[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7239 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 7239
To reduce gasoline prices, to lessen the dependence of the United
States on foreign oil, to strengthen the economy of the United States,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 29, 2008
Mr. Udall of Colorado introduced the following bill; which was referred
to the Committee on Energy and Commerce, and in addition to the
Committees on Agriculture, Ways and Means, Science and Technology,
Oversight and Government Reform, Transportation and Infrastructure, and
Natural Resources, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To reduce gasoline prices, to lessen the dependence of the United
States on foreign oil, to strengthen the economy of the United States,
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 ``American Energy,
American Innovation Act of 2008''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
TITLE I--SHORT-TERM RELIEF FOR AMERICAN ENERGY CONSUMERS
Subtitle A--Consumer Energy Supply
Sec. 101. Definitions.
Sec. 102. Sale and replacement of oil from the strategic petroleum
reserve.
Subtitle B--Commodity Markets Transparency and Accountability
Sec. 111. Definition of energy commodity.
Sec. 112. Speculative limits and transparency of off-shore trading.
Sec. 113. Disaggregation of index funds and other data in energy and
agriculture markets.
Sec. 114. Detailed reporting from index traders and swap dealers.
Sec. 115. Transparency and recordkeeping authorities.
Sec. 116. Trading limits to prevent excessive speculation.
Sec. 117. Modifications to core principles applicable to position
limits for contracts in agricultural and
energy commodities.
Sec. 118. CFTC administration.
Sec. 119. Review of prior actions.
Sec. 120. Review of over-the-counter markets.
Sec. 121. Studies; reports.
Sec. 122. Over-the-counter authority.
Sec. 123. Expedited process.
TITLE II--NATIONAL COMMISSION ON ENERGY INDEPENDENCE
Sec. 201. Establishment of Commission.
Sec. 202. Purpose.
Sec. 203. Composition of Commission.
Sec. 204. Functions of Commission.
Sec. 205. Powers of Commission.
Sec. 206. Reports.
Sec. 207. Staff of Commission.
Sec. 208. Compensation and travel expenses.
Sec. 209. Meetings.
Sec. 210. Authorization of appropriations.
TITLE III--ESTABLISH A NATIONAL RENEWABLE ELECTRICITY STANDARD
Sec. 301. National renewable electricity standard.
TITLE IV--APOLLO PROJECT FOR CONVERSION OF MOTOR VEHICLES TO
ALTERNATIVE FUELS
Sec. 401. Sense of Senate on conversion of motor vehicles to
alternative fuels and energy independence.
Sec. 402. Consumer tax credits for advanced vehicles.
Sec. 403. Research and development program for alternative fuel vehicle
technologies.
Sec. 404. Federal fleet requirements.
TITLE V--ENHANCED CONSERVATION AND EFFICIENCY
Subtitle A--Enhancing Efficiency of Conventional Vehicles
Part I--Fuel Economy Standards
Sec. 501. Increase corporate fuel economy standards.
Sec. 502. More realistic determination of fuel efficiency standards.
Sec. 503. Fuel efficiency standards revisions.
Sec. 504. Automobile safety.
Part II--Other Provisions
Sec. 511. Lightweight materials research and development.
Sec. 512. Federal Government gasoline consumption.
Sec. 513. Credit for fuel-efficient motor vehicles.
Sec. 514. Exclusion from heavy truck tax for idling reduction units and
advanced insulation.
Sec. 515. Idling reduction tax credit.
Sec. 516. Determination of certification standards by Secretary of
Energy for certifying idling reduction
devices.
Sec. 517. Extension and modification of alternative motor vehicle
credit.
Subtitle B--Alternative Fuels and Biofuels
Part I--General Provisions
Sec. 521. Bioenergy research and development.
Sec. 522. Alternative fueled automobile production requirement.
Sec. 523. Definition of renewable biomass.
Sec. 524. Loan guarantees for renewable energy pipelines.
Part II--Tax Provisions
Sec. 530. Reference.
Sec. 531. Expansion of special allowance to cellulosic biomass alcohol
fuel plant property.
Sec. 532. Credit for producers of fossil free alcohol.
Sec. 533. Extension and modification of credit for biodiesel used as
fuel.
Sec. 534. Extension and modification of alternative fuel credit.
Sec. 535. Extension of suspension of taxable income limit on percentage
depletion for oil and natural gas produced
from marginal properties.
Sec. 536. Extension and modification of election to expense certain
refineries.
Sec. 537. Hydrogen installation, infrastructure, and fuel costs.
Sec. 538. Alternative fuel vehicle refueling property credit.
Sec. 539. Certain income and gains relating to alcohol fuels and
mixtures, biodiesel fuels and mixtures, and
alternative fuels and mixtures treated as
qualifying income for publicly traded
partnerships.
Subtitle C--Other Provisions
Part I--General Provisions
Sec. 541. Energy efficiency and conservation block grants.
Sec. 542. Weatherization assistance program for low-income persons.
Sec. 543. Renewable energy workforce.
Part II--Tax Provisions
Sec. 550. Reference.
subpart a--renewable energy incentives
Sec. 551. Renewable energy credit.
Sec. 552. Production credit for electricity produced from marine
renewables.
Sec. 553. Energy credit.
Sec. 554. Credit for residential energy efficient property.
Sec. 555. Special rule to implement FERC and State electric
restructuring policy.
Sec. 556. New clean renewable energy bonds.
subpart b--carbon mitigation provisions
Sec. 561. Expansion and modification of advanced coal project
investment credit.
Sec. 562. Expansion and modification of coal gasification investment
credit.
Sec. 563. Temporary increase in coal excise tax.
Sec. 564. Special rules for refund of the coal excise tax to certain
coal producers and exporters.
Sec. 565. Carbon audit of the tax code.
subpart c--energy conservation and efficiency
Sec. 571. Qualified energy conservation bonds.
Sec. 572. Credit for nonbusiness energy property.
Sec. 573. Energy efficient commercial buildings deduction.
Sec. 574. Modifications of energy efficient appliance credit for
appliances produced after 2007.
Sec. 575. Accelerated recovery period for depreciation of smart meters
and smart grid systems.
Sec. 576. Qualified green building and sustainable design projects.
subpart d--geothermal incentives
Sec. 581. Energy credit for geothermal heat pump systems.
Sec. 582. 3-year accelerated depreciation period for geothermal heat
pump systems.
TITLE VI--INCREASED DOMESTIC PRODUCTION
Subtitle A--Outer Continental Shelf
Sec. 601. Prohibition on leasing.
Sec. 602. Opening of certain areas to oil and gas leasing.
Sec. 603. Coastal State roles and responsibilities.
Sec. 604. Protection of the environment and conservation of the natural
resources of the Outer Continental Shelf.
Sec. 605. Limitations.
Sec. 606. Prohibition on leasing in certain Federal protected areas.
Sec. 607. No effect on applicable law.
Sec. 608. Buy American requirements.
Sec. 609. Small, woman-owned, and minority-owned businesses.
Sec. 610. OCS joint permitting offices.
Sec. 611. Definitions.
Subtitle B--Drill Responsibly in Leased Lands
Sec. 621. Issuance of new leases.
Sec. 622. Fair return on production of Federal oil and gas resources.
Subtitle C--Coal Innovation Direct Loan Program
Sec. 631. Coal innovation direct loan program.
Subtitle D--Nuclear Power
Sec. 641. Nuclear Regulatory Commission.
Sec. 642. Nuclear energy workforce.
Sec. 643. Interagency working group to promote domestic manufacturing
base for nuclear components and equipment.
Subtitle E--Carbon Sequestrations
Sec. 651. Tax credit for carbon dioxide sequestration.
TITLE VII--OFFSETS
Sec. 700. Reference.
Subtitle A--Ending Unneeded Tax Breaks
Sec. 701. Limitation of deduction for income attributable to domestic
production of oil, gas, or primary products
thereof.
Sec. 702. 7-year amortization of geological and geophysical
expenditures for certain major integrated
oil companies.
Sec. 703. Clarification of determination of foreign oil and gas
extraction income.
Sec. 704. Clarification of eligibility for renewable diesel credit.
Sec. 705. Clarification that credits for fuel are designed to provide
an incentive for United States production.
Subtitle B--Additional Revenue Provisions
Sec. 711. Nonqualified deferred compensation from certain tax
indifferent parties.
Sec. 712. Delay in application of worldwide allocation of interest.
Sec. 713. Time for payment of corporate estimated taxes.
TITLE I--SHORT-TERM RELIEF FOR AMERICAN ENERGY CONSUMERS
Subtitle A--Consumer Energy Supply
SEC. 101. DEFINITIONS.
In this subtitle--
(1) the term ``light grade petroleum'' means crude oil with
an API gravity of 30 degrees or higher;
(2) the term ``heavy grade petroleum'' means crude oil with
an API gravity of 26 degrees or lower; and
(3) the term ``Secretary'' means the Secretary of Energy.
SEC. 102. SALE AND REPLACEMENT OF OIL FROM THE STRATEGIC PETROLEUM
RESERVE.
(a) Initial Petroleum Sale and Replacement.--Notwithstanding
section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241),
the Secretary shall publish a plan not later than 15 days after the
date of enactment of this Act to--
(1) sell, in the amounts and on the schedule described in
subsection (b), light grade petroleum from the Strategic
Petroleum Reserve and acquire an equivalent volume of heavy
grade petroleum;
(2) deposit the cash proceeds from sales under paragraph
(1) into the SPR Petroleum Account established under section
167 of the Energy Policy and Conservation Act (42 U.S.C. 6247);
and
(3) from the cash proceeds deposited pursuant to paragraph
(2), withdraw the amount necessary to pay for the direct
administrative and operational costs of the sale and
acquisition.
(b) Amounts and Schedule.--The sale and acquisition described in
subsection (a) shall require the offer for sale of a total quantity of
70,000,000 barrels of light grade petroleum from the Strategic
Petroleum Reserve. The sale shall commence, whether or not a plan has
been published under subsection (a), not later than 30 days after the
date of enactment of this Act and be completed no more than 6 months
after the date of enactment of this Act, with at least 20,000,000
barrels to be offered for sale within the first 60 days after the date
of enactment of this Act. In no event shall the Secretary sell barrels
of oil under subsection (a) that would result in a Strategic Petroleum
Reserve that contains fewer than 90 percent of the total amount of
barrels in the Strategic Petroleum Reserve as of the date of enactment
of this Act. Heavy grade petroleum, to replace the quantities of light
grade petroleum sold under this section, shall be obtained through
acquisitions which--
(1) shall commence no sooner than 6 months after the date
of enactment of this Act;
(2) shall be completed, at the discretion of the Secretary,
not later than 5 years after the date of enactment of this Act;
(3) shall be carried out in a manner so as to maximize the
monetary value to the Federal Government; and
(4) shall be acquired using the receipts from the sale of
light petroleum authorized under this section.
(c) Deferrals.--The Secretary is encouraged to, when economically
beneficial and practical, grant requests to defer scheduled deliveries
of petroleum to the Reserve under subsection (a) if the deferral will
result in a premium paid in additional barrels of oil which will reduce
the cost of oil acquisition and increase the volume of oil delivered to
the Reserve or yield additional cash bonuses.
Subtitle B--Commodity Markets Transparency and Accountability
SEC. 111. DEFINITION OF ENERGY COMMODITY.
(a) Definition of Energy Commodity.--Section 1a of the Commodity
Exchange Act (7 U.S.C. 1a) is amended--
(1) by redesignating paragraphs (13) through (34) as
paragraphs (14) through (35), respectively; and
(2) by inserting after paragraph (12) the following:
``(13) Energy commodity.--The term `energy commodity'
means--
``(A) coal;
``(B) crude oil, gasoline, diesel fuel, jet fuel,
heating oil, and propane;
``(C) electricity;
``(D) natural gas; and
``(E) any other substance that is used as a source
of energy, as the Commission, in its discretion, deems
appropriate.''.
(b) Conforming Amendments.--
(1) Section 2(c)(2)(B)(i)(II)(cc) of the Commodity Exchange
Act (7 U.S.C. 2(c)(2)(B)(i)(II)(cc)) is amended--
(A) in subitem (AA), by striking ``section 1a(20)''
and inserting ``section 1a(21)''; and
(B) in subitem (BB), by striking ``section 1a(20)''
and inserting ``section 1a(21)''.
(2) Section 13106(b)(1) of the Food, Conservation, and
Energy Act of 2008 is amended by striking ``section 1a(32)''
and inserting ``section 1a''.
(3) Section 402 of the Legal Certainty for Bank Products
Act of 2000 (7 U.S.C. 27) is amended--
(A) in subsection (a)(7), by striking ``section
1a(20)'' and inserting ``section 1a''; and
(B) in subsection (d)--
(i) in paragraph (1)(B), by striking
``section 1a(33)'' and inserting ``section
1a''; and
(ii) in paragraph (2)(D), by striking
``section 1a(13)'' and inserting ``section
1a''.
SEC. 112. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF-SHORE TRADING.
(a) In General.--Section 4 of the Commodity Exchange Act (7 U.S.C.
6) is amended by adding at the end the following:
``(e) Foreign Boards of Trade.--
``(1) In general.--The Commission may not permit a foreign
board of trade to provide to the members of the foreign board
of trade or other participants located in the United States
direct access to the electronic trading and order matching
system of the foreign board of trade with respect to an
agreement, contract, or transaction in an energy or
agricultural commodity that settles against any price
(including the daily or final settlement price) of 1 or more
contracts listed for trading on a registered entity, unless--
``(A) the foreign board of trade makes public daily
trading information regarding the agreement, contract,
or transaction that is comparable to the daily trading
information published by the registered entity for the
1 or more contracts against which the agreement,
contract, or transaction traded on the foreign board of
trade settles; and
``(B) the foreign board of trade (or the foreign
futures authority that oversees the foreign board of
trade)--
``(i) adopts position limits (including
related hedge exemption provisions) for the
agreement, contract, or transaction that are
comparable, taking into consideration the
relative sizes of the respective markets, to
the position limits (including related hedge
exemption provisions) adopted by the registered
entity for the 1 or more contracts against
which the agreement, contract, or transaction
traded on the foreign board of trade settles;
``(ii) has the authority to require or
direct market participants to limit, reduce, or
liquidate any position the foreign board of
trade (or the foreign futures authority that
oversees the foreign board of trade) determines
to be necessary to prevent or reduce the threat
of price manipulation, excessive speculation as
described in section 4a, price distortion, or
disruption of delivery or the cash settlement
process;
``(iii) agrees to promptly notify the
Commission of any change regarding--
``(I) the information that the
foreign board of trade will make
publicly available;
``(II) the position limits that the
foreign board of trade or foreign
futures authority will adopt and
enforce;
``(III) the position reductions
required to prevent manipulation,
excessive speculation as described in
section 4a, price distortion, or
disruption of delivery or the cash
settlement process; and
``(IV) any other area of interest
expressed by the Commission to the
foreign board of trade or foreign
futures authority;
``(iv) provides information to the
Commission regarding large trader positions in
the agreement, contract, or transaction that is
comparable to the large trader position
information collected by the Commission for the
1 or more contracts against which the
agreement, contract, or transaction traded on
the foreign board of trade settles; and
``(v) provides the Commission with
information necessary to publish reports on
aggregate trader positions for the agreement,
contract, or transaction traded on the foreign
board of trade that are comparable to such
reports for 1 or more contracts against which
the agreement, contract, or transaction traded
on the foreign board of trade settles.
``(2) Existing foreign boards of trade.--Paragraph (1)
shall not be effective with respect to any agreement, contract,
or transaction in an energy commodity executed on a foreign
board of trade to which the Commission had granted direct
access permission before the date of the enactment of this
subsection until the date that is 180 days after such date of
enactment.''.
(b) Liability of Registered Persons Trading on a Foreign Board of
Trade.--
(1) Section 4(a) of such Act (7 U.S.C. 6(a)) is amended by
inserting ``or by subsection (f)'' after ``Unless exempted by
the Commission pursuant to subsection (c)''.
(2) Section 4 of such Act (7 U.S.C. 6) is further amended
by adding at the end the following:
``(f) A person registered with the Commission, or exempt from
registration by the Commission, under this Act may not be found to have
violated subsection (a) with respect to a transaction in, or in
connection with, a contract of sale of a commodity for future delivery
if the person has reason to believe the transaction and the contract is
made on or subject to the rules of a board of trade that is legally
organized under the laws of a foreign country, authorized to act as a
board of trade by a foreign futures authority, subject to regulation by
the foreign futures authority, and has not been determined by the
Commission to be operating in violation of subsection (a).''.
(c) Contract Enforcement for Foreign Futures Contracts.--Section
22(a) of such Act (7 U.S.C. 25(a)) is amended by adding at the end the
following:
``(5) A contract of sale of a commodity for future delivery
traded or executed on or through the facilities of a board of
trade, exchange, or market located outside the United States
for purposes of section 4(a) shall not be void, voidable, or
unenforceable, and a party to such a contract shall not be
entitled to rescind or recover any payment made with respect to
the contract, based on the failure of the foreign board of
trade to comply with any provision of this Act.''.
SEC. 113. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN ENERGY AND
AGRICULTURE MARKETS.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by
section 112 of this Act, is amended by adding at the end the following:
``(g) Disaggregation of Index Funds and Other Data in Energy and
Agriculture Markets.--Subject to section 8 and beginning within 30 days
of the issuance of the final rule required by section 4h, the
Commission shall disaggregate and make public weekly--
``(1) the number of positions and total value of index
funds and other passive, long-only and short-only positions (as
defined by the Commission) in all energy and agricultural
markets to the extent such information is available; and
``(2) data on speculative positions relative to bona fide
physical hedgers in those markets to the extent such
information is available.''.
SEC. 114. DETAILED REPORTING FROM INDEX TRADERS AND SWAP DEALERS.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by
sections 112 and 113 of this Act, is amended by adding at the end the
following:
``(h) Index Traders and Swap Dealers Reporting.--The Commission
shall issue a proposed rule defining and classifying index traders and
swap dealers (as those terms are defined by the Commission) for
purposes of data reporting requirements and setting routine detailed
reporting requirements for such entities in designated contract
markets, derivatives transaction execution facilities, foreign boards
of trade subject to section 4(e), and electronic trading facilities
with respect to significant price discovery contracts with respect to
exempt and agricultural commodities not later than 60 days after the
date of the enactment of this subsection, and issue a final rule within
120 days after such date of enactment.''.
SEC. 115. TRANSPARENCY AND RECORDKEEPING AUTHORITIES.
(a) In General.--Section 4g(a) of the Commodity Exchange Act (7
U.S.C. 6g(a)) is amended--
(1) by inserting ``a'' before ``futures commission
merchant''; and
(2) by inserting ``and transactions and positions traded
pursuant to subsection (g), (h)(1), or (h)(2) of section 2, or
any exemption issued by the Commission by rule, regulation or
order,'' after ``United States or elsewhere,''.
(b) Reports of Deals Equal to or in Excess of Trading Limits.--
Section 4i of such Act (7 U.S.C. 6i) is amended--
(1) in the first sentence--
(A) by inserting ``(a)'' before ``It shall''; and
(B) by inserting ``in the United States or
elsewhere, and of transactions and positions in any
such commodity entered into pursuant to subsection (g),
(h)(1), or (h)(2) of section 2, or any exemption issued
by the Commission by rule, regulation or order'' before
``, and of cash or spot''; and
(2) by striking all that follows the 1st sentence and
inserting the following:
``(b) With respect to agricultural and energy commodities, upon
special call by the Commission, any person shall provide to the
Commission, in a form and manner and within the period specified in the
special call, books and records of all transactions and positions
traded on or subject to the rules of any board of trade or electronic
trading facility in the United States or elsewhere, or pursuant to
subsection (g), (h)(1), or (h)(2) of section 2, or any exemption issued
by the Commission by rule, regulation, or order, as the Commission may
determine appropriate to deter and prevent price manipulation or any
other disruption to market integrity or to diminish, eliminate, or
prevent excessive speculation as described in section 4a(a).
``(c) Such books and records described in subsections (a) and (b)
shall show complete details concerning all such transactions,
positions, inventories, and commitments, including the names and
addresses of all persons having any interest therein, shall be kept for
a period of 5 years, and shall be open at all times to inspection by
any representative of the Commission or the Department of Justice. For
the purposes of this section, the futures and cash or spot transactions
and positions of any person shall include such transactions and
positions of any persons directly or indirectly controlled by the
person.''.
(c) Conforming Amendments.--
(1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended--
(A) by inserting ``4g(a), 4i,'' before ``5a (to'';
and
(B) by inserting ``, and the regulations of the
Commission pursuant to section 4c(b) requiring
reporting in connection with commodity option
transactions,'' before ``shall apply''.
(2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is
amended to read as follows:
``(A) sections 4g(a), 4i, 5b, and 12(e)(2)(B), and
the regulations of the Commission pursuant to section
4c(b) requiring reporting in connection with commodity
option transactions;''.
SEC. 116. TRADING LIMITS TO PREVENT EXCESSIVE SPECULATION.
Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' after ``(a)''; and
(B) by adding after and below the end the
following:
``(2) In accordance with the standards set forth in
paragraph (1) of this subsection and consistent with the good
faith exception cited in subsection (b)(2), with respect to
agricultural commodities enumerated in section 1a(4) and energy
commodities, the Commission, within 60 days after the date of
the enactment of this paragraph, shall by rule, regulation, or
order establish limits on the amount of positions that may be
held by any person with respect to contracts of sale for future
delivery or with respect to options on such contracts or
commodities traded on or subject to the rules of a contract
market or derivatives transaction execution facility, or on an
electronic trading facility as a significant price discovery
contract.
``(3) In establishing the limits required in paragraph (2),
the Commission shall set limits--
``(A) on the number of positions that may be held
by any person for the spot month, each other month, and
the aggregate number of positions that may be held by
any person for all months;
``(B) to the maximum extent practicable, in its
discretion--
``(i) to diminish, eliminate, or prevent
excessive speculation as described under this
section;
``(ii) to deter and prevent market
manipulation, squeezes, and corners;
``(iii) to ensure sufficient market
liquidity for bona fide hedgers; and
``(iv) to ensure that the price discovery
function of the underlying market is not
disrupted; and
``(C) to the maximum extent practicable, in its
discretion, take into account the total number of
positions in fungible agreements, contracts, or
transactions that a person can hold in agricultural and
energy commodities in other markets.
``(4)(A) Not later than 150 days after the date of the
enactment of this paragraph, the Commission shall convene a
Position Limit Agricultural Advisory Group and a Position Limit
Energy Group, each group consisting of representatives from--
``(i) 5 predominantly commercial short hedgers of
the actual physical commodity for future delivery;
``(ii) 5 predominantly commercial long hedgers of
the actual physical commodity for future delivery;
``(iii) 4 noncommercial participants in markets for
commodities for future delivery; and
``(iv) each designated contract market or
derivatives transaction execution facility upon which a
contract in the commodity for future delivery is
traded, and each electronic trading facility that has a
significant price discovery contract in the commodity.
``(B) Not later than 60 days after the date on which the
advisory groups are convened under subparagraph (A), and
annually thereafter, the advisory groups shall submit to the
Commission advisory recommendations regarding the position
limits to be established in paragraph (2) and a recommendation
as to whether the position limits should be administered
directly by the Commission, or by the registered entity on
which the commodity is listed (with enforcement by both the
registered entity and the Commission).''; and
(2) in subsection (c)--
(A) by inserting ``(1)'' after ``(c)''; and
(B) by adding after and below the end the
following:
``(2) With respect to agricultural and energy commodities,
for the purposes of contracts of sale for future delivery and
options on such contracts or commodities, a bona fide hedging
transaction or position is a transaction or position that--
``(A)(i) represents a substitute for transactions
to be made or positions to be taken at a later time in
a physical marketing channel;
``(ii) is economically appropriate to the reduction
of risks in the conduct and management of a commercial
enterprise; and
``(iii) arises from the potential change in the
value of--
``(I) assets that a person owns, produces,
manufactures, processes, or merchandises or
anticipates owning, producing, manufacturing,
processing, or merchandising;
``(II) liabilities that a person owns or
anticipates incurring; or
``(III) services that a person provides,
purchases, or anticipates providing or
purchasing; or
``(B) reduces risks attendant to a position
resulting from a transaction that--
``(i) was executed pursuant to subsection
(g), (h)(1), or (h)(2) of section 2, or an
exemption issued by the Commission by rule,
regulation or order; and
``(ii) was executed opposite a counterparty
for which the transaction would qualify as a
bona fide hedging transaction pursuant to
paragraph (2)(A) of this subsection.''.
SEC. 117. MODIFICATIONS TO CORE PRINCIPLES APPLICABLE TO POSITION
LIMITS FOR CONTRACTS IN AGRICULTURAL AND ENERGY
COMMODITIES.
(a) Contracts Traded on Contract Markets.--Section 5(d)(5) of the
Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended by striking all
that follows ``adopt'' and inserting ``, for speculators, position
limitations with respect to agricultural commodities enumerated in
section 1a(4) or energy commodities, and position limitations or
position accountability with respect to other commodities, where
necessary and appropriate.''.
(b) Contracts Traded on Derivatives Transaction Execution
Facilities.--Section 5a(d)(4) of such Act (7 U.S.C. 7a(d)(4)) is
amended by striking all that follows ``adopt'' and inserting ``, for
speculators, position limitations with respect to energy commodities,
and position limitations or position accountability with respect to
other commodities, where necessary and appropriate for a contract,
agreement or transaction with an underlying commodity that has a
physically deliverable supply.''.
(c) Significant Price Discovery Contracts.--Section
2(h)(7)(C)(ii)(IV) of such Act (7 U.S.C. 2(h)(7)(C)(ii)(IV)) is amended
by striking ``where necessary'' and all that follows through ``in
significant price discovery contracts'' and inserting ``for
speculators, position limitations with respect to significant price
discovery contracts in energy commodities, and position limitations or
position accountability with respect to significant price discovery
contracts in other commodities''.
SEC. 118. CFTC ADMINISTRATION.
(a) Additional Commodity Futures Trading Commission Employees for
Improved Enforcement.--Section 2(a)(7) of the Commodity Exchange Act (7
U.S.C. 2(a)(7)) is amended by adding at the end the following:
``(D) Additional employees.--As soon as practicable
after the date of the enactment of this subparagraph,
subject to appropriations, the Commission shall appoint
at least 100 full-time employees (in addition to the
employees employed by the Commission as of the date of
the enactment of this subparagraph)--
``(i) to increase the public transparency
of operations in agriculture and energy
markets;
``(ii) to improve the enforcement of this
Act in those markets; and
``(iii) to carry out such other duties as
are prescribed by the Commission.''.
(b) Inspector General of Commodity Futures Trading Commission.--
(1) Elevation of office.--
(A) Inclusion of cftc in definition of
establishment.--Section 11(2) of the Inspector General
Act of 1878 (5 U.S.C. App.) is amended by striking ``or
the Export-Import Bank,'' and inserting ``, the Export-
Import Bank, or the Commodity Futures Trading
Commission,''.
(B) Exclusion of cftc from definition of designated
federal entity.--Section 8G(a)(2) of such Act (5 U.S.C.
App.) is amended by striking ``the Commodity Futures
Trading Commission,''.
