109 HR 5331 IH: Breaking Our Long-Term Dependence Energy Act of 2006 or the BOLD Energy Act of 2006
U.S. House of Representatives
2006-05-09
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents
(a)This Act may be cited as the Breaking Our Long-Term Dependence Energy Act of 2006
or the BOLD Energy Act of 2006
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
TITLE I—VEHICLE FUEL ECONOMY
Sec. 101. National automobile fuel efficiency rebate program.
Sec. 102. Research and development program for lightweight materials.
Sec. 103. Tire efficiency program.
Sec. 104. Idling reduction tax credit.
TITLE II—ALTERNATIVE FUEL VEHICLES
Sec. 201. Promotion of advanced technology motor vehicles.
Sec. 202. Research and development program for new vehicle technologies.
Sec. 203. Consumer incentives to purchase advanced technology vehicles.
Sec. 204. Extension of full credit for qualified electric vehicles.
TITLE III—ALTERNATIVE FUELS
Sec. 301. Biofuels.
Sec. 302. Continuation of bioenergy program.
Sec. 303. Renewable fuel standard.
Sec. 304. Minimum quantity of renewable fuel derived from cellulosic biomass.
Sec. 305. Minimum quantity of renewable fuel derived from sugar.
Sec. 306. Ethanol promotion program.
Sec. 307. Renewable fuel program for the diesel motor pool.
Sec. 308. Extension and modification of income and excise tax credits for renewable fuels.
Sec. 309. Domestic refinery diversification.
Sec. 310. Transition to a hydrogen-based economy.
Sec. 311. Modification and extension of alternative vehicle refueling property credit.
Sec. 312. Use of native grasses on conservation reserve land for biomass harvesting.
Sec. 313. Use of CAFÉ penalties to build alternative fueling infrastructure.
TITLE IV—DOMESTIC PRODUCTION OF OIL AND NATURAL GAS
Sec. 401. Modifications to enhanced oil recovery credit.
Sec. 402. Offshore oil and gas leasing in 181 Area of Gulf of Mexico.
TITLE V—ELECTRICITY AND RENEWABLES
Sec. 501. DOE national and North American electricity grid studies.
Sec. 502. Tax-exempt financing of electric transmission facilities not subject to private business use test.
Sec. 503. Extension of credit for producing electricity from certain renewable resources.
Sec. 504. Federal renewable portfolio standard.
Sec. 505. Extension and expansion of clean renewable energy bonds.
Sec. 506. Credit for wind energy property installed in residences and businesses.
Sec. 507. Extension of business solar investment credit.
Sec. 508. Extension of credit residential energy efficient property.
Sec. 509. Clean energy coal bonds.
Sec. 510. Increase in credit limitation for qualifying gasification projects.
Sec. 511. Modification of qualifying advanced coal project credit.
Sec. 512. Great Plains Synfuels Trust.
TITLE VI—ENERGY EFFICIENCY
Sec. 601. Energy credit for combined heat and power system property.
Sec. 602. Extension of new energy efficient home credit.
Sec. 603. Modification and extension of energy efficient commercial buildings deduction.
Sec. 604. Extension of nonbusiness energy property.
2.
(a)Congress finds that—
(1)the dependence of the United States on foreign oil is projected to remain dangerously high over the next few decades unless serious action is taken;
(2)over 1/3 of the trade deficit of the United States over the last year is because of imported petroleum products;
(3)oil prices in the United States have risen more than 95 percent over the last 2 years and are projected to remain at, or exceed, historically high levels for the foreseeable future;
(4)Brazil has drastically decreased oil imports by aggressively promoting biofuels and flexible fuel vehicles;
(5)using renewable energy, promoting clean coal technology, and offering incentives for energy efficiency will improve air quality and reduce the demand for imported natural gas;
(6)transmission capacity constraints prevent some regions of the United States from fully developing domestic energy resources;
(7)the United States has abundant domestic resources to create alternative fuels that will dramatically lessen dependence on foreign oil;
(8)increasing funding for research, development, and commercialization of new energy technologies will enable the United States to significantly reduce the reliance of the United States on foreign energy suppliers;
(9)a bold energy plan to make the United States more energy-independent should be implemented immediately; and
(10)a bold and comprehensive energy plan will help keep energy prices affordable for consumers in the United States.
(b)The purposes of this Act are—
(1)to reduce the dependence of the United States on foreign oil;
(2)to expand the production and use of alternative fuels and alternative fuel vehicles;
(3)to promote the development of renewable energy sources for electricity production;
(4)to encourage responsible development of domestic fossil fuel resources; and
(5)to reward consumers and businesses for conservation and energy efficiency.
3.In this Act:
(1)The term battery means an energy storage device used in an on-road or nonroad vehicle powered in whole or in part using an off-board or on-board source of electricity.
(2)Carbon capture capabilityThe term carbon capture capability means a gasification plant design that is determined by the Secretary to reflect reasonable consideration for, and be capable of, accommodating the equipment likely to be necessary to capture carbon dioxide from the gaseous stream, for later use or sequestration, which would otherwise be emitted in the flue gas from a project that uses a nonrenewable fuel.
(3)The term CTL means the Coal-To-Liquid process, by which any grade of coal is transformed into a liquid transportation fuel.
(4)The term CTL refinery means a facility at which coal is transformed into liquid transportation fuel through CTL.
(5)Electric drive transportation technologyThe term electric drive transportation technology means technology used by vehicles that use an electric motor for all or part of their motive power and that may or may not use off-board electricity, such as battery electric vehicles, fuel cell vehicles, engine dominant hybrid electric vehicles, plug-in hybrid electric vehicles, and plug-in hybrid fuel cell vehicles.
(6)Engine dominant hybrid electric vehicleThe term engine dominant hybrid electric vehicle means an on-road or nonroad vehicle that—
(A)is propelled by an internal combustion engine or heat engine using—
(i)any combustible fuel; and
(ii)an on-board, rechargeable storage device; and
(B)has no means of using an off-board source of electricity.
(7)The term fuel cell vehicle means an on-road or nonroad vehicle that uses a fuel cell (as defined in section 803 of the Spark M. Matsunaga Hydrogen Act of 2005 (42 U.S.C. 16152)).
(8)The term Military Mission Line means the north-south line at 86°41′ W. longitude.
(9)National transmission gridThe term national transmission grid means new overlaying facilities or upgrades to existing interstate transmission facilities in the United States necessary for integrating and operating with the existing transmission grid.
(10)North american transmission gridThe term North American transmission grid means new overlaying facilities or upgrades to existing interstate transmission facilities in North America necessary for integrating and operating with the existing transmission grid.
(11)The term nonroad vehicle has the meaning given the term in section 216 of the Clean Air Act (42 U.S.C. 7550).
(12)The term 181 Area means the area identified in map 15, page 58, of the Proposed Final Outer Continental Shelf Oil and Gas Leasing Program for 1997–2002 of the Minerals Management Service.
(13)Plug-in hybrid electric vehicleThe term plug-in hybrid electric vehicle means an on-road or nonroad vehicle that is propelled by an internal combustion engine or heat engine that—
(A)uses—
(i)any combustible fuel; and
(ii)an on-board, rechargeable storage device; and
(B)has a means of using an off-board source of electricity.
(14)Plug-in hybrid fuel cell vehicleThe term plug-in hybrid fuel cell vehicle means a fuel cell vehicle with a battery powered by an off-board source of electricity.
(15)The term Secretary means the Secretary of Energy.
<enum>I</enum><header>VEHICLE FUEL ECONOMY</header>
<section id="H0092DCFF10B4467A9EA7F1EB9082AD9C"><enum>101.</enum><header>National automobile fuel efficiency rebate program</header>
<subsection id="H2FD7EEF041DC4BA7BC2D12FEAC00D900"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/329">Chapter 329</external-xref> of title 49, United States Code, is amended—</text>
<paragraph id="H407CA3F77AA143B2BB74F0EAD4F36290"><enum>(1)</enum><text>in section 32901(a)—</text>
<subparagraph id="HDEB7D9DB1940406EA2CC872FAC2138FC"><enum>(A)</enum><text>by redesignating paragraphs (10) through (16) as paragraphs (14) through (20), respectively;</text></subparagraph>
<subparagraph id="HE26BB2074D864D7C8BABAEC48516F6B"><enum>(B)</enum><text>by redesignating paragraphs (7) through (9) as paragraphs (10) through (12), respectively;</text></subparagraph>
<subparagraph id="H3A9ED3E2C9104572BC534C00C809171E"><enum>(C)</enum><text>by inserting after paragraph (6) the following:</text>
<quoted-block style="OLC" id="H251188FC1CCC42C6A1C204FF54F3306">
<paragraph id="H12DFFB03F03C4C24A204907189B8EC4"><enum>(7)</enum><text><quote>baseline fuel consumption level</quote> is calculated by dividing 1 by the baseline fuel economy;</text></paragraph>
<paragraph id="H340269B7191549DD93DC795D479E50B0"><enum>(8)</enum><text><quote>baseline fuel economy</quote>, for a particular class of vehicle in a particular model year, means 110 percent of the combined average fuel economy for such class of vehicle in the previous model year;</text></paragraph>
<paragraph id="HAFD4923685DD40278DF6E146A68BDF7E"><enum>(9)</enum><text><quote>combined average fuel economy</quote> means—</text>
<subparagraph id="H4279EA3E250B4E58B9774186E6BA91CA"><enum>(A)</enum><text>as applied to automobiles (except passenger automobiles), the weighted average fuel economy of all manufacturers calculated under section 32904(a)(1)(A); and</text></subparagraph>
<subparagraph id="HAB2534E39B2F401497F0A81C11CCB59B"><enum>(B)</enum><text>as applied to passenger automobiles, the weighted average fuel economy of all manufacturers calculated under section 32904(a)(1)(B),</text></subparagraph></paragraph>
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">except that such calculation shall be determined on a gallons per mile basis, and in the case of dual fueled automobiles, the calculation of average fuel economy shall not be adjusted as set forth under section 32905(b);</quoted-block-continuation-text><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H4BA5D7EBB44446A5BF443CC66E49D0B5"><enum>(D)</enum><text>by inserting after paragraph (12), as redesignated, the following:</text>
<quoted-block style="OLC" id="H3FA6C83AE3934D938435AF255356D03">
<paragraph id="H3C26593816934F3D9B887DE2E5BB74C8"><enum>(13)</enum><text><quote>fuel consumption level</quote> is calculated by dividing 1 by the fuel economy</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="HF834FD5B28644F6B83F9D5324D4D7F18"><enum>(2)</enum><text>by inserting after section 32903 the following:</text>
<quoted-block style="OLC" id="H16FBFB04D692431100BF0796A5D7792">
<section id="HD0E60E933F63477C001881B0B6AC4F3B"><enum>32903A.</enum><header>Rebates for reducing fuel consumption levels</header>
<subsection id="HCD0194E71A46468BAC18E4E0D573B79E"><enum>(a)</enum><header>Eligibility</header><text>A consumer is eligible for a rebate under this section if the consumer originally places an automobile into service in the United States that attains or exceeds the baseline fuel economy.</text></subsection>
<subsection id="HB7A95427123D4CF9B7552B2829117406"><enum>(b)</enum><header>Rebate Amount</header><text>An eligible consumer who submits a rebate request to the Secretary of the Transportation, in accordance with the regulations promulgated pursuant to subsection (c), shall be awarded a rebate in an amount equal to—</text>
<paragraph id="H0DE343096F574A989EEF450257D8ACA5"><enum>(1)</enum><text>$500, if the automobile placed in service by the consumer has a fuel consumption level that equals the baseline fuel consumption level or is lower than the baseline fuel consumption level by less than 0.005 gallons per mile;</text></paragraph>
<paragraph id="H8856B04718674066AB2CA107A0C6CC02"><enum>(2)</enum><text>$1,000, if the automobile placed in service by the consumer has a fuel consumption level that is lower than the baseline fuel consumption level by at least 0.005 gallons per mile and less than 0.010 gallons per mile;</text></paragraph>
<paragraph id="H940FDBF3E3084FC49DCB464C662FB174"><enum>(3)</enum><text>$1,500, if the automobile placed in service by the consumer has a fuel consumption level that is lower than the baseline fuel consumption level by at least 0.010 gallons per mile and less than 0.015 gallons per mile;</text></paragraph>
<paragraph id="H53D2E63ADBCD49E6924700FF7FC1F9D2"><enum>(4)</enum><text>$2,000, if the automobile placed in service by the consumer has a fuel consumption level that is lower than the baseline fuel consumption level by at least 0.015 gallons per mile and less than 0.020 gallons per mile; and</text></paragraph>
<paragraph id="H7472C7610B8D4F019EB3522CBFA27984"><enum>(5)</enum><text>$2,500, if the automobile placed in service by the consumer has a fuel consumption level that is lower than the baseline fuel consumption level by at least 0.020 gallons per mile.</text></paragraph><continuation-text continuation-text-level="subsection">For purposes of this subsection, the Secretary shall calculate fuel economy based on a gallons per mile standard.</continuation-text></subsection>
<subsection id="H604F31EA16BD40F9AD700430CB00922F"><enum>(c)</enum><header>Rulemaking</header>
<paragraph id="H0A09049FA3F944B589C55C5D6B115175"><enum>(1)</enum><header>In general</header><text>The Secretary of Transportation shall promulgate regulations to carry out this section.</text></paragraph>
<paragraph id="HF3E629AFFE4F46289694179CE987A8E0"><enum>(2)</enum><header>Rebate notices</header><text>In promulgating regulations pursuant to this subsection, the Secretary of Transportation shall ensure that—</text>
<subparagraph id="H7B56359935454B7CB59C68D6488C8C15"><enum>(A)</enum><text>information about the rebates available under this section is provided to the public, expressed in miles per gallon;</text></subparagraph>
<subparagraph id="HDE3FB8B301F44A02B07EF720C0549BFC"><enum>(B)</enum><text>a notice of the amount of the rebate available under this section is posted on each automobile that qualifies for such rebate; and</text></subparagraph>
<subparagraph id="H1F37FB2F07CA465C00E12268B5B144D9"><enum>(C)</enum><text>a rebate check in an amount determined under subsection (b) is sent directly to each consumer who demonstrates eligibility under subsection (a).</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HCD7DF619FB80473DA5004E00E6D65DC2"><enum>(b)</enum><header>Coordination With Vehicle Tax Credits</header>
<paragraph id="H989B3822B87A412CB2C7F0DC67017EA5"><enum>(1)</enum><header>Alternative motor vehicle tax credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B(h)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="HA662872A02E549D8A0BEB012C0B1B774">
<paragraph id="HCB12A137E2194C66B72CD754C2FF3F3D"><enum>(11)</enum><header>Coordination with rebates</header><text>No credit shall be allowed under this section to any taxpayer with respect to any motor vehicle if such taxpayer receives a rebate under <external-xref legal-doc="usc" parsable-cite="usc/49/32903A">section 32903A</external-xref> of title 49, United States Code.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HD8EAEC22DEE44A0484FC5441CD83F156"><enum>(2)</enum><header>Credit for qualified electric vehicles</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30">Section 30(d)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="H1EFAFEB9BA804E8799C22C52EC9016F5">
<paragraph id="HB0E305954B5B41FA8FA7737E786F4791"><enum>(5)</enum><header>Coordination with rebates</header><text>No credit shall be allowed under this section to any taxpayer with respect to any motor vehicle if such taxpayer receives a rebate under <external-xref legal-doc="usc" parsable-cite="usc/49/32903A">section 32903A</external-xref> of title 49, United States Code.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H69D86ED1ACD34793AFAF175F7BB4CD92"><enum>(c)</enum><header>Study</header>
<paragraph id="H19A35A0C1D004322A70030D715B8C500"><enum>(1)</enum><header>In general</header><text>The Secretary of Transportation shall undertake a study to compare and evaluate the effectiveness of the rebates under <external-xref legal-doc="usc" parsable-cite="usc/49/32903A">section 32903A</external-xref> of title 49, United States Code, and the credits under sections 30 and 30B of the Internal Revenue Code of 1986. The study shall include—</text>
<subparagraph id="HAC628BF847BF49D2B57B75BD4E7EB0B5"><enum>(A)</enum><text>an evaluation of the rebates under such section 32903A and the effectiveness of such rebates in improving the average fuel economy of automobiles purchased in the United States; and</text></subparagraph>
<subparagraph id="H2CF7DEDB13E943C181F35E48FCE4C3EC"><enum>(B)</enum><text>an evaluation of the credits under such sections 30 and 30B and the effectiveness of such credits in increasing purchases of electric vehicles, new qualified hybrid vehicles, and advanced lean burn technology vehicles.</text></subparagraph></paragraph>
<paragraph id="H4E65349AB0BC4199A344C5EE00006E90"><enum>(2)</enum><header>Report</header><text>Not later than December 31, 2009, the Secretary of Transportation shall transmit to the President and to Congress a written report presenting the results of the study conducted pursuant to this subsection. The report shall include—</text>
<subparagraph id="H102431DF02F54E4C8B8CE69D8D9ECFBB"><enum>(A)</enum><text>recommendations for changes in the rebate structure under such section 32903A to further improve the average fuel economy of automobiles purchased in the United States;</text></subparagraph>
<subparagraph id="HF7F5686EA5194FEF94B8704630480081"><enum>(B)</enum><text>recommendations for changes in the credits under such sections 30 and 30B to further increase the purchases of alternative fuel and lean burn technology vehicles that lessen the United States dependence on imported foreign oil; and</text></subparagraph>
<subparagraph id="H4324AF2994194DB5A7079617EAABBB43"><enum>(C)</enum><text>recommendations for consolidating such rebates and credits into one unified incentive structure for the purchase of automobiles that will further reduce such dependence.</text></subparagraph></paragraph></subsection>
