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<bill bill-stage="Introduced-in-House" dms-id="HEF3241A28BC94EB6A978A8F9AB41BF67" public-private="public" bill-type="olc"> 
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<dublinCore>
<dc:title>109 HR 4384 IH: Energy For Our Future Act</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2005-11-17</dc:date>
<dc:format>text/xml</dc:format>
<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<form> 
<distribution-code display="yes">I</distribution-code> 
<congress>109th CONGRESS</congress> <session>1st Session</session> 
<legis-num>H. R. 4384</legis-num> 
<current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber> 
<action> 
<action-date date="20051117">November 17, 2005</action-date> 
<action-desc><sponsor name-id="S001144">Mr. Shays</sponsor> (for himself and <cosponsor name-id="H000627">Mr. Hinchey</cosponsor>) introduced the following bill; which was referred to the <committee-name committee-id="HIF00">Committee on Energy and Commerce</committee-name>, and in addition to the Committees on <committee-name committee-id="HWM00">Ways and Means</committee-name>, <committee-name committee-id="HII00">Resources</committee-name>, and <committee-name committee-id="HPW00">Transportation and Infrastructure</committee-name>, 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</action-desc> 
</action> 
<legis-type>A BILL</legis-type> 
<official-title>To improve the energy efficiency of the United States.</official-title> 
</form> 
<legis-body id="H446ED7685BB24934AA25FAE79BB3E27D" style="OLC"> 
<section id="H78574F0CDBD6440100E2AD591678CB3" section-type="section-one"><enum>1.</enum><header>Short title; table of contents</header> 
<subsection id="H13E85BA00DE84C6A8760EE5332A4C2DF"><enum>(a)</enum><header>Short title</header><text display-inline="yes-display-inline">This Act may be cited as the <quote><short-title>Energy For Our Future Act</short-title></quote>.</text></subsection> 
<subsection id="HEE24A577439A41E892ED4BF4947868B6"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for this Act is as follows:</text> 
<toc container-level="legis-body-container" quoted-block="no-quoted-block" lowest-level="section" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"> 
<toc-entry idref="H78574F0CDBD6440100E2AD591678CB3" level="section">Sec. 1. Short title; table of contents</toc-entry> 
<toc-entry idref="H307688550003442F8585000064E75131" level="title">Title I—Save oil</toc-entry> 
<toc-entry idref="H9A9294B8960944E292649631C3700AC" level="section">Sec. 101. Help consumers buy more fuel efficient cars</toc-entry> 
<toc-entry idref="HB7C706983C014C509300909348FA35B5" level="section">Sec. 102. Energy efficient motor vehicles manufacturing credit</toc-entry> 
<toc-entry idref="H1A6DB44E713241F689BCCA69F59C3503" level="section">Sec. 103. Transit-oriented development corridors</toc-entry> 
<toc-entry idref="HD11CCF78DDFE4397886C3FCEAEA459F" level="section">Sec. 104. Automobile Fuel Economy Standards</toc-entry> 
<toc-entry idref="H2D40FFADFB6E46AE8FAE2F676491E27F" level="section">Sec. 105. Inclusion of sports utility vehicles in limitation on depreciation of certain luxury automobiles</toc-entry> 
<toc-entry idref="HA7386CEE3C0C4E05B0E24E20F3BEDAA8" level="section">Sec. 106. Fuel efficiency standards for replacement tires</toc-entry> 
<toc-entry idref="H86C80EBE4FCE46678B74DC5FE2047FA5" level="title">Title II—Reduce Heat and Electric Bills</toc-entry> 
<toc-entry idref="HACBF59DD2E0F4886988112D72B096EC1" level="section">Sec. 201. Weatherization assistance</toc-entry> 
<toc-entry idref="H80D9623D8FAB48979289F110A01700AF" level="section">Sec. 202. Energy Star programs</toc-entry> 
<toc-entry idref="HF9088B39102B466A8E9CD32600CF0062" level="section">Sec. 203. Renewable electricity production credit</toc-entry> 
<toc-entry idref="H46B0A20683A74CA1BD60ECF8AE48FD6B" level="section">Sec. 204. Efficiency resource standard</toc-entry> 
<toc-entry idref="HA8922AA98A364EDAA3E9261FCD985565" level="section">Sec. 205. Federal renewable portfolio standard</toc-entry> 
<toc-entry idref="H667A1728BB144092A1304CE727E88353" level="section">Sec. 206. Net metering</toc-entry> 
<toc-entry idref="H956111EFB19C4F3DA93B07776CBA2D3E" level="title">Title III—Save Tax Payers Money</toc-entry> 
<toc-entry idref="H62023DE11E914820BBA577D253BD8D4" level="section">Sec. 301. Repeal of certain provisions of the Energy Policy Act of 2005</toc-entry> 
<toc-entry idref="H51192F8BBB5540FC80DA21664319B2F8" level="section">Sec. 302. Repeal of certain tax provisions of the Energy Policy Act of 2005</toc-entry> 
<toc-entry idref="H8E5CC77688FC42A8985DCD293ECCECEA" level="title">Title IV—State and Local Authority</toc-entry> 
<toc-entry idref="H3190D0C4A142495991D98D095FC402C2" level="section">Sec. 401. State consumer product energy efficiency standards</toc-entry> 
<toc-entry idref="HC42D3F34E8B447A088323BE9CFD81407" level="section">Sec. 402. Appeals from consistency determinations under Coastal Zone Management Act of 1972</toc-entry> 
<toc-entry idref="HD74065157528404691B6AA66A8C3977" level="section">Sec. 403. Siting of interstate electric transmission facilities</toc-entry> 
<toc-entry idref="H0E0C106B152B4DD680E1EFE699E985ED" level="section">Sec. 404. New natural gas storage facilities</toc-entry> 
<toc-entry idref="H90B4211DB76A41B5A0C1AB5C5451ACE4" level="section">Sec. 405. Process coordination; hearings; rules of procedure</toc-entry> 
<toc-entry idref="H1C68685A7C6E41C29E8D6130B689BFD3" level="section">Sec. 406. Repeal of preemption of State law relating to automobile fuel economy standards</toc-entry> </toc></subsection></section> 
<title id="H307688550003442F8585000064E75131"><enum>I</enum><header>Save oil</header> 
<section id="H9A9294B8960944E292649631C3700AC" section-type="subsequent-section"><enum>101.</enum><header>Help consumers buy more fuel efficient cars</header> 
<subsection id="HCCF269DB49594F878EC73FB5B7C2CD67"><enum>(a)</enum><header>Repeal of limit on number of cars eligible for credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B</external-xref> of the Internal Revenue Code of 1986 (relating to alternative motor vehicle credit) is amended by striking subsection (f).</text></subsection> 
<subsection id="H8DB5D016F4C841F0919DAE6916962F60"><enum>(b)</enum><header>Emissions standards</header><text display-inline="yes-display-inline">Clause (iv) of section 30B(c)(3)(A) of such Code is amended to read as follows:</text> 
<quoted-block style="OLC" display-inline="no-display-inline" id="HCDB57953381F4657BAAFE76F1C2631B0"> 
<clause id="HBBE0040D67D8426694C41C9F00BEBF9"><enum>(iv)</enum><text display-inline="yes-display-inline">for 2004 and later model vehicles, has received a certificate that such vehicle meets or exceeds 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,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="HDFE929DC85BF467EAF0000DDA2A89B2F"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect as if included in the amendments made by section 1341(a) of the Energy Tax Incentives Act of 2005.</text></subsection></section> 
<section id="HB7C706983C014C509300909348FA35B5" display-inline="no-display-inline" section-type="subsequent-section"><enum>102.</enum><header>Energy efficient motor vehicles manufacturing credit</header> 
<subsection id="H952FC0970DFE4B5EA03FD1E111122800"><enum>(a)</enum><header>In General</header><text>Subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to foreign tax credit, etc.) is amended by adding at the end the following new section:</text> 
<quoted-block id="H7B02F6AB31424DDA840065F75B63C321"> 
<section id="H5ECCBEFFF8C545FD86BAB1761E4F297"><enum>30D.</enum><header>Energy efficient motor vehicles manufacturing credit</header> 
<subsection id="HEC7F1000A0424B91AFB6B2B41F6DA360"><enum>(a)</enum><header>Credit allowed</header><text>In the case of an eligible taxpayer, subject to a credit allocation under subsection (e) to such eligible taxpayer, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year to an amount equal to the sum of—</text> 
<paragraph id="H73812D82A80D41448BC8723645533964"><enum>(1)</enum><text>the initial investment credit determined under subsection (b) for the taxable year,</text></paragraph> 
<paragraph id="H38931DCD2AB44BCFB4BA5DCF00C67E6"><enum>(2)</enum><text>the fuel economy achievement credit determined under subsection (c) for such taxable year, and</text></paragraph> 
<paragraph id="H6452DCE991E749C8002900EFA4097FC3"><enum>(3)</enum><text>the eligible components R&amp;D credit determined under subsection (d) for such taxable year.</text></paragraph></subsection> 
<subsection id="H6A17ABD278EE4F1ABB4D0091116450D4"><enum>(b)</enum><header>Initial investment credit</header><text>For purposes of this section, the initial investment credit is equal to 20 percent of the qualified investment of an eligible taxpayer with respect to energy efficient motor vehicles during the taxable year beginning in 2006.</text></subsection> 
<subsection id="H5D9A548CD2A44A08AFA3B96007600C0"><enum>(c)</enum><header>Fuel economy achievement credit</header><text>For purposes of this section—</text> 
<paragraph id="HC8F9CBC5F7AB4335BEDDED9E63000039"><enum>(1)</enum><header>In general</header><text>In the case of an eligible taxpayer who meets the requirements of paragraph (2) for a model year ending in a taxable year specified in the table contained in paragraph (3), the fuel economy achievement credit for such taxable year is equal to 30 percent of the sum of—</text> 
<subparagraph id="HF2129BD1361E4A5694001C672CAE3E54"><enum>(A)</enum><text>at the election of the eligible taxpayer, such qualified investment for any preceding taxable year beginning after 2005 if such taxable year has not previously been taken into account under this subsection by such taxpayer, plus</text></subparagraph> 
<subparagraph id="H45EFCE719BAC446EBD4BE4E8FE297651"><enum>(B)</enum><text>at the election of the eligible taxpayer, the qualified investment with respect to energy efficient motor vehicles of the eligible taxpayer for the taxable year beginning in 2015.</text></subparagraph></paragraph> 
<paragraph id="H45BABD0CB5ED47EAB11879711700FDDF"><enum>(2)</enum><header>Demonstrated combined fleet economy improvements</header><text>The requirements of this paragraph are met for any model year ending in a taxable year if the eligible taxpayer can demonstrate to the satisfaction of the Secretary that the percentage by which the taxpayer's overall combined fuel economy standard for the taxpayer's vehicle fleet for such model year exceeds such standard for such taxpayer's 2005 model year as reported to the National Highway Traffic Safety Administration under <external-xref legal-doc="usc" parsable-cite="usc/49/32907">section 32907</external-xref> of title 49, United States Code, is not less than the percentage determined for such model year under paragraph (3).</text></paragraph> 
<paragraph id="H650210C52F7C4DD4AD9B54A6979D8589"><enum>(3)</enum><header>Percentage increase</header><text>The percentage determined under this paragraph for any taxable year is equal to—</text> 
<table align-to-level="section" blank-lines-before="1" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" subformat="S6211" table-type="subformat-2-Flush-Hang-Box-Right-Col-Fig"> 
<tgroup cols="2"><colspec coldef="txt" colname="col1" colsep="0" colwidth="275" min-data-value="0"/><colspec coldef="txt" colname="col2" colsep="0" colwidth="100" min-data-value="0"/><thead> 
<row><entry align="left" colname="I49" rowsep="0"><bold>Model year ending in</bold></entry><entry align="right" colname="I50" rowsep="0">Percentage</entry></row> 
<row><entry align="left" colname="I49" rowsep="0">taxable year</entry><entry align="right" colname="I50" rowsep="0"><bold>increase</bold></entry></row></thead> 
<tbody> 
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2008</entry><entry align="right" colname="I07" rowsep="0">5</entry></row> 
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2009</entry><entry align="right" colname="I07" rowsep="0">10</entry></row> 
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2010</entry><entry align="right" colname="I07" rowsep="0">15</entry></row> 
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2011</entry><entry align="right" colname="I07" rowsep="0">20</entry></row> 
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2012</entry><entry align="right" colname="I07" rowsep="0">27.5</entry></row> 
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="I07" rowsep="0">35</entry></row> 
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2014</entry><entry align="right" colname="I07" rowsep="0">42.5</entry></row> 
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2015</entry><entry align="right" colname="I07" rowsep="0">50.</entry></row></tbody></tgroup></table></paragraph></subsection> 
<subsection id="H60615B0C4193494890EADC41A4C2E5FD"><enum>(d)</enum><header>Eligible components R&amp;D credit</header><text>For purposes of this section, the eligible R&amp;D credit for any taxable year is equal to 30 percent of the research and development costs paid or incurred by an eligible taxpayer for such taxable year with respect to eligible components used or to be used in the manufacture of energy efficient motor vehicles.</text></subsection> 
