[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2829 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 2829
To reduce the addiction of the United States to oil, to ensure near-
term energy affordability and empower American families, to accelerate
clean fuels and electricity, to provide government leadership for clean
and secure energy, to secure a reliable, affordable, and sustainable
energy future, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 17, 2006
Ms. Cantwell (for herself, Mr. Reid, Mr. Durbin, Ms. Mikulski, Mr.
Dodd, Mr. Menendez, Mr. Carper, Mr. Dayton, Mr. Kerry, Mr. Reed, Mr.
Bingaman, Mrs. Feinstein, Mr. Harkin, Mr. Salazar, Mr. Schumer, Mr.
Dorgan, Mrs. Clinton, Mr. Leahy, Mr. Johnson, Mrs. Boxer, Mr.
Lieberman, Mr. Byrd, Ms. Stabenow, Mr. Levin, and Mr. Biden) introduced
the following bill; which was read twice and referred to the Committee
on Finance
_______________________________________________________________________
A BILL
To reduce the addiction of the United States to oil, to ensure near-
term energy affordability and empower American families, to accelerate
clean fuels and electricity, to provide government leadership for clean
and secure energy, to secure a reliable, affordable, and sustainable
energy future, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Clean Energy
Development for a Growing Economy Act of 2006'' or the ``Clean EDGE Act
of 2006''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I--REDUCING OUR ADDICTION TO OIL
Subtitle A--Reducing Oil Consumption by 2020
Sec. 101. Setting a national oil savings goal.
Subtitle B--Biofuels Infrastructure
Sec. 111. Modification of alternative fuel vehicle refueling property
credit.
Sec. 112. Alternative fuel-related standards.
Sec. 113. Accelerating conversion to alternative fuels infrastructure.
Sec. 114. Low- interest loan program for farmer-owned retail delivery
of alternative fuels.
Sec. 115. Extension of biodiesel income and excise tax credits.
Sec. 116. Small ethanol producer credit expanded for producers of
sucrose and cellulosic ethanol.
Sec. 117. Incentives to produce transportation fuels from cellulosic
biomass.
Sec. 118. Alternative fuels investment by major oil companies and
vehicle manufacturers.
Subtitle C--Flexible Fuel Vehicle Market Penetration
Sec. 121. Credit for production of qualified flexible fuel vehicles.
Sec. 122. Ensuring availability of flexible fuel vehicles.
Sec. 123. Increasing consumer awareness of flexible fuel vehicles.
Subtitle D--25 by '25 Renewable Energy and Fuels Vision
Sec. 131. Presidential authority to increase renewable fuel content of
motor fuels and clean energy sources.
Subtitle E--Nationwide Media Campaign to Encourage Energy Efficiency
and Conservation
Sec. 141. Nationwide media campaign to encourage energy efficiency and
conservation.
Subtitle F--Increasing Transit Use and Alternative Transportation Modes
Sec. 151. Transit-Oriented Development Corridors.
Sec. 152. Increasing transit utilization incentives.
Sec. 153. Extension of transportation fringe benefit to bicycle
commuters.
TITLE II--ENSURING NEAR-TERM ENERGY AFFORDABILITY AND EMPOWERING
AMERICAN FAMILIES
Subtitle A--Making Gas Price Gouging a Federal Crime
Sec. 201. Unfair or deceptive acts or practices in commerce related to
gasoline and petroleum distillates.
Sec. 202. Enforcement under Federal Trade Commission Act.
Sec. 203. Enforcement at retail level by State Attorneys General.
Sec. 204. Penalties.
Sec. 205. Effect on other laws.
Subtitle B--Strengthening Anti-Trust Enforcement in the Oil and Gas
Industry
Sec. 211. Prohibition on unilateral withholding.
Sec. 212. Modification of merger standard in Clayton Act.
Sec. 213. Study by the Government Accountability Office.
Sec. 214. Joint Federal and State task force.
Subtitle C--Improving Oversight of Oil and Gas Market Speculation
Sec. 221. Short title.
Sec. 222. Reporting and recordkeeping for positions involving energy
commodities.
Subtitle D--Low Income Energy Price Relief
Sec. 231. Adjustment of standard utility allowance under the food stamp
program for high energy costs.
Sec. 232. Public housing energy cost assistance.
Sec. 233. Refundable tax credit for low-income residential energy cost
assistance.
Subtitle E--Small Business and Agricultural Producers Energy Emergency
Relief Program
Sec. 241. Energy emergency disaster relief loans to small business and
agricultural producers.
Subtitle F--Public Access to Federal Alternative Refueling Stations
Sec. 251. Access to Federal alternative refueling stations.
Subtitle G--Measures to Empower Drivers to Realize Improved Fuel
Economy
Sec. 261. Improved labeling on new vehicle window stickers.
Sec. 262. Tire efficiency labeling program.
Sec. 263. New vehicle options to empower drivers to reduce fuel use.
Sec. 264. Idling reduction tax credit.
Subtitle H--Providing Consumers With Additional Advanced Technology
Vehicle Purchase Incentives
Sec. 271. Expansion and extension of alternative motor vehicle credit.
Sec. 272. Plug-in hybrid motor vehicle tax credit.
Subtitle I--Tax Incentives for Fuel Efficient Private Fleets
Sec. 281. Tax credit for fuel-efficient fleets.
TITLE III-- ACCELERATING CLEAN FUELS AND ELECTRICITY
Subtitle A--Guaranteeing a Minimum Level of Renewable Electricity
Generation
Sec. 301. Renewable portfolio standard.
Subtitle B--Facilitating Home Energy Generation Through Net Metering
and Interconnection Standards
Sec. 311. Net metering.
Subtitle C--Long Term Extensions and Expansions for Clean Energy
Incentives
Sec. 321. Extension of production tax credit for electricity produced
from certain renewable resources.
Sec. 322. Extension and modification of investment tax credit with
respect to solar energy property and
qualified fuel cell property.
Sec. 323. Credit for wind energy systems.
Sec. 324. Expansion of resources to wave, current, tidal, and ocean
thermal energy.
Sec. 325. Extension and expansion of credit to holders of clean
renewable energy bonds.
Sec. 326. Extension of credit for business installation of qualified
fuel cells and stationary microturbine
power plants.
Sec. 327. Extension of business solar investment tax credit.
Sec. 328. Extension of full credit for qualified electric vehicles.
Subtitle D--Long-Term Extensions and Expansions for Energy Efficiency
and Conservation Incentives
Sec. 331. Extension of energy efficient commercial buildings deduction.
Sec. 332. Extension and expansion of new energy efficient home credit.
Sec. 333. Extension of nonbusiness energy property credit.
Sec. 334. Extension and modification of residential energy efficient
property credit.
Sec. 335. Energy credit for combined heat and power system property.
Sec. 336. Three-year applicable recovery period for depreciation of
qualified energy management.
Sec. 337. Three-year applicable recovery period for depreciation of
qualified water submetering devices.
Subtitle E--Utilizing America's Abundant Coal Supplies Cleanly
Sec. 341. Clean energy coal bonds.
Sec. 342. Extension and expansion of qualifying advanced coal project
credit.
Sec. 343. Expansion of qualifying gasification project credit.
Sec. 344. Coal-to-liquid and biomass transportation fuels.
TITLE IV--REAL GOVERNMENT LEADERSHIP FOR CLEAN AND SECURE ENERGY
Subtitle A--Federal Biofuels and Efficient Vehicle Use Leadership
Sec. 401. Federal agency ethanol-blended gasoline and biodiesel
purchasing requirement.
Sec. 402. Use of the existing flexible fuel vehicle fleet of the
Federal government.
Sec. 403. Standards for executive agency automobiles.
Sec. 404. Federal fleet conservation requirements.
Subtitle B--Federal Clean and Efficient Energy Leadership
Sec. 411. Federal leadership on clean energy purchasing.
Sec. 412. Clean and secure backup power at Federal facilities.
Sec. 413. Eliminating vampire electronic devices.
Sec. 414. Promoting Federal leadership in energy management.
Sec. 415. Retention of savings from energy savings performance
contracts.
Subtitle C--State, Tribal, and Local Clean and Efficient Energy
Leadership
Sec. 421. Freedom from fossil fuels (F4) bonds.
Sec. 422. Clean energy security collaborative.
Sec. 423. Assistance for State programs to retire fuel-inefficient
motor vehicles.
Subtitle D--International Clean Energy Deployment
Sec. 431. Clean energy technology deployment in developing countries.
TITLE V--SECURING A RELIABLE, AFFORDABLE, AND SUSTAINABLE ENERGY FUTURE
Subtitle A--Advanced Research Project Agency for Energy
Sec. 501. Office of Advanced Energy Research, Technology Development,
and Deployment.
Subtitle B--Near-Term Vehicle Technology Program
Sec. 505. Near-term vehicle technology program.
Subtitle C--Advanced Technology Motor Vehicles Manufacturing Credit
Sec. 511. Advanced technology motor vehicles manufacturing credit.
Subtitle D--Realizing a Hydrogen Future
Sec. 521. H-Prize competition.
Sec. 522. Credit for retail sale of hydrogen fuel as motor vehicle
fuel.
Sec. 523. Credit for production of hydrogen fuel.
Sec. 524. Tax holiday for hydrogen fuel.
Sec. 525. Sense of Congress regarding hydrogen fuel taxes.
Sec. 526. Hydrogen fueling fringe benefit.
Sec. 527. Exclusion of earnings from hydrogen fuel sales.
Subtitle E--Building the Skilled Workforce for Advanced Vehicle and
Energy Technology Deployment
Sec. 531. Increasing skilled workforce.
Sec. 532. Grant program for green building and zero-energy home design
and construction training.
Subtitle F--Clean Energy Investment Administration
Sec. 541. Definitions.
Sec. 542. Clean Energy Investment Administration.
Sec. 543. Requirements specific to demonstration projects and
commercial deployment projects.
Sec. 544. Loan guarantee program.
Sec. 545. Energy park task forces.
Sec. 546. Authorization of appropriations.
Subtitle G--Strategic Gasoline and Fuel Reserve
Sec. 548. Strategic Gasoline and Fuel Reserve.
Subtitle H--Reports on United States Energy Emergency Preparedness
Sec. 551. Potential impacts of oil supply shock.
Sec. 552. Preventing future disruptions.
Subtitle J--Impacts of Act on Reducing Greenhouse Gas Emissions
Sec. 561. Climate change and energy policy feedback loop.
Subtitle K--Energy Fairness for America
Sec. 571. Elimination of deduction for intangible drilling and
development costs for major oil companies.
Sec. 572. Elimination of enhanced oil recovery credit for major oil
companies.
Sec. 573. Oil and gas royalty-related amendments.
Sec. 574. Extension of election to expense certain refineries.
Sec. 575. Elimination of amortization of geological and geophysical
expenditures for major oil companies.
Sec. 576. Revaluation of LIFO inventories of major integrated oil
companies.
Sec. 577. Modifications of foreign tax credit rules applicable to major
integrated oil companies which are dual
capacity taxpayers.
Sec. 578. Denial of deduction for income attributable to domestic
production of oil, natural gas, or primary
products thereof.
Sec. 579. Rules relating to foreign oil and gas income.
Sec. 580. Elimination of deferral for foreign oil and gas extraction
income.
Subtitle L--Protection and Retention of Value of Publicly-Owned Energy
Resources
Sec. 591. Suspension of royalty relief.
Sec. 592. Renegotiation of existing leases.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) in his State of the Union address during January 2006,
President George W. Bush acknowledged that ``we have a serious
problem: America is addicted to oil'';
(2) the near-total reliance of the transportation sector
and the military of the United States on crude oil, coupled
with the growing dependence of the United States on foreign oil
imports, makes the economy and national security of the United
States dangerously subject to the willingness of other
countries to provide adequate and affordable energy supplies;
(3) world demand for crude oil and petroleum products will
continue increasing, and the bulk of the remaining oil and
natural gas reserves of the world are controlled by countries
that are members of the anti-competitive cartel of the
Organization of the Petroleum Exporting Countries (OPEC);
(4) terrorists have identified oil supply dependency as a
strategic vulnerability and have increased attacks against oil
infrastructure worldwide and the critical energy infrastructure
of the United States is also at risk from hurricanes, natural
disasters, and a lack of public and private investment;
(5) in 2005, consumers in the United States sent more than
$230,000,000,000 overseas to pay for oil and energy products,
exacerbating the trade deficit of the United States, and in
some cases inadvertently funding unfriendly regimes and
political groups that threaten the economic, political, and
national security interests of the United States;
(6) households in the United States are now forced to pay
an average of $1,800 more each year for fossil fuel-derived
energy than the households did 5 years ago, and energy
expenditures (as a percentage of the gross domestic product)
have been higher than the expenditures have been in the last 20
years;
(7) environmentally-sound technology solutions already
exist to substantially increase the productivity, efficiency,
and variety of domestic energy supplies, including nonpetroleum
alternatives (such as biofuels);
(8) instituting simple but cost-effective energy efficiency
and conservation measures can improve the economic
competitiveness of the United States and quickly lessen energy
costs for families in the United States, all at costs
significantly lower than developing new energy production
capacity;
(9) increasing total Federal research and development
funding and deployment efforts for energy conservation,
renewable and alternative energy resources, and energy
efficiency and vehicle technology, which have largely been
stagnant for the last 5 years, could swiftly bring down energy
costs, increase job creation, and create a major new source of
high-value exports; and
(10) as the largest single energy consumer in the United
States, the Federal government has both a tremendous
opportunity and a clear responsibility to lead by example and
provide guaranteed markets that allow industry to invest in and
produce clean energy technologies.
(b) Purposes.--The purposes of this Act are--
(1) to improve the national, economic, and environmental
security of the United States by rapidly reducing foreign oil
imports and oil consumption and creating viable alternative
fuel options;
(2) to protect and empower consumers and the economy by
making energy supplies affordable, stable, and reliable,
providing consumers in the United States with tools to reduce
their own energy use, and preventing market manipulation and
price-gouging;
(3) to create jobs and economic growth through accelerated
domestic clean energy technology deployment and better targeted
investments and long-term tax incentives;
(4) to expedite the use of the buying power of the Federal
Government to leverage and expand markets for clean energy
products, buildings, and vehicles;
(5) to make the United States significantly more energy
independent and provide the United States with an economic,
environmental, and national security edge that is essential to
maintaining the international competitiveness of, and quality
of life in, the United States; and
(6) to reduce total greenhouse gas emissions to lower the
risk of potentially devastating, wide-ranging impacts
associated with global warming.
TITLE I--REDUCING OUR ADDICTION TO OIL
Subtitle A--Reducing Oil Consumption by 2020
SEC. 101. SETTING A NATIONAL OIL SAVINGS GOAL.
(a) Goal.--It is a goal of the United States to reduce the quantity
of oil projected to be imported in 2020 by 40 percent.
(b) Measures to Reduce Import Dependence.--
(1) In general.--Subject to paragraph (2), not later than 1
year after the date of enactment of this Act, and every other
year thereafter, the President shall develop and implement
measures to reduce the dependence of the United States on
foreign petroleum imports by reducing petroleum in end-uses
throughout the economy of the United States in a manner that is
sufficient to reduce the total demand for petroleum in the
United States by--
(A) 1,000,000 barrels per day from the quantity
projected for calendar year 2015; and
(B) 6,000,000 barrels per day from the quantity
projected for calendar year 2020.
(2) Insufficient legal authorities.--If the President
determines that there are insufficient legal authorities to
achieve the target for calendar year 2020 described in
paragraph (1)(B), the President shall--
(A) develop and implement measures that will reduce
the dependence of the United States on foreign
petroleum imports by reducing petroleum in end-uses
throughout the economy of the United States to the
maximum extent practicable; and
(B) submit to Congress proposed legislation or
other recommendations to achieve the target.
(c) Requirements.--In developing measures under subsection (b), the
President shall--
(1) ensure continued reliable and affordable energy for the
United States, consistent with creating jobs and economic
growth and maintaining the international competitiveness of
United States businesses, including the manufacturing sector;
and
(2) implement the measures under existing authorities of
appropriate Federal agencies, as determined by the President.
(d) Projections.--The projections for total demand for petroleum in
the United States under subsection (b) shall be based on the
projections made in the Reference Case in the report of the Energy
Information Administration entitled ``Annual Energy Outlook 2006''.
(e) Report.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the President
shall submit to Congress a report, based on the most recent
edition of the Annual Energy Outlook published by the Energy
Information Administration, assessing the progress made by the
United States toward the goal of reducing dependence on
imported petroleum sources by 2025 described in subsection (a).
(2) Contents.--The report shall--
(A) identify the status of efforts to meet the goal
described in subsection (a);
(B) assess the effectiveness of any measure
implemented under subsection (b) during the previous
fiscal year in meeting the goal described in subsection
(a); and
(C) describe plans to develop additional measures
to meet the goal.
Subtitle B--Biofuels Infrastructure
SEC. 111. MODIFICATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY
CREDIT.
(a) Increase in Credit Amount.--Section 30C of the Internal Revenue
Code of 1986 (relating to alternative fuel vehicle refueling property
credit) is amended--
(1) by striking ``30 percent'' in subsection (a) and
inserting ``50 percent'', and
(2) by striking ``$30,000'' in subsection (b)(1) and
inserting ``$50,000''.
(b) Credit Allowed for Electric Drive Transportation Property.--
Paragraph (1) of section 30C(c) of the Internal Revenue Code of 1986
(relating to qualified alternative fuel vehicle refueling property) is
amended by striking ``, but only with respect to any fuel'' and
inserting ``, except that in the case of property described in
paragraph (3)(A) thereof, only with respect to fuels''.
(c) Extension of Credit.--Subsection (g) section 30C of the
Internal Revenue Code of 1986 (relating to termination) is amended to
read as follows:
``(g) Termination of Availability of Credit.--This section shall
not apply to property placed in service after the earlier of December
31, 2014, or the date after which more than 20,000 alternative
refueling properties have been installed through use of this credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 112. ALTERNATIVE FUEL-RELATED STANDARDS.
(a) Definition of Secretary.--In this section, the term
``Secretary'' means the Secretary of Energy, acting--
(1) in consultation with--
(A) the Administrator of the Environmental
Protection Agency;
(B) the Administrator of the National Highway
Traffic Safety Administration;
(C) the Commissioner of the Federal Energy
Regulatory Commission;
(D) the head of the National Association of
Regulatory Utility Commissioners;
(E) the States;
(F) vehicle manufacturers;
(G) vehicle fuel providers; and
(H) appropriate safety organizations; and
(2) in cooperation with applicable voluntary standard-
setting organizations.
(b) Recommendations and Guidance.--Not later than 1 year after the
date of enactment of this Act, after providing notice and an
opportunity for public comment, the Secretary shall publish
recommendations and guidance relating to uniform national voluntary
standards for--
(1) alternative fuels;
(2) alternative fuel vehicles;
(3) equipment and systems relating to alternative fuels and
alternative fuel vehicles; and
(4) the safety, handling, refueling, and general use of the
items described in paragraphs (1) through (3).
(c) Review.--Not less frequently than once every 2 years, the
Secretary shall--
(1) review the recommendations and guidance published under
subsection (b); and
(2) modify the recommendations and guidance to reflect
applicable changes during the preceding 2 years relating to
fuel systems and related technologies.
SEC. 113. ACCELERATING CONVERSION TO ALTERNATIVE FUELS INFRASTRUCTURE.
(a) Findings.--Congress finds that--
(1) as of the date of enactment of this Act, an estimated
5,000,000 to 6,000,000 flexible-fuel vehicles are on roads in
the United States;
(2) based on the report of the Department of Energy
entitled ``Transportation Energy Date Book: Edition 25,'' only
740 refueling sites providing E-85 or biodiesel existed in the
United States in 2005, equivalent to less than 1 percent of
total United States refueling stations; and
(3) as the number of flexible-fuel vehicles on roads in the
United States increases, an increase in the availability of
alternative refueling infrastructure must occur in order to
enable the displacement of petroleum consumption.
(b) Goal.--Congress declares that it is the goal of the United
States to increase the accessibility of alternative fuels to retail
consumers, and to ensure that at least 10 percent of motor vehicle
refueling stations provide alternative fuels, by calendar year 2015.
(c) Alternative Fuel Infrastructure Initiative.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and every 2 years thereafter, the
Secretary of Energy, in coordination with the Secretary of
Transportation and the Administrator of the Environmental
Protection Agency, and in consultation with State and local
governments, shall--
(A) subject to subparagraph (B), develop and
implement measures to increase the accessibility of
alternative fuels to retail consumers to a level
sufficient to ensure that at least 10 percent of motor
vehicle refueling stations provide alternative fuels by
calendar year 2015; and
(B) if the Secretary of Energy determines that
there are insufficient legal authorities to achieve the
target for calendar year 2015 described in subparagraph
(A)--
(i) develop and implement measures to
increase the accessibility of alternative fuels
to retail consumers, to the maximum extent
practicable; and
(ii) submit to Congress by January 1, 2008,
proposed legislation or other recommendations
to achieve that target.
(2) Requirement for major integrated oil companies.--
(A) In general.--Each major integrated oil company
shall install and make available to retail consumers
alternative fuels refueling infrastructure at--
(i) not less than 50 percent of the motor
vehicle fueling stations owned by the company
by not later than December 31, 2010; and
(ii) 100 percent of the motor vehicle
refueling stations owned by the company by not
later than January 1, 2015.
(B) Means of compliance.--A major integrated oil
company shall meet the requirements of subparagraph (A)
by--
(i) installing alternative refueling
infrastructure at motor vehicle fueling
stations;
(ii) purchasing alternative refueling
infrastructure credits issued under
subparagraph (C); or
(iii) carrying out a combination of the
actions described in clauses (i) and (ii).
(C) Alternative refueling infrastructure credit
trading program.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall
establish a credit trading program--
(i) to permit a major integrated oil
company that does not install alternative
refueling infrastructure to comply with
subparagraphs (A) and (B) to achieve that
compliance by purchasing sufficient alternative
refueling infrastructure credits; and
(ii) under which the Secretary shall issue
alternative refueling infrastructure credits to
entities that install new alternative refueling
infrastructure.
(D) Interference with installation of alternative
refueling equipment or sale of alternative fuel.--
(i) In general.--It shall be an unfair or
deceptive act or practice in violation of
section 5 of the Federal Trade Commission Act
(15 U.S.C. 45) for any person to restrain trade
in alternative fuels by interfering with the
installation of alternative refueling
equipment, or the sale of alternative fuels, at
any motor vehicle refueling station in the
United States.
(ii) Enforcement.--The Federal Trade
Commission shall promulgate rules to enforce
this subparagraph.
(d) Enforcement.--
(1) Civil penalties.--Any major integrated oil company that
fails to meet the alternative refueling infrastructure
requirements of subsection (c) shall be subject to a civil
penalty.
(2) Amount and frequency of penalty.--A civil penalty
assessed under paragraph (1) shall be--
(A) in an amount equivalent to $1,000,000 for each
motor vehicle refueling station owned by the major
integrated oil company that fails to comply with
subsection (c); and
(B) assessed for each year during which the failure
to comply occurs.
(3) Mitigation or waiver.--The Secretary may mitigate or
waive a civil penalty under this subsection, after public
notice and comment, if the major integrated oil company--
(A) was unable to comply with subsection (c) for
reasons the Secretary determines to be outside of the
reasonable control of the major integrated oil company;
or
(B) demonstrates to the satisfaction of the
Secretary that insufficient alternative fueled vehicles
exist within the geographic region of a motor refueling
station to warrant the installation of the
infrastructure.
(4) Procedure for assessing penalty.--The Secretary shall
assess a civil penalty under this subsection in accordance with
the procedures prescribed by section 333(d) of the Energy
Policy and Conservation Act (42 U.S.C. 6303(d)).
(e) Infrastructure Pilot Program for Alternative Fuels.--
(1) In general.--The Secretary of Energy, in consultation
with the Secretary of Transportation and the Administrator of
the Environmental Protection Agency (referred to in this
subsection as the ``Secretary''), shall establish a competitive
grant pilot program (referred to in this subsection as the
``pilot program''), to be administered through the Clean Cities
Program of the Department of Energy, to provide not more than
10 geographically-dispersed project grants to State
governments, local governments, metropolitan transportation
authorities, or partnerships of those entities to carry out 1
or more projects for the purposes described in paragraph (2).
(2) Grant purposes.--A grant under this subsection shall be
used for the establishment of refueling infrastructure
corridors for alternative fuels along the National Highway
System, including--
(A) installation of infrastructure and equipment
necessary to ensure adequate distribution of qualified
alternative fuels within the corridor;
(B) installation of infrastructure and equipment
necessary to directly support vehicles powered by
qualified alternative fuels; and
(C) operation and maintenance of infrastructure and
equipment installed as part of a project funded by the
grant.
(3) Applications.--
(A) Requirements.--
(i) In general.--Subject to clause (ii),
not later than 90 days after the date of
enactment of this Act, the Secretary shall
issue requirements for use in applying for
grants under the pilot program.
(ii) Minimum requirements.--At a minimum,
the Secretary shall require that an application
for a grant under this subsection--
(I) be submitted by--
(aa) the head of a State or
local government or a
metropolitan transportation
authority, or any combination
of those entities; and
(bb) a registered
participant in the Clean Cities
Program of the Department of
Energy; and
(II) include--
(aa) a description of the
project proposed in the
application, including the ways
in which the project meets the
requirements of this
subsection;
(bb) an estimate of the
degree of use of the project,
including the estimated size of
fleet of alternative fueled
vehicles available within the
geographic region of the
corridor;
(cc) an estimate of the
potential petroleum displaced
and air pollution emissions
reduced as a result of the
project, and a plan to collect
and disseminate petroleum
displacement and environmental
data relating to the project to
be funded under the grant, over
the expected life of the
project;
(dd) a description of the
means by which the project will
be sustainable without Federal
assistance after the completion
of the term of the grant;
(ee) a complete description
of the costs of the project,
including acquisition,
construction, operation, and
maintenance costs over the
expected life of the project;
(ff) a description of which
costs of the project will be
supported by Federal assistance
under this subsection; and
(gg) documentation to the
satisfaction of the Secretary
that diesel fuel containing
sulfur at not more than 15
parts per million is available
for carrying out the project,
and a commitment by the
applicant to use that fuel in
carrying out the project.
(B) Partners.--An applicant under subparagraph (A)
may carry out a project under the pilot program in
partnership with public and private entities.
(4) Selection criteria.--In evaluating applications under
the pilot program, the Secretary shall--
(A) consider the experience of each applicant with
previous, similar projects; and
(B) give priority consideration to applications
that--
(i) are most likely to maximize
displacement of petroleum consumption and
environmental protection;
(ii) demonstrate the greatest commitment on
the part of the applicant to ensure funding for
the proposed project and the greatest
likelihood that the project will be maintained
or expanded after Federal assistance under this
subsection is completed;
(iii) represent a partnership of public and
private entities; and
(iv) exceed the minimum requirements of
paragraph (3)(A)(ii).
(5) Pilot project requirements.--
(A) Maximum amount.--The Secretary shall provide
not more than $20,000,000 in Federal assistance under
the pilot program to any applicant.
(B) Cost sharing.--The non-Federal share of the
cost of any activity relating to qualified alternative
fuel infrastructure development carried out using funds
from a grant under this subsection shall be not less
than 20 percent.
(C) Maximum period of grants.--The Secretary shall
not provide funds to any applicant under the pilot
program for more than 2 years.
(D) Deployment and distribution.--The Secretary
shall seek, to the maximum extent practicable, to
ensure a broad geographic distribution of project sites
funded by grants under this subsection.
(E) Transfer of information and knowledge.--The
Secretary shall establish mechanisms to ensure that the
information and knowledge gained by participants in the
pilot program are transferred among the pilot program
participants and to other interested parties, including
other applicants that submitted applications.
(6) Schedule.--
(A) Initial grants.--
(i) In general.--Not later than 90 days
after the date of enactment of this Act, the
Secretary shall publish in the Federal
Register, Commerce Business Daily, and such
other publications as the Secretary considers
to be appropriate, a notice and request for
applications to carry out projects under the
pilot program.
(ii) Deadline.--An application described in
clause (i) shall be submitted to the Secretary
by not later than 180 days after the date of
publication of the notice under that clause.
(iii) Initial selection.--Not later than 90
days after the date by which applications for
grants are due under clause (ii), the Secretary
shall select by competitive, peer-reviewed
proposal up to 5 applications for projects to
be awarded a grant under the pilot program.
(B) Additional grants.--
(i) In general.--Not later than 2 years
after the date of enactment of this Act, the
Secretary shall publish in the Federal
Register, Commerce Business Daily, and such
other publications as the Secretary considers
to be appropriate, a notice and request for
additional applications to carry out projects
under the pilot program that incorporate the
information and knowledge obtained through the
implementation of the first round of projects
authorized under the pilot program.
(ii) Deadline.--An application described in
clause (i) shall be submitted to the Secretary
by not later than 180 days after the date of
publication of the notice under that clause.
(iii) Initial selection.--Not later than 90
days after the date by which applications for
grants are due under clause (ii), the Secretary
shall select by competitive, peer-reviewed
proposal such additional applications for
projects to be awarded a grant under the pilot
program as the Secretary determines to be
appropriate.
(7) Reports to congress.--
(A) Initial report.--Not later than 60 days after
the date on which grants are awarded under this
subsection, the Secretary shall submit to Congress a
report containing--
(i) an identification of the grant
recipients and a description of the projects to
be funded under the pilot program;
(ii) an identification of other applicants
that submitted applications for the pilot
program but to which funding was not provided;
and
(iii) a description of the mechanisms used
by the Secretary to ensure that the information
and knowledge gained by participants in the
pilot program are transferred among the pilot
program participants and to other interested
parties, including other applicants that
submitted applications.
(B) Evaluation.--Not later than 2 years after the
date of enactment of this Act, and annually thereafter
until the termination of the pilot program, the
Secretary shall submit to Congress a report containing
an evaluation of the effectiveness of the pilot
program, including an assessment of the petroleum
displacement and benefits to the environment derived
from the projects included in the pilot program.
(8) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $200,000,000, to remain available until expended.
SEC. 114. LOW- INTEREST LOAN PROGRAM FOR FARMER-OWNED RETAIL DELIVERY
OF ALTERNATIVE FUELS.
(a) Purposes of Loans.--Section 312(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1942(a)) is amended--
(1) in paragraph (9)(B)(ii), by striking ``or'' at the end;
(2) in paragraph (10), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(11) building infrastructure, including pump stations,
for the retail delivery to consumers of any alternative
fuel.''.
(b) Program.--Subtitle B of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1941 et seq.) is amended by adding at the end
the following:
``SEC. 320. LOW-INTEREST LOAN PROGRAM FOR FARMER-OWNED RETAIL DELIVERY
OF ALTERNATIVE FUELS.
``(a) In General.--The Secretary shall establish a low-interest
loan program to assist farmer-owned alternative fuel producers
(including cooperatives and limited liability corporations) to develop
and build infrastructure, including pump stations, for the retail
delivery to consumers of any alternative fuel.
``(b) Terms.--
``(1) Interest rate.--A low-interest loan under this
section shall have a fixed interest rate of no more than 5
percent for each year.
``(2) Amortization.--The repayment of a loan under this
section shall be amortized over the expected life of the
infrastructure project that is being financed with the proceeds
of the loan.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
``(d) Regulations.--As soon as practicable after the date of
enactment of this Act, the Secretary of Agriculture shall promulgate
such regulations as are necessary to carry out the amendments made by
this section.''.
SEC. 115. EXTENSION OF BIODIESEL INCOME AND EXCISE TAX CREDITS.
(a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of
the Internal Revenue Code of 1986 are each amended by striking ``2008''
and inserting ``2014''.
(b) Effective Date.--The amendments made by this section shall take
effect on January 1, 2009.
SEC. 116. SMALL ETHANOL PRODUCER CREDIT EXPANDED FOR PRODUCERS OF
SUCROSE AND CELLULOSIC ETHANOL.
(a) In General.--Subparagraph (C) of section 40(b)(4) of the
Internal Revenue Code of 1986 (relating to small ethanol producer
credit) is amended by inserting ``(30,000,000 gallons for any sucrose
or cellulosic ethanol producer)'' after ``15,000,000 gallons''.
(b) Sucrose or Cellulosic Ethanol Producer.--Section 40(b)(4) of
the Internal Revenue Code of 1986 is amended by adding at the end the
following new subparagraph:
``(E) Sucrose or cellulosic ethanol producer.--
``(i) In general.--For purposes of this
paragraph, the term `sucrose or cellulosic
ethanol producer' means a producer of ethanol
using sucrose feedstock or cellulosic
feedstock.
``(ii) Sucrose feedstock.--For purposes of
clause (i), the term `sucrose feedstock' means
any raw sugar, refined sugar, or sugar
equivalents (including juice and extract). Such
term does not include any molasses, beet thick
juice, or other similar products as determined
by the Secretary.''.
(c) Conforming Amendments.--
(1) Section 40(g)(2) of the Internal Revenue Code of 1986
is amended by striking ``15,000,000 gallon limitation'' and
inserting ``15,000,000 and 30,000,000 gallon limitations''.
(2) Section 40(g)(5)(B) of such Code is amended by striking
``15,000,000 gallons'' and inserting ``the gallon limitation
under subsection (b)(4)(C)''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 117. INCENTIVES TO PRODUCE TRANSPORTATION FUELS FROM CELLULOSIC
BIOMASS.
(a) Fuel From Cellulosic Biomass.--
(1) In general.--The Secretary of Energy (referred to in
this section as the ``Secretary'') shall provide deployment
incentives under this subsection to encourage a variety of
projects to produce transportation fuel from cellulosic
biomass, relying on different feedstocks in different regions
of the United States.
(2) Project eligibility.--Incentives under this subsection
shall be provided on a competitive basis to projects that
produce fuel and that--
(A) meet United States fuel and emission
specifications;
(B) help diversify domestic transportation energy
supplies; and
(C) improve or maintain air, water, soil, and
habitat quality.
(3) Incentives.--Incentives under this subsection may
consist of--
(A) loan guarantees under section 1510 of the
Energy Policy Act of 2005 (42 U.S.C. 16501), subject to
section 1702 of that Act (22 U.S.C. 16512), for the
construction of production facilities and supporting
infrastructure; or
(B) production payments through a reverse auction
in accordance with paragraph (4).
(4) Reverse auction.--
(A) In general.--In providing incentives under this
subsection, the Secretary shall--
(i) issue regulations under which producers
of fuel from cellulosic biomass may bid for
production payments under paragraph (3)(B); and
(ii) solicit bids from producers of
different classes of transportation fuel, as
the Secretary determines to be appropriate.
(B) Requirement.--The rules under subparagraph (A)
shall require that incentives be provided to the
producers that submit the lowest bid (in terms of cents
per gallon) for each class of transportation fuel from
which the Secretary solicits a bid.
(b) Production Incentives for Cellulosic Biofuels.--Section 942(f)
of the Energy Policy Act of 2005 (42 U.S.C. 16251(f)) is amended by
striking ``$250,000,000'' and inserting ``$200,000,000 for each of
fiscal years 2007 through 2011''.
SEC. 118. ALTERNATIVE FUELS INVESTMENT BY MAJOR OIL COMPANIES AND
VEHICLE MANUFACTURERS.
(a) Study.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act and every 4 years thereafter, the
Comptroller General of the United States shall conduct a study
of the extent to which entities described in paragraph (2) have
invested in alternative fuels production, infrastructure, and
technology development to diversify the motor vehicle fuel and
vehicle options available to consumers in the United States.
