Right TRACK Act (BILL TEXT)

109th CONGRESS
2d Session

S. 2357

To provide for economic security and prosperity.

IN THE SENATE OF THE UNITED STATES

March 2, 2006

Mr. KENNEDY introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To provide for economic security and prosperity.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Right Time to Reinvest in America's Competitiveness and Knowledge Act' or the `Right TRACK Act'.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I--INVESTING IN THE ECONOMY OF THE FUTURE AND CREATING HIGH QUALITY JOBS

Subtitle A--Supporting Innovation for the Economy of the Future

Chapter 1--Presidential Research and Development Commission

Sec. 1111. Research and Development Advisory Committee.

Chapter 2--Interagency Working Group

Sec. 1121. Accelerating and broadening participation in biomedical, science, engineering, and technology research in the United States.

Chapter 3--Research And Development Tax Credit Extension

Sec. 1131. Findings.

Sec. 1132. Permanent extension of research credit.

Sec. 1133. Increase in rates of alternative incremental credit.

Sec. 1134. Alternative simplified credit for qualified research expenses.

Sec. 1135. Expansion of research credit.

Chapter 4--Increasing Research and Development

Sec. 1141. Authorization of appropriations for the Department of Defense.

Sec. 1142. Authorization of appropriations for the National Science Foundation for research and related activities.

Sec. 1143. Authorization of appropriations for the National Aeronautics and Space Administration for research and development activities.

Sec. 1144. Authorization of appropriations for the Department of Energy for basic research.

Sec. 1145. Authorization of appropriations for National Institutes of Health for research and development.

Subtitle B--Building the Economy of the Future

Chapter 1--Nanotechnology

Sec. 1211. Tax credit for investment in nanotechnology firms.

Sec. 1212. Nanotechnology assistance.

Chapter 2--Investing in High-Tech Manufacturing

Sec. 1221. Manufacturing Extension Partnership Program.

Sec. 1222. Advanced Technology Program.

Chapter 3--Domestic Vaccines

Sec. 1231. Incentives for the construction of domestic vaccine manufacturing facilities.

Chapter 4--Programs and Tax Credits To Increase Energy Efficiency

Sec. 1241. Grant program for green building and zero-energy home design and construction training.

Sec. 1242. Extension of certain tax credits for solar energy.

Sec. 1243. Tax credit for purchasing green power.

Chapter 5--Renewable Portfolio Standard

Sec. 1251. Renewable portfolio standard.

Chapter 6--Improving the Efficiency of Health Care To Enhance America's Economic Competitiveness

SUBCHAPTER A--IMPROVING INFORMATION PROVIDED TO PATIENTS

Sec. 1261. Requirement for health insurers to implement computerized claims processing systems.

Sec. 1262. Making health care more responsive to the consumer.

Sec. 1263. Regulations.

SUBCHAPTER B--APPLICATION TO PUBLIC HEALTH SERVICE ACT AND EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974

Sec. 1271. Application to group health plans and group health insurance coverage under the Public Health Service Act.

Sec. 1272. Application to individual health insurance coverage under the Public Health Service Act.

Sec. 1273. Application to group health plans and group health insurance coverage under the Employee Retirement Income Security Act of 1974.

SUBCHAPTER C--MISCELLANEOUS PROVISIONS

Sec. 1281. Definitions.

Sec. 1282. Effect on State law.

Subtitle C--Supporting the Infrastructure Our Economy Needs

Chapter 1--Creating a National Broadband Policy

Sec. 1311. National broadband policy.

Chapter 2--Amtrak Reauthorization

Sec. 1321. Authorization for Amtrak operating grants.

Sec. 1322. Authorization for Amtrak capital grants.

Sec. 1323. Authorization for repayment of long-term debt and capital leases.

Chapter 3--Investing in School Infrastructure

Sec. 1331. Short title.

Sec. 1332. Expansion of incentives for public schools.

Sec. 1333. Indian school construction.

Sec. 1334. Application of certain labor standards on construction projects financed under public school modernization program.

Sec. 1335. Training services relating to construction or reconstruction of public school facilities.

TITLE II--EDUCATE AMERICANS TO FILL THE JOBS OF THE FUTURE

Sec. 2001. Short title.

Sec. 2002. Findings.

Subtitle A--Modernizing America's Education System

Chapter 1--Prekindergarten Through Grade 16 Education

Sec. 2111. Purposes.

Sec. 2112. Definitions.

Sec. 2113. Aligning State standards with national benchmarks.

Sec. 2114. National Assessment of Educational Progress changes.

Sec. 2115. Prekindergarten through grade 16 student preparedness council grants.

Sec. 2116. Collaborative standards grants.

Chapter 2--Investing in Teachers

Sec. 2121. Purpose.

Sec. 2122. Definition of engineering and technology education.

Sec. 2123. Expanding teacher loan forgiveness.

Sec. 2124. Exclusion from gross income of compensation of teachers and principals in certain high-need schools and teaching high-need subjects.

Sec. 2125. Mathematics and science education partnerships and teacher institutes for the 21st century through the National Science Foundation.

Sec. 2126. TEACH grants; recruiting teachers with mathematics, science, engineering, technology, or language majors.

Chapter 3--Ensuring College Access for All

Sec. 2131. Contract for educational opportunity (CEO) grants.

Subtitle B--Arming Americans With 21st Century Knowledge and Skills

Chapter 1--Increasing the Number of New American Scientists, Engineers, and Language Experts

Sec. 2211. Purpose.

Sec. 2212. Grants for strengthening mathematics, science, and engineering and technology education infrastructure.

Sec. 2213. Science, technology, engineering, mathematics, and critical-need foreign language scholars.

Sec. 2214. Expansion of National Science Foundation Education and Human Resources Directorate.

Chapter 2--Improving Global Knowledge and Skills

Sec. 2221. Definitions.

Sec. 2222. Critical-need languages.

Sec. 2223. Critical-need language program grants.

Sec. 2224. International summer institute grants.

Sec. 2225. International and foreign language studies.

Chapter 3--Investing in Workers Through Job Training

Sec. 2231. Projects to provide literacy, technology, and technical skills training.

TITLE III--KEEPING GOOD JOBS IN THE UNITED STATES

Subtitle A--Right To Know When Jobs Are Shipped Overseas

Sec. 3101. Amendments to the Worker Adjustment and Retraining Notification Act.

Subtitle B--Removing Tax Incentives for Companies To Ship Jobs Overseas

Sec. 3201. Taxation of income of controlled foreign corporations attributable to imported property.

Subtitle C--Requiring Government Contractors To Use American Workers for Taxpayer-Funded Work

Sec. 3301. Short title.

Sec. 3302. Limitations on off-shore performance of contracts for the procurement of goods and services.

TITLE IV--LEVELING THE PLAYING FIELD FOR WORKERS HERE AND ABROAD

Subtitle A--Raise Living Standards Worldwide

Sec. 4101. Limitation on trade authorities procedures.

Subtitle B--Prevention of Currency Manipulation

Sec. 4201. International negotiations on exchange rate and economic policies.

Subtitle C--Encouraging Multilateral Corporations To Adopt Labor Practices

Sec. 4301. Short title.

Sec. 4302. Findings.

Sec. 4303. Definitions.

Sec. 4304. Establishment.

Sec. 4305. Conferring of awards and certificates.

Sec. 4306. Procedure and administration.

Sec. 4307. Criteria for eligibility.