<subsection id="H9B7A47C59F50489E84539E786F568EE2"><enum>(e)</enum><header>Limitation</header> 
<paragraph id="HBF2BBFF5685541DB83C9489BDC5B9B5E"><enum>(1)</enum><header>Initial investment credit and fuel economy achievement credit</header><text>Subject to paragraph (2), the aggregate amount of initial investment credits and fuel economy achievement credits allowed under subsection (a) for any taxable year beginning in a calendar year after 2005 shall be allocated by the Secretary among all eligible taxpayers—</text> 
<subparagraph id="H69EE01AC07D84D30A2216F5E4545B1D9"><enum>(A)</enum><text>based on each eligible taxpayer's percentage of the total qualified investment of all such taxpayers, and</text></subparagraph> 
<subparagraph id="H178940A4C1EF4EA3BC305EBF3C907147"><enum>(B)</enum><text>such that such aggregate amount does not exceed—</text> 
<clause id="H618693CD5674485E8F17F000BEFB00B4"><enum>(i)</enum><text>$1,000,000,000, plus</text></clause> 
<clause id="HB1B3F82755B347EF916B2703F9C74FE6"><enum>(ii)</enum><text>any amount of credit unallocated during any preceding calendar year.</text></clause></subparagraph></paragraph> 
<paragraph id="H25CB94CF36444BF38C31EDCC06EE7BD"><enum>(2)</enum><header>Eligible components R&amp;D credit</header><text>Of the dollar amount available for allocation under paragraph (1) for any taxable year, 10 percent of such amount shall be allocated in the same manner by the Secretary among all eligible taxpayers with respect to the eligible components R&amp;D credit.</text></paragraph></subsection> 
<subsection id="H12B6C0026B5F41EA812F4606EE75AEE5"><enum>(f)</enum><header>Qualified investment</header><text>For purposes of this section—</text> 
<paragraph id="HB4723B0BF0014F20B0F323000046C0D"><enum>(1)</enum><header>In general</header><text>The qualified investment for any taxable year is equal to the incremental costs incurred during such taxable year—</text> 
<subparagraph id="HEA2803C68DC34CEF87CC012809A341AC"><enum>(A)</enum><text>to re-equip or expand any manufacturing facility of the eligible taxpayer to produce energy efficient motor vehicles or to produce eligible components, and</text></subparagraph> 
<subparagraph id="H048107A575FE45BD007E2980E77EEB00"><enum>(B)</enum><text>for engineering integration of such vehicles and components as described in subsection (h).</text></subparagraph></paragraph> 
<paragraph id="H74666B83FB09436FB07EE48294D9E94F"><enum>(2)</enum><header>Attribution rules</header><text>In the event a facility of the eligible taxpayer produces both energy efficient motor vehicles and conventional motor vehicles, or eligible and non-eligible components, only the qualified investment attributable to production of energy efficient motor vehicles and the research and development costs attributable to eligible components shall be taken into account.</text></paragraph></subsection> 
<subsection id="HEE0C712A15BA4F30A6AF7227B5002500"><enum>(g)</enum><header>Energy efficient motor vehicles and eligible components</header><text>For purposes of this section—</text> 
<paragraph id="H7973D0B169C543AC886100C3D1708176"><enum>(1)</enum><header>Energy efficient motor vehicle</header><text>The term <term>energy efficient motor vehicle</term> means—</text> 
<subparagraph id="H3A787EB0DDF1411782BE4BEFE444336"><enum>(A)</enum><text>any new advanced lean burn technology motor vehicle (as defined in section 30B(c)(3) determined without regard to subparagraph (A)(iv)(II) thereof or the weight limitation under subparagraph (A)(iv)(I) thereof),</text></subparagraph> 
<subparagraph id="H1A1F9E8D0C744E618DCDEAC3FBDCE442"><enum>(B)</enum><text>any new qualified hybrid motor vehicle (as defined in section 30B(d)(3)(A) determined without regard to subparagraph (A)(ii)(II) thereof, the weight limitation under subparagraph (A)(ii)(I) thereof, and subparagraph (A)(iv) thereof), or</text></subparagraph> 
<subparagraph id="HB6C675AB18E840BCB72EB09ECBCC32B1"><enum>(C)</enum><text>any other new technology motor vehicle identified by the Secretary as offering a substantial increase in fuel economy.</text></subparagraph></paragraph> 
<paragraph id="H54A14012357C4BA1A18650FE1CB2B5C3"><enum>(2)</enum><header>Eligible components</header><text>The term <term>eligible component</term> means any component inherent to any energy efficient motor vehicle, including—</text> 
<subparagraph id="HE2CC46E4D31D41338947641381C75902"><enum>(A)</enum><text>with respect to any gasoline-electric new qualified hybrid motor vehicle—</text> 
<clause id="HF12D96F4256F4F399C09F1006F9BD710"><enum>(i)</enum><text>electric motor or generator,</text></clause> 
<clause id="HB0C9D209714D4043B7FBE0F64BC8D2F3"><enum>(ii)</enum><text>power split device,</text></clause> 
<clause id="H49AAD5B31E61447B8B9049E166CAF24D"><enum>(iii)</enum><text>power control unit,</text></clause> 
<clause id="H9AB6661A0A7A43B49978D7EA6658F0B"><enum>(iv)</enum><text>power controls,</text></clause> 
<clause id="H77DE2390EED3485600F697199F067C86"><enum>(v)</enum><text>integrated starter generator, or</text></clause> 
<clause id="H2C261EE35D9B4E14B6AC6C0240DAB920"><enum>(vi)</enum><text>battery,</text></clause></subparagraph> 
<subparagraph id="H95FD5D7C5F9D4734A63D5E729EAFDE5"><enum>(B)</enum><text>with respect to any new advanced lean burn technology motor vehicle—</text> 
<clause id="H19DF59A819A64D368CD400D56FF8307D"><enum>(i)</enum><text>diesel engine,</text></clause> 
<clause id="H8AC0AD21265D4B69A4757479A55CE080"><enum>(ii)</enum><text>turbocharger,</text></clause> 
<clause id="H9863DFA8CDBC48F58DFD1DC8CDA34322"><enum>(iii)</enum><text>fuel injection system, or</text></clause> 
<clause id="HF0CC39829D55499DBE6F05A6048B185C"><enum>(iv)</enum><text>after-treatment system, such as a particle filter or NOx absorber, and</text></clause></subparagraph> 
<subparagraph id="H10F0C4E6F7F64CA1B4994E5E004C97BB"><enum>(C)</enum><text>with respect to any energy efficient motor vehicle, any other component approved by the Secretary.</text></subparagraph></paragraph></subsection> 
<subsection id="HE75BAFB539564DF593F42FAF4B6038D"><enum>(h)</enum><header>Engineering integration costs</header><text>For purposes of subsection (f)(1)(B), costs for engineering integration are costs incurred prior to the market introduction of energy efficient vehicles for engineering tasks related to—</text> 
<paragraph id="H3AB358ECCFFA421B86CFF86633D1DA07"><enum>(1)</enum><text>incorporating eligible components into the design of energy efficient motor vehicles, and</text></paragraph> 
<paragraph id="H0EE5DDDBA1F046EBAD80EE171D443FDB"><enum>(2)</enum><text>designing new tooling and equipment for production facilities which produce eligible components or energy efficient motor vehicles.</text></paragraph></subsection> 
<subsection id="H0AA3383D8BE04F4A922240A08EE07450"><enum>(i)</enum><header>Eligible taxpayer</header><text>For purposes of this section, the term <term>eligible taxpayer</term> means, with respect to any taxable year, any taxpayer if more than 25 percent of the taxpayer's gross receipts for the taxable year is derived from the manufacture of motor vehicles or any component parts of such vehicles.</text></subsection> 
<subsection id="H6831855F57B54394AAF300778F6886D1"><enum>(j)</enum><header>Limitation based on amount of tax</header><text>The credit allowed under subsection (a) for the taxable year shall not exceed the excess of—</text> 
<paragraph id="H8AFEB4D85ED7483790D31D0603A9A0C3"><enum>(1)</enum><text>the sum of—</text> 
<subparagraph id="H1A88F7AE7C334338A4FB3CD437D4EDFF"><enum>(A)</enum><text>the regular tax liability (as defined in section 26(b)) for such taxable year, plus</text></subparagraph> 
<subparagraph id="H3923459263DF4CE800381D7859394D91"><enum>(B)</enum><text>the tax imposed by section 55 for such taxable year, over</text></subparagraph></paragraph> 
<paragraph id="HA8842BB5B06548D08F7B468163FFA52"><enum>(2)</enum><text>the sum of the credits allowable under subpart A and sections 27, 30, 30B, and 30C for the taxable year.</text></paragraph></subsection> 
<subsection id="H94BE34216E0B41E7B576CCF322D5DC62"><enum>(k)</enum><header>Reduction in basis</header><text>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.</text></subsection> 
<subsection id="H8D1AB4515D51465CB33EC83792E412C6"><enum>(l)</enum><header>No double benefit</header> 
<paragraph id="H77338C5F24014384806F99F669085946"><enum>(1)</enum><header>Coordination with other deductions and credits</header><text>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.</text></paragraph> 
<paragraph id="H11D3C24B3ED24CC4B351BB6884E2EA8"><enum>(2)</enum><header>Research and development costs</header> 
<subparagraph id="HC88D7968988642468204663072F0009B"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), any amount described in subsection (d) taken into account in determining the amount of the credit under subsection (a) for any taxable year shall not be taken into account for purposes of determining the credit under section 41 for such taxable year.</text></subparagraph> 
<subparagraph id="H97CA412C3E4C487B852511E7F3D28622"><enum>(B)</enum><header>Costs taken into account in determining base period research expenses</header><text>Any amounts described in subsection (d) taken into account in determining the amount of the credit under subsection (a) for any taxable year which are qualified research expenses (within the meaning of section 41(b)) shall be taken into account in determining base period research expenses for purposes of applying section 41 to subsequent taxable years.</text></subparagraph></paragraph></subsection> 
<subsection id="H6CA9D86BB671457AAA597B85B9A61540"><enum>(m)</enum><header>Business carryovers allowed</header><text>If the credit allowable under subsection (a) for a taxable year exceeds the limitation under subsection (j) for such taxable year, such excess (to the extent of the credit allowable with respect to property subject to the allowance for depreciation) shall be allowed as a credit carryback and carryforward under rules similar to the rules of section 39.</text></subsection> 
<subsection id="H67538A3EFE414E849200C0B5C7C2452"><enum>(n)</enum><header>Definitions and special rules</header><text>For purposes of this section—</text> 
<paragraph id="HCB179F1EDBA140239FCE50117DA8AD1B"><enum>(1)</enum><header>Definitions</header><text>Any term which is used in this section and in <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/329">chapter 329</external-xref> of title 49, United States Code, shall have the meaning given such term by such chapter.</text></paragraph> 
<paragraph id="HF5418137192C4B3CA456EA5512DF9F33"><enum>(2)</enum><header>Special rules</header><text>Rules similar to the rules of paragraphs (4) and (5) of section 179A(e) and paragraphs (1) and (2) of section 41(f) shall apply.</text></paragraph></subsection> 
<subsection id="H38DBDC79BBDA4A11B012EB289CAD992E"><enum>(o)</enum><header>Election not to take credit</header><text>No credit shall be allowed under subsection (a) for any property if the taxpayer elects not to have this section apply to such property.</text></subsection> 
<subsection id="HAB2B286C4F964A92928928C5F49CF9BF"><enum>(p)</enum><header>Regulations</header><text>The Secretary shall prescribe such regulations as necessary to carry out the provisions of this section.</text></subsection> 
<subsection id="H9C82CF3078F94DF9B78E4840421B69BF"><enum>(q)</enum><header>Termination</header><text>This section shall not apply to any qualified investment made after December 31, 2015.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="H795C3FBFDA704126B59620062EDCA7FE"><enum>(b)</enum><header>Conforming amendments</header> 
<paragraph id="HAFC8E2C429E44A8DBDCEE8E4E3BE29F8"><enum>(1)</enum><text>Section 1016(a) of such Code is amended by striking <quote>and</quote> at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> 
<quoted-block id="H14790D1E49574E069BB800EF2F41359D"> 
<paragraph id="HB6727121F0A14CCB9DF9D4DD9CF5981"><enum>(38)</enum><text>to the extent provided in section 30D(k).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> 
<paragraph id="HE3DE144E5C304B748FA476A077F2E42B"><enum>(2)</enum><text>Section 6501(m) of such Code is amended by inserting <quote>30D(o),</quote> after <quote>30C(e)(5),</quote>.</text></paragraph> 
<paragraph id="H34FE0E87639143C69CB6AF5BFABF7919"><enum>(3)</enum><text>The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 30C the following new item:</text> 
<quoted-block id="H54EDB36FF0364005B5E7DDAC71BB1D2" style="OLC"> 
<toc regeneration="no-regeneration"> 
<toc-entry level="section">Sec. 30D. Energy efficient motor vehicles manufacturing credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> 
<subsection id="H03E508B755DC41AE89095B25EE9FC49C"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to amounts incurred in taxable years beginning after December 31, 2005.</text></subsection></section> 