(2) Transition.--Until such time as the Inspector General
of the Commodity Futures Trading Commission is appointed in
accordance with section 3 of the Inspector General Act of 1978,
the Office of Inspector General of the Commission shall
continue in effect as provided in such Act before the date of
the enactment of this Act.
SEC. 119. REVIEW OF PRIOR ACTIONS.
Notwithstanding any provision of the Commodity Exchange Act, the
Commodity Futures Trading Commission shall review, as appropriate, all
regulations, rules, exemptions, exclusions, guidance, no action
letters, orders, other actions taken by or on behalf of the Commission,
and any action taken pursuant to the Commodity Exchange Act by an
exchange, self-regulatory organization, or any other registered entity,
that are currently in effect, to ensure that such prior actions are in
compliance with the provisions of this title.
SEC. 120. REVIEW OF OVER-THE-COUNTER MARKETS.
(a) Study.--The Commodity Futures Trading Commission shall conduct
a study--
(1) to determine the efficacy, practicality, and
consequences of establishing position limits for agreements,
contracts, or transactions conducted in reliance on sections
2(g) and 2(h) of the Commodity Exchange Act and of any
exemption issued by the Commission by rule, regulation or
order, as a means to deter and prevent price manipulation or
any other disruption to market integrity or to diminish,
eliminate, or prevent excessive speculation as described in
section 4a of such Act for physical-based commodities; and
(2) to determine the efficacy, practicality, and
consequences of establishing aggregate position limits for
similar agreements, contracts, or transactions for physical-
based commodities traded--
(A) on designated contract markets;
(B) on derivatives transaction execution
facilities; and
(C) in reliance on such sections 2(g) and 2(h) and
of any exemption issued by the Commission by rule,
regulation or order.
(b) Public Hearings.--The Commission shall provide for not less
than 2 public hearings to take testimony, on the record, as part of the
fact-gathering process in preparation of the report.
(c) Report and Recommendations.--Not less than 12 months after the
date of the enactment of this section, the Commission shall provide to
the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a
report that--
(1) describes the results of the study; and
(2) provides recommendations on any actions necessary to
deter and prevent price manipulation or any other disruption to
market integrity or to diminish, eliminate, or prevent
excessive speculation as described in section 4a of the
Commodity Exchange Act for physical-based commodities,
including--
(A) any additional statutory authority that the
Commission determines to be necessary to implement the
recommendations; and
(B) a description of the resources that the
Commission considers to be necessary to implement the
recommendations.
SEC. 121. STUDIES; REPORTS.
(a) Study Relating to International Regulation of Energy Commodity
Markets.--
(1) In general.--The Comptroller General of the United
States shall conduct a study of the international regime for
regulating the trading of energy commodity futures and
derivatives.
(2) Analysis.--The study shall include an analysis of, at a
minimum--
(A) key common features and differences among
countries in the regulation of energy commodity
trading, including with respect to market oversight and
enforcement standards and activities;
(B) variations among countries with respect to the
use of position limits, position accountability levels,
or other thresholds to detect and prevent price
manipulation, excessive speculation as described in
section 4a of the Commodity Exchange Act, or other
unfair trading practices;
(C) variations in practices regarding the
differentiation of commercial and noncommercial
trading;
(D) agreements and practices for sharing market and
trading data among futures authorities and between
futures authorities and the entities that the futures
authorities oversee; and
(E) agreements and practices for facilitating
international cooperation on market oversight,
compliance, and enforcement.
(3) Report.--Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that--
(A) describes the results of the study;
(B) addresses whether there is excessive
speculation, and if so, the effects of any such
speculation and energy price volatility on energy
futures; and
(C) provides recommendations to improve openness,
transparency, and other necessary elements of a
properly functioning market in a manner that protects
consumers in the United States.
(b) Study Relating to Effects of Speculators on Agriculture and
Energy Futures Markets and Agriculture and Energy Prices.--
(1) Study.--The Comptroller General of the United States
shall conduct a study of the effects of speculators on
agriculture and energy futures markets and agriculture and
energy prices.
(2) Analysis.--The study shall include an analysis of, at a
minimum--
(A) the effect of increased amounts of capital in
agriculture and energy futures markets;
(B) the impact of the roll-over of positions by
index fund traders and swap dealers on agriculture and
energy futures markets and agriculture and energy
prices; and
(C) the extent to which each factor described in
subparagraphs (A) and (B) and speculators--
(i) affect--
(I) the pricing of agriculture and
energy commodities; and
(II) risk management functions; and
(ii) contribute to economically efficient
price discovery.
(3) Report.--Not later than 2 years after the date of the
enactment of this Act, the Comptroller General shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes the results of the study.
SEC. 122. OVER-THE-COUNTER AUTHORITY.
(a) In General.--Section 2 of the Commodity Exchange Act (7 U.S.C.
2) is amended by adding at the end the following:
``(j) Over-the-Counter Authority.--
``(1) Within 60 days after the date of the enactment of
this subsection, the Commission shall, by rule, regulation, or
order, require routine reporting as it deems in its discretion
appropriate, on not less than a monthly basis, of agreements,
contracts, or transactions, with regard to an agricultural or
energy commodity, entered into in reliance on subsection (g),
(h)(1), or (h)(2) of section 2, or any exemption issued by the
Commission by rule, regulation, or order that are fungible (as
defined by the Commission) with agreements, contracts, or
transactions traded on or subject to the rules of any board of
trade or of any electronic trading facility with respect to a
significant price discovery contract.
``(2) Notwithstanding subsections (g), (h)(1), and (h)(2)
of section 2, and any exemption issued by the Commission by
rule, regulation, or order, the Commission shall assess and
issue a finding on whether the agreements, contracts, or
transactions reported pursuant to paragraph (1), alone or in
conjunction with other similar agreements, contracts, or
transactions, have the potential to--
``(A) disrupt the liquidity or price discovery
function on a registered entity;
``(B) cause a severe market disturbance in the
underlying cash or futures market for an agricultural
or energy commodity; or
``(C) prevent or otherwise impair the price of a
contract listed for trading on a registered entity from
reflecting the forces of supply and demand in any
market for an agricultural commodity enumerated in
section 1a(4) or an energy commodity.
``(3) If the Commission makes a finding pursuant to
paragraph (2) of this subsection, the Commission may, in its
discretion, utilize its authority under section 8a(9) to impose
position limits for speculators on the agreements, contracts,
or transactions involved and take corrective actions to enforce
the limits.''.
(b) Conforming Amendments.--
(1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by
inserting ``subsection (j) of this section, and'' after
``(other than''.
(2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is
amended by inserting ``subsection (j) of this section and''
before ``sections''.
(3) Section 8a(9) of such Act (7 U.S.C. 12a(a)(9)) is
amended by inserting after ``of the Commission's action'' the
following: ``, and to fix and enforce limits to agreements,
contracts, or transaction subject to section 2(j)(1) pursuant
to a finding made under section 2(j)(2)''.
SEC. 123. EXPEDITED PROCESS.
The Commodity Futures Trading Commission may use emergency and
expedited procedures (including any administrative or other procedure
as appropriate) to carry out this title and the amendments made by this
title if, in its discretion, it deems it necessary to do so.
TITLE II--NATIONAL COMMISSION ON ENERGY INDEPENDENCE
SEC. 201. ESTABLISHMENT OF COMMISSION.
There is established in the legislative branch the National
Commission on Energy Independence (referred to in this title as the
``Commission'').
SEC. 202. PURPOSE.
The purpose of the Commission is to study and make recommendations
to Congress and the President to remove technical obstacles and policy
barriers for the United States to achieve independence from foreign
oil.
SEC. 203. COMPOSITION OF COMMISSION.
(a) Members.--The Commission shall be composed of 12 members, of
whom--
(1) 1 member shall be jointly appointed by the majority
leader of the Senate and the Speaker of the House of
Representatives, who shall serve as Chairperson of the
Commission;
(2) 1 member shall be jointly appointed by the minority
leader of the Senate and the minority leader of the House of
Representatives, who shall serve as Vice-Chairperson of the
Commission;
(3)(A) 1 member shall be jointly appointed by the Chair and
ranking member of the Committee on the Environment and Public
Works of the Senate; and
(B) 1 member shall be jointly appointed by the Chair and
ranking member of the Committee on Natural Resources of the
House of Representatives, in consultation with the Select
Committee on Energy Independence and Global Warming of the
House of Representatives;
(4)(A) 1 member shall be jointly appointed by the Chair and
ranking member of the Committee on Energy and Natural Resources
of the Senate; and
(B) 1 member shall be jointly appointed by the Chair and
ranking member of the Committee on Energy and Commerce of the
House of Representatives;
(5)(A) 1 member shall be jointly appointed by the Chair and
ranking member of the Committee on Commerce, Science and
Transportation of the Senate; and
(B) 1 member shall be jointly appointed by the Chair and
ranking member of the Committee on Science and Technology of
the House of Representatives and the Committee on
Transportation and Infrastructure of the House of
Representatives;
(6)(A) 1 member shall be jointly appointed by the Chair and
ranking member of the Committee on Agriculture, Nutrition and
Forestry of the Senate; and
(B) 1 member shall be jointly appointed by the Chair and
ranking member of the Committee on Agriculture of the House of
Representatives; and
(7)(A) 1 member shall be jointly appointed by the Chair and
ranking member of the Committee on Finance of the Senate; and
(B) 1 member shall be jointly appointed by the Chair and
ranking member of the Committee on Ways and Means of the House
of Representatives.
(b) Qualifications; Initial Meeting.--
(1) Political party affiliation.--Each appointment to the
Commission shall be made without regard to political party
affiliation and on a nonpartisan basis.
(2) Nongovernmental appointees.--An individual appointed to
the Commission may not be an officer or employee of the Federal
Government or any State or local government--
(A) on the date on which the individual is
appointed to the Commission; or
(B) at any time during the term of service on the
Commission of the individual.
(3) Other qualifications.--It is the sense of Congress that
individuals appointed to the Commission should be prominent
United States citizens, with national recognition and
significant depth of experience in such professions as
governmental service, science, energy, economics, environment,
agriculture, manufacturing, public administration, or commerce
(including aviation matters).
(4) Deadline for appointment.--Each member of the
Commission shall be appointed not later than 90 days after the
date of enactment of this Act.
(c) Meetings.--
(1) Initial meeting.--The Commission shall hold the initial
meeting of the Commission as soon as practicable, and not later
than 60 days, after the date on which all members of the
Commission are appointed.
(2) Subsequent meetings.--After the initial meeting under
paragraph (1), the Commission shall meet at the call of--
(A) the Chairperson; or
(B) a majority of the members of the Commission.
(d) Quorum.--7 members of the Commission shall constitute a quorum.
(e) Vacancies.--A vacancy on the Commission--
(1) shall not affect the powers of the Commission; and
(2) shall be filled in the same manner in which the
original appointment was made.
SEC. 204. FUNCTIONS OF COMMISSION.
The functions of the Commission are--
(1) to examine, study, and evaluate the technical obstacles
and policy barriers that need to be addressed in order for the
United States to achieve independence from foreign oil through
a balanced combination of--
(A) increased domestic production of energy;
(B) enhanced energy conservation and efficiency;
and
(C) the accelerated development of alternative
fuels and technologies to transition the United States
motor vehicle fleet away from reliance on petroleum-
based fuels;
(2) to investigate matters that relate to achieving
independence from foreign oil, such as--
(A) carbon capture and storage;
(B) nuclear and renewable energy; and
(C) the need for upgrading and transitioning the
national grid and other energy infrastructure; and
(3) to submit to Congress and the President such reports as
are required by section 106 containing such findings,
conclusions, and recommendations as the Commission shall
determine to be necessary to advise and assist Congress and the
President in developing legislation, procedures, rules, and
regulations relating to the removal of technical obstacles and
policy barriers to achieve independence from foreign oil.
SEC. 205. POWERS OF COMMISSION.
(a) In General.--
(1) Rules.--The Commission may establish such rules and
regulations relating to administrative procedures as are
reasonably necessary to enable the Commission to carry out this
title.
(2) Hearings and evidence.--The Commission or, on the
authority of the Commission, any subcommittee or member of the
Commission may, for the purpose of carrying out this title,
hold such hearings and sit and act at such times and places,
take such testimony, receive such evidence, and administer such
oaths as the Commission determines to be appropriate.
(b) Contracting.--To the extent amounts are made available in
appropriations Acts, the Commission may enter into contracts to assist
the Commission in carrying out the duties of the Commission under this
title.
(c) Information From Federal Agencies.--
(1) In general.--The Commission may secure directly from a
Federal agency such information, suggestions, estimates, and
statistics as the Commission considers to be necessary to carry
out this title.
(2) Provision of information.--On request of the
Commission, the head of the agency shall provide the
information, suggestions, estimates, and statistics to the
Commission.
(3) Treatment.--Information provided to the Commission
under this subsection shall be received, handled, stored, and
disseminated by members and staff of the Commission in
accordance with applicable law (including regulations) and
Executive orders.
(d) Assistance From Federal Agencies.--
(1) General services administration.--The Administrator of
General Services shall provide to the Commission, on a
reimbursable basis, administrative support and other services
to assist the Commission in carrying out the duties of the
Commission under this title.
(2) Other departments and agencies.--In addition to the
assistance described in paragraph (1), any other Federal
department or agency may provide to the Commission such
services, funds, facilities, staff, and other support as the
head of the department or agency determines to be appropriate.
(e) Gifts.--The Commission may accept, use, and dispose of gifts or
donations of services or property only in accordance with the ethical
rules applicable to congressional officers and employees.
(f) Volunteer Services.--
(1) In general.--Notwithstanding section 1342 of title 31,
United States Code, the Commission may accept and use the
services of volunteers serving without compensation.
(2) Reimbursement.--The Commission may reimburse a
volunteer for office supplies, local travel expenses, and other
travel expenses, including per diem in lieu of subsistence, in
accordance with section 5703 of title 5, United States Code.
(3) Treatment.--A volunteer of the Commission shall be
considered to be an employee of the Federal Government in
carrying out activities for the Commission, for purposes of--
(A) chapter 81 of title 5, United States Code;
(B) chapter 11 of title 18, United States Code; and
(C) chapter 171 of title 28, United States Code.
(g) Postal Services.--The Commission may use the United States
mails in the same manner and under the same conditions as other
agencies of the Federal Government.
SEC. 206. REPORTS.
Not later than 1 year after the date on which all members of the
Commission are appointed under section 103 and each year thereafter,
the Commission shall submit to Congress and the President a report that
contains the findings, conclusions, and recommendations of the
Commission to remove the technical obstacles and policy barriers that
need to be addressed in order for the United States to achieve
independence from foreign oil and address related matters in accordance
with section 103.
SEC. 207. STAFF OF COMMISSION.
(a) In General.--The Chairperson of the Commission (in consultation
with the Vice-Chairperson of the Commission) may, without regard to the
civil service laws (including regulations), appoint and terminate a
staff director and such other additional personnel as are necessary to
enable the Commission to perform the duties of the Commission.
(b) Compensation.--
(1) In general.--Except as provided in paragraph (2), the
Chairperson of the Commission may fix the compensation of the
staff director and other personnel without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of
title 5, United States Code, relating to classification of
positions and General Schedule pay rates.
(2) Maximum rate of pay.--The rate of pay for the staff
director and other personnel shall not exceed the rate payable
for level IV of the Executive Schedule under section 5316 of
title 5, United States Code.
(c) Status.--The staff director and any employee (not including any
member) of the Commission shall be considered to be employees under
section 2105 of title 5, United States Code, for purposes of chapters
63, 81, 83, 84, 85, 87, 89, and 90 of that title.
(d) Consultant Services.--The Commission may procure the services
of experts and consultants in accordance with section 3109 of title 5,
United States Code, at rates not to exceed the daily rate paid to an
individual occupying a position at level IV of the Executive Schedule
under section 5315 of title 5, United States Code.
SEC. 208. COMPENSATION AND TRAVEL EXPENSES.
(a) Compensation of Members.--A member of the Commission shall be
compensated at a rate equal to the daily equivalent of the annual rate
of basic pay prescribed for level IV of the Executive Schedule under
section 5315 of title 5, United States Code, for each day (including
travel time) during which the member is engaged in the performance of
the duties of the Commission.
(b) Travel Expenses.--A member of the Commission shall be allowed
travel expenses, including per diem in lieu of subsistence, at rates
authorized for an employee of an agency under subchapter I of chapter
57 of title 5, United States Code, while away from the home or regular
place of business of the member in the performance of the duties of the
Commission.
SEC. 209. MEETINGS.
(a) In General.--The Federal Advisory Committee Act (5 U.S.C. App.)
shall not apply to the Commission.
(b) Public Meetings and Release of Public Versions of Reports.--The
Commission shall ensure, to the maximum extent practicable, that--
(1) all hearings of the Commission are available to the
public, including by--
(A) providing live and recorded public access to
hearings on the Internet; and
(B) publishing all transcripts and records of
hearings at such time and in such manner as is agreed
to by the majority of members of the Commission; and
(2) all reports, findings, and conclusions are made public.
(c) Public Hearings.--Public hearings of the Commission shall be
conducted in a manner consistent with the protection of information
provided to or developed for or by the Commission as required by any
applicable law (including regulations) or Executive order.
SEC. 210. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Commission such sums
as are necessary to carry out this title, to remain available until
expended.
TITLE III--ESTABLISH A NATIONAL RENEWABLE ELECTRICITY STANDARD
SEC. 301. NATIONAL RENEWABLE ELECTRICITY STANDARD.
(a) Standard.--Title VI of the Public Utility Regulatory Policies
Act of 1978 is amended by adding at the end the following:
``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.
``(a) Definitions.--For purposes of this section:
``(1) Biomass.--The term `biomass' means--
``(A) cellulosic (plant fiber) organic materials
from a plant that is planted for the purpose of being
used to produce energy;
``(B) nonhazardous, plant or algal matter waste
materials that is segregated from other waste materials
and is derived from--
``(i) an agricultural crop, crop byproduct
or residue resource;
``(ii) waste such as landscape or right-of-
way trimmings, but not including--
``(I) municipal solid waste;
``(II) recyclable postconsumer
waste paper;
``(III) painted, treated, or
pressurized wood;
``(IV) wood contaminated with
plastic or metals; or
``(iii) gasified animal waste;
``(iv) landfill methane; and
``(C) with respect to material removed from
National Forest System lands the term includes only
organic material from--
``(i) precommercial thinnings;
``(ii) slash;
``(iii) brush; and
``(iv) mill residues.
``(2) Eligible facility.--The term `eligible facility'
means--
``(A) a facility for the generation of electric
energy from a renewable energy resource that is placed
in service on or after the date of enactment of this
section or the effective date of the applicable State
renewable portfolio standard program; or
``(B) a repowering or cofiring increment that is
placed in service on or after the date of enactment of
this section or the effective date of the applicable
State renewable portfolio standard program, at a
facility for the generation of electric energy from a
renewable energy resource that was placed in service
before that date.
``(3) Existing facility offset.--The term `existing
facility offset' means renewable energy generated from an
existing facility, not classified as an eligible facility, that
is owned or under contract, directly or indirectly, to a retail
electric supplier on the date of enactment of this section.
``(4) Incremental hydropower.--The term `incremental
hydropower' means additional generation that is achieved from
increased efficiency or additions of capacity on or after the
date of enactment of this section or the effective date of the
applicable State renewable portfolio standard program, at a
hydroelectric facility that was placed in service before that
date.
``(5) Indian land.--The term `Indian land' means--
``(A) any land within the limits of any Indian
reservation, pueblo, or rancheria;
``(B) any land not within the limits of any Indian
reservation, pueblo, or rancheria title to which was on
the date of enactment of this paragraph either held by
the United States for the benefit of any Indian tribe
or individual or held by any Indian tribe or individual
subject to restriction by the United States against
alienation;
``(C) any dependent Indian community; and
``(D) any land conveyed to any Alaska Native
corporation under the Alaska Native Claims Settlement
Act.
``(6) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, nation, or other organized group or
community, including any Alaskan Native village or regional or
village corporation as defined in or established pursuant to
the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), which is recognized as eligible for the special programs
and services provided by the United States to Indians because
of their status as Indians.
``(7) Renewable energy.--The term `renewable energy' means
electric energy generated by a renewable energy resource.
``(8) Renewable energy resource.--The term `renewable
energy resource' means solar (including solar water heating),
wind, ocean, tidal, geothermal energy, biomass, landfill gas,
or incremental hydropower.
``(9) Repowering or cofiring increment.--The term
`repowering or cofiring increment' means--
``(A) the additional generation from a modification
that is placed in service on or after the date of
enactment of this section or the effective date of the
applicable State renewable portfolio standard program,
to expand electricity production at a facility used to
generate electric energy from a renewable energy
resource or to cofire biomass that was placed in
service before the date of enactment of this section or
the effective date of the applicable State renewable
portfolio standard program; or
``(B) the additional generation above the average
generation in the 3 years preceding the date of
enactment of this section or the effective date of the
applicable State renewable portfolio standard program,
to expand electricity production at a facility used to
generate electric energy from a renewable energy
resource or to cofire biomass that was placed in
service before the date of enactment of this section or
the effective date of the applicable State renewable
portfolio standard program.
``(10) Retail electric supplier.--The term `retail electric
supplier' means a person that sells electric energy to electric
consumers and sold not less than 1,000,000 megawatt-hours of
electric energy to electric consumers for purposes other than
resale during the preceding calendar year; except that such
term does not include the United States, a State or any
political subdivision of a State, or any agency, authority, or
instrumentality of any one or more of the foregoing, or a rural
electric cooperative.
``(11) Retail electric supplier's base amount.--The term
`retail electric supplier's base amount' means the total amount
of electric energy sold by the retail electric supplier,
expressed in terms of kilowatt hours, to electric customers for
purposes other than resale during the most recent calendar year
for which information is available, excluding electric energy
generated by a hydroelectric facility.
``(b) Minimum Renewable Generation Requirement.--For each calendar
year beginning in calendar year 2010, each retail electric supplier
shall submit to the Secretary, not later than April 1 of the following
calendar year, renewable energy credits in an amount equal to the
required annual percentage specified in subsection (c).
``(c) Required Annual Percentage.--For calendar years 2010 through
2039, the required annual percentage of the retail electric supplier's
base amount that shall be generated from renewable energy resources, or
otherwise credited towards such percentage requirement pursuant to
subsection (d), shall be the percentage specified in the following
table:
Required annual
``Calendar years: percentage:
2010................................................... 1
2011................................................... 2
2012................................................... 4
2013................................................... 6
2014................................................... 8
2015................................................... 10
2016................................................... 12
2017................................................... 14
2018................................................... 16
2019................................................... 18
2020 and thereafter.................................... 20.
``(d) Renewable Energy Credits.--(1) A retail electric supplier may
satisfy the requirements of subsection (b) through the submission of
renewable energy credits--
``(A) issued to the retail electric supplier under
subsection (e);
``(B) obtained by purchase or exchange under subsection (f)
or (h); or
``(C) borrowed under subsection (j).
``(2) A renewable energy credit may be counted toward compliance
with subsection (b) only once.
``(e) Issuance of Credits.--(1) The Secretary shall establish by
rule, not later than 1 year after the date of enactment of this
section, a program to verify and issue renewable energy credits, track
their sale, exchange and submission, and enforce the requirements of
this section.
``(2) An entity that generates electric energy through the use of a
renewable energy resource may apply to the Secretary for the issuance
of renewable energy credits. The applicant must demonstrate that the
electric energy will be transmitted onto the grid or, in the case of a
generation offset, that the electric energy offset would have otherwise
been consumed on site. The application shall indicate--
``(A) the type of renewable energy resource used to produce
the electricity;
``(B) the location where the electric energy was produced;
and
``(C) any other information the Secretary determines
appropriate.
``(3)(A) Except as provided in subparagraphs (B), (C), and (D), the
Secretary shall issue to each entity that generates electric energy one
renewable energy credit for each kilowatt hour of electric energy the
entity generates from the date of enactment of this section and in each
subsequent calendar year through the use of a renewable energy resource
at an eligible facility.
``(B) For incremental hydropower the renewable energy credits shall
be calculated based on the expected increase in average annual
generation resulting from the efficiency improvements or capacity
additions. The number of credits shall be calculated using 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. The calculation
of the renewable energy credits for incremental hydropower shall not be
based on any operational changes at the hydroelectric facility not
directly associated with the efficiency improvements or capacity
additions.
``(C) The Secretary shall issue two renewable energy credits for
each kilowatt hour of electric energy generated and supplied to the
grid in that calendar year through the use of a renewable energy
resource at an eligible facility located on Indian land. For purposes
of this paragraph, renewable energy generated by biomass cofired with
other fuels is eligible for two credits only if the biomass was grown
on such land.
``(D) For electric energy generated by a renewable energy resource
at an on-site eligible facility, used to offset part or all of the
customer's requirements for electric energy, the Secretary shall issue
three renewable energy credits to such customer for each kilowatt hour
generated.
``(E) In the case of a retail electric supplier that is subject to
a State renewable standard program that--
``(i) requires the generation of electricity from renewable
energy; or
``(ii) provides for alternative compliance payments in
satisfaction of applicable State requirements under the
program,
the Secretary shall issue an amount of renewable energy credits equal
to the amount of renewable energy credits that the Secretary would have
issued had a payment of the same amount been made to the Secretary
under subsection (j). Such renewable energy credits may be applied
against the retail electric supplier's own required annual percentage
or may be transferred for use only by an associate company of the
retail electric supplier.
``(f) Eligibility.--To be eligible for a renewable energy credit,
the unit of electric energy generated through the use of a renewable
energy resource may be sold or may be used by the generator. If both a
renewable energy resource and a non-renewable energy resource are used
to generate the electric energy, the Secretary shall issue renewable
energy credits based on the proportion of the renewable energy
resources used. The Secretary shall identify renewable energy credits
by type and date of generation.
``(g) Contracts Under Section 210.--When a generator sells electric
energy generated through the use of a renewable energy resource to a
retail electric supplier under a contract subject to section 210 of
this Act, the retail electric supplier is treated as the generator of
the electric energy for the purposes of this section or the duration of
the contract.
``(h) Existing Facility Offsets.--The Secretary shall issue
renewable energy credits for existing facility offsets to be applied
against a retail electric supplier's required annual percentage. Such
credits are not tradeable and may be used only in the calendar year
generation actually occurs.
``(i) Renewable Energy Credit Trading.--A renewable energy credit,
may be sold, transferred or exchanged by the entity to whom issued or
by any other entity who acquires the renewable energy credit, except
for those renewable energy credits issued pursuant to subsection
(e)(3)(E). A renewable energy credit for any year that is not used to
satisfy the minimum renewable generation requirement of subsection (a)
for that year may be carried forward for use within the next 4 years.
``(j) Renewable Energy Credit Borrowing.--At any time before the
end of calendar year 2012, a retail electric supplier that has reason
to believe it will not have sufficient renewable energy credits to
comply with subsection (b) may--
``(1) submit a plan to the Secretary demonstrating that the
retail electric supplier will earn sufficient credits within
the next 3 calendar years which, when taken into account, will
enable the retail electric supplier to meet the requirements of
subsection (b) for calendar year 2012 and the subsequent
calendar years involved; and
``(2) upon the approval of the plan by the Secretary, apply
renewable energy credits that the plan demonstrates will be
earned within the next 3 calendar years to meet the
requirements of subsection (b) for each calendar year involved.