Sec. 4308. Reporting requirements.

TITLE V--HELPING WORKERS AND COMMUNITIES HARMED BY TRADE

Subtitle A--Wage Insurance Program and Improvement of Credit for Health Insurance Costs for Eligible Individuals

Sec. 5101. Wage insurance for qualifying displaced workers upon reemployment.

Sec. 5102. Improvement of the affordability of the credit for health insurance costs.

Sec. 5103. 100 percent credit and payment for monthly premiums paid prior to certification of eligibility for the credit.

Sec. 5104. Eligibility for certain pension plan recipients; presumptive eligibility.

Sec. 5105. Clarification of 3-month creditable coverage requirement.

Sec. 5106. TAA pre-certification period rule for purposes of determining whether there is a 63-day lapse in creditable coverage.

Sec. 5107. Continued qualification of family members after certain events.

Sec. 5108. Offering of national fallback coverage.

Sec. 5109. Additional requirements for individual health insurance costs.

Sec. 5110. Alignment of COBRA coverage with TAA period for TAA-eligible individuals.

Sec. 5111. Notice requirements.

Sec. 5112. Annual report on enhanced TAA benefits.

Sec. 5113. Extension of national emergency grants.

Subtitle B--Modernization of Trade Adjustment Assistance

Chapter 1--Service Workers and Firms

Sec. 5211. Short title.

Sec. 5212. Extension of trade adjustment assistance to services sector.

Sec. 5213. Trade adjustment assistance for firms and industries.

Sec. 5214. Monitoring and reporting.

Sec. 5215. Effective date.

Chapter 2--Expanding Trade Adjustment Assistance To Cover All Countries

Sec. 5221. Short title.

Sec. 5222. Shifts in production.

Chapter 3--Expanding Trade Adjustment Assistance To Cover Communities

Sec. 5231. Purpose.

Sec. 5232. Trade adjustment assistance for communities.

Sec. 5233. Termination.

Sec. 5234. Conforming amendments.

Chapter 4--Agreements With States

Sec. 5241. Agreements with States.

TITLE VI--MODERNIZATION OF LABOR AND EMPLOYMENT LAWS

Subtitle A--Protecting Workers' Right To Organize

Sec. 6101. Short title.

Sec. 6102. Streamlining union certification.

Sec. 6103. Facilitating initial collective bargaining agreements.

Sec. 6104. Strengthening enforcement.

Subtitle B--Raising the Federal Minimum Wage

Sec. 6201. Short title.

Sec. 6202. Minimum wage.

Sec. 6203. Applicability of minimum wage to the Commonwealth of the Northern Mariana Islands.

Subtitle C--Modernization of Unemployment Insurance

Chapter 1--Improvements in Regular Unemployment Compensation

Sec. 6311. Part-time and low-wage workers.

Sec. 6312. No reduction in unemployment compensation as a result of pension rollovers.

Chapter 2--Improvements to the Federal-State Extended Unemployment Compensation Program

Sec. 6321. Lowering of extended benefit `on' indicator.

Sec. 6322. Revision of definition of rate of insured unemployment.

Sec. 6323. Repeal of certain State law extended benefit requirements.

Chapter 3--Effective Date

Sec. 6331. Effective date.

TITLE I--INVESTING IN THE ECONOMY OF THE FUTURE AND CREATING HIGH QUALITY JOBS

Subtitle A--Supporting Innovation for the Economy of the Future

CHAPTER 1--PRESIDENTIAL RESEARCH AND DEVELOPMENT COMMISSION

SEC. 1111. RESEARCH AND DEVELOPMENT ADVISORY COMMITTEE.

(a) In General- There is established an advisory committee to be known as the `Presidential Research and Development Advisory Committee' (referred to in this section as the `Advisory Committee') to advise the President with respect to competitive trends in global technology and industry and in allocating Federal resources in education and technology development.

(b) Membership-

(1) IN GENERAL- The Committee shall be composed of 25 members to be appointed by the President from among the individuals nominated under paragraph (2) and the ex officio members described in paragraph (3).

(2) NOMINATIONS- Not later than 30 days after the date of enactment of this Act, the National Academies of Science shall submit to the President a list of 50 individuals nominated by the National Academies for service as members of the Advisory Committee. Such list shall include individuals who have expertise in industry, science, technology, education, and economics, including--

(A) representatives from vaccine production, high tech manufacturing, computer science, engineering, the energy sector, university technology transfer offices, investors and chief executive officers, biotechnology firms, trade associations, academic researchers, and economists;

(B) representatives from consumer organizations; and

(3) EX OFFICIO MEMBERS- The following shall be ex officio members of the Advisory Committee:

(A) The Secretary of Health and Human Services.

(B) The Secretary of Defense.

(D) The Director of the National Vaccine Program.

(E) The Director of the National Institutes of Health.

(F) The Director of the Centers for Disease Control and Prevention.

(G) The Secretary of Energy.

(H) The Administrator of the National Aeronautics and Space Administration.

(I) The Secretary of Homeland Security.

(J) The Secretary of Commerce.

(4) CHAIRPERSON- The members of the Advisory Committee appointed under paragraph (1) shall select a Chairperson from among such members.

(c) Meetings- The Advisory Committee shall meet on a biannual basis at the call of the Chairperson, except that the initial meeting of the Advisory Committee shall occur not later than 6 months after the date of enactment of this Act.

(d) Duties of the Advisory Committee- The Advisory Committee shall--

(1) provide advice to the President with respect to competitive trends in the global technology;

(2) provide advice to the President in the allocation of Federal resources in education, job training, and technology development; and

(3) not later than 2 years after the date of enactment of this Act, and annually thereafter, submit to the President and Congress a report containing the recommendations of the Advisory Committee on strategies to keep the United States a world leader in research and development and technological innovation, and the current status of the United States in such areas.

(e) Administrative Provisions-

(1) COMPENSATION-

(A) IN GENERAL-

(i) EMPLOYEES OF FEDERAL GOVERNMENT- Each ex officio or other member of the Advisory Committee that is an officer or employee of the Federal Government shall serve on the Advisory Committee without compensation in addition to that received in their regular public employment.

(ii) OTHER MEMBERS- Each member of the Advisory Committee that is not an officer or employee of the Federal Government shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which such member is engaged in the performance of the duties of the Advisory Committee.

(B) TRAVEL EXPENSES- A member of the Advisory Committee shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for an employee of an agency under subchapter I of chapter 57 of title 5, United States Code, while away from the home or regular place of business of the member in the performance of the duties of the Advisory Committee.

(2) STAFF-

(A) IN GENERAL- The Director shall provide the Advisory Committee with such professional and clerical staff, such information, and the services of such consultants as may be necessary to assist the Advisory Committee in carrying out the functions under this section.

(B) DETAIL OF FEDERAL GOVERNMENT EMPLOYEES-

(i) IN GENERAL- An employee of the Federal Government may be detailed to the Advisory Committee without reimbursement.

(ii) CIVIL SERVICE STATUS- The detail of the employee shall be without interruption or loss of civil service status or privilege.

(C) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES- The Chairperson of the Advisory Committee may procure temporary and intermittent services in accordance with section 3109(b) of title 5, United States Code, at rates for individuals that do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of that title.

(3) AVAILABILITY OF RECORD TO CONGRESS- Upon the request of a Member of Congress, the Chairperson of the Advisory Committee shall submit to Congress a record of the proceedings of the Advisory Committee.