<section id="H1A6DB44E713241F689BCCA69F59C3503" section-type="subsequent-section" display-inline="no-display-inline"><enum>103.</enum><header>Transit-oriented development corridors</header> 
<subsection id="H7FD2D66F8E5C41D8A851B2DAB2FB781F"><enum>(a)</enum><header>Definitions</header><text>In this section, the following definitions apply:</text> 
<paragraph id="HC6FF6405A6DE45E5921E55FE7DEABC14"><enum>(1)</enum><header>Definitions from title 49, united states code</header><text>The terms <quote>capital project</quote>, <quote>local governmental authority</quote>, <quote>mass transportation</quote>, and <quote>urbanized area</quote> have the meanings such terms have under <external-xref legal-doc="usc" parsable-cite="usc/49/5302">section 5302</external-xref> of title 49, United States Code.</text></paragraph> 
<paragraph id="H2C20CBCBEAC947539E8811A09CB4E089"><enum>(2)</enum><header>State</header><text>The term <quote>State</quote> means a State of the United States, the District of Columbia, Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and the United States Virgin Islands.</text></paragraph> 
<paragraph id="HEA90B3E383FB414698B9C1BB707BE4A9"><enum>(3)</enum><header>Transit-oriented development corridor</header><text display-inline="yes-display-inline">The term <quote>transit-oriented development corridor</quote> means rights-of-way for fixed-guideway mass transportation facilities, including commercial development that is connected with any such facility physically and functionally.</text></paragraph></subsection> 
<subsection id="H0DB1746F4920423D863FB72619E7570"><enum>(b)</enum><header>In general</header><text display-inline="yes-display-inline">In consultation with State transportation departments and metropolitan planning organizations, the Secretary of Transportation shall designate, in urbanized areas, at least 20 transit-oriented development corridors by 2015 and 50 transit-oriented development corridors by 2025.</text></subsection> 
<subsection id="HB22BB9060C9B4B2080FDB040889D15E4"><enum>(c)</enum><header>Transit grants</header><text display-inline="yes-display-inline">The Secretary of Transportation shall award grants to a State or local governmental authority to construct or improve transit facilities, bicycle transportation facilities, and pedestrian walkways in a transit-oriented development corridor, including capital projects.</text></subsection> 
<subsection id="H5C1266CEDACC4A939FD592AB69AF8D00"><enum>(d)</enum><header>Research and development</header><text display-inline="yes-display-inline">In order to support effective deployment of grants and incentives under this section, the Secretary of Transportation shall establish a transit-oriented development corridors research and development program for the conduct of research on best practices and performance criteria for transit-oriented development corridors.</text></subsection> 
<subsection id="HF0C12766B11B45CCA6456CFF459FC1D0"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section $500,000,000 for each of fiscal years 2007 through 2016, of which $2,000,000 per fiscal year is authorized for the research and development program under subsection (d).</text></subsection> 
<subsection id="H6073D22E6B36459AAC866F7F40690926"><enum>(f)</enum><header>Labor standards</header><text>The Secretary of Transportation shall not provide a grant under this section unless the Secretary receives reasonable assurances from a State that laborers and mechanics employed by contractors or subcontractors in the performance of construction or modernization on the a transit project will be paid wages not less than those prevailing on similar construction or modernization in the locality as determined by the Secretary of Labor under the Act of March 3, 1931 (known as the Davis-Bacon Act) (<external-xref legal-doc="usc" parsable-cite="usc/40/276a">40 U.S.C. 276a et seq.</external-xref>).</text></subsection></section> 
<section id="HD11CCF78DDFE4397886C3FCEAEA459F" section-type="subsequent-section" display-inline="no-display-inline"><enum>104.</enum><header>Automobile Fuel Economy Standards</header> 
<subsection id="H50BFEAD71AD146199CC7F86FBC14965D"><enum>(a)</enum><header>Phased increases in fuel economy standards</header> 
<paragraph id="H06019357037D463C859E70E95E6593FF"><enum>(1)</enum><header>Passenger automobiles</header> 
<subparagraph id="H2B34FA18D2524CD3879B571E29ECFB9F"><enum>(A)</enum><header>Minimum standards</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32902">Section 32902(b)</external-xref> of title 49, United States Code, is amended to read as follows:</text> 
<quoted-block id="H42DEBB52597444F09242CBA95E100029" style="OLC"> 
<subsection id="H8D097C52FE37472AABDEFE72BECEFB15"><enum>(b)</enum><header>Passenger automobiles</header><text>Except as otherwise provided under this section, the average fuel economy standard for passenger automobiles manufactured by a manufacturer in a model year—</text> 
<paragraph id="H321E39E9533F4445A2BE33DE24D3DE96"><enum>(1)</enum><text>after model year 1984 and before model year 2008 shall be 25 miles per gallon;</text></paragraph> 
<paragraph id="H7710EAD9740D479C8BE48EF9B8706136"><enum>(2)</enum><text>after model year 2007 and before model year 2011 shall be 28 miles per gallon;</text></paragraph> 
<paragraph id="H342C8174A4984D1F8704DF14C9D07EE8"><enum>(3)</enum><text>after model year 2010 and before model year 2014 shall be 32 miles per gallon;</text></paragraph> 
<paragraph id="HC66EA8889C6F4C2AB7A2D5617400D73D"><enum>(4)</enum><text>after model year 2013 and before model year 2017 shall be 36 miles per gallon; and</text></paragraph> 
<paragraph id="HD0B64914A01140E58CE19C043BF38B4C"><enum>(5)</enum><text>after model year 2016 shall be 40 miles per gallon.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> 
<subparagraph id="H019481D1B2914C63AE14DBB1575ED8B1"><enum>(B)</enum><header>Higher standards set by regulation</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32902">Section 32902(c)</external-xref> of title 49, United States Code, is amended—</text> 
<clause id="HA65606BA306945E2BB52B94DDBD52BBA"><enum>(i)</enum><text>by striking paragraph (2); and</text></clause> 
<clause id="H96494426C2EC42D08D2953F2C9F4C497"><enum>(ii)</enum><text>in paragraph (1)—</text> 
<subclause id="HCF22318B53E9477E86A630BCF9B291DF"><enum>(I)</enum><text>by striking <quote>Subject to paragraph (2) of this subsection, the</quote> and inserting <quote>The</quote>;</text></subclause> 
<subclause id="HD9734F6BB8A642C493D6AC4F48993EA9"><enum>(II)</enum><text>by striking <quote>amending the standard</quote> and inserting <quote>increasing the standard otherwise applicable</quote>; and</text></subclause> 
<subclause id="H5ACF63B7D9B147CAB8363CDF700060C4"><enum>(III)</enum><text>by striking <quote>Section 553</quote> and inserting the following: <quote>(2) Section 553</quote>.</text></subclause></clause></subparagraph></paragraph></subsection> 
<subsection id="H5E698EC4A0A448AF99964F9B14AD404B"><enum>(b)</enum><header>Increased inclusiveness of definitions of automobile and passenger automobile</header> 
<paragraph id="H9783B326CC224988AE14FCC200530100"><enum>(1)</enum><header>Automobile</header> 
<subparagraph id="H6FF3F0434652477E8F48BED2B73F3663"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32901">Section 32901(a)(3)</external-xref> of title 49, United States Code, is amended—</text> 
<clause id="HA408A4325A014754BFBAF5916CF3C122"><enum>(i)</enum><text>by striking <quote>6,000 pounds</quote> each place it appears and inserting <quote>12,000 pounds</quote>; and</text></clause> 
<clause id="HA44B13F3DE5F4F9DBEB4E27E7F782D48"><enum>(ii)</enum><text>in subparagraph (B)—</text> 
<subclause id="HCAF4101E3E204814B437A2CDB0D3F100"><enum>(I)</enum><text>by striking <quote>10,000 pounds</quote> and inserting <quote>14,000 pounds</quote>; and</text></subclause> 
<subclause id="HC52F792A75F04EA898FC59CA32F00A2"><enum>(II)</enum><text>in clause (ii), by striking <quote>an average fuel economy standard</quote> and all that follows through <quote>conservation or</quote>.</text></subclause></clause></subparagraph> 
<subparagraph id="HC6F5DC8D7E6C4689B52C1BC7167C0032"><enum>(B)</enum><header>Special rule</header><text>Section 32908(a)(1) of such title is amended by striking <quote>8,500 pounds</quote> and inserting <quote>14,000 pounds</quote>.</text></subparagraph></paragraph> 
<paragraph id="H98B54EE368114998B3E9D6AE89A014"><enum>(2)</enum><header>Passenger automobile</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32901">Section 32901(a)(16)</external-xref> of title 49, United States Code, is amended to read as follows:</text> 
<quoted-block id="HB0EB0F11CC664D298DE281BC75D02859" style="OLC"> 
<paragraph id="HCEE3176F367C421A84DFAD50588927AF"><enum>(16)</enum><text><quote>passenger automobile</quote> means an automobile having a gross vehicle weight of 10,000 pounds or less that is designed to be used principally for the transportation of persons;</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> 
<paragraph id="H9F8D5E777EE742959DF66B59ED98133D"><enum>(3)</enum><header>Applicability</header><text>The amendments made by this section shall apply with respect to automobiles manufactured for model years beginning after the date of enactment of this Act.</text></paragraph></subsection> 
<subsection id="HA6BA5DDA4A5341A38BD83D14528B5917"><enum>(c)</enum><header>Civil penalties</header> 
<paragraph id="H6C79583823204FBB99C13B87DF77A0B5"><enum>(1)</enum><header>Increased penalty for violations of fuel economy standards</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32912">Section 32912(b)</external-xref> of title 49, United States Code, is amended—</text> 
<subparagraph id="HE26A826B0B8E4A1D8E32E5D3A23F2D57"><enum>(A)</enum><text>by inserting <quote>(1)</quote> before <quote>Except as provided</quote>;</text></subparagraph> 
<subparagraph id="H670556483D054BF9AACBDF0879D7593B"><enum>(B)</enum><text>by striking <quote>$5</quote> and inserting <quote>the dollar amount applicable under paragraph (2)</quote>;</text></subparagraph> 
<subparagraph id="H3030E037FAAD486ABBF147834EFFC9F4"><enum>(C)</enum><text>by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively; and</text></subparagraph> 
<subparagraph id="HE1D6C9FD0C6A465DA6BFE8B063D7DCD"><enum>(D)</enum><text>by adding at the end the following:</text> 
<quoted-block style="OLC" id="HF2A4004731274DDCBDDFCF5EF0982073" display-inline="no-display-inline"> 
<paragraph id="H7224D3F5DD9B4690A5EFE8D12042E1A6"><enum>(2)</enum> 
<subparagraph id="HE9F8123BD3704CC2B0B5A7EF3FA23CB" display-inline="yes-display-inline"><enum>(A)</enum><text>The dollar amount referred to in paragraph (1) is $10, as increased from time to time under subparagraph (B);</text></subparagraph> 
<subparagraph id="HFA8F1E3921DB4E5C98908C5B9488332C" indent="up1"><enum>(B)</enum><text>Effective on October 1 of each year, the dollar amount applicable under subparagraph (A) shall be increased by the percentage (rounded to the nearest <fraction>1/10</fraction> of 1 percent) by which the price index for July of such year exceeds the price index for July of the preceding year. The amount calculated under the preceding sentence shall be rounded to the nearest $0.10.</text></subparagraph> 
<subparagraph id="H3C4AEACC8660445282F0BDBBC1C2195F" indent="up1"><enum>(C)</enum><text>In this paragraph, the term <quote>price index</quote> means the Consumer Price Index for all-urban consumers published monthly by the Department of Labor.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> 
<paragraph id="H63A447ECAAA4417088474E9C337F12B7"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32912">Section 32912(c)(1)</external-xref> of title 49, United States Code, is amended—</text> 
<subparagraph id="HB5DD6EC2A5774BB1AC0000F6BEC4B54D"><enum>(A)</enum><text>by striking subparagraph (B); and</text></subparagraph> 
<subparagraph id="HF59A9B7F0A9942668EF1ECC881EF77A"><enum>(B)</enum><text>by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively.</text></subparagraph></paragraph> 
<paragraph id="H3778A630338747ACBFD081DC2D4E8E3D"><enum>(3)</enum><header>Applicability</header><text>The amendments made by subsection (a) shall apply with respect to automobiles manufactured for model years beginning after the date of enactment of this Act.</text></paragraph></subsection> </section> 
<section id="H2D40FFADFB6E46AE8FAE2F676491E27F" section-type="subsequent-section" display-inline="no-display-inline"><enum>105.</enum><header>Inclusion of sports utility vehicles in limitation on depreciation of certain luxury automobiles</header> 
<subsection id="H5C85F0D8BEB04960A3848B00384F3214"><enum>(a)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/280F">section 280F(d)(5)</external-xref> of the Internal Revenue Code of 1986 (defining passenger automobile) is amended by striking clause (ii) and all that follows and inserting the following new clause:</text> 
<quoted-block id="HF9DCB24AABD348E999D95CDCDA7B95EB"> 
<clause id="H8DA4C8A15AA7446BAB670002B50000E4"><enum>(ii)</enum><text></text> 