The retail electric supplier must repay all of the borrowed renewable
energy credits by submitting an equivalent number of renewable energy
credits, in addition to those otherwise required under subsection (b),
by calendar year 2020 or any earlier deadlines specified in the
approved plan. Failure to repay the borrowed renewable energy credits
shall subject the retail electric supplier to civil penalties under
subsection (k) for violation of the requirements of subsection (b) for
each calendar year involved.
``(k) Enforcement.--A retail electric supplier that does not submit
renewable energy credits as required under subsection (b) shall be
liable for the payment of a civil penalty. That penalty shall be
calculated on the basis of the number of renewable energy credits not
submitted, multiplied by the lesser of 4.5 cents or 300 percent of the
average market value of credits for the compliance period. Any such
penalty shall be due and payable without demand to the Secretary as
provided in the regulations issued under subsection (e). On January 1
of each year following calendar year 2006, the Secretary shall adjust
for inflation the penalty for such calendar year, based on the Gross
Domestic Product Implicity Price Deflator.
``(l) Credit Cost Cap.--The Secretary shall offer renewable energy
credits for sale at the lesser of 3 cents per kilowatt-hour or 200
percent of the average market value of renewable credits for the
applicable compliance period. On January 1 of each year following
calendar year 2006, the Secretary shall adjust for inflation the price
charged per credit for such calendar year, based on the Gross Domestic
Product Implicit Price Deflator.
``(m) Information Collection.--The Secretary may collect the
information necessary to verify and audit--
``(1) the annual electric energy generation and renewable
energy generation of any entity applying for renewable energy
credits under this section;
``(2) the validity of renewable energy credits submitted by
a retail electric supplier to the Secretary; and
``(3) the quantity of electricity sales of all retail
electric suppliers.
``(n) Environmental Savings Clause.--Incremental hydropower shall
be subject to all applicable environmental laws and licensing and
regulatory requirements.
``(o) Existing Programs.--(1) This section does not preclude a
State from imposing additional renewable energy requirements in that
State, including specifying eligible technologies under such State
requirements.
``(2) In the rule establishing this program, the Secretary shall
incorporate common elements of existing renewable energy programs,
including State programs, to ensure administrative ease, market
transparency and effective enforcement. The Secretary shall work with
the States to minimize administrative burdens and costs and to avoid
duplicating compliance charges to retail electric suppliers.
``(p) Recovery of Costs.--An electric utility whose sales of
electric energy are subject to rate regulation, including any utility
whose rates are regulated by the Commission and any State regulated
electric utility, shall not be denied the opportunity to recover the
full amount of the prudently incurred incremental cost of renewable
energy obtained to comply with the requirements of subsection (b) for
sales to electric customers which are subject to rate regulation,
notwithstanding any other law, regulation, rule, administrative order
or any agreement between the electric utility and either the Commission
or a State regulatory authority. For the purpose of this subsection,
the term `incremental cost of renewable energy' means--
``(1) the additional cost to the electric utility for the
purchase or generation of renewable energy to satisfy the
minimum renewable generation requirement of subsection (b), as
compared to the cost of the electric energy the electric
utility would generate or purchase from another source but for
the requirements of subsection (b); and
``(2) the cost to the electric utility for acquiring by
purchase or exchange renewable energy credits to satisfy the
minimum renewable generation requirement of subsection (b).
For purposes of this subsection, the definitions in section 3 of this
Act shall apply to the terms `electric utility', `State regulated
electric utility', `State agency', `Commission', and `State regulatory
authority'.
``(q) Voluntary Participation.--The Secretary shall encourage
federally owned utilities, municipally owned utilities and rural
electric cooperatives that sell electric energy to electric consumers
for purposes other than resale to participate in the renewable
portfolio standard program. A municipally owned utility or rural
electric cooperative that owns or has under contract a facility for the
generation of electric energy from a renewable energy resource may not
sell or trade renewable energy credits generated by such resource
unless it participates in the renewable portfolio standard program
under the same terms and conditions as retail electric suppliers.
``(r) Program Review.--The Secretary shall enter into a contract
with the National Academy of Sciences to conduct a comprehensive
evaluation of all aspects of the Renewable Portfolio Standard program,
within 8 years of enactment of this section. The study shall include an
evaluation of--
``(1) the effectiveness of the program in increasing the
market penetration and lower the cost of the eligible renewable
technologies;
``(2) the opportunities for any additional technologies and
sources of renewable energy emerging since enactment of this
section;
``(3) the impact on the regional diversity and reliability
of supply sources, including the power quality benefits of
distributed generation;
``(4) the regional resource development relative to
renewable potential and reasons for any under investment in
renewable resources; and
``(5) the net cost/benefit of the renewable portfolio
standard to the national and State economies, including retail
power costs, economic development benefits of investment,
avoided costs related to environmental and congestion
mitigation investments that would otherwise have been required,
impact on natural gas demand and price, effectiveness of green
marketing programs at reducing the cost of renewable resources.
The Secretary shall transmit the results of the evaluation and any
recommendations for modifications and improvements to the program to
Congress not later than January 1, 2016.
``(s) Program Improvements.--Using the results of the evaluation
under subsection (p), the Secretary shall by rule, within 6 months of
the completion of the evaluation, make such modifications to the
program as may be necessary to improve the efficiency of the program
and maximize the use of renewable energy under the program.
``(t) State Renewable Energy Account Program.--(1) The Secretary
shall establish, not later than December 31, 2009, a State renewable
energy account program.
``(2) All money collected by the Secretary from the sale of
renewable energy credits shall be deposited into the State renewable
energy account established pursuant to this subsection. The State
renewable energy account shall be held by the Secretary and shall not
be transferred to the Secretary of the Treasury.
``(3) Proceeds deposited in the State renewable energy account
shall be used by the Secretary, subject to annual appropriations, for a
program to provide grants to the State agency responsible for
developing State energy conservation plans under section 363 of the
Energy Policy and Conservation Act (42 U.S.C. 6322) for the purposes of
promoting renewable energy production and providing energy assistance
and weatherization services to low-income consumers.
``(4) The Secretary may issue guidelines and criteria for grants
awarded under this subsection. At least 75 percent of the funds
provided to each State shall be used for promoting renewable energy
production. The funds shall be allocated to the States on the basis of
retail electric sales subject to the Renewable Portfolio Standard under
this section or through voluntary participation. To the extent Federal
credits have been issued without payment due to reciprocity with State
programs under subsection (d)(3)(E), deductions shall be made from the
relevant State's allocation. State energy offices receiving grants
under this section shall maintain such records and evidence of
compliance as the Secretary may require.''.
(b) Table of Contents.--The table of contents for such title is
amended by adding the following new item at the end:
``Sec. 610. Federal renewable portfolio standard.''.
(c) Sunset.--Section 610 of such title and the item relating to
such section 610 in the table of contents for such title are each
repealed as of December 31, 2039.
TITLE IV--APOLLO PROJECT FOR CONVERSION OF MOTOR VEHICLES TO
ALTERNATIVE FUELS
SEC. 401. SENSE OF SENATE ON CONVERSION OF MOTOR VEHICLES TO
ALTERNATIVE FUELS AND ENERGY INDEPENDENCE.
It is the sense of the Senate that--
(1) not later than 20 years after the date of enactment of
this Act, not less than 85 percent of new motor vehicles sold
in the United States should run primarily on fuels other than
petroleum-based fuels; and
(2) not later than calendar year 2030, the United States
should be energy independent.
SEC. 402. CONSUMER TAX CREDITS FOR ADVANCED VEHICLES.
(a) Plug-In Electric Drive Motor Vehicle Credit.--
(1) In general.--Subpart B of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
other credits) is amended by adding at the end the following
new section:
``SEC. 30D. PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an
amount equal to the applicable amount with respect to each new
qualified plug-in electric drive motor vehicle placed in
service by the taxpayer during the taxable year.
``(2) Applicable amount.--For purposes of paragraph (1),
the applicable amount is sum of--
``(A) $2,500, plus
``(B) $400 for each kilowatt hour of traction
battery capacity in excess of 4 kilowatt hours.
``(b) Limitation.--The amount of the credit allowed under
subsection (a) by reason of subsection (a)(2) shall not exceed $7,500.
``(c) New Qualified Plug-In Electric Drive Motor Vehicle.--For
purposes of this section, the term `new qualified plug-in electric
drive motor vehicle' means motor vehicle--
``(1) which draws propulsion using a traction battery with
at least 4 kilowatt hours of capacity,
``(2) which uses an offboard source of energy to recharge
such battery,
``(3) which, in the case of a passenger vehicle or light
truck which has a gross vehicle weight rating of not more than
8,500 pounds, has received a certificate of conformity under
the Clean Air Act and meets or exceeds the equivalent
qualifying California low emission vehicle standard under
section 243(e)(2) of the Clean Air Act for that make and model
year in the case of a vehicle--
``(A) having a gross vehicle weight rating of 6,000
pounds or less, the Bin 5 Tier II emission standard
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, and
``(B) having a gross vehicle weight rating of more
than 6,000 pounds but not more than 8,500 pounds, the
Bin 8 Tier II emission standard which is so
established,
``(4) the original use of which commences with the
taxpayer,
``(5) which is acquired for use or lease by the taxpayer
and not for resale, and
``(6) which is made by a manufacturer.
``(d) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) that is attributable to property of a
character subject to an allowance for depreciation shall be
treated as a credit listed in section 38(b) for such taxable
year (and not allowed under subsection (a)).
``(2) Personal credit.--The credit allowed under subsection
(a) (after the application of paragraph (1)) for any taxable
year shall not exceed the excess (if any) of--
``(A) the regular tax liability (as defined in
section 26(b)) reduced by the sum of the credits
allowable under subpart A and sections 27, 30, 30B, and
30C, over
``(B) the tentative minimum tax for the taxable
year.
``(e) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Motor vehicle.--The term `motor vehicle' has the
meaning given such term by section 30(c)(2).
``(2) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meanings given such
terms 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.
7521et seq.).
``(3) Traction battery capacity.--Traction battery capacity
shall be measured in kilowatt hours from a 100 percent state of
charge to a zero percent state of charge.
``(4) Reduction in basis.--For purposes of this subtitle,
the basis of any property for which a credit is allowable under
subsection (a) shall be reduced by the amount of such credit so
allowed.
``(5) No double benefit.--The amount of any deduction or
other credit allowable under this chapter for a new qualified
plug-in electric drive motor vehicle shall be reduced by the
amount of credit allowed under subsection (a) for such vehicle
for the taxable year.
``(6) Property used by tax-exempt entity.--In the case of a
vehicle the use of which is described in paragraph (3) or (4)
of section 50(b) and which is not subject to a lease, the
person who sold such vehicle to the person or entity using such
vehicle shall be treated as the taxpayer that placed such
vehicle in service, but only if such person clearly discloses
to such person or entity in a document the amount of any credit
allowable under subsection (a) with respect to such vehicle
(determined without regard to subsection (b)(2)).
``(7) Property used outside united states, etc., not
qualified.--No credit shall be allowable under subsection (a)
with respect to any property referred to in section 50(b)(1) or
with respect to the portion of the cost of any property taken
into account under section 179.
``(8) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such credit (including recapture in
the case of a lease period of less than the economic life of a
vehicle).
``(9) Election to not take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects not to have this section apply to such vehicle.
``(10) Interaction with air quality and motor vehicle
safety standards.--Unless otherwise provided in this section, a
motor vehicle shall not be considered eligible for a credit
under this section unless such vehicle is in compliance with--
``(A) the applicable provisions of the Clean Air
Act for the applicable make and model year of the
vehicle (or applicable air quality provisions of State
law in the case of a State which has adopted such
provision under a waiver under section 209(b) of the
Clean Air Act), and
``(B) the motor vehicle safety provisions of
sections 30101 through 30169 of title 49, United States
Code.
``(f) Regulations.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall promulgate such regulations as necessary to
carry out the provisions of this section.
``(2) Coordination in prescription of certain
regulations.--The Secretary of the Treasury, in coordination
with the Secretary of Transportation and the Administrator of
the Environmental Protection Agency, shall prescribe such
regulations as necessary to determine whether a motor vehicle
meets the requirements to be eligible for a credit under this
section.
``(g) Termination.--This section shall not apply to property
purchased after December 31, 2012.''.
(2) Coordination with other motor vehicle credits.--
(A) New qualified fuel cell motor vehicles.--
Paragraph (3) of section 30B(b) of such Code is amended
by adding at the end the following new flush sentence:
``Such term shall not include any motor vehicle which
is a new qualified plug-in electric drive motor vehicle
(as defined by section 30D(c)).''.
(B) New qualified hybrid motor vehicles.--Paragraph
(3) of section 30B(d) of such Code is amended by adding
at the end the following new flush sentence:
``Such term shall not include any motor vehicle which is a new
qualified plug-in electric drive motor vehicle (as defined by section
30D(c)).''.
(3) Conforming amendments.--
(A) Section 38(b) of such Code is amended by
striking ``plus'' at the end of paragraph (32), by
striking the period at the end of paragraph (33) and
inserting ``, plus'', and by adding at the end the
following new paragraph:
``(34) the portion of the new qualified plug-in electric
drive motor vehicle credit to which section 30D(d)(1)
applies.''.
(B) Section 55(c)(3) of such Code is amended by
inserting ``30D(d)(2),'' after ``30C(d)(2),''.
(C) Section 1016(a) of such Code is amended by
striking ``and'' at the end of paragraph (35), by
striking the period at the end of paragraph (36) and
inserting ``, and'', and by adding at the end the
following new paragraph:
``(37) to the extent provided in section 30D(e)(4).''.
(D) Section 6501(m) of such Code is amended by
inserting ``30D(e)(9)'' after ``30C(e)(5)''.
(E) The table of sections for subpart B of part IV
of subchapter A of chapter 1 is amended by adding at
the end the following new item:
``Sec. 30D. Plug-in electric drive motor vehicle credit.''.
(b) Conversion Kits.--
(1) In general.--Section 30B of such Code (relating to
alternative motor vehicle credit) 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) Plug-In Conversion Credit.--
``(1) In general.--For purposes of subsection (a), the
plug-in conversion credit determined under this subsection with
respect to any motor vehicle which is converted to a qualified
plug-in electric drive motor vehicle is an amount equal to 20
percent of the cost of the plug-in traction battery module
installed in such vehicle as part of such conversion.
``(2) Limitations.--The amount of the credit allowed under
this subsection shall not exceed $2,500 with respect to the
conversion of any motor vehicle.
``(3) Definitions and special rules.--For purposes of this
subsection--
``(A) Qualified plug-in electric drive motor
vehicle.--The term `qualified plug-in electric drive
motor vehicle' means any new qualified plug-in electric
drive motor vehicle (as defined in section 30D(c),
determined without regard to paragraphs (4) and (6)
thereof).
``(B) Plug-in traction battery module.--The term
`plug-in traction battery module' means an electro-
chemical energy storage device which--
``(i) has a traction battery capacity of
not less than 2.5 kilowatt hours,
``(ii) is equipped with an electrical plug
by means of which it can be energized and
recharged when plugged into an external source
of electric power,
``(iii) consists of a standardized
configuration and is mass produced,
``(iv) has been tested and approved by the
National Highway Transportation Safety
Administration as compliant with applicable
motor vehicle and motor vehicle equipment
safety standards when installed by a mechanic
with standardized training in protocols
established by the battery manufacturer as part
of a nationwide distribution program, and
``(v) is certified by a battery
manufacturer as meeting the requirements of
clauses (i) through (iv).
``(C) Credit allowed to lessor of battery module.--
In the case of a plug-in traction battery module which
is leased to the taxpayer, the credit allowed under
this subsection shall be allowed to the lessor of the
plug-in traction battery module.
``(D) Credit allowed in addition to other
credits.--The credit allowed under this subsection
shall be allowed with respect to a motor vehicle
notwithstanding whether a credit has been allowed with
respect to such motor vehicle under this section (other
than this subsection) in any preceding taxable year.
``(4) Termination.--This subsection shall not apply to
conversions made after December 31, 2012.''.
(2) Credit treated as part of alternative motor vehicle
credit.--Section 30B(a) of such Code 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 plug-in conversion credit determined under
subsection (i).''.
(3) No recapture for vehicles converted to qualified plug-
in electric drive motor vehicles.--Paragraph (8) of section
30B(h) of such Code is amended by adding at the end the
following: ``, except that no benefit shall be recaptured if
such property ceases to be eligible for such credit by reason
of conversion to a qualified plug-in electric drive motor
vehicle.''
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2008, in taxable
years beginning after such date.
SEC. 403. RESEARCH AND DEVELOPMENT PROGRAM FOR ALTERNATIVE FUEL VEHICLE
TECHNOLOGIES.
(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 alternative fuel components, systems, and
vehicles using diverse 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 alternative
fuel infrastructure for fueling light-duty transportation
vehicles and other on-road and nonroad vehicles that are using
petroleum and are mobile sources of emissions, with the goals
of--
(A) enhancing the energy security of the United
States;
(B) reducing dependence on imported oil; and
(C) reducing emissions through the expansion of
alternative fuel supported mobility;
(4) to accelerate the widespread commercialization of
alternative fuel vehicle technology into all sizes and
applications of vehicles, including commercialization of
alternative fuel vehicles; and
(5) to improve the energy efficiency of and reduce the
petroleum use in surface transportation.
(b) Program.--The Secretary of Energy shall conduct a program of
research, development, demonstration, and commercial application for
alternative fuel transportation technology, including--
(1) high capacity, high-efficiency storage devices;
(2) high-efficiency on-board and off-board alternative fuel
components;
(3) high-powered alternative fuel systems for passenger and
commercial vehicles and for nonroad equipment;
(4) control system development and power train development
and integration for alternative fuel 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 an alternative fuel system; and
(C) development of different control systems that
optimize for different goals, including--
(i) storage life;
(ii) reduction of petroleum consumption;
and
(iii) green house gas reduction;
(5) nanomaterial technology applied to both alternative
fuel systems;
(6) large-scale demonstrations, testing, and evaluation of
alternative fuel vehicles in different applications with
different storage 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) development, in consultation with the Administrator of
the Environmental Protection Agency, 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--
(A) the vehicle and fuel as a system, not just an
engine; and
(B) nightly off-board charging; and
(8) advancement of alternative fuel transportation
technologies in mobile source applications by--
(A) improvement in alternative fuel technologies;
and
(B) working with industry and the Administrator of
the Environmental Protection Agency to--
(i) understand and inventory markets; and
(ii) identify and implement methods of
removing barriers for existing and emerging
applications.
(c) Funding.--
(1) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary of Energy to carry out this section,
to remain available until expended--
(A) on October 1, 2008, and each October 1
thereafter through October 1, 2012, $1,000,000,000; and
(B) on October 1, 2013, and each October 1
thereafter through October 1, 2017, $500,000,000.
(2) Receipt and acceptance.--The Secretary of Energy shall
be entitled to receive, shall accept, and shall use to carry
out this section the funds transferred under paragraph (1),
without further appropriation.
SEC. 404. FEDERAL FLEET REQUIREMENTS.
(a) Definition of Advanced Alternative Fueled Vehicle.--Section 301
of the Energy Policy Act of 1992 (42 U.S.C. 13211) is amended by
inserting after paragraph (14) the following:
``(15) Advanced alternative fueled vehicle.--
``(A) In general.--The term `advanced alternative
fueled vehicle' means an alternative fueled vehicle
that is powered primarily by a nonpetroleum-based fuel.
``(B) Exclusion.--The term `advanced alternative
fueled vehicle' does not include a flex fuel
vehicle.''.
(b) Advanced Alternative Fuel Vehicles.--Section 303(b) of the
Energy Policy Act of 1992 (42 U.S.C. 13212(b)) is amended--
(1) by inserting after paragraph (3) the following:
``(4) Advanced Alternative Fuel Vehicles.--Of all vehicles
purchased by the Federal Government for a model year, at least the
following percentage of the vehicles shall be advanced alternative
fueled vehicles:
``(A) 10 percent for each of fiscal years 2013 and 2014.
``(B) 20 percent for each of fiscal years 2015 and 2016.
``(C) 30 percent for each of fiscal years 2017 and 2018.
``(D) 40 percent for each of fiscal years 2019 and 2020.
``(E) 50 percent for each of fiscal years 2021 and 2022.
``(F) 60 percent for each of fiscal years 2023 and 2024.
``(G) 70 percent for each of fiscal years 2025 and 2026.
``(H) 80 percent for each of fiscal years 2027 and 2028.
``(I) 90 percent for fiscal year 2029 and each fiscal year
thereafter.''; and
(2) in paragraph (2), by inserting ``or (4)'' after
``paragraph (1)''.
TITLE V--ENHANCED CONSERVATION AND EFFICIENCY
Subtitle A--Enhancing Efficiency of Conventional Vehicles
PART I--FUEL ECONOMY STANDARDS
SEC. 501. INCREASE CORPORATE FUEL ECONOMY STANDARDS.
Section 32902 of title 49, United States Code, is amended by
striking ``for model year 2020 of at least 35 miles per gallon'' and
inserting ``for model year 2015 of at least 35 miles per gallon and for
model year 2030 of at least 50 miles per gallon''.
SEC. 502. MORE REALISTIC DETERMINATION OF FUEL EFFICIENCY STANDARDS.
Section 32902 of title 49, United States Code, is amended by adding
at the end the following:
``(l) Calculation of Maximum Feasible Fuel Economy Standards.--
``(1) In general.--The Secretary shall determine the
maximum feasible fuel economy level achievable for passenger
automobiles and non-passenger automobiles for each model year
for purposes of this section based on a projected gasoline
price that is not less than the applicable high gasoline price
projection issued by the Energy Information Administration.
``(2) Applicable high gasoline price projection defined.--
In this subsection the term `applicable high gasoline price
projection' means the greatest of a range of estimated gasoline
prices that the Energy Information Administration issues as
part of its annual energy outlook, short-term energy outlook,
or similar analyses, for the year or years corresponding to the
model year or model years for which the Secretary is
prescribing an average fuel economy standard under this
section, and for the range of years considered by the Secretary
in determining the costs and benefits associated with such
standard.''.
SEC. 503. FUEL EFFICIENCY STANDARDS REVISIONS.
(a) Weight.--Section 32901(a)(3) of title 49, United States Code,
is amended by striking ``rated at--'' and all that follows through the
period at the end and inserting ``rated at not more than 10,000 pounds
gross vehicle weight.''.
(b) Fuel Economy Information.--Section 32908(a) of title 49, United
States Code, is amended, by striking 8,500 and inserting ``10,000''.
(c) Effective Date.--The amendments made by this section shall
apply to model year 2009 and each subsequent model year.
SEC. 504. AUTOMOBILE SAFETY.
Nothing in this Act shall be construed to limit, constrain,
supercede, or expand the authority of the Secretary of Transportation
to prescribe motor vehicle safety standards to reduce traffic accidents
and deaths and injuries resulting from traffic accidents conferred by
chapter 301 of title 49, United States Code.
PART II--OTHER PROVISIONS
SEC. 511. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.
(a) In General.--As soon as practicable after the date of enactment
of this Act, the Secretary shall establish a research and development
program on lightweight materials and composites and other innovations
to increase the fuel efficiency of motor vehicles, including materials,
composites, and innovation that will permit--
(1) the weight of vehicles to be reduced to improve fuel
efficiency without compromising passenger safety; and
(2) the cost of lightweight materials (such as 18 steel
alloys and carbon fibers) required for the construction of
lighter-weight vehicles to be reduced.
(b) Funding.--
(1) In general.--On October 1, 2008, and on each October 1
thereafter through October 1, 2017, out of any funds in the
Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary to carry out this
subsection $500,000,000, to remain available until expended.
(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this subsection the funds transferred under paragraph (1),
without further appropriation.
SEC. 512. FEDERAL GOVERNMENT GASOLINE CONSUMPTION.
(a) In General.--Section 303(b) of the Energy Policy Act of 1992
(42 U.S.C. 13212(b)) is amended by adding at the end the following:
``(5) Gasoline consumption.--The Secretary shall promulgate
regulations for Federal fleets subject to this title requiring
that, not later than fiscal year 2010, each Federal agency
achieve at least a 5-percent reduction in petroleum
consumption, as calculated from the baseline established by the
Secretary for fiscal year 2008.''.
(b) Additional Gasoline Reduction Measures.--
(1) Study.--The Comptroller General of the United States
shall conduct a study to determine whether additional gasoline
reduction measures by Federal departments, agencies, and
Congress are technically feasible.
(2) Report.--Not later than 180 days after the date of
enactment of this Act, the Comptroller General shall submit to
Congress a report that describes the results of the study,
including any recommendations.
SEC. 513. CREDIT FOR FUEL-EFFICIENT MOTOR VEHICLES.
(a) In General.--Subpart B 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 new section:
``SEC. 30E. FUEL-EFFICIENT MOTOR VEHICLE CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an
amount equal to the amount determined under paragraph (2) with
respect to any new fuel-efficient motor vehicle placed in
service by the taxpayer during the taxable year.
``(2) Credit amount.--The amount determined under this
paragraph shall be--
``(A) $500, if the new fuel-efficient motor vehicle
achieves a city fuel economy which is 42 miles per
gallon or less;
``(B) $1,000, if the new fuel-efficient motor
vehicle achieves a city fuel economy which is greater
than 42 miles per gallon but less than 45.6 miles per
gallon;
``(C) $1,500, if the new fuel-efficient motor
vehicle achieves a city fuel economy which is greater
than 45.5 miles per gallon but less than 49.1 miles per
gallon;
``(D) $2,000, if the new fuel-efficient motor
vehicle achieves a city fuel economy which is greater
than 49 miles per gallon but less than 52.6 miles per
gallon; and
``(E) $2,500, if the new fuel-efficient motor
vehicle achieves a city fuel economy which is greater
than 52.5 miles per gallon.
``(b) New Fuel-Efficient Motor Vehicle.--For purposes of this
section, the term `new fuel-efficient motor vehicle' means any motor
vehicle--
``(1) which has a gross vehicle weight rating of not more
than 8,500 pounds,
``(2) which achieves a city fuel economy of at least 38.5
miles per gallon,
``(3) the original use of which commences with the
taxpayer,
``(4) which is acquired by the taxpayer for use or lease,
but not for resale, and
``(5) which is made by a manufacturer.
``(c) Other Definitions and Special Rules.--For purposes of this
section--
``(1) City fuel economy; manufacturer.--The terms `city
fuel economy' and `manufacturer' have the meanings given such
terms under section 30B(h).
``(2) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced by
the amount of such credit.
``(3) Recapture; property used outside the united states;
election not to take credit.--For purposes of this section,
rules similar to the rules of paragraphs (2), (3), and (4) of
section 30(d) shall apply.
``(4) Denial of double benefit.--No credit shall be allowed
under this section with respect to any new fuel-efficient motor
vehicle if a credit is allowed with respect to such vehicle
under section 30, 30B, or 30D.
``(d) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) that is attributable to property of a
character subject to an allowance for depreciation shall be
treated as a credit listed in section 38(b) for such taxable
year (and not allowed under subsection (a)).
