guaranty fee charged by the 
Federal National Mortgage Association
with respect to mortgage-backed securities; 
and 
‘‘(ii) the management and guarantee 
fee charged by the Federal Home Loan 
Mortgage Corporation with respect to par-
ticipation certificates. 
‘‘(2) AVERAGE FEES.—The term ‘average fees’ 
means the average contractual fee rate of single- 
family guaranty arrangements by an enterprise en-
tered into during 2011, plus the recognition of any 
up-front cash payments over an estimated average 
life, expressed in terms of basis points. Such defini-
tion shall be interpreted in a manner consistent with 
the annual report on guarantee fees by the Federal 
Housing Finance Agency. 
‘‘(b) INCREASE.— 
‘‘(1) IN GENERAL.— 
‘‘(A) PHASED INCREASE REQUIRED.—Sub-
ject to subsection (c), the Director shall require 
each enterprise to charge a guarantee fee in 
connection with any guarantee of the timely 
payment of principal and interest on securities, 
notes, and other obligations based on or backed 
by mortgages on residential real properties de-
signed principally for occupancy of from 1 to 4
families, consummated after the date of enact-
ment of this section. 
‘‘(B) AMOUNT.—The amount of the in-
crease required under this section shall be de-
termined by the Director to appropriately re-
flect the risk of loss, as well the cost of capital 
allocated to similar assets held by other fully 
private regulated financial institutions, but such 
amount shall be not less than an average in-
crease of 10 basis points for each origination 
year or book year above the average fees im-
posed in 2011 for such guarantees. The Direc-
tor shall prohibit an enterprise from offsetting 
the cost of the fee to mortgage originators, bor-
rowers, and investors by decreasing other 
charges, fees, or premiums, or in any other 
manner. 
‘‘(2) AUTHORITY TO LIMIT OFFER OF GUAR-
ANTEE.—The Director shall prohibit an enterprise 
from consummating any offer for a guarantee to a 
lender for mortgage-backed securities, if— 
‘‘(A) the guarantee is inconsistent with the 
requirements of this section; or 
‘‘(B) the risk of loss is allowed to increase, 
through lowering of the underwriting standards
or other means, for the primary purpose of 
meeting the requirements of this section. 
‘‘(3) DEPOSIT
IN
TREASURY.—Amounts re-
ceived from fee increases imposed under this section 
shall be deposited directly into the United States 
Treasury, and shall be available only to the extent 
provided in subsequent appropriations Acts. The fees 
charged pursuant to this section shall not be consid-
ered a reimbursement to the Federal Government 
for the costs or subsidy provided to an enterprise. 
‘‘(c) PHASE-IN.— 
‘‘(1) IN GENERAL.—The Director may provide 
for compliance with subsection (b) by allowing each 
enterprise to increase the guarantee fee charged by 
the enterprise gradually over the 2-year period be-
ginning on the date of enactment of this section, in 
a manner sufficient to comply with this section. In 
determining a schedule for such increases, the Direc-
tor shall— 
‘‘(A) provide for uniform pricing among 
lenders; 
‘‘(B) provide for adjustments in pricing 
based on risk levels; and 
‘‘(C) take into consideration conditions in 
financial markets.
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be interpreted to undermine the 
minimum increase required by subsection (b). 
‘‘(d) INFORMATION
COLLECTION
AND
ANNUAL 
ANALYSIS.—The Director shall require each enterprise to 
provide to the Director, as part of its annual report sub-
mitted to Congress— 
‘‘(1) a description of— 
‘‘(A) changes made to up-front fees and 
annual fees as part of the guarantee fees nego-
tiated with lenders; 
‘‘(B) changes to the riskiness of the new 
borrowers compared to previous origination 
years or book years; and 
‘‘(C) any adjustments required to improve 
for future origination years or book years, in 
order to be in complete compliance with sub-
section (b); and 
‘‘(2) an assessment of how the changes in the 
guarantee fees described in paragraph (1) met the 
requirements of subsection (b). 
‘‘(e) ENFORCEMENT.— 
‘‘(1) REQUIRED ADJUSTMENTS.—Based on the 
information from subsection (d) and any other infor-
mation the Director deems necessary, the Director
shall require an enterprise to make adjustments in 
its guarantee fee in order to be in compliance with 
subsection (b). 