<subclause id="H38218695FF84414BBBFE296900881FBE" display-inline="yes-display-inline"><enum>(I)</enum><text>except as provided in subclause (II) or (III), which is rated at 6,000 pounds unloaded gross vehicle weight or less,</text></subclause> 
<subclause id="H07558B95D2CD4CCCB4FC8E008FFB2DD5" indent="up1"><enum>(II)</enum><text>in the case of a truck or van, which is rated at 6,000 pounds gross vehicle weight or less, or</text></subclause> 
<subclause id="H7F5139C6C9A843A78FD583634C8B249C" indent="up1"><enum>(III)</enum><text>in the case of a sports utility vehicle not described in subclause (I), which is rated at more than 6,000 pounds but not more than 14,000 pounds gross vehicle weight.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="HEA894CAE837E4A82B464487198755463"><enum>(b)</enum><header>Definition</header><text>Paragraph (5) of section 280F(d) of such Code is amended by adding at the end the following new subparagraph: </text> 
<quoted-block id="H0E67B86DD6384E0300356724FEFB0682"> 
<subparagraph id="HDB40AD9AA7704C5297AA944B88E036B6"><enum>(C)</enum><header>Sports utility vehicles</header><text>The term <quote>sports utility vehicle</quote> does not include any vehicle which—</text> 
<clause id="H32645696D57549F9BB9961B08083B8C2"><enum>(i)</enum><text display-inline="yes-display-inline">does not have the primary load carrying device or container attached,</text></clause> 
<clause id="H1E1F3BDCFF0946629BA9DC05D15F76CA"><enum>(ii)</enum><text>has a seating capacity of more than 12 individuals,</text></clause> 
<clause id="HCE62C511C314481ABC38C75280B3F42"><enum>(iii)</enum><text>is designed for more than 9 individuals in seating rearward of the driver’s seat,</text></clause> 
<clause id="H49F1BAE835504D16BFBE783828000265"><enum>(iv)</enum><text>is equipped with an open cargo area, or a covered box not readily accessible from the passenger compartment, of at least 72.0 inches in interior length, or</text></clause> 
<clause id="H4A95E36AF62B4C1FB6E1148342728445"><enum>(v)</enum><text>has an integral enclosure, fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver’s seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="HB0975003EE47409B84B4834944DA00F9"><enum>(c)</enum><header>Conforming amendment</header><text>Section 179(b) of such Code (relating to limitations) is amended by striking paragraph (6).</text></subsection> 
<subsection id="H19FEA54BED5C4B2CB10018E81ECCA492"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text></subsection></section> 
<section id="HA7386CEE3C0C4E05B0E24E20F3BEDAA8" display-inline="no-display-inline" section-type="subsequent-section"><enum>106.</enum><header>Fuel efficiency standards for replacement tires</header> 
<subsection id="HA39BED8DE4BF4450BD498ED5DD8CA50"><enum>(a)</enum><header>Standards for tires manufactured for interstate commerce</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/30123">Section 30123</external-xref> of title 49, United States Code, is amended—</text> 
<paragraph id="HA0D6FB6D96CA44D2B459C8AAB4D9B29"><enum>(1)</enum><text>in subsection (b), by inserting after the first sentence the following: <quote>The grading system shall include standards for rating the fuel efficiency of tires designed for use on passenger cars and light trucks.</quote>; and </text></paragraph> 
<paragraph id="HB7400236B3D34ACCA2F941124BCECB4E"><enum>(2)</enum><text>by adding at the end of the following:</text> 
<quoted-block style="USC" id="H15C719C4AFDF44D300A500C5DBE5D769" display-inline="no-display-inline"> 
<subsection id="HFEFACE0C60AA445884B2FC0000442336"><enum>(d)</enum><header>National tire fuel efficiency program</header> 
<paragraph id="H98CD950FA000410EBC02C8745B5BA310" display-inline="yes-display-inline"><enum>(1)</enum><text>The Secretary shall develop and carry out a national tire efficiency program for tires designed for use on passenger cars and light trucks.</text></paragraph> 
<paragraph id="H90B25E12911345A190A49BAD199281EE" indent="up1"><enum>(2)</enum><text>The program shall include the following:</text> 
<subparagraph id="H0B2B6D47C0DA4D7F889C9FAEDDB0C7F"><enum>(A)</enum><text>Policies and procedures for testing and labeling tires for fuel economy to enable tire buyers to make informed purchasing decisions about the fuel economy of tires.</text></subparagraph> 
<subparagraph id="HE2ACC2FC14F4404AB9BDB4B2FB061FE"><enum>(B)</enum><text>Policies and procedures to promote the purchase of energy-efficient replacement tires, including purchase incentives, website listings on the Internet, printed fuel economy guide booklets, and mandatory requirements for tire retailers to provide tire buyers with fuel-efficiency information on tires.</text></subparagraph> 
<subparagraph id="H841E0E9562D6414D9B62F24D4898EEDE"><enum>(C)</enum><text>Minimum fuel economy standards for tires, promulgated by the Secretary.</text></subparagraph></paragraph> 
<paragraph id="H4CFCF6BE3CED4BA8BBEDC434000088B4" indent="up1"><enum>(3)</enum><text>The minimum fuel economy standards for tires shall—</text> 
<subparagraph id="HDB1135B3A72141D98EB257965E2AA63"><enum>(A)</enum><text>ensure that, in conjunction with the requirements of paragraph (2)(B), the average fuel economy of replacement tires is equal to or better than the average fuel economy of tires sold as original equipment;</text></subparagraph> 
<subparagraph id="HBC07ED705C8D44D78DF886234D1CC48B"><enum>(B)</enum><text>secure the maximum technically feasible and cost-effective fuel savings; and</text></subparagraph> 
<subparagraph id="H7C7B70F25BF1465894DF007D6933812E"><enum>(C)</enum><text>not adversely affect tire safety;</text></subparagraph> 
<subparagraph id="HD78B97F57F08479EB000EEF456C600E4"><enum>(D)</enum><text>not adversely affect the average tire life of replacement tires;</text></subparagraph> 
<subparagraph id="H09AD0B89C35E443583CD84F3F09BA0BC"><enum>(E)</enum><text>incorporate the results from—</text> 
<clause id="HEAF2C693F62143AF9B7729536D9927F7"><enum>(i)</enum><text>laboratory testing; and</text></clause> 
<clause id="H777F63E64A324B06B95E1D0640D9F7F6"><enum>(ii)</enum><text>to the extent appropriate and available, on-road fleet testing programs conducted by manufacturers; and</text></clause></subparagraph> 
<subparagraph id="H95381FE88B184907A4E4F01027218682"><enum>(F)</enum><text>not adversely affect efforts to manage scrap tires.</text></subparagraph></paragraph> 
<paragraph id="HACA56C6693724AADA7F4A17D91FD35A7" indent="up1"><enum>(4)</enum><text>The policies, procedures, and standards developed under paragraph (2) shall apply to all tire types an models that are covered by the Uniform Tire Quality Grading Standards in <external-xref legal-doc="regulation" parsable-cite="cfr/49/575.104">section 575.104</external-xref> of title 49, Code of Federal Regulations (or any successor regulation).</text></paragraph> 
<paragraph id="H86CCC46492344863AE304BF4C8E7E8BA" indent="up1"><enum>(5)</enum><text>Not less than every 3 years, the Secretary shall review the minimum fuel economy standards in effect for tires under this subsection and revise the standards as necessary to ensure compliance with requirements under paragraph (3). The Secretary may not reduce the average fuel economy standards applicable to replacement tires. </text></paragraph> 
<paragraph id="HB6F318045169404EA51DE43BF76D738D" indent="up1"><enum>(6)</enum><text>Nothing in this section shall be construed to preempt any provisions of State law relating to higher fuel economy standards applicable to replacement tires designed for use on passenger cars and light trucks. Nothing in this chapter shall apply to—</text> 
<subparagraph id="H6F5A0AC34BDB4BFB9EA7C1C9C7920161"><enum>(A)</enum><text>a tire or group of tires with the same product identification number, plant, and year, for which the volume of tires produced or imported is less than 15,000 annually;</text></subparagraph> 
<subparagraph id="H0020568113DB427ABA5B66944400173C"><enum>(B)</enum><text>a deep tread, winter-type snow tire, space-saver tire, or temporary use spare tire;</text></subparagraph> 
<subparagraph id="H03B863EB7C6F405E8CD11899E78DBC5"><enum>(C)</enum><text>a tire with a normal rim diameter of 12 inches or less;</text></subparagraph> 
<subparagraph id="H71045257639D4DAE835C926018F179E3"><enum>(D)</enum><text>a motorcycle tire; or</text></subparagraph> 
<subparagraph id="HAFC3DF83DC734829A17B357F74F1DBD4"><enum>(E)</enum><text>a tire manufactured specifically for use in an off-road motorized recreational vehicle.</text></subparagraph></paragraph> 
<paragraph id="HF1546F10AFAF4E549E26E5F8363CA816" indent="up1"><enum>(7)</enum><text>In this subsection, the term <quote>fuel economy</quote>, with respect to tires, means the extent to which the tire contribute to the fuel economy of the motor vehicles on which the tire are mounted.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> 
<subsection id="H893B5B2ED3D54AC09380A476A67600AB"><enum>(b)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/30103">Section 30103(b)(1)</external-xref> of title 49, United States Code, is amended by striking <quote>When</quote> and inserting <quote>Except as provided in section 30123(d) of this title, when</quote>.</text></subsection> 
<subsection id="HE2EAA4AFCABF402E8F904FB04ECC4BD1"><enum>(c)</enum><header>Implementation</header><text>The Secretary of Transportation shall ensure that the national tire fuel efficiency program required under subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/49/30123">section 30123</external-xref> of title 49, United States Code, (as added by subsection (a)(2)), is administered so as to apply the policies, procedures, and standards developed under paragraph (2) of such subsection beginning not later than March 31, 2008.</text></subsection></section></title> 
<title id="H86C80EBE4FCE46678B74DC5FE2047FA5"><enum>II</enum><header>Reduce Heat and Electric Bills</header> 
<section id="HACBF59DD2E0F4886988112D72B096EC1"><enum>201.</enum><header>Weatherization assistance</header><text display-inline="no-display-inline">Section 422 of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6872">42 U.S.C. 6872</external-xref>) is amended—</text> 
<paragraph id="H0B64471B10134CD8B9089460C000128"><enum>(1)</enum><text>by striking <quote>$500,000,000</quote> and inserting <quote>$1,000,000,000</quote>;</text></paragraph> 
<paragraph id="HF4F8C1378D3F4672BED9156E9BC80040"><enum>(2)</enum><text>by striking <quote>$600,000,000</quote> and inserting <quote>$1,200,000,000</quote>; and</text></paragraph> 
<paragraph id="H93F7F859FC264A2682008CF2A9A8DE1C"><enum>(3)</enum><text>by striking <quote>$700,000,000</quote> and inserting <quote>$1,400,000,000</quote>.</text></paragraph></section> 
<section id="H80D9623D8FAB48979289F110A01700AF"><enum>202.</enum><header>Energy Star programs</header><text display-inline="no-display-inline">There are authorized to be appropriated for carrying out the Energy Star program under section 324A of the Energy Policy and Conservation Act—</text> 
<paragraph id="H62444AFF45584037BCFBB3C0E690715D"><enum>(1)</enum><text>to the Administrator of the Environmental Protection Agency $100,000,000 for each fiscal year; and</text></paragraph> 
<paragraph id="HAE2E0780D4AF44DDADB6D72394B10885"><enum>(2)</enum><text>to the Secretary of Energy $12,000,000 for each fiscal year.</text></paragraph></section> 
<section id="HF9088B39102B466A8E9CD32600CF0062"><enum>203.</enum><header>Renewable electricity production credit</header> 
<subsection id="H07F63774CE654996002503FCF2B572F7"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(d)</external-xref> of the Internal Revenue Code of 1986 (relating to qualified facilities) is amended—</text> 
<paragraph id="HFCD6B49989D2490DB4FEF48627ECED56"><enum>(1)</enum><text>by striking <quote>January 1, 2008</quote> each place it appears in paragraphs (1), (2), (3), (5), (6), and (7) and inserting <quote>January 1, 2012</quote>, and</text></paragraph> 
<paragraph id="H2977DAD8835848C8875373FFCA79543F"><enum>(2)</enum><text>by striking <quote>January 1, 2006</quote> in paragraph (4) and inserting <quote>January 1, 2012 (January 1, 2010, in the case of a facility using solar energy)</quote>.</text></paragraph></subsection> 
<subsection id="H395689A718B04F0D8424FAAEF690AA2B"><enum>(b)</enum><header>Repeal of municipal solid waste as qualified resource</header><text>Paragraph (1) of section 45(c) of such Code is amended by striking subparagraph (G).</text></subsection> 
<subsection id="H705EEB24CA8B4BEBBD00D77D003D9DFB"><enum>(c)</enum><header>Extension of credit for residential energy efficient property</header><text>Subsection (g) of section 25D of such Code (relating to termination) is amended by striking <quote>December 31, 2007</quote> and inserting <quote>December 31, 2012</quote>.</text></subsection></section> 
<section id="H46B0A20683A74CA1BD60ECF8AE48FD6B" section-type="subsequent-section" display-inline="no-display-inline"><enum>204.</enum><header>Efficiency resource standard</header> 
<subsection id="H8AA2C37DD7F74754A4AD030507B8712"><enum>(a)</enum><header>Amendment</header><text>Title VII of the Public Utility Regulatory Policies Act of 1978 is amended by adding the following new section at the end thereof:</text> 
