114 HR 597 PCS: Export-Import Bank Reform and Reauthorization Act of 2015
U.S. House of Representatives

text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

		II
		Calendar No. 282114th CONGRESS
		1st Session
		H. R. 597
		IN THE SENATE OF THE UNITED STATES
		October 28, 2015Received; read the first timeOctober 29, 2015Read the second time and placed on the calendarAN ACT
		To reauthorize the Export-Import Bank of the United States, and for other purposes.

		1.Short title; table of contents
 (a)Short titleThis Act may be cited as the Export-Import Bank Reform and Reauthorization Act of 2015. (b)Table of contentsThe table of contents for this Act is as follows:

					Sec. 1. Short title; table of contents.
					TITLE I—Taxpayer protection provisions and increased accountability
					Sec. 101. Reduction in authorized amount of outstanding loans, guarantees, and insurance.
					Sec. 102. Increase in loss reserves.
					Sec. 103. Review of fraud controls.
					Sec. 104. Office of Ethics.
					Sec. 105. Chief Risk Officer.
					Sec. 106. Risk Management Committee.
					Sec. 107. Independent audit of bank portfolio.
					Sec. 108. Pilot program for reinsurance.
					TITLE II—Promotion of small business exports
					Sec. 201. Increase in small business lending requirements.
					Sec. 202. Report on programs for small and medium-sized businesses.
					TITLE III—Modernization of operations
					Sec. 301. Electronic payments and documents.
					Sec. 302. Reauthorization of information technology updating.
					TITLE IV—General provisions
					Sec. 401. Extension of authority.
					Sec. 402. Certain updated loan terms and amounts.
					TITLE V—Other matters
					Sec. 501. Prohibition on discrimination based on industry.
					Sec. 502. Negotiations to end export credit financing.
					Sec. 503. Study of financing for information and communications technology systems.
			ITaxpayer protection provisions and increased accountability
 101.Reduction in authorized amount of outstanding loans, guarantees, and insuranceSection 6(a) of the Export-Import Bank Act of 1945 (12 U.S.C. 635e(a)) is amended— (1)by redesignating paragraph (3) as paragraph (4); and
 (2)by striking paragraph (2) and inserting the following:  (2)Applicable amount definedIn this subsection, the term applicable amount, for each of fiscal years 2015 through 2019, means $135,000,000,000.
 (3)Freezing of lending cap if default rate is 2 percent or moreIf the rate calculated under section 8(g)(1) is 2 percent or more for a quarter, the Bank may not exceed the amount of loans, guarantees, and insurance outstanding on the last day of that quarter until the rate calculated under section 8(g)(1) is less than 2 percent..
				102.Increase in loss reserves
 (a)In generalSection 6 of the Export-Import Bank Act of 1945 (12 U.S.C. 635e) is amended— (1)by redesignating subsection (b) as subsection (c); and
 (2)by inserting after subsection (a) the following:  (b)Reserve requirementThe Bank shall build to and hold in reserve, to protect against future losses, an amount that is not less than 5 percent of the aggregate amount of disbursed and outstanding loans, guarantees, and insurance of the Bank..
 (b)Effective dateThe amendment made by subsection (a) shall take effect on the date that is 1 year after the date of the enactment of this Act.
 103.Review of fraud controlsSection 17(b) of the Export-Import Bank Reauthorization Act of 2012 (12 U.S.C. 635a–6(b)) is amended to read as follows:  (b)Review of fraud controlsNot later than 4 years after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015, and every 4 years thereafter, the Comptroller General of the United States shall—
 (1)review the adequacy of the design and effectiveness of the controls used by the Export-Import Bank of the United States to prevent, detect, and investigate fraudulent applications for loans and guarantees and the compliance by the Bank with the controls, including by auditing a sample of Bank transactions; and
 (2)submit a written report regarding the findings of the review and providing such recommendations with respect to the controls described in paragraph (1) as the Comptroller General deems appropriate to—
 (A)the Committee on Banking, Housing, and Urban Affairs and the Committee on Appropriations of the Senate; and
 (B)the Committee on Financial Services and the Committee on Appropriations of the House of Representatives..
 104.Office of EthicsSection 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is amended by adding at the end the following:  (k)Office of Ethics (1)EstablishmentThere is established an Office of Ethics within the Bank, which shall oversee all ethics issues within the Bank.
						(2)Head of office
 (A)In generalThe head of the Office of Ethics shall be the Chief Ethics Officer, who shall report to the Board of Directors.
 (B)AppointmentNot later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015, the Chief Ethics Officer shall be— (i)appointed by the President of the Bank from among persons—
 (I)with a background in law who have experience in the fields of law and ethics; and (II)who are not serving in a position requiring appointment by the President of the United States before being appointed to be Chief Ethics Officer; and
 (ii)approved by the Board. (C)Designated agency ethics officialThe Chief Ethics Officer shall serve as the designated agency ethics official for the Bank pursuant to the Ethics in Government Act of 1978 (5 U.S.C. App. 101 et seq.).
 (3)DutiesThe Office of Ethics has jurisdiction over all employees of, and ethics matters relating to, the Bank. With respect to employees of the Bank, the Office of Ethics shall—
 (A)recommend administrative actions to establish or enforce standards of official conduct; (B)refer to the Office of the Inspector General of the Bank alleged violations of—
 (i)the standards of ethical conduct applicable to employees of the Bank under parts 2635 and 6201 of title 5, Code of Federal Regulations;
 (ii)the standards of ethical conduct established by the Chief Ethics Officer; and (iii)any other laws, rules, or regulations governing the performance of official duties or the discharge of official responsibilities that are applicable to employees of the Bank;
 (C)report to appropriate Federal or State authorities substantial evidence of a violation of any law applicable to the performance of official duties that may have been disclosed to the Office of Ethics; and
 (D)render advisory opinions regarding the propriety of any current or proposed conduct of an employee or contractor of the Bank, and issue general guidance on such matters as necessary..
 105.Chief Risk OfficerSection 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a), as amended by section 104, is further amended by adding at the end the following:  (l)Chief Risk Officer (1)In generalThere shall be a Chief Risk Officer of the Bank, who shall—
 (A)oversee all issues relating to risk within the Bank; and (B)report to the President of the Bank.
 (2)AppointmentNot later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015, the Chief Risk Officer shall be— (A)appointed by the President of the Bank from among persons—
 (i)with a demonstrated ability in the general management of, and knowledge of and extensive practical experience in, financial risk evaluation practices in large governmental or business entities; and
 (ii)who are not serving in a position requiring appointment by the President of the United States before being appointed to be Chief Risk Officer; and
 (B)approved by the Board. (3)DutiesThe duties of the Chief Risk Officer are—
 (A)to be responsible for all matters related to managing and mitigating all risk to which the Bank is exposed, including the programs and operations of the Bank;
 (B)to establish policies and processes for risk oversight, the monitoring of management compliance with risk limits, and the management of risk exposures and risk controls across the Bank;
 (C)to be responsible for the planning and execution of all Bank risk management activities, including policies, reporting, and systems to achieve strategic risk objectives;
 (D)to develop an integrated risk management program that includes identifying, prioritizing, measuring, monitoring, and managing internal control and operating risks and other identified risks;
 (E)to ensure that the process for risk assessment and underwriting for individual transactions considers how each such transaction considers the effect of the transaction on the concentration of exposure in the overall portfolio of the Bank, taking into account fees, collateralization, and historic default rates; and
 (F)to review the adequacy of the use by the Bank of qualitative metrics to assess the risk of default under various scenarios..
			106.Risk Management Committee
 (a)In generalSection 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a), as amended by sections 104 and 105, is further amended by adding at the end the following:  (m)Risk management committee (1)EstablishmentThere is established a management committee to be known as the Risk Management Committee.
 (2)MembershipThe membership of the Risk Management Committee shall be the members of the Board of Directors, with the President and First Vice President of the Bank serving as ex officio members.
 (3)DutiesThe duties of the Risk Management Committee shall be— (A)to oversee, in conjunction with the Office of the Chief Financial Officer of the Bank—
 (i)periodic stress testing on the entire Bank portfolio, reflecting different market, industry, and macroeconomic scenarios, and consistent with common practices of commercial and multilateral development banks; and
 (ii)the monitoring of industry, geographic, and obligor exposure levels; and (B)to review all required reports on the default rate of the Bank before submission to Congress under section 8(g)..
 (b)Termination of Audit CommitteeNot later than 180 days after the date of the enactment of this Act, the Board of Directors of the Export-Import Bank of the United States shall revise the bylaws of the Bank to terminate the Audit Committee established by section 7 of the bylaws.
				107.Independent audit of bank portfolio
 (a)AuditThe Inspector General of the Export-Import Bank of the United States shall conduct an audit or evaluation of the portfolio risk management procedures of the Bank, including a review of the implementation by the Bank of the duties assigned to the Chief Risk Officer under section 3(l) of the Export-Import Bank Act of 1945, as amended by section 105.
 (b)ReportNot later than 1 year after the date of the enactment of this Act, and not less frequently than every 3 years thereafter, the Inspector General shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a written report containing all findings and determinations made in carrying out subsection (a).
				108.Pilot program for reinsurance
 (a)In generalNotwithstanding any provision of the Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.), the Export-Import Bank of the United States (in this section referred to as the Bank) may establish a pilot program under which the Bank may enter into contracts and other arrangements to share risks associated with the provision of guarantees, insurance, or credit, or the participation in the extension of credit, by the Bank under that Act.
				(b)Limitations on Amount of Risk-Sharing
 (1)Per contract or other arrangementThe aggregate amount of liability the Bank may transfer through risk-sharing pursuant to a contract or other arrangement entered into under subsection (a) may not exceed $1,000,000,000.
 (2)Per yearThe aggregate amount of liability the Bank may transfer through risk-sharing during a fiscal year pursuant to contracts or other arrangements entered into under subsection (a) during that fiscal year may not exceed $10,000,000,000.
 (c)Annual reportsNot later than 1 year after the date of the enactment of this Act, and annually thereafter through 2019, the Bank shall submit to Congress a written report that contains a detailed analysis of the use of the pilot program carried out under subsection (a) during the year preceding the submission of the report.
 (d)Rule of constructionNothing in this section shall be construed to affect, impede, or revoke any authority of the Bank. (e)TerminationThe pilot program carried out under subsection (a) shall terminate on September 30, 2019.
				IIPromotion of small business exports
			201.Increase in small business lending requirements
 (a)In generalSection 2(b)(1)(E)(v) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(E)(v)) is amended by striking 20 percent and inserting 25 percent. (b)Effective dateThe amendment made by subsection (a) shall apply with respect to fiscal year 2016 and each fiscal year thereafter.
				202.Report on programs for small and medium-sized businesses
 (a)In generalSection 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) is amended by adding at the end the following:  (k)Report on Programs for Small and Medium-Sized BusinessesThe Bank shall include in its annual report to Congress under subsection (a) a report on the programs of the Bank for United States businesses with less than $250,000,000 in annual sales..
 (b)Effective dateThe amendment made by subsection (a) shall apply with respect to the report of the Export-Import Bank of the United States submitted to Congress under section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) for the first year that begins after the date of the enactment of this Act.
				IIIModernization of operations
 301.Electronic payments and documentsSection 2(b)(1) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)) is amended by adding at the end the following:  (M)Not later than 2 years after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015, the Bank shall implement policies—
 (i)to accept electronic documents with respect to transactions whenever possible, including copies of bills of lading, certifications, and compliance documents, in such manner so as not to undermine any potential civil or criminal enforcement related to the transactions; and
 (ii)to accept electronic payments in all of its programs.. 302.Reauthorization of information technology updatingSection 3(j) of the Export-Import Act of 1945 (12 U.S.C. 635a(j)) is amended—
 (1)in paragraph (1), in the matter preceding subparagraph (A), by striking 2012, 2013, and 2014 and inserting 2015 through 2019; (2)in paragraph (2)(B), by striking (I) the funds and inserting (i) the funds; and
 (3)in paragraph (3), by striking 2012, 2013, and 2014 and inserting 2015 through 2019. IVGeneral provisions 401.Extension of authority (a)In generalSection 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is amended by striking 2014 and inserting 2019.
 (b)Dual-Use ExportsSection 1(c) of Public Law 103–428 (12 U.S.C. 635 note) is amended by striking September 30, 2014 and inserting the date on which the authority of the Export-Import Bank of the United States expires under section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f).
 (c)Sub-Saharan Africa Advisory CommitteeSection 2(b)(9)(B)(iii) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(9)(B)(iii)) is amended by striking September 30, 2014 and inserting the date on which the authority of the Bank expires under section 7. (d)Effective dateThe amendments made by this section shall take effect on the earlier of the date of the enactment of this Act or June 30, 2015.
				402.Certain updated loan terms and amounts
 (a)Loan Terms for Medium-Term FinancingSection 2(a)(2)(A) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(a)(2)(A)) is amended— (1)in clause (i), by striking ; and and inserting a semicolon; and
 (2)by adding at the end the following:  (iii)with principal amounts of not more than $25,000,000; and.
 (b)Competitive opportunities relating to insuranceSection 2(d)(2) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(d)(2)) is amended by striking $10,000,000 and inserting $25,000,000. (c)Export amounts for small business loansSection 3(g)(3) of the Export-Import Bank Act of 1945 (12 U.S.C. 635a(g)(3)) is amended by striking $10,000,000 and inserting $25,000,000.
 (d)Consideration of environmental effectsSection 11(a)(1)(A) of the Export-Import Bank Act of 1945 (12 U.S.C. 635i–5(a)(1)(A)) is amended by striking $10,000,000 or more and inserting the following: $25,000,000 (or, if less than $25,000,000, the threshold established pursuant to international agreements, including the Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence, as adopted by the Organisation for Economic Co-operation and Development Council on June 28, 2012, and the risk-management framework adopted by financial institutions for determining, assessing, and managing environmental and social risk in projects (commonly referred to as the Equator Principles)) or more.
 (e)Effective dateThe amendments made by this section shall apply with respect to fiscal year 2016 and each fiscal year thereafter.
				VOther matters
 501.Prohibition on discrimination based on industrySection 2 of the Export-Import Bank Act of 1945 (6 U.S.C. 635 et seq.) is amended by adding at the end the following:  (k)Prohibition on discrimination based on industry (1)In generalExcept as provided in this Act, the Bank may not—
 (A)deny an application for financing based solely on the industry, sector, or business that the application concerns; or
 (B)promulgate or implement policies that discriminate against an application based solely on the industry, sector, or business that the application concerns.
 (2)ApplicabilityThe prohibitions under paragraph (1) apply only to applications for financing by the Bank for projects concerning the exploration, development, production, or export of energy sources and the generation or transmission of electrical power, or combined heat and power, regardless of the energy source involved..
			502.Negotiations to end export credit financing
 (a)In generalSection 11 of the Export-Import Bank Reauthorization Act of 2012 (12 U.S.C. 635a–5) is amended— (1)in subsection (a)—
 (A)in the matter preceding paragraph (1), by striking Secretary of the Treasury (in this section referred to as the Secretary) and inserting President; and (B)in paragraph (1)—
 (i)by striking (OECD) and inserting (in this section referred to as the OECD); and (ii)by striking ultimate goal of eliminating and inserting possible goal of eliminating, before the date that is 10 years after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015,;
 (2)in subsection (b), by striking Secretary each place it appears and inserting President; and (3)by adding at the end the following:

 (c)Report on strategyNot later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015, the President shall submit to Congress a proposal, and a strategy for achieving the proposal, that the United States Government will pursue with other major exporting countries, including OECD members and non-OECD members, to eliminate over a period of not more than 10 years subsidized export-financing programs, tied aid, export credits, and all other forms of government-supported export subsidies.
 (d)Negotiations with non-OECD membersThe President shall initiate and pursue negotiations with countries that are not OECD members to bring those countries into a multilateral agreement establishing rules and limitations on officially supported export credits.
 (e)Annual reports on progress of negotiationsNot later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015, and annually thereafter through calendar year 2019, the President shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the progress of any negotiations described in subsection (d)..
 (b)Effective dateThe amendments made by paragraphs (1) and (2) of subsection (a) shall apply with respect to reports required to be submitted under section 11(b) of the Export-Import Bank Reauthorization Act of 2012 (12 U.S.C. 635a–5(b)) after the date of the enactment of this Act.
				503.Study of financing for information and communications technology systems
 (a)Analysis of information and communications technology industry use of bank productsThe Export-Import Bank of the United States (in this section referred to as the Bank) shall conduct a study of the extent to which the products offered by the Bank are available and used by companies that export information and communications technology services and related goods.
 (b)ElementsIn conducting the study required by subsection (a), the Bank shall examine the following: (1)The number of jobs in the United States that are supported by the export of information and communications technology services and related goods, and the degree to which access to financing will increase exports of such services and related goods.
 (2)The reduction in the financing by the Bank of exports of information and communications technology services from 2003 through 2014.
 (3)The activities of foreign export credit agencies to facilitate the export of information and communications technology services and related goods.
 (4)Specific proposals for how the Bank could provide additional financing for the exportation of information and communications technology services and related goods through risk-sharing with other export credit agencies and other third parties.
 (5)Proposals for new products the Bank could offer to provide financing for exports of information and communications technology services and related goods, including—
 (A)the extent to which the Bank is authorized to offer new products; (B)the extent to which the Bank would need additional authority to offer new products to meet the needs of the information and communications technology industry;
 (C)specific proposals for changes in law that would enable the Bank to provide increased financing for exports of information and communications technology services and related goods in compliance with the credit and risk standards of the Bank;
 (D)specific proposals that would enable the Bank to provide increased outreach to the information and communications technology industry about the products the Bank offers; and
 (E)specific proposals for changes in law that would enable the Bank to provide the financing to build information and communications technology infrastructure, in compliance with the credit and risk standards of the Bank, to allow for market access opportunities for United States information and communications technology companies to provide services on the infrastructure being financed by the Bank.
 (c)ReportNot later than 180 days after the date of the enactment of this Act, the Bank shall submit to Congress a report that contains the results of the study required by subsection (a).