‘‘(2) NONCOMPLIANCE
PENALTY.—An enter-
prise that has been found to be out of compliance 
with subsection (b) for any 2 consecutive years shall 
be precluded from providing any guarantee for a pe-
riod, determined by rule of the Director, but in no 
case less than 1 year. 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be interpreted as preventing the 
Director from initiating and implementing an en-
forcement action against an enterprise, at a time the 
Director deems necessary, under other existing en-
forcement authority. 
‘‘(f) EXPIRATION.—The provisions of this section 
shall expire on October 1, 2021.’’. 
SEC. 402. FHA GUARANTEE FEES. 
(a) AMENDMENT.—Section 203(c)(2) of the National 
Housing Act (12 U.S.C. 1709(c)(2)) is amended by adding 
at the end the following: 
‘‘(C)(i) In addition to the premiums under sub-
paragraphs (A) and (B), the Secretary shall estab-
lish and collect annual premium payments for any 
mortgage for which the Secretary collects an annual
premium payment under subparagraph (B), in an 
amount described in clause (ii). 
‘‘(ii)(I) Subject to subclause (II), with respect 
to a mortgage, the amount described in this clause 
is 10 basis points of the remaining insured principal 
balance (excluding the portion of the remaining bal-
ance attributable to the premium collected under 
subparagraph (A) and without taking into account 
delinquent payments or prepayments). 
‘‘(II) During the 2-year period beginning on the 
date of enactment of this subparagraph, the Sec-
retary shall increase the number of basis points of 
the annual premium payment collected under this 
subparagraph incrementally, as determined appro-
priate by the Secretary, until the number of basis 
points of the annual premium payment collected 
under this subparagraph is equal to the number de-
scribed in subclause (I).’’. 
(b) PROSPECTIVE REPEAL.—Section 203(c)(2) of the 
National Housing Act (12 U.S.C. 1709(c)(2)) is amended 
by striking subparagraph (C), as added by subsection (a), 
effective on October 1, 2021. 
(c) REPORT REQUIRED.—Not later than 30 days be-
fore the date on which the Secretary of Housing and 
Urban Development makes a determination under sub-
section (b)(2), the Secretary shall submit to the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services of the 
House of Representatives a report that— 
(1) explains the basis for the determination; 
and 
(2) identifies the date on which the Secretary 
plans to make the determination. 
TITLE V—OTHER PROVISIONS 
Subtitle A—Keystone XL Pipeline 
SEC. 501. PERMIT FOR KEYSTONE XL PIPELINE. 
(a) IN GENERAL.—Except as provided in subsection 
(b), not later than 60 days after the date of enactment 
of this Act, the President, acting through the Secretary 
of State, shall grant a permit under Executive Order No. 
13337 (3 U.S.C. 301 note; relating to issuance of permits 
with respect to certain energy-related facilities and land 
transportation crossings on the international boundaries 
of the United States) for the Keystone XL pipeline project 
application filed on September 19, 2008 (including amend-
ments). 
(b) EXCEPTION.— 
(1) IN GENERAL.—The President shall not be 
required to grant the permit under subsection (a) if
the President determines that the Keystone XL 
pipeline would not serve the national interest. 
(2) REPORT.—If the President determines that 
the Keystone XL pipeline is not in the national in-
terest under paragraph (1), the President shall, not 
later than 15 days after the date of the determina-
tion, submit to the Committee on Foreign Relations 
of the Senate, the Committee on Foreign Affairs of 
the House of Representatives, the majority leader of 
the Senate, the minority leader of the Senate, the 
Speaker of the House of Representatives, and the 
minority leader of the House of Representatives a 
report that provides a justification for determina-
tion, including consideration of economic, employ-
ment, energy security, foreign policy, trade, and en-
vironmental factors. 
(3) EFFECT OF NO FINDING OR ACTION.—If a 
determination is not made under paragraph (1) and 
no action is taken by the President under subsection 
(a) not later than 60 days after the date of enact-
ment of this Act, the permit for the Keystone XL 
pipeline described in subsection (a) that meets the 
requirements of subsections (c) and (d) shall be in 
effect by operation of law.