<quoted-block style="OLC" id="HAB5E169A0ADD419883B67C181305F441" display-inline="no-display-inline"> 
<section id="H9E5184B59A0540BD95D08777EAD126C5"><enum>610.</enum><header>Efficiency resource standard for retail electricity and natural gas suppliers</header> 
<subsection id="H95143C43377F4150B47673C5625271CC"><enum>(a)</enum><header>Resource standard</header><text display-inline="yes-display-inline">Each retail electricity and natural gas supplier shall undertake energy savings measures in each calendar year from 2006 through 2015 that produce electricity demand savings and electricity and natural gas usage savings, as a percentage of the supplier’s base amount as shown in the following table. These targets represent savings realized from measures installed in the current year, plus cumulative savings realized from measures installed in all previous years. Each retail electricity and natural gas supplier subject to this subsection may use any electricity or natural gas savings measures available to it to achieve compliance with the performance standard established under this section, so long as the electricity and natural gas savings achieved by such measures can be calculated and verified pursuant to the rules promulgated under subsection (b). </text> 
<table table-type="3-General" align-to-level="subsection" frame="all" line-rules="all-gen" rule-weights="4.4.4.4.4.17" blank-lines-before="1" subformat="S6211"> 
<tgroup cols="3" ttitle-size="0" thead-tbody-ldg-size="10.9.10" grid-typeface="1.1"><colspec colname="col1" coldef="txt" min-data-value="120" colsep="1" colwidth="180"/><colspec colname="col2" coldef="txt" min-data-value="80" colsep="1" colwidth="120"/><colspec colname="col3" coldef="fig" min-data-value="12" colsep="1" colwidth="90"/><thead> 
<row><entry colname="col1" align="center" rowsep="1">Year</entry><entry colname="col2" align="center" rowsep="1">Reductions in peak electricity demand</entry><entry colname="col3" align="center" rowsep="1">Reductions in electricity and natural gas usage</entry></row></thead> 
<tbody> 
<row><entry colname="col1" align="left" rowsep="1" stub-definition="txt-ldr" stub-hierarchy="1" rowsep-modify="bold">2006</entry><entry colname="col2" align="left" rowsep="1" leader-modify="force-ldr" rowsep-modify="bold">0.25%</entry><entry colname="col3" align="right" rowsep="1" leader-modify="force-ldr" rowsep-modify="bold">0.25%</entry></row> 
<row><entry colname="col1" align="left" rowsep="1" stub-definition="txt-ldr" stub-hierarchy="1" rowsep-modify="bold">2007</entry><entry colname="col2" align="left" rowsep="1" leader-modify="force-ldr" rowsep-modify="bold">0.75%</entry><entry colname="col3" align="right" rowsep="1" leader-modify="force-ldr" rowsep-modify="bold">0.75%</entry></row> 
<row><entry colname="col1" align="left" rowsep="1" stub-definition="txt-ldr" stub-hierarchy="1" rowsep-modify="bold">2008</entry><entry colname="col2" align="left" rowsep="1" leader-modify="force-ldr" rowsep-modify="bold">1.75%</entry><entry colname="col3" align="right" rowsep="1" leader-modify="force-ldr" rowsep-modify="bold">1.5%</entry></row> 
<row><entry colname="col1" align="left" rowsep="1" stub-definition="txt-ldr" stub-hierarchy="1" rowsep-modify="bold">2009</entry><entry colname="col2" align="left" rowsep="1" leader-modify="force-ldr" rowsep-modify="bold">2.75%</entry><entry colname="col3" align="right" rowsep="1" leader-modify="force-ldr" rowsep-modify="bold">2.25%</entry></row> 
<row><entry colname="col1" align="left" rowsep="1" stub-definition="txt-ldr" stub-hierarchy="1" rowsep-modify="bold">2010 and thereafter</entry><entry colname="col2" align="left" rowsep="1" leader-modify="force-ldr" rowsep-modify="bold">3.75%</entry><entry colname="col3" align="right" rowsep="1" leader-modify="force-ldr" rowsep-modify="bold">3.0%</entry></row></tbody></tgroup></table></subsection> 
<subsection id="H8682BA7F5E55484A9E51BC41E93BEE8B"><enum>(b)</enum><header>Determination of compliance</header><text>The Secretary shall promulgate rules not later than one year after the enactment of this section regarding the means to be used to calculate and verify compliance with the performance standard established under subsection (a). Each retail electric and natural gas supplier subject to this section shall calculate its compliance with such standard in accordance with such rules. The rules shall include each of the following:</text> 
<paragraph id="H4FD316AD6BD64AD888127D87B6A5A654"><enum>(1)</enum><text>Procedures and standards for defining and measuring electricity savings achieved or obtained by electricity and natural gas suppliers (hereinafter in this section referred to as <quote>electricity and natural gas savings</quote>) from customer facility end-uses that occur in a calendar year from all measures in place in that year (including measures implemented in previous years that produce electricity and natural gas savings in such calendar year).</text></paragraph> 
<paragraph id="H611170001087495E984239F90744804D"><enum>(2)</enum><text>Procedures and standards for verification of electricity and natural gas savings reported by the retail electricity and natural gas supplier.</text></paragraph> 
<paragraph id="H0225632EB2964C74907B44DE009DC106"><enum>(3)</enum><text>Requirements for the contents and format of a bi-annual report from each retail electricity and natural gas supplier demonstrating its compliance with the requirements of subsection (a). The bi-annual report must include sufficient detail regarding the calculation of electricity and natural gas savings to enable the regulatory authority to verify and enforce compliance with the requirements of this section and the regulations under this section.</text></paragraph></subsection> 
<subsection id="H1B34CC74E4B84A1DB98DFCBAB04B1BC2"><enum>(c)</enum><header>Credit and trading system</header> 
<paragraph id="H374D50AF22074B6BBCCCE6A13E1B99C1" display-inline="yes-display-inline"><enum>(1)</enum><text>After consultation with the Administrator of the Environmental Protection Agency, the Secretary shall promulgate rules establishing a nationwide credit and credit trading system for electricity and natural gas savings. Under such rules the Secretary may certify as credits electricity or natural savings achieved by a retail electricity or natural gas supplier in a given year in excess of the quantity of electricity or natural gas savings required that calendar year for such supplier to meet the resource standard, as long as such savings comply with the rules established under subsection (b). The Secretary shall also certify as credits customer energy savings created by retail electric or natural gas suppliers or other entities, as long as such savings comply with the rules established under subsection (b). An electricity savings credit shall equal one kilowatt hour; a natural gas savings credit shall constitute one therm.</text></paragraph> 
<paragraph id="H20F8E03E90FE484DA42F9D6E7B14714C" indent="up1"><enum>(2)</enum><text>The Secretary shall not award credits to any retail electricity or natural gas supplier subject to State administration and enforcement under subsection (d) unless the Secretary has determined that such administration and enforcement are at least equivalent to administration and enforcement by the Secretary.</text></paragraph> 
<paragraph id="H2218BFDEC52E4E7DAF656165637E00BF" indent="up1"><enum>(3)</enum><text>An electricity or natural gas savings credit is not a property right. Nothing in this or any other provision of law shall be construed to limit the authority of the United States to terminate or limit such credits.</text></paragraph> 
<paragraph id="HDE7B7CBEA5FB46A3ABEEEC4FD6F66400" indent="up1"><enum>(4)</enum><text>A retail electric or natural gas supplier may sell such credit to any other entity, and other entities may sell such credits to retail electric or natural gas suppliers, in accordance with the accounting and verification rules established by the Secretary. Such credit may be used by a purchasing retail electricity or natural gas supplier for purposes of complying with the resource standards set forth in subsection (a).</text></paragraph> 
<paragraph id="HB9896D243A1F49EF904DFAA962A24632" indent="up1"><enum>(5)</enum><text>In order to receive an electricity or natural gas savings credit, the recipient of an electricity savings credit shall pay a fee, calculated by the Secretary, in an amount that is equal to the administrative costs of issuing, recording, monitoring the sale or exchange of, and tracking the credit or does not exceed five percent of the dollar value of the credit, whichever is lower. The Secretary shall retain the fee and use it to pay these administrative costs.</text></paragraph> 
<paragraph id="H3FCE9CCF25464AF3A409B147F9CA3A4" indent="up1"><enum>(6)</enum><text>A credit may be counted toward compliance with subsection (a) only once. A retail electricity or natural gas supplier may satisfy the requirements of subsection (a) through the accumulation of</text> 
<subparagraph id="H594DB2DF6B5B489B98B0BAB589306C6"><enum>(A)</enum><text>electricity or natural gas savings credits obtained by purchase or exchange under paragraph (7);</text></subparagraph> 
<subparagraph id="H33421A5A43954D70A6EA2CD0B1B8CCA5"><enum>(B)</enum><text>electricity or natural gas savings credits borrowed against future years under paragraph (8); or</text></subparagraph> 
<subparagraph id="H19FAC7A1932D4B08A127683BA375C41E"><enum>(C)</enum><text>any combination of credits under subparagraphs (A) and (B).</text></subparagraph></paragraph> 
<paragraph id="H75660AF4B51A48C299EB556BFE6E2565" indent="up1"><enum>(7)</enum><text>An electricity or natural gas savings credit may be sold or exchanged by the entity to whom issued or by any other entity that acquires the credit. An energy efficiency credit for any year that is not used to satisfy the minimum energy savings requirement of subsection (a) for that year may be carried forward for use within the next 4 years.</text></paragraph> 
<paragraph id="HC6FD515A81034B778BDD406FC19816F0" indent="up1"><enum>(8)</enum><text>During the first year covered by the standards, a retail electricity or natural gas supplier that has reason to believe that it will not have sufficient electricity savings credits to comply with subsection (a) may</text> 
<subparagraph id="H25E6208A35F24E20BADDF2B3687C73E2"><enum>(A)</enum><text>submit a plan to the Secretary demonstrating that the retail electricity or natural gas supplier will earn sufficient credits within the next two calendar years which, when taken into account, will enable the retail electricity or natural gas supplier to meet the requirements of subsection (a) for the calendar year involved; and</text></subparagraph> 
<subparagraph id="HD9DE63F6FF434C22008BBE25B5897559"><enum>(B)</enum><text>upon the approval of the plan by the Secretary, apply credits that the plan demonstrates will be earned within the next two calendar years to meet the requirements of subsection (a) for the calendar year involved.</text></subparagraph></paragraph> 
<paragraph id="H093D06EF1F4D42789CD1DBD94CD365EB" indent="up1"><enum>(9)</enum><text>Any retail electricity or natural gas supplier may elect to comply with the requirements of this section in any calendar year by paying a fee of 3 cents per kilowatt hour, and 30 cents per therm, for any portion of the electricity or natural gas savings it would be obligated to achieve in that year by not later than March 31 of the following year. Funds produced from such fees shall be deposited in an escrow account established by the Secretary, and shall be distributed to the States for their use in creating electricity or natural gas savings at customer facilities.</text></paragraph></subsection> 
<subsection id="H6A5D380AEB6C401C84DF19C4CE0046EC"><enum>(d)</enum><header>Enforcement of compliance</header> 
<paragraph id="H43CD989DC5CC4A9D813BE4F421BAE641" display-inline="yes-display-inline"><enum>(1)</enum><text>If the State regulatory authority with ratemaking jurisdiction over a State-regulated retail electricity or natural gas supplier notifies the Secretary that it will enforce compliance by such supplier with the performance standards under subsection (a) of this section, such State regulatory authority shall have the authority to administer and enforce such standards for such supplier under State law. If the State regulatory authority does not so notify the Secretary, the Secretary shall exercise such authority until receiving such notice from the State regulatory authority.</text></paragraph> 
<paragraph id="H0C5760B0F97146509EC3FEAC954C004C" indent="up1"><enum>(2)</enum><text>Not later than July 1 of the calendar years 2007, 2009. 2011, 2013, and 2015, each retail electricity and natural gas supplier shall submit the compliance report required under subsection (b) to:</text> 
<subparagraph id="H259C6ED0466142ED91EB7A7A019E610"><enum>(A)</enum><text>the appropriate State regulatory authority, if such authority has notified the Secretary under subsection (d), or</text></subparagraph> 