``(2) Personal credit.--The credit allowed under subsection
(a) (after the application of paragraph (1)) for any taxable
year shall not exceed the excess (if any) of--
``(A) the regular tax liability (as defined in
section 26(b)) reduced by the sum of the credits
allowable under subpart A and sections 27, 30, 30B, and
30D, over
``(B) the tentative minimum tax for the taxable
year.
``(e) Termination.--This section shall not apply to property placed
in service after December 31, 2010.''.
(b) Conforming Amendments.--
(1) 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 (33), by striking the period at the end of
paragraph (34) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(35) the portion of the new fuel-efficient motor vehicle
credit to which section 30E(d)(1) applies.''.
(2) Section 1016(a) of such Code, as amended by this Act,
is amended by striking ``and'' at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(38) to the extent provided in section 30E(c)(2).''.
(3) Section 6501(m) of such Code, as amended by this Act,
is amended by inserting ``30E(c)(3),'' after ``30D(e)(9),''.
(c) Clerical Amendment.--The table of sections for subpart B 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. 30E. Fuel-efficient motor vehicle 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.
SEC. 514. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION UNITS AND
ADVANCED INSULATION.
(a) In General.--Section 4053 of the Internal Revenue Code of 1986
(relating to exemptions) is amended by adding at the end the following
new paragraphs:
``(9) Idling reduction device.--Any device or system of
devices which--
``(A) is designed to provide to a 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 using one or
more devices affixed to a tractor, and
``(B) is determined by the Administrator of the
Environmental Protection Agency, in consultation with
the Secretary of Energy and the Secretary of
Transportation, to reduce idling of such vehicle at a
motor vehicle rest stop or other location where such
vehicles are temporarily parked or remain stationary.
``(10) Advanced insulation.--Any insulation that has an R
value of not less than R35 per inch.''.
(b) Effective Date.--The amendment made by this section shall apply
to sales or installations after the date of the enactment of this Act.
SEC. 515. 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) is amended by adding at the end the following new section:
``SEC. 45Q. 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-high way vehicle.--The
term `heavy-duty diesel-powered on-highway vehicle' means any
vehicle, machine, tractor, trailer, or semi-trailer propelled
or 21 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 stop pages 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''.
(b) Credit To Be Part of General Business Credit.--Section 38 of
such Code (relating to general business credit), as amended by this
Act, is amended by striking ``plus'' at the end of paragraph (34), by
striking the period at the end of paragraph (35) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(36) the idling reduction tax credit determined under
section 45Q(a).''.
(c) Conforming Amendments.--
(1) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 45P the following new item:
``Sec. 45Q. 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 45Q, to the extent provided in
section 45Q(d)(A).''.
(3) Section 6501(m) of such Code is amended by inserting
``45Q(e),'' after ``45C(d)(4),''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 516. 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 45Q of the
Internal Revenue Code of 1986 (as added by this Act), 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.
SEC. 517. EXTENSION AND MODIFICATION OF ALTERNATIVE MOTOR VEHICLE
CREDIT.
(a) Elimination of Manufacturer Limitation.--
(1) In general.--Section 30B of the Internal Revenue Code
of 1986, as amended by this Act, is amended--
(A) by striking subsection (f), and
(B) by redesignating subsections (g) through (k) as
subsections (f) through (j), respectively.
(2) Conforming amendments.--
(A) Paragraphs (4) and (6) of section 30B (g) of
the Internal Revenue Code of 1986 (as redesignated by
paragraph (1)) are each amended by striking
``(determined without regard to subsection (g))'' and
inserting ``determined without regard to subsection
(f))''.
(B) Section 38(b)(25) of such Code is amended by
striking ``section 30B(g)(1)'' and inserting ``section
30B(f)(1)''.
(C) Section 55(c)(3) of such Code is amended by
striking ``section 30B(g)(2)'' and inserting ``section
30B(f)(2)''.
(D) Section 1016(a)(36) of such Code is amended by
striking ``section 30B(h)(4)'' and inserting ``section
30B(g)(4)''.
(E) Section 6501(m) of such Code is amended by
striking ``section 30B(h)(9)'' and inserting ``section
30B(g)(9)''.
(b) Extension.--Subsection (j) of section 30B of the Internal
Revenue Code of 1986 (as redesignated by subsection (a)) is amended--
(1) by striking ``December 31, 2010'' in paragraphs (2) and
(4) and inserting ``December 31, 2014'', and
(2) by striking ``December 31, 2009'' in paragraph (3) and
inserting ``December 31, 2012''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of enactment of this
Act, in taxable years ending after such date.
Subtitle B--Alternative Fuels and Biofuels
PART I--GENERAL PROVISIONS
SEC. 521. BIOENERGY RESEARCH AND DEVELOPMENT.
(a) In General.--Section 931 of the Energy Policy Act of 2005 (42
U.S.C. 16231) is amended as follows:
(1) In subsection (b), by striking paragraphs (3) and (4)
and inserting the following:
``(3) $3,352,000,000 for fiscal year 2009; and
``(4) $3,463,000,000 for fiscal year 2010.''.
(2) In subsection (c), by striking paragraphs (3) and (4)
and inserting the following:
``(3) $2,898,000,000 for fiscal year 2009, of which
$150,000,000 shall be for section 932(d); and
``(4) $2,919,000,000 for fiscal year 2010, of which
$150,000,000 shall be for section 932(d).''.
(b) Pipeline Infrastructure.--Section 212 of the Clean Air Act (42
U.S.C. 7546) is amended by adding at the end the following:
``(f) Pipeline Infrastructure.--
``(1) In general.--The Administrator shall provide grants
for research into, and development and implementation of, the
manner in which pipeline infrastructure can be retrofitted to
accommodate biofuels.
``(2) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection for each of fiscal years 2009 through
2014.''.
SEC. 522. ALTERNATIVE FUELED AUTOMOBILE PRODUCTION REQUIREMENT.
Section 32905 of title 49, United States Code, as amended by
section 203 of this Act, is further amended by adding at the end the
following:
``(h) Alternative Fueled Automobiles.--Each manufacturer that
manufactures automobiles for sale or use in the United States shall
ensure that--
``(1) not less than 75 percent of such automobiles
manufactured for each of model years 2015 through 2019 are
alternative fueled automobiles; and
``(2) 100 percent of such automobiles manufactured for
model year 2020 and each subsequent model year are alternative
fueled automobiles.''.
SEC. 523. DEFINITION OF RENEWABLE BIOMASS.
Effective January 1, 2009, section 211(o)(1) of the Clean Air Act
(42 U.S.C.7545(o)(1)), as amended by section 210(c) of the Energy
Independence and Security Act of 2007 (Public Law 110-140) is amended
by striking subparagraph (I) and inserting the following:
``(I) Renewable biomass.--The term `renewable
biomass' means--
``(i) materials, pre-commercial thinnings,
or invasive species from National Forest System
land and public lands (as defined in section
103 of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1702)) that--
``(I) are byproducts of preventive
treatments that are removed--
``(aa) to reduce hazardous
fuels;
``(bb) to reduce or contain
disease or insect infestation;
or
``(cc) to restore ecosystem
health;
``(II) would not otherwise be used
for higher-value products; and
``(III) are harvested in accordance
with--
``(aa) applicable law and
land management plans; and
``(bb) the requirements
for--
``(AA) old-growth
maintenance,
restoration, and
management direction of
paragraphs (2), (3),
and (4) of subsection
(e) of section 102 of
the Healthy Forests
Restoration Act of 2003
(16 U.S.C. 6512); and
``(BB) large-tree
retention of subsection
(f) of that section; or
``(ii) any organic matter that is
avail1able on a renewable or recurring basis
from non-Federal land or land belonging to an
Indian or Indian tribe that is held in trust by
the United States or subject to a restriction
against alienation imposed by the United
States, including--
``(I) renewable plant material,
including--
``(aa) feed grains;
``(bb) other agricultural
commodities;
``(cc) other plants and
trees; and
``(dd) algae; and
``(II) waste material, including--
``(aa) crop residue;
``(bb) other vegetative
waste material (including wood
waste and wood residues);
``(cc) animal waste and by
products (including fats, oils,
greases, and manure); and
``(dd) food waste and yard
waste.''.
SEC. 524. LOAN GUARANTEES FOR RENEWABLE ENERGY PIPELINES.
Subtitle C of title II of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17051 et seq.) is amended by adding at the end the
following:
``SEC. 249. LOAN GUARANTEES FOR RENEWABLE ENERGY PIPELINES.
``(a) Definitions.--In this section:
``(1) Cost.--The term `cost' has the meaning given the term
`cost of a loan guarantee' in section 502(5)(C) of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
``(2) Eligible project.--The term eligible project means a
project described in subsection (b)(1).
``(3) Guarantee.--
``(A) In general.--The term `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 `guarantee' includes a
loan guarantee commitment (as defined in section 502 of
the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
``(4) Renewable energy pipeline.--The term `renewable
energy pipeline' means a common carrier pipeline for
transporting renewable energy.
``(b) Loan Guarantees.--
``(1) In general.--The Secretary shall make guarantees
under this section for projects that provide for--
``(A) the construction of new renewable energy
pipelines; or
``(B) the modification of pipelines to transport
renewable energy.
``(2) Eligibility.--In determining the eligibility of a
project for a guarantee under this section, the Secretary shall
consider--
``(A) the volume of renewable energy to be moved by
the renewable energy pipeline;
``(B) the size of the markets to be served by the
renewable energy pipeline;
``(C) the existence of sufficient storage to
facilitate access to the markets served by the
renewable energy pipeline;
``(D) the proximity of the renewable energy
pipeline to ethanol production facilities;
``(E) the investment of the entity carrying out the
proposed project in terminal infrastructure;
``(F) the experience of the entity carrying out the
proposed project in working with renewable energy;
``(G) the ability of the entity carrying out the
proposed project to maintain the quality of the
renewable energy through--
``(i) the terminal system of the entity;
and
``(ii) the dedicated pipeline system;
``(H) the ability of the entity carrying out the
proposed project to complete the project in a timely
manner; and
``(I) the ability of the entity carrying out the
proposed project to secure property rights of-way in
order to move the proposed project forward in a timely
manner.
``(3) Amount.--Unless otherwise provided bylaw, a guarantee
by the Secretary under this section shall not exceed an amount
equal to 90 percent of the eligible project cost of the
renewable energy pipeline that is the subject of the guarantee,
as estimated at the time at which the guarantee is issued or
subsequently modified while the eligible project is under
construction.
``(4) Terms and conditions.--Guarantees under this section
shall be provided in accordance with section 1702 of the Energy
Policy Act of 2005 (42 U.S.C. 16512), except that subsections
(b) and (c) of that section shall not apply to guarantees under
this section.
``(5) Existing funding authority.--The Secretary shall make
a guarantee under this section under an existing funding
authority.
``(6) Final rule.--Not later than 90 days after the date of
enactment of this section, the Secretary shall publish in the
Federal Register a final rule directing the Director of the
Department of Energy Loan Guarantee Program Office to initiate
the loan guarantee program under this section in accordance
with this section.
``(c) Funding.--
``(1) In general.--There are authorized to be appropriated
such sums as are necessary to provide guarantees under this
section.
``(2) Use of other appropriated funds.--To the extent that
the amounts made available under title XVII of the Energy
Policy Act of 2005 (42 U.S.C. 16511 et seq.) have not been
disbursed to programs under that title, the Secretary may use
the amounts to carry out this section.''.
PART II--TAX PROVISIONS
SEC. 530. REFERENCE.
Except as otherwise expressly provided, whenever in this part an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
SEC. 531. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC BIOMASS ALCOHOL
FUEL PLANT PROPERTY.
(a) In General.--Paragraph (3) of section 168(l) (relating to
special allowance for cellulosic biomass ethanol plant property) is
amended to read as follows:
``(3) Cellulosic biomass alcohol.--For purposes of this
subsection, the term `cellulosic biomass alcohol' means any
alcohol produced from any lignocellulosic or hemicellulosic
matter that is available on a renewable or recurring basis.''.
(b) Conforming Amendments.--
(1) Subsection (l) of section 168 is amended by striking
``cellulosic biomass ethanol'' each place it appears and
inserting ``cellulosic biomass alcohol''.
(2) The heading of section 168(l) is amended by striking
``cellulosic biomass ethanol'' and inserting ``cellulosic
biomass alcohol''.
(3) The heading of paragraph (2) of section 168(l) is
amended by striking ``Cellulosic biomass ethanol'' and
inserting ``Cellulosic biomass alcohol''.
(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. 532. CREDIT FOR PRODUCERS OF FOSSIL FREE ALCOHOL.
(a) In General.--Subsection (a) of section 40 (relating to alcohol
used as fuel) is amended by striking ``plus'' at the end of paragraph
(3), by striking the period at the end of paragraph (4) and inserting
``, plus'', and by adding at the end the following new paragraph:
``(5) the small fossil free alcohol producer credit.''.
(b) Small Fossil Free Alcohol Producer Credit.--
(1) In general.--Subsection (b) of section 40 is amended by
adding at the end the following new paragraph:
``(7) Small fossil free alcohol producer credit.--
``(A) In general.--In addition to any other credit
allowed under this section, there shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to 25 cents for each
gallon of qualified fossil free alcohol production.
``(B) Qualified fossil free alcohol production.--
For purposes of this section, the term `qualified
fossil free alcohol production' means alcohol which is
produced by an eligible small fossil free alcohol
producer at a fossil free alcohol production facility
and which during the taxable year--
``(i) is sold by the taxpayer to another
person--
``(I) for use by such other person
in the production of a qualified
alcohol mixture in such other person's
trade or business (other than casual
off-farm production);
``(II) for use by such other person
as a fuel in a trade or business; or
``(III) who sells such alcohol at
retail to another person and places
such alcohol in the fuel tank of such
other person; or
``(ii) is used or sold by the taxpayer for
any purpose described in clause (i).
``(C) Additional distillation excluded.--The
qualified fossil free alcohol production of any
taxpayer for any taxable year shall not include any
alcohol which is purchased by the taxpayer and with
respect to which such producer increases the proof of
the alcohol by additional distillation.''.
(c) Eligible Small Fossil Free Alcohol Producer.--Section 40 is
amended by adding at the end the following new subsection:
``(i) Definitions and Special Rules for Small Fossil Free Alcohol
Producer.--For purposes of this section--
``(1) In general.--The term `eligible small fossil free
alcohol producer' means a person, who at all times during the
taxable year, has a productive capacity for alcohol from all
fossil free alcohol production facilities of the taxpayer which
is not in excess of 60,000,000 gallons.
``(2) Fossil free alcohol production fa2cility.--The term
`fossil free alcohol production facility' means any facility at
which 90 percent of fuel used in the production of alcohol is
from biomass (as defined in section 45K(c)(3)).
``(3) Aggregation rule.--For purposes of the 60,000,000
gallon limitation under paragraph (1), all members of the same
controlled group of corporations (within the meaning of section
267(f)) and all persons under common control (within the
meaning of section 52(b) but determined by treating an interest
of more than 50 percent as a controlling interest) shall be
treated as 1 person.
``(4) Partnership, s corporations, and other pass-thru
entities.--In the case of a partnership, trust, S corporation,
or other pass-thru entity, the limitation contained in
paragraph (1) shall be applied at the entity level and at the
partner or similar level.
``(5) Allocation.--For purposes of this sub section, in the
case of a facility in which more than 1 person has an interest,
productive capacity shall be allocated among such persons in
such manner as the Secretary may prescribe.
``(6) Regulations.--The Secretary may prescribe such
regulations as may be necessary to prevent the credit provided
for in subsection (a)(5)25 from directly or indirectly
benefitting any person with a direct or indirect productive
capacity of more than 60,000,000 gallons of alcohol from fossil
free alcohol production facilities during the taxable year.
``(7) Allocation of small fossil free alcohol producer
credit to patrons of cooperative.--Rules similar to the rules
under subsection (g)(6) shall apply for purposes of this
subsection.''.
(d) Alcohol Not Used as a Fuel, etc.--
(1) In general.--Paragraph (3) of section 40(d) is amended
by redesignating subparagraph (E) as subparagraph (F) and by
inserting after subparagraph (D) the following new
subparagraph:
``(E) Small fossil free alcohol producer credit.--
If--
``(i) any credit is allowed under
subsection (a)(5); and
``(ii) any person does not use such fuel
for a purpose described in subsection
(b)(7)(B), then there is hereby imposed on such
person a tax equal to 25 cents for each gallon
of such alcohol.''.
(2) Conforming amendment.--Subparagraph (F) of section
40(d)(3), as redesignated by paragraph (1), is amended by
striking ``or (D)'' and inserting ``(D), or (E)''.
(e) Termination.--Paragraph (1) of section 40(e) is amended--
(1) in subparagraph (A), by inserting ``(December 31, 2012,
in the case of the credit allowed by reason of subsection
(a)(5))'' after ``December 31, 2010'', and
(2) in subparagraph (B), by inserting ``(January 1, 2013,
in the case of the credit allowed by reason of subsection
(a)(5))'' after ``January 1, 2011''.
(f) Effective Date.--The amendments made by this section shall
apply to fuel produced after the date of enactment of this Act.
SEC. 533. EXTENSION AND MODIFICATION OF CREDIT FOR BIODIESEL USED AS
FUEL.
(a) Extension.--
(1) Income tax credits for biodiesel and renewable diesel
and small agri-biodiesel producer credit.--Section 40A(g)
(relating to termination) is amended by striking ``December 31,
2008'' and inserting ``December 31, 2012''.
(2) Excise tax credit.--Section 6426(c)(6) (relating to
termination) is amended by striking ``2008'' and inserting
``2012''.
(3) Fuels not used for taxable purposes.--Section
6427(e)(5)(B) (relating to termination) is amended by striking
``2008'' and inserting ``2012''.
(b) Modification of Credit for Renewable Diesel.--
(1) Eligibility of certain aviation fuel.--Paragraph (3) of
section 40A(f) (defining renewable diesel) is amended by adding
at the end the following: ``The term `renewable diesel' also
means fuel derived from biomass which meets the requirements of
a Department of Defense specification for military jet fuel or
an American Society of Testing and Materials specification for
aviation turbine fuel.''.
(2) Co-processed renewable diesel.--Section 40A(f)
(relating to renewable diesel) is amended by adding at the end
the following new paragraph:
``(4) Special rule for co-processed renewable diesel.--In
the case of a taxpayer which produces renewable diesel through
the co-processing of biomass and petroleum at any facility,
this subsection shall not apply to so much of the renewable
diesel produced at such facility and sold or used during the
taxable year in a qualified biodiesel mixture as exceeds
60,000,000 gallons.''.
(c) Modification Relating to Definition of Agri-Biodiesel.--
Paragraph (2) of section 40A(d) (relating to agri-biodiesel) is amended
by striking ``and mustard seeds'' and inserting ``mustard seeds, and
camelina''.
(d) Effective Dates.--The amendments made by this section shall
apply to fuel sold or used after the date of the enactment of this Act.
SEC. 534. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL CREDIT.
(a) Extension.--
(1) Alternative fuel credit.--Paragraph (4) of section
6426(d) (relating to alternative fuel credit) is amended by
striking ``September 30, 2009'' and inserting ``December 31,
2012''.
(2) Alternative fuel mixture credit.--Paragraph (3) of
section 6426(e) (relating to alternative fuel mixture credit)
is amended by striking ``September 30, 2009'' and inserting
``December 31, 2012''.
(3) Payments.--Subparagraph (C) of section 6427(e)(5)
(relating to termination) is amended by striking ``September
30, 2009'' and inserting ``December 31, 2012''.
(b) Modifications.--
(1) Alternative fuel to include compressed or liquified
biomass gas.--Paragraph (2) of section 6426(d) (relating to
alternative fuel credit) is amended by striking ``and'' at the
end of subparagraph (E), by redesignating subparagraph (F) as
subparagraph (G), and by inserting after subparagraph (E) the
following new subparagraph:
``(F) compressed or liquified biomass gas, and''.
(2) Credit allowed for aviation use of fuel.--Paragraph (1)
of section 6426(d) is amended by inserting ``sold by the
taxpayer for use as a fuel in aviation,'' after ``motorboat,''.
(c) Carbon Capture Requirement for Certain Fuels.--
(1) In general.--Subsection (d) of section 6426, as amended
by subsection (a), is amended by redesignating paragraph (4) as
paragraph (5) and by inserting after paragraph (3) the
following new paragraph:
``(4) Carbon capture requirement.--The requirements of this
paragraph are met if the fuel is certified, under such
procedures as required by the Secretary, as having been
produced at a facility which separates and sequesters not less
than 75 percent of such facility's total carbon dioxide
emissions.''.
(2) Conforming amendment.--Subparagraph (E) of section
6426(d)(2) is amended by inserting ``which meets the
requirements of paragraph (4) and which is'' after ``any liquid
fuel''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel sold or
used after the date of the enactment of this Act.
(2) Carbon capture requirements.--The amendments made by
subsection (c) shall apply to fuel sold or used after December
31, 2008.
SEC. 535. EXTENSION OF SUSPENSION OF TAXABLE INCOME LIMIT ON PERCENTAGE
DEPLETION FOR OIL AND NATURAL GAS PRODUCED FROM MARGINAL
PROPERTIES.
Subparagraph (H) of section 613A(c)(6) (relating to oil and gas
produced from marginal properties) is amended by striking ``January 1,
2008'' and inserting ``January 1, 2013''.
SEC. 536. EXTENSION AND MODIFICATION OF ELECTION TO EXPENSE CERTAIN
REFINERIES.
(a) Extension.--Paragraph (1) of section 179C(c) (relating to
qualified refinery property) is amended--
(1) by striking ``January 1, 2012'' in subparagraph (B) and
inserting ``January 1, 2013'', and
(2) by striking ``January 1, 2008'' each place it appears
in subparagraph (F) and inserting ``January 1, 2010''.
(b) Inclusion of Fuel Derived From Shale and Tar Sands.--
(1) In general.--Subsection (d) of section 179C is amended
by inserting ``, or directly from shale or tar sands'' after
``(as defined in section 45K(c))''.
(2) Conforming amendment.--Paragraph (2) of section 179C(e)
is amended by inserting ``shale, tar sands, or'' before
``qualified fuels''.
(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.
SEC. 537. HYDROGEN INSTALLATION, INFRASTRUCTURE, AND FUEL COSTS.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
(relating to foreign tax credit, etc.), as amended by this Act, is
amended by adding at the end the following new section:
``SEC. 30F. HYDROGEN INSTALLATION, INFRASTRUCTURE, AND FUEL COSTS.
``(a) Allowance of Credit.--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--
``(1) the hydrogen installation and infrastructure costs
credit determined under subsection (b), and
``(2) the hydrogen fuel costs credit determined under
subsection (c).
``(b) Hydrogen Installation and Infrastructure Costs Credit.--
``(1) In general.--For purposes of subsection (a), the
hydrogen installation and infrastructure costs credit
determined under this subsection with respect to each eligible
hydrogen production and distribution facility of the taxpayer
is an amount equal to--
``(A) 30 percent of so much of the installation
costs which when added to such costs taken into account
with respect to such facility for all preceding taxable
years under this subparagraph does not exceed $200,000,
plus
``(B) 30 percent of so much of the infrastructure
costs for the taxable year as does not exceed $200,000
with respect to such facility, and which when added to
such costs taken into account with respect to such
facility for all preceding taxable years under this
subparagraph does not exceed $600,000.
Nothing in this section shall permit the same cost to be taken
into account more than once.
``(2) Eligible hydrogen production and distribution
facility.--For purposes of this subsection, the term `eligible
hydrogen production and distribution facility' means a hydrogen
production and distribution facility which is placed in service
after December 31, 2008.
``(c) Hydrogen Fuel Costs Credit.--
``(1) In general.--For purposes of subsection (a), the
hydrogen fuel costs credit determined under this subsection
with respect to each eligible hydrogen device of the taxpayer
is an amount equal to the qualified hydrogen expenditure
amounts with respect to such device.
``(2) Qualified hydrogen expenditure amount.--For purposes
of this subsection--
``(A) In general.--The term `qualified hydrogen
expenditure amount' means, with respect to each
eligible hydrogen energy conversion device of the
taxpayer with a production capacity of not more than 25
kilowatts of electricity per year, the lesser of--
``(i) 30 percent of the amount paid or
incurred by the taxpayer during the taxable
year for hydrogen which is consumed by such
device, and
``(ii) $2,000.
In the case of any device which is not owned by the
taxpayer at all times during the taxable year, the
$2,000 amount in subparagraph (B) shall be reduced by
an amount which bears the same ratio to $2,000 as the
portion of the year which such device is not owned by
the taxpayer bears to the entire year.
``(B) Higher limitation for devices with more
production capacity.--In the case of any eligible
hydrogen energy conversion device with a production
capacity of--
``(i) more than 25 but less than 100
kilowatts of electricity per year, subparagraph
(A) shall be applied by substituting `$4,000'
for `$2,000' each place it appears; and
``(ii) not less than 100 kilowatts of
electricity per year, subparagraph (A) shall be
applied by substituting `$6,000' for `$2,000'
each place it appears.
``(3) Eligible hydrogen energy conversion devices.--For
purposes of this subsection--
``(A) In general.--The term `eligible hydrogen
energy conversion device' means, with respect to any
taxpayer, any hydrogen energy conversion device which--
``(i) is placed in service after December
31, 2004; and
``(ii) is wholly owned by the taxpayer
during the taxable year.
If an owner of a device (determined without regard to
this subparagraph) provides to the primary user of such
device a written statement that such user shall be
treated as the owner of such device for purposes of
this section, then such user (and not such owner) shall
be so treated.
``(B) Hydrogen energy conversion device.--The term
`hydrogen energy conversion device' means--
``(i) any electrochemical device which
converts hydrogen into electricity; and
``(ii) any combustion engine which burns
hydrogen as a fuel.
``(d) 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.
``(e) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) that is attributable to amounts which (but
for subsection (g) would be allowed as a deduction under
section 162 shall be treated as a credit listed in section
38(b) for such taxable year (and not allowed under subsection
(a)).
``(2) Personal credit.--The credit allowed under subsection
(a) (after the application of paragraph (1)) for any taxable
year shall not exceed the excess (if any) of--
``(A) the regular tax liability (as defined in
section 26(b)) reduced by the sum of the credits
allowable under subpart A and sections 27, 30, 30B, and
30C, over
``(B) the tentative minimum tax for the taxable
year.
``(f) Denial of Double Benefit.--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.
``(g) Recapture.--The Secretary shall, by regulations, provided for
recapturing the benefit of any credit allowable under subsection (a)
with respect to any property which ceases to be property eligible for
such credit.
``(h) 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.
``(i) Regulations.--The Secretary shall prescribe such regulations
as necessary to carry out the provisions of this section.
``(j) Termination.--This section shall not apply to any costs after
December 31, 2012.''.
(b) Conforming Amendments.--
(1) Section 38(b), as amended by this Act, is amended by
striking ``plus'' at the end of paragraph (35), by striking the
period at the end of paragraph (36) and inserting ``plus'', and
by adding at the end the following new paragraph:
``(37) the portion of the hydrogen installation,
infrastructure, and fuel credit to which section 30F(e)(1)
applies.''.