CHAPTER 2--INTERAGENCY WORKING GROUP

SEC. 1121. ACCELERATING AND BROADENING PARTICIPATION IN BIOMEDICAL, SCIENCE, ENGINEERING, AND TECHNOLOGY RESEARCH IN THE UNITED STATES.

(a) Joint Working Group-

(1) ESTABLISHMENT- The Director of the National Science Foundation (referred to in this section as the `Director') shall establish a joint working group for the purpose of developing collaborative research with respect to physical and life sciences.

(2) REPRESENTATION- The joint working group established under paragraph (1) shall be comprised of the Director and representatives from the Office of Science of the Department of Energy, the Office of Research and Engineering of the Department of Defense, the National Oceanic and Atmospheric Administration, the Environmental Protection Agency, the National Aeronautics and Space Administration, and any other Federal agencies determined appropriate by the Director.

(3) DUTIES- The joint working group established under paragraph (1) shall--

(A) develop and recommend a permanent mechanism, and establish temporary or permanent programs as appropriate, to fund collaborative research and development relating to the physical and life sciences;

(B) establish temporary or permanent bi-agency and multi-agency programs as appropriate, to fund collaborative research and development relating to physical and life sciences and the development of research tools for physical and life science applications;

(C) develop and recommend a permanent mechanism, and establish temporary or permanent multi-agency programs, to fund science, engineering, and technology research with broad impacts and particular relevance for public health, environmental health, sustainability, and other global issues of the future;

(D) establish multi-agency and multi-disciplinary peer review processes, as appropriate, based on both intellectual merit and broader impacts; and

(E) not later than 2 years after the establishment of the group, and every 2 years thereafter, submit to Congress a report describing the activities of the group for the period for which the report is submitted, including evaluations of efforts to broaden participation in science, engineering, and technology research by underrepresented groups.

(4) TERMINATION- The joint working group established under paragraph (1) shall terminate on the date that is 5 years after the date on which the group is established under such paragraph.

(b) Increased Funding-

(1) RESEARCH AND DEVELOPMENT- The heads of the agencies represented on the join working group under subsection (a), shall--

(A) enhance and improve activities for, and establish additional grant programs to support, research and development in multi-disciplinary areas including biodefense, pharmacoepidemiology, pharmacoeconomics, and high tech fields, as necessary; and

(B) give special consideration to grant proposals from researchers and research institutions with demonstrated records of broadening participation of underrepresented groups in science, engineering, and technology.

(2) EDUCATION AND TRAINING- The heads of the agencies represented on the joint working group under subsection (a) shall--

(A) enhance and improve activities for, and establish additional grant programs to support, the education, mentoring, and ongoing training of undergraduate, graduate, early-career, and mid-career researchers in multi-disciplinary areas of research, including biodefense, pharmacoepidemiology, pharmacoeconomics, and high tech fields; and

(B) establish additional grant programs to support the outreach to and recruitment of pre-college students from underserved or disadvantaged communities by researchers at all stages of their careers who are affiliated with degree-granting institutions.

(3) BROADENING PARTICIPATION- The heads of the agencies represented in the joint working group under subsection (a) shall ensure that the activities authorized under paragraphs (1) and (2) promote full and equal development and use of the talents of men and women of all ethnic, racial, and economic backgrounds, including individuals with disabilities, in advancing the United States' competitiveness in the global economy.

CHAPTER 3--RESEARCH AND DEVELOPMENT TAX CREDIT EXTENSION

SEC. 1131. FINDINGS.

Congress finds the following:

(1) Research and development performed in the United States results in quality jobs, better and safer products, increased ownership of technology-based intellectual property, and higher productivity in the United States.

(2) Since 1994, private sector research and development employment has grown at a faster rate than overall private sector employment in the United States. From 1994 to 2000, there was an average annual growth rate of 5.4 percent in research and development employment, compared with 2.7 percent in total employment.

(3) The extent to which companies perform and increase research and development activities in the United States is in part dependent on Federal tax policy.

(4) The private sector performed most of the Nation's research and development and accounted for more than two-thirds of total research and development performance in 2003. Of the $194,000,000,000 in industrial research and development performed in 2003, more than 90 percent was funded by industry.

(5) Many of the countries with which the United States competes have introduced new or revised national plans for science, technology, and innovation policy, and a growing number of countries have established targets for increased research and development spending. Virtually all countries are seeking ways to enhance the quality and efficiency of public research, stimulate business investments in research and development, and strengthen linkages between the public and private sectors.

(6) Direct government support to business research and development has declined, both in absolute terms and as a share of business research and development, and greater emphasis is being placed on indirect measures, such as tax incentives for research and development.

(7) Congress should make permanent a research and development credit that provides a meaningful incentive to all types of taxpayers.

SEC. 1132. PERMANENT EXTENSION OF RESEARCH CREDIT.

(a) In General- Section 41 of the Internal Revenue Code of 1986 (relating to credit for increasing research activities) is amended by striking subsection (h).

(b) Conforming Amendment- Paragraph (1) of section 45C(b) of such Code is amended by striking subparagraph (D).

(c) Effective Date- The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act, in taxable years ending after such date.

SEC. 1133. INCREASE IN RATES OF ALTERNATIVE INCREMENTAL CREDIT.

(a) In General- Subparagraph (A) of section 41(c)(4) of the Internal Revenue Code of 1986 (relating to election of alternative incremental credit) is amended--

(1) by striking `2.65 percent' and inserting `3 percent',

(2) by striking `3.2 percent' and inserting `4 percent', and

(3) by striking `3.75 percent' and inserting `5 percent'.

(b) Effective Date- The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

SEC. 1134. ALTERNATIVE SIMPLIFIED CREDIT FOR QUALIFIED RESEARCH EXPENSES.

(a) In General- Subsection (c) of section 41 of the Internal Revenue Code of 1986 (relating to base amount) is amended by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively, and by inserting after paragraph (4) the following new paragraph:

`(5) ELECTION OF ALTERNATIVE SIMPLIFIED CREDIT-

`(A) IN GENERAL- At the election of the taxpayer, the credit determined under subsection (a)(1) shall be equal to 12 percent of so much of the qualified research expenses for the taxable year as exceeds 50 percent of the average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is being determined.

`(B) SPECIAL RULE IN CASE OF NO QUALIFIED RESEARCH EXPENSES IN ANY OF 3 PRECEDING TAXABLE YEARS-

`(i) TAXPAYERS TO WHICH SUBPARAGRAPH APPLIES- The credit under this paragraph shall be determined under this subparagraph if the taxpayer has no qualified research expenses in any 1 of the 3 taxable years preceding the taxable year for which the credit is being determined.

`(ii) CREDIT RATE- The credit determined under this subparagraph shall be equal to 6 percent of the qualified research expenses for the taxable year.

`(C) ELECTION- An election under this paragraph shall apply to the taxable year for which made and all succeeding taxable years unless revoked with the consent of the Secretary. An election under this paragraph may not be made for any taxable year to which an election under paragraph (4) applies.'.

(b) Coordination With Election of Alternative Incremental Credit-

(1) IN GENERAL- Section 41(c)(4)(B) of the Internal Revenue Code of 1986 (relating to election) is amended by adding at the end the following: `An election under this paragraph may not be made for any taxable year to which an election under paragraph (5) applies.'.