<subsection id="HB963B96F51F54C3FB62B027750793C69"><enum>(d)</enum><header>Clerical Amendment</header><text>The table of sections in <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/329">chapter 329</external-xref> of title 49, United States Code, is amended by inserting after the item relating to <external-xref legal-doc="usc" parsable-cite="usc/49/32903">section 32903</external-xref> the following:</text>
<quoted-block style="OLC" id="HB1C8178A7AA8423B8F7152C983F299E2">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 32903A. Rebates for reducing fuel consumption levels.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="HC4D38FF40AB64DE399D7ABC20445473"><enum>102.</enum><header>Research and development program for lightweight materials</header><text display-inline="no-display-inline">There are authorized to be appropriated to the Secretary for research and development relating to carbon-fiber composites and lightweight steel alloys to reduce the weight of automobiles—</text>
<paragraph id="H7E72270852224F9C86E332A52312C3D2"><enum>(1)</enum><text>$33,750,000 for fiscal year 2007;</text></paragraph>
<paragraph id="H14AA9E2B64404530B45661959FF5D3C0"><enum>(2)</enum><text>$40,000,000 for fiscal year 2008;</text></paragraph>
<paragraph id="H912FE2F1AC904FA5A0CEAB0075E8B7D1"><enum>(3)</enum><text>$47,250,000 for fiscal year 2009;</text></paragraph>
<paragraph id="H1EDAE586FDF449D4AA07175D74EFAA12"><enum>(4)</enum><text>$54,000,000 for fiscal year 2010; and</text></paragraph>
<paragraph id="HC0635D75621D425EAA5486C9CA414792"><enum>(5)</enum><text>$60,000,000 for fiscal year 2011.</text></paragraph></section>
<section id="H38D35ED485A24A4F8DF6E72CFB15AE20"><enum>103.</enum><header>Tire efficiency program</header>
<subsection id="H76D76A3DD7B043F5A0498067DFB1F92B"><enum>(a)</enum><header>Standards for Tires Manufactured for Interstate Commerce</header><text><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="H8DA38197D3DB4A52B0200022F3DA9D00"><enum>(1)</enum><text>in subsection (b)—</text>
<subparagraph id="HFCC74082AC104F7FA253C1709500659F"><enum>(A)</enum><text>in the first sentence, by striking <quote>The Secretary</quote> and inserting the following:</text>
<quoted-block style="OLC" id="H0432BD4DFC784C77A4CF2506F783845E">
<paragraph id="H0178C441C32D4F6B987902A79ECB3EF1"><enum>(1)</enum><header>Uniform quality grading system</header><text>The Secretary</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H78012F1C9878469789706C83BB00B4BB"><enum>(B)</enum><text>in the second sentence, by striking <quote>The Secretary</quote> and inserting the following:</text>
<quoted-block style="OLC" id="H92D5159E0B714E329209C884C52D77AB">
<paragraph id="H2C92A75F6B864CB08162FAC90000FE6F"><enum>(2)</enum><header>Nomenclature and marketing practices</header><text>The Secretary</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="HE4D4CC14E7334813B118E93503C53E1C"><enum>(C)</enum><text>in the third sentence, by striking <quote>A tire standard</quote> and inserting the following:</text>
<quoted-block style="OLC" id="HD21CABC295B447D4BF00B832D93385CA">
<paragraph id="HB6C8026666854E9F81E9DDE6571DA3C"><enum>(3)</enum><header>Effect of standards and regulations</header><text>A tire standard</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H1EFF26BDE03E42AF901197137E92666D"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="HFF31C99A2D9A40C6AB92C5E166DD873E">
<subsection id="HD8CD619A0C40451EAF00718D06D27124"><enum>(d)</enum><header>National Tire Efficiency Program</header>
<paragraph id="HE6FE1526B1BC4982A07BC57885E671D0"><enum>(1)</enum><header>Definition</header><text>In this subsection, the term <term>tire efficiency</term>, with respect to a tire, means the extent to which the tire contributes to the fuel economy of the motor vehicle on which the tire is mounted.</text></paragraph>
<paragraph id="HE9DD88EE8BA54CD2BD3CF367EACD9048"><enum>(2)</enum><header>Program</header><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="H9DA0A6ADEC214B039B14280957974849"><enum>(3)</enum><header>Requirements</header><text>Not later than March 31, 2007, the Secretary shall issue regulations, which establish—</text>
<subparagraph id="HD54343234957491E89BD624D2F138D80"><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; and</text></subparagraph>
<subparagraph id="H31E3DFBF5AD648FD98BE93372BB01148"><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></paragraph>
<paragraph id="HA878C444C8E24973B1C1FCE7C8034D65"><enum>(4)</enum><header>Applicability</header><text>The policies, procedures, and standards developed under paragraph (3) shall apply to all tire types and models regulated under 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, as in effect on the date of enactment of this Act (or a successor regulation).</text></paragraph>
<paragraph id="H36413A31404C4378B48205997B44AC46"><enum>(5)</enum><header>No preemption of state law</header><text>Nothing in this section shall be construed to preempt any provision of State law relating to higher fuel economy standards applicable to replacement tires designed for use on passenger cars and light trucks.</text></paragraph>
<paragraph id="HF0B6C1ACBE3347FBB8DFC8B23D3D4FD9"><enum>(6)</enum><header>Exceptions</header><text>Nothing in this section shall apply to—</text>
<subparagraph id="H65C0146871AE47879F56D6D2F4B0C22F"><enum>(A)</enum><text>a tire or group of tires with the same stock keeping unit, plant, and year, for which the volume of tires produced or imported is less than 15,000 annually;</text></subparagraph>
<subparagraph id="H1752511904F747CDBCF646DBAC3C32FF"><enum>(B)</enum><text>a deep tread, winter-type snow tire, space-saver tire, or temporary use spare tire;</text></subparagraph>
<subparagraph id="HE4173B477E164ED48716651925D6AB"><enum>(C)</enum><text>a tire with a normal rim diameter of 12 inches or less;</text></subparagraph>
<subparagraph id="H476E67AB56124186934D25EB00925C72"><enum>(D)</enum><text>a motorcycle tire; or</text></subparagraph>
<subparagraph id="H61B53D4737B14A9FBE5D67A9B8547C38"><enum>(E)</enum><text>a tire manufactured specifically for use in an off-road motorized recreational vehicle.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HEDBFB7B2DC89413C8131F671563F52C2"><enum>(b)</enum><header>Conforming Amendment</header><text><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), if</quote>.</text></subsection>
<subsection id="H77DB9BE3B9584E229BB5919958A34D3D"><enum>(c)</enum><header>Time for Implementation</header><text>Beginning not later than March 31, 2007, the Secretary of Transportation shall administer the national tire efficiency program established under <external-xref legal-doc="usc" parsable-cite="usc/49/30123">section 30123(d)</external-xref> of title 49, United States Code, in accordance with the policies, procedures, and standards developed under section 30123(d)(3) of such title.</text></subsection>
<subsection id="HA131B5DB6A594438B256A4A5452540E4"><enum>(d)</enum><header>Authorization of Appropriations</header><text>There are authorized to be appropriated, for each of the fiscal years 2007 through 2011, such sums as may be necessary to carry out <external-xref legal-doc="usc" parsable-cite="usc/49/30123">section 30123(d)</external-xref> of title 49, United States Code, as added by subsection (a).</text></subsection></section>
<section id="HCAFAD56311D34C97BDB879799D605C4D"><enum>104.</enum><header>Idling reduction tax credit</header>
<subsection id="H25F5B71E8C24465296BEAC6B53D7FCB7"><enum>(a)</enum><header>In General</header><text>Subpart D 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 business-related credits) is amended by adding at the end the following new section:</text>
<quoted-block style="OLC" id="H090057FCFE08419281BE6BC057BB27FF">
<section id="HDE7D550839A4420BA08D1FFC3D92A8DC"><enum>45N.</enum><header>Idling reduction credit</header>
<subsection id="HFF8055CCE2B64502B0771D8DB415C2C2"><enum>(a)</enum><header>General Rule</header><text>For purposes of section 38, the idling reduction tax credit determined under this section for the taxable year is an amount equal to 25 percent of the amount paid or incurred for each qualifying idling reduction device placed in service by the taxpayer during the taxable year.</text></subsection>
<subsection id="H124650A069514048A29E785E3E9F006E"><enum>(b)</enum><header>Limitation</header><text>The maximum amount allowed as a credit under subsection (a) shall not exceed $1,000 per device.</text></subsection>
<subsection id="H97B75CDC720D40E292D291E38138924F"><enum>(c)</enum><header>Definitions</header><text>For purposes of subsection (a)—</text>
<paragraph id="H15FBE540794A42A5B0D2E45FD7BAE86"><enum>(1)</enum><header>Qualifying idling reduction device</header><text>The term <term>qualifying idling reduction device</term> means any device or system of devices that—</text>
<subparagraph id="H984D71B1284E44170050C64E002EDE00"><enum>(A)</enum><text>is installed on a heavy-duty diesel-powered on-highway vehicle,</text></subparagraph>
<subparagraph id="HAB6B594FA66F4D05AB8F72C13420099C"><enum>(B)</enum><text>is designed to provide to such vehicle those services (such as heat, air conditioning, or electricity) that would otherwise require the operation of the main drive engine while the vehicle is temporarily parked or remains stationary,</text></subparagraph>
<subparagraph id="H5302EA51451A4B9183CC68ADD0C82319"><enum>(C)</enum><text>the original use of which commences with the taxpayer,</text></subparagraph>
<subparagraph id="H369B31B30AE145D1B87FC9412CAFC386"><enum>(D)</enum><text>is acquired for use by the taxpayer and not for resale, and</text></subparagraph>
<subparagraph id="H639941EEC26042A489211CF889EF9C5"><enum>(E)</enum><text>is certified by the Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, to reduce long-duration idling of such vehicle at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary.</text></subparagraph></paragraph>
<paragraph id="H4993FF3035E6428EBAFFC38BDEC9D966"><enum>(2)</enum><header>Heavy-duty diesel-powered on-highway vehicle</header><text>The term <term>heavy-duty diesel-powered on-highway vehicle</term> means any vehicle, machine, tractor, trailer, or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property, or any combination thereof determined by the Federal Highway Administration.</text></paragraph>
<paragraph id="H935397228D714A318D86C505B32E0200"><enum>(3)</enum><header>Long-duration idling</header><text>The term <term>long-duration idling</term> means the operation of a main drive engine, for a period greater than 15 consecutive minutes, where the main drive engine is not engaged in gear. Such term does not apply to routine stoppages associated with traffic movement or congestion.</text></paragraph></subsection>
<subsection id="H63ED43F18D834D9BA868F10076F20058"><enum>(d)</enum><header>No Double Benefit</header><text>For purposes of this section—</text>
<paragraph id="HAAC2F0114F984E6EAF19DA483FB22C26"><enum>(1)</enum><header>Reduction in basis</header><text>If a credit is determined under this section with respect to any property by reason of expenditures described in subsection (a), the basis of such property shall be reduced by the amount of the credit so determined.</text></paragraph>
<paragraph id="HD4386233B7FA421A9D4DA15E4F008FA9"><enum>(2)</enum><header>Other deductions and credits</header><text>No deduction or credit shall be allowed under any other provision of this chapter with respect to the amount of the credit determined under this section.</text></paragraph></subsection>
<subsection id="H6AFDB61A0E9045D1BA41789289C07B65"><enum>(e)</enum><header>Election Not to Claim Credit</header><text>This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H6C275BCC570E45B3A0035221E2737CB7"><enum>(b)</enum><header>Credit to Be Part of General Business Credit</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/38">section 38</external-xref> of the Internal Revenue Code of 1986 (relating to general business credit) is amended by striking <quote>and</quote> at the end of paragraph (29), by striking the period at the end of paragraph (30) and inserting <quote>, plus</quote> , and by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="H6316A36B28004497A0DCC0AAF3BB8E6E">
<paragraph id="H5B617DABFBF146F0BBCF91E0E1C4E27"><enum>(31)</enum><text>the idling reduction tax credit determined under section 45N(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H6A9BBC855ECC4524993E14AAA2D44943"><enum>(c)</enum><header>Conforming Amendments</header>
<paragraph id="HB2558CFF7A7D446F96EFFA14264216AF"><enum>(1)</enum><text>The table of sections for subpart D 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 is amended by inserting after the item relating to section 45M the following new item:</text>
<quoted-block style="OLC" id="H42E544E3A8E948EDA164B4EFCBCAAFF5">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45N. Idling reduction credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HA8A8074033BA4BC1A74D12D4889347DA"><enum>(2)</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:</text>
<quoted-block style="OLC" id="H21A127F4E5C9452E9BEDE390C1D42B64">
<paragraph id="HDF7E9752BB6E45DDA8DBD652835C83A8"><enum>(38)</enum><text>in the case of a facility with respect to which a credit was allowed under section 45N, to the extent provided in section 45N(d)(A).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H1C7278D7D97C4E3B8B01D356E2A83987"><enum>(3)</enum><text>Section 6501(m) of such Code is amended by inserting <quote>45N(e),</quote> after <quote>45D(c)(4),</quote>.</text></paragraph></subsection>
<subsection id="HE1330AA2026048EDAE454EF7C6620042"><enum>(d)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2006.</text></subsection>
<subsection id="H2C1D5190ACBD45C1829CD0C232C27838"><enum>(e)</enum><header>Determination of Certification Standards by Secretary of Energy for Certifying Idling Reduction Devices</header><text>Not later than 6 months after the date of the enactment of this Act and in order to reduce air pollution and fuel consumption, the Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, shall publish the standards under which the Secretary, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, will, for purposes of <external-xref legal-doc="usc" parsable-cite="usc/26/45N">section 45N</external-xref> of the Internal Revenue Code of 1986 (as added by this section), certify the idling reduction devices which will reduce long-duration idling of vehicles at motor vehicle rest stops or other locations where such vehicles are temporarily parked or remain stationary in order to reduce air pollution and fuel consumption.</text></subsection></section>
<enum>II</enum><header>ALTERNATIVE FUEL VEHICLES</header>
<section id="H94C0770489B74599A0EEAD8C7614C6D5"><enum>201.</enum><header>Promotion of advanced technology motor vehicles</header>
<subsection id="H3267EDD307BC43ADA4DED9F63F3F78F"><enum>(a)</enum><header>Purposes</header><text>It is the purpose of this section—</text>
<paragraph id="H7C5F56B9DC1A4AEE9D1B820242CEDB6B"><enum>(1)</enum><text>to facilitate the production of advanced technology motor vehicles capable of lessening our dependence on foreign oil, and</text></paragraph>
<paragraph id="HC51C631113CC461F9C42FF85C370D62C"><enum>(2)</enum><text>to ensure that domestic and foreign automakers receive adequate incentives in the form of a manufacturing tax credit or equivalent employee healthcare cost relief to meet the vehicle fleet requirements established under subsection (b).</text></paragraph></subsection>
<subsection id="H5289CA8FCAB84198B3141003CEFF4EA"><enum>(b)</enum><header>Production Requirements</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32905">Section 32905</external-xref> of title 49, United States Code, is amended by adding at the end the following:</text>
<quoted-block style="OLC" id="HE5DFC411BC844D22AD48D0B6EFF8F2D">
<subsection id="H3DA5252D3054478B89B7325299B5A0D7"><enum>(h)</enum><header>Alternative Fueled Automobiles</header><text>Each manufacturer that manufactures automobiles for sale or use in the United States shall ensure that—</text>
<paragraph id="H6FE5882BF50B4C0B9FAF7D38C25C1C9B"><enum>(1)</enum><text>beginning in model year 2011, not less than 30 percent of such automobiles are advanced technology motor vehicles (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D(c)(1)</external-xref> of the Internal Revenue Code of 1986); and</text></paragraph>
<paragraph id="H51DA8A08E915404AA5D986CC5B8C00CE"><enum>(2)</enum><text>beginning in model year 2017, all such automobiles are advanced technology motor vehicles (as so defined).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H4CD482528A2A4C2DA7AED1AD9DDA2F3D"><enum>(c)</enum><header>Incentives for Production Requirements</header>
<paragraph id="H0BBFEEF6DA66402498D9FD8BE43B221F"><enum>(1)</enum><header>Advanced technology motor vehicles manufacturing credit</header>
<subparagraph id="HBAAF7F3E5F5C4EFAB54C14A757365CAE"><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 style="OLC" id="H3650236C344846B889E800024866CEEA">
<section id="HC9053FE94E844674A5B3182E10C2D9A5"><enum>30D.</enum><header>Advanced technology motor vehicles manufacturing credit</header>
<subsection id="H61C164621F674DD78C321E477C756D8F"><enum>(a)</enum><header>Credit Allowed</header>
<paragraph id="HDCB8846AE14B47D2B23C2679660443D4"><enum>(1)</enum><header>In general</header><text>There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 35 percent of the qualified investment of an eligible taxpayer for such taxable year.</text></paragraph>
<paragraph id="H4570FE24485F44B280872F8304FDA453"><enum>(2)</enum><header>Limitation</header><text>The amount of the credit allowed under paragraph (1) for any taxable year shall not exceed $250,000,000.</text></paragraph></subsection>
<subsection id="H72352DB5FF554A84BED9A58DED12B2B3"><enum>(b)</enum><header>Qualified Investment</header><text>For purposes of this section—</text>
<paragraph id="H5408CAC7160F4B97B8BC4D6BE892DE89"><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="H9ED1C92FCE66482684FF12014965DD60"><enum>(A)</enum><text>to re-equip, expand, or establish any manufacturing facility of the eligible taxpayer to produce advanced technology motor vehicles or to produce eligible components,</text></subparagraph>
<subparagraph id="H3CE22B4EBF714D03A7483B6C007F6025"><enum>(B)</enum><text>for engineering integration of such vehicles and components as described in subsection (d),</text></subparagraph>
<subparagraph id="HD9003804037B45C7A326AC0058ACA342"><enum>(C)</enum><text>for research and development related to advanced technology motor vehicles and eligible components, and</text></subparagraph>
<subparagraph id="HEBDD900F6DAF4857BDDC9F7221BC4F1"><enum>(D)</enum><text>for employee retraining with respect to the manufacturing of such vehicles or components (determined without regard to wages or salaries of such retrained employees).</text></subparagraph></paragraph>