(2) Described entities.--An entity described under this
paragraph is--
(A) a company that sells more than $500,000,000 of
crude oil, gasoline, or petroleum distillates in the
United States per year; and
(B) a manufacturer.
(b) Report.--At the conclusion of each study described in
subsection (a), the Comptroller General shall submit a report to
Congress that contains the results of such study.
Subtitle C--Flexible Fuel Vehicle Market Penetration
SEC. 121. CREDIT FOR PRODUCTION OF QUALIFIED FLEXIBLE FUEL VEHICLES.
(a) In General.--Subpart 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:
``SEC. 45N. PRODUCTION OF QUALIFIED FLEXIBLE FUEL MOTOR VEHICLES.
``(a) Allowance of Credit.--For purposes of section 38, in the case
of a manufacturer, the qualified flexible fuel motor vehicle production
credit determined under this section for any taxable year is an amount
equal to the incremental flexible fuel motor vehicle cost for each
qualified flexible fuel motor vehicle produced in the United States by
the manufacturer during the taxable year.
``(b) Incremental Flexible Fuel Motor Vehicle Cost.--With respect
to any qualified flexible fuel motor vehicle, the incremental flexible
fuel motor vehicle cost is an amount equal to the lesser of--
``(1) the excess of--
``(A) the cost of producing such qualified flexible
fuel motor vehicle, over
``(B) the cost of producing such motor vehicle if
such motor vehicle was not a qualified flexible fuel
motor vehicle, or
``(2) $150.
``(c) Qualified Flexible Fuel Motor Vehicle.--For purposes of this
section, the term `qualified flexible fuel motor vehicle' means a motor
vehicle (as defined under section 30(c)(2))--
``(1) the production of which is not required for the
manufacturer to meet--
``(A) the maximum credit allowable for vehicles
described in paragraph (2) in determining the fleet
average fuel economy requirements (as determined under
section 32904 of title 49, United States Code) of the
manufacturer for the model year ending in the taxable
year, or
``(B) the requirements of any other provision of
Federal law, and
``(2) which is designed so that the vehicle is propelled by
an engine which can use as a fuel a petroleum mixture of which
85 percent (or another percentage of not less than 70 percent,
as the Secretary may determine, by rule, to provide for
requirements relating to cold start, safety, or vehicle
functions) of the volume of consists of ethanol or biodiesel.
``(d) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Manufacturer.--The term `manufacturer' has the
meaning given such term in regulations prescribed by the
Administrator of the Environmental Protection Agency for
purposes of the administration of title II of the Clean Air Act
(42 U.S.C. 7521 et seq.).
``(2) Reduction in basis.--For purposes of this subtitle,
if a credit is allowed under this section for any expenditure
with respect to any property, the increase in the basis of such
property which would (but for this paragraph) result from such
expenditure shall be reduced by the amount of the credit so
allowed.
``(3) No double benefit.--The amount of any deduction or
credit allowable under this chapter (other than the credits
allowable under this section and section 30B) shall be reduced
by the amount of credit allowed under subsection (a) for such
vehicle for the taxable year.
``(4) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(e) Cross Reference.--For an election to claim certain minimum
tax credits in lieu of the credit determined under this section, see
section 53(e).''.
(b) Credit Allowed Against the Alternative Minimum Tax.--Section
38(c)(4)(B) of the Internal Revenue Code of 1986 (defining specified
credits) is amended by striking the period at the end of clause
(ii)(II) and inserting ``, and'', and by adding at the end the
following new clause:
``(iii) the credit determined under section
45N.''.
(c) Election to Use Additional Amt Credit.--Section 53 of the
Internal Revenue Code of 1986 (relating to credit for prior year
minimum tax liability) is amended by adding at the end the following
new subsection:
``(e) Additional Credit in Lieu of Flexible Fuel Motor Vehicle
Credit.--
``(1) In general.--In the case of a taxpayer making an
election under this subsection for a taxable year, the
limitation under subsection (c) for such taxable year shall be
increased by the amount of the credit determined under section
45N for such taxable year.
``(2) Election.--A taxpayer may make an election under this
subsection for any taxable year only if the taxpayer elects not
to take the credit under section 45N for such taxable year
pursuant to section 45N(c)(4). Any election under this
subsection may not be revoked except with the consent of the
Secretary.
``(3) Credit refundable.--The aggregate increase in the
credit under this section for any taxable year by reason of
this subsection shall for purposes of this title (other than
subsection (b)(2) of this section) be treated as a credit
allowed to the taxpayer under subpart C.''.
(d) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986 is
amended by striking ``and'' at the end of paragraph (29), by
striking the period at the end of paragraph (30) and inserting
``, plus'', and by adding at the end the following new
paragraph:
``(31) the qualified flexible fuel motor vehicle production
credit determined under section 45N(a).''.
(2) Section 1016(a) 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:
``(38) in the case of a facility with respect to which a
credit was allowed under section 45N, to the extent provided in
section 45N(d)(2).''
(e) Clerical Amendment.--The table of sections for subpart D 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. 45N. Production of qualified flexible fuel motor vehicles.''.
(f) Effective Date.--The amendments made by this section shall
apply to motor vehicles produced in model years ending after the date
of the enactment of this Act.
SEC. 122. ENSURING AVAILABILITY OF FLEXIBLE FUEL VEHICLES.
(a) Amendment.--
(1) In general.--Chapter 329 of title 49, United States
Code, is amended by inserting after section 32902 the
following:
``Sec. 32902A. Requirement to manufacture flexible fuel vehicles
``(a) In General.--For each model year, each manufacturer of new
motor vehicles (as defined under section 30(c)(2) of the Internal
Revenue Code of 1986) described in subsection (b) shall ensure that the
percentage of such vehicles manufactured in a particular model year
that are flexible fuel vehicles shall be not less than the percentage
set forth for that model year in the following table:
``If the model year is: The percentage of flexible fuel vehicles shall be:
2010............................................ 25 percent
2020............................................ 50 percent
``(b) Motor Vehicles Described.--A motor vehicle is described in
this subsection if the vehicle--
``(1) is capable of operating on gasoline or diesel fuel;
``(2) is distributed in interstate commerce for sale in the
United States; and
``(3) does not contain certain engines that the Secretary
of Transportation, in consultation with the Administrator of
the Environmental Protection Agency and the Secretary of
Energy, may temporarily exclude from the definition because it
is technologically infeasible for the engines to have flexible
fuel capability at any time during a period that the
Secretaries and the Administrator are engaged in an active
research program with the vehicle manufacturers to develop that
capability for the engines.''.
(2) Definition of flexible fuel vehicle.--Section 32901(8)
of title 49, United States Code, is amended by inserting ``or
`flexible fuel vehicle''' after ```dual fueled automobile'''.
(3) Clerical amendment.--The table of sections for chapter
329 of title 49, United States Code, is amended by inserting
after the item relating to section 32902 the following:
``Sec. 32902A. Requirements to manufacture flexible fuel vehicles.''.
(b) Rulemaking.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act, the Secretary of Transportation
shall issue regulations to carry out the amendments made by
subsection (a).
(2) Hardship exemption.--The regulations issued pursuant to
paragraph (1) shall include a process by which a manufacturer
may be exempted from the requirement under section 32902A(a)
upon demonstrating that such requirement would create a
substantial economic hardship for the manufacturer.
SEC. 123. INCREASING CONSUMER AWARENESS OF FLEXIBLE FUEL VEHICLES.
Section 32908 of title 49, United States Code, is amended by adding
at the end the following:
``(g) Increasing Consumer Awareness of Flexible Fuel Vehicles.--(1)
The Secretary of Transportation shall prescribe regulations that
require the manufacturer of vehicles distributed in interstate commerce
for sale in the United States--
``(A) to prominently display a permanent badge or emblem on
the quarter panel or tailgate of each such vehicle that
indicates such vehicle is capable of operating on alternative
fuel; and
``(B) to include information in the owner's manual of each
such vehicle information that describes--
``(i) the capability of the vehicle to operate
using alternative fuel; and
``(ii) the benefits of using alternative fuel,
including the renewable nature, the increased fuel
efficiency, and the environmental benefits of using
alternative fuel.
``(2) The Secretary of Transportation shall collaborate with
vehicle retailers to develop voluntary methods for providing
prospective purchasers of vehicles with information regarding the
benefits of using alternative fuel in vehicles, including--
``(A) the renewable nature of alternative fuel; and
``(B) the environmental benefits of using alternative
fuel.''.
Subtitle D--25 by '25 Renewable Energy and Fuels Vision
SEC. 131. PRESIDENTIAL AUTHORITY TO INCREASE RENEWABLE FUEL CONTENT OF
MOTOR FUELS AND CLEAN ENERGY SOURCES.
Section 211(o)(2)(B) of the Clean Air Act (42 U.S.C. 7545(o)(2)(B))
is amended by adding at the end the following:
``(v) Presidential authority.--
``(I) In general.--Beginning in
calendar year 2009, notwithstanding
clause (iv) and subject to clause (II),
after full consideration of the reports
required to be conducted and published
pursuant to subsections (b)(4) and (q),
the review required under in subclauses
(I) and (II) of clause (ii), the report
required under section 1352 of the
Energy Policy Act of 2005 (26 U.S.C. 41
note; 119 Stat. 1058), and such other
information as is appropriate and
relevant, the President may promulgate
rules in accordance with this
subsection--
``(aa) to gradually
increase the proportion that--
``(AA) the number
of gallons of renewable
fuel sold or introduced
into commerce in
calendar year 2013 and
subsequent calendar
years; bears to
``(BB) the total
number of gallons of
gasoline sold or
introduced into
commerce in each of
those calendar years;
and
``(bb) to increase the
minimum quantity of renewable
fuel derived from cellulosic
biomass above the 250,000,000-
gallon level under clause
(iii).
``(II) Limitations.--The rules
promulgated under subclause (I) shall
not--
``(aa) except at the
request of the Governor of a
State, apply to fuel refiners,
blenders, and importers in a
State in which more than 25
percent of the energy projected
to be consumed in calendar year
2025 is expected to or will be
derived from 1 or more of--
``(AA) renewable
fuels; and
``(BB) renewable
electric energy
generated at a facility
(including a
distributed generation
facility) from solar or
wind resources,
geothermal energy,
ocean or wave energy,
or biomass (as defined
in section 203(b) of
the Energy Policy Act
of 2005 (42 U.S.C.
15852(b))) and
renewable electric
energy generated at a
facility (including a
distributed generation
facility) from
hydroelectric resources
in existence before
January 1, 2006;
``(bb) be applied in a
manner that would require that
the total amount of renewable
fuels and renewable energy
consumed in the United States
exceed 25 percent of the total
amount of energy consumed in
calendar year 2025; or
``(cc) be applied in a
manner that would harm the air
quality of any State or
significantly increase the cost
of motor vehicle fuel in a
State or region.''.
Subtitle E--Nationwide Media Campaign to Encourage Energy Efficiency
and Conservation
SEC. 141. NATIONWIDE MEDIA CAMPAIGN TO ENCOURAGE ENERGY EFFICIENCY AND
CONSERVATION.
(a) In General.--The Secretary of Energy, acting through the
Assistant Secretary for Energy Efficiency and Renewable Energy
(referred to in this section as the ``Secretary''), shall develop and
conduct a national media campaign for the purpose of decreasing oil
consumption in the United States over the next decade.
(b) Contract With Entity.--The Secretary shall carry out subsection
(a) directly or through--
(1) competitively bid contracts with 1 or more nationally
recognized media firms for the development and distribution of
monthly television, radio, and newspaper public service
announcements; or
(2) collective agreements with 1 or more nationally
recognized institutes, businesses, or nonprofit organizations
for the funding, development, and distribution of monthly
television, radio, and newspaper public service announcements.
(c) Use of Funds.--
(1) In general.--Amounts made available to carry out this
section shall be used for the following:
(A) Advertising costs.--
(i) The purchase of media time and space.
(ii) Creative and talent costs.
(iii) Testing and evaluation of
advertising.
(iv) Evaluation of the effectiveness of the
media campaign.
(v) The negotiated fees for the winning
bidder on requests from proposals issued either
by the Secretary for purposes otherwise
authorized in this section.
(vi) Entertainment industry outreach,
interactive outreach, media projects and
activities, public information, news media
outreach, and corporate sponsorship and
participation.
(B) Administrative costs.--Operational and
management expenses.
(2) Limitations.--In carrying out this section, the
Secretary shall allocate not less than 85 percent of funds made
available under subsection (e) for each fiscal year for the
advertising functions specified under paragraph (1)(A).
(d) Reports.--The Secretary shall annually submit to Congress a
report that describes--
(1) the strategy of the national media campaign and whether
specific objectives of the campaign were accomplished,
including--
(A) determinations concerning the rate of change of
oil consumption, in both absolute and per capita terms;
and
(B) an evaluation that enables consideration
whether the media campaign contributed to reduction of
oil consumption;
(2) steps taken to ensure that the national media campaign
operates in an effective and efficient manner consistent with
the overall strategy and focus of the campaign;
(3) plans to purchase advertising time and space;
(4) policies and practices implemented to ensure that
Federal funds are used responsibly to purchase advertising time
and space and eliminate the potential for waste, fraud, and
abuse; and
(5) all contracts or cooperative agreements entered into
with a corporation, partnership, or individual working on
behalf of the national media campaign.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2006 through 2010.
Subtitle F--Increasing Transit Use and Alternative Transportation Modes
SEC. 151. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS.
(a) Definitions.--In this section:
(1) Transit-oriented development corridor.--The term
``Transit-Oriented Development Corridor'' or ``TODC'' means a
geographic area designated by the Secretary under subsection
(b).
(2) Other terms.--The terms ``fixed guide way'', ``local
governmental authority'', ``mass transportation'',
``Secretary'', ``State'', and ``urbanized area'' have the
meanings given the terms in section 5302 of title 49, United
States Code.
(b) Transit-Oriented Development Corridors.--
(1) In general.--The Secretary shall develop and carry out
a program to designate geographic areas in urbanized areas as
Transit-Oriented Development Corridors.
(2) Criteria.--An area designated as a TODC under paragraph
(1) shall include rights-of-way for fixed guide way mass
transportation facilities (including commercial development of
facilities that have a physical and functional connection with
each facility).
(3) Number of todcs.--In consultation with State
transportation departments and metropolitan planning
organizations, the Secretary shall designate--
(A) not fewer than 10 TODCs by December 31, 2015;
and
(B) not fewer than 20 TODCs by December 31, 2025.
(4) Transit grants.--
(A) In general.--The Secretary make grants to
eligible states and local governmental authorities to
pay the Federal share of the cost of designating
geographic areas in urbanized areas as TODCs.
(B) Application.--Each eligible State or local
governmental authority that desires to receive a grant
under this paragraph shall submit an application to the
Secretary, at such time, in such manner, and
accompanied by such additional information as the
Secretary may reasonably require.
(C) Labor standards.--Subchapter IV of chapter 31
of title 40, United States Code shall apply to projects
that receive funding under this section.
(D) Federal share.--The Federal share of the cost
of a project under this subsection shall be 50 percent.
(c) TODC Research and Development.--To support effective deployment
of grants and incentives under this section, the Secretary shall
establish a TODC research and development program to conduct research
on the best practices and performance criteria for TODCs.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for each of fiscal
years 2007 through 2012.
SEC. 152. INCREASING TRANSIT UTILIZATION INCENTIVES.
(a) In General.--Section 132(f)(2)(A) of the Internal Revenue Code
of 1986 (relating to limitation on exclusion) is amended by striking
``$100'' and inserting ``$200''.
(b) Inflation Adjustment.--The second sentence of section
132(f)(6)(A) of the Internal Revenue Code of 1986 (relating to
inflation adjustment) is amended--
(1) by striking ``2002'' and inserting ``2006'', and
(2) by striking ``2001'' and inserting ``2005''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
SEC. 153. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO BICYCLE
COMMUTERS.
(a) In General.--Paragraph (1) of section 132(f) of the Internal
Revenue Code of 1986 (relating to general rule for qualified
transportation fringe) is amended by adding at the end the following:
``(D) Bicycle commuting allowance.''.
(b) Bicycle Commuting Allowance Defined.--Paragraph (5) of section
132(f) of the Internal Revenue Code of 1986 (relating to definitions)
is amended by adding at the end the following:
``(F) Bicycle commuting allowance.--The term
`bicycle commuting allowance' means an amount provided
to an employee for transportation on a bicycle if such
transportation is in connection with travel between the
employee's residence and place of employment.''.
(c) Limitation on Exclusion.--Paragraph (2) of section 132(f) of
the Internal Revenue Code of 1986 is amended by striking
``subparagraphs (A) and (B)'' and inserting ``subparagraphs (A), (B),
and (D)''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
TITLE II--ENSURING NEAR-TERM ENERGY AFFORDABILITY AND EMPOWERING
AMERICAN FAMILIES
Subtitle A--Making Gas Price Gouging a Federal Crime
SEC. 201. UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN COMMERCE RELATED TO
GASOLINE AND PETROLEUM DISTILLATES.
(a) Sales to Consumers at Unconscionable Price.--
(1) In general.--It is unlawful for any person to sell
crude oil, gasoline, or petroleum distillates at a price that--
(A) is unconscionably excessive; or
(B) indicates the seller is taking unfair advantage
of the circumstances to increase prices unreasonably.
(2) Factors considered.--In determining whether a violation
of paragraph (1) has occurred, there shall be taken into
account, among other factors, whether--
(A) the amount charged represents a gross disparity
between the price of the crude oil, gasoline, or
petroleum distillate sold and the price at which it was
offered for sale in the usual course of the seller's
business immediately prior to the energy emergency; or
(B) the amount charged grossly exceeds the price at
which the same or similar crude oil, gasoline, or
petroleum distillate was readily obtainable by other
purchasers.
(3) Mitigating factors.--In determining whether a violation
of paragraph (1) has occurred, there also shall be taken into
account, among other factors, the price that would reasonably
equate supply and demand in a competitive and freely
functioning market and whether the price at which the crude
oil, gasoline, or petroleum distillate was sold reasonably
reflects additional costs, not within the control of the
seller, that were paid or incurred by the seller.
(b) False Pricing Information.--It is unlawful for any person to
report information related to the wholesale price of crude oil,
gasoline, or petroleum distillates to the Federal Trade Commission if--
(1) that person knew, or reasonably should have known, the
information to be false or misleading;
(2) the information was required by law to be reported; and
(3) the person intended the false or misleading data to
affect data compiled by that department or agency for
statistical or analytical purposes with respect to the market
for crude oil, gasoline, or petroleum distillates.
(c) Market Manipulation.--It is unlawful for any person, directly
or indirectly, to use or employ, in connection with the purchase or
sale of crude oil, gasoline, or petroleum distillates at wholesale, any
manipulative or deceptive device or contrivance, in contravention of
such rules and regulations as the Commission may prescribe as necessary
or appropriate in the public interest or for the protection of United
States citizens.
SEC. 202. ENFORCEMENT UNDER FEDERAL TRADE COMMISSION ACT.
(a) Enforcement by Commission.--This subtitle shall be enforced by
the Federal Trade Commission. In enforcing section 201(a), the
Commission shall give priority to enforcement actions concerning
companies with total United States wholesale or retail sales of crude
oil, gasoline, and petroleum distillates in excess of $500,000,000 per
year but shall not exclude enforcement actions against companies with
total United States wholesale sales of $500,000,000 or less per year.
(b) Violation Is Unfair or Deceptive Act or Practice.--The
violation of any provision of this Act shall be treated as an unfair or
deceptive act or practice proscribed under a rule issued under section
18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C.
57a(a)(1)(B)).
SEC. 203. ENFORCEMENT AT RETAIL LEVEL BY STATE ATTORNEYS GENERAL.
(a) In General.--A State, as parens patriae, may bring a civil
action on behalf of its residents in an appropriate district court of
the United States to enforce the provisions of section 201(a), or to
impose the civil penalties authorized by section 204 for violations of
section 201(a), whenever the attorney general of the State has reason
to believe that the interests of the residents of the State have been
or are being threatened or adversely affected by a person engaged in
retail sales of gasoline or petroleum distillates to consumers for
purposes other than resale that violates this subtitle or a regulation
under this subtitle.
(b) Notice.--The State shall serve written notice to the Commission
of any civil action under subsection (a) prior to initiating such civil
action. The notice shall include a copy of the complaint to be filed to
initiate such civil action, except that if it is not feasible for the
State to provide such prior notice, the State shall provide such notice
immediately upon instituting such civil action.
(c) Authority To Intervene.--Upon receiving the notice required by
subsection (b), the Commission may intervene in such civil action and
upon intervening--
(1) be heard on all matters arising in such civil action;
and
(2) file petitions for appeal of a decision in such civil
action.
(d) Construction.--For purposes of bringing any civil action under
subsection (a), nothing in this section shall prevent the attorney
general of a State from exercising the powers conferred on the attorney
general by the laws of such State to conduct investigations or to
administer oaths or affirmations or to compel the attendance of
witnesses or the production of documentary and other evidence.
(e) Venue; Service of Process.--In a civil action brought under
subsection (a)--
(1) the venue shall be a judicial district in which--
(A) the defendant operates;
(B) the defendant was authorized to do business; or
(C) where the defendant in the civil action is
found;
(2) process may be served without regard to the territorial
limits of the district or of the State in which the civil
action is instituted; and
(3) a person who participated with the defendant in an
alleged violation that is being litigated in the civil action
may be joined in the civil action without regard to the
residence of the person.
(f) Limitation on State Action While Federal Action Is Pending.--If
the Commission has instituted a civil action or an administrative
action for violation of this subtitle, no State attorney general, or
official or agency of a State, may bring an action under this section
during the pendency of that action against any defendant named in the
complaint of the Commission or the other agency for any violation of
this subtitle alleged in the complaint.
(g) Enforcement of State Law.--Nothing contained in this section
shall prohibit an authorized State official from proceeding in State
court to enforce a civil or criminal statute of such State.
SEC. 204. PENALTIES.
(a) Civil Penalty.--
(1) In general.--In addition to any penalty applicable
under the Federal Trade Commission Act--
(A) any person who violates section 201(b) or
201(c) is punishable by a civil penalty of not more
than $1,000,000; and
(B) any person who violates section 201(a) is
punishable by a civil penalty of not more than
$3,000,000.
(2) Method of assessment.--The penalties provided by
paragraph (1) shall be assessed in the same manner as civil
penalties imposed under section 5 of the Federal Trade
Commission Act (15 U.S.C. 45).
(3) Multiple offenses; mitigating factors.--In assessing
the penalty provided by subsection (a)--
(A) each day of a continuing violation shall be
considered a separate violation; and
(B) the Commission shall take into consideration
the seriousness of the violation and the efforts of the
person committing the violation to remedy the harm
caused by the violation in a timely manner.
(b) Criminal Penalty.--Violation of section 201(a) of this subtitle
is punishable by a fine of not more than $1,000,000, imprisonment for
not more than 5 years, or both.
SEC. 205. EFFECT ON OTHER LAWS.
(a) Other Authority of Commission.--Nothing in this subtitle shall
be construed to limit or affect in any way the Commission's authority
to bring enforcement actions or take any other measure under the
Federal Trade Commission Act (15 U.S.C. 41 et seq.) or any other
provision of law.
(b) State Law.--Nothing in this subtitle preempts any State law.
Subtitle B--Strengthening Anti-Trust Enforcement in the Oil and Gas
Industry
SEC. 211. PROHIBITION ON UNILATERAL WITHHOLDING.
The Clayton Act (15 U.S.C. 12 et seq.) is amended--
(1) by redesignating section 28 as section 29; and
(2) by inserting after section 27 the following:
``SEC. 28. OIL AND NATURAL GAS.
``(a) In General.--Except as provided in subsection (b), it shall
be unlawful for any person to refuse to sell, or to export or divert,
existing supplies of petroleum, gasoline, or other fuel derived from
petroleum, or natural gas with the primary intention of increasing
prices or creating a shortage in a geographic market.
``(b) Considerations.--In determining whether a person who has
refused to sell, or exported or diverted, existing supplies of
petroleum, gasoline, or other fuel derived from petroleum or natural
gas or curtailed production of such new supplies, has done so with the
intent of increasing prices or creating a shortage in a geographic
market under subsection (a), the court shall consider whether--
``(1) the cost of acquiring, producing, refining,
processing, marketing, selling, or otherwise making such
products available has increased; and
``(2) the price obtained from exporting or diverting
existing supplies is greater than the price obtained where the
existing supplies are located or are intended to be shipped.
``(c) Shift of Burden of Proof.--If the Commission or the Attorney
General makes a prima facie case of withholding supply against a
refiner, distributor, or retailer under this section--
``(1) the burden of proof to show the withholding was not
done to raise prices shall shift to the refiner, distributor,
or retailer; and
``(2) a refiner, distributor, or retailer may rebut the
prima facie case by showing that the action that is the basis
of the alleged violation was taken in a good faith effort to
respond to competition or for another legitimate business
reason.''.
SEC. 212. MODIFICATION OF MERGER STANDARD IN CLAYTON ACT.
Under section 7 of the Clayton Act, a merger in the oil or gas
industry shall only be allowed if it can be proven that the new entity
would not appreciably diminish competition.
SEC. 213. STUDY BY THE GOVERNMENT ACCOUNTABILITY OFFICE.
(a) Definition.--In this section, the term ``covered consent
decree'' means a consent decree--
(1) to which either the Federal Trade Commission or the
Department of Justice is a party;
(2) that was entered by the district court not earlier than
10 years before the date of enactment of this Act;
(3) that required divestitures; and
(4) that involved a person engaged in the business of
exploring for, producing, refining, or otherwise processing,
storing, marketing, selling, or otherwise making available
petroleum, gasoline or other fuel derived from petroleum, or
natural gas.
(b) Requirement for a Study.--Not later than 180 days after the
date of enactment of this Act, the Comptroller General of the United
States shall conduct a study evaluating the effectiveness of
divestitures required under covered consent decrees.
(c) Requirement for a Report.--Not later than 180 days after the
date of enactment of this Act, the Comptroller General shall submit a
report to Congress, the Federal Trade Commission, and the Department of
Justice regarding the findings of the study conducted under subsection
(b).
(d) Federal Agency Consideration.--Upon receipt of the report
required by subsection (c), the Attorney General or the Chairman of the
Federal Trade Commission, as appropriate, shall consider whether any
additional action is required to restore competition or prevent a
substantial lessening of competition occurring as a result of any
transaction that was the subject of the study conducted under
subsection (b).
SEC. 214. JOINT FEDERAL AND STATE TASK FORCE.
The Attorney General and the Chairman of the Federal Trade
Commission shall establish a joint Federal-State task force, which
shall include the attorney general of any State that chooses to
participate, to investigate information sharing (including through the
use of exchange agreements and commercial information services) among
persons in the business of exploring for, producing, refining, or
otherwise processing, storing, marketing, selling, or otherwise making
available petroleum, gasoline or other fuel derived from petroleum, or
natural gas (including any person about which the Energy Information
Administration collects financial and operating data as part of its
Financial Reporting System).
Subtitle C--Improving Oversight of Oil and Gas Market Speculation
SEC. 221. SHORT TITLE.
This subtitle may be cited as the ``Oil and Gas Traders Oversight
Act of 2006''.
SEC. 222. REPORTING AND RECORDKEEPING FOR POSITIONS INVOLVING ENERGY
COMMODITIES.
(a) In General.--Section 2(h) of the Commodity Exchange Act (7
U.S.C. 2(h)) is amended by adding at the end the following:
``(7) Reporting and recordkeeping for positions involving
energy commodities.--
``(A) Definitions.--In this paragraph:
``(i) Domestic terminal.--The term
`domestic terminal' means a technology,
software, or other means of providing
electronic access within the United States to a
contract, agreement, or transaction traded on a
foreign board of trade.
``(ii) Energy commodity.--The term `energy
commodity' means a commodity or the derivatives
of a commodity that is used primarily as a
source of energy, including--
``(I) coal;
``(II) crude oil;
``(III) gasoline;
``(IV) heating oil;
``(V) diesel fuel;
``(VI) electricity;
``(VII) propane; and
``(VIII) natural gas.
``(iii) Reportable contract.--The term
`reportable contract' means--
``(I) a contract, agreement, or
transaction involving an energy
commodity , executed on an electronic
trading facility, or
``(II) a contract, agreement, or
transaction for future delivery
involving an energy commodity for which
the underlying energy commodity has a
physical delivery point within the
United States and that is executed
through a domestic terminal.
``(B) Record keeping.--The Commission, by rule,
shall require any person holding, maintaining, or
controlling any position in any reportable contract
under this section--
``(i) to maintain such records as directed
by the Commission for a period of 5 years, or
longer, if directed by the Commission; and
``(ii) to provide such records upon request
to the Commission or the Department of Justice.
``(C) Reporting of positions involving energy
commodities.--The Commission shall prescribe rules
requiring such regular or continuous reporting of
positions in a reportable contract in accordance with
such requirements regarding size limits for reportable
positions and the form, timing, and manner of filing
such reports under this paragraph, as the Commission
shall determine.
``(D) Other rules not affected.--
``(i) In general.--Except as provided in
clause (ii), this paragraph does not prohibit
or impair the adoption by any board of trade
licensed, designated, or registered by the
Commission of any bylaw, rule, regulation, or
resolution requiring reports of positions in
any agreement, contract, or transaction made in
connection with a contract of sale for future
delivery of an energy commodity (including such
a contract of sale), including any bylaw, rule,
regulation, or resolution pertaining to filing
or recordkeeping, which may be held by any
person subject to the rules of the board of
trade.
``(ii) Exception.--Any bylaw, rule,
regulation, or resolution established by a
board of trade described in clause (i) shall
not be inconsistent with any requirement
prescribed by the Commission under this
paragraph.
``(E) Contract, agreement, or transaction for
future delivery.--Notwithstanding sections 4(b) and 4a,
the Commission shall subject a contract, agreement, or
transaction for future delivery in an energy commodity
to the requirements established by this paragraph.''.
(b) Conforming Amendments.--Section 4a(e) of the Commodity Exchange
Act (7 U.S.C. 6a(e)) is amended--
(1) in the first sentence--
(A) by inserting ``or by an electronic trading
facility operating in reliance on section 2(h)(3)''
after ``registered by the Commission''; and
(B) by inserting ``electronic trading facility,''
before ``or such board of trade''; and
(2) in the second sentence, by inserting ``or by an
electronic trading facility operating in reliance on section
2(h)(3)'' after ``registered by the Commission''.
Subtitle D--Low Income Energy Price Relief
SEC. 231. ADJUSTMENT OF STANDARD UTILITY ALLOWANCE UNDER THE FOOD STAMP
PROGRAM FOR HIGH ENERGY COSTS.
Section 5(e)(6)(C) of the Food Stamp Act of 1977 (7 U.S.C.
2014(e)(6)(C)) is amended by adding at the end the following:
``(v) Energy cost increases.--If the Energy
Information Administration projects that energy
costs for the average household in the United
States will increase by more than 20 percent
during the winter heating months (November
through April) of the fiscal year, the amount
of a standard utility allowance used by a State
for all or part of the fiscal year under this
subparagraph may be adjusted to reflect the
amount of the projected increase in energy
costs.''.
SEC. 232. PUBLIC HOUSING ENERGY COST ASSISTANCE.
(a) Utility Allowance.--Section 8(o)(1)(D) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(D)) is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(i) In general.--Except as provided under
clause (ii), the Secretary''; and
(2) by adding at the end the following:
``(ii) Exception for increases in utility
allowances.--The payment standard established
under subparagraph (B) may exceed 110 percent
of the fair market rental established under
subsection (c) for the same size of dwelling
unit in the same market area without prior
approval by the Secretary, if a public housing
agency determines that an increase in the
utility allowance of such agency, in
combination with prevailing rents, requires
such limit to be exceeded.''.
(b) Annual Adjustment Factor.--Section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended by adding at the
end the following:
``(21) Annual adjustment factor for utility costs.--
Beginning on October 1, 2006, and each October 1 thereafter,
the Secretary, in consultation with the Secretary of Energy,
shall, based on the most recent data available, adjust the
utility cost component of the annual adjustment factors used to
calculate funding for public housing agencies under this
section.''.
(c) Report.--Section 8(o)(1)(E) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(1)(E)) is amended--
(1) in clause (i), by striking ``; and'' and inserting a
semicolon;
(2) in clause (ii), by striking the period and inserting a
semicolon; and
(3) by adding at the end the following:
``(iii) shall submit a report, on an annual
basis, to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives on the number and percentage of
families--
``(I) in each public housing agency
receiving assistance under this
subsection that pay more than 30
percent of their income for rent and
utility costs; and
``(II) in all public housing
agencies receiving assistance under
this subsection that pay more than 30
percent of their income for rent and
utility costs; and
``(iv) shall publish in the Federal
Register and make available on the Internet
website maintained by the Department of Housing
and Urban Development the reports required
under clause (iii).''.
SEC. 233. REFUNDABLE TAX CREDIT FOR LOW-INCOME RESIDENTIAL ENERGY COST
ASSISTANCE.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by redesignating section 36 as section 37 and by inserting
after section 35 the following new section:
``SEC. 36. CREDIT FOR RESIDENTIAL ENERGY COST ASSISTANCE.
``(a) General Rule.--In the case of any individual, there shall be
allowed as a credit against the tax imposed by this subtitle for the
taxable year an amount equal to the lesser of--
``(1) 20 percent of the qualified residential energy costs
of the taxpayer during such taxable year, or
``(2) $200 ($300 in the case of a joint return).
``(b) Income Limitation.--
``(1) In general.--The amount allowable as a credit under
subsection (a) for any taxable year shall be reduced (but not
below zero) by an amount which bears the same ratio to the
amount so allowable (determined without regard to this
paragraph) as--
``(A) the amount (if any) by which the taxpayer's
adjusted gross income exceeds $35,000 ($70,000 in the
case of a joint return), bears to
``(B) $10,000.
``(2) Determination of adjusted gross income.--For purposes
of paragraph (1), adjusted gross income shall be determined
without regard to sections 911, 931, and 933.
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Qualified residential energy costs.--The term
`qualified residential energy costs' means, with respect to any
principal residence of the taxpayer located in the United
States, the costs paid or incurred by the taxpayer for the
period beginning after December 31, 2005, and ending before
January 1, 2008, for any energy utility and home energy fuel.
``(2) Reduction for grants.--The amount of qualified
residential energy costs which may be taken into account with
respect to such period shall be reduced by any amount received
by the taxpayer during such period for any residential energy
cost under the Low-Income Home Energy Assistance program under
title XXVI of the Omnibus Budget Reconciliation Act of 1981 (42
U.S.C. 8621 et seq.).
``(3) Principal residence.--The term `principal residence'
has the same meaning as in section 121, except that--
``(A) no ownership requirement shall be imposed,
and
``(B) the principal residence must be used by the
taxpayer as the taxpayer's residence during the taxable
year.
``(4) Certain persons not eligible.--This section shall not
apply to any individual with respect to whom a deduction under
section 151 is allowable to another taxpayer for a taxable year
beginning in the calendar year in which such individual's
taxable year begins.
``(5) Homeowners associations.--The application of this
section to homeowners associations (as defined in section
528(c)(1)) or members of such associations, and tenant-
stockholders in cooperative housing corporations (as defined in
section 216), shall be allowed by allocation, apportionment, or
otherwise, to the individuals paying, directly or indirectly,
for the qualified residential energy cost so incurred.
``(d) Regulations.--The Secretary may prescribe such regulations
and other guidance as may be necessary or appropriate to carry out this
section.''.
(b) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by striking ``or'' before ``enacted'' and by inserting
before the period at the end ``, or from section 36 of such
Code''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by striking the item relating to section 35 and by
adding at the end the following new items:
``Sec. 36. Credit for residential energy cost assistance.