(2) TRANSITION RULE- In the case of an election under section 41(c)(4) of the Internal Revenue Code of 1986 which applies to the taxable year which includes the date of the enactment of this Act, such election shall be treated as revoked with the consent of the Secretary of the Treasury if the taxpayer makes an election under section 41(c)(5) of such Code (as added by subsection (a)) for such year.

(c) Effective Date- The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

SEC. 1135. EXPANSION OF RESEARCH CREDIT.

(a) Expansion of Credit to Expenses of General Collaborative Research Consortia- Section 41 of the Internal Revenue Code of 1986 (relating to credit for increased research activities) is amended--

(1) by striking `an energy research consortium' in subsections (a)(3) and (b)(3)(C)(i) and inserting `a research consortium',

(2) by striking `energy' each place it appears in subsection (f)(6)(A),

(3) by inserting `or 501(c)(6)' after `section 501(c)(3)' in subsection (f)(6)(A)(i)(I), and

(4) by striking `ENERGY RESEARCH' in the heading for subsection (f)(6)(A) and inserting `RESEARCH'.

(b) EFFECTIVE DATE- The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act, in taxable years ending after such date.

CHAPTER 4--INCREASING RESEARCH AND DEVELOPMENT

SEC. 1141. AUTHORIZATION OF APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE.

(a) BASIC RESEARCH- There is authorized to be appropriated for the Department of Defense for basic (6.1) research, for the research, development, test, and evaluation accounts of the Department, and for other accounts of the Department providing funding for such research, aggregate amounts as follows:

(1) $1,565,801,000 for fiscal year 2007.

(2) $1,722,381,000 for fiscal year 2008.

(3) $1,894,619,000 for fiscal year 2009.

(4) $2,084,080,000 for fiscal year 2010.

(5) $2,292,489,000 for fiscal year 2011.

(6) $2,521,737,000 for fiscal year 2012.

(7) $2,773,911,000 for fiscal year 2013.

(b) APPLIED RESEARCH- There is authorized to be appropriated for the Department of Defense for applied (6.2) research, for the research, development, test, and evaluation accounts of the Department, and for other accounts of the Department providing funding for such research, aggregate amounts as follows:

(1) $4,908,093,000 for fiscal year 2007.

(2) $5,398,903,000 for fiscal year 2008.

(3) $5,938,793,000 for fiscal year 2009.

(4) $6,532,672,000 for fiscal year 2010.

(5) $7,185,939,000 for fiscal year 2011.

(6) $7,904,533,000 for fiscal year 2012.

(7) $8,694,987,000 for fiscal year 2013.

SEC. 1142. AUTHORIZATION OF APPROPRIATIONS FOR THE NATIONAL SCIENCE FOUNDATION FOR RESEARCH AND RELATED ACTIVITIES.

There is authorized to be appropriated for the National Science Foundation for Research and Related Activities, amounts as follows:

(1) $4,826,250,000 for fiscal year 2007.

(2) $5,308,875,000 for fiscal year 2008.

(3) $5,839,763,000 for fiscal year 2009

(4) $6,423,739,000 for fiscal year 2010.

(5) $7,066,113,000 for fiscal year 2011.

(6) $7,772,724,000 for fiscal year 2012.

(7) $8,549,996,000 for fiscal year 2013.

SEC. 1143. AUTHORIZATION OF APPROPRIATIONS FOR THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION FOR RESEARCH AND DEVELOPMENT ACTIVITIES.

There is authorized to be appropriated for the National Aeronautics and Space Administration for research and development activities (including research and development activities for Space Flight Capabilities, research and development activities for Science, Aeronautics and Exploration, and other research and development activities), aggregate amounts as follows:

(1) $10,737,100,000 for fiscal year 2007.

(2) $11,810,810,000 for fiscal year 2008.

(3) $12,991,891,000 for fiscal year 2009.

(4) $14,291,080,000 for fiscal year 2010.

(5) $15,720,188,000 for fiscal year 2011.

(6) $17,292,207,000 for fiscal year 2012.

(7) $19,021,428,000 for fiscal year 2013.

SEC. 1144. AUTHORIZATION OF APPROPRIATIONS FOR THE DEPARTMENT OF ENERGY FOR BASIC RESEARCH.

There is authorized to be appropriated for the Department of Energy for the Office of Science for basic research, amounts as follows:

(1) $4,135,000,000 for fiscal year 2007.

(2) $4,548,500,000 for fiscal year 2008.

(3) $5,003,350,000 for fiscal year 2009

(4) $5,503,685,000 for fiscal year 2010.

(5) $6,054,054,000 for fiscal year 2011.

(6) $6,659,459,000 for fiscal year 2012.

(7) $7,325,405,000 for fiscal year 2013.

SEC. 1145. AUTHORIZATION OF APPROPRIATIONS FOR NATIONAL INSTITUTES OF HEALTH FOR RESEARCH AND DEVELOPMENT.

There is authorized to be appropriated to the National Institutes of Health for research and development, amounts as follows:

(1) $31,251,440,000 for fiscal year 2007.

(2) $34,376,584,000 for fiscal year 2008.

(3) $37,814,242,000 for fiscal year 2009.

(4) $41,595,667,000 for fiscal year 2010.

(5) $45,755,233,000 for fiscal year 2011.

(6) $50,330,757,000 for fiscal year 2012.

(7) $55,363,832,000 for fiscal year 2013.

Subtitle B--Building the Economy of the Future

CHAPTER 1--NANOTECHNOLOGY

SEC. 1211. TAX CREDIT FOR INVESTMENT IN NANOTECHNOLOGY FIRMS.

(a) In General- Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to credits against tax) is amended by adding at the end the following new subpart:

`Subpart G--Nanotechnology Development Credit

`SEC. 54A. CREDIT FOR PURCHASE OF NANOTECHNOLOGY DEVELOPER STOCK.

`(a) Allowance of Credit-

`(1) IN GENERAL- There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the aggregate amount paid by the taxpayer for the purchase of qualified nanotechnology developer stock.

`(2) APPLICABLE PERCENTAGE- For purposes of subsection (a), the applicable percentage is--

`(A) 5.25 percent for the taxable year in which the qualified nanotechnology developer stock is purchased,

`(B) 3.75 percent for the taxable year following the year in which such stock is purchased,

`(C) 3 percent for the second taxable year following the year in which such stock is purchased,

`(D) 1.5 percent for the third taxable year following the year in which such stock is purchased,

`(E) 1.5 percent for fourth taxable year following the year in which such stock is purchased, and

`(F) 0 percent for any taxable year after the fourth taxable year following the year in which such stock is purchased.

`(b) Limitations-

`(1) AMOUNT OF INVESTMENT ELIGIBLE- No credit shall be allowed under subsection (a) with respect to amounts paid in any taxable year for the purchase of qualified nanotechnology developer stock which is in excess of $10,000,000.

`(2) APPLICATION WITH OTHER CREDITS- The credit allowed under subsection (a) for any taxable year shall not exceed the excess of--

`(A) the regular tax for the taxable year reduced by the sum of the credits allowable under this part (other than subpart C thereof), over

`(B) the tentative minimum tax for the taxable year.

`(c) Qualified Nanotechnology Developer Stock- For purposes of this section--

`(1) IN GENERAL- The term `qualified nanotechnology developer stock' means any common stock in a C corporation or any membership unit in a State-registered limited liability company if--

`(A) as of the date of issuance of such stock or membership unit, such corporation or company is a qualified nanotechnology developer,

`(B) such stock is acquired by the taxpayer at its original issue (directly or through an underwriter) in exchange for money or other property (not including stock), and

`(C) the proceeds of such issue are used by such issuer during the 5-year period beginning on the date of issuance for the development, production, or sale of products using nanotechnology.