<paragraph id="H6B1E4946076244DF87DE00C17567298B"><enum>(2)</enum><header>Attribution rules</header><text>In the event a facility of the eligible taxpayer produces both advanced technology motor vehicles and conventional motor vehicles, or eligible and non-eligible components, only the qualified investment attributable to production of advanced technology motor vehicles and eligible components shall be taken into account.</text></paragraph></subsection>
<subsection id="H0359238F5B9F482FB5302F381C295FA7"><enum>(c)</enum><header>Advanced Technology Motor Vehicles and Eligible Components</header><text>For purposes of this section—</text>
<paragraph id="H43A269C8F24445829BABF4678E452BBC"><enum>(1)</enum><header>Advanced technology motor vehicle</header><text>The term <term>advanced technology motor vehicle</term> means—</text>
<subparagraph id="H69190F3202584BFE88FAB9F4FA2D27D9"><enum>(A)</enum><text>any qualified electric vehicle (as defined in section 30(c)(1)),</text></subparagraph>
<subparagraph id="H57E2F044BE384494AE765588BBDCC76B"><enum>(B)</enum><text>any new qualified fuel cell motor vehicle (as defined in section 30B(b)(3)),</text></subparagraph>
<subparagraph id="H5FF5D171F1B845F1AEA2CFDD6CF7E7F9"><enum>(C)</enum><text>any new advanced lean burn technology motor vehicle (as defined in section 30B(c)(3)),</text></subparagraph>
<subparagraph id="HD7C681B4CD39417A9536BA185E97D287"><enum>(D)</enum><text>any new qualified hybrid motor vehicle (as defined in section 30B(d)(2)(A) and determined without regard to any gross vehicle weight rating),</text></subparagraph>
<subparagraph id="H7B12743CD5654DF5B3989432479D15A7"><enum>(E)</enum><text>any new qualified alternative fuel motor vehicle (as defined in section 30B(e)(4), including any mixed-fuel vehicle (as defined in section 30B(e)(5)(B)), and</text></subparagraph>
<subparagraph id="HDE6CA096ABC54A36BDB7E30061016C9C"><enum>(F)</enum><text>any other motor vehicle using electric drive transportation technology (as defined in section 201(2) of the Breaking Our Long-Term Dependence Energy Act of 2006).</text></subparagraph></paragraph>
<paragraph id="HECD1C060F54A46D39B832CD3917BDB6F"><enum>(2)</enum><header>Eligible components</header><text>The term <term>eligible component</term> means any component inherent to any advanced technology motor vehicle, including—</text>
<subparagraph id="HF2C254AB4C434421A449A300391CC1DE"><enum>(A)</enum><text>with respect to any gasoline or diesel-electric new qualified hybrid motor vehicle—</text>
<clause id="H881707FDB23348CA89EEE79C73C4AF48"><enum>(i)</enum><text>electric motor or generator,</text></clause>
<clause id="HE7951E71BAD242F0ACE6F457F5D0E62B"><enum>(ii)</enum><text>power split device,</text></clause>
<clause id="HBC57676D928B41A488F4F3CC70991952"><enum>(iii)</enum><text>power control unit,</text></clause>
<clause id="H2EE95C1F24C544CB807E0316028F9FB9"><enum>(iv)</enum><text>power controls,</text></clause>
<clause id="H8C4F006C57ED47A98B30345775D573B"><enum>(v)</enum><text>integrated starter generator, or</text></clause>
<clause id="HEA169961531C4273A5353C004231F95C"><enum>(vi)</enum><text>battery,</text></clause></subparagraph>
<subparagraph id="HEC71EEE83FB64878A7B510C53CDFF385"><enum>(B)</enum><text>with respect to any hydraulic new qualified hybrid motor vehicle—</text>
<clause id="H72F2AF55BC12452C9242003DDE5D56C7"><enum>(i)</enum><text>hydraulic accumulator vessel,</text></clause>
<clause id="HF7F2DEE2AD29449300004343A84D8BFA"><enum>(ii)</enum><text>hydraulic pump, or</text></clause>
<clause id="HF80EE1BBE9314C1BA2756817198160C2"><enum>(iii)</enum><text>hydraulic pump-motor assembly,</text></clause></subparagraph>
<subparagraph id="H63B6CB0CBB3E404ABB5C329DBEB277E4"><enum>(C)</enum><text>with respect to any new advanced lean burn technology motor vehicle—</text>
<clause id="H9AC2ADC0BC464FC58F844F00A81C0690"><enum>(i)</enum><text>diesel engine,</text></clause>
<clause id="HB5397511A0C04A75B96447A0BD24562B"><enum>(ii)</enum><text>turbocharger,</text></clause>
<clause id="H4938C93112904182BE38DC729A02D92"><enum>(iii)</enum><text>fuel injection system, or</text></clause>
<clause id="HDC6EBCD09D8143C0A7435767ADCC4F52"><enum>(iv)</enum><text>after-treatment system, such as a particle filter or NOx absorber, and</text></clause></subparagraph>
<subparagraph id="H8D88E1D6E5CA492EB48783B033C1CFF2"><enum>(D)</enum><text>with respect to any advanced technology motor vehicle, any other component submitted for approval by the Secretary.</text></subparagraph></paragraph></subsection>
<subsection id="HA3DDE525B5C2485800870764CB4B6F6E"><enum>(d)</enum><header>Engineering Integration Costs</header><text>For purposes of subsection (b)(1)(B), costs for engineering integration are costs incurred prior to the market introduction of advanced technology vehicles for engineering tasks related to—</text>
<paragraph id="H46CD6C12E73A4BC2B1FB67DF436E3700"><enum>(1)</enum><text>establishing functional, structural, and performance requirements for component and subsystems to meet overall vehicle objectives for a specific application,</text></paragraph>
<paragraph id="H72C732B14B8A4EF1A89CBF0600B236EF"><enum>(2)</enum><text>designing interfaces for components and subsystems with mating systems within a specific vehicle application,</text></paragraph>
<paragraph id="HFB5D01C699E24EDDA8A1AAD7C800687C"><enum>(3)</enum><text>designing cost effective, efficient, and reliable manufacturing processes to produce components and subsystems for a specific vehicle application, and</text></paragraph>
<paragraph id="H55CBF704CA44412982503E70EC15695B"><enum>(4)</enum><text>validating functionality and performance of components and subsystems for a specific vehicle application.</text></paragraph></subsection>
<subsection id="H0772A8F2323244C09407F7B5F5DECBF5"><enum>(e)</enum><header>Eligible Taxpayer</header><text>For purposes of this section, the term <term>eligible taxpayer</term> means any taxpayer—</text>
<paragraph id="HA8613CBFB0A941CF8682007297B81F99"><enum>(1)</enum><text>for which more than 50 percent of its gross receipts for the taxable year is derived from the manufacture of motor vehicles or any component parts of such vehicles, and</text></paragraph>
<paragraph id="H2B78AAFD62CD473DBC6CB5FED08ECDE"><enum>(2)</enum><text>which has not submitted an application for financial assistance under the program established under section 201(b)(2) of the Breaking Our Long-Term Dependence Energy Act of 2006.</text></paragraph></subsection>
<subsection id="HB4DC4BD3B0AC47189D7974C5A6F621C0"><enum>(f)</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="HFAE6B539A97F41E79300BD6838AD38AC"><enum>(1)</enum><text>the sum of—</text>
<subparagraph id="H291099A6D643420D88BA83427E9393BE"><enum>(A)</enum><text>the regular tax liability (as defined in section 26(b)) for such taxable year, plus</text></subparagraph>
<subparagraph id="H93DBC430E3A94292954FD6516D37800"><enum>(B)</enum><text>the tax imposed by section 55 for such taxable year and any prior taxable year beginning after 1986 and not taken into account under section 53 for any prior taxable year, over</text></subparagraph></paragraph>
<paragraph id="HA0E47FE362474F329200879F323505E3"><enum>(2)</enum><text>the sum of the credits allowable under subpart A and sections 27, 30, and 30B for the taxable year.</text></paragraph></subsection>
<subsection id="HE037A4E02974429600A29AB9C73E83B"><enum>(g)</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="H10870EC3C549453180DC172443AA379E"><enum>(h)</enum><header>No Double Benefit</header>
<paragraph id="H3D7D8B09AAD0472E992D4C042674BF4"><enum>(1)</enum><header>Coordination with other deductions and credits</header><text>Except as provided in paragraph (2), 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="H44AC8D15F5074B2BA303DC889B350084"><enum>(2)</enum><header>Research and development costs</header>
<subparagraph id="HDE4240ACD72F479A00BE57BCDC984B7"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), any amount described in subsection (b)(1)(C) 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="H423A57BC3CB74DAABD9FE5B8B5B7B7F6"><enum>(B)</enum><header>Costs taken into account in determining base period research expenses</header><text>Any amounts described in subsection (b)(1)(C) 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>
<clause indent="up3" id="H05A9E9F1569048F685A3E5E815F25BE3"><enum>(i)</enum><header>Business Carryovers Allowed</header><text>If the credit allowable under subsection (a) for a taxable year exceeds the limitation under subsection (f) 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></clause></subparagraph></paragraph></subsection>
<subsection id="H3B846B88A2C54C74B9E0B574C2114728"><enum>(j)</enum><header>Special Rules</header><text>For purposes of this section, 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></subsection>
<subsection id="H210D4645AF7443FD9F702483C555B2FC"><enum>(k)</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="H7D6C5C9E50CD4AB3AD3F0447C7839663"><enum>(l)</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="H76707C5ED9624D02BE19F702ACEEF684"><enum>(m)</enum><header>Termination</header><text>This section shall not apply to any qualified investment after December 31, 2015.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H5C86BFC520EB4EFAADF48FDC68BF24D0"><enum>(B)</enum><header>Conforming amendments</header>
<clause id="H02F18111776C498B817BE7B7FB46B3E"><enum>(i)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)</external-xref> of the Internal Revenue Code of 1986, as amended by this Act, is amended by striking <quote>and</quote> at the end of paragraph (37), by striking the period at the end of paragraph (38) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="HBF787F947EFD4026B5D4DF29151F9452">
<paragraph id="H6A940B8EDF58452C00D4F9110598367B"><enum>(39)</enum><text>to the extent provided in section 30D(g).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause>
<clause id="H8206485F9B0742B2A4A6095D57EB5D01"><enum>(ii)</enum><text>Section 6501(m) of such Code, as amended by this Act, is amended by inserting <quote>30D(k),</quote> after <quote>30C(e)(5),</quote>.</text></clause>
<clause id="H6C7A2DA2B51A40AA803D6F57376B08C8"><enum>(iii)</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 style="OLC" id="H3B9569C3580B4CFF9919F7AD4626B998">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 30D Advanced technology motor vehicles manufacturing credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph id="H53CA008FC8E640718077F7D5E9062EB"><enum>(C)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to amounts incurred in taxable years beginning after December 31, 2006.</text></subparagraph></paragraph>
<paragraph id="H046BA93309534B448F396DBEB7FE7111"><enum>(2)</enum><header>Advanced technology motor vehicle manufacturer healthcare relief program</header>
<subparagraph id="HA84005B62C494C469C395C2398F2834E"><enum>(A)</enum><header>Coordinating task force</header><text>Not later than 6 months after the date of enactment of this Act, the Secretary of Energy, the Secretary of Health and Human Services, the Secretary of Transportation, and the Secretary of the Treasury shall establish, and appoint an equal number of representatives to, a task force (referred to in this paragraph as the <quote>task force</quote>) to administer the program established under this paragraph.</text></subparagraph>
<subparagraph id="H6296D3EE0737415598F3657FE55C4005"><enum>(B)</enum><header>Establishment of program</header>
<clause id="H6EBABCFF0DE5458600CA97969B30001F"><enum>(i)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this Act, the task force established under subparagraph (A) shall establish a program to provide financial assistance to eligible domestic automobile manufacturers for the costs incurred in providing health benefits to their retired employees.</text></clause>
<clause id="H1250199B71C545C08E00664877C0498C"><enum>(ii)</enum><header>Consultation</header><text>In establishing the program under clause (i), the task force shall consult with representatives from the domestic automobile manufacturers, unions representing employees of such manufacturers, and consumer and environmental groups.</text></clause></subparagraph>
<subparagraph id="HACC84A58D1A14E0BB53944087FDBEB55"><enum>(C)</enum><header>Eligible domestic automobile manufacturer</header><text>To be eligible to receive financial assistance under the program established under subparagraph (B), a domestic automobile manufacturer shall—</text>
<clause id="H76FEF4E5EA9A4DEDB500664E1E00F29"><enum>(i)</enum><text>submit an application to the task force at such time, in such manner, and containing such information as the task force shall require;</text></clause>
<clause id="H0366ADB9A8E943E0BC57103F52B84464"><enum>(ii)</enum><text>certify that such manufacturer is providing full health care coverage to all of its domestic employees;</text></clause>
<clause id="H6C1B3629A9DC4A6BACB89D95C69DB6B2"><enum>(iii)</enum><text>certify that such manufacturer—</text>
<subclause id="H122FAFEB529444E09E9BA25E99008156"><enum>(I)</enum><text>has not elected the credit allowed under <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D</external-xref> of the Internal Revenue Code of 1986, and</text></subclause>
<subclause id="HF52BD644247E4E8F82BEF440146FF538"><enum>(II)</enum><text>but for such nonelection, would be an eligible taxpayer for purposes of such credit under section 30D(e)(1) of such Code; and</text></subclause></clause>
<clause id="H947F260E5B184877A73D0093BB9DEF6D"><enum>(iv)</enum><text>provide additional assurances and information as the task force may require, including information needed by the task force to audit the manufacturer’s compliance with the requirements of the program.</text></clause></subparagraph>
<subparagraph id="H001780EAA2854738AED3981FB1DB8200"><enum>(D)</enum><header>Limitation</header><text>The total amount of financial assistance that may be provided each year under the program under subparagraph (B) with respect to any single domestic automobile manufacturer shall not exceed an amount equal to the lesser of—</text>
<clause id="H659DD5AFE7BB4E1FB19DA77D0018F3F8"><enum>(i)</enum><text>the lesser of —</text>
<subclause id="H1B64E4CBFE2D4CAB89E39B3C13F77D82"><enum>(I)</enum><text>35 percent of the qualified investment of such manufacturer for such year (as determined under section 30D(b) of such Code without regard to the limitation under section 30D(f) of such Code), or</text></subclause>
<subclause id="HED921B8F68DB41B1AE31D649484308A0"><enum>(II)</enum><text>the aggregate retiree health care expenditures for such manufacturer, or</text></subclause></clause>
<clause id="H574C55F4518447FB96A700A7C87FB7C1"><enum>(ii)</enum><text>$250,000,000.</text></clause></subparagraph>
<subparagraph id="H6DAC0BDBD8254F8C8F347E97B6008DE7"><enum>(E)</enum><header>Application of certain rules</header><text>Rules similar to the rules under subsections (g) and (h) of section 30D of such Code shall apply with respect to any qualified investment used to determine the financial assistance provided under the program under subparagraph (B).</text></subparagraph>
<subparagraph id="H5B24DEBA9993464CB8C300AD372BB999"><enum>(F)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated, such sums as may be necessary in each fiscal year to carry out this paragraph.</text></subparagraph>
<subparagraph id="H9A9F96C9C039493F87EE15B6A1E22100"><enum>(G)</enum><header>Limitation on backsliding</header><text>To be eligible to receive financial assistance under subparagraph (B), a manufacturer shall provide assurances to the task force that fuel savings achieved with respect its average adjusted fuel economy will not result in decreases with respect to fuel economy elsewhere in the domestic fleet. The task force shall determine compliance with such assurances using accepted measurements of fuel savings.</text></subparagraph>
<subparagraph id="HDF28A023B96245BCB695DFD28228CAC"><enum>(H)</enum><header>Termination of program</header><text>The program established under subparagraph (B) shall terminate on December 31, 2015.</text></subparagraph></paragraph></subsection></section>
<section id="H87F35B68EF4D4245B0F00217C78389BB"><enum>202.</enum><header>Research and development program for new vehicle technologies</header>
<subsection id="H1190416B8C5F49F59E4599AD8B190180"><enum>(a)</enum><header>Purposes</header><text>The purposes of this section are—</text>
<paragraph id="H9FE28EF9B4C648CEB233A0E653C28C2E"><enum>(1)</enum><text>to enable and promote, in partnership with industry, comprehensive development, demonstration, and commercialization of a wide range of electric drive components, systems, and vehicles using diverse electric drive transportation technologies;</text></paragraph>
<paragraph id="H77E6593789E14B3496E5A8F69B23BC18"><enum>(2)</enum><text>to make critical public investments to help private industry, institutions of higher education, National Laboratories, and research institutions to expand innovation, industrial growth, and jobs in the United States;</text></paragraph>
<paragraph id="HCA28DB855D3840F0B2CCE40CC7D48F"><enum>(3)</enum><text>to expand the availability of the existing electric infrastructure for fueling light-duty transportation vehicles and other on-road and nonroad vehicles that are using petroleum and are mobile sources of emissions, with the goals of—</text>
<subparagraph id="H1A54BBB795DF410C9C996F3868D7F85F"><enum>(A)</enum><text>enhancing the energy security of the United States;</text></subparagraph>
<subparagraph id="H36900D38A37646279B8DDF86AD758B6C"><enum>(B)</enum><text>reducing dependence on imported oil; and</text></subparagraph>
<subparagraph id="H8DA6F6487357485D9E963040BE9C2780"><enum>(C)</enum><text>reducing emissions through the expansion of grid supported mobility;</text></subparagraph></paragraph>
<paragraph id="H42383C515166427C98E8DE00D10015EC"><enum>(4)</enum><text>to accelerate the widespread commercialization of electric drive vehicle technology into all sizes and applications of vehicles, including commercialization of plug-in hybrid electric vehicles and plug-in hybrid fuel cell vehicles; and</text></paragraph>
<paragraph id="HD55F9965ED2148B58872EBDAFBB7EA9"><enum>(5)</enum><text>to improve the energy efficiency of and reduce the petroleum use in transportation.</text></paragraph></subsection>
<subsection id="H03E34CF36E8A42AB004FE3008D59D656"><enum>(b)</enum><header>Program</header><text>The Secretary shall conduct a program of research, development, demonstration, and commercial application for electric drive transportation technology, including—</text>
<paragraph id="H7B4F2ADA1C5F4D79BF691735EE1F8F91"><enum>(1)</enum><text>high capacity, high-efficiency batteries;</text></paragraph>
<paragraph id="H497AEFFB2B2244EF0000A07E71903005"><enum>(2)</enum><text>high-efficiency on-board and off-board charging components;</text></paragraph>