``Sec. 37. Overpayments of tax.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
Subtitle E--Small Business and Agricultural Producers Energy Emergency
Relief Program
SEC. 241. ENERGY EMERGENCY DISASTER RELIEF LOANS TO SMALL BUSINESS AND
AGRICULTURAL PRODUCERS.
(a) Definitions.--In this section--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``Secretary'' means the Secretary of
Agriculture; and
(3) the term ``small business concern'' has the same
meaning as in section 3 of the Small Business Act (15 U.S.C.
632).
(b) Small Business Producer Energy Emergency Disaster Loan
Program.--
(1) Disaster loan authority.--Section 7(b) of the Small
Business Act (15 U.S.C. 636(b)) is amended by inserting
immediately after paragraph (3) the following:
``(4) Energy disaster loans.--
``(A) Definitions.--For purposes of this
paragraph--
``(i) the term `base price index' means the
moving average of the closing unit price on the
New York Mercantile Exchange for heating oil,
natural gas, gasoline, or propane for the 10
days that correspond to the trading days
described in clause (ii) in each of the most
recent 2 preceding years;
``(ii) the term `current price index' means
the moving average of the closing unit price on
the New York Mercantile Exchange, for the 10
most recent trading days, for contracts to
purchase heating oil, natural gas, gasoline, or
propane during the subsequent calendar month,
commonly known as the `front month'; and
``(iii) the term `significant increase'
means--
``(I) with respect to the price of
heating oil, natural gas, gasoline, or
propane, any time that the current
price index exceeds the base price
index by not less than 40 percent; and
``(II) with respect to the price of
kerosene, any increase which the
Administrator, in consultation with the
Secretary of Energy, determines to be
significant.
``(B) Loan authority.--
``(i) In general.--The Administration may
make such loans, either directly or in
cooperation with banks or other lending
institutions through agreements to participate
on an immediate or deferred basis, to assist a
small business concern described in clause
(ii).
``(ii) Criteria.--A small business concern
described in this clause is a small business
concern that has suffered or that is likely to
suffer substantial economic injury on or after
January 1, 2005, as the result of a significant
increase in the price of heating oil, natural
gas, gasoline, propane, or kerosene occurring
on or after January 1, 2005.
``(C) Interest rate.--Any loan or guarantee
extended pursuant to this paragraph shall be made at
the same interest rate as economic injury loans under
paragraph (2).
``(D) Maximum amount.--No loan may be made under
this paragraph, either directly or in cooperation with
banks or other lending institutions through agreements
to participate on an immediate or deferred basis, if
the total amount outstanding and committed to the
borrower under this subsection would exceed $1,500,000,
unless such borrower constitutes a major source of
employment in its surrounding area, as determined by
the Administrator, in which case the Administrator, in
the discretion of the Administrator, may waive the
$1,500,000 limitation.
``(E) Disaster declaration.--For purposes of
assistance under this paragraph--
``(i) a declaration of a disaster area
based on conditions specified in this paragraph
shall be required, and shall be made by the
President or the Administrator; or
``(ii) if no declaration has been made
pursuant to clause (i), the Governor of a State
in which a significant increase in the price of
heating oil, natural gas, gasoline, propane, or
kerosene has occurred may certify to the
Administration that small business concerns
have suffered economic injury as a result of
such increase and are in need of financial
assistance which is not otherwise available on
reasonable terms in that State, and upon
receipt of such certification, the
Administration may make such loans as would
have been available under this paragraph if a
disaster declaration had been issued.
``(F) Conversion.--Notwithstanding any other
provision of law, loans made under this paragraph may
be used by a small business concern described in
subparagraph (B) to convert from the use of heating
oil, natural gas, gasoline, propane, or kerosene to a
renewable or alternative energy source, including
agriculture and urban waste, geothermal energy,
cogeneration, solar energy, wind energy, or fuel
cells.''.
(2) Conforming amendments.--Section 3(k) of the Small
Business Act (15 U.S.C. 632(k)) is amended--
(A) by inserting ``, significant increase in the
price of heating oil, natural gas, gasoline, propane,
or kerosene'' after ``civil disorders''; and
(B) by inserting ``other'' before ``economic''.
(c) Agricultural Producer Emergency Loans.--
(1) In general.--Section 321(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1961(a)) is amended--
(A) in the first sentence--
(i) by striking ``operations have'' and
inserting ``operations (i) have''; and
(ii) by inserting before ``: Provided,''
the following: ``, or (ii)(I) are owned or
operated by such an applicant that is also a
small business concern (as defined in section 3
of the Small Business Act (15 U.S.C. 632)), and
(II) have suffered or are likely to suffer
substantial economic injury on or after August
24, 2005, as the result of a significant
increase in energy costs or input costs from
energy sources occurring on or after August 24,
2005, in connection with an energy emergency
declared by the President or the Secretary'';
(B) in the third sentence, by inserting before the
period at the end the following: ``or by an energy
emergency declared by the President or the Secretary'';
and
(C) in the fourth sentence--
(i) by inserting ``or energy emergency''
after ``natural disaster'' each place that term
appears; and
(ii) by inserting ``or declaration'' after
``emergency designation''.
(2) Funding.--Funds available on the date of enactment of
this Act for emergency loans under subtitle C of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et
seq.) shall be available to carry out the amendments made by
paragraph (1) to meet the needs resulting from natural
disasters.
(d) Guidelines and Rulemaking.--
(1) Guidelines.--Not later than 30 days after the date of
enactment of this Act, the Administrator and the Secretary
shall each issue guidelines to carry out subsections (b) and
(c), respectively, and the amendments made thereby, which
guidelines shall become effective on the date of their
issuance.
(2) Rulemaking.--Not later than 30 days after the date of
enactment of this Act, the Administrator, after consultation
with the Secretary of Energy, shall promulgate regulations
specifying the method for determining a significant increase in
the price of kerosene under section 7(b)(4)(A)(iii)(II) of the
Small Business Act, as added by this section.
(e) Reports.--
(1) Small business administration.--Not later than 12
months after the date on which the Administrator issues
guidelines under subsection (d)(1), and annually thereafter,
until the date that is 12 months after the end of the effective
period of section 7(b)(4) of the Small Business Act, as added
by this section, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of
Representatives, a report on the effectiveness of the
assistance made available under section 7(b)(4) of the Small
Business Act, as added by this section, including--
(A) the number of small business concerns that
applied for a loan under that section 7(b)(4) and the
number of those that received such loans;
(B) the dollar value of those loans;
(C) the States in which the small business concerns
that received such loans are located;
(D) the type of energy that caused the significant
increase in the cost for the participating small
business concerns; and
(E) recommendations for ways to improve the
assistance provided under that section 7(b)(4), if any.
(2) Department of agriculture.--Not later than 12 months
after the date on which the Secretary issues guidelines under
subsection (d)(1), and annually thereafter, until the date that
is 12 months after the end of the effective period of the
amendments made to section 321(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1961(a)) by this section, the
Secretary shall submit to the Committee on Small Business and
Entrepreneurship and the Committee on Agriculture, Nutrition,
and Forestry of the Senate and to the Committee on Small
Business and the Committee on Agriculture of the House of
Representatives, a report that--
(A) describes the effectiveness of the assistance
made available under section 321(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1961(a)), as
amended by this section; and
(B) contains recommendations for ways to improve
the assistance provided under such section 321(a).
(f) Effective Date.--
(1) Small business.--The amendments made by subsection (b)
shall apply during the 4-year period beginning on the earlier
of the date on which guidelines are published by the
Administrator under subsection (d)(1), or 30 days after the
date of enactment of this Act, with respect to assistance under
section 7(b)(4) of the Small Business Act, as added by this
section.
(2) Department of agriculture.--The amendments made by
subsection (c) shall apply during the 4-year period beginning
on the earlier of the date on which guidelines are published by
the Secretary under subsection (d)(1), or 30 days after the
date of enactment of this Act, with respect to assistance under
section 321(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1961(a)), as amended by this section.
Subtitle F--Public Access to Federal Alternative Refueling Stations
SEC. 251. ACCESS TO FEDERAL ALTERNATIVE REFUELING STATIONS.
(a) Definitions.--In this section:
(1) Alternative fuel refueling station.--The term
``alternative fuel refueling station'' has the meaning given
the term ``qualified alternative fuel vehicle refueling
property'' in section 30C(c)(1) of the Internal Revenue Code of
1986.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Access.--Not later than 18 months after the date of enactment
of this Act--
(1) except as provided in subsection (d)(1), any Federal
property that includes at least 1 fuel refueling station shall
include at least 1 alternative fuel refueling station; and
(2) except as provided in subsection (d)(2), any
alternative fuel refueling station located on property owned by
the Federal Government shall permit full public access for the
purpose of refueling using alternative fuel.
(c) Duration.--The requirements described in subsection (b) shall
remain in effect until the earlier of--
(1) the date that is 7 years after the date of enactment of
this Act; or
(2) the date on which the Secretary determines that not
less than 5 percent of the commercial refueling infrastructure
in the United States offers alternative fuels to the general
public.
(d) Exceptions.--
(1) Waiver.--Subsection (b)(1) shall not apply to any
Federal property under the jurisdiction of a Federal agency if
the Secretary determines that alternative fuel is not
reasonably available to retail purchasers of the fuel, as
certified by the head of the agency to the Secretary.
(2) National security exemption.--Subsection (b)(2) shall
not apply to property of the Federal government that the
Secretary, in consultation with the Secretary of Defense, has
certified must be exempt for national security reasons.
(3) Safety exemption.--Subsection (b)(2) shall not apply to
property of the Federal government that the Secretary
determines poses a safety hazard to the general public.
(e) Verification of Compliance.--The Secretary shall--
(1) monitor compliance with this section by all Federal
agencies; and
(2) annually submit to Congress a report describing the
extent of compliance with this section.
Subtitle G--Measures to Empower Drivers to Realize Improved Fuel
Economy
SEC. 261. IMPROVED LABELING ON NEW VEHICLE WINDOW STICKERS.
(a) In General.--The Administrator of the Environmental Protection
Agency (referred to in this section as the ``Administrator''), in
consultation with the Secretary of Transportation, shall, as
appropriate, use existing emission test cycles and updated adjustment
factors to update and revise the process used to determine fuel economy
values for labeling purposes as described in sections 600.209-85 and
600.209-95 of title 40, Code of Federal Regulations (or successor
regulations) to take into consideration current factors, such as--
(1) speed limits;
(2) acceleration rates;
(3) braking;
(4) variations in weather and temperature;
(5) vehicle load;
(6) use of air conditioning;
(7) driving patterns; and
(8) the use of other fuel-consuming features.
(b) Deadline.--In carrying out subsection (a), the Administrator
shall--
(1) issue a notice of proposed rulemaking not later than 90
days after the date of enactment of this Act; and
(2) promulgate a final rule not later than 180 days after
the date on which the notice under paragraph (1) is issued.
(c) Complementary Consumer Information.--The Administrator, using
the most recent data available to the Administrator, shall augment fuel
economy labels to provide easily understandable information on the
safety rating and air pollution and climate change impacts of a new
vehicle as compared to the safety ratings and climate change impacts of
other comparable vehicles.
(d) Reevaluation and Report.--Not later than 3 years after the date
of promulgation of the final rule under subsection (b)(2), and
triennially thereafter, the Administrator shall--
(1) reevaluate the fuel economy labeling procedures
described in subsections (a) and (c) to determine whether
changes in the factors used to establish the labeling
procedures warrant a revision of that process; and
(2) submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report that
describes the results of the reevaluation process.
SEC. 262. TIRE EFFICIENCY LABELING PROGRAM.
(a) Standards for Tires Manufactured for Interstate Commerce.--
Section 30123(b) of title 49, United States Code, is amended to read as
follows:
``(b) Tire Grading and Marketing.--
``(1) Uniform quality grading system.--
``(A) In general.--The Secretary shall prescribe,
by regulation, a uniform quality grading system for
motor vehicle tires to assist consumers to make
informed decisions when purchasing tires.
``(B) Inclusion.--The grading system established
pursuant to subparagraph (A) shall include standards
for rating the fuel efficiency of tires designed for
use on vehicles.
``(2) Nomenclature and marketing practices.--The Secretary
shall cooperate with industry and the Federal Trade Commission
to the greatest extent practicable to eliminate deceptive and
confusing tire nomenclature and marketing practices.
``(3) Effect of standards and regulations.--A tire standard
or regulation prescribed pursuant to this chapter supercedes an
order or administrative interpretation of the Commission.''.
(b) National Tire Fuel Efficiency Program.--
(1) In general.--Chapter 329 of title 49, United States
Code, is amended by adding at the end the following:
``Sec. 32920. National tire fuel economy program
``(a) Definition.--In this section, the term `fuel economy', with
respect to a tire, means the extent to which the tire contributes to
the reduction in fuel usage of the motor vehicle on which the tire is
mounted.
``(b) Program.--The Secretary shall establish a national tire fuel
economy program for vehicle tires.
``(c) Requirements.--Not later than March 31, 2008, the Secretary
shall issue regulations, which establish--
``(1) policies and procedures for testing and labeling
tires for fuel economy to enable tire buyers to make informed
purchasing decisions about the fuel economy of tires;
``(2) policies and procedures to promote the purchase of
energy efficient replacement tires, including--
``(A) purchase incentives;
``(B) website listings on the Internet;
``(C) printed fuel economy guide booklets; and
``(D) mandatory requirements for tire retailers to
provide tire buyers with fuel efficiency information on
tires; and
``(3) minimum fuel economy standards for tires.
``(d) Minimum Fuel Economy Standards.--In promulgating minimum fuel
economy standards for tires, the Secretary shall develop standards
that--
``(1) ensure, in conjunction with the requirements under
subsection (c)(2), that the average fuel economy of replacement
tires is not less than the average fuel economy of tires sold
as original equipment;
``(2) secure the maximum technically feasible and cost-
effective fuel savings;
``(3) do not adversely affect tire safety;
``(4) incorporate the results from--
``(A) laboratory testing; and
``(B) to the extent appropriate and available, on-
road fleet testing programs conducted by manufacturers;
and
``(5) do not adversely affect efforts to manage scrap
tires.
``(e) Applicability.--The policies, procedures, and standards
developed under subsection (c) shall apply to all tire types and models
regulated under the uniform tire quality grading standards in section
575.104 of title 49, Code of Federal Regulations, as in effect on the
date of the enactment of this section.
``(f) Review.--
``(1) In general.--Not less than once every 3 years, the
Secretary shall--
``(A) review the minimum fuel economy standards in
effect for tires under this subsection; and
``(B) subject to paragraph (2), revise the
standards as necessary to ensure compliance with
standards described in subsection (d).
``(2) Limitation.--The Secretary may not reduce the average
fuel economy standards applicable to replacement tires.
``(g) No Preemption of State Law.--Nothing in this section shall be
construed to preempt any provision of State law relating to higher fuel
economy standards applicable to replacement tires designed for use on
vehicles.
``(h) Exceptions.--Nothing in this section shall apply to--
``(1) a tire or group of tires with the same stock keeping
unit, plant, and year, for which the volume of tires produced
or imported is less than 15,000 annually;
``(2) a deep tread, winter-type snow tire, space-saver
tire, or temporary use spare tire;
``(3) a tire with a normal rim diameter of 12 inches or
less;
``(4) a motorcycle tire; or
``(5) a tire manufactured specifically for use in an off-
road motorized recreational vehicle.
``(i) Authorization of Appropriations.--There are authorized to be
appropriated, for each of fiscal years 2007 through 2011, such sums as
may be necessary to carry out this section.''.
(2) Clerical amendment.--The table of sections for chapter
329 of title 49, United States Code, is amended by adding after
the item relating to section 32919 the following:
``Sec. 32920. National tire fuel economy program.''.
(c) Conforming Amendment.--Section 30103(b)(1) of title 49, United
States Code, is amended by striking ``When'' and inserting ``Except as
provided in section 30920, if''.
(d) Effective Date.--The amendments made by this section shall take
effect on March 31, 2008.
SEC. 263. NEW VEHICLE OPTIONS TO EMPOWER DRIVERS TO REDUCE FUEL USE.
Not later than 18 months after the date of the enactment of this
Act, the Secretary of Transportation, in consultation with the
Administrator of the Environmental Protection Agency, shall promulgate
regulations to require, beginning in 2010, that original equipment
manufacturers of all new on-highway motor vehicles sold in the United
States provide purchasers with the vehicle options that will--
(1) use on-board electronic instruments to provide real-
time fuel consumption data;
(2) use on-board electronic instruments to signal a driver
when inadequate tire pressure is affecting vehicle safety or
fuel economy; and
(3) a device that will allow drivers to voluntarily place
their vehicle in a mode that will automatically produce greater
fuel economy.
SEC. 264. IDLING REDUCTION TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business-related
credits), as amended by this Act, is amended by adding at the end the
following new section:
``SEC. 45O. IDLING REDUCTION CREDIT.
``(a) General Rule.--For purposes of section 38, the idling
reduction tax credit determined under this section for the taxable year
is an amount equal to 25 percent of the amount paid or incurred for
each qualifying idling reduction device placed in service by the
taxpayer during the taxable year.
``(b) Limitation.--The maximum amount allowed as a credit under
subsection (a) shall not exceed $1,000 per device.
``(c) Definitions.--For purposes of subsection (a)--
``(1) Qualifying idling reduction device.--The term
`qualifying idling reduction device' means any device or system
of devices that--
``(A) is installed on a heavy-duty diesel-powered
on-highway vehicle,
``(B) is designed to provide to such vehicle those
services (such as heat, air conditioning, or
electricity) that would otherwise require the operation
of the main drive engine while the vehicle is
temporarily parked or remains stationary,
``(C) the original use of which commences with the
taxpayer,
``(D) is acquired for use by the taxpayer and not
for resale, and
``(E) is certified by the Secretary of Energy, in
consultation with the Administrator of the
Environmental Protection Agency and the Secretary of
Transportation, to reduce long-duration idling of such
vehicle at a motor vehicle rest stop or other location
where such vehicles are temporarily parked or remain
stationary.
``(2) Heavy-duty diesel-powered on-highway vehicle.--The
term `heavy-duty diesel-powered on-highway vehicle' means any
vehicle, machine, tractor, trailer, or semi-trailer propelled
or drawn by mechanical power and used upon the highways in the
transportation of passengers or property, or any combination
thereof determined by the Federal Highway Administration.
``(3) Long-duration idling.--The term `long-duration
idling' means the operation of a main drive engine, for a
period greater than 15 consecutive minutes, where the main
drive engine is not engaged in gear. Such term does not apply
to routine stoppages associated with traffic movement or
congestion.
``(d) No Double Benefit.--For purposes of this section--
``(1) Reduction in basis.--If a credit is determined under
this section with respect to any property by reason of
expenditures described in subsection (a), the basis of such
property shall be reduced by the amount of the credit so
determined.
``(2) Other deductions and credits.--No deduction or credit
shall be allowed under any other provision of this chapter with
respect to the amount of the credit determined under this
section.
``(e) Election Not to Claim Credit.--This section shall not apply
to a taxpayer for any taxable year if such taxpayer elects to have this
section not apply for such taxable year.
``(f) Termination.--This section shall not apply with respect to
any property placed in service after December 31, 2014.''.
(b) Credit to Be Part of General Business Credit.--Subsection (b)
of section 38 of the Internal Revenue Code of 1986 (relating to general
business credit), as amended by this Act, is amended by striking
``plus'' at the end of paragraph (30), by striking the period at the
end of paragraph (31) and inserting ``, plus'' , and by adding at the
end the following new paragraph:
``(32) the idling reduction tax credit determined under
section 45O(a).''.
(c) Conforming Amendments.--
(1) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986,
as amended by this Act, is amended by inserting after the item
relating to section 45N the following new item:
``Sec. 45O. Idling reduction credit''.
(2) Section 1016(a) of such Code, as amended by this Act,
is amended by striking ``and'' at the end of paragraph (37), by
striking the period at the end of paragraph (38) and inserting
``, and'', and by adding at the end the following:
``(39) in the case of a facility with respect to which a
credit was allowed under section 45O, to the extent provided in
section 45O(d)(1).
``(40) Section 6501(m) of such Code is amended by inserting
`45O(e),' after `45D(c)(4),'.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
(e) Determination of Certification Standards by Secretary of Energy
for Certifying Idling Reduction Devices.--Not later than 6 months after
the date of the enactment of this Act and in order to reduce air
pollution and fuel consumption, the Secretary of Energy, in
consultation with the Administrator of the Environmental Protection
Agency and the Secretary of Transportation, shall publish the standards
under which the Secretary, in consultation with the Administrator of
the Environmental Protection Agency and the Secretary of
Transportation, will, for purposes of section 45O of the Internal
Revenue Code of 1986 (as added by this section), certify the idling
reduction devices which will reduce long-duration idling of vehicles at
motor vehicle rest stops or other locations where such vehicles are
temporarily parked or remain stationary in order to reduce air
pollution and fuel consumption.
Subtitle H--Providing Consumers With Additional Advanced Technology
Vehicle Purchase Incentives
SEC. 271. EXPANSION AND EXTENSION OF ALTERNATIVE MOTOR VEHICLE CREDIT.
(a) Increases in Credit.--
(1) New qualified fuel cell motor vehicle.--Subsection (b)
of section 30B of the Internal Revenue Code of 1986 (relating
to new qualified fuel cell motor vehicle credit) is amended--
(A) in paragraph (1)--
(i) by striking ``$8,000 ($4,000'' in
subparagraph (A) and inserting ``$16,000
($8,000'';
(ii) by striking ``$10,000'' in
subparagraph (B) and inserting ``$20,000'';
(iii) by striking ``$20,000'' in
subparagraph (C) and inserting ``$40,000''; and
(iv) by striking ``$40,000'' in
subparagraph (D) and inserting ``$80,000''; and
(B) in paragraph (2)(A)--
(i) by striking ``$1,000'' in clause (i)
and inserting ``$2,000'';
(ii) by striking ``$1,500'' in clause (ii)
and inserting ``$3,000'';
(iii) by striking ``$2,000'' in clause
(iii) and inserting ``$4,000'';
(iv) by striking ``$2,500'' in clause (iv)
and inserting ``$5,000'';
(v) by striking ``$3,000'' in clause (v)
and inserting ``$6,000'';
(vi) by striking ``$3,500'' in clause (vi)
and inserting ``$7,000''; and
(vii) by striking ``$4,000'' in clause
(vii) and inserting ``$8,000''.
(2) New advanced lean burn technology motor vehicle.--
(A) Fuel economy.--The table in clause (i) of
section 30B(c)(2)(A) of such Code (relating to fuel
economy) is amended--
(i) by striking ``$400'' and inserting
``$800'';
(ii) by striking ``$800'' and inserting
``$1,600'';
(iii) by striking ``$1,200'' and inserting
``$2,400'';
(iv) by striking ``$1,600'' and inserting
``$3,200'';
(v) by striking ``$2,000'' and inserting
``$4,000''; and
(vi) by striking ``$2,400'' and inserting
``$4,800''.
(B) Conservation.--The table in subparagraph (B) of
section 30B(c)(2) of such Code (relating to
conservation credit) is amended--
(i) by striking ``$250'' and inserting
``$500'';
(ii) by striking ``$500'' and inserting
``$1,000'';
(iii) by striking ``$750'' and inserting
``$1,500''; and
(iv) by striking ``$1,000'' and inserting
``$2,000''.
(b) Expansion of Number of New Qualified Hybrid and Advanced Lean
Burn Technology Vehicles Eligible for Credit.--Paragraph (2) of section
30B(f) of the Internal Revenue Code of 1986 (relating to phaseout) is
amended--
(1) by striking ``the period'' and inserting ``any
period'',
(2) by striking ``United States after December 31, 2005, is
at least 60,000'' and inserting ``United States is--
``(A) after December 31, 2005, at least 60,000, and
``(B) after December 31, 2008, and before January
1, 2013, 60,000.'', and
(3) by adding at the end the following new sentence: ``For
purposes of the preceding sentence, the Secretary may extend
the time period through 2014 if the Secretary determines that
market conditions merit such action.''.
(c) Extension.--Section 30B(j) of the Internal Revenue Code of 1986
(relating to termination) is amended--
(1) by striking ``December 31, 2010'' both places it
appears and inserting ``December 31, 2014'', and
(2) by striking ``December 31, 2009'' in paragraph (3) and
inserting ``December 31, 2014''.
(d) Effective Date.--The amendments made by this section shall take
effect as if included in the amendments made by section 1341(a) of the
Energy Policy Act of 2005.
SEC. 272. PLUG-IN HYBRID MOTOR VEHICLE TAX CREDIT.
(a) In General.--Section 30B of the Internal Revenue Code of 1986
is amended by redesignating subsections (i) and (j) as subsections (j)
and (k), respectively, and by inserting after subsection (h) the
following new subsection:
``(i) New Plug-in Hybrid Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a), the new
plug-in hybrid motor vehicle credit determined under this
subsection with respect to a new qualified plug-in hybrid motor
vehicle or new qualified flexible-fuel plug-in hybrid motor
vehicle placed in service by the taxpayer during the taxable
year is--
``(A) $3,000, if such vehicle is a new qualified
plug-in hybrid motor vehicle with a gross vehicle
weight rating of not more than 8,500 pounds, and
``(B) $3,150, if such vehicle is a new qualified
flexible-fuel plug-in hybrid motor vehicle with a gross
vehicle weight rating of not more than 8,500 pounds.
``(2) Increase for fuel efficiency.--
``(A) In general.--The amount determined under
paragraph (1)(A) with respect to a new qualified plug-
in hybrid motor vehicle or new qualified flexible-fuel
plug-in hybrid motor vehicle which is a passenger
automobile or light truck shall be increased by--
``(i) $1,000 if such vehicle achieves at
least 250 percent but less than 250 percent of
the 2002 model year city fuel economy,
``(ii) $1,500 if such vehicle achieves at
least 250 percent but less than 275 percent of
the 2002 model year city fuel economy,
``(iii) $2,000 if such vehicle achieves at
least 275 percent but less than 300 percent of
the 2002 model year city fuel economy,
``(iv) $2,500 if such vehicle achieves at
least 300 percent but less than 325 percent of
the 2002 model year city fuel economy, and
``(v) $3,000 if such vehicle achieves at
least 325 percent of the 2002 model year city
fuel economy,
``(B) 2002 model year city fuel economy.--For
purposes of subparagraph (A), the 2002 model year city
fuel economy with respect to a vehicle shall be
determined using the tables provided in subsection
(b)(2)(B).
``(3) New qualified plug-in hybrid motor vehicle.--For
purposes of this subsection, the term `new qualified plug-in
hybrid motor vehicle' means a motor vehicle--
``(A) which is propelled by an internal combustion
engine or heat engine using --
``(i) any combustible fuel,
``(ii) an on-board, rechargeable storage
device, and
``(iii) a means of using an off-board
source of electricity,
``(B) which, in the case of a passenger automobile
or light truck, has received on or after the date of
the enactment of this section a certificate that such
vehicle meets or exceeds the Bin 5 Tier II emission
level established in regulations prescribed by the
Administrator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act for that make
and model year vehicle,
``(C) the original use of which commences with the
taxpayer,
``(D) which is acquired for use or lease by the
taxpayer and not for resale, and
``(E) which is made by a manufacturer.
``(4) New qualified flexible-fuel plug-in hybrid motor
vehicle.--For purposes of this subsection, the term `new
qualified flexible-fuel plug-in hybrid motor vehicle' means a
motor vehicle--
``(A) which is propelled by an internal combustion
engine or heat engine using--
``(i) an on-board, rechargeable storage
device, and
``(ii) a means of using an off-board source
of electricity,
``(B) which is warrantied by its manufacturer to
operate on any combination of gasoline and a fuel blend
containing up to 85 percent ethanol and 15 percent
gasoline by volume (E85),
``(C) which, in the case of a passenger automobile
or light truck, has received on or after the date of
the enactment of this section a certificate that such
vehicle meets or exceeds the Bin 5 Tier II emission
level established in regulations prescribed by the
Administrator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act for that make
and model year vehicle,
``(D) the original use of which commences with the
taxpayer,
``(E) which is acquired for use or lease by the
taxpayer and not for resale, and
``(F) which is made by a manufacturer.''.
(b) Conforming Amendments.--
(1) Section 30B(a) of the Internal Revenue Code of 1986 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 new plug-in hybrid motor vehicle credit
determined under subsection (i).''.
(2) Section 30B(k)(2) of such Code, as redesignated by
subsection (a), is amended by striking ``or'' and inserting a
comma and by inserting ``, a new qualified plug-in hybrid motor
vehicle (as described in subsection (i)(3)), or a new qualified
flexible-fuel plug-in hybrid motor vehicle (as described in
subsection (i)(4))'' after ``subsection (d)(2)(A))''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
Subtitle I--Tax Incentives for Fuel Efficient Private Fleets
SEC. 281. TAX CREDIT FOR FUEL-EFFICIENT FLEETS.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48B the following new section:
``SEC. 48C. FUEL-EFFICIENT FLEET CREDIT.
``(a) General Rule.--For purposes of section 46, the fuel-efficient
fleet credit for any taxable year is 15 percent of the qualified fuel-
efficient vehicle investment amount of an eligible taxpayer for such
taxable year.
``(b) Vehicle Purchase Requirement.--In the case of any eligible
taxpayer which places less than 10 qualified fuel-efficient vehicles in
service during the taxable year, the qualified fuel-efficient vehicle
investment amount shall be zero.
``(c) Qualified Fuel-Efficient Vehicle Investment Amount.--For
purposes of this section--
``(1) In general.--The term `qualified fuel-efficient
vehicle investment amount' means the basis of any qualified
fuel-efficient vehicle placed in service by an eligible
taxpayer during the taxable year.
``(2) Qualified fuel-efficient vehicle.--
``(A) In general.--The term `qualified fuel-
efficient vehicle' means an vehicle which has a fuel
economy which is at least 150 percent greater than the
average fuel economy standard for an vehicle of the
same class and model year.
``(B) Certain vehicles excluded.--Such term shall
not include any vehicle for which a credit is allowed
to the eligible taxpayer under section 30 or 30B.
``(3) Other terms.--The terms `vehicle', `average fuel
economy standard', `fuel economy', and `model year' have the
meanings given to such terms under section 32901 of title 49,
United States Code.
``(d) Eligible Taxpayer.--The term `eligible taxpayer' means, with
respect to any taxable year, a taxpayer who owns a fleet of 100 or more
vehicles which are used in the trade or business of the taxpayer on the
first day of such taxable year.
``(e) Termination.--This section shall not apply to any vehicle
placed in service after December 31, 2010.''.
(b) Credit Treated as Part of Investment Credit.--Section 46 of the
Internal Revenue Code of 1986 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 fuel-efficient fleet credit.''.
(c) Conforming Amendments.--
(1) Section 49(a)(1)(C) of the Internal Revenue Code of
1986 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 qualified fuel-
efficient vehicle which is taken into account
under section 48C.''.
(2) 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 48 the following new item:
``Sec. 48C. Fuel-efficient fleet credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2005, in taxable years ending after
such date, 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).
TITLE III-- ACCELERATING CLEAN FUELS AND ELECTRICITY
Subtitle A--Guaranteeing a Minimum Level of Renewable Electricity
Generation
SEC. 301. RENEWABLE PORTFOLIO STANDARD.
The Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601
et seq.) is amended by adding at the end of title VI the following:
``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.
``(a) Definitions.--In this section:
``(1) Base amount of electricity.--The term `base amount of
electricity' means the total amount of electricity sold by an
electric utility to electric consumers in a calendar year,
excluding--
``(A) electricity generated by a hydroelectric
facility (including a pumped storage facility but
excluding incremental hydropower); and
``(B) electricity generated through the
incineration of municipal solid waste.
``(2) Distributed generation facility.--The term
`distributed generation facility' means a facility at a
customer site.
``(3) Existing renewable energy.--The term `existing
renewable energy' means, except as provided in paragraph
(7)(B), electric energy generated at a facility (including a
distributed generation facility) placed in service prior to the
date of enactment of this section from--
``(A) solar, wind, or geothermal energy;
``(B) ocean energy;
``(C) biomass (as defined in section 203(b) of the
Energy Policy Act of 2005 (42 U.S.C. 15852(b))); or
``(D) landfill gas.
``(4) Geothermal energy.--The term `geothermal energy'
means energy derived from a geothermal deposit (within the
meaning of section 613(e)(2) of the Internal Revenue Code of
1986).
``(5) Incremental geothermal production.--
``(A) In general.--The term `incremental geothermal
production' means, for any year, the difference
between--
``(i) the total kilowatt hours of
electricity produced from a facility (including
a distributed generation facility) using
geothermal energy, and
``(ii) the average annual kilowatt hours
produced at the facility for 5 of the 7
calendar years preceding the date of enactment
of this section after eliminating the highest
and the lowest kilowatt hour production years
in that 7-year period.
``(B) Special rule.--A facility described in
subparagraph (A) that was placed in service at least 7
years before the date of enactment of this section
shall, beginning with the year in which that date of
enactment occurs, reduce the amount calculated under
subparagraph (A)(ii) each year, on a cumulative basis,
by the average percentage decrease in the annual
kilowatt hour production for the 7-year period
described in subparagraph (A)(ii), the cumulative sum
of which shall not exceed 30 percent.
``(6) Incremental hydropower.--
``(A) In general.--The term `incremental
hydropower' means additional energy generated as a
result of efficiency improvements or capacity additions
made on or after the date of enactment of this section
or the effective date of an existing applicable State
renewable portfolio standard program at a hydroelectric
facility that was placed in service before that date.
``(B) Exclusions.--The term `incremental
hydropower' does not include additional energy
generated as a result of operational changes not
directly associated with efficiency improvements or
capacity additions.
``(C) Measurement of improvements and additions.--
Efficiency improvements and capacity additions referred
to in subparagraph (A) shall be measured on the basis
of the same water flow information used to determine a
historic average annual generation baseline for the
hydroelectric facility and certified by the Secretary
or the Federal Energy Regulatory Commission.
``(7) New renewable energy.--The term `new renewable
energy' means--
``(A) electric energy generated at a facility
(including a distributed generation facility) placed in
service on or after January 1, 2003, from--
``(i) solar, wind, or geothermal energy or
ocean energy;
``(ii) biomass (as defined in section
203(b) of the Energy Policy Act of 2005 (42
U.S.C. 15852(b)));
``(iii) landfill gas; or
``(iv) incremental hydropower; and
``(B) for electric energy generated at a facility
(including a distributed generation facility) placed in
service before the date of enactment of this section--
``(i) the additional energy above the
average generation in the 3 years preceding the
date of enactment of this section at the
facility from--
``(I) solar or wind energy or ocean
energy;
``(II) biomass (as defined in
section 203(b) of the Energy Policy Act
of 2005 (42 U.S.C. 15852(b)));
``(III) landfill gas; or
``(IV) incremental hydropower; and
``(ii) the incremental geothermal
production.
``(8) Ocean energy.--The term `ocean energy' includes
current, wave, tidal, and thermal energy.
``(b) Renewable Energy Requirement.--
``(1) Requirement.--
``(A) In general.--Each electric utility that sells
electricity to electric consumers shall obtain a
percentage of the base amount of electricity the
electric utility sells to electric consumers in any
calendar year from new renewable energy or existing
renewable energy.
``(B) Percentages.--The percentage obtained in a
calendar year shall not be less than the amount
specified in the following table:
``Calendar year Min. annual percentage
2008 through 2011.................... 2.5
2012 through 2015.................... 5.0
2016 through 2019.................... 7.5
2020 through 2030.................... 10.0
``(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 (c); or
``(D) a combination of the foregoing.