	Passed the House of Representatives October 27, 2015.Karen L. Haas,Clerk
	October 29, 2015Read the second time and placed on the calendar


		I
		111th CONGRESS
		2d Session
		H. R. 4707
		IN THE HOUSE OF REPRESENTATIVES

			February 25, 2010
			Mr. Schauer
			 introduced the following bill; which was referred to the
			 Committee on Ways and
			 Means

		A BILL
		To extend the emergency unemployment compensation program
		  through the end of fiscal year 2010.

		1.Short titleThis Act may be cited as the
			 Unemployment Insurance Extension Act of
			 2010.
		2.Extension of
			 emergency unemployment compensation program through the end of fiscal year
			 2010
			(a)Emergency
			 unemployment compensation
				(1)In
			 generalSection 4007 of the
			 Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note)
			 is amended—
					(A)by striking
			 February 28, 2010 each place it appears and inserting
			 September 30, 2010;
					(B)in the heading for
			 subsection (b)(2), by striking february 28, 2010 and inserting
			 september 30,
			 2010; and
					(C)in subsection
			 (b)(3), by striking July 31, 2010 and inserting February
			 28, 2011.
					(2)Additional
			 regular compensationSection 2002(e) 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. 438), is amended—
					(A)in paragraph
			 (1)(B), by striking February 28, 2010 and inserting
			 September 30, 2010;
					(B)in the heading for
			 paragraph (2), by striking february 28, 2010 and inserting
			 september 30,
			 2010; and
					(C)in paragraph (3),
			 by striking August 31, 2010 and inserting March 31,
			 2011.
					(3)Full funding of
			 extended benefitsSection 2005 of the Assistance for Unemployed
			 Workers and Struggling Families Act is amended—
					(A)by striking
			 February 28, 2010 each place it appears and inserting
			 September 30, 2010; and
					(B)in subsection (c),
			 by striking July 31, 2010 and inserting February 28,
			 2011.
					(4)Extension of
			 temporary Federal matching for the first week of extended benefits for States
			 with no waiting weekSection 5 of the Unemployment Compensation
			 Extension Act of 2008 (Public Law 110–449; 26 U.S.C. 3304 note) is amended by
			 striking July 31, 2010 and inserting September 30,
			 2010.
				(5)Technical
			 correctionSection 4007(b)(2) of the Supplemental Appropriations
			 Act, 2008 is amended by striking of section 4002 of section 4002
			 and inserting of section 4002.
				(b)Funding for
			 temporary extension of certain unemployment benefitsSection 4004(e)(1) of the Supplemental
			 Appropriations Act, 2008 is amended—
				(1)in subparagraph
			 (B), by striking and at the end; and
				(2)by adding after
			 subparagraph (C) the following:

						(D)the amendments made by section 2 of the
				Unemployment Insurance Extension Act of 2010;
				and
						.


115 HR 404 IH: Safe and Secure Federal Websites Act of 2017
U.S. House of Representatives
2017-01-10
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I115th CONGRESS1st SessionH. R. 404IN THE HOUSE OF REPRESENTATIVESJanuary 10, 2017Mr. Fleischmann introduced the following bill; which was referred to the Committee on Oversight and Government ReformA BILLTo ensure the functionality and security of new Federal websites that collect personally
			 identifiable information, and for other purposes.

 1.Short titleThis Act may be cited as the Safe and Secure Federal Websites Act of 2017. 2.Ensuring functionality and security of new Federal websites that collect personally identifiable information (a)Certification requirement (1)In generalExcept as otherwise provided under this subsection, an agency may not deploy or make available to the public a new Federal PII website until the date on which the chief information officer of the agency submits a certification to Congress that the website is fully functional and secure.
 (2)TransitionIn the case of a new Federal PII website that is operational on the date of the enactment of this Act, paragraph (1) shall not apply until the end of the 90-day period beginning on such date of enactment. If the certification required under paragraph (1) for such website has not been submitted to Congress before the end of such period, the head of the responsible agency shall render the website inaccessible to the public until such certification is submitted to Congress.
 (3)Exception for beta website with explicit permissionParagraph (1) shall not apply to a website (or portion thereof) that is in a development or testing phase, if the following conditions are met:
 (A)A member of the public may access PII-related portions of the website only after executing an agreement that acknowledges the risks involved.
 (B)No agency compelled, enjoined, or otherwise provided incentives for such a member to access the website for such purposes.
 (4)ConstructionNothing in this section shall be construed as applying to a website that is operated entirely by an entity (such as a State or locality) that is independent of the Federal Government, regardless of the receipt of funding in support of such website from the Federal Government.
 (b)DefinitionsIn this section: (1)AgencyThe term agency has the meaning given that term under section 551 of title 5, United States Code.
 (2)Fully functionalThe term fully functional means, with respect to a new Federal PII website, that the website can fully support the activities for which it is designed or intended with regard to the eliciting, collection, storage, or maintenance of personally identifiable information, including handling a volume of queries relating to such information commensurate with the purpose for which the website is designed.
 (3)New Federal personally identifiable information website (New Federal PII website)The terms new Federal personally identifiable information website and new Federal PII website mean a website that— (A)is operated by (or under a contract with) an agency;
 (B)elicits, collects, stores, or maintains personally identifiable information of individuals and is accessible to the public; and
 (C)is first made accessible to the public and collects or stores personally identifiable information of individuals, on or after October 1, 2012.
 (4)OperationalThe term operational means, with respect to a website, that such website elicits, collects, stores, or maintains personally identifiable information of members of the public and is accessible to the public.
 (5)Personally identifiable information (PII)The terms personally identifiable information and PII mean any information about an individual elicited, collected, stored, or maintained by an agency, including—
 (A)any information that can be used to distinguish or trace the identity of an individual, such as a name, a social security number, a date and place of birth, a mother’s maiden name, or biometric records; and
 (B)any other information that is linked or linkable to an individual, such as medical, educational, financial, and employment information.
 (6)Responsible agencyThe term responsible agency means, with respect to a new Federal PII website, the agency that is responsible for the operation (whether directly or through contracts with other entities) of the website.
 (7)SecureThe term secure means, with respect to a new Federal PII website, that the following requirements are met: (A)The website is in compliance with subchapter II of chapter 35 of title 44, United States Code.
 (B)The website ensures that personally identifiable information elicited, collected, stored, or maintained in connection with the website is captured at the latest possible step in a user input sequence.
 (C)The responsible agency for the website has encrypted, masked, or taken other similar actions to protect personally identifiable information elicited, collected, stored, or maintained in connection with the website.
 (D)The responsible agency for the website has taken reasonable efforts to minimize domain name confusion, including through additional domain registrations.
 (E)The responsible agency requires all personnel who have access to personally identifiable information in connection with the website to have completed a Standard Form 85P and signed a nondisclosure agreement with respect to personally identifiable information, and the agency takes proper precautions to ensure that only the fewest reasonable number of trustworthy persons may access such information.
 (F)The responsible agency maintains (either directly or through contract) sufficient personnel to respond in a timely manner to issues relating to the proper functioning and security of the website, and to monitor on an ongoing basis existing and emerging security threats to the website.
 (8)StateThe term State means each State of the United States, the District of Columbia, each territory or possession of the United States, and each federally recognized Indian tribe.
				3.Privacy breach requirements
 (a)Information security amendmentSubchapter II of chapter 35 of title 44, United States Code, is amended by adding at the end the following:

					3559.Privacy breach requirements
 (a)Policies and ProceduresThe Director of the Office of Management and Budget shall establish and oversee policies and procedures for agencies to follow in the event of a breach of information security involving the disclosure of personally identifiable information, including requirements for—
 (1)not later than 72 hours after the agency discovers such a breach, or discovers evidence that reasonably indicates such a breach has occurred, notice to the individuals whose personally identifiable information could be compromised as a result of such breach;
 (2)timely reporting to a Federal cybersecurity center, as designated by the Director of the Office of Management and Budget; and
 (3)any additional actions that the Director finds necessary and appropriate, including data breach analysis, fraud resolution services, identity theft insurance, and credit protection or monitoring services.
 (b)Required Agency ActionThe head of each agency shall ensure that actions taken in response to a breach of information security involving the disclosure of personally identifiable information under the authority or control of the agency comply with policies and procedures established by the Director of the Office of Management and Budget under subsection (a).
 (c)ReportNot later than March 1 of each year, the Director of the Office of Management and Budget shall report to Congress on agency compliance with the policies and procedures established under subsection (a).
 (d)Federal cybersecurity center definedThe term Federal cybersecurity center means any of the following: (1)The Department of Defense Cyber Crime Center.
 (2)The Intelligence Community Incident Response Center. (3)The United States Cyber Command Joint Operations Center.
 (4)The National Cyber Investigative Joint Task Force. (5)Central Security Service Threat Operations Center of the National Security Agency.
 (6)The United States Computer Emergency Readiness Team. (7)Any successor to a center, team, or task force described in paragraphs (1) through (6).
 (8)Any center that the Director of the Office of Management and Budget determines is appropriate to carry out the requirements of this section..
 (b)Technical and Conforming AmendmentThe table of sections for subchapter II of chapter 35 of title 44, United States Code, is amended by adding at the end the following:

						3559. Privacy breach requirements..


		I
		110th CONGRESS
		2d Session
		S. 3208
		IN THE SENATE OF THE UNITED STATES

			June 26, 2008
			Mr. Conrad (for himself
			 and Mr. Hatch) introduced the following
			 bill; which was read twice and referred to the
			 Committee on
			 Finance

		A BILL
		To amend the Internal Revenue Code of 1986 to provide tax
		  incentives for clean coal technology, and for other purposes.

		1.Short title;
			 findings
			(a)Short
			 titleThis Act may be cited
			 as the Carbon Reduction Technology
			 Bridge Act of 2008.
			(b)FindingsThe
			 Congress finds the following:
				(1)Significantly reducing greenhouse gas
			 emissions from U.S. coal plants must be part of a strategy to address climate
			 change.
				(2)Carbon capture and
			 sequestration is the key to continued enjoyment of the energy security and
			 economic benefits associated with the use of the Nation's abundant domestic
			 coal resources for power generation.
				(3)Multiple
			 technology demonstrations that increase the efficiency of power plants and
			 thereby reduce carbon dioxide emissions and that demonstrate carbon dioxide
			 capture and sequestration are needed in the near-term as a bridge to a reliable
			 and affordable power system that can achieve future greenhouse gas reduction
			 goals.
				2.Seven-year
			 amortization for certain systems installed on coal-fired electric generation
			 units after 2007
			(a)In
			 generalSubsection (d) of section 169 of the Internal Revenue
			 Code of 1986 (relating to amortization of pollution control facilities) is
			 amended by adding at the end the following new paragraph:

					(6)Special rule for
				systems installed on coal-fired electric generation units after 2007
						(A)In
				generalAny mechanical or electronic system—
							(i)which is installed on a coal-fired electric
				generation unit after December 31, 2007, and
							(ii)which reduces
				carbon dioxide emissions per net megawatt hour of electricity generation by 1
				or more of the means described in subparagraph (B) or any other means,
							shall
				be treated for purposes of this section as an identifiable treatment facility
				which abates or controls atmospheric pollution or contamination by removing,
				altering, disposing, storing, or preventing the creation or emission of
				pollutants, contaminants, wastes, or heat. Paragraph (1)(C) of this subsection,
				and subsection (e), shall not apply to any system which is so treated.(B)Means for
				reducing emissionsThe means described in this subparagraph
				are—
							(i)optimizing
				combustion,
							(ii)optimizing
				sootblowing and heat transfer,
							(iii)upgrading steam
				temperature control capabilities,
							(iv)reducing exit gas
				temperatures (air heater modifications),
							(v)predrying low rank
				coals using power plant waste heat,
							(vi)modifying steam
				turbines or change the steam path/blading,
							(vii)replacing single
				speed motors with variable speed drives for fans and pumps, and
							(viii)improving
				operational controls, including neural networks.
							(C)Special rule for
				minimum taxSection 56(a)(5) shall not apply to property to which
				this paragraph
				applies.
						.
			(b)Effective
			 dateThe amendment made by this section shall apply to property
			 placed in service after December 31, 2007.
			3.Credit for
			 closed–loop biomass co-fired with coal
			(a)In
			 generalSubparagraph (A) of section 45(d)(2) of the Internal
			 Revenue Code of 1986 (relating to closed-loop biomass facility) is amended by
			 striking the period at the end of clause (ii) and inserting , or
			 and by adding after clause (ii) the following new clause:

					(iii)owned by the
				taxpayer which before January 1, 2014, is originally placed in service
				as—
						(I)a facility to use
				closed-loop biomass to co-fire (or, in the case of an integrated gasification
				combined cycle facility, co-process) with coal, or
						(II)a coal-fired facility which is modified to
				use closed-loop biomass to co-fire (or, in the case of an integrated
				gasification combined cycle facility, co-process) with
				coal.
						.
			(b)Conforming
			 amendmentSubparagraph (B) of section 45(d)(2) of such Code is
			 amended by striking subparagraph (A)(ii)  and inserting
			 clause (ii) or (iii) of subparagraph (A).
			(c)Effective
			 dateThe amendments made by this section shall take effect on the
			 date of the enactment of this Act.
			4.Credit for
			 investment in qualified new clean coal electric generation units
			(a)In
			 generalSubpart E of part IV
			 of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to
			 rules for computing investment credit) is amended by inserting after section
			 48B the following new section:

					48C.Qualifying new
				clean coal electric generation unit credit
						(a)General
				ruleFor purposes of section
				46, the qualifying new clean coal electric generation credit for any taxable
				year is an amount equal to the applicable percentage of the qualified
				investment for such taxable year.
						(b)Applicable
				percentageFor purposes of
				subsection (a)—
							(1)In
				generalExcept as provided in paragraph (2), the applicable
				percentage is the percentage determined under the following table using the
				design net heat rate of the qualified clean coal electric generation
				unit.