<paragraph id="H72629B91868E497700CEB3C1D82326BB"><enum>(3)</enum><text>high-powered drive train systems for passenger and commercial vehicles and for nonroad equipment;</text></paragraph>
<paragraph id="HFE9557ACF2ED43F8BE3C7777B574001"><enum>(4)</enum><text>control system development and power train development and integration for plug-in hybrid electric vehicles, plug-in hybrid fuel cell vehicles, and engine dominant hybrid electric vehicles, including—</text>
<subparagraph id="H5207AA81D51E443C8673AEF150E3A702"><enum>(A)</enum><text>development of efficient cooling systems;</text></subparagraph>
<subparagraph id="H31661F2E82C54D4B82297300AB82EF16"><enum>(B)</enum><text>analysis and development of control systems that minimize the emissions profile when clean diesel engines are part of a plug-in hybrid drive system; and</text></subparagraph>
<subparagraph id="H76FB29E4B65F4ED1A7D1B852EEBB4527"><enum>(C)</enum><text>development of different control systems that optimize for different goals, including—</text>
<clause id="H37DF26CDD8F74153BC0099A22B51BC6B"><enum>(i)</enum><text>battery life;</text></clause>
<clause id="H377FF548EE404D21A56832B28CA82E20"><enum>(ii)</enum><text>reduction of petroleum consumption; and</text></clause>
<clause id="H9C28839A27DA46BFBC6D92768C091902"><enum>(iii)</enum><text>green house gas reduction;</text></clause></subparagraph></paragraph>
<paragraph id="H7DD15F1C4C0B4C978999C440385F17BA"><enum>(5)</enum><text>nanomaterial technology applied to both battery and fuel cell systems;</text></paragraph>
<paragraph id="H5D91FF9C29F04A3BAFE0F919E45223DA"><enum>(6)</enum><text>large-scale demonstrations, testing, and evaluation of plug-in hybrid electric vehicles in different applications with different batteries and control systems, including—</text>
<subparagraph id="HC2CC256C9F01490CA9616F7C2B3D7064"><enum>(A)</enum><text>military applications;</text></subparagraph>
<subparagraph id="H15269D2F53DB49BDA0E1D17E46E92FAC"><enum>(B)</enum><text>mass market passenger and light-duty truck applications;</text></subparagraph>
<subparagraph id="HA9F134926EB445249FA0905775A0F127"><enum>(C)</enum><text>private fleet applications; and</text></subparagraph>
<subparagraph id="HE984335EC4344365BCC48D3D4387C9FE"><enum>(D)</enum><text>medium- and heavy-duty applications;</text></subparagraph></paragraph>
<paragraph id="HE67327E6B2194664B5BD3B9371B044E"><enum>(7)</enum><text>development, in consultation with the Administrator of the Environmental Protection Agency, of procedures for testing and certification of criteria pollutants, fuel economy, and petroleum use for light-, medium-, and heavy-duty vehicle applications, including consideration of—</text>
<subparagraph id="H30CC96451EE6497CBF62526B888CE2C9"><enum>(A)</enum><text>the vehicle and fuel as a system, not just an engine; and</text></subparagraph>
<subparagraph id="H4318014ED33C42668338D2F52D215249"><enum>(B)</enum><text>nightly off-board charging; and</text></subparagraph></paragraph>
<paragraph id="HB637EAFE5B0D431A88AD93D242594E88"><enum>(8)</enum><text>advancement of battery and corded electric transportation technologies in mobile source applications by—</text>
<subparagraph id="HCE6DD01583AE4F2198A59C3A205C5DE"><enum>(A)</enum><text>improvement in battery, drive train, and control system technologies; and</text></subparagraph>
<subparagraph id="H09458C6EAE8D40A6BFC100B53F1F06F0"><enum>(B)</enum><text>working with industry and the Administrator of the Environmental Protection Agency to—</text>
<clause id="H0A2D032144F8408CADE253A1018F7077"><enum>(i)</enum><text>understand and inventory markets; and</text></clause>
<clause id="H4A6C84AA66684355A098DAD11115E5DF"><enum>(ii)</enum><text>identify and implement methods of removing barriers for existing and emerging applications.</text></clause></subparagraph></paragraph></subsection>
<subsection id="H0A57D635942A441A94E9EBC501AD3165"><enum>(c)</enum><header>Authorization of Appropriations</header><text>There is authorized to be appropriated to carry out this section $300,000,000 for each of fiscal years 2007 through 2012.</text></subsection></section>
<section id="HF13423548253427EA5B74E00D36E17A1"><enum>203.</enum><header>Consumer incentives to purchase advanced technology vehicles</header>
<subsection id="H80C9F84499014565846328AC8C464232"><enum>(a)</enum><header>Elimination of Limitation on Number of New Qualified Hybrid and Advanced Lean Burn Technology Vehicles Eligible for Alternative Motor Vehicle Credit</header>
<paragraph id="H48285977E60E4ABD8FB350770022DA93"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B</external-xref> of the Internal Revenue Code of 1986 is amended by striking subsection (f) and by redesignating subsections (g) through (j) as subsections (f) through (i), respectively.</text></paragraph>
<paragraph id="HDAAECAD120624308BFD37622D5DDA97"><enum>(2)</enum><header>Conforming amendments</header>
<subparagraph id="H094DF388C13D45CE91D3C27FD11C8B43"><enum>(A)</enum><text>Paragraphs (4) and (6) of <external-xref legal-doc="usc" parsable-cite="usc/26/30B">section 30B(h)</external-xref> of the Internal Revenue Code of 1986 are each amended by striking <quote>(determined without regard to subsection (g))</quote> and inserting <quote>determined without regard to subsection (f))</quote>.</text></subparagraph>
<subparagraph id="H175250602008456AAFD912DD98C73A"><enum>(B)</enum><text>Section 38(b)(25) of such Code is amended by striking <quote>section 30B(g)(1)</quote> and inserting <quote>section 30B(f)(1)</quote>.</text></subparagraph>
<subparagraph id="H9BB9264BB7AE437A8CB31600117F00CE"><enum>(C)</enum><text>Section 55(c)(2) of such Code is amended by striking <quote>section 30B(g)(2)</quote> and inserting <quote>section 30B(f)(2)</quote>.</text></subparagraph>
<subparagraph id="H420F23BA56774184AF3357B793A18FCA"><enum>(D)</enum><text>Section 1016(a)(36) of such Code is amended by striking <quote>section 30B(h)(4)</quote> and inserting <quote>section 30B(g)(4)</quote>.</text></subparagraph>
<subparagraph id="HF49DB241272944998E78783415AFE3F5"><enum>(E)</enum><text>Section 6501(m) of such Code is amended by striking <quote>section 30B(h)(9)</quote> and inserting <quote>section 30B(g)(9)</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="H25D70A19F4B341419D2786BC24EA3BE"><enum>(b)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to property placed in service after December 31, 2005, in taxable years ending after such date.</text></subsection></section>
<section id="HE6100B29FDED45B29664C4C24F31FFD8"><enum>204.</enum><header>Extension of full credit for qualified electric vehicles</header>
<subsection id="HCF41E0C3805A48D1A26C89583F00CB00"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30">Section 30(e)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>2006</quote> and inserting <quote>2010</quote>.</text></subsection>
<subsection id="H371BE013D0A4444EA541E5744B827225"><enum>(b)</enum><header>Repeal of Phaseout</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30">Section 30(b)</external-xref> of the Internal Revenue Code of 1986 (relating to limitations) is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2).</text></subsection>
<subsection id="H8C82F93335354A0884D0591FFB96D1DC"><enum>(c)</enum><header>Credit Allowable Against Alternative Minimum Tax</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/30">section 30(b)</external-xref> of the Internal Revenue Code of 1986, as redesignated by subsection (b), is amended to read as follows:</text>
<quoted-block style="OLC" id="H9357A14E8E024AF1BDE3D1EDAED6606C">
<paragraph id="HF2B8C4CFEBE34B39B1E71DF87156CB16"><enum>(2)</enum><header>Application with other credits</header><text>The credit allowed by subsection (a) for any taxable year shall not exceed the excess (if any) of—</text>
<subparagraph id="H0934D66606994DCDB1A53C71D0F3A824"><enum>(A)</enum><text>the sum of the regular tax for the taxable year plus the tax imposed by section 55, over</text></subparagraph>
<subparagraph id="H13B44410883F429E91F39006848C5D51"><enum>(B)</enum><text>the sum of the credits allowable under subpart A and section 27.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HE1A52E19D7A24DFFB50070D3FA96E900"><enum>(d)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2005.</text></subsection></section>
<enum>III</enum><header>ALTERNATIVE FUELS</header>
<section id="HA3F0904E3113410FA113AB3F1DBBBF15"><enum>301.</enum><header>Biofuels</header>
<subsection id="HF5DD7C1045B6459CA6F275AD9C6DDF"><enum>(a)</enum><header>Authorization of Appropriations</header><text>Section 931(c) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16231">42 U.S.C. 16231(c)</external-xref>) is amended—</text>
<paragraph id="HCD200AD2D001483600DC9019567F0048"><enum>(1)</enum><text>in paragraph (1), by striking <quote>$213,000,000</quote> and inserting <quote>$251,000,000</quote>;</text></paragraph>
<paragraph id="H0D346A87F39B45DA80311360E0BD31E0"><enum>(2)</enum><text>in paragraph (2)—</text>
<subparagraph id="H13F255B1300D4EEFAA053D957037A7F5"><enum>(A)</enum><text>by striking <quote>$251,000,000</quote> and inserting <quote>$270,000,000</quote>; and</text></subparagraph>
<subparagraph id="H24FA53FD604942628831C9D14EFCA9FE"><enum>(B)</enum><text>by striking <quote>and</quote>;</text></subparagraph></paragraph>
<paragraph id="HA757FDFA1A75487DA293834D65FCE787"><enum>(3)</enum><text>in paragraph (3)—</text>
<subparagraph id="H6F2F2081AE9F49B49CD3193E2929C521"><enum>(A)</enum><text>by striking <quote>$274,000,000</quote> and inserting <quote>$294,000,000</quote>; and</text></subparagraph>
<subparagraph id="H8613C30E5E47437D004584F6718C38E2"><enum>(B)</enum><text>by striking the period at the end and inserting a semicolon; and</text></subparagraph></paragraph>
<paragraph id="HE08D7D03E85A419E9D6EAD6500D75D78"><enum>(4)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="H69936AD658F2456380C2BF42822708E7">
<paragraph id="H29EB0BC984634BA0B12E52E555F4B449"><enum>(4)</enum><text>$318,000,000 for fiscal year 2010; and</text></paragraph>
<paragraph id="HBF001D821D26497CA0C30062C3B2B0C"><enum>(5)</enum><text>$343,000,000 for fiscal year 2011.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H4E083692B96849288DC6094C6BE7B5B"><enum>(b)</enum><header>Definition of Biomass</header><text>Section 932(a)(1)(A) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16232">42 U.S.C. 16232(a)(1)(A)</external-xref>) is amended by adding after <quote>organic material</quote> the following: <quote>(including sugarcane, sugar beets, sugar components, and cellulose)</quote>.</text></subsection></section>
<section id="HA27CF2F59E5D4E1EA2C3844DB8FF00C5"><enum>302.</enum><header>Continuation of bioenergy program</header><text display-inline="no-display-inline">Section 9010(c) of the Farm Security and Rural Investment Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/7/8108">7 U.S.C. 8108(c)</external-xref>) is amended—</text>
<paragraph id="H02F31D5A227040B60038D6285BE8B461"><enum>(1)</enum><text>by striking <quote>section—</quote> and all that follows through <quote>not more than</quote> and inserting <quote>section not more than</quote>; and</text></paragraph>
<paragraph id="HF669179BA87541B4AE1F46825E2CFF8D"><enum>(2)</enum><text>by striking <quote>2006;</quote> and all that follows and inserting <quote>2007.</quote>.</text></paragraph></section>
<section id="H6F533F6F49DA41D4B37F7962153EE59F"><enum>303.</enum><header>Renewable fuel standard</header><text display-inline="no-display-inline">Section 211(o)(2)(B) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(2)(B)</external-xref>) is amended—</text>
<paragraph id="H8C3895F47216457CAC529DA97F19316"><enum>(1)</enum><text>by striking clause (i) and inserting the following:</text>
<quoted-block style="OLC" id="H41F84740E96D4380BEEC9E9751ED1C0">
<clause id="HFBDFA93DCA07454596F800A42706F617"><enum>(i)</enum><header>Calendar years 2006 through 2025</header><text>For the purpose of subparagraph (A), the applicable volume for any of calendar years 2006 through 2025 shall be determined in accordance with 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>Applicable volume of </bold><bold>renewable fuel</bold></entry></row>
<row><entry colname="I49"><bold>Calendar year:</bold></entry><entry colname="I50"><bold>(in billions of gallons):</bold></entry></row></thead>
<tbody>
<row><entry colname="I51">2006</entry><entry colname="I52">4.0</entry></row>
<row><entry colname="I51">2007</entry><entry colname="I52">4.7</entry></row>
<row><entry colname="I51">2008</entry><entry colname="I52">5.5</entry></row>
<row><entry colname="I51">2009</entry><entry colname="I52">6.2</entry></row>
<row><entry colname="I51">2010</entry><entry colname="I52">6.9</entry></row>
<row><entry colname="I51">2011</entry><entry colname="I52">7.5</entry></row>
<row><entry colname="I51">2012</entry><entry colname="I52">7.6</entry></row>
<row><entry colname="I51">2013</entry><entry colname="I52">9.2</entry></row>
<row><entry colname="I51">2014</entry><entry colname="I52">11</entry></row>
<row><entry colname="I51">2015</entry><entry colname="I52">12.7</entry></row>
<row><entry colname="I51">2016</entry><entry colname="I52">14.4</entry></row>
<row><entry colname="I51">2017</entry><entry colname="I52">16.2</entry></row>
<row><entry colname="I51">2018</entry><entry colname="I52">17.9</entry></row>
<row><entry colname="I51">2019</entry><entry colname="I52">19.6</entry></row>
<row><entry colname="I51">2020</entry><entry colname="I52">21.4</entry></row>
<row><entry colname="I51">2021</entry><entry colname="I52">23.1</entry></row>
<row><entry colname="I51">2022</entry><entry colname="I52">24.8</entry></row>
<row><entry colname="I51">2023</entry><entry colname="I52">26.5</entry></row>
<row><entry colname="I51">2024</entry><entry colname="I52">28.3</entry></row>
<row><entry colname="I51">2025</entry><entry colname="I52">30.</entry></row></tbody></tgroup></table></clause> <after-quoted-block></after-quoted-block></quoted-block></paragraph>
<paragraph id="H2A67201E3C224346A27B620093C15F56"><enum></enum><text>; and</text></paragraph>
<paragraph id="H2D6E97AB45EA423BA39133BF6005D8FA"><enum>(2)</enum><text>in clause (ii)—</text>
<subparagraph id="H8E993898AA4C4AB1A8ADFDDB7800D400"><enum>(A)</enum><text>in the clause heading, by striking <quote><header-in-text level="clause">2013</header-in-text></quote> and inserting <quote><header-in-text level="clause">2026</header-in-text></quote>;</text></subparagraph>
<subparagraph id="HE3B1318A48B54FD894A8008E128F7002"><enum>(B)</enum><text>by striking <quote>2013</quote> and inserting <quote>2026</quote>; and</text></subparagraph>
<subparagraph id="HDF8E52B4B1F6490FB28500F56008F5B4"><enum>(C)</enum><text>by striking <quote>2012</quote> and inserting <quote>2025</quote>.</text></subparagraph></paragraph></section>
<section id="H1B90F67C16D9430FB3703C4D028220C9"><enum>304.</enum><header>Minimum quantity of renewable fuel derived from cellulosic biomass</header><text display-inline="no-display-inline">Section 211(o)(2)(B) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(2)(B)</external-xref>) is amended by striking clause (iii) and inserting the following:</text>
<quoted-block style="OLC" act-name="Clean Air Act" id="H12F5703E0A5448B29CB6625CA5892EB3">
<clause id="H942B76DE0643425994DDFEAFAF89965B"><enum>(iii)</enum><header>Minimum quantity derived from cellulosic biomass</header>
<subclause id="HE2B41D13E8AD4EA8A97C01ABF2AA3659"><enum>(I)</enum><header>In general</header><text>The applicable volume referred to in clauses (i) and (ii) shall contain a minimum of—</text>
<item id="H6A16EA5F5F90467500D4E0D86D1F3856"><enum>(aa)</enum><text>for calendar year 2010, 100,000,000 gallons that are derived from cellulosic biomass;</text></item>
<item id="HF9CAD6624F304DB4AA4413B0CE0847AC"><enum>(bb)</enum><text>for calendar year 2011, 150,000,000 gallons that are derived from cellulosic biomass;</text></item>
<item id="HB911E8B63E684922A6EED53817E43B7E"><enum>(cc)</enum><text>for calendar year 2012, 200,000,000 gallons that are derived from cellulosic biomass; and</text></item>
<item id="H3294D0DCE11D410BA1E87F6293E75917"><enum>(dd)</enum><text>for calendar year 2013 and each calendar year thereafter, 250,000,000 gallons that are derived from cellulosic biomass.</text></item></subclause>
<subclause id="H9BC8CAECEB6B491A98A8C59EE0064FA"><enum>(II)</enum><header>Ratio</header><text>For calendar year 2014 and each calendar year thereafter, the 2.5-to-1 ratio referred to in paragraph (4) shall not apply.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="HC6C960A7A46D4814AFEDAF02886DA249"><enum>305.</enum><header>Minimum quantity of renewable fuel derived from sugar</header><text display-inline="no-display-inline">Section 211(o)(2)(B) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(2)(B)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block style="OLC" act-name="Clean Air Act" id="HB911E31D42734DC7831082F6793BB142">
<clause id="H67281AA590E448AD9FBA3C0460935BA"><enum>(v)</enum><header>Minimum quantity derived from sugar</header>
<subclause id="H60C422B3963744CABDA980FEED37B8CE"><enum>(I)</enum><header>Definition of sugar</header><text>In this clause:</text>
<item id="H657AD30EB6B34BA28E4E9C2FC75B29B6"><enum>(aa)</enum><header>In general</header><text>The term <term>sugar</term> means sugarcane, sugar beets, or sugar components that are produced in the United States or imported subject to tariff rate quota allocations.</text></item>
<item id="HA399D84747E740878844DEB5E8002FF8"><enum>(bb)</enum><header>Exclusions</header><text>The term <term>sugar</term> does not include domestic or imported molasses, imported thick beet juice, or other imported products not subject to tariff-rate quota allocations that are used as feedstock.</text></item></subclause>
<subclause id="HC935E6B89DF144B98E84EFCC308E7B67"><enum>(II)</enum><header>Minimum number of gallons</header><text>The applicable volume referred to in clauses (i) and (ii) shall contain a minimum of—</text>
<item id="H321A172A899B42708DCDF2A1F3F4602D"><enum>(aa)</enum><text>for calendar year 2008, 100,000,000 gallons derived from sugar;</text></item>
<item id="H12C91A49CE734E868F5D809CE97D4E7C"><enum>(bb)</enum><text>for calendar year 2009, 108,000,000 gallons derived from sugar;</text></item>
<item id="HB3C01280DAD544008DAFBB88B904ED20"><enum>(cc)</enum><text>for calendar year 2010, 117,000,000 gallons derived from sugar;</text></item>
<item id="H51285C6217F447220031FB62D5A8BBE4"><enum>(dd)</enum><text>for calendar year 2011, 126,000,000 gallons derived from sugar;</text></item>
<item id="H01FC4515CA8D432AA8A15CD3FB812BBB"><enum>(ee)</enum><text>for calendar year 2012, 135,000,000 gallons derived from sugar;</text></item>
<item id="HF3E9AD4A05E14BE895F036C49FB4D5DA"><enum>(ff)</enum><text>for calendar year 2013, 144,000,000 gallons derived from sugar;</text></item>
<item id="HA7E735AAF57C4453B652C5235DBA6921"><enum>(gg)</enum><text>for calendar year 2014, 153,000,000 gallons derived from sugar;</text></item>