``(c) Renewable Energy Credit Trading Program.--
``(1) In general.--Not later than January 1, 2007, the
Secretary shall establish a renewable energy credit trading
program to permit an electric utility that does not generate or
purchase enough electric energy from renewable energy to meet
its obligations under subsection (b)(1) to satisfy the
requirements by purchasing sufficient renewable energy credits.
``(2) Responsibilities of secretary.--As part of the
program, the Secretary shall--
``(A) issue renewable energy credits to generators
of electric energy from new renewable energy;
``(B) sell renewable energy credits to electric
utilities at the rate of 1.5 cents per kilowatt-hour
(as adjusted for inflation under subsection (h));
``(C) ensure that a kilowatt hour, including the
associated renewable energy credit, shall be used only
once for purposes of compliance with this section; and
``(D) allow double credits for generation from
facilities on Indian land, and triple credits for
generation from small renewable distributed generators
(meaning those no larger than 1 megawatt).
``(3) Use of credits.--A credit under paragraph (2)(A) may
only be used for compliance with this section for the 3-year
period beginning on the date of issuance of the credit.
``(d) Enforcement.--
``(1) Civil penalties.--Any electric utility that fails to
meet the renewable energy requirements of subsection (b) shall
be subject to a civil penalty.
``(2) Amount of penalty.--The amount of the civil penalty
shall be determined by multiplying the number of kilowatt-hours
of electric energy sold to electric consumers in violation of
subsection (b) by the greater of 1.5 cents (adjusted for
inflation under subsection (h)) or 200 percent of the average
market value of renewable energy credits during the year in
which the violation occurred.
``(3) Mitigation or waiver.--
``(A) In general.--The Secretary may mitigate or
waive a civil penalty under this subsection if the
electric utility was unable to comply with subsection
(b) for reasons outside of the reasonable control of
the utility.
``(B) Reduction of amount.--The Secretary shall
reduce the amount of any penalty determined under
paragraph (2) by an amount paid by the electric utility
to a State for failure to comply with the requirement
of a State renewable energy program if the State
requirement is greater than the applicable requirement
of subsection (b).
``(4) Procedure for assessing penalty.--The Secretary shall
assess a civil penalty under this subsection in accordance with
the procedures prescribed by section 333(d) of the Energy
Policy and Conservation Act of 1954 (42 U.S.C. 6303).
``(e) State Renewable Energy Account Program.--
``(1) In general.--Not later than December 31, 2008, the
Secretary shall establish a State renewable energy account
program.
``(2) Deposit of amounts.--All funds collected by the
Secretary from the sale of renewable energy credits and the
assessment of civil penalties under this section shall be
deposited into the renewable energy account established
pursuant to this subsection.
``(3) Maintenance of account.--The State renewable energy
account shall be held by the Secretary and shall not be
transferred to the Treasury Department.
``(4) Use of amounts.--Proceeds deposited in the State
renewable energy account shall be used by the Secretary,
subject to appropriations, for a program to provide grants to
the State agency responsible for developing State energy
conservation plans under section 362 of the Energy Policy and
Conservation Act (42 U.S.C. 6322) for the purposes of promoting
renewable energy production, including programs that promote
technologies that reduce the use of electricity at customer
sites such as solar water heating.
``(5) Guidelines and criteria.--The Secretary may issue
guidelines and criteria for grants awarded under this
subsection.
``(6) Maintenance of records and evidence of compliance.--
State energy offices receiving grants under this section shall
maintain such records and evidence of compliance as the
Secretary may require.
``(7) Allocation of funds.--In allocating funds under this
program, the Secretary shall give preference--
``(A) to States in regions that have a
disproportionately small share of economically
sustainable renewable energy generation capacity; and
``(B) to State programs to stimulate or enhance
innovative renewable energy technologies.
``(f) Rules.--Not later than 1 year after the date of enactment of
this section, the Secretary shall issue rules implementing this
section.
``(g) Exemptions.--This section shall not apply in any calendar
year to an electric utility that--
``(1) sold less than 4,000,000 megawatt-hours of electric
energy to electric consumers during the preceding calendar
year; or
``(2) is located in Hawaii.
``(h) Inflation Adjustment.--Not later than December 31 of each
year beginning in 2008, the Secretary shall adjust for inflation the
price of a renewable energy credit under subsection (c)(2)(B) and the
amount of the civil penalty per kilowatt-hour under subsection (d)(2).
``(i) State Programs.--
``(1) In general.--Nothing in this section shall diminish
any authority of a State or political subdivision thereof to
adopt or enforce any law or regulation respecting renewable
energy, but, except as provided in subsection (d)(3), no such
law or regulation shall relieve any person of any requirement
otherwise applicable under this section.
``(2) Federal-state coordination.--The Secretary, in
consultation with States having renewable energy programs,
shall, to the maximum extent practicable, facilitate
coordination between the Federal program and State programs.
``(j) Termination of Authority.--This section and the authority
provided by this section terminate on December 31, 2030.''.
Subtitle B--Facilitating Home Energy Generation Through Net Metering
and Interconnection Standards
SEC. 311. NET METERING.
(a) Adoption of Standard.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
striking paragraph (11) and inserting the following:
``(11) Net metering.--
``(A) In general.--On the request of any electric
consumer served by an electric utility, the electric
utility shall make available to the electric consumer
net metering as provided in section 115(j).
``(B) Consideration by state regulatory
authorities.--Notwithstanding subsections (b) and (c)
of section 112, not later than 1 year after the date of
enactment of this paragraph, a State regulatory
authority may consider and make a determination
concerning whether it is in the public interest to
decline to implement subparagraph (A) in the State.
``(C) Incentives.--Nothing in this paragraph
precludes a State from establishing incentives to
encourage on-site generating facilities and net
metering in addition to the requirement under this
subsection.
``(D) Reports.--Not later than 1 year after the
date of enactment of this paragraph and annually
thereafter, the Secretary shall submit to Congress a
report that--
``(i) describes the status of
implementation by the States of subparagraph
(A);
``(ii) contains a list of pre-approved
systems and equipment eligible for uniform
interconnection treatment; and
``(iii) describes the public benefits that
have been derived from net metering and
interconnection standards.''.
(b) Special Rules for Net Metering.--Section 115 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by
adding at the end the following:
``(j) Net Metering.--
``(1) Definitions.--In this subsection:
``(A) Eligible on-site generating facility.--The
term `eligible on-site generating facility' means--
``(i) a facility on the site of a
residential electric consumer with a maximum
generating capacity of 25 kilowatts or less
that is fueled by solar energy, wind energy, or
fuel cells; and
``(ii) a facility on the site of a
commercial electric consumer with a maximum
generating capacity of 1000 kilowatts or less
that is fueled solely by a renewable energy
resource, landfill gas, or a high-efficiency
system.
``(B) High efficiency system.--The term `high
efficiency system' means a system that is comprised
of--
``(i) fuel cells; or
``(ii) combined heat and power.
``(C) Net metering service.--The term `net metering
service' means service to an electric consumer, as
provided in section 111(d)(11), under which electric
energy generated by that electric consumer from an
eligible on-site generating facility and delivered to
the local distribution facilities may be used to offset
electric energy provided by the electric utility to the
electric consumer during the applicable billing period.
``(D) Renewable energy resource.--The term
`renewable energy resource' means solar, wind, biomass,
micro-freeflow-hydro, or geothermal energy.
``(2) Net metering service.--For the purposes of
undertaking the consideration and making the determination with
respect to the standard concerning net metering established by
section 111(d)(11), the term `net metering service' means a
service provided in accordance with this subsection.
``(3) Charges by an electric utility.--An electric
utility--
``(A) shall charge the owner or operator of an on-
site generating facility rates and charges that are
identical to those that would be charged other electric
consumers of the electric utility in the same rate
class; and
``(B) shall not charge the owner or operator of an
on-site generating facility any additional standby,
capacity, interconnection, or other rate or charge.
``(4) Measurement of quantities.--An electric utility that
sells electric energy to the owner or operator of an on-site
generating facility shall measure the quantity of electric
energy produced by the on-site facility and the quantity of
electric energy consumed by the owner or operator of an on-site
generating facility during a billing period with a single bi-
directional meter or otherwise in accordance with reasonable
metering practices.
``(5) Quantity sold in excess of quantity supplied.--If the
quantity of electric energy sold by the electric utility to an
on-site generating facility exceeds the quantity of electric
energy supplied by the on-site generating facility to the
electric utility during the billing period, the electric
utility may bill the owner or operator for the net quantity of
electric energy sold, in accordance with reasonable metering
practices.
``(6) Quantity supplied in excess of quantity sold.--If the
quantity of electric energy supplied by the on-site generating
facility to the electric utility exceeds the quantity of
electric energy sold by the electric utility to the on-site
generating facility during the billing period--
``(A) the electric utility may bill the owner or
operator of the on-site generating facility for the
appropriate charges for the billing period in
accordance with paragraph (5); and
``(B) the owner or operator of the on-site
generating facility shall be credited for the excess
kilowatt-hours generated during the billing period
with--
``(i) a kilowatt-hour credit appearing on
the bill for the following billing period; or
``(ii) a cash refund.
``(7) Compliance with standards.--An eligible on-site
generating facility and net metering system used by an electric
consumer shall meet all applicable safety, performance,
reliability, and interconnection standards established by the
National Electrical Code, the Institute of Electrical and
Electronics Engineers, and Underwriters Laboratories.
``(8) Requirements.--The Commission, after consideration of
all applicable safety, performance, reliability, and
interconnection standards established by the National
Electrical Code, the Institute of Electrical and Electronics
Engineers, and Underwriters Laboratories, and consultation with
State regulatory authorities and unregulated electric
utilities, and after notice and opportunity for comment, shall
promulgate additional control, testing, and interconnection
requirements for on-site generating facilities and net metering
systems that the Commission determines are necessary to protect
public safety and system reliability.''.
Subtitle C--Long Term Extensions and Expansions for Clean Energy
Incentives
SEC. 321. EXTENSION OF PRODUCTION TAX CREDIT FOR ELECTRICITY PRODUCED
FROM CERTAIN RENEWABLE RESOURCES.
Section 45(d) of the Internal Revenue Code of 1986 (relating to
qualified facilities) is amended by striking ``2008'' each place it
appears and inserting ``2015''.
SEC. 322. EXTENSION AND MODIFICATION OF INVESTMENT TAX CREDIT WITH
RESPECT TO SOLAR ENERGY PROPERTY AND QUALIFIED FUEL CELL
PROPERTY.
(a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii)
of section 48(a) of the Internal Revenue Code of 1986 are each amended
by striking ``2008'' and inserting ``2015''.
(b) Eligible Fuel Cell Property.--Paragraph (1)(E) of section 48(c)
of the Internal Revenue Code of 1986 is amended by striking ``2007''
and inserting ``2014''.
(c) Credits Allowed Against the Alternative Minimum Tax.--
(1) In general.--Section 38(c)(4)(B) of the Internal
Revenue Code of 1986 (defining specified credits), as amended
by this Act, is amended by striking the period at the end of
clause (iii) and inserting ``, and,'' and by adding at the end
the following new clause:
``(iv) the portion of the investment credit
under section 46(2) as determined under section
48(a)(2)(A)(i).''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31, 2005.
(d) Solar Investment Credit Allowed for Public Utility Property.--
(1) In general.--The second sentence of section 48(a)(3) of
the Internal Revenue Code of 1986 is amended by inserting
``(other than property described in clause (i) or (ii) of
subparagraph (A))'' before ``shall not''.
(2) Effective date.--The amendments made by this subsection
shall apply to periods after the date of the enactment of this
Act, in taxable years ending after such date, 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).
SEC. 323. CREDIT FOR WIND ENERGY SYSTEMS.
(a) Residential.--
(1) In general.--Section 25D(a) of the Internal Revenue
Code of 1986 is amended by striking ``and'' at the end of
paragraph (2), by striking the period at the end of paragraph
(3) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(4) 30 percent of the qualified small wind energy
property expenditures made by the taxpayer during such year.''.
(2) Limitation.--Section 25D(b)(1) of the Internal Revenue
Code of 1986 is amended by striking ``and'' at the end of
subparagraph (B), by striking the period at the end of
subparagraph (A) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(D) $500 with respect to each half kilowatt of
capacity (not to exceed $2,000) of qualifying wind
turbines for which qualified small wind energy property
expenditures are made.''.
(3) Qualified small wind energy property expenditures.--
Section 25D(d) of the Internal Revenue Code of 1986 is amended
by adding at the end the following new paragraph:
``(4) Qualified small wind energy property expenditure.--
``(A) In general.--The term `qualified wind energy
property expenditure' means an expenditure for property
which uses a qualifying wind turbine to generate
electricity for use in connection with a dwelling unit
located in the United States and used as a residence by
the taxpayer.
``(B) Qualifying wind turbine.--The term
`qualifying wind turbine' means a wind turbine of 100
kilowatts of rated capacity or less which meets the
latest performance rating standards published by the
American Wind Energy Association and which is used to
generate electricity and carries at least a 5-year
limited warranty covering defects in design, material,
or workmanship, and, for property that is not installed
by the taxpayer, at least a 5-year limited warranty
covering defects in installation.''.
(b) Business.--Section 48(a)(3)(A) of the Internal Revenue Code of
1986 (defining energy property) is amended by striking ``or'' at the
end of clause (iii), by adding ``or'' at the end of clause (iv), and by
inserting after clause (iv) the following new clause:
``(v) qualifying wind turbine (as defined
in section 25D(d)(B)),''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 324. EXPANSION OF RESOURCES TO WAVE, CURRENT, TIDAL, AND OCEAN
THERMAL ENERGY.
(a) In General.--Section 45(c)(1) of the Internal Revenue Code of
1986 (defining qualified energy resources) is amended by striking
``and'' at the end of subparagraph (G), by striking the period at the
end of subparagraph (H) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(I) wave, current, tidal, and ocean thermal
energy.''
(b) Definition of Resources.--Section 45(c) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:
``(10) Wave, current, tidal, and ocean thermal energy.--The
term `wave, current, tidal, and ocean thermal energy' means
electricity produced from any of the following:
``(A) Free flowing ocean water derived from tidal
currents, ocean currents, waves, or estuary currents.
``(B) Ocean thermal energy.
``(C) Free flowing water in rivers, lakes, man made
channels, or streams.''
(c) Facilities.--Section 45(d) of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(11) Wave, current, tidal, and ocean thermal facility.--
In the case of a facility using resources described in
subparagraph (A), (B), or (C) of subsection (c)(10) to produce
electricity, the term `qualified facility' means any facility
owned by the taxpayer which is originally placed in service
after the date of the enactment of this paragraph and before
January 1, 2015, but such term shall not include a facility
which includes impoundment structures or a small irrigation
power facility.''
(d) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 325. EXTENSION AND EXPANSION OF CREDIT TO HOLDERS OF CLEAN
RENEWABLE ENERGY BONDS.
(a) In General.--Section 54(m) of the Internal Revenue Code of 1986
(relating to termination) is amended by striking ``2007'' and inserting
``2014''.
(b) Annual Volume Cap for Bonds Issued During Extension Period.--
Paragraph (1) of section 54(f) of the Internal Revenue Code of 1986
(relating to limitation on amount of bonds designated) is amended to
read as follows:
``(1) National limitation.--
``(A) Initial national limitation.--With respect to
bonds issued after December 31, 2005, and before
January 1, 2008, there is a national clean renewable
energy bond limitation of $800,000,000.
``(B) Annual national limitation.--With respect to
bonds issued after December 31, 2007, and before
January 1, 2014, there is a national clean renewable
energy bond limitation for each calendar year of
$800,000,000.''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 326. EXTENSION OF CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED
FUEL CELLS AND STATIONARY MICROTURBINE POWER PLANTS.
Sections 48(c)(1)(E) and 48(c)(2)(E) of the Internal Revenue Code
of 1986 (relating to termination) are each amended by striking ``2007''
and inserting ``2014''.
SEC. 327. EXTENSION OF BUSINESS SOLAR INVESTMENT TAX CREDIT.
Sections 48(a)(2)(A)(i)(II) and 48(a)(3)(A)(ii) of the Internal
Revenue Code of 1986 (relating to termination) are each amended by
striking ``2008'' and inserting ``2014''.
SEC. 328. EXTENSION OF FULL CREDIT FOR QUALIFIED ELECTRIC VEHICLES.
(a) In General.--Section 30(e) of the Internal Revenue Code of 1986
is amended by striking ``2006'' and inserting ``2015''.
(b) Repeal of Phaseout.--Section 30(b) of the Internal Revenue Code
of 1986 (relating to limitations) is amended by striking paragraph (2)
and by redesignating paragraph (3) as paragraph (2).
(c) Credit Allowable Against Alternative Minimum Tax.--Paragraph
(2) of section 30(b) of the Internal Revenue Code of 1986, as
redesignated by subsection (b), is amended to read as follows:
``(2) Application with other credits.--The credit allowed
by subsection (a) for any taxable year shall not exceed the
excess (if any) of--
``(A) the sum of the regular tax for the taxable
year plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under
subpart A and section 27.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
Subtitle D--Long-Term Extensions and Expansions for Energy Efficiency
and Conservation Incentives
SEC. 331. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
Section 179D(h) of the Internal Revenue Code of 1986 (relating to
termination) is amended by striking ``2007'' and inserting ``2014''.
SEC. 332. EXTENSION AND EXPANSION OF NEW ENERGY EFFICIENT HOME CREDIT.
(a) Extension.--Section 45L(g) of the Internal Revenue Code of 1986
(relating to termination) is amended by striking ``2007'' and inserting
``2014''.
(b) Inclusion of 30 Percent Homes.--
(1) In general.--Section 45L(c) of the Internal Revenue
Code of 1986 (relating to energy saving requirements) is
amended--
(A) by striking ``or'' at the end of paragraph (2);
(B) by redesignating paragraph (3) as paragraph
(4); and
(C) by inserting after paragraph (2) the following
new paragraph:
``(3) certified--
``(A) to have a level of annual heating and cooling
energy consumption which is at least 30 percent below
the annual level described in paragraph (1), and
``(B) to have building envelope component
improvements account for at least 1/3 of such 30
percent, or.''.
(2) Applicable amount of credit.--Section 45L(a)(2) is
amended by striking ``paragraph (3)'' and inserting ``paragraph
(3) or (4)''.
(3) Effective date.--The amendments made by this subsection
shall apply to qualified new energy efficient homes acquired
after the date of the enactment of this Act.
SEC. 333. EXTENSION OF NONBUSINESS ENERGY PROPERTY CREDIT.
Section 25C(g) of the Internal Revenue Code of 1986 (relating to
termination) is amended by striking ``2007'' and inserting ``2014''.
SEC. 334. EXTENSION AND MODIFICATION OF RESIDENTIAL ENERGY EFFICIENT
PROPERTY CREDIT.
(a) Extension.--Section 25D(g) of the Internal Revenue Code of 1986
(relating to termination) is amended by striking ``2007'' and inserting
``2014''.
(b) Modification of Maximum Credit.--Paragraph (1) of section
25D(b) of the Internal Revenue Code of 1986 (relating to limitations)
is amended to read as follows:
``(1) Maximum credit.--The credit allowed under subsection
(a) for any taxable year shall not exceed--
``(A) $1,000 with respect to each half kilowatt of
capacity of qualified photovoltaic property for which
qualified photovoltaic property expenditures are made,
``(B) $2,000 with respect to any qualified solar
water heating property expenditures, and
``(C) $500 with respect to each half kilowatt of
capacity of qualified fuel cell property (as defined in
section 48(c)(1)) for which qualified fuel cell
property expenditures are made.''.
(c) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Section 25D(b) of the Internal Revenue
Code of 1986 (as amended by subsection (b)) is amended by
adding at the end the following new paragraph:
``(3) Credit allowed against alternative minimum tax.--The
credit allowed under subsection (a) for the taxable year shall
not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under
subpart A of part IV of subchapter A and section 27 for
the taxable year.''.
(2) Conforming amendment.--Subsection (c) of section 25D of
such Code is amended to read as follows:
``(c) Carryforward of Unused Credit.--If the credit allowable under
subsection (a) for any taxable year exceeds the limitation imposed by
subsection (b)(3) for such taxable year, such excess shall be carried
to the succeeding taxable year and added to the credit allowable under
subsection (a) for such succeeding taxable year.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
SEC. 335. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM PROPERTY.
(a) In general.--Section 48(a)(3)(A) of the Internal Revenue Code
of 1986 (defining energy property) is by striking ``or'' at the end of
clause (iii), by inserting ``or'' at the end of clause (iv), and by
adding at the end the following new clause:
``(v) combined heat and power system
property,'';
(b) Combined Heat and Power System Property.--Section 48 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subsection:
``(d) Combined Heat and Power System Property.--For purposes of
subsection (a)(3)(A)(v)--
``(1) Combined heat and power system property.--The term
`combined heat and power system property' means property
comprising a system--
``(A) which uses the same energy source for the
simultaneous or sequential generation of electrical
power, mechanical shaft power, or both, in combination
with the generation of steam or other forms of useful
thermal energy (including heating and cooling
applications),
``(B) which has an electrical capacity of not more
than 15 megawatts or a mechanical energy capacity of
not more than 2,000 horsepower or an equivalent
combination of electrical and mechanical energy
capacities,
``(C) which produces--
``(i) at least 20 percent of its total
useful energy in the form of thermal energy
which is not used to produce electrical or
mechanical power (or combination thereof), and
``(ii) at least 20 percent of its total
useful energy in the form of electrical or
mechanical power (or combination thereof),
``(D) the energy efficiency percentage of which
exceeds 60 percent, and
``(E) which is placed in service before January 1,
2015.
``(2) Special rules.--
``(A) Energy efficiency percentage.--For purposes
of this subsection, the energy efficiency percentage of
a system is the fraction--
``(i) the numerator of which is the total
useful electrical, thermal, and mechanical
power produced by the system at normal
operating rates, and expected to be consumed in
its normal application, and
``(ii) the denominator of which is the
higher heating value of the primary fuel
sources for the system.
``(B) Determinations made on btu basis.--The energy
efficiency percentage and the percentages under
paragraph (1)(C) shall be determined on a Btu basis.
``(C) Input and output property not included.--The
term `combined heat and power system property' does not
include property used to transport the energy source to
the facility or to distribute energy produced by the
facility.
``(D) Certain exception not to apply.--The first
sentence of the matter in subsection (a)(3) which
follows subparagraph (D) thereof shall not apply to
combined heat and power system property.
``(3) Systems using bagasse.--If a system is designed to
use bagasse for at least 90 percent of the energy source--
``(A) paragraph (1)(D) shall not apply, but
``(B) the amount of credit determined under
subsection (a) with respect to such system shall not
exceed the amount which bears the same ratio to such
amount of credit (determined without regard to this
paragraph) as the energy efficiency percentage of such
system bears to 60 percent.
``(4) Nonapplication of certain rules.--For purposes of
determining if the term `combined heat and power system
property' includes technologies which generate electricity or
mechanical power using back-pressure steam turbines in place of
existing pressure-reducing valves or which make use of waste
heat from industrial processes such as by using organic rankin,
stirling, or kalina heat engine systems, paragraph (1) shall be
applied without regard to subparagraphs (C) and (D) thereof
.''.
(c) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2005, in taxable years ending after
such date, 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).
SEC. 336. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF
QUALIFIED ENERGY MANAGEMENT.
(a) In General.--Section 168(e)(3)(A) of the Internal Revenue Code
of 1986 (defining 3-year property) is amended by striking ``and'' at
the end of clause (ii), by striking the period at the end of clause
(iii) and inserting ``, and,'' and by adding at the end the following
new clause:
``(iv) any qualified energy management
device.''.
(b) Definition of Qualified Energy Management Device.--Section
168(i) of the Internal Revenue Code of 1986 (relating to definitions
and special rules) is amended by inserting at the end the following new
paragraph:
``(18) Qualified energy management device.--
``(A) In general.--The term `qualified energy
management device' means any energy management device
which is placed in service before January 1, 2015, by a
taxpayer who is a supplier of electric energy or a
provider of electric energy services.
``(B) Energy management device.--For purposes of
subparagraph (A), the term `energy management device'
means any meter or metering device which is used by the
taxpayer--
``(i) to measure and record electricity
usage data on a time-differentiated basis in at
least 4 separate time segments per day, and
``(ii) to provide such data on at least a
monthly basis to both consumers and the
taxpayer.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 337. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF
QUALIFIED WATER SUBMETERING DEVICES.
(a) In General.--Section 168(e)(3)(A) of the Internal Revenue Code
of 1986 (defining 3-year property), as amended by this Act, 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) any qualified water submetering
device.''.
(b) Definition of Qualified Water Submetering Device.--Section
168(i) of the Internal Revenue Code of 1986 (relating to definitions
and special rules), as amended by this Act, is amended by inserting at
the end the following new paragraph:
``(19) Qualified water submetering device.--
``(A) In general.--The term `qualified water
submetering device' means any water submetering device
which is placed in service before January 1, 2015, by a
taxpayer who is an eligible resupplier with respect to
the unit for which the device is placed in service.
``(B) Water submetering device.--For purposes of
this paragraph, the term `water submetering device'
means any submetering device which is used by the
taxpayer--
``(i) to measure and record water usage
data, and
``(ii) to provide such data on at least a
monthly basis to both consumers and the
taxpayer.
``(C) Eligible resupplier.--For purposes of
subparagraph (A), the term `eligible resupplier' means
any taxpayer who purchases and installs qualified water
submetering devices in every unit in any multi-unit
property.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
Subtitle E--Utilizing America's Abundant Coal Supplies Cleanly
SEC. 341. CLEAN ENERGY COAL BONDS.
(a) In General.--Subpart H of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 54A. CREDIT TO HOLDERS OF CLEAN ENERGY COAL BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a clean energy coal
bond on 1 or more credit allowance dates of the bond occurring during
any taxable year, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to the sum
of the credits determined under subsection (b) with respect to such
dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a clean energy coal bond is 25 percent of the annual credit
determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any clean energy coal bond is the product of--
``(A) the credit rate determined by the Secretary
under paragraph (3) for the day on which such bond was
sold, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Determination.--For purposes of paragraph (2), with
respect to any clean energy coal bond, the Secretary shall
determine daily or cause to be determined daily a credit rate
which shall apply to the first day on which there is a binding,
written contract for the sale or exchange of the bond. The
credit rate for any day is the credit rate which the Secretary
or the Secretary's designee estimates will permit the issuance
of clean energy coal bonds with a specified maturity or
redemption date without discount and without interest cost to
the qualified issuer.
``(4) Credit allowance date.--For purposes of this section,
the term `credit allowance date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term also includes the last day on which the bond is
outstanding.
``(5) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--The credit allowed under
subsection (a) for any taxable year shall not exceed the excess of--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under this part
(other than subpart C, this subpart and section 1400N(l)).
``(d) Clean Energy Coal Bond.--For purposes of this section--
``(1) In general.--The 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 (f)(2),
``(B) 95 percent or more of the 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) the issue meets the requirements of
subsection (h).
``(2) Qualified project; special use rules.--
``(A) In general.--The term `qualified project'
means a qualifying advanced coal project (as defined in
section 48A(c)(1)) placed in service by a qualified
borrower.
``(B) Refinancing rules.--For 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) Reimbursement.--For 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) the reimbursement is made not later
than 18 months after the date the original
expenditure is paid.
``(D) Treatment of changes in use.--For 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.
``(e) Maturity Limitations.--
``(1) Duration of term.--A bond shall not be treated as a
clean energy coal bond if the maturity of such bond exceeds the
maximum term determined by the Secretary under paragraph (2)
with respect to such bond.
``(2) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under this
paragraph for bonds issued during the following calendar month.
Such maximum term shall be the term which the Secretary
estimates will result in the present value of the obligation to
repay the principal on the bond being equal to 50 percent of
the face amount of such bond. Such present value shall be
determined without regard to the requirements of subsection
(l)(6) and using as a discount rate the average annual interest
rate of tax of tax-exempt obligations having a term of 10 years
or more which are issued during the month. If the term as so
determined is not a multiple of a whole year, such term shall
be rounded to the next highest whole year.
``(f) Limitation on Amount of Bonds Designated.--
``(1) National limitation.--There is a national clean
energy coal bond limitation of $1,000,000,000.
``(2) Allocation by secretary.--The Secretary shall
allocate the amount described in paragraph (1) among qualified
projects in such manner as the Secretary determines
appropriate, but shall reserve half of the amount allocated to
projects designed and operated to capture carbon dioxide
emissions and to isolate such emissions permanently from the
atmosphere.
``(g) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed to the taxpayer under this section
(determined without regard to subsection (c)) and the amount so
included shall be treated as interest income.
``(h) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of issuance,
the qualified issuer reasonably expects--
``(A) at least 95 percent of the 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 the 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
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 proceeds from the sale of the issue
will be spent with due diligence.
``(2) Extension of period.--Upon 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 years.--To the extent that less than 95 percent of the
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.
``(i) Special Rules Relating to Arbitrage.--A bond which is part of
an issue shall not be treated as a clean energy coal bond unless, with
respect to the issue of which the bond is a part, the qualified issuer
satisfies the arbitrage requirements of section 148 with respect to
proceeds of the issue.
``(j) Cooperative Electric Company; Qualified Energy Tax Credit
Bond Lender; Governmental Body; Qualified Borrower.--For purposes of
this section--
``(1) Cooperative electric company.--The 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 lender.--The 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) Governmental body.--The term `governmental body'
means any State, territory, possession of the United States,
the District of Columbia, Indian tribal government, and any
political subdivision.
``(4) Qualified issuer.--The term `qualified issuer'
means--
``(A) a clean energy bond lender,
``(B) a cooperative electric company, or
``(C) a governmental body.
``(5) Qualified borrower.--The 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 governmental body.
``(k) Special Rules Relating to Pool Bonds.--No 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.
``(l) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Bond.--The term `bond' includes any obligation.
``(2) Pooled financing bond.--The term `pooled financing
bond' shall have the meaning given such term by section
149(f)(4)(A).
``(3) Partnership; s corporation; and other pass-thru
entities.--
``(A) In general.--Under regulations prescribed by
the Secretary, in the case of a partnership, trust, S
corporation, or other pass-thru entity, rules similar
to the rules of section 41(g) shall apply with respect
to the credit allowable under subsection (a).
``(B) No basis adjustment.--Rules similar to the
rules under section 1397E(i)(2) shall apply.
``(4) Bonds held by regulated investment companies.--If any
clean energy coal bond is held by a regulated investment
company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures
prescribed by the Secretary.
``(5) Treatment for estimated tax purposes.--Solely for
purposes of sections 6654 and 6655, the credit allowed by this
section to a taxpayer by reason of holding a clean energy coal
bond on a credit allowance date shall be treated as if it were
a payment of estimated tax made by the taxpayer on such date.
``(6) Ratable principal amortization required.--A bond
shall not be treated as a clean energy coal bond unless it is
part of an issue which provides for an equal amount of
principal to be paid by the qualified issuer during each
calendar year that the issue is outstanding.
``(7) Reporting.--Issuers of clean energy coal bonds shall
submit reports similar to the reports required under section
149(e).
``(m) Termination.--This section shall not apply with respect to
any bond issued after December 31, 2010.''.
(b) Reporting.--Subsection (d) of section 6049 of the Internal
Revenue Code of 1986 (relating to returns regarding payments of
interest) is amended by adding at the end the following new paragraph:
``(9) Reporting of credit on clean energy coal bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 54A(g) and such amounts
shall be treated as paid on the credit allowance date
(as defined in section 54A(b)(4)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A), subsection
(b)(4) shall be applied without regard to subparagraphs
(A), (H), (I), (J), (K), and (L)(i) of such subsection.
``(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''.
(c) Clerical Amendment.--The table of sections for subpart H 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. 54A. Credit to holders of clean energy coal bonds.''.
(d) Issuance of Regulations.--The Secretary of the Treasury shall
issues regulations required under section 54A of the Internal Revenue
Code of 1986 (as added by this section) not later than 120 days after
the date of the enactment of this Act.
(e) Effective Date.--The amendments made by this section shall
apply to bonds issued after December 31, 2005.
SEC. 342. EXTENSION AND EXPANSION OF QUALIFYING ADVANCED COAL PROJECT
CREDIT.
(a) Expanding Aggregate Credits.--Section 48A(d)(3)(A) of the
Internal Revenue Code of 1986 (relating to aggregate credits) is
amended by striking ``$1,300,000,000'' and inserting
``$2,300,000,000''.
(b) Authorization of Additional Integrated Gasification Combined
Cycle Projects.--Subparagraph (B) of section 48A(d)(3) of the Internal
Revenue Code of 1986 (relating to aggregate credits) is amended to read
as follows:
``(B) Particular projects.--Of the dollar amount in
subparagraph (A), the Secretary is authorized to
certify--
``(i) $800,000,000 for integrated
gasification combined cycle projects the
application for which is submitted during the
period described in paragraph (2)(A)(i),
``(ii) $500,000,000 for projects which use
other advanced coal-based generation
technologies the application for which is
submitted during the period described in
paragraph (2)(A)(i), and
``(iii) $1,000,000,000 for integrated
gasification combined cycle projects the
application for which is submitted during the
period described in paragraph (2)(A)(ii) and
which are designed and operated to capture
carbon dioxide emissions and isolate such
emissions permanently from the atmosphere.''.
(c) Application Period for Additional Projects.--Subparagraph (A)
of section 48A(d)(2) of the Internal Revenue Code of 1986 (relating to
certification) is amended to read as follows:
``(A) Application period.--Each applicant for
certification under this paragraph shall submit an
application meeting the requirements of subparagraph
(B). An applicant may only submit an application--
``(i) for an allocation from the dollar
amount specified in clause (i) or (ii) of
paragraph (3)(A) during the 3-year period
beginning on the date the Secretary establishes
the program under paragraph (1), and
``(ii) for an allocation from the dollar
amount specified in paragraph (3)(A)(iii)
during the 3-year period beginning at the
termination of the period described in clause
(i).''.
(d) Modification of Qualifying Advanced Coal Project Credit.--
Subparagraph (C) of section 48A(e)(1) of the Internal Revenue Code of
1986 is amended by inserting ``(300 megawatts in the case of projects
using subbituminous or lignite as a primary feedstock)'' after ``400
megawatts''.
(e) Effective Date.--The amendments made by this section shall take
effect as if included in the amendments made by section 1307 of the
Energy Policy Act of 2005.
SEC. 343. EXPANSION OF QUALIFYING GASIFICATION PROJECT CREDIT.
(a) Increasing Credit Limit.--Section 48B(d)(1) of the Internal
Revenue Code of 1986 is amended by striking ``$350,000,000'' and
inserting ``$1,000,000,000''.
(b) Expansion.--Section 48B(d)(3) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``and '' at the end of subparagraph (E),
(2) by redesignating subparagraph (F) as subparagraph (G),
and
(3) by inserting after subparagraph (E) the following new
subparagraph:
``(F) the proposed project is designed and operated
to capture carbon dioxide emissions and isolate such
emissions permanently from the atmosphere, and''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the amendments made by section 1307 of the
Energy Policy Act of 2005.
SEC. 344. COAL-TO-LIQUID AND BIOMASS TRANSPORTATION FUELS.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Biomass.--The term ``biomass'' has the meaning given
the term in section 203(b) of the Energy Policy Act of 2005 (42
U.S.C. 15852(b)).