`(2) QUALIFIED NANOTECHNOLOGY DEVELOPER- The term `qualified nanotechnology developer' means any entity--

`(A) which is a C corporation or limited liability company organized under the laws of any State or of the United States,

`(B) which is a small business concern (as defined in section 3(a) of the Small Business Act), and

`(C) with respect to which a certification under subsection (d) is in effect.

`(3) NANOTECHNOLOGY- The term `nanotechnology' means the science of understanding and manipulating matter on an atomic or molecular scale, generally to create structures, and usually at a size smaller than 100 nanometers.

`(d) Certification-

`(1) IN GENERAL- The Secretary, in consultation with the National Nanotechnology Coordination Office, shall certify an entity under this subsection if such entity demonstrates by the submission of such information as required by the Secretary that not less than 51 percent of its activities relate to the development, production, and sale of products using nanotechnology.

`(2) REVOCATION- The Secretary shall revoke the certification of any entity which is certified under paragraph (1) if the Secretary determines that--

`(A) the proceeds from any qualified nanotechnology developer stock issued by such entity are used during the 5-year period following such issue for a purpose other than the development, production, or sale of products using nanotechnology, or

`(B) such entity no longer meets the requirements of paragraph (1).

`(3) SUBMISSION OF INFORMATION- The Secretary may require any entity certified under paragraph (1) to provide such information as the Secretary may require in order ensure compliance with the purposes of this section.

`(e) Carryover of Unused Credit-

`(1) IN GENERAL- If the credit amount allowable under subsection (a) for a taxable year exceeds the amount of the limitation under subsection (h) for such taxable year, such excess shall be allowed as a credit carryforward for each of the 20 taxable years following the unused credit year.

`(2) RULES- Rules similar to the rules of section 39 shall apply with respect to the credit carryforward under paragraph (1).

`(f) Recapture of Credit- If--

`(1) the taxpayer fails to hold qualified nanotechnology developer stock for the 7-year period beginning on the date such stock was purchased by the taxpayer, or

`(2) during such 7-year period, the issuer of such stock ceases to be a qualified nanotechnology developer,

then notwithstanding any other provision of this subtitle, the tax imposed by this chapter on the taxpayer for the taxable year beginning in the calendar year in which such cessation occurred shall be increased by the aggregate amount of credit allowed under subsection (a) to the taxpayer with respect to such stock.

`(g) Special Rule- For purposes of this section, rules similar to the rules of section 1202(c)(3) shall apply.

`(h) Basis Adjustments- For purposes of this subtitle, if a credit is allowed under this section for the purchase of any stock--

`(1) the increase in the basis of such stock which would (but for this subsection) result from such purchase shall be reduced by the amount of the credit so allowed, and

`(2) the basis of such stock shall be increased by the amount of any increase in tax by reason of subsection (f).'.

(b) Conforming Amendment- Subsection (a) of section 1016 of such Code is amended by striking `and' at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting `; and', and by adding at the end the following new paragraph:

`(38) to the extent provided in section 54A(h), in the case of amounts with respect to which a credit has been allowed under section 54A or a recapture imposed under section 54A(f).'.

`SUBPART G. NANOTECHNOLOGY DEVELOPMENT CREDIT.'.

(d) Effective Date- The amendments made by this section shall apply to amounts paid after December 31, 2005.

SEC. 1212. NANOTECHNOLOGY ASSISTANCE.

(a) DEFINITIONS- In this section:

(1) COMMERCIALIZATION- The term `commercialization' means the process of converting nanotechnology research into products and processes that are used in the marketplace.

(2) DEGREE-GRANTING INSTITUTION- The term `degree-granting institution' means an institution of higher education, as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001), that awards an associate or baccalaureate degree.

(3) INCUBATOR- The term `incubator' means an entity affiliated with or housed in a degree-granting institution that provides space and coordinated and specialized services to entrepreneurial businesses that work in the field of nanotechnology commercialization and that meets selected criteria during the businesses' startup phase, including providing services such as shared office space and services, access to equipment, access to telecommunications and technology services, flexible leases, specialized management assistance, access to financing, and other coordinated business or technical support services.

(4) NANOTECHNOLOGY- The term `nanotechnology' means the science of understanding and manipulating matter on an atomic or molecular scale, generally to create structures, and usually at a size smaller than 100 nanometers.

(5) SECRETARY- The term `Secretary' means the Secretary of Commerce.

(b) Grants Authorized-

(1) IN GENERAL- The Secretary is authorized to establish within the Technology Administration of the Department of Commerce a grant program to support the establishment and development of incubators.

(2) ALLOCATION OF FUNDS- From the amount appropriated pursuant to the authorization of appropriations in subsection (e) for a fiscal year, the Secretary--

(A) shall use 80 percent of such amount to--

(i) make awards, on a competitive basis, in amounts of up to $2,500,000, to help acquire or renovate space for incubators; and

(ii) make awards, on a competitive basis, in amounts of $50,000 to $150,000, for--

(I) developing curricula related to nanotechnology;

(II) providing services for commercialization, including preparing providing services to appropriate businesses including corporate charters, partnership agreements, and basic contracts, assistance with patents, trademarks, and copyrights, and technology acquisition services; or

(III) providing programming for entrepreneurs working in nanotechnology housed in an incubator;

(B) shall reserve 10 percent of the amount to make awards, on a competitive basis, in amounts of $50,000 to $150,000, for feasibility studies for determining the need for or siting of incubators; and

(C) shall reserve 10 percent for research regarding best practices for incubator programs, including the development of a benchmarking system based on uniform measures, and for dissemination of information regarding such practices.

(3) CONTRACTS- The Secretary is authorized to contract with organizations with expertise in incubation practices for the purposes of carrying out paragraph (2)(C).

(4) USES OF FUNDS- Funds awarded under paragraph (2)(A)(ii) may be used for--

(A) curriculum, training, or technical assistance related to nanotechnology developed by academic faculty with participation from entrepreneurship experts;

(B) programming that contributes to a coordinated set of business assistance tools, such as developing management teams, providing workforce development, forming strategic alliances, developing capital formation networks, and developing customized plans for commercialization; and

(5) RECIPIENTS- The Secretary shall make an award--

(A) described in paragraph (2)(A) to a nonprofit entity that has a strong affiliation with a degree-granting institution and manages or provides technical assistance to the degree-granting institution's affiliated incubator, or if no nonprofit entity manages or provides technical assistance to the incubator, to the degree-granting institution managing the incubator; and

(B) described in paragraph (2)(B) to a degree-granting institution.

(6) APPLICATIONS- Each entity desiring assistance under this section shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require.

(7) SELECTION-

(A) PRIORITY- The Secretary shall give priority to funding applications under this subsection for activities that--

(i) will be carried out at a facility that is included in the Centers and Networks of Excellence of the research and development program known as the National Nanotechnology Initiative;

(ii) provide strong educational opportunities to students in fields related to nanotechnology and commercialization; and

(iii) require significant collaboration between businesses and academia.

(B) CONSIDERATION- The Secretary may give consideration to funding applications under this subsection that support--

(i) the building of new incubators;

(ii) incubators that work with faculty entrepreneurs or university-based research;

(iii) incubators that are located in areas with an established venture capital industry and other industry support, including leadership and legal support, for commercialization; or

(iv) incubators that have secured additional private funding.