<item id="HD3B692EEAB7E43B38C382E068200D4A2"><enum>(hh)</enum><text>for calendar year 2015, 161,000,000 gallons derived from sugar;</text></item>
<item id="HC35BB00F05CC4903A892C0A8F279FE00"><enum>(ii)</enum><text>for calendar year 2016, 170,000,000 gallons derived from sugar;</text></item>
<item id="H3073A1C26C33467481930009C5AA56C0"><enum>(jj)</enum><text>for calendar year 2017, 179,000,000 gallons derived from sugar;</text></item>
<item id="H05C42E0D20624335863CA77BB573DB8F"><enum>(kk)</enum><text>for calendar year 2018, 188,000,000 gallons derived from sugar;</text></item>
<item id="H77BE5B5E237347C881E3E1C49BD3C3F6"><enum>(ll)</enum><text>for calendar year 2019, 197,000,000 gallons derived from sugar;</text></item>
<item id="HD50EF845F0C0443900B402DEDD3D1C"><enum>(mm)</enum><text>for calendar year 2020, 206,000,000 gallons derived from sugar;</text></item>
<item id="H6A16EF32A6484B76941DDA51A0B304B5"><enum>(nn)</enum><text>for calendar year 2021, 214,000,000 gallons derived from sugar;</text></item>
<item id="H930009A4254143DEBFFA49001C1172F1"><enum>(oo)</enum><text>for calendar year 2022, 223,000,000 gallons derived from sugar;</text></item>
<item id="HF5490E7A6E3D47719BF7CD0289A7D900"><enum>(pp)</enum><text>for calendar year 2023, 232,000,000 gallons derived from sugar;</text></item>
<item id="H8D9E0A559F9448C38500674CEB351200"><enum>(qq)</enum><text>for calendar year 2024, 241,000,000 gallons derived from sugar; and</text></item>
<item id="H3CA0395C138240289E17FBB2484E406C"><enum>(rr)</enum><text>for calendar year 2025 and each calendar year thereafter, 250,000,000 gallons derived from sugar.</text></item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H425E7452D5B94736ACA9ADECC7A25704"><enum>306.</enum><header>Ethanol promotion program</header><text display-inline="no-display-inline">Section 211(o) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block style="OLC" act-name="Clean Air Act" id="HA290C616D96840E3A3CAF4E87BF3273">
<paragraph id="HF506C1ABEA73455CBC13821190184EE3"><enum>(11)</enum><header>Ethanol promotion program</header>
<subparagraph id="H39FE8EA1EB0645E88976AF721471D668"><enum>(A)</enum><header>In general</header><text>The Secretary of Agriculture shall carry out a program to support the development, commercialization, and production of cellulosic ethanol and ethanol produced from sugar under this subsection.</text></subparagraph>
<subparagraph id="HA7B05B5712C24308B6B4C953A82F10FB"><enum>(B)</enum><header>Administration</header><text>The program—</text>
<clause id="H4658432CD079498FB08FBF4DEE577633"><enum>(i)</enum><text>may include loan guarantees, loans, grants, and other forms of assistance; and</text></clause>
<clause id="HFCC01F4A5133406587F10156F62F27AA"><enum>(ii)</enum><text>shall be designed to ensure the production of ethanol in quantities sufficient to meet the requirements of this subsection.</text></clause></subparagraph>
<subparagraph id="H640B3D12259742B59885E8D46B6B4C7"><enum>(C)</enum><header>Prevention of sugar loan forfeitures</header>
<clause id="H25699CFE5FA442F3A828FE918F18BB27"><enum>(i)</enum><header>In general</header><text>The Secretary shall carry out the program under this paragraph in a manner that is consistent with, and supports the continued no-cost implementation of, the sugar program established under section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/7/7272">7 U.S.C. 7272</external-xref>) in accordance with section 902 of the Food Security Act of 1985 (<external-xref legal-doc="public-law" parsable-cite="pl/99/198">Public Law 99–198</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/7/1446g">7 U.S.C. 1446g</external-xref> note).</text></clause>
<clause id="H0FAC41409499477A9FC4DCAB92F1E461"><enum>(ii)</enum><header>Administration</header><text>To carry out clause (i), in determining the overall allotment quantity for any crop of domestic sugar, the Secretary shall—</text>
<subclause id="H4C3E73D1962C4BC084F1683D9D58B59"><enum>(I)</enum><text>consider projected sugar used as sucrose ethanol feedstock as an addition to domestic food use; and</text></subclause>
<subclause id="HBA2BD68D1B0543E8ADB78C9D166D38FD"><enum>(II)</enum><text>count the sales of sugar to a sucrose ethanol producer against the annual marketing allocation of domestic sugar processors.</text></subclause></clause></subparagraph>
<subparagraph id="HDAF09AD8FFEE4FB4A56940D388B6CA83"><enum>(D)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out this paragraph.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H8EC35B17C7174890AD4B957EFB6103D2"><enum>307.</enum><header>Renewable fuel program for the diesel motor pool</header>
<subsection id="H7EEB215136BF4F60AF1093B22BBD4CD3"><enum>(a)</enum><header>In General</header><text>Section 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545</external-xref>) is amended by inserting after subsection (o) the following:</text>
<quoted-block style="OLC" act-name="Clean Air Act" id="H32A64AE7E50A48189FF93BBA192E524F">
<subsection id="HC75F4B9DE0D3445CBAFFF9EB36C4F0AD"><enum>(p)</enum><header>Renewable Fuel Program for the Diesel Motor Pool</header>
<paragraph id="H01D8024472354B1D8C9E9C93632CFCE"><enum>(1)</enum><header>Definition of renewable fuel</header>
<subparagraph id="HBE9C6630E79348DFA100F8F9CCAEC3E9"><enum>(A)</enum><header>In general</header><text>In this subsection, the term <term>renewable fuel</term> has the meaning given the term in subsection (o)(1)(C).</text></subparagraph>
<subparagraph id="H633370E435EF4558ABC437095C306D30"><enum>(B)</enum><header>Inclusions</header><text>The term <term>renewable fuel</term> includes a diesel fuel substitute produced from—</text>
<clause id="H40948AF24D324BF2AEE3F6971E4D3659"><enum>(i)</enum><text>animal fat;</text></clause>
<clause id="HE8A06FEFC64A4D9895005E39924DD916"><enum>(ii)</enum><text>vegetable oil;</text></clause>
<clause id="H252AF8A6140947E8AAAEAE76F7E2DF01"><enum>(iii)</enum><text>recycled yellow grease;</text></clause>
<clause id="H32CBF4DC16434D14899188F46378B5E5"><enum>(iv)</enum><text>thermal depolymerization;</text></clause>
<clause id="H551E8423FAFE41E4BB38D1C371966799"><enum>(v)</enum><text>thermochemical conversion;</text></clause>
<clause id="H64AC9B33BAF042A99135348202486200"><enum>(vi)</enum><text>the coal-to-liquid process (including the Fischer-Tropsch process); or</text></clause>
<clause id="H435B3057A4764573A5CD43BA5DA598F2"><enum>(vii)</enum><text>a diesel-ethanol blend.</text></clause></subparagraph></paragraph>
<paragraph id="HCAF095920D8B4E789782C0563D74F986"><enum>(2)</enum><header>Renewable fuel program</header>
<subparagraph id="H8231188C36614A7A849B7C6D76F46224"><enum>(A)</enum><header>Regulations</header>
<clause id="H1D437441F3E04CF28260DF7FCBA95B5"><enum>(i)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this subsection, the Administrator shall promulgate regulations to ensure that diesel sold or introduced into commerce in the United States (except in noncontiguous States or territories), on an annual average basis, contains the applicable volume of renewable fuel determined in accordance with subparagraph (B).</text></clause>
<clause id="H1DE6A95548064BCFBFDBD9E22608CF31"><enum>(ii)</enum><header>Provisions of regulations</header><text>Regardless of the date of promulgation, the regulations promulgated under clause (i)—</text>
<subclause id="HCE921AA52849416EB971E673D4D88496"><enum>(I)</enum><text>shall contain compliance provisions applicable to refineries, blenders, distributors, and importers, as appropriate, to ensure that the requirements of this paragraph are met; but</text></subclause>
<subclause id="HCAEBE3D21D114CE4A1004E6473801BBC"><enum>(II)</enum><text>shall not—</text>
<item id="H78929573C8734D82AA00BED11CBAD6B4"><enum>(aa)</enum><text>restrict geographic areas in which renewable fuel may be used; or</text></item>
<item id="H0C5BE9A1B989486FA0E7D7715C47EBBE"><enum>(bb)</enum><text>impose any per-gallon obligation for the use of renewable fuel.</text></item></subclause></clause>
<clause id="H52E2C6E38DCB42FB00BA9D4439BE43B2"><enum>(iii)</enum><header>Requirement in case of failure to promulgate regulations</header><text>If the Administrator fails to promulgate regulations under clause (i), the percentage of renewable fuel in the diesel motor pool sold or dispensed to consumers in the United States, on a volume basis, shall be .006 percent for calendar year 2008.</text></clause></subparagraph>
<subparagraph id="H23A64405AA3042719C3B444CA0A77061"><enum>(B)</enum><header>Applicable volume</header>
<clause id="H99EAFBB0E96443EF008DD3BE819B97B"><enum>(i)</enum><header>Calendar years 2008 through 2015</header><text>For the purpose of subparagraph (A), the applicable volume for any of calendar years 2008 through 2015 shall be determined in accordance with the following table:</text>
<table table-type="subformat" line-rules="no-gen" blank-lines-before="1">
<tgroup cols="2"><thead>
<row><entry colname="I49"><bold>Applicable volume of renewable</bold></entry></row>
<row><entry colname="I49"> <bold>fuel in diesel motor pool</bold></entry></row>
<row><entry colname="I49"> <bold>(in millions of gallons):</bold></entry><entry colname="I50"><bold>Calendar year:</bold></entry></row></thead>
<tbody>
<row><entry colname="I51">250</entry><entry colname="I52">2008 </entry></row>
<row><entry colname="I51">500</entry><entry colname="I52">2009 </entry></row>
<row><entry colname="I51">750</entry><entry colname="I52">2010 </entry></row>
<row><entry colname="I51">1,000</entry><entry colname="I52">2011 </entry></row>
<row><entry colname="I51">1,250</entry><entry colname="I52">2012 </entry></row>
<row><entry colname="I51">1,500</entry><entry colname="I52">2013 </entry></row>
<row><entry colname="I51">1,750</entry><entry colname="I52">2014 </entry></row>
<row><entry colname="I51">2,000</entry><entry colname="I52">2015.</entry></row></tbody></tgroup></table></clause>
<clause id="H29B0D926C68C4155B4F0B2C8F6F442CE"><enum>(ii)</enum><header>Calendar year 2016 and thereafter</header><text>The applicable volume for calendar year 2016 and each calendar year thereafter shall be determined by the Administrator, in coordination with the Secretary of Agriculture and the Secretary of Energy, based on a review of the implementation of the program during calendar years 2008 through 2015, including a review of—</text>
<subclause id="H123BADAE732E4D37B9B6A02829BDA91"><enum>(I)</enum><text>the impact of the use of renewable fuels on the environment, air quality, energy security, job creation, and rural economic development; and</text></subclause>
<subclause id="H2D1F04B324914802B2584F19C77B08C7"><enum>(II)</enum><text>the expected annual rate of future production of renewable fuels to be used as a blend component or replacement to the diesel motor pool.</text></subclause></clause>
<clause id="HC07DA7053DC7410796A0B368BD1F2C31"><enum>(iii)</enum><header>Minimum applicable volume</header><text>For the purpose of subparagraph (A), the applicable volume for calendar year 2016 and each calendar year thereafter shall be equal to the product obtained by multiplying—</text>
<subclause id="H5D00CB2A199F4FE098C100FB2B3FA6C"><enum>(I)</enum><text>the number of gallons of diesel that the Administrator estimates will be sold or introduced into commerce during the calendar year; and</text></subclause>
<subclause id="H752D7E602FC24FC1AE5D25F2BD5EAA8"><enum>(II)</enum><text>the ratio that—</text>
<item id="HCDD912D5881A4912BD8E08B3B9567D4E"><enum>(aa)</enum><text>2,000,000,000 gallons of renewable fuel; bears to</text></item>
<item id="H58BB6A9CD1474BC200E75FD8988585F3"><enum>(bb)</enum><text>the number of gallons of diesel sold or introduced into commerce during calendar year 2015.</text></item></subclause></clause></subparagraph></paragraph>
<paragraph id="HC3E4A39A7C4D4B4AA9794BE7E0ECCA27"><enum>(3)</enum><header>Applicable percentages</header>
<subparagraph id="H0175489216A84ED2883CB65B074DDCAB"><enum>(A)</enum><header>Provision of estimate of volumes of diesel sales</header><text>Not later than October 31 of each of calendar years 2007 through 2015, the Administrator of the Energy Information Administration shall provide to the Administrator an estimate, with respect to the following calendar year, of the volumes of diesel projected to be sold or introduced into commerce in the United States.</text></subparagraph>
<subparagraph id="H5F357E6AF81645BDB5B2C5A0534C0094"><enum>(B)</enum><header>Determination of applicable percentages</header>
<clause id="H22CE4569C8A044FD866C4BABE2BDC473"><enum>(i)</enum><header>In general</header><text>Not later than November 30 of each of calendar years 2008 through 2015, based on the estimate provided under subparagraph (A), the Administrator shall determine and publish in the Federal Register, with respect to the following calendar year, the renewable fuel obligation that ensures that the requirements of paragraph (2) are met.</text></clause>
<clause id="HD6C87B2DBB0A49F5AB681157EBABF286"><enum>(ii)</enum><header>Required elements</header><text>The renewable fuel obligation determined for a calendar year under clause (i) shall—</text>
<subclause id="H1FC1A8E7DBF743A48500F855672D97A1"><enum>(I)</enum><text>be applicable to refineries, blenders, and importers, as appropriate;</text></subclause>
<subclause id="H37B55E9D1EFA48D698949CE952814559"><enum>(II)</enum><text>be expressed in terms of a volume percentage of diesel sold or introduced into commerce in the United States; and</text></subclause>
<subclause id="H248371F3749D4EB784D9C100AC344335"><enum>(III)</enum><text>subject to subparagraph (C), consist of a single applicable percentage that applies to all categories of persons described in subclause (I).</text></subclause></clause></subparagraph>
<subparagraph id="H4E594E5FE0A841B38409A63100769FD0"><enum>(C)</enum><header>Adjustments</header><text>In determining the applicable percentage for a calendar year, the Administrator shall make adjustments to prevent the imposition of redundant obligations on any person described in subparagraph (B)(ii)(I).</text></subparagraph></paragraph>
<paragraph id="HA7535C1F099B4F03B66D72622DBF5700"><enum>(4)</enum><header>Credit program</header>
<subparagraph id="H5607651297F345AA911EAEA6006B3562"><enum>(A)</enum><header>In general</header><text>The regulations promulgated pursuant to paragraph (2)(A) shall provide for the generation of an appropriate amount of credits by any person that refines, blends, or imports diesel that contains a quantity of renewable fuel that is greater than the quantity required under paragraph (2).</text></subparagraph>
<subparagraph id="H6FAD4D20771049F2A41030B83BFCD3C6"><enum>(B)</enum><header>Use of credits</header><text>A person that generates a credit under subparagraph (A) may use the credit, or transfer all or a portion of the credit to another person, for the purpose of complying with regulations promulgated pursuant to paragraph (2).</text></subparagraph>
<subparagraph id="HFC275AC69E1D4505BBDF020900723C9C"><enum>(C)</enum><header>Duration of credits</header><text>A credit generated under this paragraph shall be valid during the 1-year period beginning on the date on which the credit is generated.</text></subparagraph>
<subparagraph id="H8ED5B7A8F5534021AE5F76F857BB522"><enum>(D)</enum><header>Inability to generate or purchase sufficient credits</header><text>The regulations promulgated pursuant to paragraph (2)(A) shall include provisions allowing any person that is unable to generate or purchase sufficient credits under subparagraph (A) to meet the requirements of paragraph (2) by carrying forward a credit generated during a previous year on the condition that the person, during the calendar year following the year in which the renewable fuel deficit is created—</text>
<clause id="H140B9DD645694B1FA147973FABCA35E8"><enum>(i)</enum><text>achieves compliance with the renewable fuel requirement under paragraph (2); and</text></clause>
<clause id="H43C645C87EEE45DAAFDC174362BF9D72"><enum>(ii)</enum><text>generates or purchases additional credits under subparagraph (A) to offset the deficit of the previous year.</text></clause></subparagraph></paragraph>
<paragraph id="H629D4DE8B3F34817A5DE3B3CB6463FBC"><enum>(5)</enum><header>Waivers</header>
<subparagraph id="H2CD38CC2858F44C6948B925500153F53"><enum>(A)</enum><header>In general</header><text>The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, may waive the requirements of paragraph (2) in whole or in part on receipt of a petition of 1 or more States by reducing the national quantity of renewable fuel for the diesel motor pool required under paragraph (2) based on a determination by the Administrator, after public notice and opportunity for comment, that—</text>
<clause id="HA1E67EDF6702464F9DCF252D0D76863"><enum>(i)</enum><text>implementation of the requirement would severely harm the economy or environment of a State, a region, or the United States; or</text></clause>
<clause id="H0B4F991D70FA406DA300258FC7C63218"><enum>(ii)</enum><text>there is an inadequate domestic supply of renewable fuel.</text></clause></subparagraph>
<subparagraph id="H5E76CFA096FB4F55B769E8587BD3F997"><enum>(B)</enum><header>Petitions for waivers</header><text>Not later than 90 days after the date on which the Administrator receives a petition under subparagraph (A), the Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, shall approve or disapprove the petition.</text></subparagraph>
<subparagraph id="HDD54397F53D64589AD8888DAF9ACE9B9"><enum>(C)</enum><header>Termination of waivers</header>
<clause id="H7ED825FEC1664EE3BC7314D21B4C736"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), a waiver under subparagraph (A) shall terminate on the date that is 1 year after the date on which the waiver is provided.</text></clause>
<clause id="H1761FEC10FC44D30A0251F2CCAD1CF47"><enum>(ii)</enum><header>Exception</header><text>The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, may extend a waiver under subparagraph (A), as the Administrator determines to be appropriate.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H3796493766EF459BA4E1E007D299325"><enum>(b)</enum><header>Penalties and Enforcement</header><text>Section 211(d) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(d)</external-xref>) is amended—</text>
<paragraph id="H89B8C838F0634D3184EF7B55500609C"><enum>(1)</enum><text>in paragraph (1), by striking <quote>or (o)</quote> each place it appears and inserting <quote>(o), or (p)</quote>; and</text></paragraph>
<paragraph id="H1A91626D765647A391F217E2C507EEE9"><enum>(2)</enum><text>in paragraph (2), by striking <quote>and (o)</quote> each place it appears and inserting <quote>(o), and (p)</quote>.</text></paragraph></subsection>
<subsection id="H3BB346E236964459B5174282F00095B9"><enum>(c)</enum><header>Technical Amendments</header><text>Section 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545</external-xref>) is amended—</text>