(3) Coal-to-liquid.--The term ``coal-to-liquid'' means--
(A) with respect to a process or technology, the
use of coal resources of the United States to produce a
liquid transportation fuel, including diesel and jet
fuels; and
(B) with respect to a facility, the use at the
facility of a process or technology described in
subparagraph (A).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Research Program.--
(1) In general.--The Secretary, in coordination with the
Administrator and the Secretary of Defense and in consultation
with the States, shall periodically conduct assessments of the
costs and benefits of coal-to-liquid and biomass programs in
the United States, including an analysis of--
(A) technology relating to those programs;
(B) the potential effects of those programs on--
(i) air and water quality;
(ii) the public health;
(iii) greenhouse gas emissions and the
permanent sequestration of those emissions; and
(iv) the economy;
(C) levels of investment required to make
commercial coal-to-liquid and biomass production
economical; and
(D) the national security impacts of various levels
of coal-to-liquid and biomass production during the 20-
year period beginning on the date on which the initial
assessment is conducted.
(2) Reports.--Not later than 1 year after the date of
enactment of this Act, and every 2 years thereafter, the
Secretary shall submit to Congress a report describing the
results of the applicable analysis under paragraph (1),
including recommendations for the appropriate level of
development of coal-to-liquid and biomass programs, and
programs using any other appropriate resources, to promote a
reduction in greenhouse gas emissions from the quantity of
those emissions that would have occurred using only petroleum-
based fuels.
(3) Advisory committee.--The Secretary shall establish an
advisory committee to advise the Secretary in carrying out
analyses and reports under this subsection.
(4) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $100,000,000, to remain available until expended.
(c) Refinery Diversification Grant Program.--
(1) Establishment.--Not later than 1 year after the date on
which the initial report under subsection (b)(2) is submitted,
the Secretary, in consultation with the Administrator, may
establish a program under which the Secretary may provide not
more than 6 competitive grants to support the commercial
deployment in the United States of coal-to-liquid refineries.
(2) Eligible projects.--A project shall be eligible to
receive a grant under this subsection if, as determined by the
Secretary--
(A) the purpose of the project is to deploy in the
United States a coal-to-liquid refinery;
(B) the project supports the diversification of
coal-producing regions and coal ranks throughout the
United States;
(C) the developer of the project would be
financially viable without receiving a grant under this
subsection;
(D) the project site has been identified;
(E) a preliminary feasibility study of the project
has been completed;
(F) a long-term source of coal has been identified
and secured for the project; and
(G) the refinery that is the subject of the project
will--
(i) have a production capacity of at least
12,000 barrels per day; and
(ii) be designed and operated to capture
carbon dioxide emissions and permanently
isolate those emissions from the atmosphere,
including by the integration of enhanced oil
recovery or enhanced natural gas recovery.
(3) Use of funds.--A grant provided under this subsection
shall be used to pay the costs associated with deploying in the
United States a coal-to-liquid refinery, including the costs of
preliminary engineering and engineering design specifications
for the refinery.
(4) Maximum amount.--The amount of a grant provided under
this subsection shall not exceed $50,000,000.
(5) Reports.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter until the date
on which funds made available to carry out this subsection are
expended, the Secretary shall submit to Congress a report
describing the status of each project that received a grant
under this subsection during the preceding calendar year.
(6) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $300,000,000, to remain available until expended.
TITLE IV--REAL GOVERNMENT LEADERSHIP FOR CLEAN AND SECURE ENERGY
Subtitle A--Federal Biofuels and Efficient Vehicle Use Leadership
SEC. 401. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL
PURCHASING REQUIREMENT.
(a) In General.--Title III of the Energy Policy Act of 1992 is
amended by striking section 306 (42 U.S.C. 13215) and inserting the
following:
``SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL
PURCHASING REQUIREMENT.
``(a) Ethanol-Blended Gasoline.--The head of each Federal agency
shall ensure that, in areas in which ethanol-blended gasoline is
reasonably available at a generally competitive price, the Federal
agency purchases ethanol-blended gasoline containing at least 10
percent ethanol, rather than gasoline that is not ethanol-blended, for
use in vehicles used by the agency that use gasoline.
``(b) Biodiesel.--
``(1) Definition of biodiesel.--In this subsection, the
term `biodiesel' has the meaning given the term in section
312(f).
``(2) Requirement.--The head of each Federal agency shall
ensure that the Federal agency purchases, for use in fueling
fleet vehicles that use diesel fuel used by the Federal agency
at the location at which fleet vehicles of the Federal agency
are centrally fueled, in areas in which the biodiesel-blended
diesel fuel described in subparagraphs (A) and (B) is available
at a generally competitive price--
``(A) as of the date that is 5 years after the date
of enactment of this paragraph, biodiesel-blended
diesel fuel that contains at least 20 percent
biodiesel, rather than diesel fuel that is not
biodiesel-blended; and
``(B) as of the date that is 10 years after the
date of enactment of this paragraph, biodiesel-blended
diesel fuel that contains at least 80 percent
biodiesel, rather than diesel fuel that is not
biodiesel-blended.
``(3) Requirement of federal law.--This subsection shall
not be considered a requirement of Federal law for the purposes
of section 312.
``(c) Exemption.--This section does not apply to fuel used in
vehicles excluded from the definition of `fleet' by subparagraphs (A)
through (H) of section 301(9).''.
SEC. 402. USE OF THE EXISTING FLEXIBLE FUEL VEHICLE FLEET OF THE
FEDERAL GOVERNMENT.
(a) Use of Alternative Fuels by Flexible Fuel Vehicles.--Section
400AA(a)(3) of the Energy Policy and Conservation Act (42 U.S.C.
6374(a)(3)) is amended by striking subparagraph (E) and inserting the
following:
``(E)(i) Flexible fuel vehicles acquired pursuant
to this section shall be operated on alternative fuels
unless the Secretary determines that an agency
qualifies for a waiver of that requirement for vehicles
operated by the agency in a particular geographic area
in which--
``(I) the alternative fuel otherwise
required to be used in the vehicle is not
reasonably available to retail purchasers of
the fuel, as certified to the Secretary by the
head of the agency; or
``(II) the cost of the alternative fuel
otherwise required to be used in the vehicle is
unreasonably more expensive compared to
gasoline, as certified to the Secretary by the
head of the agency.
``(ii) The Secretary shall monitor compliance with
this subparagraph by all agency fleets and shall submit
annually to Congress a report that--
``(I) describes the extent to which the
requirements of this subparagraph are being
achieved; and
``(II) includes information on annual
reductions achieved from the use of petroleum-
based fuels and the problems, if any,
encountered in acquiring alternative fuels.''.
(b) Alternative Compliance and Flexibility.--The Energy Policy Act
of 1992 is amended by striking section 514 (42 U.S.C. 13263a) and
inserting the following:
``SEC. 514. ALTERNATIVE COMPLIANCE.
``(a) Application for Waiver.--Any head of a Federal agency
described in section 303(b)(3), any covered person subject to section
501, and any State subject to section 507(o) may petition the Secretary
for a waiver of the applicable requirements of section 303, 501, or
507(o).
``(b) Grant of Waiver.--The Secretary may grant a waiver of the
requirements of section 303, 501, or 507(o) upon a showing that the
fleet owned, operated, leased, or otherwise controlled by the Federal
agency, State, or covered person--
``(1) will achieve a reduction in its annual consumption of
petroleum fuels equal to--
``(A) the reduction in consumption of petroleum
that would result from 100 percent compliance with fuel
use requirements in section 303 or 501, as appropriate;
or
``(B) for entities covered under section 507(o), a
reduction equal to the covered entity's consumption of
alternative fuels if all its alternative fuel vehicles
given credit under section 508 were to use alternative
fuel 100 percent of the time; and
``(2) is in compliance with all applicable vehicle emission
standards established by the Administrator under the Clean Air
Act (42 U.S.C. 7401 et seq.).
``(c) Revocation of Waiver.--The Secretary shall revoke any waiver
granted under this section if the Federal agency, State, or covered
person fails to comply with subsection (b).''.
SEC. 403. STANDARDS FOR EXECUTIVE AGENCY AUTOMOBILES.
Section 32917 of title 49, United States Code, is amended to read
as follows:
``Sec. 32917. Standards for executive agency automobiles
``(a) Definitions.--In this section:
``(1) Automobile.--The term `automobile' does not include
any vehicle designed for combat-related missions, law
enforcement work, or emergency rescue work.
``(2) Executive agency.--The term `Executive agency' has
the meaning given that term in section 105 of title 5.
``(3) New automobile.--The term `new automobile', with
respect to the fleet of automobiles of an executive agency,
means an automobile that is leased for at least 60 consecutive
days or bought, by or for the Executive agency, after September
30, 2004.
``(b) Baseline Average Fuel Economy.--
``(1) In general.--In accordance with guidance issued under
subsection (e), the head of each Executive agency shall
calculate, for all automobiles in the Executive agency's fleet
of automobiles that were leased or bought as new vehicles in
fiscal year 2004, the average fuel economy for the automobiles.
``(2) Baseline.--For purposes of this section, the average
fuel economy as calculated in paragraph (1) shall be the
baseline average fuel economy for the Executive agency's fleet
of automobiles.
``(c) Increase of Average Fuel Economy.--The head of an Executive
agency shall manage the procurement of automobiles for that Executive
agency so that not later than September 30, 2008, the average fuel
economy of the new automobiles in the Executive agency's fleet of
automobiles is not less than 3 miles per gallon higher than the
baseline average fuel economy determined under subsection (b) for that
fleet.
``(d) Fuel Efficiency.--The head of an Executive agency shall
ensure that each new automobile procured by the Executive agency is as
fuel efficient as practicable.
``(e) Calculation of Average Fuel Economy.--The Secretary of
Transportation shall issue guidance to carry out this section,
including guidance for the calculation of average fuel economy.''.
SEC. 404. FEDERAL FLEET CONSERVATION REQUIREMENTS.
(a) In General.--Part J of title IV of the Energy Policy and
Conservation Act (42 U.S.C. 6374 et seq.) is amended by adding at the
end the following:
``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.
``(a) Mandatory Reduction in Petroleum Consumption.--
``(1) In general.--The Secretary shall issue regulations
for Federal fleets subject to section 400AA requiring that each
Federal agency--
``(A) not later than October 1, 2012, achieve at
least a 20 percent reduction in petroleum consumption,
as calculated from the baseline established by the
Secretary for fiscal year 1999; and
``(B) not later than October 1, 2020, achieve at
least a 40 percent reduction in petroleum consumption,
as calculated from the baseline established by the
Secretary for fiscal year 1999.
``(2) Plan.--
``(A) Requirement.--The regulations shall require
each Federal agency to develop a plan to meet the
required petroleum reduction level.
``(B) Measures.--The plan may allow an agency to
meet the required petroleum reduction level through--
``(i) the use of alternative fuels;
``(ii) the acquisition of vehicles with
higher fuel economy, including hybrid vehicles;
``(iii) the substitution of cars for light
trucks;
``(iv) an increase in vehicle load factors;
``(v) a decrease in vehicle miles traveled;
``(vi) a decrease in fleet size; and
``(vii) other measures.
``(C) Replacement tires.--The regulations shall
include a requirement that each Federal agency purchase
energy-efficient replacement tires for the respective
fleet vehicles of the agency.
``(b) Federal Employee Incentive Programs for Reducing Petroleum
Consumption.--
``(1) In general.--Each Federal agency shall actively
promote incentive programs that encourage Federal employees and
contractors to reduce petroleum through the use of practices
such as--
``(A) telecommuting;
``(B) public transit;
``(C) carpooling; and
``(D) bicycling.
``(2) Monitoring and support for incentive programs.--The
Administrator of the General Services Administration, the
Director of the Office of Personnel Management, and the
Secretary of the Department of Energy shall monitor and provide
appropriate support to agency programs described in paragraph
(1).''.
(b) Table of Contents Amendment.--The table of contents of the
Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by
adding at the end of the items relating to part J of title III the
following:
``Sec. 400FF. Federal fleet conservation requirements''
Subtitle B--Federal Clean and Efficient Energy Leadership
SEC. 411. FEDERAL LEADERSHIP ON CLEAN ENERGY PURCHASING.
Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is
amended by striking subsection (a) and inserting the following:
``(a) Requirement.--The President, acting through the Secretary,
shall ensure that, of the total quantity of electric energy the Federal
Government consumes during any fiscal year, the following amounts shall
be renewable energy:
``(1) Not less than 5 percent in each of fiscal years 2008
and 2009.
``(2) Not less than 7.5 percent in each of fiscal years
2010 through 2012.
``(3) Not less than 10 percent in fiscal year 2013 and each
fiscal year thereafter.''.
SEC. 412. CLEAN AND SECURE BACKUP POWER AT FEDERAL FACILITIES.
Not later than 1 year after the date of enactment of this Act, the
Director of the Office of Management and Budget, the Secretary of
Defense, and the Secretary of Homeland Security shall jointly
promulgate regulations establishing requirements applicable to all
Federal agency procurement actions, and to any Federal funds being
used, for the purpose of buying or replacing emergency backup power or
off-grid energy or electricity sources, with a strong procurement
preference for clean emergency backup power or distributed or off-grid
electricity generation or energy storage units that--
(1) emit no or very low air emissions during use or the
energy storage process, such as--
(A) fuel cells;
(B) integrated solar panels and battery systems;
and
(C) pumped hydroelectric storage; and
(2) to the extent practicable, do not depend primarily on
fossil fuel or fossil fuel delivery systems.
SEC. 413. ELIMINATING VAMPIRE ELECTRONIC DEVICES.
(a) Definitions.--In this section:
(1) Agency.--
(A) In general.--The term ``Agency'' has the
meaning given the term ``Executive agency'' in section
105 of title 5, United States Code.
(B) Inclusions.--The term ``Agency'' includes
military departments, as the term is defined in section
102 of title 5, United States Code.
(2) Eligible product.--The term ``eligible product'' means
a commercially available, off-the-shelf product that--
(A)(i) uses external standby power devices; or
(ii) contains an internal standby power function;
and
(B) is included on the list compiled under
subsection (d).
(b) Federal Purchasing Requirement.--Subject to subsection (c), if
an Agency purchases an eligible product, the Agency shall purchase--
(1) an eligible product that uses not more than 1 watt in
the standby power consuming mode of the eligible product; or
(2) if an eligible product described in paragraph (1) is
not available, the eligible product with the lowest available
standby power wattage in the standby power consuming mode of
the eligible product.
(c) Limitation.--The requirements of subsection (b) shall apply to
a purchase by an Agency only if--
(1) the lower-wattage eligible product is--
(A) lifecycle cost-effective; and
(B) practicable; and
(2) the utility and performance of the eligible product is
not compromised by the lower wattage requirement.
(d) Eligible Products.--
(1) In general.--The Secretary of Energy, in consultation
with the Secretary of Defense and the Administrator of General
Services, shall compile a list of cost-effective eligible
products that shall be subject to the purchasing requirements
of subsection (b).
(2) Energy star program.--The Administrator of the
Environmental Protection Agency shall incorporate the list of
eligible products into the Energy Star program established by
section 324A(a) of the Energy Policy and Conservation Act (42
U.S.C. 6294a(a)).
SEC. 414. PROMOTING FEDERAL LEADERSHIP IN ENERGY MANAGEMENT.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Director of the Office of Federal Procurement Policy
and the Under Secretary of Defense for Acquisition, Technology, and
Logistics shall, after consultation with private sector voluntary
standard setting organizations focused on increasing energy and
environmental performance, jointly promulgate revisions to the
applicable acquisition regulations--
(1) to direct any Federal procurement executives involved
in the acquisition, construction, or major renovation
(including contracting for the construction or major
renovation) of any building--
(A) to employ integrated design principles;
(B) to improve site selection for environmental and
community benefits;
(C) to protect and conserve water;
(D) to enhance indoor environmental quality; and
(E) to reduce environmental impacts of materials
and waste flows;
(2) to direct Federal procurement executives involved in
leasing buildings, to give preference to the lease of
buildings--
(A) that are energy efficient; and
(B) to which contemporary high performance and
sustainable design principles have been applied during
construction or renovation; and
(3) that shall be effective on promulgation of the
regulations.
(b) Guidance.--Not later than 90 days after promulgation of the
regulations under subsection (a), the Director and the Under Secretary
shall issue guidance to each Federal procurement executive providing
direction and instructions to renegotiate existing buildings and
facilities leases to obtain improvements in accordance with this
section.
SEC. 415. RETENTION OF SAVINGS FROM ENERGY SAVINGS PERFORMANCE
CONTRACTS.
(a) Retention of Savings.--Section 546(c) of the National Energy
Conservation Policy Act (42 U.S.C. 8256(c)) is amended by striking
paragraph (5).
(b) Financing Flexibility.--Section 801(a)(2) of the National
Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)) is amended by
adding at the end the following:
``(E) Separate contracts.--In carrying out a
contract under this title, a Federal agency may--
``(i) enter into a separate contract for
energy services and conservation measures under
the contract; and
``(ii) provide all or part of the financing
necessary to carry out the contract.''.
(c) Definition of Energy Savings.--Section 804(2) of the National
Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively, and indenting
appropriately;
(2) by striking ``means a reduction'' and inserting
``means''--
``(A) a reduction'';
(3) by striking the period at the end and inserting a
semicolon; and
(4) by adding at the end the following:
``(B) the increased efficient use of an existing
energy source by cogeneration or heat recovery and
installation of renewable energy systems;
``(C) the sale or transfer of electrical or thermal
energy generated on-site, but in excess of Federal
needs, to utilities or non-Federal energy users; and
``(D) the increased efficient use of existing water
sources in interior or exterior applications.''.
(d) Energy and Cost Savings in Nonbuilding Applications.--
(1) Definitions.--In this subsection:
(A) Nonbuilding application.--The term
``nonbuilding application'' means--
(i) any class of vehicles, devices, or
equipment that is transportable under the power
of the applicable vehicle, device, or equipment
by land, sea, or air and that consumes energy
from any fuel source for the purpose of--
(I) that transportation; or
(II) maintaining a controlled
environment within the vehicle, device,
or equipment; and
(ii) any federally-owned equipment used to
generate electricity or transport water.
(B) Secondary savings.--
(i) In general.--The term ``secondary
savings'' means additional energy or cost
savings that are a direct consequence of the
energy savings that result from the energy
efficiency improvements that were financed and
implemented pursuant to an energy savings
performance contract (as defined in section
423(a)).
(ii) Inclusions.--The term ``secondary
savings'' includes--
(I) energy and cost savings that
result from a reduction in the need for
fuel delivery and logistical support;
(II) personnel cost savings and
environmental benefits; and
(III) in the case of electric
generation equipment, the benefits of
increased efficiency in the production
of electricity, including revenues
received by the Federal Government from
the sale of electricity produced.
(C) Secretary.--The term ``Secretary'' means the
Secretary of Energy.
(2) Study.--
(A) In general.--As soon as practicable after the
date of enactment of this Act, the Secretary and the
Secretary of Defense shall jointly conduct a study of
the potential for the use of energy savings performance
contracts to reduce energy consumption and provide
energy and cost savings in nonbuilding applications.
(B) Requirements.--The study under this subsection
shall include--
(i) an estimate of the potential energy and
cost savings to the Federal Government,
including secondary savings and benefits, from
increased efficiency in nonbuilding
applications;
(ii) an assessment of the feasibility of
extending the use of energy savings performance
contracts to nonbuilding applications,
including an identification of any regulatory
or statutory barriers to such use; and
(iii) such recommendations as the Secretary
and the Secretary of Defense determine to be
appropriate.
(3) Report.--On completion of the study under paragraph
(2), the Secretary and the Secretary of Defense shall submit to
the President and the appropriate committees of Congress a
report that describes--
(A) the results of the study; and
Subtitle C--State, Tribal, and Local Clean and Efficient Energy
Leadership
SEC. 421. FREEDOM FROM FOSSIL FUELS (F4) BONDS.
(a) In General.--Subpart H of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to credits against tax),
as amended by this Act, is amended by adding at the end the following
new section:
``SEC. 54B. CREDIT TO HOLDERS OF FREEDOM FROM FOSSIL FUELS (F4) BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a Freedom from
Fossil Fuels (F4) bond on 1 or more credit allowance dates of the bond
occurring during any taxable year, there shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the sum of the credits determined under subsection (b) with
respect to such dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a Freedom from Fossil Fuels (F4) bond is 25 percent of the
annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any Freedom from Fossil Fuels (F4) bond is the
product of--
``(A) the credit rate determined by the Secretary
under paragraph (3) for the day on which such bond was
sold, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Determination.--For purposes of paragraph (2), with
respect to any Freedom from Fossil Fuels (F4) bond, the
Secretary shall determine daily or cause to be determined daily
a credit rate which shall apply to the first day on which there
is a binding, written contract for the sale or exchange of the
bond. The credit rate for any day is the credit rate which the
Secretary or the Secretary's designee estimates will permit the
issuance of Freedom from Fossil Fuels (F4) bonds with a
specified maturity or redemption date without discount and
without interest cost to the issuing governmental body.
``(4) Credit allowance date.--For purposes of this section,
the term `credit allowance date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term also includes the last day on which the bond is
outstanding.
``(5) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
part (other than subpart C, section 1400N(l), and this
subpart).
``(2) Carryforward of unused credit.--If the credit
allowable under subsection (a) exceeds the limitation imposed
by paragraph (1) for such taxable year, such excess shall be
carried to each of the 5 taxable years following the unused
credit year and added to the credit allowable under subsection
(a) for each such taxable year, subject to the application of
paragraph (1) to such taxable year.
``(d) Freedom From Fossil Fuels (F4) Bond.--For purposes of this
section--
``(1) In general.--The term `Freedom from Fossil Fuels (F4)
bond' means any bond issued as part of an issue if--
``(A) the bond is issued by a governmental body
pursuant to an allocation by the Freedom from Fossil
Fuels (F4) Bonds Board to such issuer of a portion of
the Freedom from Fossil Fuels (F4) bond limitation
under subsection (f)(2),
``(B) 95 percent or more of the proceeds from the
sale of such issue are to be used for capital
expenditures incurred for 1 or more qualified fossil
fuel use reduction projects,
``(C) the issuer designates such bond for purposes
of this section and the bond is in registered form,
``(D) such bond satisfies public approval
requirements similar to the requirements of section
147(f)(2),
``(E) except as provided in paragraph (4)(B), the
payment of the principal of such issue is secured by
taxes of general applicability imposed by a general
purpose governmental unit, and
``(F) the issue meets the requirements of
subsection (h).
``(2) Qualified fossil fuel use reduction project.--
``(A) In general.--The term `a qualified fossil
fuel use reduction project' means any project that will
reduce oil and fossil fuel consumption, including--
``(i) transit oriented development,
``(ii) public transit infrastructure,
``(iii) alternative fuels vehicles and
infrastructure,
``(iv) nonpetroleum vehicle manufacturing
facilities,
``(v) energy efficiency and energy demand
reduction,
``(vi) greenhouse gas reduction programs
and systems, and
``(vii) telecommuting programs.
``(B) Qualified property.--The term `qualified
property' means real property--
``(i) which is, or is to be, owned by--
``(I) a governmental body, or
``(II) an organization described in
section 501(c)(3) and exempt from
taxation under section 501(a) and which
has as one if its purposes
environmental preservation, and
``(ii) which is reasonably anticipated to
be available for use by members of the general
public, unless such use would change the
character of the property and be contrary to
the qualified use of the property.
``(C) Safe harbor for management contracts.--For
purposes of subparagraph (B), property shall not be
treated as qualified property if any rights or benefits
of such property inure to a private person other than
rights or benefits under a management contract or
similar type of operating agreement to which rules
similar to the rules applicable to tax-exempt bonds
apply.
``(D) Limit on disposition of property.--Any
disposition of any interest in property acquired or
improved in connection with a qualified fossil fuel use
reduction project described in this paragraph (except a
project described in subparagraph (A)(v)) shall contain
an option (recorded pursuant to applicable State or
local law) to purchase such property for an amount
equal to the original acquisition price of such
property for any interested organizations described in
subparagraph (B)(i)(II) if such organization purchases
such property subject to a restrictive covenant
requiring a continued qualified use of such property.
``(E) Qualified use.--The term `qualified use'
means, with respect to property, a use which is
consistent with the purpose of the qualified fossil
fuel use reduction project related to such property.
``(3) Special use rules.--
``(A) Refinancing rules.--For purposes of paragraph
(1)(B), a qualified fossil fuel use reduction project
may be refinanced with proceeds of a Freedom from
Fossil Fuels (F4) bond only if the indebtedness being
refinanced (including any obligation directly or
indirectly refinanced by such indebtedness) was
originally incurred by the borrower after the date of
the enactment of this section.
``(B) Reimbursement.--For purposes of paragraph
(1)(B), a Freedom from Fossil Fuels (F4) bond may be
issued to reimburse a borrower for amounts paid after
the date of the enactment of this section with respect
to a qualified fossil fuel use reduction project, but
only if--
``(i) prior to the payment of the original
expenditure, the borrower declared its intent
to reimburse such expenditure with the proceeds
of a Freedom from Fossil Fuels (F4) bond,
``(ii) not later than 60 days after payment
of the original expenditure, the issuer adopts
an official intent to reimburse the original
expenditure with such proceeds, and
``(iii) the reimbursement is made not later
than 18 months after the date the original
expenditure is paid.
``(C) Treatment of changes in use.--For purposes of
paragraph (1)(B), the proceeds of an issue shall not be
treated as used for a qualified fossil fuel use
reduction project to the extent that a borrower takes
any action within its control which causes such
proceeds not to be used for a qualified fossil fuel use
reduction 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
Freedom from Fossil Fuels (F4) bond.
``(4) Special rules for projects described in paragraph
(2)(a)(v).--
``(A) Limit on use of proceeds for project.--This
subsection shall not apply to any bond issued as part
of an issue if an amount of the proceeds from such
issue are used for a qualified fossil fuel use
reduction project described in paragraph (2)(A)(v) and
involving public infrastructure in excess of an amount
equal to 5 percent of the total amount of such proceeds
used for all projects described in such paragraph
(2)(A)(v).
``(B) Private use and repayment of proceeds.--In
the case of proceeds of an issue which are used for a
qualified fossil fuel use reduction project described
in paragraph (2)(A)(v), the issue of which such bonds
are a part shall not fail to meet the requirements of
this subsection solely because the proceeds of a
disposition of any interest in such property are used
to redeem such bonds as long as the purchaser of such
property makes an irrevocable election not to claim any
deduction with respect to such project under section
198.
``(e) Maturity Limitations.--
``(1) Duration of term.--A bond shall not be treated as a
Freedom from Fossil Fuels (F4) bond if the maturity of such
bond exceeds the maximum term determined by the Secretary under
paragraph (2) with respect to such bond.
``(2) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under this
paragraph for bonds issued during the following calendar month.
Such maximum term shall be the term which the Secretary
estimates will result in the present value of the obligation to
repay the principal on the bond being equal to 50 percent of
the face amount of such bond. Such present value shall be
determined without regard to the requirements of subsection
(l)(6) and using as a discount rate the average annual interest
rate of tax of tax-exempt obligations having a term of 10 years
or more which are issued during the month. If the term as so
determined is not a multiple of a whole year, such term shall
be rounded to the next highest whole year.
``(f) Limitation on Amount of Bonds Designated.--
``(1) In general.--There is a Freedom from Fossil Fuels
(F4) bond limitation for each calendar year equal to--
``(A) $3,000,000,000 for each of years 2007 through
2014, and
``(B) except as provided in paragraph (3), zero
after 2014.
``(2) Allocation of limitation among governmental bodies.--
``(A) In general.--The limitation amount to be
allocated under paragraph (1) for any calendar year
shall be allocated among governmental bodies with an
approved application on a competitive basis by the
Freedom from Fossil Fuels (F4) Bonds Board (referred to
in this subsection as the `Board') established under
section 161 of the Clean Energy Development for a
Growing Economy Act of 2006.
``(B) Approved application.--For purposes of
subparagraph (A), the term `approved application' means
an application which is approved by the Board, and
which includes such information as the Board requires.
``(C) Allocation to each governmental body.--The
Board shall, in accordance with the criteria for
approval of applications, allocate amounts in any
calendar year to at least 1 approved application from
each governmental body which submits such application.
``(3) Carryover of unused limitation.--If for any calendar
year--
``(A) the limitation amount under paragraph (1),
exceeds
``(B) the aggregate limitation amount allocated to
governmental bodies under this section,
the limitation amount under paragraph (1) for the following
calendar year shall be increased by the amount of such excess.
No limitation amount shall be carried forward under this
paragraph more than 3 years.
``(g) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed to the taxpayer under this section
(determined without regard to subsection (c)) and the amount so
included shall be treated as interest income.
``(h) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of issuance,
the issuer reasonably expects--
``(A) at least 95 percent of the proceeds from the
sale of the issue are to be spent for 1 or more
qualified fossil fuel use reduction projects within the
5-year period beginning on the date of issuance of the
Freedom from Fossil Fuels (F4) bond,
``(B) a binding commitment with a third party to
spend at least 10 percent of the proceeds from the sale
of the issue will be incurred within the 6-month period
beginning on the date of issuance of the Freedom from
Fossil Fuels (F4) bond or, in the case of a Freedom
from Fossil Fuels (F4) bond the proceeds of which are
to be loaned to 2 or more borrowers, such binding
commitment will be incurred within the 6-month period
beginning on the date of the loan of such proceeds to a
borrower, and
``(C) such projects will be completed with due
diligence and the proceeds from the sale of the issue
will be spent with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the 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 years.--To the extent that less than 95 percent of the
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 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.
``(i) Special Rules Relating to Arbitrage.--A bond which is part of
an issue shall not be treated as a Freedom from Fossil Fuels (F4) bond
unless, with respect to the issue of which the bond is a part, the
issuer satisfies the arbitrage requirements of section 148 with respect
to proceeds of the issue.
``(j) Governmental Body.--For purposes of this section, the term
`governmental body' means any State, territory, possession of the
United States, the District of Columbia, Indian tribal government, and
any political subdivision.
``(k) Special Rules Relating to Pool Bonds.--No 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.
``(l) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Bond.--The term `bond' includes any obligation.
``(2) Pooled financing bond.--The term `pooled financing
bond' shall have the meaning given such term by section
149(f)(4)(A).
``(3) Partnership; s corporation; and other pass-thru
entities.--
``(A) In general.--Under regulations prescribed by
the Secretary, in the case of a partnership, trust, S
corporation, or other pass-thru entity, rules similar
to the rules of section 41(g) shall apply with respect
to the credit allowable under subsection (a).
``(B) No basis adjustment.--Rules similar to the
rules under section 1397E(i)(2) shall apply.
``(4) Bonds held by regulated investment companies.--If any
Freedom from Fossil Fuels (F4) bond is held by a regulated
investment company, the credit determined under subsection (a)
shall be allowed to shareholders of such company under
procedures prescribed by the Secretary.
``(5) Treatment for estimated tax purposes.--Solely for
purposes of sections 6654 and 6655, the credit allowed by this
section to a taxpayer by reason of holding a Freedom from
Fossil Fuels (F4) bond on a credit allowance date shall be
treated as if it were a payment of estimated tax made by the
taxpayer on such date.
``(6) Ratable principal amortization required.--A bond
shall not be treated as a Freedom from Fossil Fuels (F4) bond
unless it is part of an issue which provides for an equal
amount of principal to be paid by the issuer during each
calendar year that the issue is outstanding.
``(7) Reporting.--Issuers of Freedom from Fossil Fuels (F4)
bonds shall submit reports similar to the reports required
under section 149(e).
``(8) Credits may be stripped.--Under regulations
prescribed by the Secretary--
``(A) In general.--There may be a separation
(including at issuance) of the ownership of a Freedom
from Fossil Fuels (F4) bond and the entitlement to the
credit under this section with respect to such bond. In
case of any such separation, the credit under this
section shall be allowed to the person which, on the
credit allowance date, holds the instrument evidencing
the entitlement to the credit and not to the holder of
the bond.
``(B) Certain rules to apply.--In the case of a
separation described in subparagraph (A), the rules of
section 1286 shall apply to the Freedom from Fossil
Fuels (F4) bond as if it were a stripped bond and to
the credit under this section as if it were a stripped
coupon.
``(9) Credit may be transferred.--Nothing in any law or
rule of law shall be construed to limit the transferability of
the credit allowed by this section through sale and repurchase
agreements.
``(m) Termination.--This section shall not apply with respect to
any bond issued after December 31, 2014.''
(b) Reporting.--Subsection (d) of section 6049 of the Internal
Revenue Code of 1986 (relating to returns regarding payments of
interest), as amended by this Act, is amended by adding at the end the
following:
``(10) Reporting of credit on freedom from fossil fuels
(f4) bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 54B(g) and such amounts
shall be treated as paid on the credit allowance date
(as defined in section 54B(b)(4)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A) of this
paragraph, subsection (b)(4) of this section shall be
applied without regard to subparagraphs (A), (H), (I),
(J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''.
(c) Clerical Amendment.--The table of sections for subpart H of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986, as amended by this Act, is amended by adding at the end the
following:
``Sec. 54B. Credit to holders of freedom from fossil Fuels (F4)
bonds.''.
(d) Effective Date.--The amendments made by this section shall
apply to bonds issued after December 31, 2005.
(e) Freedom From Fossil Fuels (F4) Bonds Board.--
(1) In general.--The President, in consultation with
Congress, States, and local communities, shall establish in the
Executive Branch the Freedom from Fossil Fuels (F4) Bonds Board
(referred to in this subsection as the ``Board'') to review
applications for allocation of the Freedom from Fossil Fuels
(F4) bond applications in accordance with criteria published in
the Federal Register.
(2) Annual report.--The Board shall annually report with
respect to the conduct of its responsibilities under this
subsection to the President and Congress and such report shall
include--
(A) the overall progress of the Freedom from Fossil
Fuels (F4) bond program, and
(B) the overall limitation amount allocated during
the year and a description of the amount, region, and
qualified fossil fuel use reduction project financed by
each allocation.
(3) Authorization of appropriations.--There are authorized
to be appropriated to the Board such sums as are necessary to
carry out the purposes of this subsection.
SEC. 422. CLEAN ENERGY SECURITY COLLABORATIVE.
(a) In General.--There is established a cooperative program, to be
known as the ``Clean Energy Security Collaborative'' (referred to in
this section as the ``Collaborative'')--
(1) to promote awareness of and increased use of clean
energy technologies for energy security; and
(2) to increase collaboration among Federal and State
agencies to deploy clean distributed energy technologies and
systems for critical facilities, infrastructure, and homeland
security applications.
(b) Administration.--The Collaborative shall be carried out by the
Secretary of Energy--
(1) in accordance with an agreement between the Secretary
and a nonprofit, non-governmental organization that represents
various types of State clean energy funds dedicated to
promoting the development and deployment of clean energy
technologies and to creating and expanding the markets for the
technologies; and
(2) in consultation with the States.
(c) Duties.--The Collaborative, through the leadership of State
clean energy funds, and in partnership with institutions of higher
education, shall conduct a multistate analysis to develop--
(1) a model energy security assessment template for
critical facilities and infrastructure;
(2) a business case that explores a strategy for using
clean distributed generation technologies at critical
facilities and infrastructure, including--
(A) building and facility backup power;
(B) emergency response capability;
(C) low-power protection;
(D) infrastructure area support;
(E) transportation; and
(F) telecommunications;
(3) a feasibility study initiative with--
(A) a short list of critical facilities and
infrastructure for potential demonstration projects;
(B) a template for the feasibility studies to be
carried out; and
(C) a plan to conduct feasibility studies in select
States to better understand the actual economic,
technical, and other market barriers to the use of
clean distributed generation technologies at critical
public facilities and infrastructure;
(4) a generic financial and engineering model based on the
results of the feasibility studies carried out under paragraph
(3) that could be used to accelerate consideration and adoption
of clean energy systems at critical public facilities and
infrastructure; and
(5) a report for submission to Congress to present findings
and strategic recommendations for improving energy security at
critical facilities and infrastructure using clean distributed
generation technologies through a Federal-State partnership.