(1) ESTABLISHMENT- The Secretary shall establish a Nanotechnology Startup Advisory Council composed of industry leaders, business and marketing professionals, venture capitalists, attorneys, and nanotechnology researchers.

(2) PURPOSE- The purpose of the Nanotechnology Start-up Advisory Council is to ensure that emerging nanotechnology companies create a sound foundation for new business.

(d) Report- Not later than September 30 of the third fiscal year during which assistance is provided under this section, the Secretary shall prepare and submit to Congress a report that--

(1) describes the most effective or innovative additions to curricula related to nanotechnology that were developed with such assistance; and

(2) contains a comparison of the success of nanotechnology companies developed in incubators that received such assistance with the success of other nanotechnology companies;

(3) describes any factors leading to success of companies that were developed in incubators;

(4) recommends the best role for degree-granting institutions in commercialization; and

(5) contains a comparison of academic-affiliated incubators of specific missions and ages that received assistance under this section with other incubators with similar missions and ages.

(e) Authorization of Appropriations- There are authorized to be appropriated to carry out this section $25,000,000 for each of the fiscal years 2007, 2008, and 2009.

CHAPTER 2--INVESTING IN HIGH-TECH MANUFACTURING

SEC. 1221. MANUFACTURING EXTENSION PARTNERSHIP PROGRAM.

(a) IN GENERAL- There is authorized to be appropriated for the National Institute of Standards and Technology for the Manufacturing Extension Partnership Program amounts as follows:

(1) For fiscal year 2007, $212,000,000.

(2) For fiscal year 2008, $272,000,000.

(3) For fiscal year 2009, $332,000,000.

(4) For fiscal year 2010, $392,000,000.

(5) For fiscal year 2011, $452,000,000.

(6) For fiscal year 2012, $512,000,000.

(7) For fiscal year 2013, $572,000,000.

(8) For fiscal year 2014, $632,000,000.

(9) For fiscal year 2015, $692,000,000.

(10) For fiscal year 2016, $752,000,000.

(11) For fiscal year 2017, $812,000,000.

SEC. 1222. ADVANCED TECHNOLOGY PROGRAM.

There are authorized to be appropriated for the National Institute of Standards and Technology for carrying out the Advanced Technology Program under section 28 of the National Institute of Standards and Technology Act (15 U.S.C. 278n), $320,000,000 for each of the fiscal years 2007 through 2016.

CHAPTER 3--DOMESTIC VACCINES

SEC. 1231. INCENTIVES FOR THE CONSTRUCTION OF DOMESTIC VACCINE MANUFACTURING FACILITIES.

(a) Domestic Vaccine Manufacturing Facilities Investment Tax Credit-

(1) ALLOWANCE OF CREDIT- Section 46 of the Internal Revenue Code of 1986 (relating to amount of investment 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 vaccine manufacturing facilities investment credit.'.

(2) AMOUNT OF CREDIT- Subpart E of part IV of subchapter A of chapter 1 of such Code is amended inserting after section 45B the following new section:

`SEC. 48C. VACCINE MANUFACTURING FACILITIES INVESTMENT CREDIT

`(a) IN GENERAL- For purposes of section 46, the vaccine manufacturing facilities investment credit for any taxable year is an amount equal to 10 percent of the qualified investment for such taxable year.

`(b) QUALIFIED INVESTMENT- For purposes of subsection (a), the qualified investment for any taxable year is the basis of each vaccine manufacturing facilities property placed in service by the taxpayer during such taxable year.

`(c) VACCINE MANUFACTURING FACILITIES PROPERTY- For purposes of this section, the term `vaccine manufacturing facilities property' means real and tangible personal property--

`(1) the original use of which commences with the taxpayer,

`(2) which is depreciable under section 167, with a class life of less than 20 years,

`(3) which is substantially used for the manufacture or research and development of vaccines or antibiotics or antiviral agents which are widely considered potentially useful for the prevention or containment of public health crises, and

`(4) which is in compliance with any standards and regulations which are promulgated by the Food and Drug Administration, the Occupational Safety and Health Administration, or the Environmental Protection Agency and which are applicable to such property.

`(d) CERTAIN PROGRESS EXPENDITURE RULES MADE APPLICABLE- Rules similar to rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this subsection.'.

(b) Technical Amendments-

(1) 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 at the end the following new clause:

`(v) the basis of any vaccine manufacturing facilities property under section 48C.'.

(2) Subparagraph (E) of section 50(a)(2) of such Code is amended by inserting `or 48C(d)' before the period.

(3) The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 48B and inserting the following:

`Sec. 48C. Vaccine manufacturing facilities investment credit.'.

(c) Effective Date- The 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 enactment of the Revenue Reconciliation Act of 1990).

CHAPTER 4--PROGRAMS AND TAX CREDITS TO INCREASE ENERGY EFFICIENCY

SEC. 1241. GRANT PROGRAM FOR GREEN BUILDING AND ZERO-ENERGY HOME DESIGN AND CONSTRUCTION TRAINING.

(a) IN GENERAL- The Secretary of Education, in consultation with the Secretary of Energy, may award grants to postsecondary educational institutions to enable the institutions to train 10,000 individuals in green building and zero-energy home design and construction by fiscal year 2011.

(b) APPLICATION- A postsecondary educational institution that desires to receive a grant under this section shall submit an application to the Secretary of Education at such time, in such manner, and accompanied by such information as the Secretary of Education may reasonably require.

(1) IN GENERAL- A postsecondary educational institution that receives a grant under this section shall use the grant funds to reimburse an individual who completes training in zero-energy home design and construction at, and receives accreditation as a green building professional from, the institution for an amount that is not more than 50 percent of the amount the individual paid to receive the training at the institution.

(2) DETERMINATION OF AMOUNT- For purposes of calculating the amount of the reimbursement under paragraph (1), the amount the individual paid to receive the training at the institution shall be reduced by the amount of any other grants received by the individual for the training.

(3) EFFECT ON OTHER FEDERAL LOANS- A reimbursement provided to an individual under paragraph (1) shall not affect the eligibility of the individual for other Federal loans, including student loans.

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as are necessary to carry out this section.

SEC. 1242. EXTENSION OF CERTAIN TAX CREDITS FOR SOLAR ENERGY.

(a) Extension of Residential Renewable Energy Efficient Property Credit Through 2012- Section 25D(g) of the Internal Revenue Code of 1986 is amended to read as follows:

`(g) Termination- The credit allowed under this section shall not apply to--

`(1) property described in paragraph (1) or (2) of subsection (d) placed in service after December 31, 2012, and

`(2) property described in subsection (d)(3) placed in service after December 31, 2007.'.

(b) Extension of Renewable Energy Investment Tax Credit Through 2012- Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal Revenue Code of 1986 (relating to energy credit) is amended by striking `2008' both places it appears and inserting `2013'.

(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

SEC. 1243. TAX CREDIT FOR PURCHASING GREEN POWER.

(a) In General- Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to other credits) is amended by adding at the end the following new section:

`SEC. 30D. CREDIT FOR GREEN PRICING PREMIUMS.

`(a) In General- There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the green pricing premiums paid by the taxpayer during the taxable year.

`(b) Application With Other Credits- The credit allowed by subsection (a) for any taxable year shall not exceed the excess (if any) of--

`(1) the regular tax for the taxable year reduced by the sum of the credits allowable under subpart A and sections 27, 30, 30B, and 30C, over

`(2) the tentative minimum tax for the taxable year.