(c) REQUIREMENTS.—The permit granted under sub-
section (a) shall require the following: 
(1) The permittee shall comply with all applica-
ble Federal and State laws (including regulations) 
and all applicable industrial codes regarding the con-
struction, connection, operation, and maintenance of 
the United States facilities. 
(2) The permittee shall obtain all requisite per-
mits from Canadian authorities and relevant Fed-
eral, State, and local governmental agencies. 
(3) The permittee shall take all appropriate 
measures to prevent or mitigate any adverse envi-
ronmental impact or disruption of historic properties 
in connection with the construction, operation, and 
maintenance of the United States facilities. 
(4) For the purpose of the permit issued under 
subsection (a) (regardless of any modifications under 
subsection (d))— 
(A) the final environmental impact state-
ment issued by the Secretary of State on Au-
gust 26, 2011, satisfies all requirements of the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) and section 106 of the Na-
tional Historic Preservation Act (16 U.S.C. 
470f);
Subtitle B—Budgetary Provisions 
SEC. 511. SENATE POINT OF ORDER AGAINST AN EMER-
GENCY DESIGNATION. 
Section 314 of the Congressional Budget Act of 1974 
is amended by— 
(1) redesignating subsection (e) as subsection 
(f); and 
(2) inserting after subsection (d) the following: 
‘‘(e) SENATE POINT OF ORDER AGAINST AN EMER-
GENCY DESIGNATION.— 
‘‘(1) IN GENERAL.—When the Senate is consid-
ering a bill, resolution, amendment, motion, amend-
ment between the Houses, or conference report, if a 
point of order is made by a Senator against an 
emergency designation in that measure, that provi-
sion making such a designation shall be stricken 
from the measure and may not be offered as an 
amendment from the floor. 
‘‘(2) SUPERMAJORITY WAIVER AND APPEALS.— 
‘‘(A) WAIVER.—Paragraph (1) may be 
waived or suspended in the Senate only by an 
affirmative vote of three-fifths of the Members, 
duly chosen and sworn. 
‘‘(B) APPEALS.—Appeals in the Senate 
from the decisions of the Chair relating to any
provision of this subsection shall be limited to 
1 hour, to be equally divided between, and con-
trolled by, the appellant and the manager of the 
bill or joint resolution, as the case may be. An 
affirmative vote of three-fifths of the Members 
of the Senate, duly chosen and sworn, shall be 
required to sustain an appeal of the ruling of 
the Chair on a point of order raised under this 
subsection. 
‘‘(3) DEFINITION OF AN EMERGENCY DESIGNA-
TION.—For purposes of paragraph (1), a provision 
shall be considered an emergency designation if it 
designates 
any 
item 
pursuant 
to 
section 
251(b)(2)(A)(i) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985. 
‘‘(4) FORM OF THE POINT OF ORDER.—A point 
of order under paragraph (1) may be raised by a 
Senator as provided in section 313(e) of the Con-
gressional Budget Act of 1974. 
‘‘(5) CONFERENCE REPORTS.—When the Sen-
ate is considering a conference report on, or an 
amendment between the Houses in relation to, a bill, 
upon a point of order being made by any Senator 
pursuant to this section, and such point of order 
being sustained, such material contained in such
conference report shall be deemed stricken, and the 
Senate shall proceed to consider the question of 
whether the Senate shall recede from its amendment 
and concur with a further amendment, or concur in 
the House amendment with a further amendment, 
as the case may be, which further amendment shall 
consist of only that portion of the conference report 
or House amendment, as the case may be, not so 
stricken. Any such motion in the Senate shall be de-
batable. In any case in which such point of order is 
sustained against a conference report (or Senate 
amendment derived from such conference report by 
operation of this subsection), no further amendment 
shall be in order.’’. 
SEC. 512. PAYGO SCORECARD ESTIMATES. 
The budgetary effects of this Act shall not be entered 
on either PAYGO scorecard maintained pursuant to sec-
tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 
Passed the House of Representatives December 23, 
2011. 
Attest: 
Clerk.
112TH CONGRESS 
1ST SESSION 
H. R. 3765 
AN ACT 
To extend the payroll tax holiday, unemployment 
compensation, Medicare physician payment, pro-
vide for the consideration of the Keystone XL 
pipeline, and for other purposes.