(d) Federal-State Pilot Projects.--The Collaborative shall
establish Federal-State pilot projects with demonstrations in 5
States--
(1) to implement recommendations from the feasibility
studies carried out under subsection (c)(3);
(2) to facilitate the use of local, distributed, clean
energy generation technologies and systems at critical public
safety facilities and infrastructure; and
(3) as overall purposes, to fortify infrastructure,
strengthen capabilities of first responders, and enhance
emergency preparedness, among other Federal and State energy
security priorities.
(e) Report.--The Collaborative shall submit to Congress and each
State director of homeland security or emergency management a report
that describes the results of--
(1) the multistate analysis under subsection (c); and
(2) the Federal-State pilot projects under subsection (d).
(f) Funding Sources.--Funding for the Collaborative may be provided
from--
(1) amounts specifically appropriated for the
Collaborative; and
(2) an equal match of Federal funds by any State receiving
funds as part of a Federal-State pilot project under subsection
(d).
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $500,000,000 for each of fiscal
years 2007 through 2010.
SEC. 423. ASSISTANCE FOR STATE PROGRAMS TO RETIRE FUEL-INEFFICIENT
MOTOR VEHICLES.
(a) Definitions.--In this section:
(1) Fuel-efficient automobile.--The term ``fuel-efficient
automobile'' means a passenger automobile or a light-duty truck
that has a fuel economy rating that is 40 percent greater than
the average fuel economy standard prescribed pursuant to
section 32902 of title 49, United States Code, or other law,
applicable to the passenger automobile or light-duty truck.
(2) Fuel-inefficient automobile.--The term ``fuel-
inefficient automobile'' means a passenger automobile or a
light-duty truck that--
(A) is manufactured in a model year more than 15
years before the fiscal year in which appropriations
authorized under subsection (f) are made available; and
(B) at the time of manufacture, had a fuel economy
rating that was equal to or less than 20 miles per
gallon.
(3) Light-duty truck.--
(A) In general.--The term ``light-duty truck''
means an automobile that is not a passenger automobile.
(B) Inclusions.--The term ``light-duty truck''
includes a pickup truck, a van, and a four-wheel-drive
general utility vehicle (as those terms are defined in
section 600.002-85 of title 40, Code of Federal
Regulations (or successor regulations)).
(4) State.--The term ``State'' means--
(A) a State; and
(B) the District of Columbia.
(b) Establishment.--The Secretary shall establish a program, to be
known as the ``National Motor Vehicle Efficiency Improvement Program'',
under which the Secretary shall provide grants to States to operate
voluntary programs to offer owners of fuel-inefficient automobiles
financial incentives to replace the fuel-inefficient automobiles with
fuel-efficient automobiles.
(c) State Plan.--
(1) In general.--For a State to be eligible to receive
funds under the program, the Governor of the State shall submit
to the Secretary a plan to carry out a program under this
section in the State.
(2) Additional state credit.--In addition to the payment
under subsection (e)(6), the State plan may provide for a
credit that may be redeemed by the owner of a replaced fuel-
inefficient automobile at the time of purchase of a new fuel-
efficient automobile for use as the replacement.
(d) Allocation Formula.--The amounts appropriated pursuant to
subsection (f) shall be allocated among the States in the proportion
that--
(1) the number of registered motor vehicles in each State
as of the date on which the Secretary computes shares under
this subsection; bears to
(2) the number of registered motor vehicles in all States
on that date.
(e) Eligibility Criteria.--The Secretary shall approve a State plan
submitted under subsection (c)(1) and provide the funds made available
under subsection (f), if the State plan--
(1) except as provided in paragraph (7), requires that all
passenger automobiles and light-duty trucks turned in be
scrapped, after allowing a period of time for the recovery of
spare parts;
(2) requires that all passenger automobiles and light-duty
trucks turned in be registered in the State in order to be
eligible;
(3) requires that all passenger automobiles and light-duty
trucks turned in be operational at the time at which the
passenger automobiles and light-duty trucks are turned in;
(4) restricts automobile owners (except nonprofit
organizations) from turning in more than 1 passenger automobile
and 1 light-duty truck during a 1-year period;
(5) provides an appropriate payment to the person recycling
the scrapped passenger automobile or light-duty truck for each
turned-in passenger automobile or light-duty truck;
(6) subject to subsection (c)(2), provides a minimum
payment to the automobile owner for each passenger automobile
and light-duty truck turned in; and
(7) provides appropriate exceptions to the scrappage
requirement for vehicles that qualify as antique cars under
State law.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as are necessary to carry out
this section, to remain available until expended.
Subtitle D--International Clean Energy Deployment
SEC. 431. CLEAN ENERGY TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES.
Title VII of the Global Environmental Protection Assistance Act of
1989 (22 U.S.C. 7901 et seq.) is amending by adding at the end the
following:
``PART D--CLEAN ENERGY TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES
``SEC. 741. DEFINITIONS.
``In this part:
``(1) Clean energy technology.--The term `clean energy
technology' means an energy supply or end-use technology that,
over its lifecycle and compared to a similar technology already
in commercial use in any developing country--
``(A) is reliable, affordable, economically viable,
socially acceptable, and compatible with the needs and
norms of the host country;
``(B) results in--
``(i) reduced emissions of greenhouse
gases; or
``(ii) increased geological sequestration;
and
``(C) may--
``(i) substantially lower emissions of air
pollutants; and
``(ii) generate substantially smaller or
less hazardous quantities of solid or liquid
waste.
``(2) Department.--The term `Department' means the
Department of State.
``(3) Developing country.--
``(A) In general.--The term `developing country'
means any country not listed in Annex I of the United
Nations Framework Convention on Climate Change, done at
New York on May 9, 1992.
``(B) Inclusion.--The term `developing country' may
include a country with an economy in transition, as
determined by the Secretary.
``(4) Geological sequestration.--The term `geological
sequestration' means the capture and long-term storage in a
geological formation of a greenhouse gas from an energy
producing facility, which prevents the release of greenhouse
gases into the atmosphere.
``(5) Greenhouse gas.--The term `greenhouse gas' means--
``(A) carbon dioxide;
``(B) methane;
``(C) nitrous oxide;
``(D) hydrofluorocarbons;
``(E) perfluorocarbons; and
``(F) sulfur hexafluoride.
``(6) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
``(7) Interagency working group.--The term `Interagency
Working Group' means the Interagency Working Group on Clean
Energy Technology Exports established under section
742(b)(1)(A).
``(8) National laboratory.--The term `National Laboratory'
has the meaning given the term in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801).
``(9) Qualifying project.--The term `qualifying project'
means a project meeting the criteria established under section
745(b).
``(10) Secretary.--The term `Secretary' means the Secretary
of State.
``(11) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia;
``(C) the Commonwealth of Puerto Rico; and
``(D) any other territory or possession of the
United States.
``(12) Strategy.--The term `Strategy' means the strategy
established under section 743.
``(13) Task force.--The term `Task Force' means the Task
Force on International Clean Energy Cooperation established
under section 742(a).
``(14) United states.--The term `United States', when used
in a geographical sense, means all of the States.
``SEC. 742. ORGANIZATION.
``(a) Task Force.--
``(1) Establishment.--Not later than 90 days after the date
of enactment of this part, the President shall establish a Task
Force on International Clean Energy Cooperation.
``(2) Composition.--The Task Force shall be composed of--
``(A) the Secretary, who shall serve as
Chairperson; and
``(B) representatives, appointed by the head of the
respective Federal agency, of--
``(i) the Department of Commerce;
``(ii) the Department of the Treasury;
``(iii) the Department of Energy;
``(iv) the Environmental Protection Agency;
``(v) the United States Agency for
International Development;
``(vi) the Export-Import Bank;
``(vii) the Overseas Private Investment
Corporation;
``(viii) the Trade and Development Agency;
``(ix) the Small Business Administration;
``(x) the Office of United States Trade
Representative; and
``(xi) other Federal agencies, as
determined by the President.
``(3) Duties.--
``(A) Lead agency.--The Task Force shall act as the
lead agency in the development and implementation of
strategy under section 743.
``(B) Coordination and implementation.--The Task
Force shall support the coordination and implementation
of programs under sections 1331, 1332, and 1608 of the
Energy Policy Act of 1992 (42 U.S.C. 13361, 13362,
13387).
``(4) Termination.--The Task Force, including any working
group established by the Task Force, shall terminate on January
1, 2016.
``(b) Working Groups.--
``(1) Establishment.--The Task Force--
``(A) shall establish an Interagency Working Group
on Clean Energy Technology Exports; and
``(B) may establish other working groups as
necessary to carry out this part.
``(2) Composition of interagency working group.--The
Interagency Working Group shall be composed of--
``(A) the Secretary of Energy, the Secretary of
Commerce, and the Administrator of the United States
Agency for International Development, who shall jointly
serve as Chairpersons; and
``(B) other members, as determined by the Task
Force.
``(c) Interagency Center.--
``(1) Establishment.--There is established an Interagency
Center in the Office of International Energy Market Development
of the Department of Energy.
``(2) Duties.--The Interagency Center shall--
``(A) assist the Interagency Working Group in
carrying out this part; and
``(B) perform such other duties as are determined
to be appropriate by the Secretary of Energy.
``SEC. 743. STRATEGY.
``(a) Initial Strategy.--
``(1) In general.--Not later than 1 year after the date of
enactment of this part, the Task Force shall develop and submit
to the President a Strategy to--
``(A) support the development and implementation of
programs and policies in developing countries to
promote the adoption of clean energy technologies and
energy efficiency technologies and strategies, with an
emphasis on those developing countries that are
expected to experience the most significant growth in
energy production and use over the next 20 years;
``(B) open and expand clean energy technology
markets and facilitate the export of clean energy
technology to developing countries, in a manner
consistent with the subsidy codes of the World Trade
Organization;
``(C) integrate into the foreign policy objectives
of the United States the promotion of--
``(i) clean energy technology deployment
and reduced greenhouse gas emissions in
developing countries; and
``(ii) clean energy technology exports;
``(D) establish a pilot program that provides
financial assistance for qualifying projects; and
``(E) develop financial mechanisms and instruments
(including securities that mitigate the political and
foreign exchange risks of uses that are consistent with
the foreign policy of the United States by combining
the private sector market and government enhancements)
that--
``(i) are cost-effective; and
``(ii) facilitate private capital
investment in clean energy technology projects
in developing countries.
``(2) Transmission to congress.--On receiving the Strategy
from the Task Force under paragraph (1), the President shall
transmit to Congress the Strategy.
``(b) Updates.--
``(1) In general.--Not later than 2 years after the date of
submission of the initial Strategy under subsection (a)(1), and
every 2 years thereafter--
``(A) the Task Force shall--
``(i) review and update the Strategy; and
``(ii) report the results of the review and
update to the President; and
``(B) the President shall submit to Congress a
report on the Strategy.
``(2) Inclusions.--The report shall include--
``(A) the updated Strategy;
``(B) a description of the assistance provided
under this part;
``(C) the results of the pilot projects carried out
under this part, including a comparative analysis of
the relative merits of each pilot project;
``(D) the activities and progress reported by
developing countries to the Department under section
746(b)(2); and
``(E) the activities and progress reported towards
meeting the goals established under section 746(b)(2).
``(c) Content.--In developing, updating, and submitting a report on
the Strategy, the Task Force shall--
``(1) assess--
``(A) energy trends, energy needs, and potential
energy resource bases in developing countries; and
``(B) the implications of the trends and needs for
domestic and global economic and security interests;
``(2) analyze technology, policy, and market opportunities
for international development, demonstration, and deployment of
clean energy technologies and strategies;
``(3) examine relevant trade, tax, finance, international,
and other policy issues to assess what policies, in the United
States and in developing countries, would help open markets and
improve clean energy technology exports of the United States in
support of--
``(A) enhancing energy innovation and cooperation,
including energy sector and market reform, capacity
building, and financing measures;
``(B) improving energy end-use efficiency
technologies (including buildings and facilities) and
vehicle, industrial, and co-generation technology
initiatives; and
``(C) promoting energy supply technologies,
including fossil, nuclear, and renewable technology
initiatives;
``(4) investigate issues associated with building capacity
to deploy clean energy technology in developing countries,
including--
``(A) energy-sector reform;
``(B) creation of open, transparent, and
competitive markets for clean energy technologies;
``(C) the availability of trained personnel to
deploy and maintain clean energy technology; and
``(D) demonstration and cost-buydown mechanisms to
promote first adoption of clean energy technology;
``(5) establish priorities for promoting the diffusion and
adoption of clean energy technologies and strategies in
developing countries, taking into account economic and security
interests of the United States and opportunities for the export
of technology of the United States;
``(6) identify the means of integrating the priorities
established under paragraph (5) into bilateral, multilateral,
and assistance activities and commitments of the United States;
``(7) establish methodologies for the measurement,
monitoring, verification, and reporting under section 746(b)(2)
of the greenhouse gas emission impacts of clean energy projects
and policies in developing countries;
``(8) establish a registry that is accessible to the public
through electronic means (including through the Internet) in
which information reported under section 746(b)(2) shall be
collected;
``(9) make recommendations to the heads of appropriate
Federal agencies on ways to streamline Federal programs and
policies to improve the role of the agencies in the
international development, demonstration, and deployment of
clean energy technology;
``(10) make assessments and recommendations regarding the
distinct technological, market, regional, and stakeholder
challenges necessary to deploy clean energy technology;
``(11) recommend conditions and criteria that will help
ensure that funds provided by the United States promote sound
energy policies in developing countries while simultaneously
opening their markets and exporting clean energy technology of
the United States;
``(12) establish an advisory committee, composed of
representatives of the private sector and other interested
groups, on the export and deployment of clean energy
technology;
``(13) establish a coordinated mechanism for disseminating
information to the private sector and the public on clean
energy technologies and clean energy technology transfer
opportunities; and
``(14) monitor the progress of each Federal agency in
promoting the purposes of this part, in accordance with--
``(A) the 5-year strategic plan submitted to
Congress in October 2002; and
``(B) other applicable law.
``SEC. 744. CLEAN ENERGY ASSISTANCE TO DEVELOPING COUNTRIES.
``(a) In General.--Subject to section 746, the Secretary may
provide assistance to developing countries for activities that are
consistent with the priorities established in the Strategy.
``(b) Assistance.--The assistance may be provided through--
``(1) the Millennium Challenge Corporation established
under section 604(a) of the Millennium Challenge Act of 2003
(22 U.S.C. 7703(a));
``(2) the Global Village Energy Partnership; and
``(3) other international assistance programs or activities
of--
``(A) the Department;
``(B) the United States Agency for International
Development; and
``(C) other Federal agencies.
``(c) Eligible Activities.--The activities supported under this
section include--
``(1) development of national action plans and policies
to--
``(A) facilitate the provision of clean energy
services and the adoption of energy efficiency
measures;
``(B) identify linkages between the use of clean
energy technologies and the provision of agricultural,
transportation, water, health, educational, and other
development-related services; and
``(C) integrate the use of clean energy
technologies into national strategies for economic
growth, poverty reduction, and sustainable development;
``(2) strengthening of public and private sector capacity
to--
``(A) assess clean energy needs and options;
``(B) identify opportunities to reduce, avoid, or
sequester greenhouse gas emissions;
``(C) establish enabling policy frameworks;
``(D) develop and access financing mechanisms; and
``(E) monitor progress in implementing clean energy
and greenhouse gas reduction strategies;
``(3) enactment and implementation of market-favoring
measures to promote commercial-based energy service provision
and to improve the governance, efficiency, and financial
performance of the energy sector; and
``(4) development and use of innovative public and private
mechanisms to catalyze and leverage financing for clean energy
technologies, including use of the development credit authority
of the United States Agency for International Development and
credit enhancements through the Export-Import Bank and the
Overseas Private Investment Corporation.
``SEC. 745. PILOT PROGRAM FOR DEMONSTRATION PROJECTS.
``(a) In General.--Not later than 2 years after the date of
enactment of this part, the Secretary, in consultation with the
Secretary of Energy and the Administrator of the United States Agency
for International Development, shall, by regulation, establish a pilot
program that provides financial assistance for qualifying projects
consistent with the Strategy and the performance criteria established
under section 746.
``(b) Qualifying Projects.--To be qualified to receive assistance
under this section, a project shall--
``(1) be a project--
``(A) to construct an energy production facility in
a developing country for the production of energy to be
consumed in the developing country; or
``(B) to improve the efficiency of energy use in a
developing country;
``(2) be a project that--
``(A) is submitted by a firm of the United States
to the Secretary in accordance with procedures
established by the Secretary by regulation;
``(B) meets the requirements of section 1608(k) of
the Energy Policy Act of 1992 (42 U.S.C. 13387(k));
``(C) uses technology that has been successfully
developed or deployed in the United States; and
``(D) is selected by the Secretary without regard
to the developing country in which the project is
located, with notice of the selection published in the
Federal Register; and
``(3) when deployed, result in a greenhouse gas emission
reduction (when compared to the technology that would otherwise
be deployed) of at least--
``(A) in the case of a unit or energy-efficiency
measure placed in service during the period beginning
on the date of enactment of this part and ending on
December 31, 2009, 20 percentage points;
``(B) in the case of a unit or energy-efficiency
measure placed in service during the period beginning
on January 1, 2010, and ending on December 31, 2019, 40
percentage points; and
``(C) in the case of a unit or energy-efficiency
measure placed in service after December 31, 2019, 60
percentage points.
``(c) Financial Assistance.--
``(1) In general.--For each qualifying project selected by
the Secretary to participate in the pilot program, the
Secretary shall make a loan or loan guarantee available for not
more than 50 percent of the total cost of the project.
``(2) Interest rate.--The interest rate on a loan made
under this subsection shall be equal to the current average
yield on outstanding obligations of the United States with
remaining periods of maturity comparable to the maturity of the
loan.
``(3) Host country contribution.--To be eligible for a loan
or loan guarantee for a project in a host country under this
subsection, the host country shall--
``(A) make at least a 10 percent contribution
toward the total cost of the project; and
``(B) verify to the Secretary (using the
methodology established under section 743(c)(7)) the
quantity of annual greenhouse gas emissions reduced,
avoided, or sequestered as a result of the deployment
of the project.
``(4) Capacity building research.--
``(A) In general.--A proposal made for a qualifying
project may include a research component intended to
build technological capacity within the host country.
``(B) Research.--To be eligible for a loan or loan
guarantee under this paragraph, the research shall--
``(i) be related to the technology being
deployed; and
``(ii) involve--
``(I) an institution in the host
country; and
``(II) a participant from the
United States that is an industrial
entity, an institution of higher
education, or a National Laboratory.
``(C) Host country contribution.--To be eligible
for a loan or loan guarantee for research in a host
country under this paragraph, the host country shall
make at least a 50 percent contribution toward the
total cost of the research.
``(5) Grants.--
``(A) In general.--The Secretary, in consultation
with the Secretary of Energy and the Administrator of
the United States Agency for International Development,
may, at the request of the United States ambassador to
a host country, make grants to help address and
overcome specific, urgent, and unforeseen obstacles in
the implementation of a qualifying project.
``(B) Maximum amount.--The total amount of a grant
made for a qualifying project under this paragraph may
not exceed $1,000,000.
``SEC. 746. PERFORMANCE CRITERIA FOR MAJOR ENERGY CONSUMERS.
``(a) Identification of Major Energy Consumers.--Not later than 1
year after the date of enactment of this part, the Task Force shall
identify those developing countries that, by virtue of present and
projected energy consumption, represent the predominant share of energy
use among developing countries.
``(b) Performance Criteria.--As a condition of accepting assistance
provided under sections 744 and 745, any developing country identified
under subsection (a) shall--
``(1) meet the eligibility criteria established under
section 607 of the Millennium Challenge Act of 2003 (22 U.S.C.
7706), notwithstanding the eligibility of the developing
country as a candidate country under section 606 of that Act
(22 U.S.C. 7705); and
``(2) agree to establish and report on progress in meeting
specific goals for reduced energy-related greenhouse gas
emissions and specific goals for--
``(A) increased access to clean energy services
among unserved and underserved populations;
``(B) increased use of renewable energy resources;
``(C) increased use of lower greenhouse gas-
emitting fossil fuel-burning technologies;
``(D) more efficient production and use of energy;
``(E) greater reliance on advanced energy
technologies;
``(F) the sustainable use of traditional energy
resources; or
``(G) other goals for improving energy-related
environmental performance, including the reduction or
avoidance of local air and water quality and solid
waste contaminants.
``SEC. 747. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are
necessary to carry out this part for each of fiscal years 2006 through
2015.''
TITLE V--SECURING A RELIABLE, AFFORDABLE, AND SUSTAINABLE ENERGY FUTURE
Subtitle A--Advanced Research Project Agency for Energy
SEC. 501. OFFICE OF ADVANCED ENERGY RESEARCH, TECHNOLOGY DEVELOPMENT,
AND DEPLOYMENT.
(a) Establishment.--The Secretary of Energy shall establish in the
Department of Energy the Office of Advanced Energy Research, Technology
Development, and Deployment (referred to in this section as the
``Office''), to be headed by a Director (referred to in this section as
the ``Director'') who reports to the Secretary.
(b) Mission.--The mission of the Office is--
(1) to implement an innovative energy research, technology
development, and deployment program to--
(A) increase national security by significantly
reducing petroleum and imported fuels consumption;
(B) significantly improve the efficiency of
electricity use and the reliability of the electricity
system; and
(C) significantly reduce greenhouse gas emissions;
and
(2) to sponsor a diverse portfolio of cutting-edge, high-
payoff research, development, and deployment projects to carry
out the program.
(c) Experimental Personnel Authority.--The Director may staff the
Office primarily using a program of experimental use of special
personnel management authority in order to facilitate recruitment of
eminent experts in science or engineering for management of research
and development projects and programs administered by the Director
under similar terms and conditions as the authority is exercised under
section 1101 of the Strom Thurmond National Defense Authorization Act
for Fiscal Year 1999 (Public Law 105-261; 5 U.S.C. 3104 note), as
determined by the Director.
(d) Transactions Other Than Contracts and Grants.--To carry out
projects under this section, the Director may enter into transactions
to carry out advanced research projects under this subsection under
similar terms and conditions as the authority is exercised under
section 646(g) of the Department of Energy Organization Act (42 U.S.C.
7256(g)).
(e) Prizes for Advanced Technology Achievements.--
(1) In general.--Subject to paragraphs (2) through (4), the
Director may carry out a program to award cash prizes in
recognition of outstanding achievements in basic, advanced, and
applied research, technology development, and prototype
development that have the potential to advance the mission
described in subsection (b) under similar terms and conditions
as the authority is exercised under section 1008 of the Energy
Policy Act of 2005 (42 U.S.C. 16396).
(2) Competition requirements.--In carrying out this
subsection, the Director shall--
(A) use a competitive process for the selection of
recipients of cash prizes; and
(B) conduct widely-advertised solicitation of
submissions of research results, technology
developments, and prototypes.
(3) Maximum amount for all cash prizes.--The total amount
of all cash prizes awarded for a fiscal year under this
subsection may not exceed $50,000,000.
(4) Maximum amount of individual cash prizes.--The amount
of an individual cash prize awarded under this subsection may
not exceed $10,000,000 unless the amount of the award is
approved by the Secretary of Energy.
(f) Annual Reports.--As soon as practicable after the end of each
fiscal year for which the Director receives funds under subsection (h),
the Director shall submit to the Committee on Energy and Natural
Resources of the Senate and the Committee on Energy and Commerce, and
the Committee on Science, of the House of Representatives a report on
the progress, challenges, future milestones, and strategic plan of the
Office, including--
(1) a description of, and rationale for, any changes in the
strategic plan;
(2) the adequacy of human and financial resources necessary
to achieve the mission described in subsection (b); and
(3) in the case of cash prizes awarded under subsection
(e), a description of--
(A) the applications of the research, technology,
or prototypes for which prizes were awarded;
(B) the total amount of the prizes that were
awarded;
(C) the methods used for solicitation and
evaluation of submissions and an assessment of the
effectiveness of those methods; and
(D) recommendations to improve the prize program.
(g) Relationship to Other Authority.--The program under this
section may be carried out in conjunction with, or in addition to, the
exercise of any other authority of the Director to acquire, support, or
stimulate basic, advanced, and applied research, technology
development, or prototype projects.
(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $1,000,000,000 for fiscal year 2007; and
(2) $2,000,000,000 for each of fiscal years 2008 through
2011.
Subtitle B--Near-Term Vehicle Technology Program
SEC. 505. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM.
(a) Purposes.--The purposes of this section are--
(1) to enable and promote, in partnership with industry,
comprehensive development, demonstration, and commercialization
of a wide range of electric drive components, systems, and
vehicles using diverse electric drive transportation
technologies;
(2) to make critical public investments to help private
industry, institutions of higher education, National
Laboratories, and research institutions to expand innovation,
industrial growth, and jobs in the United States;
(3) to expand the availability of the existing electric
infrastructure for fueling light-duty transportation and other
on-road and nonroad vehicles that are using petroleum and are
mobile sources of emissions--
(A) including the more than 3,000,000 reported
units (such as electric forklifts, golf carts, and
similar nonroad vehicles) in use on the date of
enactment of this Act; and
(B) with the goals of enhancing the energy security
of the United States, reducing dependence on imported
oil and reducing emissions through the expansion of
grid-supported mobility;
(4) to accelerate the widespread commercialization of all
types of electric drive vehicle technology into all sizes and
applications of vehicles, including commercialization of plug-
in hybrid electric vehicles and plug-in hybrid fuel cell
vehicles; and
(5) to improve the energy efficiency of, and reduce the
petroleum use in, transportation.
(b) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Battery.--The term ``battery'' means an energy storage
device used in an on-road vehicle or nonroad vehicle powered,
in whole or in part, using an off-board or on-board source of
electricity.
(3) Electric drive transportation technology.--The term
``electric drive transportation technology'' means--
(A) vehicles that use an electric motor for all or
part of their motive power and that may or may not use
off-board electricity, including battery electric
vehicles, fuel cell vehicles, engine dominant hybrid
electric vehicles, plug-in hybrid electric vehicles,
plug-in hybrid fuel cell vehicles, and electric rail;
or
(B) equipment relating to transportation or mobile
sources of air pollution that use an electric motor to
replace an internal combustion engine for all or part
of the work of the equipment, including corded electric
equipment linked to transportation or mobile sources of
air pollution.
(4) Engine dominant hybrid electric vehicle.--The term
``engine dominant hybrid electric vehicle'' means an on-road
vehicle or nonroad vehicle that--
(A) is propelled by an internal combustion engine
or heat engine using--
(i) any combustible fuel;
(ii) an on-board, rechargeable storage
device; and
(B) has no means of using an off-board source of
electricity.
(5) Fuel cell vehicle.--The term ``fuel cell vehicle''
means an on-road vehicle or nonroad vehicle that uses a fuel
cell (as defined in section 803 of the Spark M. Matsunaga
Hydrogen Act of 2005 (42 U.S.C. 16152)).
(6) Lightweighting.--The term ``lightweighting'' means the
process of reducing the weight of components or structural
materials of a vehicle to achieve an overall reduction in
weight of the vehicle to achieve energy efficiency, maintain
safety, improve performance, or achieve a similar goal.
(7) Nonroad vehicle.--The term ``nonroad vehicle'' has the
meaning given the term in section 216 of the Clean Air Act (42
U.S.C. 7550).
(8) Plug-in hybrid electric vehicle.--The term ``plug-in
hybrid electric vehicle'' means an on-road vehicle or nonroad
vehicle that is propelled by an internal combustion engine or
heat engine using--
(A) any combustible fuel;
(B) an on-board, rechargeable storage device; and
(C) a means of using an off-board source of
electricity.
(9) Plug-in hybrid fuel cell vehicle.--The term ``plug-in
hybrid fuel cell vehicle'' means a fuel cell vehicle with a
battery powered by an off-board source of electricity.
(c) Program.--The Secretary shall conduct a program of research,
development, demonstration, and commercial application for electric
drive transportation and vehicle lightweighting technology, including--
(1) high-capacity, high-efficiency batteries;
(2) high-efficiency on-board and off-board charging
components;
(3) high-powered drive train systems for passenger and
commercial vehicles and for nonroad equipment;
(4) control system development and power train development
and integration for plug-in hybrid electric vehicles, plug-in
hybrid fuel cell vehicles, and engine dominant hybrid electric
vehicles, including--
(A) development of efficient cooling systems;
(B) analysis and development of control systems
that minimize the emissions profile when clean diesel
engines are part of a plug-in hybrid drive system; and
(C) development of different control systems that
optimize for different goals, including--
(i) battery life;
(ii) reduction of petroleum consumption;
and
(iii) greenhouse gas reduction;
(5) nanomaterial technology applied to both battery and
fuel cell systems;
(6) large-scale demonstration, testing, and evaluation of
plug-in hybrid electric vehicles in different applications with
different batteries and control systems, including--
(A) military applications;
(B) mass market passenger and light-duty truck
applications;
(C) private fleet applications; and
(D) medium- and heavy-duty applications;
(7)(A) a nationwide education strategy for electric drive
transportation technologies by providing secondary and high
school teaching materials and support for university education
focused on electric drive system and component engineering; and
(B) development, in consultation with the Administrator, of
procedures for testing and certification of criteria
pollutants, fuel economy, and petroleum use for light-, medium-
, and heavy-duty vehicle applications, including consideration
of the vehicle and fuel as a system, and not solely as an
engine;
(8) nightly off-board charging;
(9) advancement of battery and corded electric
transportation technologies in mobile source applications by--
(A) improvement in battery, drive train, and
control system technologies; and
(B) working with industry and the Administrator
to--
(i) understand and inventory markets; and
(ii) identify and implement methods of
removing barriers for existing and emerging
applications; and
(10) components and structural materials used for vehicle
lightweighting, including composites.
(d) Goals.--The goals of the electric drive transportation
technology program established under subsection (c) shall be to
develop, in partnership with industry and institutions of higher
education, projects that focus on--
(1) innovative electric drive technology developed in the
United States;
(2) growth of employment in the United States in electric
drive design and manufacturing;
(3) validation of the plug-in hybrid potential through
fleet demonstrations; and
(4) acceleration of fuel cell commercialization through
comprehensive development and commercialization of the electric
drive technology systems that are the foundational technology
of the fuel cell vehicle system.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $600,000,000 for each of fiscal
years 2007 through 2012.
Subtitle C--Advanced Technology Motor Vehicles Manufacturing Credit
SEC. 511. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to foreign tax credit,
etc.) is amended by adding at the end the following new section:
``SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.
``(a) Credit Allowed.--There shall be allowed as a credit against
the tax imposed by this chapter for the taxable year an amount equal to
35 percent of the qualified investment of an eligible taxpayer for such
taxable year.
``(b) Qualified Investment.--For purposes of this section--
``(1) In general.--The term `qualified investment' means,
with respect to any taxable year, the sum of--
``(A) the costs paid or incurred by the eligible
taxpayer during such taxable year--
``(i) to re-equip, expand, or establish any
manufacturing facility of the eligible taxpayer
to produce advanced technology motor vehicles
or to produce eligible components, and
``(ii) for qualified research (as defined
in section 41(d)) related to advanced
technology motor vehicles and eligible
components, and
``(B) qualified engineering integration costs.
``(2) Attribution rules.--For purposes of paragraph
(1)(A)(i), in the case of a manufacturing facility of the
eligible taxpayer which produces both advanced technology motor
vehicles and other motor vehicles, or eligible components and
other components, only the amount paid or incurred for the
production of advanced technology motor vehicles and eligible
components shall be taken into account.
``(c) Eligible Taxpayer.--For purposes of this section, the term
`eligible taxpayer' means any taxpayer if more than 50 percent of its
gross receipts for the taxable year is derived from the manufacture of
motor vehicles or any component parts of such vehicles.
``(d) Definitions.--For purposes of this section--
``(1) Advanced technology motor vehicle.--The term
`advanced technology motor vehicle' means--
``(A) any new qualified fuel cell motor vehicle (as
defined in section 30B(b)(3)),
``(B) any new advanced lean burn technology motor
vehicle (as defined in section 30B(c)(3)),
``(C) any new qualified hybrid motor vehicle (as
defined in section 30B(d)(3)(A) and determined without
regard to any gross vehicle weight rating), and
``(D) any new qualified alternative motor fuel
vehicle (as defined in section 30B(e)(4)).
``(2) Eligible components.--The term `eligible component'
means any component inherent to any advanced technology motor
vehicle but not inherent to a motor vehicle which is not an
advanced technology motor vehicle, including--
``(A) with respect to any gasoline or diesel-
electric new qualified hybrid motor vehicle, any--
``(i) electric motor or generator,
``(ii) power split device,
``(iii) power control unit,
``(iv) power controls,
``(v) integrated starter generator, or
``(vi) battery,
``(B) with respect to any hydraulic new qualified
hybrid motor vehicle, any--
``(i) hydraulic accumulator vessel,
``(ii) hydraulic pump, or
``(iii) hydraulic pump-motor assembly,
``(C) with respect to any new advanced lean burn
technology motor vehicle, any--
``(i) diesel engine,
``(ii) turbocharger,
``(iii) fuel injection system, or
``(iv) after-treatment system, such as a
particle filter or NOx absorber, and
``(D) with respect to any advanced technology motor
vehicle, any other component submitted for approval by
the Secretary.
``(3) Qualified engineering integration costs.--For
purposes of subsection (b)(1)(B), the term `qualified
engineering integration costs' means, with respect to any
advanced technology motor vehicle, costs incurred prior to the
market introduction of such motor vehicle for engineering tasks
related to--
``(A) establishing functional, structural, and
performance requirements for components and subsystems
to meet overall vehicle objectives for a specific
application,
``(B) designing interfaces for components and
subsystems with mating systems within a specific
vehicle application,
``(C) designing cost effective, efficient, and
reliable manufacturing processes to produce components
and subsystems for a specific vehicle application, and
``(D) validating functionality and performance of
components and subsystems for a specific vehicle
application.
``(4) Motor vehicle.--The term `motor vehicle' has the
meaning given such term by section 30(c)(2).
``(e) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the sum of--
``(A) the taxpayer's regular tax liability (as
defined in section 26(b)) for the taxable year, plus
``(B) the tax imposed under section 55 for the
taxable year.
``(2) Carryover of unused credit amounts.--
``(A) In general.--If the credit allowable under
subsection (a) for a taxable year exceeds the
limitation under paragraph (1) for such taxable year,
such excess shall be allowed--
``(i) as a credit carryback to each of the
13 taxable years preceding such year, and
``(ii) as a credit carryforward to each of
the 20 taxable years following such year.
``(B) Amount carried to each year.--For purposes of
this paragraph, rules similar to the rules of section
39(a)(2) shall apply.
``(f) Special Rules.--
``(1) Reduction in basis.--For purposes of this subtitle,
if a credit is allowed under this section for any expenditure
with respect to any property, the increase in the basis of such
property which would (but for this paragraph) result from such
expenditure shall be reduced by the amount of the credit so
allowed.
``(2) Investments and property outside the united states.--
No credit shall be allowed under subsection (a) with respect
to--
``(A) any manufacturing facility which is located
outside the United States, and
``(B) any engineering integration or research and
development conducted outside the United States.