<subparagraph id="HEC89FF235E344932A743D03788DD034C"><enum>(B)</enum><text>the Secretary to determine and enforce compliance with the standards.</text></subparagraph></paragraph> 
<paragraph id="HD543345F0B9F442A8EF85D0914C1C8B5" indent="up1"><enum>(3)</enum><text>In the case of any retail electricity or natural gas supplier for which the Secretary is enforcing compliance with the standards under this section, if such supplier fails to comply with such standards for two consecutive calendar years, the Secretary shall determine the number of kilowatt hours of electricity savings, or therms of natural gas savings, by which the supplier has fallen short of the standards, and, by order, require such supplier, after notice and opportunity for hearing, to deposit in an escrow account to be designated by the Secretary an amount equal to 3.5 cents per kilowatt hour for each such kilowatt hour, and 35 cents per therm for each such therm. The holder of such escrow account shall annually distribute the total amount of such account to the States to be used by the States for the purpose of achieving customer electricity and natural gas savings. Any retail electricity or natural gas supplier required to make such a payment may, within 60 calendar days after the issuance of such order, bring an action in the United States Court of Appeals for the District of Columbia for judicial review of such order. Such court shall have jurisdiction to enter a judgment affirming, modifying, or setting aside such order or remanding such order in whole or in part to the Secretary.</text></paragraph></subsection> 
<subsection id="HBB091CF7C1514A0A8DDF26D5455605C7"><enum>(e)</enum><header>Information collection</header><text>The Secretary may collect the information necessary to verify and audit—</text> 
<paragraph id="HDFA70F220B0E4F5B9FE8D7818E38035"><enum>(1)</enum><text>the annual electric energy sales, natural gas sales, electricity savings, and natural gas savings of any entity applying for electricity or natural gas savings credits under this section,</text></paragraph> 
<paragraph id="HFB17B1A606A3477CA1DF95818588951B"><enum>(2)</enum><text>the validity of electricity or natural gas savings credits submitted by a retail electricity or natural gas supplier to the Secretary, and</text></paragraph> 
<paragraph id="HA18F8F5E2EB04F12B25000005F8772C4"><enum>(3)</enum><text>the quantity of electricity and natural gas sales of all retail electricity and natural gas suppliers.</text></paragraph></subsection> 
<subsection id="H0DA2954F6DA74C6BA743FD49F9B9EABA"><enum>(f)</enum><header>State law</header><text>Nothing in this section shall supersede or otherwise affect any State or local law requiring or otherwise relating to reductions in total annual electricity or natural gas energy consumption by or peak power consumption by electric consumers to the extent that such State or local law requires more stringent reductions than those required under this section. Any retail electricity or natural gas supplier that achieves reductions referred to in this section in accordance with State requirements shall be entitled to full credit under this section for such reductions to the extent that such reductions meet the requirements of this section and the regulations under this section (including verification and monitoring requirements).</text></subsection> 
<subsection id="H2F13B7F407B74B1381D133B0DA8961B3"><enum>(g)</enum><header>Definitions</header><text>For purposes of this section:</text> 
<paragraph id="H80DB5A305B2043BD9149B9C954254BEC"><enum>(1)</enum><text>The term <quote>retail electricity or natural supplier</quote> means a person that sells electric energy or natural gas to consumers and sold not less than 1,000,000 megawatt-hours of electric energy or 20,000,000 therms of natural gas to 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.</text></paragraph> 
<paragraph id="HCDE8E3DDBEA8410E84A9E9E50838EBC1"><enum>(2)</enum><text>The term <quote>retail electricity or natural gas supplier’s base amount</quote> means the total amount of electric energy or natural gas sold by the retail electricity or natural gas supplier to customers during the most recent calendar year for which information is available.</text></paragraph> 
<paragraph id="HC7E4FBD655784E629F9F06F6520010CE"><enum>(3)</enum><text>The term <quote>electricity savings</quote> means reductions in end-use electricity consumption in customer facilities relative to consumption at those same facilities in a base year as defined in rules issued by the Secretary, or in the case of new facilities, relative to reference facilities defined in rules issued by the Secretary, or distributed generation efficiency measures, including fuel cells and combined heat and power (CHP) technologies, that provide electricity only for onsite customer use.</text></paragraph> 
<paragraph id="HCB6CB5688FB842698F7CC6B0EF349480"><enum>(4)</enum><text>The term <quote>natural gas savings</quote> means reductions in end-use natural gas consumption in customer facilities relative to consumption at those same facilities in a base year as defined in rules issued by the Secretary, or in the case of new facilities, relative to reference facilities defined in rules issued by the Secretary.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="HDB9A65B207F94B9F99837BF6CF269E93"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for title VII of the Public Utility Regulatory Policies Act of 1978 is amended by adding the following new item at the end thereof:</text> 
<quoted-block style="OLC" id="HFB1836A3180A4749B16C353EA4466DC8" display-inline="no-display-inline"> 
<toc regeneration="no-regeneration"> 
<toc-entry level="section">Sec. 610. Efficiency resource standard for retail electricity and natural gas suppliers</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> 
<section section-type="subsequent-section" id="HA8922AA98A364EDAA3E9261FCD985565" display-inline="no-display-inline"><enum>205.</enum><header>Federal renewable portfolio standard</header> 
<subsection id="H20E8FB37294C4C5B98E236AC91C5F4B4"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Title VI of the Public Utility Regulatory Policies Act of 1978 is amended by adding at the end the following:</text> 
<quoted-block id="HC1EF85A5623D44C580F5842C00C07D3B"> 
<section id="HA685E092BA3844ADB2F9157047D87B2"><enum>611.</enum><header>Federal renewable portfolio standard</header> 
<subsection id="HDF2CFD045B3D47B9834F00FF374E8608"><enum>(a)</enum><header>Minimum renewable generation requirement</header><text>For each calendar year beginning in calendar year 2007, 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 (b).</text></subsection> 
<subsection id="HB4B1137E09D647BF97631465A8424932"><enum>(b)</enum><header>Required annual percentage</header><text>For calendar years 2007 through 2025, 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 (c), shall be the percentage specified in the following table:</text> 
<table table-type="subformat" line-rules="no-gen" blank-lines-before="1"> 
<tgroup cols="2"><thead> 
<row><entry></entry><entry colname="I50"><bold>Required annual</bold></entry></row> 
<row><entry colname="I49"><bold>Calendar Years</bold></entry><entry colname="I50"><bold>percentage</bold></entry></row></thead> 
<tbody> 
<row><entry colname="I26">2007 through 2008</entry><entry colname="I07">1 </entry></row> 
<row><entry colname="I26">2009 through 2010</entry><entry colname="I07">2.2</entry></row> 
<row><entry colname="I26">2010 through 2011</entry><entry colname="I07">3.4</entry></row> 
<row><entry colname="I26">2012 through 2013</entry><entry colname="I07">4.6</entry></row> 
<row><entry colname="I26">2014 through 2015</entry><entry colname="I07">5.8</entry></row> 
<row><entry colname="I26">2016 through 2017</entry><entry colname="I07">7.0 </entry></row> 
<row><entry colname="I26">2018 through 2019</entry><entry colname="I07">8.5 </entry></row> 
<row><entry colname="I26">2020 through 2021</entry><entry colname="I07">10.0 </entry></row> 
<row><entry colname="I26">2022 through 2023</entry><entry colname="I07">12.0 </entry></row> 
<row><entry colname="I26">2024 through 2025</entry><entry colname="I07">14.0</entry></row> 
<row><entry colname="I26">2026 through 2027</entry><entry colname="I07">16.0 </entry></row> 
<row><entry colname="I26">2028 through 2029</entry><entry colname="I07">18.0 </entry></row> 
<row><entry colname="I26">2030 through 2031</entry><entry colname="I07">20.0.</entry></row></tbody></tgroup></table></subsection> 
<subsection id="HA68F79D9C493483BB3B036FF7CE3A4F8"><enum>(c)</enum><header>Submission of credits</header> 
<paragraph display-inline="yes-display-inline" id="HD6BC07F3BAC94811BE4932AC35875728"><enum>(1)</enum><text>A retail electric supplier may satisfy the requirements of subsection (a) through the submission of renewable energy credits—</text> 
<subparagraph indent="up1" id="H5495A8FA85914DA59F4EF8A6B32BEEAE"><enum>(A)</enum><text>issued to the retail electric supplier under subsection (d);</text></subparagraph> 
<subparagraph indent="up1" id="H6CBD88BC5B49492AA5D8B906BF07ACB"><enum>(B)</enum><text>obtained by purchase or exchange under subsection (e); or</text></subparagraph> 
<subparagraph indent="up1" id="HAB3E960334254DE7BEF3722CC315CF11"><enum>(C)</enum><text>borrowed under subsection (f).</text></subparagraph></paragraph> 
<paragraph indent="up1" id="H716B6E1FA51F446693A7857281FAD0BD"><enum>(2)</enum><text>A renewable energy credit may be counted toward compliance with subsection (a) only once.</text></paragraph></subsection> 
<subsection id="H388A5A0AD9E547D0B664004B72F85D77"><enum>(d)</enum><header>Issuance of credits</header> 
<paragraph display-inline="yes-display-inline" id="HA98C4B57311D4E65AFCE8966431C9EFF"><enum>(1)</enum><text>The Secretary shall establish by rule, not later than 1 year after the date of enactment of this section, a program to issue and monitor the sale or exchange of, and track, renewable energy credits.</text></paragraph> 
<paragraph indent="up1" id="HB3F30DD2AC5846549C2E41AD1F28F365"><enum>(2)</enum><text>Under the program established by the Secretary, 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 application shall indicate—</text> 
<subparagraph id="H92FE917EC1D04A9BB900AEF24CB4C0C5"><enum>(A)</enum><text>the type of renewable energy resource used to produce the electricity;</text></subparagraph> 
<subparagraph id="H0C91EB54355544E08CFDD328A1E01E83"><enum>(B)</enum><text>the location where the electric energy was produced; and</text></subparagraph> 
<subparagraph id="H0ACF625C1A474031BA39226860BB83CB"><enum>(C)</enum><text>any other information the Secretary determines appropriate.</text></subparagraph></paragraph> 
<paragraph indent="up1" id="H6EB9290F1C914442807222003B536F29"><enum>(3)</enum> 
<subparagraph display-inline="yes-display-inline" id="HE86CA1EF75894A6DBEDF205500FD6124"><enum>(A)</enum><text>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.</text></subparagraph> 
<subparagraph indent="up1" id="H52E635DC20F14463B73B84CDEC2CFCBB"><enum>(B)</enum><text>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.</text></subparagraph> 
<subparagraph indent="up1" id="H9A9E542149E6461BAF77FD00978EA44B"><enum>(C)</enum><text>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.</text></subparagraph> 
<subparagraph indent="up1" id="H74101415409C420198E3AD54EEB5A1E1"><enum>(D)</enum><text>For electric energy resources produced from a generation offset, the Secretary shall issue two renewable energy credits for each kilowatt hour generated.</text></subparagraph></paragraph></subsection> 
<subsection id="H607B773EBD724347A53643CBBDD4CD24"><enum>(F)</enum><text>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.</text> 
<paragraph indent="up1" id="HC49778B6AF314422917F00BE3BA42C5"><enum>(4)</enum><text>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.</text></paragraph> 
<paragraph indent="up1" id="H4826053C2B4245EEA4869977B2C291A2"><enum>(5)</enum><text>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.</text></paragraph></subsection> 
<subsection id="H5B55B3B61119497000A062B8DD6E3B4E"><enum>(e)</enum><header>Credit trading</header><text>A renewable energy credit, may be sold or exchanged by the entity to whom issued or by any other entity who acquires the renewable energy credit. 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.</text></subsection> 
<subsection id="H5987A65537504FB9955402DA224F3C6F"><enum>(f)</enum><header>Credit borrowing</header><text>At any time before the end of calendar year 2006, a retail electric supplier that has reason to believe it will not have sufficient renewable energy credits to comply with subsection (a) may—</text> 
<paragraph id="H13EB813C411E42B8949C091040E98B04"><enum>(1)</enum><text>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 (a) for calendar year 2007 and the subsequent calendar years involved; and</text></paragraph> 