											Design Net Heat Rate in Btus/kilowatt
						hourPercentage

											More than 8,322 but not more than 8,530 (40%)10

											More than 8,120 but not more than 8,322 (41%)10

											More than 7,940 but not more than 8,120 (42%)20

											More than 7,760 but not more than 7,940 (43%)26

											More than 7,580 but not more than 7,760 (44%)28

											Not more than 7,580 (45%)30

							(2)Election to use
				alternative method for determining percentageIn the case of a qualified clean coal
				electric generation unit which is designed to emit carbon dioxide at an average
				annual rate of not more than 800 pounds per net megawatt hour of electricity
				generation, in lieu of applying paragraph (1), the taxpayer may elect an
				applicable percentage of 30 percent.
							(c)Qualified
				investment
							(1)In
				generalFor purposes of
				subsection (a), the qualified investment for any taxable year is the basis of
				property placed in service by the taxpayer during such taxable year as part of,
				or in connection with, a qualified clean coal electric generation unit—
								(A)(i)the construction, reconstruction, or
				erection of which is completed by the taxpayer, or
									(ii)which is acquired by the taxpayer
				if the original use of such property commences with the taxpayer, and
									(B)with respect to
				which depreciation (or amortization in lieu of depreciation) is
				allowable.
								(2)Special rule for
				certain subsidized propertyRules similar to section 48(a)(4) shall
				apply for purposes of this section.
							(3)Certain
				qualified progress expenditures rules made applicableRules similar to the rules of subsections
				(c)(4) and (d) of section 46 (as in effect on the day before the enactment of
				the Revenue Reconciliation Act of 1990) shall apply for purposes of this
				section.
							(d)Aggregate
				credits
							(1)In
				generalNo credit shall be allowed under this section with
				respect to any qualified clean coal electric generation unit unless such unit
				is certified by the Secretary under subsection (f).
							(2)Limitation on
				units certifiedThe Secretary may certify under subsection (f) in
				the aggregate no more than 6,000 megawatts of electric generation units.
							(e)DefinitionsFor
				purposes of this section—
							(1)Qualified clean
				coal electric generation unitThe term qualified clean coal
				electric generation unit means a coal-based electric generation unit
				if—
								(A)the unit achieves a
				design net heat rate of not more than 8,530 Btu/Kw-hr,
								(B)the unit is
				designed to meet the performance requirements specified in the table contained
				in section 48A(f)(1)(B),
								(C)the unit includes—
									(i)carbon dioxide
				capture, transport, and storage property (as defined in section 48D(c)) for
				carbon dioxide produced by such unit, and
									(ii)1
				or more sites for the storage of such carbon dioxide,
									(D)the unit is designed to capture, and store,
				at least—
									(i)500,000 metric
				tons per year of carbon dioxide if such unit is among the first 1,000 megawatts
				of electric generation units certified by the Secretary under subsection (f),
				and
									(ii)1,000,000 metric tons per year of carbon
				dioxide if such unit is among the next 3,000 megawatts of electric generation
				units certified by the Secretary under subsection (f), and
									(iii)2,000,000
				metric tons per year of carbon dioxide for any other unit,
									(E)the fuel input for the unit, when
				completed, is at least 75 percent coal, and
								(F)the unit is
				located in the United States.
								(2)Design net heat
				rateDesign net heat rate
				shall be determined as provided in section 48A(f)(2) and before any energy loss
				resulting from the operation of the carbon dioxide capture process.
							(3)CoalThe term coal means bituminous
				coal, subbituminous coal, and lignite.
							(4)Electric
				generation unitThe term
				electric generation unit means any unit at least 50 percent of the
				total annual net output of which is electrical power, including an otherwise
				eligible unit which is used in an industrial application.
							(f)Certification
							(1)Certification
				processThe Secretary, in
				consultation with the Secretary of Energy and the Administrator of the
				Environmental Protection Agency, shall establish a certification process to
				determine if a coal-based electric generation unit meets all criteria and other
				requirements to be recognized as a qualified clean coal electric generation
				unit. The certification process shall also be designed to determine the
				efficiency (and, in the case of an election under subsection (b)(2), the carbon
				dioxide emission rate) of such unit to establish the amount of the credit under
				subsection (a).
							(2)Priority for
				units exceeding capture and storage requirementsIn determining
				which qualified clean coal generation units to certify under subsection (f),
				the Secretary shall give high priority to those units which exceed the carbon
				dioxide and storage requirements provided in subsection (e)(1)(D).
							(3)Feedstock
				requirementsAfter the date
				of publication by the Secretary of the final certification process referred to
				in subsection (d), the Secretary shall allocate the limitation in subsection
				(d)(2) in equal amounts among—
								(A)units using
				bituminous coal as a primary feedstock,
								(B)units using
				subbituminous coal as a primary feedstock, and
								(C)units using
				lignite as a primary feedstock.
								(4)RedistributionThe Secretary may reallocate credits if the
				Secretary determines that there is an insufficient quantity of qualifying
				applications for certification, pending at the time of review, to comply with
				the feedstock requirements of paragraph (3). The Secretary may conduct an
				additional program for applications for certification and reallocate available
				credits without regard to the feedstock requirement which was not satisfied as
				a result of insufficient applications for certification.
							(5)Requirements for
				applications for certificationAn application for certification
				shall contain such information as the Secretary may require in order to make a
				determination to accept or reject the application and establish applicable
				credit entitlement. Any information contained in the application shall be
				protected as provided in section 552(b)(4) of title 5, United States
				Code.
							(g)Denial of double
				benefitNo credit shall be allowed under this section for any
				property for which credit is allowed under sections 48A, 48B, or
				48D.
						.
			(b)Conforming
			 amendments
				(1)Section 46 of such Code (relating to amount
			 of credit) is amended by striking and at the end of paragraph
			 (3), by striking the period at the end of paragraph (4) and inserting ,
			 and, and by adding at the end the following new paragraph:

						(5)the qualifying new clean coal electric
				generation
				credit.
						.
				(2)Subparagraph (C) of section 49(a)(1) of
			 such Code is amended by striking and at the end of clause (iii),
			 by striking the period at the end of clause (iv) and inserting ,
			 and, and by adding after clause (iv) the following new clause:

						(v)the basis of any property which is part of
				a qualifying clean coal electric generation unit under section
				48C.
						.
				(3)The table of sections for subpart E of part
			 IV of subchapter A of chapter 1 of such Code is amended by inserting after the
			 item relating to section 48B the following new item:

						Sec. 48C. Qualifying new clean coal
				electric generation unit credit..

				(c)Effective
			 dateThe amendments made by
			 this section shall apply to periods after the date of the enactment of this Act
			 under rules similar to the rules of section 48(m) of the Internal Revenue Code
			 of 1986 (as in effect on the day before the date of the enactment of the
			 Revenue Reconciliation Act of 1990).
			5.Tax credit for
			 installation of carbon dioxide capture, transport, and storage
			 equipment
			(a)In
			 generalSubpart E of part IV
			 of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to
			 rules for computing investment credit) is amended by inserting after section
			 48C the following new section:

					48D.Qualifying
				carbon dioxide capture, transport, and storage equipment credit
						(a)General
				ruleFor purposes of section
				46, the qualifying carbon dioxide equipment credit for any taxable year is an
				amount equal to 30 percent of the qualified investment for such taxable
				year.
						(b)Qualified
				investment
							(1)In
				generalFor purposes of
				subsection (a), the qualified investment for any taxable year is the basis
				eligible property which is placed in service by the taxpayer during such
				taxable year.
							(2)Special rule for
				certain subsidized propertyRules similar to section 48(a)(4) shall
				apply for purposes of this section.
							(3)Certain
				qualified progress expenditures rules made applicableRules similar to the rules of subsections
				(c)(4) and (d) of section 46 (as in effect on the day before the enactment of
				the Revenue Reconciliation Act of 1990) shall apply for purposes of this
				section.
							(c)DefinitionsFor
				purposes of this section—
							(1)Eligible
				propertyThe term
				eligible property means carbon dioxide capture, transport, and
				storage property—
								(A)which is part of
				(or used in connection with) a qualified coal-fired electric generation unit of
				the taxpayer,
								(B)(i)the construction, reconstruction, or
				erection of which is completed by the taxpayer, or
									(ii)which is acquired by the taxpayer
				if the original use of such property commences with the taxpayer, and
									(C)with respect to
				which depreciation (or amortization in lieu of depreciation) is
				allowable.
								(2)Carbon dioxide
				capture, transport, and storage propertyThe term carbon dioxide capture,
				transport, and storage property means equipment to capture, transport,
				or store carbon dioxide produced at such unit, including—
								(A)equipment to
				separate and pressurize carbon dioxide for transport (including equipment to
				operate such equipment), and
								(B)equipment to transport, inject, and monitor
				such carbon dioxide.
								(3)Qualified
				coal-fired electric generation unitThe term qualified
				coal-fired electric generation unit means any coal-fired electric
				generation unit—
								(A)which, after installation of eligible
				property, is designed—
									(i)to
				emit carbon dioxide at an average annual rate of less than 1,100 pounds of
				carbon dioxide per net megawatt hour of electricity generation, or
									(ii)to capture and
				store in a secure geologic formation at least 500,000 metric tons of carbon
				dioxide per year,
									(B)the fuel input for which is at least 75
				percent coal, and
								(C)which is located
				in the United States.
								(4)CoalThe term coal means bituminous
				coal, subbituminous coal, and lignite.
							(d)Aggregate
				credits
							(1)In
				generalNo credit shall be
				allowed under this section for property which is part of (or used in connection
				with) a qualified coal-fired electric generation unit unless such unit is
				certified by the Secretary under subsection (e).
							(2)Limitation on
				units certifiedThe Secretary may certify under subsection (e) in
				the aggregate no more than 9,000 megawatts of electric generation units.
							(e)Certification
							(1)Certification
				processThe Secretary shall establish a certification process for
				purposes of this section.
							(2)Feedstock
				requirementsDuring the first
				24 months after the date of publication by the Secretary of the final
				certification process referred to in paragraph (1), the Secretary shall
				allocate the limitation in subsection (d)(2) in equal amounts among—
								(A)units using
				bituminous coal as a primary feedstock,
								(B)units using
				subbituminous coal as a primary feedstock, and
								(C)units using
				lignite as a primary feedstock.
								(3)RedistributionThe
				Secretary may reallocate credits if the Secretary determines that there is an
				insufficient quantity of qualifying applications for certification, pending at
				the time of review, to comply with the feedstock requirements of paragraph (2).
				The Secretary may conduct an additional program for applications for
				certification and reallocate available credits without regard to the feedstock
				requirement which was not satisfied as a result of insufficient applications
				for certification.
							(4)Requirements for
				applications for certificationAn application for certification
				shall contain such information as the Secretary may require in order to
				establish credit entitlement. Any information contained in an application shall
				be protected as provided in section 552(b)(4) of title 5, United States
				Code.
							.
			(b)Conforming
			 amendments
				(1)Section 46 of such Code (relating to amount
			 of credit), as amended by this Act, is amended by striking and
			 at the end of paragraph (4), by striking the period at the end of paragraph (5)
			 and inserting , and, and by adding at the end the following new
			 paragraph:

						(6)the qualifying carbon dioxide equipment
				credit.
						.
				(2)Subparagraph (C) of section 49(a)(1) of
			 such Code, as amended by this Act, is amended by striking and at
			 the end of clause (iv), by striking the period at the end of clause (v) and
			 inserting , and, and by adding after clause (v) the following
			 new clause:

						(vi)the basis of any eligible property (as
				defined in section
				48D(c)(1)).
						.
				(3)The table of
			 sections for such subpart E is amended by inserting after the item relating to
			 section 48C the following new item:

						Sec. 48D. Qualifying carbon dioxide
				capture, transport, and storage equipment credit..