``(3) Aggregation of expenditures; allocations.--For
purposes of this section, rules similar to the rules of
paragraphs (1) and (2) of section 41(f) shall apply.
``(4) Recapture.--The Secretary shall, by regulation,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any manufacturing facility
which ceases to produce advanced technology motor vehicles or
eligible components.
``(5) Public statement.--
``(A) In general.--No credit shall be allowed under
subsection (a) for any taxable year unless the eligible
taxpayer makes publicly available a statement
describing the activities of the eligible taxpayer for
which the credit is allowed and the public benefits of
such activities, including the estimated amount of any
reduction in national oil consumption in future years
as a result of such activities.
``(B) Time for publication.--The statement required
under subparagraph (A) shall be made available not
later than 90 days after the end of the taxable year
for which the credit under subsection (a) is allowed
and shall be in such form as the Secretary shall
prescribe.
``(6) No double benefit.--
``(A) Coordination with other deductions and
credits.--Except as provided in subparagraph (B), the
amount of any deduction or other credit allowable under
this chapter for any cost taken into account in
determining the amount of the credit under subsection
(a) shall be reduced by the amount of such credit
attributable to such cost.
``(B) Research and development costs.--
``(i) In general.--Except as provided in
clause (ii), any amount described in subsection
(b)(1)(A)(ii) taken into account in determining
the amount of the credit under subsection (a)
for any taxable year shall not be taken into
account for purposes of determining the credit
under section 41 for such taxable year.
``(ii) Costs taken into account in
determining base period research expenses.--Any
amounts described in subsection (b)(1)(A)(ii)
taken into account in determining the amount of
the credit under subsection (a) for any taxable
year which are qualified research expenses
(within the meaning of section 41(b)) shall be
taken into account in determining base period
research expenses for purposes of applying
section 41 to subsequent taxable years.
``(g) Election Not to Take Credit.--No credit shall be allowed
under subsection (a) for any property if the taxpayer elects not to
have this section apply to such property.
``(h) Regulations.--The Secretary shall prescribe such regulations
as necessary to carry out the provisions of this section.''.
(b) Conforming Amendments.--
(1) Section 1016(a) of the Internal Revenue Code of 1986,
as amended by this Act, is amended by striking ``and'' at the
end of paragraph (38), by striking the period at the end of
paragraph (39) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(40) to the extent provided in section 30D(f)(1).''.
(2) Section 6501(m) of such Code is amended by inserting
``30D(g),'' after ``30C(e)(5),''.
(3) The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 30C the following new item:
``Sec. 30D. Advanced technology motor vehicles manufacturing credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts incurred in taxable years beginning after December 31,
1993.
Subtitle D--Realizing a Hydrogen Future
SEC. 521. H-PRIZE COMPETITION.
(a) Short Title.--This section may be cited as the ``H-Prize Act of
2006''.
(b) Definitions.--In this section:
(1) Administering entity.--The term ``administering
entity'' means the entity with which the Secretary enters into
an agreement under subsection (c)(3).
(2) Department.--The term ``Department'' means the
Department of Energy.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(c) Prize Authority.--
(1) In general.--The Secretary shall carry out a program to
competitively award cash prizes only in conformity with this
section to advance the research, development, demonstration,
and commercial application of hydrogen energy technologies.
(2) Advertising and solicitation of competitors.--
(A) Advertising.--The Secretary shall widely
advertise prize competitions to encourage broad
participation, including participation by--
(i) individuals;
(ii) institutions of higher education,
including historically Black colleges and
universities and other institutions serving
minorities; and
(iii) large and small businesses, including
businesses owned or controlled by socially and
economically disadvantaged persons.
(B) Announcement through federal register notice.--
(i) In general.--The Secretary shall
announce each prize competition by publishing a
notice in the Federal Register.
(ii) Requirements.--The notice shall
include a description of--
(I) the subject of the competition;
(II) the duration of the
competition;
(III) the eligibility requirements
for participation in the competition;
(IV) the process for participants
to register for the competition;
(V) the amount of the prize; and
(VI) the criteria for awarding the
prize.
(3) Administering the competitions.--
(A) In general.--The Secretary shall enter into an
agreement with a private, nonprofit entity to
administer the prize competitions, subject to this
section.
(B) Duties.--The duties of the administering entity
under the agreement shall include--
(i) advertising prize competitions and the
results of the prize competitions;
(ii) raising funds from private entities
and individuals to pay for administrative costs
and contribute to cash prizes;
(iii) working with the Secretary to develop
the criteria for selecting winners in prize
competitions, based on goals provided by the
Secretary;
(iv) determining, in consultation with the
Secretary, the appropriate amount for each
prize to be awarded;
(v) selecting judges in accordance with
subsection (d)(4), using criteria developed in
consultation with the Secretary; and
(vi) preventing the unauthorized use or
disclosure of the intellectual property, trade
secrets, and confidential business information
of registered participants.
(4) Funding sources.--
(A) In general.--Cash prizes under this section
shall consist of funds appropriated under subsection
(h) and any funds provided by the administering entity
for the cash prizes (including funds raised pursuant to
paragraph (3)(B)).
(B) Other federal agencies.--The Secretary may
accept funds from other Federal agencies for the cash
prizes.
(C) No special consideration.--The Secretary may
not give any special consideration to any private
sector entity or individual in return for a donation to
the administering entity.
(5) Announcement of prizes.--
(A) In general.--The Secretary may not issue a
notice required by paragraph (2)(B) until all the funds
needed to pay out the announced amount of the prize
have been appropriated or committed in writing by the
administering entity.
(B) Increase in amount of prize.--The Secretary may
increase the amount of a prize after an initial
announcement is made under paragraph (2)(B) if--
(i) notice of the increase is provided in
the same manner as the initial notice of the
prize; and
(ii) the funds needed to pay out the
announced amount of the increase have been
appropriated or committed in writing by the
administering entity.
(d) Prize Categories.--
(1) Categories.--The Secretary shall establish prizes for--
(A) advancements in components or systems related
to--
(i) hydrogen production;
(ii) hydrogen production from renewable
sources;
(iii) hydrogen storage;
(iv) hydrogen distribution; and
(v) hydrogen utilization;
(B) prototypes of hydrogen-powered vehicles or
other hydrogen-based products that best meet or exceed
objective performance criteria, such as completion of a
race over a certain distance or terrain or generation
of energy at certain levels of efficiency; and
(C) transformational changes in technologies for
the distribution or production of hydrogen that meet or
exceed far-reaching objective criteria that--
(i) shall include minimal carbon emissions;
and
(ii) may include cost criteria designed to
facilitate the eventual market success of a
winning technology.
(2) Awards.--
(A) Advancements.--
(i) In general.--To the extent permitted
under subsection (c)(5), the prizes authorized
under paragraph (1)(A) shall be awarded
biennially to the most significant advance made
in each of the 4 subcategories described in
clauses (i) through (v) of paragraph (1)(A)
since the submission deadline of the previous
prize competition in the same category under
paragraph (1)(A) or the date of enactment of
this Act, whichever is later, unless no such
advance is significant enough to merit an
award.
(ii) Maximum amount for single prize.--No
single prize described in clause (i) may exceed
$2,000,000.
(iii) Insufficient total funds.--If less
than $4,000,000 is available for a prize
competition under paragraph (1)(A), the
Secretary may--
(I) omit 1 or more subcategories;
(II) reduce the amount of the
prizes; or
(III) not hold a prize competition.
(B) Prototypes.--
(i) In general.--To the extent permitted
under subsection (c)(5), prizes authorized
under paragraph (1)(B) shall be awarded
biennially in alternate years from the prizes
authorized under paragraph (1)(A).
(ii) Total number of prizes.--The Secretary
may award no more than 1 prize under paragraph
(1)(A) in each 2-year period.
(iii) Maximum amount for single prize.--No
single prize under this subparagraph may exceed
$8,000,000.
(iv) Insufficient qualified entries.--If no
registered participant meets the objective
performance criteria established pursuant to
paragraph (3) for a competition under this
subparagraph, the Secretary shall not award a
prize.
(C) Transformational technologies.--
(i) In general.--To the extent permitted
under subsection (c)(5), the Secretary shall
announce 1 prize competition authorized under
paragraph (1)(C) as soon as practicable after
the date of enactment of this Act.
(ii) Amount of prize.--A prize offered
under this subparagraph shall--
(I) be in an amount not less than
$2,000,000;
(II) be paid to the winner in a
lump sum; and
(III) include an additional amount
paid to the winner as a match for each
dollar of non-Federal funding raised by
the winner for the hydrogen technology
beginning on the date the winner was
named.
(iii) Matching.--
(I) In general.--The match
described in clause (ii)(III) shall be
provided until the earlier of--
(aa) the date that is 3
years after the date the prize
winner is named; or
(bb) the date on which the
full amount of the prize has
been paid out.
(II) Election.--A prize winner may
elect to have the match amount paid to
another entity that is continuing the
development of the winning technology.
(III) Rules.--The Secretary shall
announce the rules for receiving the
match in the notice required by
subsection (c)(2)(B).
(iv) Requirements.--The Secretary shall
award a prize under this subparagraph only when
a registered participant has met the objective
criteria established for the prize pursuant to
paragraph (3) and announced pursuant to
subsection (c)(2)(B).
(v) Total amount of funds.--
(I) Federal funds.--Not more than
$20,000,000 in Federal funds may be
used for the prize award under this
subparagraph.
(II) Matching funds.--As a
condition of entering into an agreement
under subsection (c)(3), the
administering entity shall seek to
raise $40,000,000 in non-Federal funds
toward the matching award under this
subparagraph.
(3) Criteria.--In establishing the criteria required by
this section, the Secretary shall consult with--
(A) the Hydrogen Technical and Fuel Cell Advisory
Committee of the Department;
(B) other Federal agencies, including the National
Science Foundation; and
(C) private organizations, including professional
societies, industry associations, the National Academy
of Sciences, and the National Academy of Engineering.
(4) Judges.--
(A) In general.--For each prize competition, the
Secretary shall assemble a panel of qualified judges to
select the 1 or more winners on the basis of the
criteria established under paragraph (3).
(B) Inclusions.--Judges for each prize competition
shall include individuals from outside the Department,
including from the private sector.
(C) Prohibitions.--A judge may not--
(i) have personal or financial interests
in, or be an employee, officer, director, or
agent of, any entity that is a registered
participant in the prize competition for which
the judge will serve as a judge; or
(ii) have a familial or financial
relationship with an individual who is a
registered participant in the prize competition
for which the judge will serve as a judge.
(e) Eligibility.--To be eligible to win a prize under this section,
an individual or entity--
(1) shall have complied with all the requirements in
accordance with the Federal Register notice required under
subsection (c)(2)(B);
(A) in the case of a private entity, shall be
incorporated in and maintain a primary place of
business in the United States;
(B) in the case of an individual (whether
participating singly or in a group), shall be a citizen
of, or an alien lawfully admitted for permanent
residence in, the United States; and
(C) shall not be a Federal entity, a Federal
employee acting within the scope of employment, or an
employee of a national laboratory acting within the
scope of employment.
(f) Intellectual Property.--
(1) In general.--Subject to paragraph (2), the Federal
Government shall not, by virtue of offering or awarding a prize
under this section, be entitled to any intellectual property
rights derived as a consequence of, or direct relation to, the
participation by a registered participant in a competition
authorized by this section.
(2) Negotiation of licenses permitted.--This subsection
does not prevent the Federal Government from negotiating a
license for the use of intellectual property developed for a
prize competition under this section.
(g) Liability.--
(1) Waiver of liability.--
(A) In general.--As a condition of participation in
a competition under this section, the Secretary may
require registered participants to waive claims against
the Federal Government and the administering entity
(except claims for willful misconduct) for any injury,
death, damage, or loss of property, revenue, or profits
arising from the participation of the registered
participants in a competition under this section.
(B) Notice required.--The Secretary shall provide
notice of any waiver required under this paragraph in
the notice required by subsection (c)(2)(B).
(C) Prohibition.--The Secretary may not require a
registered participant to waive claims against the
administering entity arising out of the unauthorized
use or disclosure by the administering entity of the
intellectual property, trade secrets, or confidential
business information of the registered participant.
(2) Liability insurance.--
(A) Requirements.--As a condition of participation
in a competition under this section, a registered
participant shall be required to obtain liability
insurance or demonstrate financial responsibility, in
amounts determined by the Secretary, for claims by--
(i) a third party for death, bodily injury,
or property damage or loss resulting from an
activity carried out in connection with
participation in a competition under this
section; and
(ii) the Federal Government for damage or
loss to Government property resulting from such
an activity.
(B) Federal government insured.--
(i) In general.--The Federal Government
shall be named as an additional insured under
the insurance policy of a registered
participant required under subparagraph (A)(i).
(ii) Mandatory indemnification.--As a
condition of participation in a competition
under this section, a registered participant
shall be required to agree to indemnify the
Federal Government against third party claims
for damages arising from or related to
competition activities.
(h) Authorization of Appropriations.--
(1) Authorization of appropriations.--
(A) Awards.--There are authorized to be
appropriated to the Secretary to carry out this section
for the period of fiscal years 2007 through 2016--
(i) $20,000,000 for awards described in
subsection (d)(1)(A);
(ii) $20,000,000 for awards described in
subsection (d)(1)(B); and
(iii) $10,000,000 for the award described
in subsection (d)(1)(C).
(B) Administration.--In addition to the amounts
authorized in subparagraph (A), there are authorized to
be appropriated to the Secretary for the administrative
costs of carrying out this section $2,000,000 for each
of fiscal years 2007 through 2016.
(2) Carryover of funds.--
(A) In general.--Funds appropriated for prize
awards under this section--
(i) shall remain available until expended;
and
(ii) may be transferred, reprogrammed, or
expended for other purposes only after the
expiration of 10 fiscal years after the fiscal
year for which the funds were originally
appropriated.
(B) Relation to other law.--No provision in this
section permits obligation or payment of funds in
violation of section 1341 of title 31, United States
Code (commonly known as the ``Anti-Deficiency Act'').
(i) Maintenance of Effort.--The Secretary shall ensure that funds
provided under this section will be used only to supplement, and not to
supplant, Federal research and development programs.
(j) Sunset.--The authority provided by this section shall terminate
on September 30, 2017.
SEC. 522. CREDIT FOR RETAIL SALE OF HYDROGEN FUEL AS MOTOR VEHICLE
FUEL.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business related
credits), as amended by this Act, is amended by inserting after section
45O the following new section:
``SEC. 45P. CREDIT FOR RETAIL SALE OF HYDROGEN AS MOTOR VEHICLE FUEL.
``(a) General Rule.--For purposes of section 38, the hydrogen fuel
retail sales credit for any taxable year is an amount equal to the
greater of--
``(1) 20 percent of the price of hydrogen, or
``(2) 50 cents for each quantity of hydrogen having a Btu
content of 115,000, sold at retail by the taxpayer during such
year as a fuel to propel any hydrogen fuel cell vehicle.
``(b) Definitions.--For purposes of this section--
``(1) Hydrogen fuel cell vehicle.--The term `hydrogen fuel
cell vehicle' has the meaning given such term in section 136A.
``(2) Sold at retail.--
``(A) In general.--The term `sold at retail' means
the sale, for a purpose other than resale, after
manufacture, production, or importation.
``(B) Use treated as sale.--If any person uses
hydrogen (including any use after importation) as a
fuel to propel any motor vehicle (as defined in section
30(c)(2)) before such fuel is sold at retail, then such
use shall be treated in the same manner as if such fuel
were sold at retail as a fuel to propel such a vehicle
by such person.
``(c) Pass-Thru in the Case of Estates and Trusts.--Under
regulations prescribed by the Secretary, rules similar to the rules of
subsection (d) of section 52 shall apply.
``(d) Termination.--This section shall not apply to any fuel sold
at retail after December 31, 2014.''.
(b) Credit Treated as Business Credit.--Section 38(b) of the
Internal Revenue Code of 1986, as amended by this Act, is amended by
striking ``plus'' at the end of paragraph (31), by striking the period
at the end of paragraph (32) and inserting ``, plus'', and by adding at
the end the following new paragraph:
``(33) the hydrogen fuel retail sales credit determined
under section 45P(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986, as amended by this Act, is amended by inserting after the item
relating to section 45O the following new item:
``Sec. 45P. Credit for retail sale of hydrogen as motor vehicle
fuel.''.
(d) Effective Date.--The amendments made by this section shall
apply to fuel sold at retail after December 31, 2005, in taxable years
ending after such date.
SEC. 523. CREDIT FOR PRODUCTION OF HYDROGEN FUEL.
(a) Hydrogen Produced From Any Source.--Section 45K of the Internal
Revenue Code of 1986 (relating to credit for producing fuel from
nonconventional sources) is amended by adding at the end the following
new subsection:
``(h) Hydrogen Fuel.--
``(1) Hydrogen fuel produced from any source.--There shall
be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to--
``(A) $10, multiplied by
``(B) each quantity of hydrogen having a Btu
content of 5,800,000--
``(i) sold by the taxpayer to an unrelated
person during the taxable year, and
``(ii) the production of which is
attributable to the taxpayer.
``(2) Additional credit for production from renewable
sources.--
``(A) In general.--In the case of hydrogen which is
produced from a renewable source, paragraph (1)(A)
shall be applied by substituting `$20' for `$10'.
``(B) Renewable source.--
``(i) In general.--The term `renewable
source' means solar, wind, ocean, geothermal
energy, biomass, landfill gas, or incremental
hydropower.
``(ii) Incremental hydropower.--The term
`incremental hydropower' means additional
generating capacity achieved from increased
efficiency or additions of new capacity at a
hydroelectric facility in existence on the date
of enactment of this paragraph.
``(3) Exclusion on sale for certain uses.--No credit shall
be allowed under this subsection for hydrogen fuel sold by the
taxpayer the use of which is for the production or refining of
other petroleum products.
``(4) Termination.--This subsection shall not apply to
hydrogen fuel produced after December 31, 2014.''.
(b) Effective Date.--The amendments made by this section shall
apply to hydrogen produced after December 31, 2005, in taxable years
ending after such date.
SEC. 524. TAX HOLIDAY FOR HYDROGEN FUEL.
(a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 (relating to abatements, credits, and refunds) is amended
by adding at the end the following new section:
``SEC. 6431. FUELS USED IN HYDROGEN POWERED VEHICLES.
``(a) In General.--If any fuel taxable under section 4041 or 4081
is used to produce hydrogen as a means of propelling a hydrogen fuel
cell vehicle during the applicable period, the Secretary shall pay
(without interest) to the ultimate purchaser of such fuel an amount
equal to the amount determined by multiplying the number of gallons so
used by the rate at which tax was imposed on such fuel under section
4041 or 4081.
``(b) Applicable Period.--The term `applicable period' means the
period beginning after the date of the enactment of this section and
ending before January 1, 2014.
``(c) Hydrogen Fuel Cell Vehicle.--The term `hydrogen fuel cell
vehicle' has the meaning given such term by section 136A(b)(1).''.
(b) Conforming Amendment.--The table of sections for subchapter B
of chapter 65 of the Internal Revenue Code of 1986 is amended by
inserting after the item relating to section 6428 the following new
item:
``Sec. 6431. Fuels used in hydrogen powered vehicles.''.
(c) Effective Date.--The amendments made by this section shall
apply to fuel produced after the date of the enactment of this Act.
SEC. 525. SENSE OF CONGRESS REGARDING HYDROGEN FUEL TAXES.
It is the sense of Congress that no tax should be imposed on
hydrogen fuel before January 1, 2014.
SEC. 526. HYDROGEN FUELING FRINGE BENEFIT.
(a) In General.--Paragraph (1) of section 132(c) of the Internal
Revenue Code of 1986 (relating to qualified employee discounts) is
amended by striking ``or'' at the end of subparagraph (A), by striking
the period and inserting ``, or'' at the end of subparagraph (B), and
by adding at the end the following new subparagraph:
``(C) in the case of hydrogen fuel, 50 percent of
the price at which such fuel is being offered by the
employer to customers.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
SEC. 527. EXCLUSION OF EARNINGS FROM HYDROGEN FUEL SALES.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to items specifically excluded
from gross income) is amended by inserting after section 136 the
following new section:
``SEC. 136A. INCOME FROM HYDROGEN FUEL SALES.
``(a) Exclusion.--Gross income shall not include income
attributable to the sale of hydrogen fuel sold for use in a hydrogen
fuel cell vehicle.
``(b) Hydrogen Fuel Cell Vehicle.--For purposes of this section,
the term `hydrogen fuel cell vehicle' means a motor vehicle (as defined
in section 30(c)(2)) which is propelled by power derived from 1 or more
cells which convert chemical energy directly into electricity by
combining oxygen with hydrogen fuel which is stored on board the
vehicle in any form and may or may not require reformation prior to
use.
``(c) Termination.--This section shall not apply to income
attributable to sales after December 31, 2014.''.
(b) Conforming Amendment.--The table of sections for subpart B of
part III of subchapter B of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 136 the
following new item:
``Sec. 136A. Income from hydrogen fuel sales.''.
(c) Effective Date.--The amendments made by this section shall
apply to income received after December 31, 2005, in taxable years
ending after such date.
Subtitle E--Building the Skilled Workforce for Advanced Vehicle and
Energy Technology Deployment
SEC. 531. INCREASING SKILLED WORKFORCE.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Center of excellence.--The term ``center of
excellence'' means a facility established by an eligible entity
at which 1 or more qualifying programs are or will be carried
out.
(3) Eligible entity.--The term ``eligible entity'' means--
(A) a Federal agency (other than the Department of
Energy);
(B) a unit of State or local government;
(C) an institution of higher education; and
(D) a public elementary school or secondary school.
(4) Qualifying program.--The term ``qualifying program''
means a continuing education program, or any other education or
training program, that is--
(A) carried out by an institution or organization
certified under subsection (d); and
(B) designed to increase the skilled workforce of
the United States with respect to--
(i) advanced vehicle manufacturing;
(ii) alternative fuel vehicle repair and
maintenance; or
(iii) energy technology product development
and deployment.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Centers of Excellence.--
(1) Establishment.--The Secretary shall establish a program
under which the Secretary shall provide grants to eligible
entities to establish and operate or support centers of
excellence in the jurisdiction of the eligible entity.
(2) Application.--To be eligible to receive a grant under
paragraph (1), an eligible entity shall--
(A) submit to the Secretary an application at such
time, in such manner, and containing such information
as the Secretary may require; and
(B) enter into an agreement with the Secretary
relating to the establishment and operation or support
of the center of excellence of the eligible entity.
(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $50,000,000 for
each of fiscal years 2007 through 2016.
(c) Tuition Reimbursement.--
(1) In general.--The Secretary shall provide to any
individual that participates in a qualifying program
reimbursement in the amount of the tuition paid by the
individual for the qualifying program.
(2) Application.--To be eligible to receive reimbursement
under this subsection, an individual that participates in a
qualifying program shall submit to the Secretary an application
at such time, in such manner, and containing such information
as the Secretary may require.
(d) Certification Procedure.--As soon as practicable after the date
of enactment of this Act, the Secretary, in coordination with the
Secretary of Labor and the Administrator and in consultation with
affected labor unions, professional societies, academic institutions,
and businesses, shall develop a procedure under which the Secretary,
the Secretary of Labor, and the Administrator shall jointly certify
institutions and organizations to carry out qualifying programs.
(e) Tax Credits.--The Secretary, in coordination with the Secretary
of the Treasury, shall submit to Congress proposed legislation to
establish a tax credit for individuals, eligible entities, and
institutions and organizations certified under subsection (d) for
establishing, carrying out, or participating in qualifying programs or
centers of excellence.
SEC. 532. 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.
(c) Reimbursement.--
(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) Renewable Energy Certification and Training.--The Secretary of
Energy, in consultation with the Secretary of Education and the heads
of other appropriate agencies, shall prepare and implement a plan for--
(1) certifying renewable energy products and equipment; and
(2) developing appropriate voluntary standards and training
programs for renewable energy product and equipment
installation and installers.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
Subtitle F--Clean Energy Investment Administration
SEC. 541. DEFINITIONS.
In this subtitle:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the CEIA appointed under section 542(b)(1)(A).
(2) CEIA.--The term ``CEIA'' means the Clean Energy
Investment Administration established by section 542(a)(1).
(3) Commercial deployment project.--The term ``commercial
deployment project'' means any project using commercial
technology relating to any of the following:
(A) Renewable electric power systems based on wind,
solar, biomass, or geothermal energy.
(B) Component and subcomponent manufacturing and
conversion of manufacturing facilities for production
of renewable electric power systems based on wind,
solar, biomass, or geothermal energy.
(C) Efficient electrical generation, transmission,
and distribution technologies.
(D) Efficient end-use electric power technologies.
(4) Commercial technology.--The term ``commercial
technology'' means a technology demonstrated as technologically
and commercially viable in at least 1 commercial-scale
prototype.
(5) Cost.--The term ``cost'' has the meaning given the term
``cost of a loan guarantee'' within the meaning of section
502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a(5)(C)).
(6) Demonstration project.--The term ``demonstration
project'' means any project using demonstration technology
relating to any of the following:
(A) Renewable electric power systems based on wind,
solar, biomass, or geothermal energy.
(B) Component and subcomponent manufacturing for
wind, solar, biomass, and geothermal renewable energy
systems.
(C) Integrated gasification and combined-cycle
systems.
(D) Hydrogen fuel cell technology for residential,
industrial, or transportation applications.
(E) Carbon capture and sequestration practices and
technologies, including agricultural and forestry
practices that store and sequester carbon.
(F) Efficient electrical generation, transmission,
and distribution technologies, including component and
subcomponent manufacturing.
(G) Efficient end-use energy technologies.
(7) Demonstration technology.--The term ``demonstration
technology'' means a scientifically-viable technology that has
not yet been demonstrated as a commercial scale prototype.
(8) Eligible project.--The term ``eligible project''
means--
(A) a project described in section 544;
(B) any demonstration project that employs new or
significantly improved technologies as compared to
commercial technologies in services in the United
States at the time at which the loan guarantee is
issued, as determined by the Administrator;
(C) any commercial deployment project that employs
technologies that have been demonstrated as viable in
at least 1 commercial-scale prototype, as determined by
the Administrator; and
(D) with respect to any demonstration project or
commercial deployment project for which a loan
guarantee is sought under this subsection, a project
that--
(i) avoids or reduces energy imports;
(ii) creates jobs paying the prevailing
wage for similar work in the region in which
the project is located; or
(iii) avoids, reduces, or sequesters air
pollutants or anthropogenic emissions of
greenhouse gases.
(9) Loan guarantee.--
(A) In general.--The term ``loan guarantee'' has
the meaning given the term ``loan guarantee'' in
section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a).
(B) Inclusion.--The term ``loan guarantee''
includes a loan guarantee commitment (as defined in
section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a)).
(10) Obligation.--The term ``obligation'' means the loan or
other debt obligation that is guaranteed under this section.
(11) Success warrant.--The term ``success warrant'' means
equity in clean energy ventures that are successful as a result
of this Act.
SEC. 542. CLEAN ENERGY INVESTMENT ADMINISTRATION.
(a) Establishment.--
(1) In general.--There is established as an independent
agency in the Executive branch an agency to be known as the
``Clean Energy Investment Administration''.
(2) Supervision and affiliation.--The CEIA--
(A) shall be under the direction and supervision of
the President; and
(B) shall not be affiliated with, or be within, any
other agency or department of the Federal Government.
(b) Management.--
(1) Administrator.--
(A) In general.--The CEIA shall be managed by an
Administrator, who shall be a civilian appointed by the
President, by and with the advice and consent of the
Senate.
(B) Qualifications.--The Administrator of the CEIA
shall be an individual of outstanding qualifications
known to be familiar with and sympathetic to--
(i) clean energy technology;
(ii) clean energy policy; and
(iii) obstacles to development of clean
energy.
(C) Conflicts of interest.--The Administrator shall
not engage in any other business, vocation, or
employment than that of serving as Administrator.
(D) Discrimination.--With respect to programs
carried out by the CEIA--
(i) in managing those programs, including
grantmaking and guaranteeing programs and
functions, the Administrator shall not
discriminate on the basis of sex or marital
status against any person or small business
concern applying for or receiving assistance
from the CEIA; and
(ii) the CEIA shall give special
consideration to veterans of the Armed Forces
of the United States and their survivors or
dependents.
(E) Deputy administrator.--The President, by and
with the advice and consent of the Senate, may appoint
a Deputy Administrator to assist the Administrator in
carrying out the duties of the Administrator under this
subtitle.
SEC. 543. REQUIREMENTS SPECIFIC TO DEMONSTRATION PROJECTS AND
COMMERCIAL DEPLOYMENT PROJECTS.
(a) In General.--The CEIA shall operate separate financing programs
for eligible projects at the demonstration and commercial stages of
development.
(b) Demonstration Projects.--
(1) In general.--Subject to paragraph (3) and section 534,
the CEIA may provide to eligible entities (as determined by the
Administrator) financing for demonstration projects in the form
of grants, loan guarantees, or both.
(2) Use of funds.--A recipient of a grant under this
subsection may use funds from the grant to pay--
(A) the costs of 1 or more loan guarantees for an
eligible project; or
(B) not more than 25 percent of the costs of an
eligible project.
(3) Maximum aggregate loan guarantees.--The aggregate
amount of Federal loan guarantees that may be provided under
this subtitle for demonstration projects shall not exceed
$5,000,000,000.
(4) Maximum funding percentage for demonstration project
categories.--Not more than 25 percent of the grant funds and
loan guarantees provided under this subsection for a fiscal
year may be provided to any single category of demonstration
project described in section 531(6).
(5) Success warrants.--The developer of a demonstration
project under this subsection may provide to CEIA a success
warrant that--
(A) is worth up to 10 percent of the value of
Federal loan guarantees secured for the demonstration
project under this subsection; and
(B) shall be used by the CEIA to finance future
CEIA loan guarantees.
(c) Commercial Deployment Projects.--
(1) In general.--The CEIA may provide assistance for
commercial deployment projects under this subtitle only in the
form of loan guarantees.
(2) Maximum aggregate loan guarantees.--The aggregate
amount of loan guarantees that may be provided under this
subtitle for commercial deployment projects shall not exceed
$20,000,000,000.
SEC. 544. LOAN GUARANTEE PROGRAM.
(a) In General.--Except as provided in the Alaska Natural Gas
Pipeline Act (15 U.S.C. 720 et seq.), the Administrator shall make loan
guarantees under this subtitle for eligible projects on such terms and
conditions as the Administrator determines, after consultation with the
Secretary of the Treasury, to be appropriate and in accordance with
this section.
(b) Specific Appropriation or Contribution.--
(1) Demonstration projects.--No loan guarantee shall be
made for a demonstration project unless--
(A) an appropriation for the cost has been made; or
(B) the Administrator has--
(i) received from the borrower a payment in
full for the cost of the obligation; and
(ii) deposited the payment in the Treasury.
(2) Commercial projects.--No loan guarantee shall be made
for a commercial deployment project unless the Administrator
has--
(A) received from the borrower a payment in full
for the cost of the obligation; and
(B) deposited the payment in the Treasury.
(c) Maximum Amount.--Except as otherwise provided by law, a loan
guarantee by the Administrator for a demonstration project or
commercial deployment project shall not exceed an amount equal to 80
percent of the cost of the facility that is the subject of the loan
guarantee, as estimated at the time at which the loan guarantee is
issued.
(d) Repayment.--
(1) In general.--No loan guarantee shall be made under this
section unless the Administrator determines that there is a
reasonable prospect of repayment by the borrower of the
principal and interest on the obligation covered by the loan
guarantee.
(2) Sufficiency of amount.--No loan guarantee shall be made
under this section unless the Administrator determines that the
amount of the obligation covered by the loan guarantee (when
combined with amounts available to the borrower from other
sources) will be sufficient to carry out the eligible project
for which the loan guarantee is provided.
(3) Subordination.--A loan guarantee provided under this
section shall be subject to the condition that the obligation
covered by the loan guarantee is not subordinate to other
financing.
(e) Interest Rate.--An obligation covered by a loan guarantee under
this section shall bear interest at a rate that does not exceed a level
that the Administrator determines to be appropriate, taking into
account the prevailing rate of interest in the private sector for
similar loans and risks.
(f) Term.--The term of an obligation covered by a loan guarantee
under this section shall require full repayment over a period not to
exceed the lesser of--
(1) 30 years; or
(2) 90 percent of the projected useful life of the physical
asset to be financed by the obligation covered by the loan
guarantee (as determined by the Administrator).
(g) Defaults.--
(1) Payment by administrator.--
(A) In general.--If a borrower defaults on an
obligation covered by a loan guarantee under this
section (as defined in regulations promulgated by the
Administrator and specified in the loan guarantee
contract), the holder of the loan guarantee shall have
the right to demand payment of the unpaid amount from
the Administrator.
(B) Payment required.--Within such period as may be
specified in the loan guarantee or related agreements,
the Administrator shall pay to the holder of the loan
guarantee the unpaid interest on, and unpaid principal
of the obligation as to which the borrower has
defaulted, unless the Administrator finds that there
was no default by the borrower in the payment of
interest or principal or that the default has been
remedied.
(C) Forbearance.--Nothing in this subsection
precludes any forbearance by the holder of an
obligation covered by a loan guarantee under this
section for the benefit of the borrower, which
forbearance may be agreed upon by the parties to the
obligation and approved by the Administrator.
(2) Subrogation.--
(A) In general.--If the Administrator makes a
payment under paragraph (1), the Administrator shall be
subrogated to the rights of the recipient of the
payment as specified in the loan guarantee or related
agreements including, where appropriate, the authority
(notwithstanding any other provision of law)--
(i) to complete, maintain, operate, lease,
or otherwise dispose of any property acquired
pursuant to the loan guarantee or related
agreements; or
(ii) to permit the borrower, pursuant to an
agreement with the Administrator, to continue
to pursue the purposes of the eligible project
carried out as a result of the loan guarantee
if the Administrator determines the pursuit to
be in the public interest.
(B) Superiority of rights.--The rights of the
Administrator, with respect to any property acquired
pursuant to a loan guarantee or related agreements,
shall be superior to the rights of any other person
with respect to the property.
(C) Terms and conditions.--A loan guarantee
agreement shall include such detailed terms and
conditions as the Administrator determines to be
appropriate--
(i) to protect the interests of the United
States in the case of default; and
(ii) to have available all the patents and
technology necessary for any person selected,
including the Administrator, to complete and
operate the eligible project carried out as a
result of the loan guarantee.
(3) Payment of principal and interest by administrator.--
With respect to any obligation guaranteed under this section,
the Administrator may enter into a contract to pay, and pay,
holders of the obligation, for and on behalf of the borrower,
from funds appropriated for that purpose, the principal and
interest payments that become due and payable on the unpaid
balance of the obligation if the Administrator finds that--
(A) the borrower is unable to meet the payments and
is not in default;
(B) it is in the public interest to permit the
borrower to continue to pursue the purposes of the
project;
(C) the probable net benefit to the Federal
Government in paying the principal and interest will be
greater than that which would result in the event of a
default;
(D) the amount of the payment sought by the holders
of the obligation does not exceed the amount of
principal and interest that the borrower is obligated
to pay under the agreement being guaranteed; and
(E) the borrower agrees to reimburse the
Administrator for the payment (including interest) on
terms and conditions that are satisfactory to the
Administrator.
(4) Action by attorney general.--
(A) Notification.--If a borrower defaults on an
obligation covered by a loan guarantee under this
section, the Administrator shall notify the Attorney
General of the default.