<paragraph id="HC6888022BA3C4DA7B345427C731CBB11"><enum>(2)</enum><text>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 (a) for each calendar year involved.</text></paragraph><continuation-text continuation-text-level="subsection">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 (a), by calendar year 2008 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 (h) for violation of the requirements of subsection (a) for each calendar year involved.</continuation-text></subsection> 
<subsection id="H51FD4510B4244CC6992C3100B07E56C3"><enum>(g)</enum><header>Credit cost cap</header><text>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.</text></subsection> 
<subsection id="H7E7CF760BD4441E6BE08B9C072DAF97"><enum>(h)</enum><header>Enforcement</header><text display-inline="yes-display-inline">The Secretary may bring an action in the appropriate United States district court to impose a civil penalty on a retail electric supplier that does not comply with subsection (a), unless the retail electric supplier was unable to comply with subsection (a) for reasons outside of the supplier's reasonable control (including weather-related damage, mechanical failure, lack of transmission capacity or availability, strikes, lockouts, actions of a governmental authority). A retail electric supplier who does not submit the required number of renewable energy credits under subsection (a) shall be subject to a civil penalty of not more than the greater of 3 cents or 200 percent of the average market value of credits for the compliance period for each renewable energy credit not submitted..</text></subsection> 
<subsection id="H6126CB3F17A04112A7E9EEDE7CB4608"><enum>(i)</enum><header>Information collection</header><text>The Secretary may collect the information necessary to verify and audit—</text> 
<paragraph id="H6B1736622B4447E1B388628B53BD83D4"><enum>(1)</enum><text>the annual electric energy generation and renewable energy generation of any entity applying for renewable energy credits under this section;</text></paragraph> 
<paragraph id="H5CBE8CA772054063BCF59B9746183FA4"><enum>(2)</enum><text>the validity of renewable energy credits submitted by a retail electric supplier to the Secretary; and</text></paragraph> 
<paragraph id="HEA18275FD75540CFB7E49269D005CED7"><enum>(3)</enum><text>the quantity of electricity sales of all retail electric suppliers.</text></paragraph></subsection> 
<subsection id="H17DAF18F70424662B330DBF657CDEFDA"><enum>(j)</enum><header>Environmental savings clause</header><text>Incremental hydropower shall be subject to all applicable environmental laws and licensing and regulatory requirements.</text></subsection> 
<subsection id="H72CFE8512E244ED1B130674C0777E604"><enum>(k)</enum><header>Existing programs</header><text>This section does not preclude a State from imposing additional renewable energy requirements in that State, including specifying eligible technologies under such State requirements.</text></subsection> 
<subsection id="HEB56BC11AB27489FA78F6225A4A0015"><enum>(l)</enum><header>Definitions</header><text>For purposes of this section:</text> 
<paragraph id="H225A11EB087C4EE696E3E2A58818E4D"><enum>(1)</enum><header>Biomass</header><text>The term <term>biomass</term> means any organic material that is available on a renewable or recurring basis, including dedicated energy crops, trees grown for energy production, wood waste and wood residues, plants (including aquatic plants, grasses, and agricultural crops), residues, fibers, animal wastes and other organic waste materials (but not including unsegregated municipal solid waste (garbage)), and fats and oils, except that with respect to material removed from National Forest System lands the term includes only organic material from—</text> 
<subparagraph id="H74047C128B9148089121E9A4AB84A3"><enum>(A)</enum><text>thinnings from trees that are less than 12 inches in diameter;</text></subparagraph> 
<subparagraph id="HDBFD9C61D4704C8493CB153B25DAFD39"><enum>(B)</enum><text>slash;</text></subparagraph> 
<subparagraph id="HA54D06C5FC494929B9D9151E2DFDBE99"><enum>(C)</enum><text>brush; and</text></subparagraph> 
<subparagraph id="HBC213914A41A4B9E973BCDD0F89D6C55"><enum>(D)</enum><text>mill residues.</text></subparagraph></paragraph> 
<paragraph id="H9CD417399B14496F888B1014C9BFEE4D"><enum>(2)</enum><header>Eligible facility</header><text>The term <term>eligible facility</term> means—</text> 
<subparagraph id="HAA12A7D02D284153935386CA8C750042"><enum>(A)</enum><text>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</text></subparagraph> 
<subparagraph id="H455CA4F8E4964FC19E4C1887EADDEEAD"><enum>(B)</enum><text>a repowering or cofiring increment that is placed in service on or after the date of enactment of this section at a facility for the generation of electric energy from a renewable energy resource that was placed in service before that date.</text></subparagraph></paragraph> 
<paragraph id="H8BF72803EF264CFE825FBE240749CB00"><enum>(3)</enum><header>Eligible renewable energy resource</header><text display-inline="yes-display-inline">The term <term>renewable energy resource</term> means solar, wind, ocean, or geothermal energy, biomass (excluding solid waste and paper that is commonly recycled), landfill gas, a generation offset, or incremental hydropower.</text></paragraph> 
<paragraph id="H90FAC510E75941D69B882F3B0511F4A2"><enum>(4)</enum><header>Generation offset</header><text display-inline="yes-display-inline">The term <term>generation offset</term> means reduced electricity usage metered at a site where a customer consumes energy from a renewable energy technology.</text></paragraph> 
<paragraph id="H3248E164D081442387328D33BEB75142"><enum>(5)</enum><header>Existing facility offset</header><text>The term <term>existing facility offset</term> 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.</text></paragraph> 
<paragraph id="HB994CEFBDFC04E2DBE3D7484B8EDD35"><enum>(6)</enum><header>Incremental hydropower</header><text>The term <term>incremental hydropower</term> 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.</text></paragraph> 
<paragraph id="H71ACC6EB3F9C41E89BBDCF7F2C581688"><enum>(7)</enum><header>Indian land</header><text>The term <term>Indian land</term> means—</text> 
<subparagraph id="H091B54D16BBC4816A9752CB6760100CC"><enum>(A)</enum><text>any land within the limits of any Indian reservation, pueblo, or rancheria;</text></subparagraph> 
<subparagraph id="HDCBD1D1FCE50456AB84476BBA2DAA184"><enum>(B)</enum><text>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;</text></subparagraph> 
<subparagraph id="H7DE730D0676E49E5B300ACD98392405"><enum>(C)</enum><text>any dependent Indian community; and</text></subparagraph> 
<subparagraph id="HD4B3AF9419EE48D6B279D7C888D981BA"><enum>(D)</enum><text>any land conveyed to any Alaska Native corporation under the Alaska Native Claims Settlement Act.</text></subparagraph></paragraph> 
<paragraph id="HD670309DF9E5475E8936B328F38CD461"><enum>(8)</enum><header>Indian tribe</header><text>The term <term>Indian tribe</term> 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 (<external-xref legal-doc="usc" parsable-cite="usc/43/1601">43 U.S.C. 1601 et seq.</external-xref>), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.</text></paragraph> 
<paragraph id="H2F9E61CC2669445AA81E57CAECBC8769"><enum>(9)</enum><header>Renewable energy</header><text>The term <term>renewable energy</term> means electric energy generated by a renewable energy resource.</text></paragraph> 
<paragraph id="H56B513BFB0B0425CB897001FD32FB867"><enum>(10)</enum><header>Renewable energy resource</header><text>The term <term>renewable energy resource</term> means solar, wind, ocean, geothermal energy, biomass (not inlcuding municipal solid wate), landfill gas, a generation offset, or incremental hydropower.</text></paragraph> 
<paragraph id="H8A03099D31764A4CB9FAF72549737235"><enum>(11)</enum><header>Repowering or cofiring increment</header><text>The term <term>repowering or cofiring increment</term> means—</text> 
<subparagraph id="H771BAA38C61D441690260356EA0097E4"><enum>(A)</enum><text>the additional generation from a modification that is placed in service on or after the date of enactment of this section 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</text></subparagraph> 
<subparagraph id="HE48A7549698D4E30B28300D75117FBC2"><enum>(B)</enum><text>the additional generation above the average generation in the 3 years preceding the date of enactment of this section 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.</text></subparagraph></paragraph> 
<paragraph id="HC6FB068F150B4EA6A5659EF76FFA1CA1"><enum>(12)</enum><header>Retail electric supplier</header><text>The term <term>retail electric supplier</term> 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.</text></paragraph> 
<paragraph id="H4061392BC6EE423E8C2BCD47FFDC4387"><enum>(13)</enum><header>Retail electric supplier’s base amount</header><text display-inline="yes-display-inline">The term <term>retail electric supplier’s base amount</term> means means the total amount of electric energy sold by the retail electric supplier to electric customers during the most recent calendar year for which information is available, excluding electric energy generated by—</text> 
<subparagraph id="HA5155079A42D4BD29C5920F160A5C237"><enum>(A)</enum><text display-inline="yes-display-inline"> an eligible renewable energy resource; or</text></subparagraph> 
<subparagraph id="H00498AB2D0B64CF397C23D3B6DE1541D"><enum>(B)</enum><text display-inline="yes-display-inline">a hydroelectric facility.</text></subparagraph></paragraph></subsection> 
<subsection id="HB7C7E7D30F2543BC8DAF4FCAB8F3B1A3"><enum>(m)</enum><header>Sunset</header><text>This section expires December 31, 2030.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="H65DE7FB04EAA4B85A09316BEF287DE0"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for such title is amended by adding the following new item at the end:</text> 
<quoted-block style="OLC" id="H1DD6CEFE3CDE4F63A9D952EC945115F6" display-inline="no-display-inline"> 
<toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="HC1EF85A5623D44C580F5842C00C07D3B" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"> 
<toc-entry idref="HA685E092BA3844ADB2F9157047D87B2" level="section">Sec. 611. Federal renewable portfolio standard</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> 
<section id="H667A1728BB144092A1304CE727E88353" section-type="subsequent-section" display-inline="no-display-inline"><enum>206.</enum><header>Net metering</header> 
<subsection id="H37F13031A9FB447A9116BF50579F2681"><enum>(a)</enum><header>Adoption of standard</header><text>Section 111(d)(11) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2621">16 U.S.C. 2621(d)</external-xref>) is amended to read as follows:</text> 
<quoted-block id="H7AECB6DD19F146C9A6AA40031344A4C6" style="OLC"> 
<paragraph id="H19D3E504115F434997F42237DE0405E5"><enum>(11)</enum><header>Net metering</header> 
<subparagraph id="H12FD90BA4B4D41B98B87C780ECFCDF01" display-inline="yes-display-inline"><enum>(A)</enum><text>Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves.</text></subparagraph> 
<subparagraph id="H01CC60A9EF1A4C3FB225BB46BFC71184" indent="up1"><enum>(B)</enum><text>For purposes of implementing this paragraph, any reference contained in this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a reference to the date of enactment of this paragraph.</text></subparagraph> 
<subparagraph id="HFC18309C8C0B490EAF11D500098339B" indent="up1"><enum>(C)</enum><text>Notwithstanding subsections (b) and (c) of section 112, each State regulatory authority may consider and make a determination concerning whether it is appropriate in the public interest to not implement the standard set out in subparagraph (A) not later than 1 year after the date of enactment of this paragraph.</text></subparagraph> 
<subparagraph id="HA0066625001D4CD2917773DCD7F387A" indent="up1"><enum>(D)</enum><text>Nothing in this section shall preclude a State from establishing additional incentives or to encourage on-site generating facilities and net metering in addition to that required under this section.</text></subparagraph> 
<subparagraph id="HBC327E2A7E124DCA9D16D52FAD15C7A8" indent="up1"><enum>(E)</enum><text>The Department shall report within 11 months of enactment and annually thereafter on the public benefit provided by adoption of net metering and interconnection standards, and the status of state adoption of such.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="H3CDA804F76124692ACCEBC65E06452C" indent="subsection"><enum>(b)</enum><header>Special rules for net metering</header><text>Section 115 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2625">16 U.S.C. 2625</external-xref>) is amended by adding at the end the following:</text> 
<quoted-block style="OLC" id="HE9D819846D904516901216B62D288C4C" display-inline="no-display-inline"> 
<subsection id="H4B8BDB77E90F433EAF482F558C1BA4AE"><enum>(i)</enum><header>Net metering</header><text>In undertaking the consideration and making the determination under section 111 with respect to the standard concerning net metering established by section 111(d)(11), the term net metering service shall mean a service provided in accordance with the following standards:</text></subsection> 