				(c)Effective
			 dateThe amendments made by
			 this section shall apply to periods after the date of the enactment of this Act
			 under rules similar to the rules of section 48(m) of the Internal Revenue Code
			 of 1986 (as in effect on the day before the date of the enactment of the
			 Revenue Reconciliation Act of 1990).
			6.Tax credit for
			 carbon dioxide sequestration
			(a)In
			 generalSubpart D of part IV of subchapter A of chapter 1 of the
			 Internal Revenue Code of 1986 (relating to business related credits) is amended
			 by adding at the end the following new section:

					45Q.Credit for
				carbon dioxide sequestration
						(a)General
				ruleFor purposes of section 38, the carbon dioxide sequestration
				credit for any taxable year is an amount equal to the sum of—
							(1)$30 per metric ton
				of qualified carbon dioxide which is stored by the taxpayer in secure
				geological storage,
							(2)$20 per metric ton of qualified carbon
				dioxide which is compressed, and transferred, by the taxpayer to the United
				States at a facility under such rules and conditions as the Federal Government
				shall prescribe not later than 18 months prior to any transfer, and
							(3)$15 per metric ton
				of qualified carbon dioxide which is used by the taxpayer as a tertiary
				injectant in a qualified enhanced oil or natural gas recovery project.
							(b)Qualified carbon
				dioxideFor purposes of this
				section, the term qualified carbon dioxide means carbon
				dioxide—
							(1)which is captured from a qualified electric
				generation unit during the 10-year period beginning on the date that carbon
				dioxide capture equipment was originally placed in service at such unit,
							(2)which would
				otherwise be released into the atmosphere, and
							(3)which is measured
				at the source of capture and verified at the point of disposal or
				injection.
							(c)Qualified
				electric generation unitFor
				purposes of this section, the term qualified electric generation
				unit means any electric generation unit (as defined in section
				48A(c)(6))—
							(1)which is owned by
				the taxpayer,
							(2)at which the fuel input is at least 75
				percent coal,
							(3)at which carbon dioxide capture equipment
				is placed in service,
							(4)which—
								(A)captures not less
				than 500,000 metric tons of carbon dioxide during the taxable year, or
								(B)is designed to emit carbon dioxide at an
				average annual rate of less than 1,100 pounds of carbon dioxide per net
				megawatt hour of electricity generated during the taxable year, and
								(5)which is located
				in—
								(A)the United States
				(within the meaning of section 638(1)), or
								(B)a possession of the
				United States (within the meaning of section 638(2)).
								(d)Aggregate
				credits
							(1)In
				generalNo credit shall be
				allowed under this section for carbon dioxide captured from a qualified
				facility unless such facility is certified by the Secretary for purposes of
				this section. The owner of a qualified facility may request to be certified for
				purposes of this section by submitted a request to the Secretary containing
				such information as the Secretary may require.
							(2)Limitation on
				units certifiedThe Secretary may certify in the aggregate no
				more than 9,000 megawatts of electric generation units.
							(e)Certification
							(1)Certification
				processThe Secretary shall establish a certification process for
				purposes of this section.
							(2)Feedstock
				requirementsDuring the first
				24 months after the date of publication by the Secretary of the final
				certification process referred to in paragraph (1), the Secretary shall
				allocate the limitation in subsection (d)(2) in equal amounts among—
								(A)units using
				bituminous coal as a primary feedstock,
								(B)units using
				subbituminous coal as a primary feedstock, and
								(C)units using
				lignite as a primary feedstock.
								(3)RedistributionThe Secretary may reallocate credits if the
				Secretary determines that there is an insufficient quantity of qualifying
				applications for certification, pending at the time of review, to comply with
				the feedstock requirements of paragraph (2). The Secretary may conduct an
				additional program for applications for certification and reallocate available
				credits without regard to the feedstock requirement which was not satisfied as
				a result of insufficient applications for certification.
							(4)Requirements for
				applications for certificationAn application for certification
				shall contain such information as the Secretary may require in order to make a
				determination to accept or reject the application and establish applicable
				credit entitlement. Any information contained in the application shall be
				protected as provided in section 552(b)(4) of title 5, United States
				Code.
							(f)Special rules
				and other definitionsFor purposes of this section—
							(1)Secure geological
				storageThe Secretary, in consultation with the Administrator of
				the Environmental Protection Agency, shall establish regulations for
				determining adequate security measures for the geological storage of carbon
				dioxide under subsection (a)(1)(B). Such regulation shall include storage
				within deep saline formations and umninable coal seams under such conditions as
				the Secretary may determine under such regulations.
							(2)Rules relating
				to use as tertiary injectant
								(A)Tertiary
				injectantThe term tertiary injectant has the same
				meaning as when used within section 193(b)(1).
								(B)Qualified
				enhanced oil or natural gas recovery projectThe term
				qualified enhanced oil or natural gas recovery project has the
				meaning given the term qualified enhanced oil recovery project by
				section 43(c)(2), determined by substituting crude oil or natural
				gas for crude oil in subparagraph (A)(i) thereof.
								(C)Recycled carbon
				dioxideNo credit shall be allowed under this section for carbon
				dioxide that is recaptured, recycled, and reinjected as part of the enhanced
				oil and natural gas recovery process.
								(3)Credit
				attributable to taxpayerAny credit under this section shall be
				attributable to the person that captures and physically or contractually
				ensures the disposal of or the use as a tertiary injectant of the qualified
				carbon dioxide, except to the extent provided in regulations prescribed by the
				Secretary.
							(4)RecaptureThe
				Secretary shall, by regulations, provide for recapturing the benefit of any
				credit allowable under subsection (a) with respect to any qualified carbon
				dioxide which ceases to be captured, disposed of, or used as a tertiary
				injectant in a manner consistent with the requirements of this section.
							(5)Inflation
				adjustmentIn the case of any taxable year beginning in a
				calendar year after 2008, there shall be substituted for each dollar amount
				contained in subsection (a) an amount equal to the product of—
								(A)such dollar
				amount, multiplied by
								(B)the inflation
				adjustment factor for such calendar year determined under section 43(b)(3)(B)
				for such calendar year, determined by substituting 2008 for
				1990.
								(6)CoalThe term coal means bituminous
				coal, subbituminous coal, and
				lignite.
							.
			(b)Conforming
			 amendmentSection 38(b) of such Code is amended by striking
			 plus at the end of paragraph (32), by striking the period at the
			 end of paragraph (33) and inserting , plus, and by adding at the
			 end of following new paragraph:

					(34)the carbon dioxide sequestration credit
				determined under section
				45Q(a).
					.
			(c)Clerical
			 amendmentThe table of sections for subpart D of part IV of
			 subchapter A of chapter 1 of such Code is amended by adding at the end the
			 following new item:

						Sec. 45Q. Credit for carbon dioxide
				sequestration.