<paragraph id="H9822C07F2AFE41ECA3FDC4FC10E1C6AB"><enum>(1)</enum><text>in subsection (c)(4)(C), by redesignating the second clause (v) as clause (vi);</text></paragraph>
<paragraph id="HFC0C6DFD63004C658E821243E5B49F77"><enum>(2)</enum><text>in subsection (i)(4), by striking <quote>section 324</quote> each place it appears and inserting <quote>section 325</quote>;</text></paragraph>
<paragraph id="HE226842C6FA945A198D4A624FAEDC385"><enum>(3)</enum><text>in subsection (k)(10), by indenting subparagraphs (E) and (F) appropriately;</text></paragraph>
<paragraph id="H6A0221BD5C454CA9B9C78F981BB28D21"><enum>(4)</enum><text>in subsection (n), by striking <quote>section 219(2)</quote> and inserting <quote>section 216(2)</quote>;</text></paragraph>
<paragraph id="H084C499A934945B5862005BF311B62E6"><enum>(5)</enum><text>by redesignating the second subsection (r) and subsection (s) as subsections (s) and (t), respectively; and</text></paragraph>
<paragraph id="HEBB1EBD6E6664BA4B216CB2073321B48"><enum>(6)</enum><text>in subsection (t)(1) (as redesignated by paragraph (5)), by striking <quote>this subtitle</quote> and inserting <quote>this part</quote>.</text></paragraph></subsection></section>
<section id="H224878A17669497B95E453CD6E568897"><enum>308.</enum><header>Extension and modification of income and excise tax credits for renewable fuels</header>
<subsection id="H6E834B79AD224776A22542758B4E1CAA"><enum>(a)</enum><header>Income Tax Credits</header>
<paragraph id="H25C0D5E069CE47839876D99580DB119C"><enum>(1)</enum><header>Alcohol used as fuel</header>
<subparagraph id="HC9C9D1089CA24AA99B3418D41D168995"><enum>(A)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/40">section 40(e)</external-xref> of the Internal Revenue Code of 1986 is amended—</text>
<clause id="H408228BCF6A44DC4AB7CA0793BA7206"><enum>(i)</enum><text>by striking <quote>2010</quote> in subparagraph (A) and inserting <quote>2013</quote>, and</text></clause>
<clause id="H86CDCDA087114A12855F2E4F47A81448"><enum>(ii)</enum><text>by striking <quote>2011</quote> in subparagraph (B) and inserting <quote>2014</quote>.</text></clause></subparagraph>
<subparagraph id="HBE9875889D594333AAAE124BC6EBFF1D"><enum>(B)</enum><header>Reduced credit for ethanol blenders</header><text>Subsection (h) of section 40 of such Code is amended—</text>
<clause id="H2A89F522F12543CF87D314925349E00"><enum>(i)</enum><text>by striking <quote>2010</quote> in paragraph (1) and inserting <quote>2013</quote>, and</text></clause>
<clause id="H6147C96CE284464AA6003F62AF494351"><enum>(ii)</enum><text>by striking <quote>2010</quote> in the table in paragraph (2) and inserting <quote>2013</quote>.</text></clause></subparagraph></paragraph>
<paragraph id="HF56F7EF7C4014C12BEB1D55B9F985528"><enum>(2)</enum><header>Biodiesel and renewable diesel used as fuel</header><text>Subsection (g) of <external-xref legal-doc="usc" parsable-cite="usc/26/40A">section 40A</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>2008</quote> and inserting <quote>2013</quote>.</text></paragraph>
<paragraph id="HEE425399046B4193A7F20000DCEE3536"><enum>(3)</enum><header>Small ethanol producer credit expanded for producers of sucrose and cellulosic ethanol</header>
<subparagraph id="H6FABDD4D6CEE4DACB56750C959A0F2A6"><enum>(A)</enum><header>In general</header><text>Subparagraph (C) of section 40(b)(4) of such Code (relating to small ethanol producer credit) is amended by inserting <quote>(30,000,000 gallons for any sucrose or cellulosic ethanol producer)</quote> after <quote>15,000,000 gallons</quote>.</text></subparagraph>
<subparagraph id="HBB9B137ADDDF467C83512B14144D7FF9"><enum>(B)</enum><header>Sucrose or cellulosic ethanol producer</header><text>Section 40(b)(4) of such Code is amended by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="HD239D4D0913E4F84BF59E880FDBECF49">
<subparagraph id="H213BA678B92C4C9FAFB77702EC2121E9"><enum>(E)</enum><header>Sucrose or cellulosic ethanol producer</header>
<clause id="HCF1925E9767F44748D6BE6BC9F85092"><enum>(i)</enum><header>In general</header><text>For purposes of this paragraph, the term <term>sucrose or cellulosic ethanol producer</term> means a producer of ethanol using sucrose feedstock or cellulosic feedstock.</text></clause>
<clause id="HA6EE094189C54008B27F2F72A6BC3E76"><enum>(ii)</enum><header>Sucrose feedstock</header><text>For purposes of clause (i), the term <term>sucrose feedstock</term> means any raw sugar, refined sugar, or sugar equivalents (including juice and extract). Such term does not include any molasses, beet thick juice, or other similar products as determined by the Secretary.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H82B400204F3641E695A2D4B1A77B10A4"><enum>(C)</enum><header>Conforming amendments</header>
<clause id="HC34F722C5C4C4247883BB44929B9A1D4"><enum>(i)</enum><text>Section 40(g)(2) of such Code is amended by striking <quote>15,000,000 gallon limitation</quote> and inserting <quote>15,000,000 and 30,000,000 gallon limitations</quote>.</text></clause>
<clause id="HF1DAA4BB44B34FF7BD715B63979CC5FB"><enum>(ii)</enum><text>Section 40(g)(5)(B) of such Code is amended by striking <quote>15,000,000 gallons</quote> and inserting <quote>the gallon limitation under subsection (b)(4)(C)</quote>.</text></clause></subparagraph></paragraph></subsection>
<subsection id="H51B0BB4FEE584C309D001422911D20EE"><enum>(b)</enum><header>Excise Tax Credits</header>
<paragraph id="H17BA1512255D417DAE2DD51C19CAA88"><enum>(1)</enum><header>Alcohol fuel mixture credit</header><text>Paragraph (5) of <external-xref legal-doc="usc" parsable-cite="usc/26/6426">section 6426(b)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>2010</quote> and inserting <quote>2013</quote>.</text></paragraph>
<paragraph id="HB32A03D2945240A3A86C7787262330B5"><enum>(2)</enum><header>Biodiesel mixture credit</header><text>Paragraph (6) of <external-xref legal-doc="usc" parsable-cite="usc/26/6426">section 6426(c)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>2010</quote> and inserting <quote>2013</quote>.</text></paragraph>
<paragraph id="H18A63811F3ED4D4FBD32A88617E36DCC"><enum>(3)</enum><header>Alternative fuel credit</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/6426">section 6426(d)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>2009</quote> and inserting <quote>2013</quote>.</text></paragraph></subsection>
<subsection id="H0F7699B559B445BAA99E98C6C0D512D1"><enum>(c)</enum><header>Payments for Fuel Used in Trade or Business</header>
<paragraph id="HB2C8C0488ABE489AB9A142C88CA0F74B"><enum>(1)</enum><header>Alcohol fuel mixtures</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)(5)(A)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>2010</quote> and inserting <quote>2013</quote>.</text></paragraph>
<paragraph id="HEB01612309294612B70009989B0202D9"><enum>(2)</enum><header>Biodiesel mixtures</header><text>Section 6427(e)(5)(B) of such Code is amended by striking <quote>2008</quote> and inserting <quote>2013</quote>.</text></paragraph>
<paragraph id="HAD006D0639774F21BF564DC35E235485"><enum>(3)</enum><header>Alternative fuel and alternative fuel mixtures</header><text>Section 6427(e)(5)(C) of such Code is amended by striking <quote>2009</quote> and inserting <quote>2013</quote>.</text></paragraph></subsection>
<subsection id="HAA50C8778F2D484885FB46053F4FE1B"><enum>(d)</enum><header>Effective Date</header>
<paragraph id="HFCFC9ABBCA8F4DFEB4DE5560781E698F"><enum>(1)</enum><header>Subsection <enum-in-header>(a)</enum-in-header></header><text>The amendments made by subsection (a) shall apply to taxable years beginning after the date of the enactment of this Act.</text></paragraph>
<paragraph id="H67B6E0EAEEC24F16002059E9CDD07BB4"><enum>(2)</enum><header>Subsection <enum-in-header>(b)</enum-in-header></header><text>The amendments made by subsection (b) shall apply to any sale, use, or removal for any period after the date of enactment of this Act.</text></paragraph>
<paragraph id="H4EEA8A0728B74BA1A881694D9DC88C5C"><enum>(3)</enum><header>Subsection <enum-in-header>(c)</enum-in-header></header><text>The amendments made by subsection (c) shall apply to any sale or use for any period after the date of enactment of this Act.</text></paragraph></subsection></section>
<section id="HB54007F693474AF0AD599083A091D93C"><enum>309.</enum><header>Domestic refinery diversification</header>
<subsection id="H906980F2C40A4ACA869F99DE2F25AB14"><enum>(a)</enum><header>Program</header><text>The Secretary shall award grants for qualifying projects to support the commercial deployment of CTL refineries.</text></subsection>
<subsection id="HC91C714A43284A4296370032B3A16597"><enum>(b)</enum><header>Project Criteria</header><text>A project shall be considered to be a qualifying project under this section if the Secretary determines that—</text>
<paragraph id="H11AAF5F20E45471785922C5546B5474"><enum>(1)</enum><text>the purpose of the project is the deployment of a CTL refinery in the United States;</text></paragraph>
<paragraph id="H40EDE1FB6C784E53949300B0D322118C"><enum>(2)</enum><text>the grant recipient is financially viable without the receipt of additional Federal funding;</text></paragraph>
<paragraph id="H4AF5EDEBCB4348C7B5F723EC2E32B3E7"><enum>(3)</enum><text>the project site has been identified;</text></paragraph>
<paragraph id="H2A9C78B9BCBF4C23A2BC38A1505757B0"><enum>(4)</enum><text>a preliminary feasibility study has been completed;</text></paragraph>
<paragraph id="H6A2624277899477D88A099432D497D13"><enum>(5)</enum><text>a long-term source of coal has been identified and secured; and</text></paragraph>
<paragraph id="H7EF594D900D043E6ADC784BF9488201D"><enum>(6)</enum><text>the refinery will be designed to have—</text>
<subparagraph id="HBD9129FC36D145C0B50078CF369869AB"><enum>(A)</enum><text>a production capacity of at least 12,000 barrels per day; and</text></subparagraph>
<subparagraph id="H2B61B6E4509D45DDB700596174E3C3F8"><enum>(B)</enum><text>carbon capture capability.</text></subparagraph></paragraph></subsection>
<subsection id="H20D58E77291F43AFA0E5BA4BCF3927"><enum>(c)</enum><header>Use</header><text>A grant under this section may be used to offset costs associated with the deployment of a CTL refinery in the United States, such as the costs of preliminary engineering and engineering design specifications.</text></subsection>
<subsection id="H5C8E20E322884AA3B83001A5F8C28B5"><enum>(d)</enum><header>Maximum Amount</header><text>The amount of a grant made for a qualifying project under this section shall not exceed $50,000,000.</text></subsection>
<subsection id="HDC4C82AEA4F140AF8F213CF65ED6FDBB"><enum>(e)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this Act, and annually thereafter until amounts made available to carry out this section are expended, the Secretary shall submit to Congress a report describing—</text>
<paragraph id="H5DED6E9BA2C84928AFB649EAECF4A77B"><enum>(1)</enum><text>the status of projects funded under this section; and</text></paragraph>
<paragraph id="HB9837459E28C4862A25B549F1EFFB8FA"><enum>(2)</enum><text>the reasons for the denial of any grant for a project funded under this section.</text></paragraph></subsection>
<subsection id="HD966F2C477B3431DB5B217192441AE8F"><enum>(f)</enum><header>Authorization of Appropriations</header><text>There is authorized to be appropriated to the Secretary to carry out this section $500,000,000, to remain available until expended.</text></subsection></section>
<section id="H5376B756C00A49D8ACE8AE992871C431"><enum>310.</enum><header>Transition to a hydrogen-based economy</header>
<subsection id="H08673E00C1FC4EC48B4F7BF90325C7E4"><enum>(a)</enum><header>In General</header><text>There are authorized to be appropriated to the Secretary the following amounts to carry out projects to promote the transition to a hydrogen-based economy:</text>
<paragraph id="H8C25FEF60DDD4386ADC2D7200DB05EA"><enum>(1)</enum><text>For 4 demonstration projects under which hydrogen is produced from 3 or more feedstocks, $200,000,000 for each of fiscal years 2007 through 2011, of which each demonstration project shall receive $50,000,000 for each fiscal year.</text></paragraph>
<paragraph id="H5155E8E7C8C64B54861E241DC517B780"><enum>(2)</enum><text>For hydrogen storage for on-road and off-road applications—</text>
<subparagraph id="H2B5B8FA606634120800830784790B99D"><enum>(A)</enum><text>$38,000,000 for fiscal year 2007;</text></subparagraph>
<subparagraph id="H9BA58DC4D7DB47338EFE72E1766B38F2"><enum>(B)</enum><text>$45,000,000 for fiscal year 2008;</text></subparagraph>
<subparagraph id="H01FA95C471F7471587F0BF5B00D0AB6C"><enum>(C)</enum><text>$53,000,000 for fiscal year 2009;</text></subparagraph>
<subparagraph id="H540BC4DB232F474CBC1F3312E3C6C4C5"><enum>(D)</enum><text>$60,000,000 for fiscal year 2010; and</text></subparagraph>
<subparagraph id="H8896D0EA0A2849DA8E30A34CD0A8887B"><enum>(E)</enum><text>$70,000,000 for fiscal year 2010.</text></subparagraph></paragraph>
<paragraph id="H864FCBF972844CE8BD40CACEC819BDD8"><enum>(3)</enum><text>For technologies for the production and purification of hydrogen with pressures of 10,000 pounds per square inch or more—</text>
<subparagraph id="H416C44CEDE2748429142FAF4D2310A"><enum>(A)</enum><text>$40,000,000 for fiscal year 2007;</text></subparagraph>
<subparagraph id="HA4CAAE4712164857B96CC9F000D15094"><enum>(B)</enum><text>$48,000,000 for fiscal year 2008;</text></subparagraph>
<subparagraph id="H055F8C68AA0B4E7FBECEAEBFC1E722EE"><enum>(C)</enum><text>$56,000,000 for fiscal year 2009; and</text></subparagraph>
<subparagraph id="H9527A01BCBA745B49DFD0004741611BD"><enum>(D)</enum><text>$62,000,000 for fiscal year 2010.</text></subparagraph></paragraph>
<paragraph id="H4DA4C20173E343ABB3276487C0619DA0"><enum>(4)</enum><text>For the incorporation of carbon sequestration strategies into hydrogen production technologies for carbon sequestered from plants used to produce hydrogen, using as a model the program established under section 963 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16293">42 U.S.C. 16293</external-xref>)—</text>
<subparagraph id="HF77B4D510502487FB1977CA44266682E"><enum>(A)</enum><text>$50,000,000 for fiscal year 2007;</text></subparagraph>
<subparagraph id="H7F5CB92B52884DBBA983E5E27F073E8"><enum>(B)</enum><text>$75,000,000 for fiscal year 2008;</text></subparagraph>
<subparagraph id="H735D819072B0446AAAFEC1EA902F913B"><enum>(C)</enum><text>$100,000,000 for fiscal year 2009; and</text></subparagraph>
<subparagraph id="H2367FF1E6E954BFCB5C2BF1938182692"><enum>(D)</enum><text>$110,000,000 for fiscal year 2010.</text></subparagraph></paragraph>
<paragraph id="HC44097D8636E4F5AA6C9F8F034AE9177"><enum>(5)</enum><text>For development of a national hydrogen infrastructure plan, such sums as are necessary.</text></paragraph>
<paragraph id="H4BC40D7F02854D09A69E29B4655205E3"><enum>(6)</enum><text>For the National Center for Hydrogen Technology designated by the Department of Energy—</text>
<subparagraph id="HA7BA2468044C4877A3717CAE2F7D8EE9"><enum>(A)</enum><text>$3,500,000 for fiscal year 2007;</text></subparagraph>
<subparagraph id="H30E9B904A9CE4A2000D89E2DF490AA62"><enum>(B)</enum><text>$4,000,000 for fiscal year 2008;</text></subparagraph>
<subparagraph id="H9ADF67C4197B4590B2672E3BB077D41E"><enum>(C)</enum><text>$4,500,000 for fiscal year 2009; and</text></subparagraph>
<subparagraph id="H209D98D0F52E4848B1077982C1ABF962"><enum>(D)</enum><text>$5,000,000 for fiscal year 2010.</text></subparagraph></paragraph>
<paragraph id="HD781D337E56D45A5AD76006FB493AFB6"><enum>(7)</enum><text>For regional centers for hydrogen technology designated by the Department of Energy, $17,000,000 for fiscal year 2007.</text></paragraph>
<paragraph id="H490798689EDD4BEAA0F48C74B1184F49"><enum>(8)</enum><text>For the Controlled Hydrogen Fleet and Infrastructure Demonstration Validation Program of the Department of Energy—</text>
<subparagraph id="H202F4C3AC1894BD4ACB2664379EDC9C1"><enum>(A)</enum><text>for the controlled hydrogen fleet—</text>
<clause id="HC772782E36E84C95B28F33DC209E9751"><enum>(i)</enum><text>$30,000,000 for fiscal year 2007;</text></clause>
<clause id="H6E5AEA2BA810492C919EB7D57969691C"><enum>(ii)</enum><text>$35,000,000 for fiscal year 2008;</text></clause>
<clause id="H85175B600B384CD69DA8B649D8A70069"><enum>(iii)</enum><text>$41,000,000 for fiscal year 2009; and</text></clause>
<clause id="HAB337968E0CF4AD88CB5CC351EDA9DD2"><enum>(iv)</enum><text>$47,000,000 for fiscal year 2010; and</text></clause></subparagraph>
<subparagraph id="H60A344D000384E9400EF331E6E3B162"><enum>(B)</enum><text>for infrastructure demonstration validation—</text>
<clause id="HF8D53BC82DFD425AB8CFDD92E131D273"><enum>(i)</enum><text>$18,000,000 for fiscal year 2007;</text></clause>
<clause id="HB8BF6BF288A04F2E9F8632AE7BDA993"><enum>(ii)</enum><text>$22,000,000 for fiscal year 2008;</text></clause>
<clause id="HE0F33828E3E1464E941FC9EF9D2DFE1C"><enum>(iii)</enum><text>$26,000,000 for fiscal year 2009; and</text></clause>
<clause id="H45259A8CCC174FFBB9D1CB7C41C1B9FE"><enum>(iv)</enum><text>$30,000,000 for fiscal year 2010.</text></clause></subparagraph></paragraph>
<paragraph id="H46E41F9C9A7F4662A448DD207DF7C58B"><enum>(9)</enum><text>For the hydrogen automotive technologies programs of the Department of Defense—</text>
<subparagraph id="H13CBE9A1562D4D8791779598D24F9D77"><enum>(A)</enum><text>$25,000,000 for fiscal year 2007;</text></subparagraph>
<subparagraph id="H75B5691F3A9642E2B5DB81DE5BDB4FE"><enum>(B)</enum><text>$30,000,000 for fiscal year 2008;</text></subparagraph>
<subparagraph id="H6022C12E841F46B1A12D002FED1614C9"><enum>(C)</enum><text>$35,000,000 for fiscal year 2009; and</text></subparagraph>
<subparagraph id="HF783E82A97324DC797D159E14A3AE79"><enum>(D)</enum><text>$40,000,000 for fiscal year 2010.</text></subparagraph></paragraph></subsection>
<subsection id="H6B23CD710F724E668E0629E6E4049EEF"><enum>(b)</enum><header>Federal and State Procurement of Fuel Cell Vehicles and Hydrogen Energy Systems</header><text>Section 782(e) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16122">42 U.S.C. 16122(e)</external-xref>) is amended by striking paragraphs (2) and (3) and inserting the following:</text>
<quoted-block style="OLC" id="H1A118D777A044537AA184F85E9E9ED4C">
<paragraph id="HDEA2261264F4466F92E2FFDE2F7D6D78"><enum>(2)</enum><text>$35,000,000 for fiscal year 2009;</text></paragraph>
<paragraph id="HD04C6BECD89A43C081CD63C5ADABC3BC"><enum>(3)</enum><text>$80,000,000 for fiscal year 2010; and</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HC8EDE6F91D214159A92CF8FBCF00B1D9"><enum>(c)</enum><header>Federal Procurement of Stationary, Portable, and Micro Fuel Cells</header><text>Section 783(d) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16123">42 U.S.C. 16123(d)</external-xref>) is amended by striking paragraphs (2) through (5) and inserting the following:</text>