`(c) Definitions- For purposes of this section:

`(1) GREEN PRICING PREMIUM- The term `green pricing premium' means the excess of the amount paid, pursuant to a qualified green power program, for green power electricity over the market price for electricity produced from non-renewable resources.

`(2) GREEN POWER ELECTRICITY- The term `green power electricity' means electricity produced from wind, solar, geothermal, biomass, biogas, and low-impact hydropower sources.

`(3) QUALIFIED GREEN POWER PROGRAM- The term `qualified green power program' means a voluntary program--

`(A) under which an electric utility offers to customers of the electric utility the opportunity to pay a green pricing premium for the purchase of green power electricity; and

`(B) that is approved by the Secretary, in consultation with the Secretary of Energy.'.

(b) Conforming Amendments-

(1) Section 55(c)(2) of the Internal Revenue Code of 1986 is amended by inserting `30D(b),' after `30C(d)(2),'.

(2) The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

`Sec. 30D. Credit for green pricing premiums.'.

CHAPTER 5--RENEWABLE PORTFOLIO STANDARD

SEC. 1251. RENEWABLE PORTFOLIO STANDARD.

Title VI of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end the following:

`SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

`(a) RENEWABLE ENERGY REQUIREMENT-

`(1) IN GENERAL- Not later than January 1, 2020, each electric utility that sells electricity to electric consumers shall obtain 20 percent of the base amount of electricity the electric utility sells to electric consumers in a calendar year from new renewable energy or existing renewable energy, of which at least 1 percent shall be obtained from distributed resources.

`(2) MEANS OF COMPLIANCE- An electric utility shall meet the requirements of paragraph (1) by--

`(A) generating electric energy using new renewable energy or existing renewable energy;

`(B) purchasing electric energy generated by new renewable energy or existing renewable energy;

`(C) purchasing renewable energy credits issued under subsection (b); or

`(D) a combination of the foregoing.

`(b) RENEWABLE ENERGY CREDIT TRADING PROGRAM-

`(1) IN GENERAL- Not later than January 1, 2010, the Secretary shall establish a renewable energy credit trading program for electric utilities that permits a utility that does not obtain enough electricity from renewable energy sources to meet its obligations under subsection (a)(1) to satisfy such obligations by purchasing renewable energy credits.

`(2) REQUIREMENTS- As part of the program established under paragraph (1), the Secretary shall--

`(A) issue regulations binding utilities to a schedule of gradual increases in the percentage or amount of electricity obtained from renewable energy sources and sold to consumers, including distributed sources, prior to the 20 percent level mandated for January 1, 2020;

`(B) issue annually 1 renewable energy credit for each kilowatt hour of electricity obtained from renewable energy sources and sold to consumers in the prior calendar year;

`(C) establish civil penalties of no less than the going market value of a renewable energy credit, and levy those penalties against utilities that fail to obtain the required percentage or amount of renewable energy credits;

`(D) monitor the sale or exchange of, and track, renewable energy credits; and

`(E) except as provided for in subsection (f)(1), ensure that any renewable energy credit shall be used only once for compliance with this section.

`(c) ENFORCEMENT-

`(1) INSUFFICIENT DISTRIBUTED SOURCES CIVIL PENALTY- The amount of the civil penalty for not meeting the 1 percent distributed resources requirement under subsection (a)(1) shall be the greater of--

`(A) the product of the number of kilowatt hours of electricity sold to consumers in violation of the requirement and 10 cents; and

`(B) an amount equal to twice the civil penalties established under subsection (b)(2)(C).

`(2) MITIGATION OR WAIVER- The Secretary may mitigate or waive a civil penalty under subsection (b)(2)(C) or this subsection if the electric utility--

`(A) was unable to comply with subsection (a) for reasons outside of the reasonable control of the utility; or

`(B) is developing a new renewable energy source for use in the generation of electricity that will--

`(i) be in use before January 1, 2020; and

`(ii) satisfy a significant percentage of the 20 percent renewable energy requirement of the electric utility under subsection (a)(1).

`(d) PROHIBITION ON INCREASING RATES TO PAY FINES- An electric utility shall not raise ratepayer rates to cover civil penalties established under subsection (b)(2)(C) or (c)(1).

`(e) USE- In addition to amounts made available under section 7101(d), amounts received by the Secretary as a civil penalty under subsection (b)(2)(C) or (c)(1) shall be used to--

`(1) provide grants under section 7101(a); and

`(2) comply with any renewable energy requirements applicable to the Federal Government.

`(f) STATE PROGRAMS-

`(1) CALCULATION OF RENEWABLE ENERGY REQUIREMENT- In calculating the number of kilowatt hours of electricity a utility obtained from new or existing renewable energy sources and sold to consumers in a year in order to issue an equal number of renewable energy credits, the Secretary may include kilowatt hours of electricity a utility obtained from new and existing renewable energy sources and sold to consumers in the same year in order to meet a State law or regulation.

`(2) EFFECT- Nothing in this section diminishes any authority of a State or political subdivision of a State to adopt or enforce any law (including a regulation) with respect to renewable energy, if the law does not conflict with this section.

`(g) DEFINITIONS- For purposes of this section:

`(1) DISTRIBUTED GENERATION FACILITY- The term `distributed generation facility' means a facility at a customer site.

`(2) DISTRIBUTED RESOURCE- The term `distributed resource' means a renewable energy resource located at the point of use or the customer side of the meter.

`(3) EXISTING RENEWABLE ENERGY- The term `existing renewable energy' means electric energy generated at a facility (including a distributed generation facility) placed in service prior to the date of enactment of this section from solar, wind, or geothermal energy; ocean energy; biomass (as defined in section 203(b) of the Energy Policy Act of 2005); or landfill gas.

`(4) NEW RENEWABLE ENERGY- The term `new renewable energy' means electric energy generated at a facility (including a distributed generation facility) placed in service on or after the date of enactment of this section from--

`(A) solar, wind, or geothermal energy or ocean energy;

`(B) biomass (as defined in section 203(b) of the Energy Policy Act of 2005);

`(C) landfill gas; or

`(D) incremental hydropower.

`(5) OCEAN ENERGY- The term `ocean energy' includes current, wave, tidal, and thermal energy.

`(h) SUNSET- This section expires on December 31, 2030.'.

CHAPTER 6--IMPROVING THE EFFICIENCY OF HEALTH CARE TO ENHANCE AMERICA'S ECONOMIC COMPETITIVENESS

Subchapter A--Improving Information Provided to Patients

SEC. 1261. REQUIREMENT FOR HEALTH INSURERS TO IMPLEMENT COMPUTERIZED CLAIMS PROCESSING SYSTEMS.

(a) IN GENERAL- Not later than 7 years after the date of enactment of this Act, each group health plan and health insurance issuer offering health insurance coverage shall have in effect an automated, integrated system that allows for efficient and effective adjudication of claims and the detection of fraud and abuse in accordance with this section.

(b) ELEMENTS OF ADJUDICATION- The system described in subsection (a) shall include determinations concerning payments and coverage for items or services under the terms and conditions of the plan or coverage involved, including any cost-sharing amount that the participant, beneficiary, or enrollee is required to pay with respect to such claim.

(c) TIMEFRAME- The plan or issuer shall complete the adjudication of claims under this section immediately after the plan or issuer receives--

(1) the claim; and

(2) any additional information requested by the plan or issuer that is necessary to make a determination relating to the claim.