(2) Section 55(c)(3), as amended by this Act, is amended by
inserting ``30F(e)(2),'' after ``30C(d)(2),''.
(3) Section 1016(a), 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 30F(d).''.
(4) Section 6501(m), as amended by this Act, is amended by
inserting ``30F(h),'' after ``30E(c)(3),''.
(5) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 30E the following new item:
``Sec. 30F. Hydrogen installation, infrastructure, and fuel costs.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 538. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.
(a) Increase in Credit Amount.--Section 30C 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) Extension of Credit.--Paragraph (2) of section 30C(g) is
amended by striking ``December 31, 2009'' and inserting ``December 31,
2012''.
(c) Inclusion of Electricity as a Clean-Burning Fuel.--Section
30C(c)(2) is amended by adding at the end the following new
subparagraph:
``(C) Electricity.''.
(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. 539. CERTAIN INCOME AND GAINS RELATING TO ALCOHOL FUELS AND
MIXTURES, BIODIESEL FUELS AND MIXTURES, AND ALTERNATIVE
FUELS AND MIXTURES TREATED AS QUALIFYING INCOME FOR
PUBLICLY TRADED PARTNERSHIPS.
(a) In General.--Subparagraph (E) of section 7704(d)(1) is amended
by inserting ``, or the transportation, storage, or marketing of any
fuel described in subsection (b), (c), (d), or (e) of section 6426, or
any alcohol fuel defined in section 6426(b)(4)(A) or any biodiesel fuel
as defined in section 40A(d)(1)'' after ``timber)''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act, in taxable years
ending after such date.
Subtitle C--Other Provisions
PART I--GENERAL PROVISIONS
SEC. 541. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANTS.
Section 544 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17154) is amended--
(1) in paragraph (13), by striking ``and'' at the end;
(2) by redesignating paragraph (14) as paragraph (15); and
(3) by inserting after paragraph (13) the following:
``(14) development, implementation, and installation of
smart grid technologies and smart grid functions (as defined in
section 1306(d)); and''.
SEC. 542. WEATHERIZATION ASSISTANCE PROGRAM FOR LOW-INCOME PERSONS.
(a) In General.--Section 422 of the Energy Conservation and
Production Act (42 U.S.C. 6872) is amended--
(1) by striking the section heading and all that follows
through ``For the purpose'' and inserting the following:
``SEC. 422 FUNDING.
``(a) Discretionary Funding.--For the purpose'';
(1) by striking ``fiscal year 2008'' and inserting ``each
of fiscal years 2008 through 2012''; and
(2) by adding at the end the following:
``(b) Mandatory Funding.--
``(1) In general.--In addition to any amounts made
available under subsection (a), on October 1, 2008, and on each
October 1 thereafter through October 1, 2011, out of any funds
in the Treasury not otherwise appropriated, the Secretary of
the Treasury shall transfer to the Secretary to carry out this
part $500,000,000, to remain available until expended.
``(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this part the funds transferred under paragraph (1), without
further appropriation.''.
(b) Conforming Amendments.--Section 415 of the Energy Conservation
and Production Act (42 U.S.C. 6865) is amended by striking ``section
422(b)'' each place it appears in subsections (d) and (e)(1)(A) and
inserting ``section 422''.
SEC. 543. RENEWABLE ENERGY WORKFORCE.
Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is
amended--
(1) in subsection (b)(1)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(D) renewable energy product and service
industries.'';
(2) by redesignating subsection (d) as subsection (e); and
(3) by inserting after subsection (c) the following:
``(d) Workforce Training.--
``(1) In general.--The Secretary of Labor, in cooperation
with the Secretary, shall promulgate regulations to implement a
program to provide grants to enhance workforce training for any
occupation in the workforce of the renewable energy products
and services industries for which a shortage is identified or
predicted in the report under subsection (b)(2).
``(2) Consultation.--In carrying out this subsection, the
Secretary of Labor shall consult with representatives of the
renewable energy industry and renewable energy products and
services industries, including organized labor organizations
and other stakeholders.
``(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary of Labor,
working in coordination with the Secretary and the Secretary of
Education, $20,000,000 for each of fiscal years 2009 through
2013 to carry out this subsection.''.
PART II--TAX PROVISIONS
SEC. 550. REFERENCE.
Except as otherwise expressly provided, whenever in this part an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
Subpart A--Renewable Energy Incentives
SEC. 551. RENEWABLE ENERGY CREDIT.
(a) Extension of Credit.--
(1) 4-year extension for wind facilities.--Paragraph (1) of
section 45(d) is amended by striking ``January 1, 2009'' and
inserting ``January 1, 2013''.
(2) 4-year extension for certain other facilities.--Each of
the following provisions of section 45(d) is amended by
striking ``January 1, 2009'' and inserting ``January 1, 2013'':
(A) Clauses (i) and (ii) of paragraph (2)(A).
(B) Clauses (i)(I) and (ii) of paragraph (3)(A).
(C) Paragraph (4).
(D) Paragraph (5).
(E) Paragraph (6).
(F) Paragraph (7).
(G) Subparagraphs (A) and (B) of paragraph (9).
(b) Modification of Credit Phaseout.--
(1) Repeal of phaseout.--Subsection (b) of section 45 is
amended--
(A) by striking paragraph (1), and
(B) by striking ``the 8 cent amount in paragraph
(1),'' in paragraph (2) thereof.
(2) Limitation based on investment in facility.--Subsection
(b) of section 45 is amended by inserting before paragraph (2)
the following new paragraph:
``(1) Limitation based on investment in facility.--
``(A) In general.--In the case of any qualified
facility originally placed in service after December
31, 2009, the amount of the credit determined under
subsection (a) for any taxable year with respect to
electricity produced at such facility shall not exceed
the product of--
``(i) the applicable percentage with
respect to such facility, multiplied by
``(ii) the eligible basis of such facility.
``(B) Carryforward of unused limitation and excess
credit.--
``(i) Unused limitation.--If the limitation
imposed under subparagraph (A) with respect to
any facility for any taxable year exceeds the
prelimitation credit for such facility for such
taxable year, the limitation imposed under
subparagraph (A) with respect to such facility
for the succeeding taxable year shall be
increased by the amount of such excess.
``(ii) Excess credit.--If the prelimitation
credit with respect to any facility for any
taxable year exceeds the limitation imposed
under subparagraph (A) with respect to such
facility for such taxable year, the credit
determined under subsection (a) with respect to
such facility for the succeeding taxable year
(determined before the application of
subparagraph (A) for such succeeding taxable
year) shall be increased by the amount of such
excess. With respect to any facility, no amount
may be carried forward under this clause to any
taxable year beginning after the 10-year period
described in subsection (a)(2)(A)(ii) with
respect to such facility.
``(iii) Prelimitation credit.--The term
`prelimitation credit' with respect to any
facility for a taxable year means the credit
determined under subsection (a) with respect to
such facility for such taxable year, determined
without regard to subparagraph (A) and after
taking into account any increase for such
taxable year under clause (ii).
``(C) Applicable percentage.--For purposes of this
paragraph--
``(i) In general.--The term `applicable
percentage' means, with respect to any
facility, the appropriate percentage prescribed
by the Secretary for the month in which such
facility is originally placed in service.
``(ii) Method of prescribing applicable
percentages.--The applicable percentages
prescribed by the Secretary for any month under
clause (i) shall be percentages which yield
over a 10-year period amounts of limitation
under subparagraph (A) which have a present
value equal to 35 percent of the eligible basis
of the facility.
``(iii) Method of discounting.--The present
value under clause (ii) shall be determined--
``(I) as of the last day of the 1st
year of the 10-year period referred to
in clause (ii),
``(II) by using a discount rate
equal to the greater of 110 percent of
the Federal long-term rate as in effect
under section 1274(d) for the month
preceding the month for which the
applicable percentage is being
prescribed, or 4.5 percent, and
``(III) by taking into account the
limitation under subparagraph (A) for
any year on the last day of such year.
``(D) Eligible basis.--For purposes of this
paragraph--
``(i) In general.--The term `eligible
basis' means, with respect to any facility, the
sum of--
``(I) the basis of such facility
determined as of the time that such
facility is originally placed in
service, and
``(II) the portion of the basis of
any shared qualified property which is
properly allocable to such facility
under clause (ii).
``(ii) Rules for allocation.--For purposes
of subclause (II) of clause (i), the basis of
shared qualified property shall be allocated
among all qualified facilities which are
projected to be placed in service and which
require utilization of such property in
proportion to projected generation from such
facilities.
``(iii) Shared qualified property.--For
purposes of this paragraph, the term `shared
qualified property' means, with respect to any
facility, any property described in section
168(e)(3)(B)(vi)--
``(I) which a qualified facility
will require for utilization of such
facility, and
``(II) which is not a qualified
facility.
``(iv) Special rule relating to geothermal
facilities.--In the case of any qualified
facility using geothermal energy to produce
electricity, the basis of such facility for
purposes of this paragraph shall be determined
as though intangible drilling and development
costs described in section 263(c) were
capitalized rather than expensed.
``(E) Special rule for first and last year of
credit period.--In the case of any taxable year any
portion of which is not within the 10-year period
described in subsection (a)(2)(A)(ii) with respect to
any facility, the amount of the limitation under
subparagraph (A) with respect to such facility shall be
reduced by an amount which bears the same ratio to the
amount of such limitation (determined without regard to
this subparagraph) as such portion of the taxable year
which is not within such period bears to the entire
taxable year.
``(F) Election to treat all facilities placed in
service in a year as 1 facility.--At the election of
the taxpayer, all qualified facilities which are part
of the same project and which are placed in service
during the same calendar year shall be treated for
purposes of this section as 1 facility which is placed
in service at the mid-point of such year or the first
day of the following calendar year.''.
(c) Trash Facility Clarification.--Paragraph (7) of section 45(d)
is amended--
(1) by striking ``facility which burns'' and inserting
``facility (other than a facility described in paragraph (6))
which uses'', and
(2) by striking ``combustion''.
(d) Expansion of Biomass Facilities.--
(1) Open-loop biomass facilities.--Paragraph (3) of section
45(d) is amended by redesignating subparagraph (B) as
subparagraph (C) and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Expansion of facility.--Such term shall
include a new unit placed in service after the date of
the enactment of this subparagraph in connection with a
facility described in subparagraph (A), but only to the
extent of the increased amount of electricity produced
at the facility by reason of such new unit.''.
(2) Closed-loop biomass facilities.--Paragraph (2) of
section 45(d) is amended by redesignating subparagraph (B) as
subparagraph (C) and inserting after subparagraph (A) the
following new subparagraph:
``(B) Expansion of facility.--Such term shall
include a new unit placed in service after the date of
the enactment of this subparagraph in connection with a
facility described in subparagraph (A)(i), but only to
the extent of the increased amount of electricity
produced at the facility by reason of such new unit.''.
(e) Sales of Net Electricity to Regulated Public Utilities Treated
as Sales to Unrelated Persons.--Paragraph (4) of section 45(e) is
amended by adding at the end the following new sentence: ``The net
amount of electricity sold by any taxpayer to a regulated public
utility (as defined in section 7701(a)(33)) shall be treated as sold to
an unrelated person.''.
(f) Modification of Rules for Hydropower Production.--Subparagraph
(C) of section 45(c)(8) is amended to read as follows:
``(C) Nonhydroelectric dam.--For purposes of
subparagraph (A), a facility is described in this
subparagraph if--
``(i) the hydroelectric project installed
on the nonhydroelectric dam is licensed by the
Federal Energy Regulatory Commission and meets
all other applicable environmental, licensing,
and regulatory requirements,
``(ii) the nonhydroelectric dam was placed
in service before the date of the enactment of
this paragraph and operated for flood control,
navigation, or water supply purposes and did
not produce hydroelectric power on the date of
the enactment of this paragraph, and
``(iii) the hydroelectric project is
operated so that the water surface elevation at
any given location and time that would have
occurred in the absence of the hydroelectric
project is maintained, subject to any license
requirements imposed under applicable law that
change the water surface elevation for the
purpose of improving environmental quality of
the affected waterway.
The Secretary, in consultation with the Federal Energy
Regulatory Commission, shall certify if a hydroelectric
project licensed at a nonhydroelectric dam meets the
criteria in clause (iii). Nothing in this section shall
affect the standards under which the Federal Energy
Regulatory Commission issues licenses for and regulates
hydropower projects under part I of the Federal Power
Act.''.
(g) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
property originally placed in service after December 31, 2008.
(2) Repeal of credit phaseout.--The amendments made by
subsection (b)(1) shall apply to taxable years ending after
December 31, 2008.
(3) Limitation based on investment in facility.--The
amendment made by subsection (b)(2) shall apply to property
originally placed in service after December 31, 2009.
(4) Trash facility clarification; sales to related
regulated public utilities.--The amendments made by subsections
(c) and (e) shall apply to electricity produced and sold after
the date of the enactment of this Act.
(5) Expansion of biomass facilities.--The amendments made
by subsection (d) shall apply to property placed in service
after the date of the enactment of this Act.
SEC. 552. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE
RENEWABLES.
(a) In General.--Paragraph (1) of section 45(c) 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) marine and hydrokinetic renewable energy.''.
(b) Marine Renewables.--Subsection (c) of section 45 is amended by
adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and
hydrokinetic renewable energy' means energy derived
from--
``(i) waves, tides, and currents in oceans,
estuaries, and tidal areas,
``(ii) free flowing water in rivers, lakes,
and streams,
``(iii) free flowing water in an irrigation
system, canal, or other man-made channel,
including projects that utilize nonmechanical
structures to accelerate the flow of water for
electric power production purposes, or
``(iv) differentials in ocean temperature
(ocean thermal energy conversion).
``(B) Exceptions.--Such term shall not include any
energy which is derived from any source which utilizes
a dam, diversionary structure (except as provided in
subparagraph (A)(iii)), or impoundment for electric
power production purposes.''.
(c) Definition of Facility.--Subsection (d) of section 45 is
amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy
facilities.--In the case of a facility producing electricity
from marine and hydrokinetic renewable energy, the term
`qualified facility' means any facility owned by the taxpayer--
``(A) which has a nameplate capacity rating of at
least 150 kilowatts, and
``(B) which is originally placed in service on or
after the date of the enactment of this paragraph and
before January 1, 2012.''.
(d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is amended
by striking ``or (9)'' and inserting ``(9), or (11)''.
(e) Coordination With Small Irrigation Power.--Paragraph (5) of
section 45(d), as amended by section 101, is amended by striking
``January 1, 2012'' and inserting ``the date of the enactment of
paragraph (11)''.
(f) Effective Date.--The amendments made by this section shall
apply to electricity produced and sold after the date of the enactment
of this Act, in taxable years ending after such date.
SEC. 553. ENERGY CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) are each amended by striking
``January 1, 2009'' and inserting ``January 1, 2015''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2014''.
(3) Microturbine property.--Subparagraph (E) of section
48(c)(2) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2014''.
(b) Allowance of Energy Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) is amended by striking ``and'' at
the end of clause (iii), by redesignating clause (iv) as clause (v),
and by inserting after clause (iii) the following new clause:
``(iv) the credit determined under section
46 to the extent that such credit is
attributable to the energy credit determined
under section 48, and''.
(c) Energy Credit for Combined Heat and Power System Property.--
(1) In general.--Section 48(a)(3)(A) (defining energy
property) is amended 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,''.
(2) Combined heat and power system property.--Section 48 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 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),
``(C) the energy efficiency percentage of which
exceeds 60 percent, and
``(D) which is placed in service before January 1,
2015.
``(2) Limitation.--
``(A) In general.--In the case of combined heat and
power system property with an electrical capacity in
excess of the applicable capacity placed in service
during the taxable year, the credit under subsection
(a)(1) (determined without regard to this paragraph)
for such year shall be equal to the amount which bears
the same ratio to such credit as the applicable
capacity bears to the capacity of such property.
``(B) Applicable capacity.--For purposes of
subparagraph (A), the term `applicable capacity' means
15 megawatts or a mechanical energy capacity of more
than 20,000 horsepower or an equivalent combination of
electrical and mechanical energy capacities.
``(C) Maximum capacity.--The term `combined heat
and power system property' shall not include any
property comprising a system if such system has a
capacity in excess of 50 megawatts or a mechanical
energy capacity in excess of 67,000 horsepower or an
equivalent combination of electrical and mechanical
energy capacities.
``(3) 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
lower heating value of the fuel sources for the
system.
``(B) Determinations made on btu basis.--The energy
efficiency percentage and the percentages under
paragraph (1)(B) 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.
``(4) Systems using biomass.--If a system is designed to
use biomass (within the meaning of paragraphs (2) and (3) of
section 45(c) without regard to the last sentence of paragraph
(3)(A)) for at least 90 percent of the energy source--
``(A) paragraph (1)(C) 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.''.
(d) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking ``$500''
and inserting ``$1,500''.
(e) Public Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is amended
by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c) is amended by
striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).
(B) Paragraph (2) of section 48(c) is amended by
striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect on the date of the enactment of this Act.
(2) Allowance against alternative minimum tax.--The
amendments made by subsection (b) shall apply to credits
determined under section 46 of the Internal Revenue Code of
1986 in taxable years beginning after the date of the enactment
of this Act and to carrybacks of such credits.
(3) Combined heat and power and fuel cell property.--The
amendments made by subsections (c) and (d) 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).
(4) Public utility property.--The amendments made by
subsection (e) shall apply to periods after February 13, 2008,
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. 554. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) is amended by striking ``December
31, 2008'' and inserting ``December 31, 2014''.
(b) Maximum Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1)(A) is amended by
striking ``$2,000'' and inserting ``$4,000''.
(2) Conforming amendment.--Section 25D(e)(4)(A)(i) is
amended by striking ``$6,667'' and inserting ``$13,333''.
(c) Credit for Residential Wind Property.--
(1) In general.--Section 25D(a) 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) is amended by striking
``and'' at the end of subparagraph (B), by striking the period
at the end of subparagraph (C) 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 $4,000) of wind turbines for
which qualified small wind energy property expenditures
are made.''.
(3) Qualified small wind energy property expenditures.--
(A) In general.--Section 25D(d) is amended by
adding at the end the following new paragraph:
``(4) Qualified small wind energy property expenditure.--
The term `qualified small wind energy property expenditure'
means an expenditure for property which uses a 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) No double benefit.--Section 45(d)(1) is amended
by adding at the end the following new sentence: ``Such
term shall not include any facility with respect to
which any qualified small wind energy property
expenditure (as defined in subsection (d)(4) of section
25D) is taken into account in determining the credit
under such section.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A) 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) $1,667 in the case of each half
kilowatt of capacity (not to exceed $13,333) of
wind turbines for which qualified small wind
energy property expenditures are made.''.
(d) Credit for Geothermal Heat Pump Systems.--
(1) In general.--Section 25D(a), as amended by subsection
(c), 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) 30 percent of the qualified geothermal heat pump
property expenditures made by the taxpayer during such year.''.
(2) Limitation.--Section 25D(b)(1), as amended by
subsection (c), is amended by striking ``and'' at the end of
subparagraph (C), by striking the period at the end of
subparagraph (D) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(E) $2,000 with respect to any qualified
geothermal heat pump property expenditures.''.
(3) Qualified geothermal heat pump property expenditure.--
Section 25D(d), as amended by subsection (c), is amended by
adding at the end the following new paragraph:
``(5) Qualified geothermal heat pump property
expenditure.--
``(A) In general.--The term `qualified geothermal
heat pump property expenditure' means an expenditure
for qualified geothermal heat pump property installed
on or in connection with a dwelling unit located in the
United States and used as a residence by the taxpayer.
``(B) Qualified geothermal heat pump property.--The
term `qualified geothermal heat pump property' means
any equipment which--
``(i) uses the ground or ground water as a
thermal energy source to heat the dwelling unit
referred to in subparagraph (A) or as a thermal
energy sink to cool such dwelling unit, and
``(ii) meets the requirements of the Energy
Star program which are in effect at the time
that the expenditure for such equipment is
made.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A), as amended by subsection (c), 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) $6,667 in the case of any qualified
geothermal heat pump property expenditures.''.
(e) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended
to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of Unused
Credit.--
``(1) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, 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 this
subpart (other than this section) and section 27 for
the taxable year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits
allowed against regular and alternative minimum tax.--
In the case of a taxable year to which section 26(a)(2)
applies, if the credit allowable under subsection (a)
exceeds the limitation imposed by section 26(a)(2) for
such taxable year reduced by the sum of the credits
allowable under this subpart (other than this section),
such excess shall be carried to the succeeding taxable
year and added to the credit allowable under subsection
(a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a
taxable year to which section 26(a)(2) does not apply,
if the credit allowable under subsection (a) exceeds
the limitation imposed by paragraph (1) 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.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting
``and section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking
``and 25B'' and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking
``section 23'' and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and
25B'' and inserting ``25B, and 25D''.
(f) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
(2) Application of egtrra sunset.--The amendments made by
subparagraphs (A) and (B) of subsection (e)(2) shall be subject
to title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 in the same manner as the provisions
of such Act to which such amendments relate.
SEC. 555. SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC
RESTRUCTURING POLICY.
(a) Extension for Qualified Electric Utilities.--
(1) In general.--Paragraph (3) of section 451(i) is amended
by inserting ``(before January 1, 2010, in the case of a
qualified electric utility)'' after ``January 1, 2008''.
(2) Qualified electric utility.--Subsection (i) of section
451 is amended by redesignating paragraphs (6) through (10) as
paragraphs (7) through (11), respectively, and by inserting
after paragraph (5) the following new paragraph:
``(6) Qualified electric utility.--For purposes of this
subsection, the term `qualified electric utility' means a
person that, as of the date of the qualifying electric
transmission transaction, is vertically integrated, in that it
is both--
``(A) a transmitting utility (as defined in section
3(23) of the Federal Power Act (16 U.S.C. 796(23)))
with respect to the transmission facilities to which
the election under this subsection applies, and
``(B) an electric utility (as defined in section
3(22) of the Federal Power Act (16 U.S.C. 796(22))).''.
(b) Extension of Period for Transfer of Operational Control
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is amended by
striking ``December 31, 2007'' and inserting ``the date which is 4
years after the close of the taxable year in which the transaction
occurs''.
(c) Property Located Outside the United States Not Treated as
Exempt Utility Property.--Paragraph (5) of section 451(i) is amended by
adding at the end the following new subparagraph:
``(C) Exception for property located outside the
united states.--The term `exempt utility property'
shall not include any property which is located outside
the United States.''.
(d) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
apply to transactions after December 31, 2007.
(2) Transfers of operational control.--The amendment made
by subsection (b) shall take effect as if included in section
909 of the American Jobs Creation Act of 2004.
(3) Exception for property located outside the united
states.--The amendment made by subsection (c) shall apply to
transactions after the date of the enactment of this Act.
SEC. 556. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 54C. NEW CLEAN RENEWABLE ENERGY BONDS.
``(a) New Clean Renewable Energy Bond.--For purposes of this
subpart, the term `new clean renewable energy bond' means any bond
issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for capital expenditures incurred by
public power providers or cooperative electric companies for
one or more qualified renewable energy facilities,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Reduced Credit Amount.--The annual credit determined under
section 54A(b) with respect to any new clean renewable energy bond
shall be 70 percent of the amount so determined without regard to this
subsection.
``(c) Limitation on Amount of Bonds Designated.--
``(1) In general.--The maximum aggregate face amount of
bonds which may be designated under subsection (a) by any
issuer shall not exceed the limitation amount allocated under
this subsection to such issuer.
``(2) National limitation on amount of bonds designated.--
There is a national new clean renewable energy bond limitation
of $2,000,000,000 which shall be allocated by the Secretary as
provided in paragraph (3), except that--
``(A) not more than 33\1/3\ percent thereof may be
allocated to qualified projects of public power
providers,
``(B) not more than 33\1/3\ percent thereof may be
allocated to qualified projects of governmental bodies,
and
``(C) not more than 33\1/3\ percent thereof may be
allocated to qualified projects of cooperative electric
companies.
``(3) Method of allocation.--
``(A) Allocation among public power providers.--
After the Secretary determines the qualified projects
of public power providers which are appropriate for
receiving an allocation of the national new clean
renewable energy bond limitation, the Secretary shall,
to the maximum extent practicable, make allocations
among such projects in such manner that the amount
allocated to each such project bears the same ratio to
the cost of such project as the limitation under
paragraph (2)(A) bears to the cost of all such
projects.
``(B) Allocation among governmental bodies and
cooperative electric companies.--The Secretary shall
make allocations of the amount of the national new
clean renewable energy bond limitation described in
paragraphs (2)(B) and (2)(C) among qualified projects
of governmental bodies and cooperative electric
companies, respectively, in such manner as the
Secretary determines appropriate.
``(d) Definitions.--For purposes of this section--
``(1) Qualified renewable energy facility.--The term
`qualified renewable energy facility' means a qualified
facility (as determined under section 45(d) without regard to
paragraphs (8) and (10) thereof and to any placed in service
date) owned by a public power provider, a governmental body, or
a cooperative electric company.
``(2) Public power provider.--The term `public power
provider' means a State utility with a service obligation, as
such terms are defined in section 217 of the Federal Power Act
(as in effect on the date of the enactment of this paragraph).
``(3) Governmental body.--The term `governmental body'
means any State or Indian tribal government, or any political
subdivision thereof.
``(4) 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).
``(5) Clean renewable energy bond lender.--The term `clean
renewable 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.
``(6) Qualified issuer.--The term `qualified issuer' means
a public power provider, a cooperative electric company, a
governmental body, a clean renewable energy bond lender, or a
not-for-profit electric utility which has received a loan or
loan guarantee under the Rural Electrification Act.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) is amended to read as
follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a qualified forestry conservation bond, or
``(B) a new clean renewable energy bond,
which is part of an issue that meets requirements of paragraphs
(2), (3), (4), (5), and (6).''.
(2) Subparagraph (C) of section 54A(d)(2) is amended to
read as follows:
``(C) Qualified purpose.--For purposes of this
paragraph, the term `qualified purpose' means--
``(i) in the case of a qualified forestry
conservation bond, a purpose specified in
section 54B(e), and
``(ii) in the case of a new clean renewable
energy bond, a purpose specified in section
54C(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54C. New clean renewable energy bonds.''.
(c) Application of Certain Labor Standards on Projects Financed
Under Tax Credit Bonds.--Subchapter IV of chapter 31 of title 40,
United States Code, shall apply to projects financed with the proceeds
of any tax credit bond (as defined in section 54A of the Internal
Revenue Code of 1986) other than qualified forestry conservation bonds
(as defined in section 54B of such Code).
(d) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
Subpart B--Carbon Mitigation Provisions
SEC. 561. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT
INVESTMENT CREDIT.
(a) Modification of Credit Amount.--Section 48A(a) is amended by
striking ``and'' at the end of paragraph (1), by striking the period at
the end of paragraph (2) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(3) 30 percent of the qualified investment for such
taxable year in the case of projects described in clause (iii)
of subsection (d)(3)(B).''.
(b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A) is
amended by striking ``$1,300,000,000'' and inserting
``$2,550,000,000''.
(c) Authorization of Additional Projects.--
(1) In general.--Subparagraph (B) of section 48A(d)(3) 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) $1,250,000,000 for advanced coal-
based generation technology projects the
application for which is submitted during the
period described in paragraph (2)(A)(ii).''.