<quoted-block style="OLC" id="HA3D0E45E6E8A4C99978959A39200445E">
<paragraph id="HC397191E2FF84D8D84B35A62F4007A4"><enum>(2)</enum><text>$75,000,000 for fiscal year 2007;</text></paragraph>
<paragraph id="H66C918B12D69439EBC7CF1F60DA79E5"><enum>(3)</enum><text>$100,000,000 for fiscal year 2008;</text></paragraph>
<paragraph id="HFE2FC1611549475A98FF16F0DDBCBC69"><enum>(4)</enum><text>$125,000,000 for fiscal year 2009;</text></paragraph>
<paragraph id="HE8D51049413F49128EFE7E0794E28C9"><enum>(5)</enum><text>$150,000,000 for fiscal year 2010; and</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H2325E3CB53D34038965999E55C00FA6F"><enum>(d)</enum><header>Hydrogen Programs</header><text>Section 805 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16154">42 U.S.C. 16154</external-xref>) is amended—</text>
<paragraph id="HD0DB2910A0394C08004375225FE9541B"><enum>(1)</enum><text>in subsection (h), by striking paragraphs (3) through (5) and inserting the following:</text>
<quoted-block style="OLC" id="H21617672D88540659B64666F0820A3B5">
<paragraph id="H655224C8EC6A40BF8900C8BA3C6C00"><enum>(3)</enum><text>$232,000,000 for fiscal year 2008;</text></paragraph>
<paragraph id="H46604ADE28A94D84875F4BBD8E005D00"><enum>(4)</enum><text>$252,500,000 for fiscal year 2009;</text></paragraph>
<paragraph id="HD8A49FF2D3FA43DA88009BB17034047B"><enum>(5)</enum><text>$283,000,000 for fiscal year 2010; and</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="HA3495EC01A754D20BDE04B518B4EA17C"><enum>(2)</enum><text>in subsection (i), by striking paragraphs (2) through (5) and inserting the following:</text>
<quoted-block style="OLC" id="H90CC2BDF17B749779FAA8750AA630063">
<paragraph id="H05AFE452173F4FA7821968BC26C12C92"><enum>(2)</enum><text>$180,000,000 for fiscal year 2007;</text></paragraph>
<paragraph id="H73DA260B3B494449B0E3D9E77349B505"><enum>(3)</enum><text>$200,000,000 for fiscal year 2008;</text></paragraph>
<paragraph id="H673F47E6EA8D4AD1B5FBF3EDF2CA12E"><enum>(4)</enum><text>$220,000,000 for fiscal year 2009;</text></paragraph>
<paragraph id="HC0BE8AE1549141EA9B896DB6C7453FBF"><enum>(5)</enum><text>$240,000,000 for fiscal year 2010; and</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section>
<section id="HD9CF2F4C7CA440EC80216B5510F56622"><enum>311.</enum><header>Modification and extension of alternative vehicle refueling property credit</header>
<subsection id="HB8F8FE3B10A241BB94CCF4F46003CE0"><enum>(a)</enum><header>Increase in Credit Amount</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/30C">section 30C</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>30 percent</quote> and inserting <quote>50 percent</quote>.</text></subsection>
<subsection id="H8607C24A6ED14049A65E2134839006DF"><enum>(b)</enum><header>Credit Allowable Against Alternative Minimum Tax</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/30C">section 30C</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block style="OLC" id="HEBC99D61AED641D0AC4643E296226B2">
<paragraph id="H80E91D2BD0744B2EBC8D725644E02EDB"><enum>(2)</enum><header>Personal credit</header><text>The credit allowed under subsection (a) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) of—</text>
<subparagraph id="HA65EF76D8B154AB7A8A39776B2ACE792"><enum>(A)</enum><text>the sum of the regular tax for the taxable year plus the tax imposed by section 55, over</text></subparagraph>
<subparagraph id="H322F63AB369A4CB9891F5B712D550728"><enum>(B)</enum><text>the sum of the credits allowable under subpart A and sections 27, 30, and 30B.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H734298A3AEC645E8BCFAB63D1C244550"><enum>(c)</enum><header>Extension of Credit</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/30C">section 30C(g)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2009</quote> and inserting <quote>December 31, 2013</quote>.</text></subsection>
<subsection id="HA37143D0E90A44F3959764573844682F"><enum>(d)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2005.</text></subsection></section>
<section id="H080E0F57D95046B28200730852C82B59"><enum>312.</enum><header>Use of native grasses on conservation reserve land for biomass harvesting</header>
<subsection id="HDE184D6336AA49DCB97F3EFF75DD47F1"><enum>(a)</enum><header>Purpose</header><text>The purpose of this section is to clarify that an owner or operator of a farm or ranch that has entered into a conservation reserve contract may harvest perennial, permanent cover crops on land that is subject to the contract for the production of cellulosic ethanol, biogas, biobased hydrogen, other biobased liquid fuels, or other biobased products.</text></subsection>
<subsection id="H0567C5ACF73947C39D84B31287A077C"><enum>(b)</enum><header>Use of Native Grasses</header><text>Section 1232(a)(7)(A) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3832">16 U.S.C. 3832(a)(7)(A)</external-xref>) is amended—</text>
<paragraph id="H7C8B9527492641C28662B65F33B55CA"><enum>(1)</enum><text>in clause (ii), by striking <quote>and</quote> after the semicolon at the end; and</text></paragraph>
<paragraph id="H8A01E2F6A08E4DFCAF14DE14A91701C5"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="H7FD1975A8B0A4D4D901644CB534E174">
<clause id="HA2E7D5A0BFF64C96878DA87ECB463EEE"><enum>(iv)</enum><text>shall permit the use of native grasses to produce cellulosic ethanol, biogas, biobased hydrogen, other biobased liquid fuel, or other biobased products (collectively referred to in this clause as <quote>biobased products</quote>), except that—</text>
<subclause id="H9D74A1C2939E4453829438103F8F6196"><enum>(I)</enum><text>native grasses may not be used to produce biobased products on land that is enrolled in the conservation reserve if the land is devoted to shallow water for wildlife, wildlife habitat, diversion or erosion prevention, wetland restoration, rare or declining habitat, or upland bird habitat buffers;</text></subclause>
<subclause id="HDFB61C1F126840D2BB6C5CA530A41F17"><enum>(II)</enum><text>native grasses may be used to produce biobased products under this subparagraph only during the period beginning September 31, and ending May 1, of each year; and</text></subclause>
<subclause id="H1818BFFCA76A4841BB79CBF77C04D200"><enum>(III)</enum><text>not more than 50 percent of any plot that is enrolled in the conservation reserve may be used to produce biobased products each year; and</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section>
<section id="H7AAD580C11B446ACA71D98ECCBA72991"><enum>313.</enum><header>Use of CAFÉ penalties to build alternative fueling infrastructure</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/32912">Section 32912</external-xref> of title 49, United States Code, is amended by adding at the end the following</text>
<quoted-block style="OLC" id="HD10CCC3F1343424282AC3EFF6C7E54C1">
<subsection id="H8E90A605EAC34B6D8B7E4EBF6C560422"><enum>(e)</enum><header>Alternative Fueling Infrastructure Trust Fund</header>
<paragraph id="HFAC58B50E06A4604911EA6E033DFFD00"><enum>(1)</enum><header>Establishment</header><text>There is established in the Treasury of the United States a trust fund, to be known as the Alternative Fueling Infrastructure Trust Fund, consisting of—</text>
<subparagraph id="H801F0EF0384A4E45B648D1567E006E5C"><enum>(A)</enum><text>such amounts as are deposited into the Trust Fund under paragraph (2); and</text></subparagraph>
<subparagraph id="H88570EEB6A2A4391BB206B21B50339CC"><enum>(B)</enum><text>any interest earned on investment of amounts in the Trust Fund.</text></subparagraph></paragraph>
<paragraph id="H6D954C70B98340948900CA59B5EF8946"><enum>(2)</enum><header>Deposits</header><text>The Secretary of Transportation shall remit to the Treasury 90 percent of the amounts collected in civil penalties each year under this section for deposit to the Trust Fund.</text></paragraph>
<paragraph id="HFB5C34B47B7F42189CF179681D81B244"><enum>(3)</enum><header>Investment of amounts</header>
<subparagraph id="H0C93D26112FD4185A9B2823C4925CC3"><enum>(A)</enum><header>In general</header><text>The Secretary of the Treasury shall invest such portion of the Trust Fund as is not, in the judgment of the Secretary of the Treasury, required to meet current withdrawals.</text></subparagraph>
<subparagraph id="H4C67FCED60B2474D8093DDB60867C120"><enum>(B)</enum><header>Interest-bearing obligations</header><text>Investments may be made only in interest-bearing obligations of the United States.</text></subparagraph>
<subparagraph id="H346E29531CF04ECD82BE8618841897AF"><enum>(C)</enum><header>Acquisition of obligations</header><text>For the purpose of investments under subparagraph (A), obligations may be acquired—</text>
<clause id="H4D12D405E7774291913B00D9E49B94E7"><enum>(i)</enum><text>on original issue at the issue price; or</text></clause>
<clause id="H73F54E5ADEBA4E31882B6899304E63CF"><enum>(ii)</enum><text>by purchase of outstanding obligations at the market price.</text></clause></subparagraph>
<subparagraph id="HE05BF0EE5ED44E29A259FB7701915BF"><enum>(D)</enum><header>Sale of obligations</header><text>Any obligation acquired by the Trust Fund may be sold by the Secretary of the Treasury at the market price.</text></subparagraph>
<subparagraph id="H722BF0684D054C8C00B0B75F6DB0FAB4"><enum>(E)</enum><header>Credits to trust fund</header><text>The interest on, and the proceeds from the sale or redemption of, any obligations held in the Trust Fund shall be credited to and form a part of the Trust Fund.</text></subparagraph></paragraph>
<paragraph id="HD751FB6C3242462D881241132FE077CD"><enum>(4)</enum><header>Transfers of amounts</header>
<subparagraph id="H74747662EB67481192843491F2234366"><enum>(A)</enum><header>In general</header><text>The amounts required to be transferred to the Trust Fund under this subsection shall be transferred at least quarterly from the general fund of the Treasury to the Trust Fund on the basis of estimates made by the Secretary of the Treasury.</text></subparagraph>
<subparagraph id="H68F868E0BA7149B4811EAB96C5791FBF"><enum>(B)</enum><header>Adjustments</header><text>Proper adjustment shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.</text></subparagraph></paragraph>
<paragraph id="HE47614B88E7D4956BA9C864B000340A"><enum>(5)</enum><header>Expenditures from the fund</header>
<subparagraph id="H73C6CFBE8775440590319BC298766128"><enum>(A)</enum><header>In general</header><text>The Secretary of Energy shall obligate such sums as are available in the Trust Fund to establish a grant program to increase the number of locations at which consumers may purchase alternative fuels.</text></subparagraph>
<subparagraph id="H80D3257B300544508F1B2838EECE460"><enum>(B)</enum><header>Amount and persons eligible</header><text>The Secretary of Energy may award grants under this paragraph in an amount not to exceed $150,000 to persons who have expertise in—</text>
<clause id="HE2814C0CA78244DDBEE930005EF93D89"><enum>(i)</enum><text>operating a fueling station; or</text></clause>
<clause id="H145A65BA5B0C4769AF5B114419AA5FF8"><enum>(ii)</enum><text>administering grants for the purpose of establishing an alternative fueling infrastructure.</text></clause></subparagraph>
<subparagraph id="H53371E2C0B2848FEAAB1F8C856E84807"><enum>(C)</enum><header>Other considerations</header>
<clause id="H3703E02B61BC4CA08133604981807955"><enum>(i)</enum><header>Number of vehicles to be served</header><text>In awarding grants under this paragraph, the Secretary shall consider the number of vehicles in service capable of using a specific type of alternative fuel.</text></clause>
<clause id="H3EFCB3B543044C1AA7C0B4E0A0121306"><enum>(ii)</enum><header>Matching funds</header><text>A recipient of a grant under this paragraph shall provide a non-Federal match of not less than $1 for every $3 of grant funds received under this paragraph.</text></clause>
<clause id="H3F98ACE9564B4738B47E8CF21525143B"><enum>(iii)</enum><header>Selection of locations</header><text>Each grant recipient shall select the location for each alternative fuel station to be constructed with grant funds received under this paragraph on a formal, open, and competitive basis.</text></clause></subparagraph>
<subparagraph id="HCDF87DA35AD3462F8C84BFAD6CA43EEB"><enum>(D)</enum><header>Use of funds</header><text>Grants received under this paragraph may be used to—</text>
<clause id="H1BDB71760A2F4F81AF1137CA65AAD95E"><enum>(i)</enum><text>construct new facilities to dispense alternative fuels;</text></clause>
<clause id="H24EDCDCDB3EE490886A5EF5572D1C0FD"><enum>(ii)</enum><text>purchase equipment to upgrade, expand, or otherwise improve existing alternative fuel facilities; or</text></clause>
<clause id="H98654563270B449383A7002245664394"><enum>(iii)</enum><text>purchase equipment or pay for specific turnkey fueling services by alternative fuel providers.</text></clause></subparagraph>
<subparagraph id="H1C3DBEEEA5C44617AB67B96EBA2DA96F"><enum>(E)</enum><header>Requirement for facilities</header><text>Facilities constructed or upgraded with a grant awarded under this paragraph shall—</text>
<clause id="H7500FE9EF4EA4439AE00FB33579BA98"><enum>(i)</enum><text>provide alternative fuel to the public for a period of not less than 4 years from the date on which the facility opens;</text></clause>
<clause id="H4C8FEDABECEC4A109BD4781967881DD8"><enum>(ii)</enum><text>establish a marketing plan to advance the sale and use of alternative fuels;</text></clause>
<clause id="HF4BB645967664E5BBAC1D26D0051395E"><enum>(iii)</enum><text>prominently display the price of the alternative fuel being provided on the station marquee and in the station;</text></clause>
<clause id="HAF73F612F7E14FDC84F75BE91151008E"><enum>(iv)</enum><text>provide point of sale materials on alternative fuel;</text></clause>
<clause id="HF20DC33F39334A2BA200BB3283B300F7"><enum>(v)</enum><text>clearly label the dispenser with consistent materials;</text></clause>
<clause id="H5FA0931BC05741FFACC178DD764CC243"><enum>(vi)</enum><text>price the alternative fuel at a margin that is not greater than that which is received for unleaded gasoline; and</text></clause>
<clause id="H73C701E257DC46D3B3FB8564E3CC26E4"><enum>(vii)</enum><text>support and use all available tax incentives to reduce the cost of the alternative fuel to the lowest possible retail price.</text></clause></subparagraph>
<subparagraph id="H269987D8E8FF4EF2B8F0B138074BDB45"><enum>(F)</enum><header>Notification of opening of facility</header><text>Not later than the date on which an alternative fuel station described in this paragraph begins to offer alternative fuel to the public, the person that received the grant to construct or upgrade the station shall notify the Secretary of Energy of such opening. The Secretary of Energy shall add each new alternative fuel station to the alternative fuel station locator on the Department of Energy Website when the Secretary receives notification under this subparagraph.</text></subparagraph>
<subparagraph id="HA8207DC5CCC547F8BB85D900DD00E3CE"><enum>(G)</enum><header>Report</header><text>Not later than 6 months after the receipt of a grant award under this paragraph, and every 6 months thereafter, each person receiving a grant under this subsection shall submit a report to the Secretary of Energy that describes—</text>
<clause id="H7FB626AB03A14F18B4FAB23DFDA6D4"><enum>(i)</enum><text>the status of each alternative fuel station constructed with grant funds received under this paragraph;</text></clause>
<clause id="H3FD1E5F76F2D4759000080C078878E5"><enum>(ii)</enum><text>the amount of alternative fuel dispensed at each station during the preceding 6-month period; and</text></clause>
<clause id="H8797A25A65F14F87A21862E970637B6D"><enum>(iii)</enum><text>the average price per gallon of the alternative fuel sold at each station during the preceding 6-month period.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>
<enum>IV</enum><header>DOMESTIC PRODUCTION OF OIL AND NATURAL GAS</header>
<section id="H82E22C1F4E764E11A6B2C917E81144C"><enum>401.</enum><header>Modifications to enhanced oil recovery credit</header>
<subsection id="H7A9B7352087E4322A9FBED35EFC8085E"><enum>(a)</enum><header>Enhanced Credit for Carbon Dioxide Injections</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/43">Section 43</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="HE651058EC8FE4C8E894C69598FC57B42">
<subsection id="H60B158FA454B4C2FBD7300E63FB59367"><enum>(f)</enum><header>Enhanced Credit for Projects Using Qualified Carbon Dioxide</header>
<paragraph id="H918D4562C10640F18DA76540BE0908BE"><enum>(1)</enum><header>In general</header><text>In the case of any qualified enhanced oil recovery project described in paragraph (2), subsection (a) shall be applied by substituting <quote>20 percent</quote> for <quote>15 percent</quote>.</text></paragraph>
<paragraph id="HC14CF6848C624F83B0008766773FF393"><enum>(2)</enum><header>Specified qualified enhanced oil recovery project</header>
<subparagraph id="HFD463272001D4B53A306FCB2E872F25B"><enum>(A)</enum><header>In general</header><text>A qualified enhanced oil recovery project is described in this paragraph if—</text>
<clause id="H4814FF916E9B4C7C815726A97032781C"><enum>(i)</enum><text>the project begins or is substantially expanded after December 31, 2006, and</text></clause>
<clause id="H1D3B60DE8BAF4FC6A42D869DE711CA66"><enum>(ii)</enum><text>the project uses qualified carbon dioxide in an oil recovery method which involves flooding or injection.</text></clause></subparagraph>
<subparagraph id="H04A693D2F89B4CA3AEFD3BA0FF9499CE"><enum>(B)</enum><header>Qualified carbon dioxide</header><text>For purposes of this subsection, the term <term>qualified carbon dioxide</term> means carbon dioxide that is—</text>
<clause id="HB18A53209D53496E81F1F93BD08DAE3B"><enum>(i)</enum><text>from an industrial source, or</text></clause>
<clause id="H6A4F503D55EB464AAD17F488023F88B2"><enum>(ii)</enum><text>separated from natural gas and natural gas liquids at a natural gas processing plant.</text></clause></subparagraph></paragraph>
<paragraph id="H92EA1BE52E3B4E5895A3B4B5B590E573"><enum>(3)</enum><header>Termination</header><text>This subsection shall not apply to costs paid or incurred for any qualified enhanced oil recovery project after December 31, 2010.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HFB712F91E824410B84E4DE5DD9A366F8"><enum>(b)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to costs paid or incurred in taxable years ending after December 31, 2006.</text></subsection></section>
<section id="HEC92A382C97C47A39302781300E4CD91"><enum>402.</enum><header>Offshore oil and gas leasing in 181 Area of Gulf of Mexico</header>
<subsection id="H4BFD8EEAFB204723A700BE19ED885CAA"><enum>(a)</enum><header>Definition of Secretary</header><text>In this section, the term <term>Secretary</term> means the Secretary of the Interior, acting through the Minerals Management Service.</text></subsection>