(d) ACCURACY- In adjudicating claims under this section the plan or issuer shall ensure that--

(1) such claims are adjudicated with an accuracy of at least 99 percent;

(2) the plan or issuer has the ability to accept claims submitted via the Internet; and

(3) the plan or issuer has the ability to issue denials where necessary instantaneously via the Internet, and to provide an opportunity for challenge to and resolution of such denials (except in cases of dispute over medical necessity) via the Internet.

(e) DETECTION SYSTEM- Not later than 2 years after the date of enactment of this Act, each group health plan and health insurance issuer offering health insurance coverage shall use the system described in subsection (a) to detect fraud and abuse in real-time as part of the adjudication of claims under this section.

(f) REGULATIONS- The Secretary shall issue such regulations as may be necessary or appropriate to carry out this section.

SEC. 1262. MAKING HEALTH CARE MORE RESPONSIVE TO THE CONSUMER.

(a) STATEMENT OF ACCOUNT FOR CONSUMERS-

(1) IN GENERAL- Not later than 7 years after the date of enactment of this Act, each group health plan and health insurance issuer offering health insurance coverage shall have in effect a computerized system that provides each participant, beneficiary, or enrollee with a statement of account that--

(A) includes information, with respect to the participant, beneficiary, or enrollee, on--

(i) claims received, claims denied, and the reasons for any denials;

(ii) status of coverage; and

(iii) deductible information; and

(B) is issued quarterly.

(2) INTERNET ACCESS- The plan or issuer may comply with this subsection by making the quarterly statements available on the Internet 24 hours a day, 7 days a week, through a secure website.

(b) STATEMENT OF ACCOUNT FOR EMPLOYERS AND PURCHASES- Not later than 7 years after the date of enactment of this Act, each group health plan and health insurance issuer shall have in effect a computerized system to provide to employers and other purchasers of health insurance products a statement of account that--

(1) includes--

(A) current information on coverage status; and

(B) reports of customer satisfaction that are updated annually; and

(2) is available 24 hours a day, 7 days a week, through--

(A) the Internet through a secure website; or

(B) a toll-free telephone number.

(1) IN GENERAL- Not later than 7 years after the date of enactment of this Act, each group health plan and health insurance issuer shall have in effect a computerized system to provide to employers and other purchasers of health insurance products an option to enroll for coverage under such health insurance products on the Internet through a secure website.

(2) ELIGIBILITY REQUIREMENTS- The Internet website described in paragraph (1) shall include information on eligibility requirements for coverage.

(d) CONSUMER EXPLANATION OF BENEFITS-

(A) an explanation of benefits at the point of service or not later than 48 hours after the time that service is provided; and

(B) a description of the coverage and cost of each services provided to the participant, beneficiary, or enrollee under the plan or coverage.

(2) LANGUAGE- Any explanation of benefits under this subsection shall be provided in a printed form and written in a manner calculated to be understood by the average participant, beneficiary, or enrollee.

(e) REFERRALS AND AUTHORIZATIONS-

(1) IN GENERAL- Not later than 7 years after the date of enactment of this Act, each group health plan and health insurance issuer shall have in effect a computerized system for making and checking referrals and pre-authorizations where such referrals and pre-authorizations are required under the plan or coverage.

(2) ACCESS- The system described in paragraph (1) shall permit access by physicians and by participants, beneficiaries, and enrollees to information on the completion of referrals and pre-authorizations and whether health care services and products have been authorized, through--

(A) the Internet through a secure website; or

(B) a toll-free telephone number.

(f) PATIENT CLAIM HISTORY- Not later than 7 years after the date of enactment of this Act, each group health plan and health insurance issuer shall establish a system--

(1) by which a health care provider may, with patient authorization, have access to the patient's statement of account, as described in subsection (a); and

(2) that is accessible through--

(A) the Internet through a secure website; or

(B) a toll-free telephone number.

(g) MODERNIZING FINANCIAL TRANSACTIONS IN HEALTH CARE- Not later than 7 years after the date of enactment of this Act, each group health plan and health insurance issuer offering health insurance coverage shall have in effect a computerized system that--

(1) permits health care providers to receive claim payments through electronic transfer of funds;

(2) permits participants, beneficiaries, and enrollees to make payments for deductibles through electronic transfer of funds; and

(3) provides automated, integrated audit controls to monitor any duplicate payments or overpayments within the adjudication system.

SEC. 1263. REGULATIONS.

The Secretary shall issue such regulations as may be necessary or appropriate to carry out this title.

Subchapter B--Application to Public Health Service Act and Employee Retirement Income Security Act of 1974

SEC. 1271. APPLICATION TO GROUP HEALTH PLANS AND GROUP HEALTH INSURANCE COVERAGE UNDER THE PUBLIC HEALTH SERVICE ACT.

(a) IN GENERAL- Subpart 2 of part A of title XXVII of the Public Health Service Act is amended by adding at the end the following new section:

`SEC. 2707. HEALTH CARE MODERNIZATION STANDARDS.

`Each group health plan shall comply with health care modernization requirements under subchapter A of chapter 6 of subtitle B of title I of the Right Time to Reinvest in America's Competitiveness and Knowledge Act, and each health insurance issuer shall comply with health care modernization requirements under such subtitle with respect to group health insurance coverage it offers, and such requirements shall be deemed to be incorporated into this section.'.

(b) CONFORMING AMENDMENT- Section 2721(b)(2)(A) of such Act (42 U.S.C. 300gg-21(b)(2)(A)) is amended by inserting `(other than section 2707)' after `requirements of such subparts'.

SEC. 1272. APPLICATION TO INDIVIDUAL HEALTH INSURANCE COVERAGE UNDER THE PUBLIC HEALTH SERVICE ACT.

Part B of title XXVII of the Public Health Service Act is amended by inserting after section 2752 the following new section:

`SEC. 2753. HEALTH CARE MODERNIZATION STANDARDS.

`Each health insurance issuer shall comply with health care modernization requirements under subchapter A of chapter 6 of subtitle B of title I of the Right Time to Reinvest in America's Competitiveness and Knowledge Act with respect to individual health insurance coverage it offers, and such requirements shall be deemed to be incorporated into this section.'.

SEC. 1273. APPLICATION TO GROUP HEALTH PLANS AND GROUP HEALTH INSURANCE COVERAGE UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974.

Subpart B of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following new section:

`SEC. 714. HEALTH CARE MODERNIZATION STANDARDS.

`A group health plan (and a health insurance issuer offering group health insurance coverage in connection with such a plan) shall comply with the requirements of subchapter A of chapter 6 of subtitle B of title I of the Right Time to Reinvest in America's Competitiveness and Knowledge Act (as in effect as of the date of the enactment of such Act), and such requirements shall be deemed to be incorporated into this section.'.

Subchapter C--Miscellaneous Provisions

SEC. 1281. DEFINITIONS.

In this title:

(1) CLAIM- The term `claim' means any request for coverage (including authorization of coverage), for eligibility, or for payment in whole or in part, for an item or service under a group health plan or health insurance coverage.

(2) COST-SHARING- The term `cost-sharing' means any deductibles, coinsurance, copayment amounts, and liability for balance billing, for which the participant, beneficiary, or enrollee will be responsible.

(3) ENROLLEE- The term `enrollee' means, with respect to health insurance coverage offered by a health insurance issuer, an individual enrolled with th