					.
			(d)Effective
			 dateThe amendments made by this section shall apply carbon
			 dioxide captured after the date of the enactment of this Act.
			7.Clean energy coal
			 bonds
			(a)In
			 generalSubpart I of part IV
			 of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to
			 qualified tax credit bonds) is amended by adding at the end the following new
			 section:

					54C.Clean energy
				coal bonds
						(a)Clean energy
				coal bondFor purposes of this subchapter—
							(1)In
				generalThe term clean energy coal bond means any
				bond issued as part of an issue if—
								(A)the bond is
				issued by a qualified issuer pursuant to an allocation by the Secretary to such
				issuer of a portion of the national clean energy coal bond limitation under
				subsection (b)(2);
								(B)100 percent of
				the available project proceeds from the sale of such issue are to be used for
				capital expenditures incurred by qualified borrowers for 1 or more qualified
				projects;
								(C)the qualified
				issuer designates such bond for purposes of this section and the bond is in
				registered form; and
								(D)in lieu of the
				requirements of section 54A(d)(2), the issue meets the requirements of
				subsection (c).
								(2)Qualified
				project; special use rules
								(A)In
				generalThe term qualified project means a qualified
				clean coal project (as defined in subsection (f)(1)) placed in service by a
				qualified borrower.
								(B)Refinancing
				rulesFor purposes of paragraph (1)(B), a qualified project may
				be refinanced with proceeds of a clean energy coal bond only if the
				indebtedness being refinanced (including any obligation directly or indirectly
				refinanced by such indebtedness) was originally incurred by a qualified
				borrower after the date of the enactment of this section.
								(C)ReimbursementFor
				purposes of paragraph (1)(B), a clean energy coal bond may be issued to
				reimburse a qualified borrower for amounts paid after the date of the enactment
				of this section with respect to a qualified project, but only if—
									(i)prior to the
				payment of the original expenditure, the qualified borrower declared its intent
				to reimburse such expenditure with the proceeds of a clean energy coal
				bond;
									(ii)not later than
				60 days after payment of the original expenditure, the qualified issuer adopts
				an official intent to reimburse the original expenditure with such proceeds;
				and
									(iii)reimbursement
				is not made later than 18 months after the date the original expenditure is
				paid or the date the project is placed in service or abandoned, but in no event
				more than 3 years after the original expenditure is paid.
									(D)Treatment of
				changes in useFor purposes of paragraph (1)(B), the proceeds of
				an issue shall not be treated as used for a qualified project to the extent
				that a qualified borrower takes any action within its control which causes such
				proceeds not to be used for a qualified project. The Secretary shall prescribe
				regulations specifying remedial actions that may be taken (including conditions
				to taking such remedial actions) to prevent an action described in the
				preceding sentence from causing a bond to fail to be a clean energy coal
				bond.
								(b)Limitation on
				amount of bonds designated
							(1)National
				limitationThere is a national clean energy coal bond limitation
				of $5,000,000,000.
							(2)Allocation by
				SecretaryThe Secretary shall allocate the amount described in
				paragraph (1) among qualified projects in such manner as the Secretary
				determines appropriate.
							(c)Special rules
				relating to expenditures
							(1)In
				generalAn issue shall be treated as meeting the requirements of
				this subsection if, as of the date of issuance, the qualified issuer reasonably
				expects—
								(A)100 percent or
				more of the available project proceeds from the sale of the issue are to be
				spent for 1 or more qualified projects within the 5-year period beginning on
				the date of issuance of the clean energy bond;
								(B)a binding
				commitment with a third party to spend at least 10 percent of such available
				project proceeds from the sale of the issue will be incurred within the 6-month
				period beginning on the date of issuance of the clean energy bond or, in the
				case of a clean energy bond the available project proceeds of which are to be
				loaned to 2 or more qualified borrowers, such binding commitment will be
				incurred within the 6-month period beginning on the date of the loan of such
				proceeds to a qualified borrower; and
								(C)such projects
				will be completed with due diligence and the available project proceeds from
				the sale of the issue will be spent with due diligence.
								(2)Extension of
				periodUpon submission of a request prior to the expiration of
				the period described in paragraph (1)(A), the Secretary may extend such period
				if the qualified issuer establishes that the failure to satisfy the 5-year
				requirement is due to reasonable cause and the related projects will continue
				to proceed with due diligence.
							(3)Failure to
				spend required amount of bond proceeds within 5 yearsTo the
				extent that less than 100 percent of the available project proceeds of such
				issue are expended by the close of the 5-year period beginning on the date of
				issuance (or if an extension has been obtained under paragraph (2), by the
				close of the extended period), the qualified issuer shall redeem all of the
				nonqualified bonds within 90 days after the end of such period. For purposes of
				this paragraph, the amount of the nonqualified bonds required to be redeemed
				shall be determined in the same manner as under section 142.
							(d)Cooperative
				electric company; qualified energy tax credit bond lender; governmental body;
				qualified borrowerFor purposes of this section—
							(1)Cooperative
				electric companyThe term cooperative electric
				company means a mutual or cooperative electric company described in
				section 501(c)(12) or section 1381(a)(2)(C), or a not-for-profit electric
				utility which has received a loan or loan guarantee under the Rural
				Electrification Act.
							(2)Clean energy
				bond lenderThe term clean energy bond lender means
				a lender which is a cooperative which is owned by, or has outstanding loans to,
				100 or more cooperative electric companies and is in existence on February 1,
				2002, and shall include any affiliated entity which is controlled by such
				lender.
							(3)Public power
				entityThe term public power entity means a State
				utility with a service obligation, as such terms are defined in section 217 of
				the Federal Power Act (as in effect on the date of enactment of this
				paragraph).
							(4)Qualified
				issuerThe term qualified issuer means—
								(A)a clean energy
				bond lender;
								(B)a cooperative
				electric company; or
								(C)a public power
				entity.
								(5)Qualified
				borrowerThe term qualified borrower means—
								(A)a mutual or
				cooperative electric company described in section 501(c)(12) or 1381(a)(2)(C);
				or
								(B)a public power
				entity.
								(e)Special rules
				relating to pool bondsNo portion of a pooled financing bond may
				be allocable to any loan unless the borrower has entered into a written loan
				commitment for such portion prior to the issue date of such issue.
						(f)Other
				definitions and special rulesFor purposes of this
				section—
							(1)Qualified clean
				coal projectFor purposes of this section, the term
				qualified clean coal project means—
								(A)an atmospheric
				pollution control facility (within the meaning of section 169(d)(6));
								(B)a closed-loop
				biomass facility (within the meaning of section 45(d)(2));
								(C)a qualified new
				clean coal electric generation unit (within the meaning of section
				48C(d)(1));
								(D)qualifying carbon
				dioxide equipment described in section 48D(c)(1); or
								(E)a qualified
				facility (within the meaning of section 45Q(c)).
								(2)Pooled
				financing bondThe term pooled financing bond shall
				have the meaning given such term by section 149(f)(4)(A).
							(g)TerminationThis
				section shall not apply with respect to any bond issued after December 31,
				2018.
						.
			(b)Conforming
			 amendments
				(1)Paragraph (1) of
			 section 54A(d) of the Internal Revenue Code of 1986 is amended to read as
			 follows:

						(1)Qualified tax
				credit bondThe term qualified tax credit bond
				means—
							(A)a qualified
				forestry conservation bond, or
							(B)a clean energy
				coal bond,
							which is
				part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and
				(6)..
				(2)Subparagraph (C)
			 of section 54A(d)(2) of such Code is amended to read as follows:

						(C)Qualified
				purposeFor purposes of this paragraph, the term qualified
				purpose means—
							(i)in
				the case of a qualified forestry conservation bond, a purpose specified in
				section 54B(e), and
							(ii)in the case of a
				clean energy coal bond, a purpose specified in section
				54C(f)(1).
							.
				(c)Clerical
			 amendmentThe table of sections for subpart I of part IV of
			 subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by
			 adding at the end the following new item:

						Sec. 54C. Clean energy coal
				bonds.

					.
			(d)Effective
			 dateThe amendments made by this section shall apply to bonds
			 issued after December 31, 2008.
			8.Certain income
			 and gains relating to industrial source carbon dioxide treated as qualifying
			 income for publicly traded partnerships
			(a)In
			 generalSubparagraph (E) of section 7704(d)(1) of the Internal
			 Revenue Code of 1986 (defining qualifying income) is amended—
				(1)by striking
			 or the marketing and inserting the marketing,
			 and
				(2)by inserting
			 or industrial source carbon dioxide after
			 timber).
				(b)Effective
			 dateThe amendments made by this section shall take effect on the
			 date of the enactment of this Act, in taxable years ending after such
			 date.


116 S1630 IS: Shareholder Protection Act of 2019
U.S. Senate
2019-05-23
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II116th CONGRESS1st SessionS. 1630IN THE SENATE OF THE UNITED STATESMay 23 (legislative day, May 22), 2019Mr. Menendez introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsA BILLTo amend the Securities Exchange Act of 1934 to require shareholder authorization before a public
			 company may make certain political expenditures, and for other purposes.