(2) Application period for additional projects.--
Subparagraph (A) of section 48A(d)(2) 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)(B) 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)(B)(iii)
during the 3-year period beginning at the
earlier of the termination of the period
described in clause (i) or the date prescribed
by the Secretary.''.
(3) Capture and sequestration of carbon dioxide emissions
requirement.--
(A) In general.--Section 48A(e)(1) is amended by
striking ``and'' at the end of subparagraph (E), by
striking the period at the end of subparagraph (F) and
inserting ``; and'', and by adding at the end the
following new subparagraph:
``(G) in the case of any project the application
for which is submitted during the period described in
subsection (d)(2)(A)(ii), the project includes
equipment which separates and sequesters at least 65
percent (70 percent in the case of an application for
reallocated credits under subsection (d)(4)) of such
project's total carbon dioxide emissions.''.
(B) Highest priority for projects which sequester
carbon dioxide emissions.--Section 48A(e)(3) is amended
by striking ``and'' at the end of subparagraph
(A)(iii), by striking the period at the end of
subparagraph (B)(iii) and inserting ``, and'', and by
adding at the end the following new subparagraph:
``(C) give highest priority to projects with the
greatest separation and sequestration percentage of
total carbon dioxide emissions.''.
(C) Recapture of credit for failure to sequester.--
Section 48A is amended by adding at the end the
following new subsection:
``(h) Recapture of Credit for Failure To Sequester.--The Secretary
shall provide for recapturing the benefit of any credit allowable under
subsection (a) with respect to any project which fails to attain or
maintain the separation and sequestration requirements of subsection
(e)(1)(G).''.
(4) Additional priority for research partnerships.--Section
48A(e)(3)(B), as amended by paragraph (3)(B), is amended--
(A) by striking ``and'' at the end of clause (ii),
(B) by redesignating clause (iii) as clause (iv),
and
(C) by inserting after clause (ii) the following
new clause:
``(iii) applicant participants who have a
research partnership with an eligible
educational institution (as defined in section
529(e)(5)), and''.
(5) Clerical amendment.--Section 48A(e)(3) is amended by
striking ``integrated gasification combined cycle'' in the
heading and inserting ``certain''.
(d) Competitive Certification Awards Modification Authority.--
Section 48A, as amended by subsection (c)(3), is amended by adding at
the end the following new subsection:
``(i) Competitive Certification Awards Modification Authority.--In
implementing this section or section 48B, the Secretary is directed to
modify the terms of any competitive certification award and any
associated closing agreement where such modification--
``(1) is consistent with the objectives of such section,
``(2) is requested by the recipient of the competitive
certification award, and
``(3) involves moving the project site to improve the
potential to capture and sequester carbon dioxide emissions,
reduce costs of transporting feedstock, and serve a broader
customer base,
unless the Secretary determines that the dollar amount of tax credits
available to the taxpayer under such section would increase as a result
of the modification or such modification would result in such project
not being originally certified. In considering any such modification,
the Secretary shall consult with other relevant Federal agencies,
including the Department of Energy.''.
(e) Disclosure of Allocations.--Section 48A(d) is amended by adding
at the end the following new paragraph:
``(5) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection or section 48B(d),
publicly disclose the identity of the applicant and the amount
of the credit certified with respect to such applicant.''.
(f) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
credits the application for which is submitted during the
period described in section 48A(d)(2)(A)(ii) of the Internal
Revenue Code of 1986 and which are allocated or reallocated
after the date of the enactment of this Act.
(2) Competitive certification awards modification
authority.--The amendment made by subsection (d) shall take
effect on the date of the enactment of this Act and is
applicable to all competitive certification awards entered into
under section 48A or 48B of the Internal Revenue Code of 1986,
whether such awards were issued before, on, or after such date
of enactment.
(3) Disclosure of allocations.--The amendment made by
subsection (e) shall apply to certifications made after the
date of the enactment of this Act.
(4) Clerical amendment.--The amendment made by subsection
(c)(5) shall take effect as if included in the amendment made
by section 1307(b) of the Energy Tax Incentives Act of 2005.
SEC. 562. EXPANSION AND MODIFICATION OF COAL GASIFICATION INVESTMENT
CREDIT.
(a) Modification of Credit Amount.--Section 48B(a) is amended by
inserting ``(30 percent in the case of credits allocated under
subsection (d)(1)(B))'' after ``20 percent''.
(b) Expansion of Aggregate Credits.--Section 48B(d)(1) is amended
by striking ``shall not exceed $350,000,000'' and all that follows and
inserting ``shall not exceed--
``(A) $350,000,000, plus
``(B) $250,000,000 for qualifying gasification
projects that include equipment which separates and
sequesters at least 75 percent of such project's total
carbon dioxide emissions.''.
(c) Recapture of Credit for Failure To Sequester.--Section 48B is
amended by adding at the end the following new subsection:
``(f) Recapture of Credit for Failure To Sequester.--The Secretary
shall provide for recapturing the benefit of any credit allowable under
subsection (a) with respect to any project which fails to attain or
maintain the separation and sequestration requirements for such project
under subsection (d)(1).''.
(d) Selection Priorities.--Section 48B(d) is amended by adding at
the end the following new paragraph:
``(4) Selection priorities.--In determining which
qualifying gasification projects to certify under this section,
the Secretary shall--
``(A) give highest priority to projects with the
greatest separation and sequestration percentage of
total carbon dioxide emissions, and
``(B) give high priority to applicant participants
who have a research partnership with an eligible
educational institution (as defined in section
529(e)(5)).''.
(e) Effective Date.--The amendments made by this section shall
apply to credits described in section 48B(d)(1)(B) of the Internal
Revenue Code of 1986 which are allocated or reallocated after the date
of the enactment of this Act.
SEC. 563. TEMPORARY INCREASE IN COAL EXCISE TAX.
Paragraph (2) of section 4121(e) is amended--
(1) by striking ``January 1, 2014'' in subparagraph (A) and
inserting ``December 31, 2018'', and
(2) by striking ``January 1 after 1981'' in subparagraph
(B) and inserting ``December 31 after 2007''.
SEC. 564. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO CERTAIN
COAL PRODUCERS AND EXPORTERS.
(a) Refund.--
(1) Coal producers.--
(A) In general.--Notwithstanding subsections (a)(1)
and (c) of section 6416 and section 6511 of the
Internal Revenue Code of 1986, if--
(i) a coal producer establishes that such
coal producer, or a party related to such coal
producer, exported coal produced by such coal
producer to a foreign country or shipped coal
produced by such coal producer to a possession
of the United States, or caused such coal to be
exported or shipped, the export or shipment of
which was other than through an exporter who
meets the requirements of paragraph (2),
(ii) such coal producer filed an excise tax
return on or after October 1, 1990, and on or
before the date of the enactment of this Act,
and
(iii) such coal producer files a claim for
refund with the Secretary not later than the
close of the 30-day period beginning on the
date of the enactment of this Act,
then the Secretary shall pay to such coal producer an
amount equal to the tax paid under section 4121 of such
Code on such coal exported or shipped by the coal
producer or a party related to such coal producer, or
caused by the coal producer or a party related to such
coal producer to be exported or shipped.
(B) Special rules for certain taxpayers.--For
purposes of this section--
(i) In general.--If a coal producer or a
party related to a coal producer has received a
judgment described in clause (iii), such coal
producer shall be deemed to have established
the export of coal to a foreign country or
shipment of coal to a possession of the United
States under subparagraph (A)(i).
(ii) Amount of payment.--If a taxpayer
described in clause (i) is entitled to a
payment under subparagraph (A), the amount of
such payment shall be reduced by any amount
paid pursuant to the judgment described in
clause (iii).
(iii) Judgment described.--A judgment is
described in this subparagraph if such
judgment--
(I) is made by a court of competent
jurisdiction within the United States,
(II) relates to the
constitutionality of any tax paid on
exported coal under section 4121 of the
Internal Revenue Code of 1986, and
(III) is in favor of the coal
producer or the party related to the
coal producer.
(2) Exporters.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, and a judgment described in paragraph (1)(B)(iii) of
this subsection, if--
(A) an exporter establishes that such exporter
exported coal to a foreign country or shipped coal to a
possession of the United States, or caused such coal to
be so exported or shipped,
(B) such exporter filed a tax return on or after
October 1, 1990, and on or before the date of the
enactment of this Act, and
(C) such exporter files a claim for refund with the
Secretary not later than the close of the 30-day period
beginning on the date of the enactment of this Act,
then the Secretary shall pay to such exporter an amount equal
to $0.825 per ton of such coal exported by the exporter or
caused to be exported or shipped, or caused to be exported or
shipped, by the exporter.
(b) Limitations.--Subsection (a) shall not apply with respect to
exported coal if a settlement with the Federal Government has been made
with and accepted by, the coal producer, a party related to such coal
producer, or the exporter, of such coal, as of the date that the claim
is filed under this section with respect to such exported coal. For
purposes of this subsection, the term ``settlement with the Federal
Government'' shall not include any settlement or stipulation entered
into as of the date of the enactment of this Act, the terms of which
contemplate a judgment concerning which any party has reserved the
right to file an appeal, or has filed an appeal.
(c) Subsequent Refund Prohibited.--No refund shall be made under
this section to the extent that a credit or refund of such tax on such
exported or shipped coal has been paid to any person.
(d) Definitions.--For purposes of this section--
(1) Coal producer.--The term ``coal producer'' means the
person in whom is vested ownership of the coal immediately
after the coal is severed from the ground, without regard to
the existence of any contractual arrangement for the sale or
other disposition of the coal or the payment of any royalties
between the producer and third parties. The term includes any
person who extracts coal from coal waste refuse piles or from
the silt waste product which results from the wet washing (or
similar processing) of coal.
(2) Exporter.--The term ``exporter'' means a person, other
than a coal producer, who does not have a contract, fee
arrangement, or any other agreement with a producer or seller
of such coal to export or ship such coal to a third party on
behalf of the producer or seller of such coal and--
(A) is indicated in the shipper's export
declaration or other documentation as the exporter of
record, or
(B) actually exported such coal to a foreign
country or shipped such coal to a possession of the
United States, or caused such coal to be so exported or
shipped.
(3) Related party.--The term ``a party related to such coal
producer'' means a person who--
(A) is related to such coal producer through any
degree of common management, stock ownership, or voting
control,
(B) is related (within the meaning of section
144(a)(3) of the Internal Revenue Code of 1986) to such
coal producer, or
(C) has a contract, fee arrangement, or any other
agreement with such coal producer to sell such coal to
a third party on behalf of such coal producer.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Treasury or the Secretary's designee.
(e) Timing of Refund.--With respect to any claim for refund filed
pursuant to this section, the Secretary shall determine whether the
requirements of this section are met not later than 180 days after such
claim is filed. If the Secretary determines that the requirements of
this section are met, the claim for refund shall be paid not later than
180 days after the Secretary makes such determination.
(f) Interest.--Any refund paid pursuant to this section shall be
paid by the Secretary with interest from the date of overpayment
determined by using the overpayment rate and method under section 6621
of the Internal Revenue Code of 1986.
(g) Denial of Double Benefit.--The payment under subsection (a)
with respect to any coal shall not exceed--
(1) in the case of a payment to a coal producer, the amount
of tax paid under section 4121 of the Internal Revenue Code of
1986 with respect to such coal by such coal producer or a party
related to such coal producer, and
(2) in the case of a payment to an exporter, an amount
equal to $0.825 per ton with respect to such coal exported by
the exporter or caused to be exported by the exporter.
(h) Application of Section.--This section applies only to claims on
coal exported or shipped on or after October 1, 1990, through the date
of the enactment of this Act.
(i) Standing Not Conferred.--
(1) Exporters.--With respect to exporters, this section
shall not confer standing upon an exporter to commence, or
intervene in, any judicial or administrative proceeding
concerning a claim for refund by a coal producer of any Federal
or State tax, fee, or royalty paid by the coal producer.
(2) Coal producers.--With respect to coal producers, this
section shall not confer standing upon a coal producer to
commence, or intervene in, any judicial or administrative
proceeding concerning a claim for refund by an exporter of any
Federal or State tax, fee, or royalty paid by the producer and
alleged to have been passed on to an exporter.
SEC. 565. CARBON AUDIT OF THE TAX CODE.
(a) Study.--The Secretary of the Treasury shall enter into an
agreement with the National Academy of Sciences to undertake a
comprehensive review of the Internal Revenue Code of 1986 to identify
the types of and specific tax provisions that have the largest effects
on carbon and other greenhouse gas emissions and to estimate the
magnitude of those effects.
(b) Report.--Not later than 2 years after the date of enactment of
this Act, the National Academy of Sciences shall submit to Congress a
report containing the results of study authorized under this section.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $1,500,000 for the period of
fiscal years 2008 and 2009.
Subpart C--Energy Conservation and Efficiency
SEC. 571. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1,
as amended by this Act, is amended by adding at the end the following
new section:
``SEC. 54D. QUALIFIED ENERGY CONSERVATION BONDS.
``(a) Qualified Energy Conservation Bond.--For purposes of this
subchapter, the term `qualified energy conservation bond' means any
bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for one or more qualified conservation
purposes,
``(2) the bond is issued by a State or local government,
and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Reduced Credit Amount.--The annual credit determined under
section 54A(b) with respect to any qualified energy conservation bond
shall be 70 percent of the amount so determined without regard to this
subsection.
``(c) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds which may be designated under subsection
(a) by any issuer shall not exceed the limitation amount allocated to
such issuer under subsection (e).
``(d) National Limitation on Amount of Bonds Designated.--There is
a national qualified energy conservation bond limitation of
$3,000,000,000.
``(e) Allocations.--
``(1) In general.--The limitation applicable under
subsection (d) shall be allocated by the Secretary among the
States in proportion to the population of the States.
``(2) Allocations to largest local governments.--
``(A) In general.--In the case of any State in
which there is a large local government, each such
local government shall be allocated a portion of such
State's allocation which bears the same ratio to the
State's allocation (determined without regard to this
subparagraph) as the population of such large local
government bears to the population of such State.
``(B) Allocation of unused limitation to state.--
The amount allocated under this subsection to a large
local government may be reallocated by such local
government to the State in which such local government
is located.
``(C) Large local government.--For purposes of this
section, the term `large local government' means any
municipality or county if such municipality or county
has a population of 100,000 or more.
``(3) Allocation to issuers; restriction on private
activity bonds.--Any allocation under this subsection to a
State or large local government shall be allocated by such
State or large local government to issuers within the State in
a manner that results in not less than 70 percent of the
allocation to such State or large local government being used
to designate bonds which are not private activity bonds.
``(f) Qualified Conservation Purpose.--For purposes of this
section--
``(1) In general.--The term `qualified conservation
purpose' means any of the following:
``(A) Capital expenditures incurred for purposes
of--
``(i) reducing energy consumption in
publicly owned buildings by at least 20
percent,
``(ii) implementing green community
programs,
``(iii) rural development involving the
production of electricity from renewable energy
resources, or
``(iv) any qualified facility (as
determined under section 45(d) without regard
to paragraphs (8) and (10) thereof and without
regard to any placed in service date).
``(B) Expenditures with respect to research
facilities, and research grants, to support research
in--
``(i) development of cellulosic ethanol or
other nonfossil fuels,
``(ii) technologies for the capture and
sequestration of carbon dioxide produced
through the use of fossil fuels,
``(iii) increasing the efficiency of
existing technologies for producing nonfossil
fuels,
``(iv) automobile battery technologies and
other technologies to reduce fossil fuel
consumption in transportation, or
``(v) technologies to reduce energy use in
buildings.
``(C) Mass commuting facilities and related
facilities that reduce the consumption of energy,
including expenditures to reduce pollution from
vehicles used for mass commuting.
``(D) Demonstration projects designed to promote
the commercialization of--
``(i) green building technology,
``(ii) conversion of agricultural waste for
use in the production of fuel or otherwise,
``(iii) advanced battery manufacturing
technologies,
``(iv) technologies to reduce peak use of
electricity, or
``(v) technologies for the capture and
sequestration of carbon dioxide emitted from
combusting fossil fuels in order to produce
electricity.
``(E) Public education campaigns to promote energy
efficiency.
``(2) Special rules for private activity bonds.--For
purposes of this section, in the case of any private activity
bond, the term `qualified conservation purposes' shall not
include any expenditure which is not a capital expenditure.
``(g) Population.--
``(1) In general.--The population of any State or local
government shall be determined for purposes of this section as
provided in section 146(j) for the calendar year which includes
the date of the enactment of this section.
``(2) Special rule for counties.--In determining the
population of any county for purposes of this section, any
population of such county which is taken into account in
determining the population of any municipality which is a large
local government shall not be taken into account in determining
the population of such county.
``(h) Application to Indian Tribal Governments.--An Indian tribal
government shall be treated for purposes of this section in the same
manner as a large local government, except that--
``(1) an Indian tribal government shall be treated for
purposes of subsection (e) as located within a State to the
extent of so much of the population of such government as
resides within such State, and
``(2) any bond issued by an Indian tribal government shall
be treated as a qualified energy conservation bond only if
issued as part of an issue the available project proceeds of
which are used for purposes for which such Indian tribal
government could issue bonds to which section 103(a)
applies.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as amended by section
806, is amended by striking ``or'' at the end of subparagraph
(A), by adding ``or'' at the end of subparagraph (B), and by
inserting after subparagraph (B) the following new
subparagraph:
``(C) a qualified energy conservation bond,''.
(2) Subparagraph (C) of section 54A(d)(2), as amended by
section 806, is amended by striking ``and'' at the end of
clause (i), by striking the period at the end of clause (ii)
and inserting ``and'', and by adding at the end the following
new clause:
``(iii) in the case of a qualified energy
conservation bond, a purpose specified in
section 54D(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1, as amended by section 806, is
amended by adding at the end the following new item:
``Sec. 54D. Qualified energy conservation bonds.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
SEC. 572. CREDIT FOR NONBUSINESS ENERGY PROPERTY.
(a) Extension of Credit.--Section 25C(g) is amended by striking
``December 31, 2007'' and inserting ``December 31, 2008''.
(b) Qualified Biomass Fuel Property.--
(1) In general.--Section 25C(d)(3) is amended--
(A) by striking ``and'' at the end of subparagraph
(D),
(B) by striking the period at the end of
subparagraph (E) and inserting ``, and'', and
(C) by adding at the end the following new
subparagraph:
``(F) a stove which uses the burning of biomass
fuel to heat a dwelling unit located in the United
States and used as a residence by the taxpayer, or to
heat water for use in such a dwelling unit, and which
has a thermal efficiency rating of at least 75
percent.''.
(2) Biomass fuel.--Section 25C(d) is amended by adding at
the end the following new paragraph:
``(6) Biomass fuel.--The term `biomass fuel' means any
plant-derived fuel available on a renewable or recurring basis,
including agricultural crops and trees, wood and wood waste and
residues (including wood pellets), plants (including aquatic
plants), grasses, residues, and fibers.''.
(c) Coordination With Credit for Qualified Geothermal Heat Pump
Property Expenditures.--
(1) In general.--Paragraph (3) of section 25C(d), as
amended by subsection (b), is amended by striking subparagraph
(C) and by redesignating subparagraphs (D), (E), and (F) as
subparagraphs (C), (D), and (E), respectively.
(2) Conforming amendment.--Subparagraph (C) of section
25C(d)(2) is amended to read as follows:
``(C) Requirements and standards for air
conditioners and heat pumps.--The standards and
requirements prescribed by the Secretary under
subparagraph (B) with respect to the energy efficiency
ratio (EER) for central air conditioners and electric
heat pumps--
``(i) shall require measurements to be
based on published data which is tested by
manufacturers at 95 degrees Fahrenheit, and
``(ii) may be based on the certified data
of the Air Conditioning and Refrigeration
Institute that are prepared in partnership with
the Consortium for Energy Efficiency.''.
(d) Effective Date.--The amendments made this section shall apply
to expenditures made after December 31, 2007.
SEC. 573. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
Subsection (h) of section 179D is amended by striking ``December
31, 2008'' and inserting ``December 31, 2013''.
SEC. 574. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR
APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M is amended to read
as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is
manufactured in calendar year 2008 or 2009 and which
uses no more than 324 kilowatt hours per year and 5.8
gallons per cycle, and
``(B) $75 in the case of a dishwasher which is
manufactured in calendar year 2008, 2009, or 2010 and
which uses no more than 307 kilowatt hours per year and
5.0 gallons per cycle (5.5 gallons per cycle for
dishwashers designed for greater than 12 place
settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading
clothes washer manufactured in calendar year 2008 which
meets or exceeds a 1.72 modified energy factor and does
not exceed a 8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading
clothes washer manufactured in calendar year 2008 or
2009 which meets or exceeds a 1.8 modified energy
factor and does not exceed a 7.5 water consumption
factor,
``(C) $150 in the case of a residential or
commercial clothes washer manufactured in calendar year
2008, 2009, or 2010 which meets or exceeds 2.0 modified
energy factor and does not exceed a 6.0 water
consumption factor, and
``(D) $250 in the case of a residential or
commercial clothes washer manufactured in calendar year
2008, 2009, or 2010 which meets or exceeds 2.2 modified
energy factor and does not exceed a 4.5 water
consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is
manufactured in calendar year 2008, and consumes at
least 20 percent but not more than 22.9 percent less
kilowatt hours per year than the 2001 energy
conservation standards,
``(B) $75 in the case of a refrigerator which is
manufactured in calendar year 2008 or 2009, and
consumes at least 23 percent but no more than 24.9
percent less kilowatt hours per year than the 2001
energy conservation standards,
``(C) $100 in the case of a refrigerator which is
manufactured in calendar year 2008, 2009, or 2010, and
consumes at least 25 percent but not more than 29.9
percent less kilowatt hours per year than the 2001
energy conservation standards, and
``(D) $200 in the case of a refrigerator
manufactured in calendar year 2008, 2009, or 2010 and
which consumes at least 30 percent less energy than the
2001 energy conservation standards.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c)
of section 45M is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that
follows through ``the eligible'' and inserting ``The
eligible'',
(C) by moving the text of such subsection in line
with the subsection heading, and
(D) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively, and by moving
such paragraphs 2 ems to the left.
(2) Modification of base period.--Paragraph (2) of section
45M(c), as amended by paragraph (1), is amended by striking
``3-calendar year'' and inserting ``2-calendar year''.
(c) Types of Energy Efficient Appliances.--Subsection (d) of
section 45M (defining types of energy efficient appliances) is amended
to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of this
section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2), and
``(3) refrigerators described in subsection (b)(3).''.
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e) is
amended to read as follows:
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with respect to a
taxpayer for any taxable year shall not exceed $75,000,000
reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior taxable
years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes
washers.--Paragraph (2) of section 45M(e) is amended to read as
follows:
``(2) Amount allowed for certain refrigerators and clothes
washers.--Refrigerators described in subsection (b)(3)(D) and
clothes washers described in subsection (b)(2)(D) shall not be
taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining
qualified energy efficient appliance) is amended to read as
follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection
(b)(1),
``(B) any clothes washer described in subsection
(b)(2), and
``(C) any refrigerator described in subsection
(b)(3).''.
(2) Clothes washer.--Section 45M(f)(3) is amended by
inserting ``commercial'' before ``residential'' the second
place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section
45M is amended by redesignating paragraphs (4), (5), (6), and
(7) as paragraphs (5), (6), (7), and (8), respectively, and by
inserting after paragraph (3) the following new paragraph:
``(4) Top-loading clothes washer.--The term `top-loading
clothes washer' means a clothes washer which has the clothes
container compartment access located on the top of the machine
and which operates on a vertical axis.''.
(4) Replacement of energy factor.--Section 45M(f)(6), as
redesignated by paragraph (3), is amended to read as follows:
``(6) Modified energy factor.--The term `modified energy
factor' means the modified energy factor established by the
Department of Energy for compliance with the Federal energy
conservation standard.''.
(5) Gallons per cycle; water consumption factor.--Section
45M(f), as amended by paragraph (3), is amended by adding at
the end the following:
``(9) Gallons per cycle.--The term `gallons per cycle'
means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of a
dishwasher.
``(10) Water consumption factor.--The term `water
consumption factor' means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water consumption
divided by the cubic foot (or liter) capacity of the clothes
washer.''.
(f) Effective Date.--The amendments made by this section shall
apply to appliances produced after December 31, 2007.
SEC. 575. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS
AND SMART GRID SYSTEMS.
(a) In General.--Section 168(e)(3)(D) is amended by striking
``and'' at the end of clause (i), by striking the period at the end of
clause (ii) and inserting a comma, and by inserting after clause (ii)
the following new clauses:
``(iii) any qualified smart electric meter,
and
``(iv) any qualified smart electric grid
system.''.
(b) Definitions.--Section 168(i) is amended by inserting at the end
the following new paragraph:
``(18) Qualified smart electric meters.--
``(A) In general.--The term `qualified smart
electric meter' means any smart electric meter which is
placed in service by a taxpayer who is a supplier of
electric energy or a provider of electric energy
services.
``(B) Smart electric meter.--For purposes of
subparagraph (A), the term `smart electric meter' means
any time-based meter and related communication
equipment which is capable of being used by the
taxpayer as part of a system that--
``(i) measures and records electricity
usage data on a time-differentiated basis in at
least 24 separate time segments per day,
``(ii) provides for the exchange of
information between supplier or provider and
the customer's electric meter in support of
time-based rates or other forms of demand
response,
``(iii) provides data to such supplier or
provider so that the supplier or provider can
provide energy usage information to customers
electronically, and
``(iv) provides net metering.
``(19) Qualified smart electric grid systems.--
``(A) In general.--The term `qualified smart
electric grid system' means any smart grid property
used as part of a system for electric distribution grid
communications, monitoring, and management placed in
service by a taxpayer who is a supplier of electric
energy or a provider of electric energy services.
``(B) Smart grid property.--For the purposes of
subparagraph (A), the term `smart grid property' means
electronics and related equipment that is capable of--
``(i) sensing, collecting, and monitoring
data of or from all portions of a utility's
electric distribution grid,
``(ii) providing real-time, two-way
communications to monitor or manage such grid,
and
``(iii) providing real time analysis of and
event prediction based upon collected data that
can be used to improve electric distribution
system reliability, quality, and
performance.''.
(c) Continued Application of 150 Percent Declining Balance
Method.--Paragraph (2) of section 168(b) is amended by striking ``or''
at the end of subparagraph (B), by redesignating subparagraph (C) as
subparagraph (D), and by inserting after subparagraph (B) the following
new subparagraph:
``(C) any property (other than property described
in paragraph (3)) which is a qualified smart electric
meter or qualified smart electric grid system, or''.
(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.
SEC. 576. QUALIFIED GREEN BUILDING AND SUSTAINABLE DESIGN PROJECTS.
(a) In General.--Paragraph (8) of section 142(l) is amended by
striking ``September 30, 2009'' and inserting ``September 30, 2012''.
(b) Treatment of Current Refunding Bonds.--Paragraph (9) of section
142(l) is amended by striking ``October 1, 2009'' and inserting
``October 1, 2012''.
(c) Accountability.--The second sentence of section 701(d) of the
American Jobs Creation Act of 2004 is amended by striking ``issuance,''
and inserting ``issuance of the last issue with respect to such
project,''.