(B) Recovery.--On notification, the Attorney
General shall take such action as is appropriate to
recover the unpaid principal and interest due from--
(i) such assets of the defaulting borrower
as are associated with the obligation; or
(ii) any other security pledged to secure
the obligation.
(h) Fees.--
(1) In general.--The Administrator shall charge and collect
fees for loan guarantees in amounts the Administrator
determines are sufficient to cover applicable administrative
expenses.
(2) Availability.--Fees collected under this subsection
shall--
(A) be deposited by the Administrator in the
Treasury; and
(B) remain available until expended, subject to
such other conditions as are contained in annual
appropriations Acts.
(i) Records; Audits.--
(1) In general.--A recipient of a loan guarantee shall keep
such records and other pertinent documents as the Administrator
shall prescribe by regulation, including such records as the
Administrator may require to facilitate an effective audit.
(2) Access.--The Administrator and the Comptroller General
of the United States (or designees) shall have access, for the
purpose of audit, to the records and other pertinent documents.
(j) Full Faith and Credit.--The full faith and credit of the United
States is pledged to the payment of all loan guarantees issued under
this section with respect to principal and interest.
(k) Qualification of Facilities Receiving Tax Credits.--A project
that receives 1 or more tax credits shall not be disqualified from
being considered to be an eligible project, or from receiving a grant
or loan guarantee, under this subtitle.
SEC. 545. ENERGY PARK TASK FORCES.
(a) Definitions.--In this section:
(1) Energy park.--The term ``energy park'' shall have such
meaning as is given the term by the Secretary, by regulation.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(3) Task force.--The term ``task force'' means any energy
park task force established under subsection (b)(1).
(b) Establishment.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary shall establish not less
than 4, and not more than 6, regional task forces, to be known
as ``energy park task forces''.
(2) Locations.--The Secretary shall establish task forces
under paragraph (1), to the maximum extent practicable--
(A) in geographically diverse regions of the United
States; and
(B) in regions with--
(i) well-established infrastructure for
high-rank and low-rank coal or biomass
production; or
(ii) significant demand for the products of
energy parks.
(c) Membership.--Each task force shall be comprised of individuals,
to be appointed by the Secretary, representing--
(1) local agricultural, coal, pulp and paper, chemical,
automotive, and electric power industries, including
distributed and renewable energy electricity companies where
applicable ;
(2) regional energy cooperatives;
(3) State energy, environmental, agricultural, and economic
development agencies;
(4) labor unions; and
(5) environmental and citizen groups.
(d) Duties.--
(1) Evaluations.--
(A) In general.--Each task force shall evaluate,
within the jurisdiction of the task force--
(i) the technical and economic potential
for the use of domestically-produced coal and
biomass and available renewable energy
resources as feedstock for energy parks to
produce useful products for markets associated
with--
(I) fertilizer;
(II) liquid fuels;
(III) steam; and
(IV) electricity; and
(ii) the impacts of the markets described
in clause (i) on--
(I) national security;
(II) the United States and regional
economies;
(III) job security and
unemployment;
(IV) the environment; and
(V) any other relevant industry.
(B) Inclusion.--An evaluation under subparagraph
(A) shall include an evaluation, within the
jurisdiction of the applicable task force, of carbon
management options and costs.
(2) Reports.--
(A) In general.--Not later than 18 months after the
date on which all members of a task force have been
appointed under subsection (c), the task force shall
submit to the Secretary a report describing the results
of the evaluation conducted under paragraph (1).
(B) Coordination.--In preparing a report under
subparagraph (A), a task force shall coordinate with--
(i) the 7 Regional Carbon Sequestration
Partnerships; and
(ii) other relevant Federal agencies.
(e) Action by Secretary.--After taking into consideration the
reports submitted under subsection (d)(2), including any related report
submitted by an entity described in subsection (d)(2)(B), the Secretary
shall submit to Congress a report proposing a national energy park
development program, including any applicable recommendations of the
Secretary.
SEC. 546. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated--
(1) section 544 $2,000,000,000 for each of fiscal years
2007 through 2011, of which--
(A) not less than $1,000,000,000 shall be used for
grants for demonstration projects; and
(B) not less than $1,000,000,000 shall be used for
loan guarantees; and
(2) this subtitle (other than section 544) such sums as are
necessary for each of fiscal years 2007 through 2011.
Subtitle G--Strategic Gasoline and Fuel Reserve
SEC. 548. STRATEGIC GASOLINE AND FUEL RESERVE.
(a) In General.--Title I of the Energy Policy and Conservation Act
is amended by inserting after part D (42 U.S.C. 6250 et seq.) the
following:
``PART V--STRATEGIC GASOLINE AND FUEL RESERVE
``SEC. 191. DEFINITIONS.
``In this part:
``(1) Gasoline.--The term `gasoline' means any finished
petroleum product or blendstock used as non-diesel automotive
fuel as determined by the Secretary to have the highest
fungibility in the selected region.
``(2) Reserve.--The term `Reserve' means the Strategic
Gasoline and Fuel Reserve established under section 192(a).
``SEC. 192. ESTABLISHMENT.
``(a) In General.--Notwithstanding any other provision of this Act,
the Secretary shall establish, maintain, and operate a Strategic
Gasoline and Fuel Reserve.
``(b) Not Component of Strategic Petroleum Reserve.--The Reserve is
not a component of the Strategic Petroleum Reserve established under
part B.
``(c) Capacity.--The Reserve shall contain at least--
``(1) 8,000,000 barrels of gasoline; and
``(2) 1,500,000 barrels of jet fuel.
``(d) Reserve Sites.--
``(1) Siting.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall determine not less
than 3 Reserve sites, and not more than 5 Reserve sites,
throughout the United States that are regionally strategic.
``(2) Operation.--The Reserve sites described in paragraph
(1) shall be operational not later than 3 years after the date
of enactment of this Act.
``(e) Authority.--In carrying out this part, the Secretary may--
``(1) construct, purchase, contract for, lease, or
otherwise acquire, in whole or in part, storage and related
facilities and storage services;
``(2) use, lease, maintain, sell, or otherwise dispose of
storage and related facilities acquired under this part;
``(3) acquire by purchase, exchange, lease, commercial
futures contract, or other means gasoline and fuel for storage
in the Reserve;
``(4) store gasoline and fuel in facilities not owned by
the United States; and
``(5) sell, exchange, or otherwise dispose of gasoline and
fuel from the Reserve, including to maintain--
``(A) the quality or quantity of the gasoline or
fuel in the Reserve; or
``(B) the operational capacity of the Reserve.
``(f) Fill Date.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall complete the process of filling the Reserve
under this section by March 1, 2010.
``(2) Extensions.--The Secretary may extend the due date
established under paragraph (1) if the Secretary determines
that filling the Reserve by that due date would cause--
``(A) a significant price increase or supply
shortage; and
``(B) an undue economic burden on the United
States.
``SEC. 193. RELEASE OF GASOLINE AND FUEL.
``(a) In General.--The Secretary shall release gasoline or fuel
from the Reserve only if--
``(1) the Secretary finds that there is a severe fuel
supply disruption by determining that--
``(A) a regional, national, or international supply
shortage of gasoline or fuel of significant scope and
duration has occurred;
``(B) a substantial increase in the price of
gasoline or fuel has resulted from the shortage;
``(C) the price increase is likely to cause a
significant adverse impact on the national or regional
economy; and
``(D) releasing gasoline or fuel from the Reserve
would assist directly and significantly in reducing the
adverse impact of the shortage; or
``(2)(A) the Governor of a State submits to the Secretary a
written request for a release from the Reserve that contains a
finding that--
``(i) a regional or statewide supply shortage of
gasoline or fuel of significant scope and duration has
occurred;
``(ii) a substantial increase in the price of
gasoline or fuel has resulted from the shortage; and
``(iii) the price increase is likely to cause a
significant adverse impact on the economy of the State;
and
``(B) the Secretary concurs with the findings of the
Governor under subparagraph (A) and determines that a release
from the Reserve--
``(i) would mitigate gasoline or fuel price
volatility in the State or region; and
``(ii) would not have an adverse effect on the
long-term economic viability of retail gasoline or fuel
markets in the State and adjacent States.
``(b) Procedure.--
``(1) Response of secretary.--The Secretary shall respond
to a request submitted under subsection (a)(2) not later than 5
days after receipt of the request by--
``(A) approving the request;
``(B) denying the request; or
``(C) requesting additional supporting information.
``(2) Release.--The Secretary shall establish procedures
governing the release of gasoline or fuel from the Reserve in
accordance with this subsection.
``(3) Requirements.--
``(A) Eligible entity.--In this paragraph, the term
`eligible entity' means an entity that is customarily
engaged in the sale or distribution or bulk storage of
gasoline or fuel.
``(B) Sale or disposal from reserve.--The
procedures established under this subsection shall
provide that the Secretary may--
``(i) sell gasoline or fuel from the
Reserve to an eligible entity through a
competitive process; or
``(ii) enter into an exchange agreement
with an eligible entity under which the
Secretary receives--
``(I) a greater volume of gasoline
or fuel as repayment from the eligible
entity than the volume provided to the
eligible entity; or
``(II) payment of the premium for
the loan in cash, which may be placed
in the Strategic Gasoline and Fuel
Reserve Fund established under section
195.
``(C) Test sale authority.--The Secretary may
perform a test sale under this paragraph for up to
1,000,000 barrels.
``(c) Continuing Evaluation.--The Secretary shall conduct a
continuing evaluation of the drawdown and sales procedures established
under this section.
``SEC. 194. REPORTS.
``(a) Gasoline and Fuel.--Not later than 180 days after the date of
enactment of this section, the Secretary shall submit to Congress and
the President a plan describing the manner in which the Department of
Energy will perform--
``(1) the acquisition of storage and related facilities or
storage services for the Reserve, including the use of storage
facilities not currently in use or not currently used to
capacity;
``(2) the acquisition of gasoline and fuel for storage in
the Reserve;
``(3) the anticipated methods of disposition of gasoline
and fuel from the Reserve;
``(4) the estimated costs of establishment, maintenance,
and operation of the Reserve;
``(5) efforts that the Department will take to minimize any
potential need for future drawdowns from the Reserve; and
``(6) actions to ensure the quality of the gasoline and
fuel in the Reserve are maintained.
``(b) Natural Gas and Diesel.--Not later than 180 days after the
date of enactment of this section, the Secretary shall submit to
Congress a report describing the feasibility of creating a natural gas,
diesel, and biofuels feedstock reserve similar to the Reserve under
this part.
``(c) Private Sector Storage Capacity.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Secretary shall submit to
Congress a report describing--
``(A) private sector storage capacity of refined
petroleum products; and
``(B) how expansion of existing storage capacity
might alleviate short-term supply constraints and the
resulting impact on consumer prices without the need
for using releases from the Reserve.
``(2) Release; incentives.--In preparing the report
required under this subsection, the Secretary shall assess--
``(A) under what conditions private sector storage
stocks should be released to moderate supply
disruptions and pricing impacts; and
``(B) what incentives, if any, are necessary to
promote the development of increased private sector
storage capacity.
``SEC. 195. STRATEGIC GASOLINE AND FUEL RESERVE FUND.
``(a) Establishment.--There is established in the Treasury of the
United States a separate revolving fund, to be known as the `Strategic
Gasoline and Fuel Reserve Fund' (referred to in this section as the
`Fund'), consisting of--
``(1) such amounts as are appropriated to the Fund under
section 196; and
``(2) all receipts from the sale, exchange, or disposition
of gasoline or fuel from the Reserve or from leasing of
facilities or providing other services to the private sector in
connection with the Reserve, which shall be deposited in the
Fund on receipt.
``(b) Use of Fund.--The Secretary may make expenditures from the
Fund, without further appropriation, for the operation and
administration of the Reserve.
``(c) Administration of Fund.--
``(1) In general.--The Secretary of the Treasury shall--
``(A) maintain the Fund; and
``(B) as soon as practicable after the end of each
fiscal year and after consultation with the Secretary,
submit to Congress a report describing the financial
condition and operations of the Fund during the
preceding fiscal year.
``(2) Budget.--
``(A) In general.--The Secretary shall submit the
budget for the Fund to the Office of Management and
Budget, along with the budget of the Department of
Energy.
``(B) Contents.--The budget shall--
``(i) consist of estimates made by the
Secretary of expenditures from the Fund and
other relevant financial matters for the
succeeding 5 fiscal years; and
``(ii) be included in the budget
transmitted under section 1105(a) of title 31,
United States Code.
``SEC. 196. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are
necessary to carry out this part, to remain available until
expended.''.
(b) Conforming Amendment.--The table of contents for title I of the
Energy Policy and Conservation Act (42 U.S.C. 6201 note) is amended by
striking the matter relating to the second part D (relating to
expiration) and inserting the following:
``PART V--Strategic Gasoline and Fuel Reserve
``Sec. 191. Definitions.
``Sec. 192. Establishment.
``Sec. 193. Release of gasoline and fuel.
``Sec. 194. Reports.
``Sec. 195. Strategic Gasoline and Fuel Reserve Fund.
``Sec. 196. Authorization of appropriations.''.
Subtitle H--Reports on United States Energy Emergency Preparedness
SEC. 551. POTENTIAL IMPACTS OF OIL SUPPLY SHOCK.
(a) In General.--Not later than 60 days after the date of enactment
of this Act, the President shall submit to Congress a report describing
the potential impact on domestic prices of crude oil, residual fuel
oil, and refined petroleum products of a disruption, for periods of 1
week, 1 year, and 5 years, respectively, of not less than--
(1) 30 percent of United States oil production;
(2) 20 percent of United States refining capacity; and
(3) 5 percent of global oil supplies.
(b) Projections and Remedies.--The President shall include in the
report under subsection (a)--
(1) projections of the likely impact of each disruption
described in that subsection on the United States economy; and
(2) detailed and prioritized recommendations for remedies
in response to each such disruption.
SEC. 552. PREVENTING FUTURE DISRUPTIONS.
(a) In General.--The Secretary of Energy shall enter into a
contract with the National Academy of Sciences under which the National
Academy shall conduct a review of expenditures and activities carried
out by each organization the total wholesale or retail United States
sales of crude oil, gasoline, and petroleum distillates of which are in
excess of $500,000,000 per year--
(1) to protect the energy supply system of the United
States from--
(A) terrorist attacks;
(B) international supply disruptions; and
(C) natural disasters; and
(2) to ensure a stable and reasonably-priced supply of
those products to consumers in the United States.
(b) Inclusions.--The review under subsection (a) shall include an
assessment of the preparations of each organization described in that
subsection with respect to the forecasted period of more frequent and
more intense hurricane activity in the Gulf of Mexico and other
vulnerable coastal areas.
Subtitle J--Impacts of Act on Reducing Greenhouse Gas Emissions
SEC. 561. CLIMATE CHANGE AND ENERGY POLICY FEEDBACK LOOP.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Secretary of Energy, in consultation with the
Secretary of Commerce and the Administrator of the Environmental
Protection Agency, shall submit to Congress a report on the probable
effects of this Act and the amendments made by this Act during calendar
years 2010, 2015, and 2020 on--
(1) total greenhouse gas emissions, nationally and by
sector;
(2) impacts on land, water, and ecosystems of expanded
coal, biofuels, oil, and natural gas extraction and production;
(3) job creation; and
(4) the economy.
(b) Inclusions.--The report shall include recommendations for
amendments to this Act and other relevant laws to ensure that the
effect of this Act will be to reduce total domestic greenhouse gas
emissions below levels projected in the report of the Energy
Information Administration entitled ``Annual Energy Outlook 2006'' for
each of calendar years 2010, 2015, and 2020.
Subtitle K--Energy Fairness for America
SEC. 571. ELIMINATION OF DEDUCTION FOR INTANGIBLE DRILLING AND
DEVELOPMENT COSTS FOR MAJOR OIL COMPANIES.
(a) In General.--Section 263(c) of the Internal Revenue Code of
1986 is amended by adding at the end the following new sentences:
``This subsection shall not apply during any taxable year with respect
to a major integrated oil company (as defined in section 43(f)(2)) if
during the preceding taxable year for the production of oil, the
average price of crude oil in the United States is greater than $34.71
per barrel, and for the production of natural gas, the average wellhead
price of natural gas in the United States is greater than $4.34 per
1,000 cubic feet. For purposes of the preceding sentence, the Secretary
shall determine average prices, taking into consideration the most
recent data reported by the Energy Information Administration. For
taxable years beginning after December 31, 2007, each dollar amount
specified in this subsection shall be adjusted to reflect changes for
the 12-month period ending the preceding September 30 in the Consumer
Price Index for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor.''
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 572. ELIMINATION OF ENHANCED OIL RECOVERY CREDIT FOR MAJOR OIL
COMPANIES.
(a) In General.--Section 43 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
``(f) Nonapplication of Section.--
``(1) In general.--This section shall not apply during any
taxable year with respect to a major integrated oil company if
during the preceding taxable year for the production of oil,
the average price of crude oil in the United States is greater
than $34.71 per barrel. For purposes of the preceding sentence,
the Secretary shall determine average prices, taking into
consideration the most recent data reported by the Energy
Information Administration. For taxable years beginning after
December 31, 2007, the dollar amount specified in this
paragraph shall be adjusted to reflect changes for the 12-month
period ending the preceding September 30 in the Consumer Price
Index for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor.
``(2) Major integrated oil company.--For purposes of this
subsection, the term `major integrated oil company' means, with
respect to any taxable year, a producer of crude oil--
``(A) which has an average daily worldwide
production of crude oil of at least 500,000 barrels for
the taxable year,
``(B) which had gross receipts in excess of
$1,000,000,000 for its last taxable year ending during
calendar year 2005, and
``(C) to whom subsection (c) of section 613A does
not apply by reason of paragraph (4) of section
613A(d), determined--
``(i) by substituting `15 percent' for `5
percent' each place it occurs in paragraph (3)
of section 613A(d), and
``(ii) without regard to whether subsection
(c) of section 613A does not apply by reason of
paragraph (2) of section 613A(d).
For purposes of subparagraphs (A) and (B), all persons treated
as a single employer under subsections (a) and (b) of section
52 shall be treated as 1 person and, in case of a short taxable
year, the rule under section 448(c)(3)(B) shall apply.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 573. OIL AND GAS ROYALTY-RELATED AMENDMENTS.
(a) Repeal.--Sections 344 through 346 of the Energy Policy Act of
2005 (42 U.S.C. 15902 et seq.) are repealed.
(b) Termination of Alaska Offshore Royalty Suspension.--Section
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(B)) is amended by striking ``and in the Planning Areas
offshore Alaska''.
SEC. 574. EXTENSION OF ELECTION TO EXPENSE CERTAIN REFINERIES.
(a) Extension.--
(1) In general.--Section 179C(c)(1) of the Internal Revenue
Code of 1986 (defining qualified refinery property) is
amended--
(A) by striking ``and before January 1, 2012'' in
subparagraph (B) and inserting ``and, in the case of
any qualified refinery described in subsection (d)(1),
before January 1, 2012'', and
(B) by inserting ``if described in subsection
(d)(1)'' after ``of which'' in subparagraph (F)(i).
(2) Conforming amendment.--Subsection (d) of section 179C
of the Internal Revenue Code of 1986 is amended to read as
follows:
``(d) Qualified Refinery.--For purposes of this section, the term
`qualified refinery' means any refinery located in the United States
which is designed to serve the primary purpose of processing liquid
fuel from--
``(1) crude oil, or
``(2) qualified fuels (as defined in section 45K(c)).''.
(3) Effective date.--The amendments made by this subsection
shall take effect as if included in the amendment made by
section 1323(a) of the Energy Policy Act of 2005.
(b) Nonapplication for Major Oil Companies.--
(1) In general.--Section 179C of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(i) Nonapplication of Section.--
``(1) In general.--This section shall not apply during any
taxable year with respect to a major integrated oil company if
during the preceding taxable year for the production of oil,
the average price of crude oil in the United States is greater
than $34.71 per barrel. For purposes of the preceding sentence,
the Secretary shall determine average prices, taking into
consideration the most recent data reported by the Energy
Information Administration. For taxable years beginning after
December 31, 2007, the dollar amount specified in this
paragraph shall be adjusted to reflect changes for the 12-month
period ending the preceding September 30 in the Consumer Price
Index for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor.
``(2) Major integrated oil company.--For purposes of this
subsection, the term `major integrated oil company' means, with
respect to any taxable year, a producer of crude oil--
``(A) which has an average daily worldwide
production of crude oil of at least 500,000 barrels for
the taxable year,
``(B) which had gross receipts in excess of
$1,000,000,000 for its last taxable year ending during
calendar year 2005, and
``(C) to whom subsection (c) of section 613A does
not apply by reason of paragraph (4) of section
613A(d), determined--
``(i) by substituting `15 percent' for `5
percent' each place it occurs in paragraph (3)
of section 613A(d), and
``(ii) without regard to whether subsection
(c) of section 613A does not apply by reason of
paragraph (2) of section 613A(d).
For purposes of subparagraphs (A) and (B), all persons treated
as a single employer under subsections (a) and (b) of section
52 shall be treated as 1 person and, in case of a short taxable
year, the rule under section 448(c)(3)(B) shall apply.''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 575. ELIMINATION OF AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES FOR MAJOR OIL COMPANIES.
(a) In General.--Section 167(h) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(5) Nonapplication of section.--
``(A) In general.--This subsection shall not apply
during any taxable year with respect to a major
integrated oil company if during the preceding taxable
year for the production of oil, the average price of
crude oil in the United States is greater than $34.71
per barrel, and for the production of natural gas, the
average wellhead price of natural gas in the United
States is greater than $4.34 per 1,000 cubic feet. For
purposes of the preceding sentence, the Secretary shall
determine average prices, taking into consideration the
most recent data reported by the Energy Information
Administration. For taxable years beginning after
December 31, 2007, each dollar amount specified in this
subparagraph shall be adjusted to reflect changes for
the 12-month period ending the preceding September 30
in the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the
Department of Labor.
``(B) Major integrated oil company.--For purposes
of this paragraph, the term `major integrated oil
company' means, with respect to any taxable year, a
producer of crude oil--
``(i) which has an average daily worldwide
production of crude oil of at least 500,000
barrels for the taxable year,
``(ii) which had gross receipts in excess
of $1,000,000,000 for its last taxable year
ending during calendar year 2005, and
``(iii) to whom subsection (c) of section
613A does not apply by reason of paragraph (4)
of section 613A(d), determined--
``(I) by substituting `15 percent'
for `5 percent' each place it occurs in
paragraph (3) of section 613A(d), and
``(II) without regard to whether
subsection (c) of section 613A does not
apply by reason of paragraph (2) of
section 613A(d).
For purposes of subparagraphs (A) and (B), all persons
treated as a single employer under subsections (a) and
(b) of section 52 shall be treated as 1 person and, in
case of a short taxable year, the rule under section
448(c)(3)(B) shall apply.''.
(b) Effective Date.--The amendments made by this section shall take
effect on and after the date of the enactment of this Act.
SEC. 576. REVALUATION OF LIFO INVENTORIES OF MAJOR INTEGRATED OIL
COMPANIES.
(a) General Rule.--Notwithstanding any other provision of law, if a
taxpayer is a major integrated oil company for its last taxable year
ending in calendar year 2005, the taxpayer shall--
(1) increase, effective as of the close of such taxable
year, the value of each historic LIFO layer of inventories of
crude oil, natural gas, or any other petroleum product (within
the meaning of section 4611) by the layer adjustment amount,
and
(2) decrease its cost of goods sold for such taxable year
by the aggregate amount of the increases under paragraph (1).
If the aggregate amount of the increases under paragraph (1) exceed the
taxpayer's cost of goods sold for such taxable year, the taxpayer's
gross income for such taxable year shall be increased by the amount of
such excess.
(b) Layer Adjustment Amount.--For purposes of this section--
(1) In general.--The term ``layer adjustment amount''
means, with respect to any historic LIFO layer, the product
of--
(A) $18.75, and
(B) the number of barrels of crude oil (or in the
case of natural gas or other petroleum products, the
number of barrel-of-oil equivalents) represented by the
layer.
(2) Barrel-of-oil equivalent.--The term ``barrel-of-oil
equivalent'' has the meaning given such term by section
29(d)(5) (as in effect before its redesignation by the Energy
Tax Incentives Act of 2005).
(c) Application of Requirement.--
(1) No change in method of accounting.--Any adjustment
required by this section shall not be treated as a change in
method of accounting.
(2) Underpayments of estimated tax.--No addition to the tax
shall be made under section 6655 of the Internal Revenue Code
of 1986 (relating to failure by corporation to pay estimated
tax) with respect to any underpayment of an installment
required to be paid with respect to the taxable year described
in subsection (a) to the extent such underpayment was created
or increased by this section.
(d) Major Integrated Oil Company.--For purposes of this section,
the term ``major integrated oil company'' has the meaning given such
term by section 43(f)(2) of the Internal Revenue Code of 1986.
SEC. 577. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO MAJOR
INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY
TAXPAYERS.
(a) In General.--Section 901 of the Internal Revenue Code of 1986
(relating to credit for taxes of foreign countries and of possessions
of the United States) is amended by redesignating subsection (m) as (n)
and by inserting after subsection (l) the following new subsection:
``(m) Special Rules Relating to Major Integrated Oil Companies
Which Are Dual Capacity Taxpayers.--
``(1) General rule.--Notwithstanding any other provision of
this chapter, any amount paid or accrued by a dual capacity
taxpayer which is a major integrated oil company to a foreign
country or possession of the United States for any period shall
not be considered a tax--
``(A) if, for such period, the foreign country or
possession does not impose a generally applicable
income tax, or
``(B) to the extent such amount exceeds the amount
(determined in accordance with regulations) which--
``(i) is paid by such dual capacity
taxpayer pursuant to the generally applicable
income tax imposed by the country or
possession, or
``(ii) would be paid if the generally
applicable income tax imposed by the country or
possession were applicable to such dual
capacity taxpayer.
Nothing in this paragraph shall be construed to imply
the proper treatment of any such amount not in excess
of the amount determined under subparagraph (B).
``(2) Dual capacity taxpayer.--For purposes of this
subsection, the term `dual capacity taxpayer' means, with
respect to any foreign country or possession of the United
States, a person who--
``(A) is subject to a levy of such country or
possession, and
``(B) receives (or will receive) directly or
indirectly a specific economic benefit (as determined
in accordance with regulations) from such country or
possession.
``(3) Generally applicable income tax.--For purposes of
this subsection--
``(A) In general.--The term `generally applicable
income tax' means an income tax (or a series of income
taxes) which is generally imposed under the laws of a
foreign country or possession on income derived from
the conduct of a trade or business within such country
or possession.
``(B) Exceptions.--Such term shall not include a
tax unless it has substantial application, by its terms
and in practice, to--
``(i) persons who are not dual capacity
taxpayers, and
``(ii) persons who are citizens or
residents of the foreign country or possession.
``(4) Major integrated oil company.--For purposes of this
subsection, the term `major integrated oil company' has the
meaning given such term by section 43(f)(2).''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxes paid or accrued in taxable years beginning after
the date of the enactment of this Act.
(2) Contrary treaty obligations upheld.--The amendments
made by this section shall not apply to the extent contrary to
any treaty obligation of the United States.
SEC. 578. DENIAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC
PRODUCTION OF OIL, NATURAL GAS, OR PRIMARY PRODUCTS
THEREOF.
(a) In General.--Subparagraph (B) of section 199(c)(4) of the
Internal Revenue Code of 1986 (relating to exceptions) is amended by
striking ``or'' at the end of clause (ii), by striking the period at
the end of clause (iii) and inserting ``, or'', and by inserting after
clause (iii) the following new clause:
``(iv) in the case of any major integrated
oil company (as defined in section 43(f)(2)),
the production, refining, processing,
transportation, or distribution of oil, natural
gas, or any primary product thereof during any
taxable year described in section
167(h)(5)(A).''.
(b) Conforming Amendments.--Section 199(c)(4) of the Internal
Revenue Code of 1986 is amended--
(1) in subparagraph (A)(i)(III) by striking ``electricity,
natural gas,'' and inserting ``electricity'', and
(2) in subparagraph (B)(ii) by striking ``electricity,
natural gas,'' and inserting ``electricity''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
SEC. 579. RULES RELATING TO FOREIGN OIL AND GAS INCOME.
(a) Separate Basket for Foreign Tax Credit.--
(1) Years before 2007.--Paragraph (1) of section 904(d) of
the Internal Revenue Code of 1986 (relating to separate
application of section with respect to certain categories of
income), as in effect for years beginning before 2007, is
amended by striking `and' at the end of subparagraph (H), by
redesignating subparagraph (I) as subparagraph (J), and by
inserting after subparagraph (H) the following new
subparagraph:
``(I) foreign oil and gas income, and''.
(2) 2007 and after.--Paragraph (1) of section 904(d) of
such Code, as in effect for years beginning after 2006, is
amended by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting ``, and'', and by adding at the end the following:
``(C) foreign oil and gas income.''.
(b) Definition.--
(1) Years before 2007.--Paragraph (2) of section 904(d) of
the Internal Revenue Code of 1986, as in effect for years
beginning before 2007, is amended by redesignating
subparagraphs (H) and (I) as subparagraphs (I) and (J),
respectively, and by inserting after subparagraph (G) the
following new subparagraph:
``(H) Foreign oil and gas income.--The term
`foreign oil and gas income' has the meaning given such
term by section 954(g).''.
(2) 2007 and after.--Section 904(d)(2) of such Code, as in
effect for years after 2006, is amended by redesignating
subparagraphs (J) and (K) as subparagraphs (K) and (L) and by
inserting after subparagraph (I) the following:
``(J) Foreign oil and gas income.--For purposes of
this section--
``(i) In general.--The term `foreign oil
and gas income' has the meaning given such term
by section 954(g).
``(ii) Coordination.--Passive category
income and general category income shall not
include foreign oil and gas income (as so
defined).''.
(c) Conforming Amendments.--
(1) Section 904(d)(3)(F)(i) of the Internal Revenue Code of
1986 is amended by striking ``or (E)'' and inserting ``(E), or
(I)''.
(2) Section 907(a) of such Code is hereby repealed.
(3) Section 907(c)(4) of such Code is hereby repealed.
(4) Section 907(f) of such Code is hereby repealed.
(d) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after the date of the
enactment of this Act.
(2) Years after 2006.--The amendments made by paragraphs
(1)(B) and (2)(B) shall apply to taxable years beginning after
December 31, 2006.
(3) Transitional rules.--
(A) Separate basket treatment.--Any taxes paid or
accrued in a taxable year beginning on or before the
date of the enactment of this Act, with respect to
income which was described in subparagraph (I) of
section 904(d)(1) of such Code (as in effect on the day
before the date of the enactment of this Act), shall be
treated as taxes paid or accrued with respect to
foreign oil and gas income to the extent the taxpayer
establishes to the satisfaction of the Secretary of the
Treasury that such taxes were paid or accrued with
respect to foreign oil and gas income.
(B) Carryovers.--Any unused oil and gas extraction
taxes which under section 907(f) of such Code (as so in
effect) would have been allowable as a carryover to the
taxpayer's first taxable year beginning after the date
of the enactment of this Act (without regard to the
limitation of paragraph (2) of such section 907(f) for
first taxable year) shall be allowed as carryovers
under section 904(c) of such Code in the same manner as
if such taxes were unused taxes under such section
904(c) with respect to foreign oil and gas extraction
income.
(C) Losses.--The amendment made by subsection
(c)(3) shall not apply to foreign oil and gas
extraction losses arising in taxable years beginning on
or before the date of the enactment of this Act.
SEC. 580. ELIMINATION OF DEFERRAL FOR FOREIGN OIL AND GAS EXTRACTION
INCOME.
(a) General Rule.--Paragraph (1) of section 954(g) of the Internal
Revenue Code of 1986 (defining foreign base company oil related income)
is amended to read as follows:
``(1) In general.--Except as otherwise provided in this
subsection, the term `foreign oil and gas income' means, in the
case of any major integrated oil company (as defined in section
43(f)(2)) during any taxable year described in section
167(h)(5)(A), any income of a kind which would be taken into
account in determining the amount of--
``(A) foreign oil and gas extraction income (as
defined in section 907(c)), or
``(B) foreign oil related income (as defined in
section 907(c)).''.
(b) Conforming Amendments.--
(1) Subsections (a)(5), (b)(5), and (b)(6) of section 954,
and section 952(c)(1)(B)(ii)(I) of the Internal Revenue Code of
1986, are each amended by striking ``base company oil related
income'' each place it appears (including in the heading of
subsection (b)(8)) and inserting ``oil and gas income''.
(2) Subsection (b)(4) of section 954 of such Code is
amended by striking ``base company oil-related income'' and
inserting ``oil and gas income''.
(3) The subsection heading for subsection (g) of section
954 of such Code is amended by striking ``Foreign Base Company
Oil Related Income'' and inserting ``Foreign Oil and Gas
Income''.
(4) Subparagraph (A) of section 954(g)(2) of such Code is
amended by striking ``foreign base company oil related income''
and inserting ``foreign oil and gas income''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after the date
of the enactment of this Act, and to taxable years of United States
shareholders ending with or within such taxable years of foreign
corporations.
Subtitle L--Protection and Retention of Value of Publicly-Owned Energy
Resources
SEC. 591. SUSPENSION OF ROYALTY RELIEF.
(a) Requirement.--Subject to subsection (b), the Secretary of the
Interior (referred to in this subtitle as the ``Secretary'') shall
suspend the application of any provision of Federal law under which a
person would otherwise be provided relief from a requirement to pay a
royalty for the production of oil or natural gas from Federal land
(including submerged land) occurring after the date of enactment of
this Act during a period in which--
(1) for the production of oil, the average price of crude
oil in the United States during the 4-week period immediately
preceding the suspension is greater than $34.71 per barrel; and
(2) for the production of natural gas, the average wellhead
price of natural gas in the United States during the 4-week
period immediately preceding the suspension is greater than
$4.34 per 1,000 cubic feet.
(b) Determination of Average Prices.--
(1) Data.--For purposes of subsection (a), the Secretary
shall determine average prices, taking into consideration the
most recent data reported by the Energy Information
Administration.
(2) Adjustment.--For fiscal year 2008 and each subsequent
fiscal year, each dollar amount specified in subsection (a)
shall be adjusted to reflect changes for the 12-month period
ending the preceding November 30 in the Consumer Price Index
for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor.
SEC. 592. RENEGOTIATION OF EXISTING LEASES.
(a) In General.--Not later than 90 days after the date of enactment
of this Act, the Secretary shall make a determination regarding the
ability of the Secretary to renegotiate leases that--
(1) are in effect prior to the date of enactment of this
Act;
(2) authorize the production of oil or natural gas on
Federal land; and
(3) do not contain terms at least equal to the royalty
relief price thresholds described in section 591.
(b) Affirmative Determination.--
(1) In general.--If the Secretary determines that the
Secretary has the authority to renegotiate leases described in
subsection (a), the Secretary shall immediately offer to
renegotiate the terms of those leases to include the royalty
relief price thresholds described in section 591.
(2) Failure to renegotiate.--If a lessee fails to
renegotiate under paragraph (1), the Secretary shall preclude
that lessee from--
(A) entering into new leases; or
(B) obtaining other existing leases or interests in
leases.
(c) Negative Determination.--If the Secretary determines that the
Secretary does not have the authority to renegotiate leases described
in subsection (a), the Secretary shall immediately submit to Congress
recommendations for changes to law that will--
(1) provide the authority necessary; or
(2) produce the same level of revenue from leases for the
production of oil and gas from Federal land that will otherwise
be lost due to the failure of lessees to renegotiate and modify
the terms of existing leases as described in subsection (b)(1).
<all>