 1.Short titleThis Act may be cited as the Shareholder Protection Act of 2019.
 2.FindingsCongress finds that— (1)corporations make significant political contributions and expenditures that directly or indirectly influence the election of candidates and support or oppose political causes;
 (2)decisions to use corporate funds for political contributions and expenditures are usually made by corporate boards and executives, rather than shareholders;
 (3)corporations, acting through boards and executives, are obligated to conduct business for the best interests of their owners, the shareholders;
 (4)historically, shareholders have not had a way to know, or to influence, the political activities of the corporations they own;
 (5)shareholders and the public have a right to know how corporate managers are spending company funds to make political contributions and expenditures benefitting candidates, political parties, and political causes;
 (6)corporations should be accountable to shareholders in making political contributions or expenditures affecting Federal governance and public policy; and
 (7)requiring a corporation to obtain the express approval of shareholders before making political contributions or expenditures will establish necessary accountability.
			3.Shareholder
			 approval of corporate political activity
 (a)In generalThe Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after section 14B (15 U.S.C. 78n–2) the following:

					14C.Shareholder
				approval of certain political expenditures and disclosure of votes
			 of
				institutional investors
 (a)DefinitionsIn this section— (1)the term expenditure for political activities—
 (A)means— (i)an independent expenditure (as defined in section 301(17) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101(17)));
 (ii)an electioneering communication (as defined in section 304(f)(3) of that Act (52 U.S.C. 30104(f)(3))) and any other public communication (as defined in section 301(22) of that Act (52 U.S.C. 30101(22))) that would be an electioneering communication if it were a broadcast, cable, or satellite communication; or
 (iii)dues or other payments to trade associations or organizations described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of that Code that are, or could reasonably be anticipated to be, used or transferred to another association or organization for the purposes described in clauses (i) or (ii); and
 (B)does not include—
 (i)direct lobbying efforts through registered lobbyists employed or hired by the issuer;
 (ii)communications by an issuer to its shareholders and executive or administrative personnel and their families; or
 (iii)the establishment, administration, and solicitation of contributions to a separate segregated fund to be utilized for political purposes by a corporation; and
 (2)the term issuer does not include an investment company that is registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a–8).
							(b)Shareholder
 authorization for political expendituresEach solicitation of proxy, consent, or authorization by an issuer with a class of equity securities registered under section 12 shall—
 (1)contain— (A)a description of the specific nature of any expenditure for political activities proposed to be made by the issuer for the forthcoming fiscal year that has not been authorized by a vote of the shareholders of the issuer, to the extent the specific nature is known to the issuer; and
 (B)the total amount of expenditures for political activities proposed to be made by the issuer for the forthcoming fiscal year; and
 (2)provide for a separate vote of the shareholders of the issuer to authorize such expenditures for political activities in the total amount described in paragraph (1).
							(c)Vote required To
 make expendituresNo issuer may make an expenditure for political activities in any fiscal year unless that expenditure—
 (1)is of the nature of those proposed by the issuer in subsection (b)(1); and
 (2)has been authorized by a vote of the majority of the outstanding shares of the issuer in accordance with subsection (b)(2).
							(d)Fiduciary duty;
				liability
							(1)Fiduciary
 dutyA violation of subsection (c) by an issuer shall be considered to be a breach of a fiduciary duty of any officer or director of the issuer who authorized the expenditure for political activities described in that subsection.
 (2)LiabilityAn officer or director of an issuer who authorizes an expenditure for political activities in violation of subsection (c) shall be jointly and severally liable in—
 (A)any action brought in a court of competent jurisdiction to any person or class of persons that held shares at the time the expenditure for political activities was made; and
 (B)an amount that is equal to 3 times the amount of the expenditure for political activities.
								(e)Disclosure of
				votes
							(1)Disclosure
 requiredEach institutional investment manager that is subject to section 13(f) shall disclose not less frequently than annually how the institutional investment manager voted on any shareholder vote under subsection (a), unless the vote is otherwise required by rule of the Commission to be reported publicly.
 (2)RulesNot later than 180 days after the date of enactment of this section, the Commission shall issue rules to carry out this subsection that require that a disclosure required under paragraph (1)—
 (A)be made not later than 30 days after the date on which a vote described in that paragraph is held; and
 (B)be made available to the public through the EDGAR system as soon as practicable.
								(f)Safe harbor for
 certain divestment decisionsNotwithstanding any other provision of Federal or State law, if an institutional investment manager makes the disclosures required under subsection (e), no person may bring any civil, criminal, or administrative action against the institutional investment manager, or any employee, officer, or director of the institutional investment manager, based solely upon a decision of the investment manager to divest from, or not to invest in, securities of an issuer due to an expenditure for political activities made by the issuer..
 (b)Technical and conforming amendmentSection 3(a)(8) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(8)) is amended by striking The term and inserting Except as otherwise expressly provided, the term. 4.Required board vote on corporate expenditures for political activitiesThe Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by adding after section 16 (15 U.S.C. 78p) the following:

				16A.Required board
				vote on corporate expenditures for political activities
 (a)DefinitionsIn this section—
 (1)the term election has the meaning given the term in section 301 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101); and
 (2)the terms expenditure for political activities and issuer have the meanings given the terms in section 14C.
						(b)Listing on
 exchangesNot later than 180 days after the date of enactment of this section, the Commission shall, by rule, direct the national securities exchanges and national securities associations to prohibit the listing of any class of equity security of an issuer that is not in compliance with the requirements of any portion of subsection (c).
					(c)Requirement for
				vote in corporate bylaws
						(1)Vote
 requiredThe bylaws of an issuer shall expressly provide for a vote of the board of directors of the issuer on any expenditure for political activities—
 (A)in an amount that is more than $50,000; and
 (B)that would result in the total amount spent by the issuer for a particular election to be more than $50,000.
							(2)Public
 availabilityAn issuer shall make the votes of each member of the board of directors of the issuer for a vote required under paragraph (1) publicly available not later than 48 hours after the vote, including in a clear and conspicuous location on the internet web site of the issuer.
						(d)No Effect on
 Determination of Coordination With Candidates or CampaignsFor purposes of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101 et seq.), an expenditure for political activities by an issuer shall not be treated as made in concert or cooperation with, or at the request or suggestion of, any candidate or committee solely because a member of the board of directors of the issuer voted on the expenditure as required under this section..
		5.Reporting
 requirementsSection 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) is amended by adding at the end the following:

				(s)Reporting
				requirements relating to certain political expenditures
 (1)DefinitionsIn this subsection, the terms expenditure for political activities and issuer have the meanings given the terms in section 14C.
					(2)Quarterly
				reports
						(A)Reports
 requiredNot later than 180 days after the date of enactment of this subsection, the Commission shall amend the reporting rules under this section to require each issuer with a class of equity securities registered under section 12 to submit to the Commission and the shareholders of the issuer a quarterly report containing—
 (i)a description of any expenditure for political activities made during the preceding quarter;
 (ii)the date of each expenditure for political activities;
 (iii)the amount of each expenditure for political activities;
 (iv)the votes of each member of the board of directors of the issuer authorizing the expenditure for political activity, as required under section 16A(c);
 (v)if the expenditure for political activities was made in support of or in opposition to a candidate, the name of the candidate and the office sought by, and the political party affiliation of, the candidate; and
 (vi)the name or identity of trade associations or organizations described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code that receive dues or other payments as described in section 14C(a)(1)(A)(iii).
 (B)Public availabilityThe Commission shall ensure that, to the greatest extent practicable, the quarterly reports required under this paragraph are publicly available through the internet website of the Commission and through the EDGAR system in a manner that is searchable, sortable, and downloadable, consistent with the requirements under section 24.
						(3)Annual
 reportsNot later than 180 days after the date of enactment of this subsection, the Commission shall, by rule, require each issuer to include in the annual report of the issuer to shareholders a summary of each expenditure for political activities made during the preceding year in excess of $10,000, and each expenditure for political activities for a particular election if the total amount of such expenditures for that election is in excess of $10,000..
		6.Reports
			(a)Securities and
 Exchange CommissionThe Securities and Exchange Commission shall—
 (1)conduct an annual assessment of the compliance of issuers and officers and members of the boards of directors of issuers with sections 13(s), 14C, and 16A of the Securities Exchange Act of 1934, as added by this Act; and
 (2)submit to Congress an annual report containing the results of the assessment under paragraph (1). (b)Government Accountability OfficeThe Comptroller General of the United States shall periodically evaluate and report to Congress on the effectiveness of the oversight by the Securities and Exchange Commission of the reporting and disclosure requirements under sections 13(s), 14C, and 16A of the Securities Exchange Act of 1934, as added by this Act.
 7.SeverabilityIf any provision of this Act, an amendment made by this Act, or the application of such provision or amendment to any person or circumstance is held to be unconstitutional, the remainder of this Act, the amendments made by this Act, and the application of such provision or amendment to any person or circumstance shall not be affected thereby.