Subpart D--Geothermal Incentives
SEC. 581. ENERGY CREDIT FOR GEOTHERMAL HEAT PUMP SYSTEMS.
(a) In General.--Subparagraph (A) of section 48(a)(3) of the
Internal Revenue Code of 1986 is amended 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) equipment which uses the ground or
ground water as a thermal energy source to heat
a structure or as a thermal energy sink to cool
a structure,''.
(b) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 582. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR GEOTHERMAL HEAT
PUMP SYSTEMS.
(a) In General.--Subparagraph (A) of section 168(e)(3) of the
Internal Revenue Code of 1986 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 property which is described in
clause (v) of section 48(a)(3)(A).''.
(b) Conforming Amendment.--Subclause (I) of section
168(e)(3)(B)(vi) of such Code is amended by inserting ``clause (i),
(ii), (iii), or (iv) of'' before ``subparagraph (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.
TITLE VI--INCREASED DOMESTIC PRODUCTION
Subtitle A--Outer Continental Shelf
SEC. 601. PROHIBITION ON LEASING.
(a) Prohibition.--The Outer Continental Shelf Lands Act (43 U.S.C.
1331 et seq.) notwithstanding, the Secretary shall not take nor
authorize any action related to oil and gas preleasing or leasing of
any area of the Outer Continental Shelf that was not available for oil
and gas leasing as of July 1, 2008, unless that action is expressly
authorized by this subtitle or a statute enacted by Congress after the
date of enactment of this Act.
(b) Treatment of Areas in Gulf of Mexico.--For purposes of this
subtitle, such action with respect to an area referred to in section
104(a) of the Gulf of Mexico Energy Security Act of 2006 (title I of
division C of Public Law 109-432; 42 U.S.C. 1331 note) taken or
authorized after the period referred to in that section shall be
treated as authorized by this subtitle, and such leasing of such area
shall be treated as authorized under section 602(a).
SEC. 602. OPENING OF CERTAIN AREAS TO OIL AND GAS LEASING.
(a) Leasing Authorized.--The Secretary may offer for oil and gas
leasing, preleasing, or other related activities, in accordance with
this section and the Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.) and subject to subsection (b) of this section, section 603 of
this Act, and section 307 of the Coastal Zone Management Act of 1972
(16 U.S.C. 1456), any area--
(1) that is in any Outer Continental Shelf Planning Area in
the Atlantic Ocean or Pacific Ocean that is located farther
than 50 miles from the coastline; and
(2) that was not otherwise available for oil and gas
leasing, preleasing, and other related activities as of July 1,
2008.
(b) Inclusion in Leasing Program Required.--An area may be offered
for lease under this section only if it has been included in an Outer
Continental Shelf leasing program approved by the Secretary in
accordance with section 18 of the Outer Continental Shelf Lands Act (43
U.S.C. 1344).
(c) Requirement To Conduct Lease Sales.--As soon as practicable,
consistent with subsection (b) and section 603(a), but not later than 3
years after the date of enactment of this Act, and as appropriate
thereafter, the Secretary shall conduct oil and gas lease sales under
the Outer Continental Shelf lands Act (43 U.S.C. 1331 et seq.) for
areas that are made available for leasing by this section.
SEC. 603. COASTAL STATE ROLES AND RESPONSIBILITIES.
(a) State Approval of Certain Leasing Required.--The Secretary may
not conduct any oil and gas leasing or preleasing activity in any area
made available for oil and gas leasing by section 602(a) that is
located within 100 miles from the coastline and within the seaward
lateral boundaries of an adjacent State, unless the adjacent State has
enacted a law approving of the issuance of such leasing by the
Secretary.
(b) Consultation With Adjacent and Neighboring States.--
(1) In general.--In addition to the consultation provided
for under section 19 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1345), the Governor of a State that has a coastline
within 100 miles of an area of the Outer Continental Shelf
being considered for oil and gas leasing and made available for
such leasing by section 602(a) may submit recommendations to
the Secretary with respect to--
(A) the size, timing, or location of a proposed
lease sale; or
(B) a proposed development and production plan.
(2) Requirements.--Subsections (b), (c), and (d) of section
19 of the Outer Continental Shelf Lands Act (43 U.S.C. 1345)
shall apply to the recommendations provided for in paragraph
(1).
SEC. 604. PROTECTION OF THE ENVIRONMENT AND CONSERVATION OF THE NATURAL
RESOURCES OF THE OUTER CONTINENTAL SHELF.
The Secretary--
(1) shall ensure that any activity under this subtitle is
carried out in a manner that provides for the protection of the
coastal environment, marine environment, and human environment
of State coastal zones and the Outer Continental Shelf; and
(2) shall review all Federal regulations that are otherwise
applicable to activities authorized by this subtitle to ensure
environmentally sound oil and gas operations on the Outer
Continental Shelf.
SEC. 605. LIMITATIONS.
(a) Compliance With Memorandum.--Any oil and gas leasing of areas
of the Outer Continental Shelf shall be conducted in accordance with
the document entitled ``Memorandum of Agreement between the Department
of Defense and the Department of the Interior on Mutual Concerns On The
Outer Continental Shelf'' and dated July 2, 1983, and such revisions
thereto as may be agreed to by the Secretary of Defense and the
Secretary of the Interior; except that no such revisions may be made
prior to January 21, 2009.
(b) National Security.--Notwithstanding subsection (a), the United
States reserves the right to designate by and through the Secretary of
Defense, with the approval of the President, national defense areas on
the Outer Continental Shelf pursuant to section 12(d) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1341(d)).
SEC. 606. PROHIBITION ON LEASING IN CERTAIN FEDERAL PROTECTED AREAS.
(a) In General.--Notwithstanding any other provision of this or any
other Federal law, no lease or other authorization may be issued by the
Federal Government that authorizes exploration, development, or
production of oil or natural gas in--
(1) any marine national monument or national marine
sanctuary; or
(2) the fishing grounds known as Georges Bank in the waters
of the United States, which is one of the largest and
historically important fishing grounds of the United States.
(b) Identification of Coordinates of Georges Bank.--The Secretary
of Commerce, after publication of public notice and an opportunity for
public comment, shall identify the specific coordinates that delineate
Georges Bank in the waters of the United States for purposes of
subsection (a).
SEC. 607. NO EFFECT ON APPLICABLE LAW.
Except as otherwise specifically provided in this subtitle, nothing
in this subtitle waives or modifies any applicable environmental or
other law.
SEC. 608. BUY AMERICAN REQUIREMENTS.
(a) In General.--It is the intent of Congress that this Act, among
other things, result in a healthy and growing American industrial,
manufacturing, transportation, and service sector employing the vast
talents of America's workforce to assist in the development of energy
from domestic sources. Moreover, the Congress intends to monitor the
deployment of personnel and material onshore and offshore to encourage
the development of American technology and manufacturing to enable
United States workers to benefit from this Act by good jobs and
careers, as well as the establishment of important industrial
facilities to support expanded access to American resources.
(b) Safeguard for Extraordinary Ability.--Section 30(a) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the
matter preceding paragraph (1) by striking ``regulations which'' and
inserting ``regulations that shall be supplemental and complimentary
with and under no circumstances a substitution for the provisions of
the Constitution and laws of the United States extended to the subsoil
and seabed of the outer Continental Shelf pursuant to section 4 of this
Act, except insofar as such laws would otherwise apply to individuals
who have extraordinary ability in the sciences, arts, education, or
business, which has been demonstrated by sustained national or
international acclaim, and that''.
SEC. 609. SMALL, WOMAN-OWNED, AND MINORITY-OWNED BUSINESSES.
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337)
is amended by adding at the end the following:
``(q) Opportunities for Leasing.--The Secretary shall establish
goals to ensure equal opportunity to bid on offshore leases for
qualified small, women-owned, and minority-owned exploration and
production companies and may implement, where appropriate, outreach
programs for qualified historically underutilized exploration and
production companies to participate in the bidding process for offshore
leases.''.
SEC. 610. OCS JOINT PERMITTING OFFICES.
(a) Establishment.--The Secretary of the Interior (referred to in
this section as the ``Secretary'') shall establish Federal OCS Joint
Regional Permitting Offices (referred to in this section as the
``Regional Permitting Offices'') in accordance with this section.
(b) Memorandum of Understanding.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall enter into a
memorandum of understanding for purposes of this section with--
(1) the Secretary of Commerce;
(2) the Administrator of the Environmental Protection
Agency; and
(3) the Chief of Engineers.
(c) Designation of Qualified Staff.--
(1) In general.--Not later than 30 days after the date of
the signing of the memorandum of understanding under subsection
(b), all Federal signatory parties shall assign to each of the
Regional Permitting Offices identified in subsection (d) a
sufficient number of employees with expertise to address the
full spectrum of agency regulatory issues relating to the
Regional Permitting Office in which the employee is employed,
including, as applicable, particular expertise in--
(A) the consultations and the preparation of
biological opinions under section 7 of the Endangered
Species Act of 1973 (16 U.S.C.1536);
(B) permits under section 404 of Federal Water
Pollution Control Act (33 U.S.C. 1344);
(C) regulatory matters under the Clean Air Act (42
U.S.C. 7401 et seq.);
(D) the consultations and preparation of documents
under the Marine Mammal Protection Act of 1972 (16
U.S.C. 1361 et seq.); and
(E) the preparation of analyses under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.).
(2) Duties.--Each employee assigned under paragraph (1)
shall--
(A) not later than 90 days after the date of
assignment, report to the Minerals Management Service
Regional Director in the Regional Permitting Office to
which the employee is assigned;
(B) be responsible for all issues relating to the
jurisdiction of the home office or agency of the
employee; and
(C) participate as part of the team of personnel
working on proposed energy projects, planning, and
environmental analyses.
(d) Regional Permitting Offices.--The following Minerals Management
Service Regional Headquarters shall serve as the Regional Permitting
Offices:
(1) Anchorage, Alaska.
(2) New Orleans, Louisiana.
(3) MMS Pacific Regional Headquarters.
(4) MMS Atlantic Regional Headquarters.
(e) Reports.--Not later than 3 years after the date of enactment of
this Act, the Secretary shall submit to Congress a report that
describes the results of the Regional Permitting Offices.
(f) Transfer of Fund.--For the purposes of coordination and
processing of oil and gas use authorization on the Federal Outer
Continental Shelf under the administration of the Regional Permitting
Offices identified in subsection (d), the Secretary may authorize the
expenditure or transfer of such funds as are necessary to--
(1) the United States Fish and Wildlife Service;
(2) the Bureau of Indian Affairs;
(3) the Environmental Protection Agency;
(4) the National Oceanic and Atmospheric Administration;
and
(5) the Corps of Engineers.
SEC. 611. DEFINITIONS.
In this subtitle:
(1) Adjacent state.--The term ``adjacent State'' means,
with respect to any program, plan, lease sale, leased tract, or
other activity, proposed, conducted, or approved in accordance
with the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.), the State, the laws of which are declared pursuant to
section 4(a)(2) of the Outer Continental Shelf Lands Act (43
U.S.C. 1333(a)(2)) to be the law of the United States for the
portion of the Outer Continental Shelf on which the program,
plan, lease sale, leased tract, or activity is, or is proposed
to be, conducted.
(2) Coastal environment.--The term ``coastal environment''
has the meaning given that term in the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.).
(3) Coastal zone.--The term ``coastal zone'' has the
meaning given that term in the Outer Continental Shelf Lands
Act (43 U.S.C. 1331 et seq.).
(4) Coastline.--The term ``coastline'' has the meaning
given the term ``coast line'' under section 2 of the Submerged
Lands Act (43 U.S.C. 1301).
(5) Human environment.--The term ``human environment'' has
the meaning given that term in the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.).
(6) Marine environment.--The term ``marine environment''
has the meaning given that term in the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.).
(7) Outer continental shelf.--The term ``Outer Continental
Shelf'' has the meaning given the term ``outer Continental
Shelf'' under section 2 of the Outer Continental Shelf Lands
Act (43 U.S.C. 1331).
(8) Seaward lateral boundary.--The term ``seaward lateral
boundary'' means a boundary drawn by the Minerals Management
Service in the Federal Register notice of January 3, 2006 (vol
71, no. 1).
(9) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
Subtitle B--Drill Responsibly in Leased Lands
SEC. 621. ISSUANCE OF NEW LEASES.
(a) In General.--After the date of the issuance of regulations
under subsection (b), the Secretary of the Interior shall not issue to
a person any new lease that authorizes the exploration for or
production of oil or natural gas, under section 17 of the Mineral
Leasing Act (33 U.S.C. 226), the Mineral Leasing Act for Acquired Lands
Act (30 U.S.C. 351 et seq.), the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.), or any other law authorizing the issuance of oil
and gas leases on Federal lands or submerged lands, unless--
(1) the person certifies for each existing lease under such
Acts for the production of oil or gas with respect to which the
person is a lessee, that the person is diligently developing
the Federal lands that are subject to the lease in order to
produce oil or natural gas or is producing oil or natural gas
from such land; or
(2) the person has relinquished all ownership interest in
all Federal oil and gas leases under which oil and gas is not
being diligently developed.
(b) Diligent Development.--The Secretary shall issue regulations
within 180 days after the date of enactment of this Act that establish
what constitutes ``diligently developing'' for purposes of this Act.
(c) Failure To Comply With Requirements.--Any person who fails to
comply with the requirements of this section or any regulation or order
issued to implement this section shall be liable for a civil penalty
under section 109 of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1719).
(d) Lessee Defined.--In this section the term ``lessee''--
(1) includes any person or other entity that controls, is
controlled by, or is in or under common control with, a lessee;
and
(2) does not include any person who does not hold more than
a minority ownership interest in a lease under an Act referred
to in subsection (a) authorizing the exploration for or
production of oil or natural gas.
SEC. 622. FAIR RETURN ON PRODUCTION OF FEDERAL OIL AND GAS RESOURCES.
(a) Royalty Payments.--The Secretary of the Interior shall take all
steps necessary to ensure that lessees under leases for exploration,
development, and production of oil and natural gas on Federal lands,
including leases under the Mineral Leasing Act (30 U.S.C. 181 et seq.),
the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.), the
Outer Continental Shelf Lands Act (30 U.S.C. 1331 et seq.), and all
other mineral leasing laws, are making prompt, transparent, and
accurate royalty payments under such leases.
(b) Recommendations for Legislative Action.--In order to facilitate
implementation of subsection (a), the Secretary of the Interior shall,
within 180 days after the date of the enactment of this Act and in
consultation with the affected States, prepare and transmit to Congress
recommendations for legislative action to improve the accurate
collection of Federal oil and gas royalties.
Subtitle C--Coal Innovation Direct Loan Program
SEC. 631. COAL INNOVATION DIRECT LOAN PROGRAM.
(a) In General.--Title XXXI of the Energy Policy Act of 1992 (42
U.S.C. 13571 et seq.) is amended by adding at the end the following:
``SEC. 3105. COAL INNOVATION DIRECT LOAN PROGRAM.
``(a) Definitions.--In this section:
``(1) Carbon capture.--The term `carbon capture' means the
capture, separation, and compression of carbon dioxide that
would otherwise be released to the atmosphere at a facility in
the production of end products of a project prior to
transportation of the carbon dioxide to a long-term storage
site.
``(2) Coal-to-liquid product.--The term `coal-to-liquid
product' means a liquid fuel resulting from the conversion of a
feedstock, as described in this section.
``(3) Combustible end product.--The term `combustible end
product' means any product of a facility intended to be used as
a combustible fuel.
``(4) Conventional baseline emissions.--The term
`conventional baseline emissions' means--
``(A) the lifecycle greenhouse gas emissions of a
facility that produces combustible end products, using
petroleum as a feedstock, that are equivalent to
combustible end products produced by a facility of
comparable size through an eligible project;
``(B) in the case of noncombustible products
produced through an eligible project, the average
lifecycle greenhouse gas emissions emitted by projects
that--
``(i) are of comparable size; and
``(ii) produce equivalent products using
conventional feedstocks; and
``(C) in the case of synthesized gas intended for
use as a combustible fuel in lieu of natural gas
produced by an eligible project, the lifecycle
greenhouse gas emissions that would result from
equivalent use of natural gas.
``(5) Eligible project.--The term `eligible project' means
a project--
``(A) that employs gasification technology or
another conversion process for feedstocks described in
this section; and
``(B) for which--
``(i) the annual lifecycle greenhouse gas
emissions of the project are at least 20
percent lower than conventional baseline
emissions;
``(ii) at least 75 percent of the carbon
dioxide that would otherwise be released to the
atmosphere at the facility in the production of
end products of the project is captured for
long-term storage;
``(iii) the individual or entity carrying
out the eligible project has entered into an
enforceable agreement with the Secretary to
implement carbon capture at the percentage
that, by the end of the 5-year period after
commencement of commercial operation of the
eligible project--
``(I) represents the best available
technology; and
``(II) achieves a reduction in
carbon emissions that is not less than
75 percent; and
``(iv) in the opinion of the Secretary,
sufficient commitments have been secured to
achieve long-term storage of captured carbon
dioxide beginning as of the date of
commencement of commercial operation of the
project.
``(6) Facility.--The term `facility' means a facility at
which the conversion of feedstocks to end products takes place.
``(7) Gasification technology.--The term `gasification
technology' means any process that converts coal, petroleum
residue, renewable biomass, or other material that is recovered
for energy or feedstock value into a synthesis gas composed
primarily of carbon monoxide and hydrogen for direct use or
subsequent chemical or physical conversion.
``(8) Greenhouse gas.--The term `greenhouse gas' means any
of--
``(A) carbon dioxide;
``(B) methane;
``(C) nitrous oxide;
``(D) hydrofluorocarbons;
``(E) perfluorocarbons; and
``(F) sulfur hexafluoride.
``(9) Lifecycle greenhouse gas emissions.--The term
`lifecycle greenhouse gas emissions' means the aggregate
quantity of greenhouse gases attributable to the production and
transportation of end products at a facility, including the
production, extraction, cultivation, distribution, marketing,
and transportation of feedstocks, and the subsequent
distribution and use of any combustible end products, as
modified by deducting, as determined by the Administrator of
the Environmental Protection Agency--
``(A) any greenhouse gases captured at the facility
and sequestered;
``(B) the carbon content, expressed in units of
carbon dioxide equivalent, of any feedstock that is
renewable biomass; and
``(C) the carbon content, expressed in units of
carbon dioxide equivalent, of any end products that do
not result in the release of carbon dioxide to the
atmosphere.
``(10) Long-term storage.--The term `long-term storage'
means sequestration with an expected maximum rate of carbon
dioxide leakage over a specified period of time that is
consistent with the objective of reducing atmospheric
concentrations of carbon dioxide, subject to a permit issued
pursuant to law in effect as of the date of the sequestration.
``(11) Renewable biomass.--The term `renewable biomass' has
the definition given the term in section 102 of the Renewable
Fuels, Consumer Protection, and Energy Efficiency Act of 2007.
``(12) Sequestration.--The term `sequestration' means the
placement of carbon dioxide in a geological formation,
including--
``(A) an operating oil and gas field;
``(B) coal bed methane recovery;
``(C) a depleted oil and gas field;
``(D) an unmineable coal seam;
``(E) a deep saline formation; and
``(F) a deep geological systems containing basalt
formations.
``(b) Feed Assistance Program.--
``(1) In general.--Subject to paragraph (3), and in
accordance with section 988 of the Energy Policy Act of 2005
(42 U.S.C. 16352), not later than 1 year after the date of the
enactment of this section, the Secretary shall carry out a
program to provide grants for use in obtaining or carrying out
any services necessary for the planning, permitting, and
construction of an eligible project.
``(2) Selection of eligible projects.--The Secretary shall
select eligible projects to receive grants under this section--
``(A) through the conduct of a reverse auction, in
which eligible projects proposed to be carried out that
have the greatest rate of carbon capture and long-term
storage, and the lowest lifecycle greenhouse gas
emissions, are given priority;
``(B) that, taken together, would--
``(i) represent a variety of geographical
regions;
``(ii) use a variety of feedstocks and
types of coal; and
``(iii) to the extent consistent with
achieving long-term storage, represent a
variety of geological formations; and
``(C) for which eligible projects, in the opinion
of the Secretary--
``(i) each award recipient is financially
viable without the receipt of additional
Federal funding associated with the proposed
project;
``(ii) each recipient will provide
sufficient information to the Secretary for the
Secretary to ensure that the qualified
investment is expended efficiently and
effectively;
``(iii) a market exists for the products of
the proposed project, as evidenced by contracts
or written statements of intent from potential
customers;
``(iv) the project team of each recipient
is competent in the construction and operation
of the gasification technology proposed; and
``(v) each recipient has met such other
criteria as may be established and published by
the Secretary.
``(3) Maximum amount of grants.--In carrying out this
subsection, the Secretary shall provide not more than--
``(A) $20,000,000 in grant funds for any eligible
project; and
``(B) $200,000,000 in grant funds, in the
aggregate, for all eligible projects.
``(c) Direct Loan Program.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, and subject to funds being made
available in advance through appropriations Acts, the Secretary
shall carry out a program to provide a total of not more than
$10,000,000,000 in loans to eligible individuals and entities
(as determined by the Secretary) for use in carrying out
eligible projects.
``(2) Application.--An applicant for a loan under this
section shall comply with the terms and conditions in section
215(b)(3) of the Renewable Fuels, Consumer Protection, and
Energy Efficiency Act of 2007 in the same manner in which
applicants for Renewable Energy Construction grants are
required to comply with that section.
``(3) Selection of eligible projects.--The Secretary shall
select eligible projects to receive loans under this section--
``(A) through the conduct of a reverse auction, in
which eligible projects proposed to be carried out that
have the greatest rate of carbon capture and long-term
storage, and the lowest lifecycle greenhouse gas
emissions, are given priority;
``(B) that, taken together, would--
``(i) represent a variety of geographic
regions;
``(ii) use a variety of types of feedstocks
and coal; and
``(iii) to the extent consistent with
achieving long-term storage, represent a
variety of geological formations; and
``(C) for which eligible projects, in the opinion
of the Secretary--
``(i) each award recipient is financially
viable without the receipt of additional
Federal funding associated with the proposed
project;
``(ii) each recipient will provide
sufficient information to the Secretary for the
Secretary to ensure that the qualified
investment is expended efficiently and
effectively;
``(iii) a market exists for the products of
the proposed project, as evidenced by contracts
or written statements of intent from potential
customers;
``(iv) the project team of each recipient
is competent in the construction and operation
of the gasification technology proposed; and
``(v) each recipient has met such other
criteria as may be established and published by
the Secretary.
``(4) Use of loan funds.--
``(A) In general.--Subject to subparagraph (B),
funds from a loan provided under this section may be
used to pay up to 100 percent of the costs of capital
associated with reducing lifecycle greenhouse gas
emissions at the facility (including carbon dioxide
capture, compression, and long-term storage,
cogeneration, and gasification of biomass) carried out
as part of an eligible project.
``(B) Total project cost.--Funds from a loan
provided under this section may not be used to pay more
than 50 percent of the total cost of an eligible
project.
``(5) Rates, terms, and repayment of loans.--A loan
provided under this section--
``(A) shall have an interest rate that, as of the
date on which the loan is made, is equal to the cost of
funds to the Department of the Treasury for obligations
of comparable maturity;
``(B) shall have a term equal to the lesser of--
``(i) the projected life, in years, of the
eligible project to be carried out using funds
from the loan, as determined by the Secretary;
and
``(ii) 25 years;
``(C) may be subject to a deferral in repayment for
not more than 5 years after the date on which the
eligible project carried out using funds from the loan
first begins operations, as determined by the
Secretary; and
``(D) shall be made on the condition that the
Secretary shall be subrogated to the rights of the
recipient of the payment as specified in the loan or
related agreements, including, as 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 guarantee or a related
agreement; or
``(ii) to permit the borrower, pursuant to
an agreement with the Secretary, to continue to
pursue the purposes of the project, if the
Secretary determines the pursuit to be in the
public interest.
``(6) Methodology.--Not later than 18 months after the date
of enactment of this section, the Administrator of the
Environmental Protection Agency shall, by regulation, establish
a methodology for use in determining the lifecycle greenhouse
gas emissions of products produced using gasification
technology.
``(d) Study of Maintaining Coal-to-Liquid Products in Strategic
Petroleum Reserve.--Not later than 1 year after the date of enactment
of this section, the Secretary and the Secretary of Defense shall--
``(1) conduct a study of the feasibility and suitability of
maintaining coal-to-liquid products in the Strategic Petroleum
Reserve; and
``(2) submit to the Committee on Energy and Natural
Resources and the Committee on Armed Services of the Senate and
the Committee on Energy and Commerce and the Committee on Armed
Services of the House of Representatives a report describing
the results of the study.
``(e) Report on Emissions of Coal-to-Liquid Products Used as
Transportation Fuels.--
``(1) In general.--In cooperation with the Secretary, the
Secretary of Defense, the Administrator of the Federal Aviation
Administration, and the Secretary of Health and Human Services,
the Administrator of the Environmental Protection Agency
shall--
``(A) carry out a research and demonstration
program to evaluate the emissions of the use of coal-
to-liquid fuel for transportation, including diesel and
jet fuel;
``(B) evaluate the effect of using coal-to-liquid
transportation fuel on emissions of vehicles, including
motor vehicles and nonroad vehicles, and aircraft (as
those terms are defined in sections 216 and 234,
respectively, of the Clean Air Act (42 U.S.C. 7550,
7574)); and
``(C) in accordance with paragraph (4), submit to
Congress a report on the effect on air and water
quality, water scarcity, land use, and public health of
using coal-to-liquid fuel in the transportation sector.
``(2) Guidance and technical support.--The Administrator of
the Environmental Protection Agency, in consultation with the
Secretary, shall issue any guidance or technical support
documents necessary to facilitate the effective use of coal-to-
liquid fuel and blends under this subsection.
``(3) Requirements.--The program described in paragraph
(1)(A) shall take into consideration--
``(A) the use of neat (100 percent) coal-to-liquid
fuel and blends of coal-to-liquid fuels with
conventional crude oil-derived fuel for heavy-duty and
light-duty diesel engines and the aviation sector;
``(B) the production costs associated with domestic
production of those fuels and prices for consumers; and
``(C) the overall greenhouse gas effects of
substituting coal-derived fuels for crude oil-derived
fuels.
``(4) Reports.--The Administrator of the Environmental
Protection Agency shall submit to the Committee on Energy and
Natural Resources of the Senate and the Committee on Energy and
Commerce of the House of Representatives--
``(A) not later than 180 days after the date of
enactment of this section, an interim report on actions
taken to carry out this subsection; and
``(B) not later than 1 year after the date of
enactment of this section, a final report on actions
taken to carry out this subsection.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
(b) Conforming Amendment.--The table of contents of the Energy
Policy Act of 1992 (42 U.S.C. prec. 13201) is amended by adding at the
end of the items relating to title XXXI the following:
``Sec. 3105. Coal innovation direct loan program.''.
Subtitle D--Nuclear Power
SEC. 641. NUCLEAR REGULATORY COMMISSION.