<paragraph id="H1E9F715C096B4EB7B1CB35E26FC0CF85"><enum>(1)</enum><text>An electric utility—</text> 
<subparagraph id="H63824E02056942F081F87F9F86BE2DC"><enum>(A)</enum><text>shall charge the owner or operator of an on-site generating facility rates and charges that are identical to those that would be charged other electric consumers of the electric utility in the same rate class; and</text></subparagraph> 
<subparagraph id="HE4C2934A3274450A9E8F5FE095457C87"><enum>(B)</enum><text>shall not charge the owner or operator of an on-site generating facility any additional standby, capacity, interconnection, or other rate or charge.</text></subparagraph></paragraph> 
<paragraph id="H4B32EF6BAE134A8D8B51E26BF71C54F4"><enum>(2)</enum><text>An electric utility that sells electric energy to the owner or operator of an on-site generating facility shall measure the quantity of electric energy produced by the on-site facility and the quantity of electric energy consumed by the owner or operator of an on-site generating facility during a billing period with a single bi-directional meter or otherwise in accordance with reasonable metering practices.</text></paragraph> 
<paragraph id="HFDCAF90186A74EF2AAD4F92200232FA5"><enum>(3)</enum><text>If the quantity of electric energy sold by the electric utility to an on-site generating facility exceeds the quantity of electric energy supplied by the on-site generating facility to the electric utility during the billing period, the electric utility may bill the owner or operator for the net quantity of electric energy sold, in accordance with reasonable metering practices.</text></paragraph> 
<paragraph id="HD9DE11016062494D9CD7A348DF4F191D"><enum>(4)</enum><text display-inline="yes-display-inline">If the quantity of electric energy supplied by the on-site generating facility to the electric utility exceeds the quantity of electric energy sold by the electric utility to the on-site generating facility during the billing period—</text> 
<subparagraph id="H00BEF770C4A849C29EA9736B1982BDA5"><enum>(A)</enum><text>the electric utility may bill the owner or operator of the on-site generating facility for the appropriate charges for the billing period in accordance with paragraph; and</text></subparagraph> 
<subparagraph id="H13EA7665C386486F9260A500061547A8"><enum>(B)</enum><text>the owner or operator of the on-site generating facility shall be credited for the excess kilowatt-hours generated during the billing period, with the kilowatt-hour credit appearing on the bill for the following billing period.</text></subparagraph></paragraph> 
<paragraph id="H0FD1E95BC7A34A66AB053E536EA49E21"><enum>(5)</enum><text>An eligible on-site generating facility and net metering system used by an electric consumer shall meet all applicable safety, performance, reliability, and interconnection standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories.</text></paragraph> 
<paragraph id="HA58299D7A01F4ECB96384BB25CDD64C7"><enum>(6)</enum><text>The Commission, after consultation with State regulatory authorities and unregulated electric utilities and after notice and opportunity for comment, may adopt, by rule, additional control and testing and interconnection requirements for on-site generating facilities and net metering systems that the Commission determines are necessary to protect public safety and system reliability.</text></paragraph> 
<paragraph id="H2D8AE1D778164C059BD336527B95F99D"><enum>(7)</enum><text>For purposes of this subsection:</text> 
<subparagraph id="H9446B156D9494659850009A870907CD3"><enum>(A)</enum><text>The term <quote>eligible on-site generating facility</quote> means a facility on the site of a residential electric consumer with a maximum generating capacity of 10 kilowatts or less that is fueled by solar energy, wind energy, or fuel cells; or a facility on the site of a commercial electric consumer with a maximum generating capacity of 500 1000 kilowatts or less that is fueled solely by a renewable energy resource, landfill gas, or a high efficiency system.</text></subparagraph> 
<subparagraph id="HAE773F0FD4DE40D18B23E1811B14F3B6"><enum>(B)</enum><text>The term <quote>renewable energy resource</quote> means solar, wind, biomass, micro-freeflow hydro, or geothermal energy.</text></subparagraph> 
<subparagraph id="HE86200D8C4B8481080DEFFFAB8867816"><enum>(C)</enum><text>The term <quote>high efficiency system</quote> means fuel cells or combined heat and power.</text></subparagraph> 
<subparagraph id="H536AB0FBF6674731B61763E63507E6CD"><enum>(D)</enum><text>The term <quote>net metering service</quote> means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section></title> 
<title id="H956111EFB19C4F3DA93B07776CBA2D3E"><enum>III</enum><header>Save Tax Payers Money</header> 
<section id="H62023DE11E914820BBA577D253BD8D4"><enum>301.</enum><header>Repeal of certain provisions of the Energy Policy Act of 2005</header> 
<subsection id="H46309A503A824729995BCDE9B9854717"><enum>(a)</enum><header>Repeals</header><text>The following provisions of the Energy Policy Act of 2005, and the items relating thereto in the table of contents of that Act, are repealed:</text> 
<paragraph id="HE4697226D7394303BAC5AB73CF1C23C1"><enum>(1)</enum><text>Section 342 (relating to program on oil and gas royalties in-kind).</text></paragraph> 
<paragraph id="HFB5D21922AC442AB9CD0781438006B23"><enum>(2)</enum><text>Section 343 (relating to marginal property production incentives).</text></paragraph> 
<paragraph id="H42E58A4FFCFB4D848C1E5627C79533C3"><enum>(3)</enum><text>Section 344 (relating to incentives for natural gas production from deep wells in the shallow waters of the Gulf of Mexico).</text></paragraph> 
<paragraph id="H5E40CE16540648A9AAFC71A0CFD8BB49"><enum>(4)</enum><text>Section 345 (relating to royalty relief for deep water production).</text></paragraph> 
<paragraph id="HDED1D1AF57164E4FA154DCDF8D52D00"><enum>(5)</enum><text>Section 357 (relating to comprehensive inventory of OCS oil and natural gas resources).</text></paragraph> 
<paragraph id="HE886DBE7C53E43BEB6CF973600683296"><enum>(6)</enum><text>Subtitle J of title IX (relating to ultra-deepwater and unconventional natural gas and other petroleum resources).</text></paragraph></subsection> 
<subsection id="H1A0DC6E266374D3DBBBF3786A4B472C1" display-inline="no-display-inline"><enum>(b)</enum><header>Repeal of Alaska offshore royalty suspension</header><text>Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(3)(B)</external-xref>) is amended by striking <quote>and in the Planning Areas offshore Alaska</quote>.</text></subsection></section> 
<section id="H51192F8BBB5540FC80DA21664319B2F8" display-inline="no-display-inline" section-type="subsequent-section"><enum>302.</enum><header>Repeal of certain tax provisions of the Energy Policy Act of 2005</header> 
<subsection id="H118A8C12848C443CBFC846DEB8E9A173"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">The following provisions, and amendments made by such provisions, of the Energy Policy Act of 2005 are hereby repealed:</text> 
<paragraph id="HA146092613384DDC87098B0133D6959B"><enum>(1)</enum><text display-inline="yes-display-inline">Section 1306 (relating to credit for production from advanced nuclear power facilities).</text></paragraph> 
<paragraph id="H1B296B7847D6457680BC9EDF2695D397"><enum>(2)</enum><text display-inline="yes-display-inline">Section 1307 (relating to credit for investment in clean coal facilities).</text></paragraph> 
<paragraph id="H86002EED292949A49E9C2840C959F52E"><enum>(3)</enum><text display-inline="yes-display-inline">Section 1308 (relating to electric transmission property treated as 15-year property).</text></paragraph> 
<paragraph id="H545B9789726D433E99F6BEF4D1E76AF"><enum>(4)</enum><text>Section 1309 (relating to expansion of amortization for certain atmospheric pollution control facilities).</text></paragraph> 
<paragraph id="H0E789044D0644F8287687057A51B48DB"><enum>(5)</enum><text display-inline="yes-display-inline">Section 1310 (relating to modifications to special rules for nuclear decommissioning costs).</text></paragraph> 
<paragraph id="HE929327B50214081A5F977F348027BA"><enum>(6)</enum><text display-inline="yes-display-inline">Section 1321 (relating to extension of credit for producing fuel from nonconventional source (coke or coke gas).</text></paragraph> 
<paragraph id="HAE5986C470C54CD2AAD35BDCD3CC838C"><enum>(7)</enum><text display-inline="yes-display-inline">Section 1323 (relating to temporary expensing for equipment used in refining of liquid fuels).</text></paragraph> 
<paragraph id="H1553D32A1E7248569370679F45008F22"><enum>(8)</enum><text display-inline="yes-display-inline">Section 1325 (relating to natural gas distribution lines treated as 15-year property).</text></paragraph> 
<paragraph id="H2FAA6061BAE34F2B9D82B52E8100CC03"><enum>(9)</enum><text display-inline="yes-display-inline">Section 1326 (relating to natural gas gathering lines treated as 7-year property).</text></paragraph> 
<paragraph id="HDEA55BEFCCB145BEB8D6B7E2C4C1BB3"><enum>(10)</enum><text display-inline="yes-display-inline">Section 1328 (relating to determination of small refiner exception to oil depletion deduction).</text></paragraph> 
<paragraph id="HEFB34DCEFC88438CA96CF1B58BD71C20"><enum>(11)</enum><text display-inline="yes-display-inline">Section 1329 (relating to amortization of geological and geophysical expenditures).</text></paragraph></subsection> 
<subsection id="HD034522A370F41758EEB7D3B1047B84F"><enum>(b)</enum><header>Administration of Internal Revenue Code of 1986</header><text>The Internal Revenue Code of 1986 shall be applied and administered as if the provisions, and amendments, specified in subsection (a) had never been enacted.</text></subsection> </section></title> 
<title id="H8E5CC77688FC42A8985DCD293ECCECEA"><enum>IV</enum><header>State and Local Authority</header> 
<section id="H3190D0C4A142495991D98D095FC402C2"><enum>401.</enum><header>State consumer product energy efficiency standards</header><text display-inline="no-display-inline">Section 327 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6297">42 U.S.C. 6297</external-xref>) is amended by adding at the end the following new subsection:</text> 
<quoted-block id="HFF1661BDA6BE457FB74F0772A0B6FAD1" style="OLC"> 
<subsection id="H661FBDBD616D4A4D96796BE7D36EC90"><enum>(h)</enum><header>Limitation on Preemption</header><text>Subsections (a), (b), and (c) shall not apply with respect to State regulation of energy consumption or water use of any covered product during any period of time—</text> 
<paragraph id="H8B7F86F707EB49319D2FAF7CB504B98"><enum>(1)</enum><text display-inline="yes-display-inline">after the expiration of 3 years after the required date of issuance of a final rule determining whether Federal standards for such consumption or use will be established or revised, if such rule has not been issued; and</text></paragraph> 
<paragraph id="H1B4BA497978243C4BAD31C6CB314828D"><enum>(2)</enum><text>before the date on which such rule is issued.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> 
<section id="HC42D3F34E8B447A088323BE9CFD81407" section-type="subsequent-section" display-inline="no-display-inline"><enum>402.</enum><header>Appeals from consistency determinations under Coastal Zone Management Act of 1972</header><text display-inline="no-display-inline">Section 319 of the Coastal Zone Management Act of 1972 (<external-xref legal-doc="usc" parsable-cite="usc/16/1465">16 U.S.C. 1465</external-xref>) is amended to read as if section 381 of the Energy Policy Act of 2005 (119 Stat. 737) were not enacted.</text></section> 
<section id="HD74065157528404691B6AA66A8C3977"><enum>403.</enum><header>Siting of interstate electric transmission facilities</header><text display-inline="no-display-inline">Section 216 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824p">16 U.S.C. 824p</external-xref>) is repealed.</text></section> 
<section id="H0E0C106B152B4DD680E1EFE699E985ED"><enum>404.</enum><header>New natural gas storage facilities</header><text display-inline="no-display-inline">Subsection (f) of section 4 of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717c">15 U.S.C. 717c(f)</external-xref>) is repealed.</text></section> 
<section id="H90B4211DB76A41B5A0C1AB5C5451ACE4"><enum>405.</enum><header>Process coordination; hearings; rules of procedure</header><text display-inline="no-display-inline">The amendments to the Natural Gas Act made by section 313 of the Energy Policy Act of 2005 are repealed, and the Natural Gas Act shall be administered as if those amendments were never enacted.</text></section> 
<section id="H1C68685A7C6E41C29E8D6130B689BFD3"><enum>406.</enum><header>Repeal of preemption of State law relating to automobile fuel economy standards</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/32919">Section 32919</external-xref> of title 49, United States Code, is repealed.</text></section></title> 
</legis-body> 
</bill> 