(a) There are authorized to be appropriated to the Nuclear
Regulatory Commission such sums as are necessary for the Commission to
establish an additional 60 full-time equivalent positions to--
(1) expedite the processing of applications for new nuclear
plants;
(2) streamline the licensing process; and
(3) provide additional safety oversight for current and new
facilities.
(b) There are authorized to be appropriated to the Nuclear
Regulatory Commission for the Inspector General's Office such sums as
are necessary for the Inspector General's Office to establish an
additional 5 full-time equivalent positions to assist with ongoing
audits and investigations.
SEC. 642. NUCLEAR ENERGY WORKFORCE.
Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is
amended--
(1) in subsection (b)(1)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(C) nuclear utility and nuclear energy product
and service industries.'';
(2) by redesignating subsection (d) as subsection (e); and
(3) by inserting after subsection (c) the following:
``(d) Workforce Training.--
``(1) In general.--The Secretary of Labor, in cooperation
with the Secretary, shall promulgate regulations to implement a
program to provide grants to enhance workforce training for any
occupation in the workforce of the nuclear utility and nuclear
energy products and services industries for which a shortage is
identified or predicted in the report under subsection (b)(2).
``(2) Consultation.--In carrying out this subsection, the
Secretary of Labor shall consult with representatives of the
nuclear utility and nuclear energy products and services
industries, including organized labor organizations and
multiemployer associations that jointly sponsor apprenticeship
programs that provide training for skills needed in those
industries.
``(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary of Labor,
working in coordination with the Secretary and the Secretary of
Education, $20,000,000 for each of fiscal years 2009 through
2013 to carry out this subsection.''.
SEC. 643. INTERAGENCY WORKING GROUP TO PROMOTE DOMESTIC MANUFACTURING
BASE FOR NUCLEAR COMPONENTS AND EQUIPMENT.
(a) Purposes.--The purposes of this section are--
(1) to increase the competitiveness of the United States
nuclear energy products and services industries;
(2) to identify the stimulus or incentives necessary to
cause United States manufacturers of nuclear energy products to
expand manufacturing capacity;
(3) to facilitate the export of United States nuclear
energy products and services;
(4) to reduce the trade deficit of the United States
through the export of United States nuclear energy products and
services;
(5) to retain and create nuclear energy manufacturing and
related service jobs in the United States;
(6) to encourage new manufacturing technologies to address
industry challenges, such spent fuel recycling;
(7) to integrate the objectives described in paragraphs (1)
through (5), in a manner consistent with the interests of the
United States, into the foreign policy of the United States;
and
(8) to authorize funds for increasing United States
capacity to manufacture nuclear energy products and supply
nuclear energy services.
(b) Establishment.--
(1) In general.--There is established an interagency
working group (referred to in this section as the ``Working
Group'') that, in consultation with representative industry
organizations, manufacturers of nuclear energy products, and
other stakeholder groups, shall make recommendations to
coordinate the actions and programs of the Federal Government
in order to promote increasing domestic manufacturing capacity
and export of domestic nuclear energy products and services.
(2) Composition.--The Working Group shall be composed of--
(A) the Secretary of Energy (or a designee), who
shall serve as Chairperson of the Working Group; and
(B) representatives of--
(i) the Department of Energy;
(ii) the Department of Commerce;
(iii) the Department of Defense;
(iv) the Department of Treasury;
(v) the Department of State;
(vi) the Environmental Protection Agency;
(vii) the United States Agency for
International Development;
(viii) the Export-Import Bank of the United
States;
(ix) the Trade and Development Agency;
(x) the Small Business Administration;
(xi) the Office of the United States Trade
Representative; and
(xii) other Federal agencies, as determined
by the President.
(c) Duties of Working Group.--The Working Group shall--
(1) not later than 180 days after the date of enactment of
this Act, identify the actions necessary to promote the safe
development and application in foreign countries of nuclear
energy products and services--
(A) to increase electricity generation from nuclear
energy sources through development of new generation
facilities;
(B) to improve the efficiency, safety, and
reliability of existing nuclear generating facilities
through modifications; and
(C) enhance the safe treatment, handling, storage,
and disposal of used nuclear fuel;
(2) not later than 180 days after the date of enactment of
this Act, identify--
(A) mechanisms (including tax stimuli for
investment, loans and loan guarantees, and grants)
necessary for United States companies to increase--
(i) the capacity of the companies to
produce or provide nuclear energy products and
services; and
(ii) exports of nuclear energy products and
services; and
(B) administrative or legislative initiatives that
are necessary--
(i) to encourage United States companies to
increase the manufacturing capacity of the
companies for nuclear energy products;
(ii) to provide technical and financial
assistance and support to small and mid-sized
businesses to establish quality assurance
programs in accordance with domestic and
international nuclear quality assurance code
requirements;
(iii) to encourage, through financial
incentives, private sector capital investment
to expand manufacturing capacity; and
(iv) to provide technical assistance and
financial incentives to small and mid-sized
businesses to develop the workforce necessary
to increase manufacturing capacity and meet
domestic and international nuclear quality
assurance code requirements;
(3) not later than 270 days after the date of enactment of
this Act, submit to Congress a report that describes the
findings of the Working Group under paragraphs (1) and (2),
including recommendations for new legislative authority, as
necessary; and
(4) encourage the agencies represented by membership in the
Working Group--
(A) to provide technical training and education for
international development personnel and local users in
other countries;
(B) to provide financial and technical assistance
to nonprofit institutions that support the marketing
and export efforts of domestic companies that provide
nuclear energy products and services;
(C) to develop nuclear energy projects in foreign
countries;
(D) to provide technical assistance and training
materials to loan officers of the World Bank,
international lending institutions, commercial and
energy attaches at embassies of the United States, and
other appropriate personnel in order to provide
information about nuclear energy products and services
to foreign governments or other potential project
sponsors;
(E) to support, through financial incentives,
private sector efforts to commercialize and export
nuclear energy products and services in accordance with
the subsidy codes of the World Trade Organization; and
(F) to augment budgets for trade and development
programs in order to support pre-feasibility or
feasibility studies for projects that use nuclear
energy products and services.
(d) Personnel and Service Matters.--The Secretary and the heads of
agencies represented by membership in the Working Group shall detail
such personnel and furnish such services to the Working Group, with or
without reimbursement, as are necessary to carry out the functions of
the Working Group.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $20,000,000 for
each of fiscal years 2009 through 2013.
Subtitle E--Carbon Sequestrations
SEC. 651. TAX CREDIT FOR CARBON DIOXIDE SEQUESTRATION.
(a) In General.--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. 45R. CREDIT FOR CARBON DIOXIDE SEQUESTRATION.
``(a) General Rule.--For purposes of section 38, the carbon dioxide
sequestration credit for any taxable year is an amount equal to $15 per
metric ton of qualified carbon dioxide which is--
``(1) captured by the taxpayer at a qualified facility, and
``(2) used by the taxpayer as a tertiary injectant in a
qualified enhanced oil or natural gas recovery project.
``(b) Qualified Carbon Dioxide.--For purposes of this section--
``(1) In general.--The term `qualified carbon dioxide'
means carbon dioxide captured from an industrial source which--
``(A) would otherwise be released into the
atmosphere as industrial emission of greenhouse gas,
and
``(B) is measured at the source of capture and
verified at the point of disposal or injection.
``(2) Recycled carbon dioxide.--The term `qualified carbon
dioxide' includes the initial deposit of captured carbon
dioxide used as a tertiary injectant. Such term does not
include carbon dioxide that is recaptured, recycled, and re-
injected as part of the enhanced oil and natural gas recovery
process.
``(c) Qualified Facility.--For purposes of this section, the term
`qualified facility' means any industrial facility--
``(1) which is owned by the taxpayer,
``(2) at which carbon capture equipment is placed in
service, and
``(3) which captures not less than 500,000 metric tons of
carbon dioxide during the taxable year.
``(d) Special Rules and Other Definitions.--For purposes of this
section--
``(1) Only carbon dioxide captured within the united states
taken into account.--The credit under this section shall apply
only with respect to qualified carbon dioxide the capture of
which is within--
``(A) the United States (within the meaning of
section 638(1)), or
``(B) a possession of the United States (within the
meaning of section 638(2)).
``(2) Tertiary injectant.--The term `tertiary injectant'
has the same meaning as when used within section 193(b)(1).
``(3) Qualified enhanced oil or natural gas recovery
project.--The term `qualified enhanced oil or natural gas
recovery project' has the meaning given the term `qualified
enhanced oil recovery project' by section 43(c)(2), by
substituting `crude oil or natural gas' for `crude oil' in
subparagraph (A)(i) thereof.
``(4) Credit attributable to taxpayer.--Any credit under
this section shall be attributable to the person that captures
and physically or contractually ensures the use as a tertiary
injectant of the qualified carbon dioxide, except to the extent
provided in regulations prescribed by the Secretary.
``(5) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any qualified carbon
dioxide which ceases to be captured or used as a tertiary
injectant in a manner consistent with the requirements of this
section.
``(6) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2009, there shall be
substituted for each dollar amount contained in subsection (a)
an amount equal to the product of--
``(A) such dollar amount, multiplied by
``(B) the inflation adjustment factor for such
calendar year determined under section 43(b)(3)(B) for
such calendar year, determined by substituting `2008'
for `1990'.
``(e) Application of Section.--The credit under this section shall
apply with respect to qualified carbon dioxide before the end of the
calendar year in which the Secretary, in consultation with the
Administrator of the Environmental Protection Agency, certifies that
75,000,000 metric tons of qualified carbon dioxide have been captured
and disposed of or used as a tertiary injectant.''.
(b) Conforming Amendment.--Section 38(b) 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 (36), by
striking the period at the end of paragraph (37) and inserting ``,
plus'', and by adding at the end of following new paragraph:
``(38) the carbon dioxide sequestration credit determined
under section 45R(a).''.
(c) Clerical Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to other credits), as amended by this Act, is amended by
adding at the end the following new section:
``Sec. 45R. Credit for carbon dioxide sequestration.''.
(d) Effective Date.--The amendments made by 2 this section shall
apply carbon dioxide captured after the date of the enactment of this
Act.
TITLE VII--OFFSETS
SEC. 700. REFERENCE.
Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
Subtitle A--Ending Unneeded Tax Breaks
SEC. 701. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC
PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS THEREOF.
(a) Denial of Deduction for Major Integrated Oil Companies and
State-Owned Oil Companies for Income Attributable to Domestic
Production of Oil, Gas, or Primary Products Thereof.--
(1) 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 disqualified oil
company, the production, refining, processing,
transportation, or distribution of oil, gas, or
any primary product thereof.''.
(2) Disqualified oil company.--Section 199(c) of such Code
is amended by adding at the end the following new paragraph:
``(8) Disqualified oil company.--
``(B) In general.--The term `disqualified oil
company' means--
``(i) any major integrated oil company (as
defined in section 167(h)(5)(B)) during any
taxable year described in section 167(h)(5)(B),
or
``(ii) any controlled commercial entity (as
defined in section 892(a)(2)(B)) the commercial
activities of which during the taxable year
includes the production, refining, processing,
transportation, or distribution of oil, gas, or
any primary product thereof.
``(C) Primary product.--The term `primary product'
has the same meaning as when used in section
927(a)(2)(C), as in effect before its repeal.''.
(b) Limitation on Oil Related Qualified Production Activities
Income for Taxpayers Other Than Major Integrated Oil Companies and
State Owned Oil Companies.--
(1) In general.--Section 199(d) of the Internal Revenue
Code of 1986 is amended by redesignating paragraph (9) as
paragraph (10) and by inserting after paragraph (8) the
following new paragraph:
``(9) Special rule for taxpayers with oil related qualified
production activities income.--
``(A) In general.--If a taxpayer (other than a
disqualified oil company) has oil related qualified
production activities income for any taxable year
beginning after 2009, the amount of the deduction under
subsection (a) shall be reduced by 3 percent of the
least of--
``(i) the oil related qualified production
activities income of the taxpayer for the
taxable year;
``(ii) the qualified production activities
income of the taxpayer for the taxable year; or
``(iii) taxable income (determined without
regard to this section).
``(B) Oil related qualified production activities
income.--The term `oil related qualified production
activities income' means for any taxable year the
qualified production activities income which is
attributable to the production, refining, processing,
transportation, or distribution of oil, gas, or any
primary product thereof during such taxable year.''.
(2) Conforming amendment.--Section 199(d)(2) of such Code
(relating to application to individuals) is amended by striking
``subsection (a)(1)(B)'' and inserting ``subsections (a)(1)(B)
and (d)(9)(A)(iii)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 702. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL COMPANIES.
(a) In General.--Subparagraph (A) of section 167(h)(5) (relating to
special rule for major integrated oil companies) is amended by striking
``5-year'' and inserting ``7-year''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred after the date of the enactment of this
Act.
SEC. 703. CLARIFICATION OF DETERMINATION OF FOREIGN OIL AND GAS
EXTRACTION INCOME.
(a) In General.--Paragraph (1) of section 907(c) is amended by
redesignating subparagraph (B) as subparagraph (C), by striking ``or''
at the end of subparagraph (A), and by inserting after subparagraph (A)
the following new subparagraph:
``(B) so much of any transportation of such
minerals as occurs before the fair market value event,
or''.
(b) Fair Market Value Event.--Subsection (c) of section 907 is
amended by adding at the end the following new paragraph:
``(6) Fair market value event.--For purposes of this
section, the term `fair market value event' means, with respect
to any mineral, the first point in time at which such mineral--
``(A) has a fair market value which can be
determined on the basis of a transfer, which is an
arm's length transaction, of such mineral from the
taxpayer to a person who is not related (within the
meaning of section 482) to such taxpayer, or
``(B) is at a location at which the fair market
value is readily ascertainable by reason of
transactions among unrelated third parties with respect
to the same mineral (taking into account source,
location, quality, and chemical composition).''.
(c) Special Rule for Certain Petroleum Taxes.--Subsection (c) of
section 907, as amended by subsection (b), is amended to by adding at
the end the following new paragraph:
``(7) Oil and gas taxes.--In the case of any tax imposed by
a foreign country which is limited in its application to
taxpayers engaged in oil or gas activities--
``(A) the term `oil and gas extraction taxes' shall
include such tax,
``(B) the term `foreign oil and gas extraction
income' shall include any taxable income which is taken
into account in determining such tax (or is directly
attributable to the activity to which such tax
relates), and
``(C) the term `foreign oil related income' shall
not include any taxable income which is treated as
foreign oil and gas extraction income under
subparagraph (B).''.
(d) Conforming Amendments.--
(1) Subparagraph (C) of section 907(c)(1), as redesignated
by this section, is amended by inserting ``or used by the
taxpayer in the activity described in subparagraph (B)'' before
the period at the end.
(2) Subparagraph (B) of section 907(c)(2) is amended to
read as follows:
``(B) so much of the transportation of such
minerals or primary products as is not taken into
account under paragraph (1)(B),''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 704. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL CREDIT.
(a) Coproduction With Petroleum Feedstock.--
(1) In general.--Paragraph (3) of section 40A(f) (defining
renewable diesel) is amended by adding at the end the following
flush sentence:
``Such term does not include any fuel derived from coprocessing
biomass with a feedstock which is not biomass. For purposes of
this paragraph, the term `biomass' has the meaning given such
term by section 45K(c)(3).''.
(2) Conforming amendment.--Paragraph (3) of section 40A(f)
is amended by striking ``(as defined in section 45K(c)(3))''.
(b) Clarification of Eligibility for Alternative Fuel Credit.--
(1) In general.--Subparagraph (F) of section 6426(d)(2) is
amended by striking ``hydrocarbons'' and inserting ``fuel''.
(2) Conforming amendment.--Section 6426 is amended by
adding at the end the following new subsection:
``(h) Denial of Double Benefit.--No credit shall be determined
under subsection (d) or (e) with respect to any fuel with respect to
which credit may be determined under subsection (b) or (c) or under
section 40 or 40A.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after June 30, 2007.
(2) Clarification of eligibility for alternative fuel
credit.--The amendment made by subsection (b) shall take effect
as if included in section 11113 of the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for
Users.
SEC. 705. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO PROVIDE
AN INCENTIVE FOR UNITED STATES PRODUCTION.
(a) Biodiesel Fuels Credit.--Paragraph (5) of section 40A(d), as
added by subsection (c), is amended to read as follows:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section with
respect to any biodiesel unless--
``(A) such biodiesel is produced in the United
States for use as a fuel in the United States, and
``(B) the taxpayer obtains a certification (in such
form and manner as prescribed by the Secretary) from
the producer of the biodiesel which identifies the
product produced and the location of such production.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(b) Excise Tax Credit.--Paragraph (2) of section 6426(i), as added
by subsection (c), is amended to read as follows:
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel or
alternative fuel unless--
``(A) such biodiesel or alternative fuel is
produced in the United States for use as a fuel in the
United States, and
``(B) the taxpayer obtains a certification (in such
form and manner as prescribed by the Secretary) from
the producer of such biodiesel or alternative fuel
which identifies the product produced and the location
of such production.''.
(c) Provisions Clarifying Treatment of Fuels With No Nexus to the
United States.--
(1) Alcohol fuels credit.--Subsection (d) of section 40 is
amended by adding at the end the following new paragraph:
``(6) Limitation to alcohol with connection to the united
states.--No credit shall be determined under this section with
respect to any alcohol which is produced outside the United
States for use as a fuel outside the United States. For
purposes of this paragraph, the term `United States' includes
any possession of the United States.''.
(2) Biodiesel fuels credit.--Subsection (d) of section 40A
is amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section with
respect to any biodiesel which is produced outside the United
States for use as a fuel outside the United States. For
purposes of this paragraph, the term `United States' includes
any possession of the United States.''.
(3) Excise tax credit.--
(A) In general.--Section 6426, as amended by this
Act, is amended by adding at the end the following new
subsection:
``(i) Limitation to Fuels With Connection to the United States.--
``(1) Alcohol.--No credit shall be determined under this
section with respect to any alcohol which is produced outside
the United States for use as a fuel outside the United States.
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel or
alternative fuel which is produced outside the United States
for use as a fuel outside the United States.
For purposes of this subsection, the term `United States' includes any
possession of the United States.''.
(B) Conforming amendment.--Subsection (e) of
section 6427 is amended by redesignating paragraph (5)
as paragraph (6) and by inserting after paragraph (4)
the following new paragraph:
``(5) Limitation to fuels with connection to the united
states.--No amount shall be payable under paragraph (1) or (2)
with respect to any mixture or alternative fuel if credit is
not allowed with respect to such mixture or alternative fuel by
reason of section 6426(i).''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after the date of the enactment of this Act.
(2) Provisions clarifying treatment of fuels with no nexus
to the united states.--
(A) In general.--Except as otherwise provided in
this paragraph, the amendments made by subsection (c)
shall take effect as if included in section 301 of the
American Jobs Creation Act of 2004.
(B) Alternative fuel credits.--So much of the
amendments made by subsection (c) as relate to the
alternative fuel credit or the alternative fuel mixture
credit shall take effect as if included in section
11113 of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users.
(C) Renewable diesel.--So much of the amendments
made by subsection (c) as relate to renewable diesel
shall take effect as if included in section 1346 of the
Energy Policy Act of 2005.
Subtitle B--Additional Revenue Provisions
SEC. 711. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN TAX
INDIFFERENT PARTIES.
(a) In General.--Subpart B of part II of subchapter E of chapter 1
is amended by inserting after section 457 the following new section:
``SEC. 457A. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN TAX
INDIFFERENT PARTIES.
``(a) In General.--Any compensation which is deferred under a
nonqualified deferred compensation plan of a nonqualified entity shall
be includible in gross income when there is no substantial risk of
forfeiture of the rights to such compensation.
``(b) Nonqualified Entity.--For purposes of this section, the term
`nonqualified entity' means--
``(1) any foreign corporation unless substantially all of
its income is--
``(A) effectively connected with the conduct of a
trade or business in the United States, or
``(B) subject to a comprehensive foreign income
tax, and
``(2) any partnership unless substantially all of its
income is allocated to persons other than--
``(A) foreign persons with respect to whom such
income is not subject to a comprehensive foreign income
tax, and
``(B) organizations which are exempt from tax under
this title.
``(c) Determinability of Amounts of Compensation.--
``(1) In general.--If the amount of any compensation is not
determinable at the time that such compensation is otherwise
includible in gross income under subsection (a)--
``(A) such amount shall be so includible in gross
income when determinable, and
``(B) the tax imposed under this chapter for the
taxable year in which such compensation is includible
in gross income shall be increased by the sum of--
``(i) the amount of interest determined
under paragraph (2), and
``(ii) an amount equal to 20 percent of the
amount of such compensation.
``(2) Interest.--For purposes of paragraph (1)(B)(i), the
interest determined under this paragraph for any taxable year
is the amount of interest at the underpayment rate under
section 6621 plus 1 percentage point on the underpayments that
would have occurred had the deferred compensation been
includible in gross income for the taxable year in which first
deferred or, if later, the first taxable year in which such
deferred compensation is not subject to a substantial risk of
forfeiture.
``(d) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Substantial risk of forfeiture.--
``(A) In general.--The rights of a person to
compensation shall be treated as subject to a
substantial risk of forfeiture only if such person's
rights to such compensation are conditioned upon the
future performance of substantial services by any
individual.
``(B) Exception for compensation based on gain
recognized on an investment asset.--
``(i) In general.--To the extent provided
in regulations prescribed by the Secretary, if
compensation is determined solely by reference
to the amount of gain recognized on the
disposition of an investment asset, such
compensation shall be treated as subject to a
substantial risk of forfeiture until the date
of such disposition.
``(ii) Investment asset.--For purposes of
clause (i), the term `investment asset' means
any single asset (other than an investment fund
or similar entity)--
``(I) acquired directly by an
investment fund or similar entity,
``(II) with respect to which such
entity does not (nor does any person
related to such entity) participate in
the active management of such asset (or
if such asset is an interest in an
entity, in the active management of the
activities of such entity), and
``(III) substantially all of any
gain on the disposition of which (other
than such deferred compensation) is
allocated to investors in such entity.
``(iii) Coordination with special rule.--
Paragraph (3)(B) shall not apply to any
compensation to which clause (i) applies.
``(2) Comprehensive foreign income tax.--The term
`comprehensive foreign income tax' means, with respect to any
foreign person, the income tax of a foreign country if--
``(A) such person is eligible for the benefits of a
comprehensive income tax treaty between such foreign
country and the United States, or
``(B) such person demonstrates to the satisfaction
of the Secretary that such foreign country has a
comprehensive income tax.
``(3) Nonqualified deferred compensation plan.--
``(A) In general.--The term `nonqualified deferred
compensation plan' has the meaning given such term
under section 409A(d), except that such term shall
include any plan that provides a right to compensation
based on the appreciation in value of a specified
number of equity units of the service recipient.
``(B) Exception.--Compensation shall not be treated
as deferred for purposes of this section if the service
provider receives payment of such compensation not
later than 12 months after the end of the taxable year
of the service recipient during which the right to the
payment of such compensation is no longer subject to a
substantial risk of forfeiture.
``(4) Exception for certain compensation with respect to
effectively connected income.--In the case a foreign
corporation with income which is taxable under section 882,
this section shall not apply to compensation which, had such
compensation had been paid in cash on the date that such
compensation ceased to be subject to a substantial risk of
forfeiture, would have been deductible by such foreign
corporation against such income.
``(5) Application of rules.--Rules similar to the rules of
paragraphs (5) and (6) of section 409A(d) shall apply.
``(e) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section, including regulations disregarding a substantial risk of
forfeiture in cases where necessary to carry out the purposes of this
section.''.
(b) Conforming Amendment.--Section 26(b)(2) is amended by striking
``and'' at the end of subparagraph (U), by striking the period at the
end of subparagraph (V) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(W) section 457A(c)(1)(B) (relating to
determinability of amounts of compensation).''.
(c) Clerical Amendment.--The table of sections of subpart B of part
II of subchapter E of chapter 1 is amended by inserting after the item
relating to section 457 the following new item:
``Sec. 457A. Nonqualified deferred compensation from certain tax
indifferent parties.''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
amounts deferred which are attributable to services performed
after December 31, 2008.
(2) Application to existing deferrals.--In the case of any
amount deferred to which the amendments made by this section do
not apply solely by reason of the fact that the amount is
attributable to services performed before January 1, 2009, to
the extent such amount is not includible in gross income in a
taxable year beginning before 2018, such amounts shall be
includible in gross income in the later of--
(A) the last taxable year beginning before 2018, or
(B) the taxable year in which there is no
substantial risk of forfeiture of the rights to such
compensation (determined in the same manner as
determined for purposes of section 457A of the Internal
Revenue Code of 1986, as added by this section).
(3) Charitable contributions of existing deferrals
permitted.--
(A) In general.--Subsection (b) of section 170 of
the Internal Revenue Code of 1986 shall not apply to
(and subsections (b) and (d) of such section shall be
applied without regard to) so much of the taxpayer's
qualified contributions made during the taxpayer's last
taxable year beginning before 2018 as does not exceed
the taxpayer's qualified inclusion amount. For purposes
of subsection (b) of section 170 of such Code, the
taxpayer's contribution base for such last taxable year
shall be reduced by the amount of the taxpayer's
qualified contributions to which such subsection does
not apply by reason the preceding sentence.
(B) Qualified contributions.--For purposes of this
paragraph, the term ``qualified contributions'' means
the aggregate charitable contributions (as defined in
section 170(c) of such Code) paid in cash by the
taxpayer to organizations described in section
170(b)(1)(A) of such Code (other than any organization
described in section 509(a)(3) of such Code or any fund
or account described in section 4966(d)(2) of such
Code).
(C) Qualified inclusion amount.--For purposes of
this paragraph, the term ``qualified inclusion amount''
means the amount includible in the taxpayer's gross
income for the last taxable year beginning before 2018
by reason of paragraph (2).
(4) Accelerated payments.--No later than 120 days after the
date of the enactment of this Act, the Secretary shall issue
guidance providing a limited period of time during which a
nonqualified deferred compensation arrangement attributable to
services performed on or before December 31, 2008, may, without
violating the requirements of section 409A(a) of the Internal
Revenue Code of 1986, be amended to conform the date of
distribution to the date the amounts are required to be
included in income.
(5) Certain back-to-back arrangements.--If the taxpayer is
also a service recipient and maintains one or more nonqualified
deferred compensation arrangements for its service providers
under which any amount is attributable to services performed on
or before December 31, 2008, the guidance issued under
paragraph (4) shall permit such arrangements to be amended to
conform the dates of distribution under such arrangement to the
date amounts are required to be included in the income of such
taxpayer under this subsection.
(6) Accelerated payment not treated as material
modification.--Any amendment to a nonqualified deferred
compensation arrangement made pursuant to paragraph (4) or (5)
shall not be treated as a material modification of the
arrangement for purposes of section 409A of the Internal
Revenue Code of 1986.
SEC. 712. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF INTEREST.
Section 864(f) is amended--
(1) by striking ``December 31, 2010'' in paragraphs (5)(D)
and (6) and inserting ``December 31, 2018'', and
(2) by striking paragraph (7).
SEC. 713. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
The percentage under subparagraph (C) of section 401(1) of the Tax
Increase Prevention and Reconciliation Act of 2005 in effect on the
date of the enactment of this Act is increased by 37.75 percentage
points.
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