<subsection id="H4C8A80E8396342868C1D8F5ECD3DEDB"><enum>(b)</enum><header>Lease Sale</header><text>Except as otherwise provided in this section, the Secretary shall offer the 181 Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>) as soon as practicable, but not later than 1 year, after the date of enactment of this Act.</text></subsection>
<subsection id="HF02D2D8AA38A474B956BDAC633EEF76F"><enum>(c)</enum><header>Excluded Areas</header><text>In carrying out subsection (b), the Secretary shall not offer for oil and gas leasing—</text>
<paragraph id="HBE7788EB265E44CBA9A24C5BEDC9F800"><enum>(1)</enum><text>any area east of the Military Mission Line, unless the Secretary of Defense agrees in writing before the area is offered for lease that the area can be developed in a manner that will not interfere with military activities; or</text></paragraph>
<paragraph id="HB1EF5B5C7E054EFC93692C4EBC48CDDA"><enum>(2)</enum><text>any area that is within 100 miles of the coastline of the State of Florida.</text></paragraph></subsection>
<subsection id="H9EA9DE349C854F47927D803388047EF9"><enum>(d)</enum><header>Leasing Program</header><text>The 181 Area shall be offered for lease under this section notwithstanding the omission of the 181 Area from any outer Continental Shelf leasing program under section 18 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1344">43 U.S.C. 1344</external-xref>).</text></subsection></section>
<enum>V</enum><header>ELECTRICITY AND RENEWABLES</header>
<section id="H456CFB6E6FC74CFEB72099C27100D900"><enum>501.</enum><header>DOE national and North American electricity grid studies</header>
<subsection id="H7069C834184E40E989B0B224B02B5C9"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text>
<paragraph id="H4292EA521C1F449CB14EFF7053790992"><enum>(1)</enum><text>the interstate transmission system of North America cannot reliably handle the existing and expected dramatic increase in future electric transactions;</text></paragraph>
<paragraph id="H736947855C2F47CC98766D077E2DE1E"><enum>(2)</enum><text>significant new transmission capacity is urgently needed to maintain reliability and meet the needs of a growing demand for electricity;</text></paragraph>
<paragraph id="HB6AAFF6E76E44AF29FEFEB2FF82F330"><enum>(3)</enum><text>transmission shortages and constraints are contributing to wholesale and retail electric market failures that are harming electric consumers in, and the economy of, the United States;</text></paragraph>
<paragraph id="HB797FD8E33894DBE89E42627B8F7CB4F"><enum>(4)</enum><text>existing transmission capacity limits the development of renewable and other energy sources by constraining delivery of those resources into the national power market;</text></paragraph>
<paragraph id="H6E77BE4ABA79471F804485EFA3C29500"><enum>(5)</enum><text>excessive congestion unnecessarily raises costs for all consumers; and</text></paragraph>
<paragraph id="HDB9E512D7611478688A9D82650754246"><enum>(6)</enum><text>an adequate transmission system is critical to national security.</text></paragraph></subsection>
<subsection id="H75F49324F7E84F8D8B20189B1DC0DB00"><enum>(b)</enum><header>Studies</header>
<paragraph id="H137206F641A246C2BEED6BF47DAFB1A7"><enum>(1)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the Rural Utilities Service, the Federal Power Marketing Administrations, the Federal Energy Regulatory Commission, and other appropriate regional entities, shall carry out—</text>
<subparagraph id="HD27652C3368B4649BB4782C1B7A9A71F"><enum>(A)</enum><text>a study, to be known as the <quote>National Transmission Grid Study</quote>, to determine the feasibility of constructing a national transmission grid with nationwide functionality and benefits similar to those provided by construction of the Interstate Highway System; and</text></subparagraph>
<subparagraph id="HCAEF9F7F5E8D4526BBB0D47084F47BC6"><enum>(B)</enum><text>a study, to be known as the <quote>North American Transmission Grid Study</quote>, to determine the feasibility of constructing an integrated North American transmission grid with international functionality and benefits similar to those provided by construction of the Interstate Highway System.</text></subparagraph></paragraph>
<paragraph id="H377B3C7495234C2188537FD2ED20C164"><enum>(2)</enum><header>Study</header><text>In carrying out the studies, the Secretary shall take into consideration—</text>
<subparagraph id="HC51CF8DF30564326A49BA4A0441C8165"><enum>(A)</enum><text>economic viability, including the cost-effectiveness of developing a national transmission grid or North American transmission grid, as appropriate;</text></subparagraph>
<subparagraph id="HE04D1D95AA3645F9A17707457E6E95CF"><enum>(B)</enum><text>economic growth in the United States, including the extent to which that economic growth is constrained by the lack of adequate or reasonably-priced electricity;</text></subparagraph>
<subparagraph id="H44009A987BD242E580DB623FBD35B628"><enum>(C)</enum><text>limited transmission infrastructure, resulting in the inability or limited ability to transmit available power supply resources;</text></subparagraph>
<subparagraph id="H5A75B46312CB4CC985ACF92F491074"><enum>(D)</enum><text>diversification of power supply;</text></subparagraph>
<subparagraph id="H2DFFA07E2DEB48008682E689D0985E41"><enum>(E)</enum><text>requirements and needs relating to the national defense and homeland security of the United States;</text></subparagraph>
<subparagraph id="HB072150F53524235A79FE60825A3E27C"><enum>(F)</enum><text>promotion of national energy security;</text></subparagraph>
<subparagraph id="H659EB4C73B54493BAD96B7B600233800"><enum>(G)</enum><text>transmission losses; and</text></subparagraph>
<subparagraph id="H7B891CCE8E0A4DCBB7CBE6E35E3968EB"><enum>(H)</enum><text>reliability.</text></subparagraph></paragraph></subsection>
<subsection id="HA4BA06D9F78F4281BE7E8B8E93C127BB"><enum>(c)</enum><header>Report to Congress</header><text>Not later than 90 days after the date of completion of the studies required by subsection (c)(1), the Secretary shall submit to Congress a report describing the viability of constructing—</text>
<paragraph id="H50F4E499548C493BA7DD82D752F2F1BD"><enum>(1)</enum><text>a national transmission grid in accordance with nationwide functionality and benefits similar to those provided by construction of the Interstate System; and</text></paragraph>
<paragraph id="H045C3C112D7B4533912F53A03EA92287"><enum>(2)</enum><text>an integrated North American transmission grid with international functionality and benefits similar to those provided by construction of the Interstate System.</text></paragraph></subsection>
<subsection id="HEB91C68991E140BBBBE7F38FA0001183"><enum>(d)</enum><header>Authorization of Appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out this section.</text></subsection></section>
<section id="H2DE82C23546D400DA1C7C2BBC016F1CB"><enum>502.</enum><header>Tax-exempt financing of electric transmission facilities not subject to private business use test</header>
<subsection id="H0BF61F5B8BB545B992EA0012B241AEC7"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/141">Section 141(b)(6)</external-xref> of the Internal Revenue Code of 1986 (defining private business use) is amended by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="H09D53ECB3CC343C4A558A029B8E24551">
<subparagraph id="H1E03CAC146874B1387CC3F9B86E017A9"><enum>(C)</enum><header>Exception for electric transmission facilities</header><text>For purposes of the 1st sentence of subparagraph (A), the operation or use of an electric transmission facility by any person which is not a governmental unit shall not be considered a private business use.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H034E61FDDACA467E8DFD2C7412A88E7D"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to bonds issued after the date of the enactment of this Act.</text></subsection></section>
<section id="HC1DB9D2C5FAB4755ACDE29F8A16EE9DD"><enum>503.</enum><header>Extension of credit for producing electricity from certain renewable resources</header>
<subsection id="HB04A5497CB664A8B8D849B5B731EBEA3"><enum>(a)</enum><header>In General</header><text>Paragraphs (1) through (7) of <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45(d)</external-xref> of the Internal Revenue Code of 1986 are each amended by striking <quote>January 1, 2008</quote> each place it appears and inserting <quote>January 1, 2013</quote>.</text></subsection>
<subsection id="HC987C66B72F0425EBA5E8DC928D7E170"><enum>(b)</enum><header>Effective Date</header><text>The amendments made by this section shall take effect on the date of the enactment of this Act.</text></subsection></section>
<section id="H99D7596CE8894E2683BBD794547F8F2"><enum>504.</enum><header>Federal renewable portfolio standard</header><text display-inline="no-display-inline">The Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2601">16 U.S.C. 2601 et seq.</external-xref>) is amended by adding at the end of title VI the following:</text>
<quoted-block style="OLC" id="H22B6AA10921749A18D4D9D8FD1B2CF31">
<section id="H0275467F47324BF3B05445106017A0C6"><enum>610.</enum><header>Federal renewable portfolio standard</header>
<subsection id="H376122E207994E78AD84C3682339A7BD"><enum>(a)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="H9B51F1BCACE84B60B779E0E502C800B4"><enum>(1)</enum><header>Base amount of electricity</header><text>The term <term>base amount of electricity</term> means the total amount of electricity sold by an electric utility to electric consumers in a calendar year, excluding—</text>
<subparagraph id="HDD5CA92EA2C740B581D8A7180037F017"><enum>(A)</enum><text>electricity generated by a hydroelectric facility (including a pumped storage facility but excluding incremental hydropower); and</text></subparagraph>
<subparagraph id="HD4B338D91E4844F2AAFB175805B61561"><enum>(B)</enum><text>electricity generated through the incineration of municipal solid waste.</text></subparagraph></paragraph>
<paragraph id="H3F89735D61C14412BC94345F87A312F"><enum>(2)</enum><header>Distributed generation facility</header><text>The term <term>distributed generation facility</term> means a facility at a customer site.</text></paragraph>
<paragraph id="H7E397ABDC79F4217B3CC30911C13FAA3"><enum>(3)</enum><header>Existing renewable energy</header><text>The term <term>existing renewable energy</term> means, except as provided in paragraph (7)(B), electric energy generated at a facility (including a distributed generation facility) placed in service prior to the date of enactment of this section from—</text>
<subparagraph id="HC633EC4767264BD5A515947100AF5CA0"><enum>(A)</enum><text>solar, wind, or geothermal energy;</text></subparagraph>
<subparagraph id="H711B2BD0D40A4362B4A88E9C6FB41503"><enum>(B)</enum><text>ocean energy;</text></subparagraph>
<subparagraph id="HDA22D2DD14FD4DEB84FCADC2F7F9200"><enum>(C)</enum><text>biomass (as defined in section 203(b) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15852">42 U.S.C. 15852(b)</external-xref>)); or</text></subparagraph>
<subparagraph id="H5FFF4181E625459DAC889D5D7207299E"><enum>(D)</enum><text>landfill gas.</text></subparagraph></paragraph>
<paragraph id="HF8287BD4E1E544B300D9789BE91148E2"><enum>(4)</enum><header>Geothermal energy</header><text>The term <term>geothermal energy</term> means energy derived from a geothermal deposit (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/613">section 613(e)(2)</external-xref> of the Internal Revenue Code of 1986).</text></paragraph>
<paragraph id="H0AC73B96D97B40899163CCCCFDFC4976"><enum>(5)</enum><header>Incremental geothermal production</header>
<subparagraph id="H290D399A466544848FB8C83D2995A967"><enum>(A)</enum><header>In general</header><text>The term <term>incremental geothermal production</term> means, for any year, the difference between—</text>
<clause id="HF6C0059B02244AB589008033E3F3AB68"><enum>(i)</enum><text>the total kilowatt hours of electricity produced from a facility (including a distributed generation facility) using geothermal energy, and</text></clause>
<clause id="HCDCC3CA02A7E4CCC85AC9D298639A68D"><enum>(ii)</enum><text>the average annual kilowatt hours produced at the facility for 5 of the 7 calendar years preceding the date of enactment of this section after eliminating the highest and the lowest kilowatt hour production years in that 7-year period.</text></clause></subparagraph>
<subparagraph id="H40FE617AB3304B4FB4C231622624F64"><enum>(B)</enum><header>Special rule</header><text>A facility described in subparagraph (A) that was placed in service at least 7 years before the date of enactment of this section shall, beginning with the year in which that date of enactment occurs, reduce the amount calculated under subparagraph (A)(ii) each year, on a cumulative basis, by the average percentage decrease in the annual kilowatt hour production for the 7-year period described in subparagraph (A)(ii), the cumulative sum of which shall not exceed 30 percent.</text></subparagraph></paragraph>
<paragraph id="H54CBE14CB3A54CA5B195494051FF3625"><enum>(6)</enum><header>Incremental hydropower</header>
<subparagraph id="H8395A653ED154D1BB3AA1DECA5A5A709"><enum>(A)</enum><header>In general</header><text>The term <term>incremental hydropower</term> means additional energy generated as a result of efficiency improvements or capacity additions made on or after the date of enactment of this section or the effective date of an existing applicable State renewable portfolio standard program at a hydroelectric facility that was placed in service before that date.</text></subparagraph>
<subparagraph id="H6F034AAFD1A14AC48E3DDB4C0677ED3D"><enum>(B)</enum><header>Exclusions</header><text>The term <term>incremental hydropower</term> does not include additional energy generated as a result of operational changes not directly associated with efficiency improvements or capacity additions.</text></subparagraph>
<subparagraph id="H8B9E454A6551417BBCEF7EFACBDB158B"><enum>(C)</enum><header>Measurement of improvements and additions</header><text>Efficiency improvements and capacity additions referred to in subparagraph (A) shall be measured on the basis of the same water flow information used to determine a historic average annual generation baseline for the hydroelectric facility and certified by the Secretary or the Federal Energy Regulatory Commission.</text></subparagraph></paragraph>
<paragraph id="H91A4BBB0E4E2453CB434E8D70413697E"><enum>(7)</enum><header>New renewable energy</header><text>The term <term>new renewable energy</term> means—</text>
<subparagraph id="H7F80362BFABC4296ABECFAC2BA4EA4D"><enum>(A)</enum><text>electric energy generated at a facility (including a distributed generation facility) placed in service on or after January 1, 2003, from—</text>
<clause id="H303B4A1BF611438EB713DABECDE1A1F9"><enum>(i)</enum><text>solar, wind, or geothermal energy or ocean energy;</text></clause>
<clause id="H8C9D2085858B4C43A3A5A9F33683AF21"><enum>(ii)</enum><text>biomass (as defined in section 203(b) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15852">42 U.S.C. 15852(b)</external-xref>));</text></clause>
<clause id="HC02FB585D7A24D2700A0E99C479B722"><enum>(iii)</enum><text>landfill gas; or</text></clause>
<clause id="H5BD8819EF91F4CFEA9C3DA31C7FC45"><enum>(iv)</enum><text>incremental hydropower; and</text></clause></subparagraph>
<subparagraph id="H568B4A0259A14FA3B91B05B5E509ED36"><enum>(B)</enum><text>for electric energy generated at a facility (including a distributed generation facility) placed in service before the date of enactment of this section—</text>
<clause id="H6B3E62E8C47246AAAA9EF8533D13397D"><enum>(i)</enum><text>the additional energy above the average generation in the 3 years preceding the date of enactment of this section at the facility from—</text>
<subclause id="HB4A54B0A3EC64FCEBB008880ED1E52C"><enum>(I)</enum><text>solar or wind energy or ocean energy;</text></subclause>
<subclause id="H1F6EA74FA296482EA0ECF825CAB1B5F"><enum>(II)</enum><text>biomass (as defined in section 203(b) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15852">42 U.S.C. 15852(b)</external-xref>));</text></subclause>
<subclause id="H82488EE131474180B7C63B80F7D0DCC9"><enum>(III)</enum><text>landfill gas; or</text></subclause>
<subclause id="HE9CB686E974B4585AF009BE1FFC7744D"><enum>(IV)</enum><text>incremental hydropower; and</text></subclause></clause>
<clause id="H2782533EB06548F700BFF38C4E304850"><enum>(ii)</enum><text>the incremental geothermal production.</text></clause></subparagraph></paragraph>
<paragraph id="H1DF13F523B704406916385DF56EE5005"><enum>(8)</enum><header>Ocean energy</header><text>The term <term>ocean energy</term> includes current, wave, tidal, and thermal energy.</text></paragraph></subsection>
<subsection id="H92877D22340E49FAA900C11512650342"><enum>(b)</enum><header>Renewable Energy Requirement</header>
<paragraph id="H7F2AC98A84A842FE9640666420C3B8CC"><enum>(1)</enum><header>Requirement</header>
<subparagraph id="H1DD2ECE607524697A41E034DF3053341"><enum>(A)</enum><header>In general</header><text>Each electric utility that sells electricity to electric consumers shall obtain a percentage of the base amount of electricity the electric utility sells to electric consumers in any calendar year from new renewable energy or existing renewable energy.</text></subparagraph>
<subparagraph id="H71D813BCB7554320BAF9601DF2354182"><enum>(B)</enum><header>Percentages</header><text>The percentage obtained in a calendar year shall not be less than the amount 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>Minimum annual</bold></entry></row>
<row><entry colname="I49"><bold></bold>Calendar year:</entry><entry colname="I50"><bold>percentage:</bold></entry></row></thead>
<tbody>
<row><entry colname="I51">2008 through 2011</entry><entry colname="I52">2.5 </entry></row>
<row><entry colname="I51">2012 through 2015</entry><entry colname="I52">5.0 </entry></row>
<row><entry colname="I51">2016 through 2019</entry><entry colname="I52">7.5 </entry></row>
<row><entry colname="I51">2020 through 2030</entry><entry colname="I52">10.0. </entry></row></tbody></tgroup></table></subparagraph></paragraph>
<paragraph id="H82EA00813CE1419EB68DBE22976E5493"><enum>(2)</enum><header>Means of compliance</header><text>An electric utility shall meet the requirements of paragraph (1) by—</text>
<subparagraph id="H0E9D70D342AC4F80A645B2500E408A"><enum>(A)</enum><text>generating electric energy using new renewable energy or existing renewable energy;</text></subparagraph>
<subparagraph id="H9C54D02E8FE541F8BF5DEB002B62D285"><enum>(B)</enum><text>purchasing electric energy generated by new renewable energy or existing renewable energy;</text></subparagraph>
<subparagraph id="H4B3CEDFD951E439A848FA7824C003459"><enum>(C)</enum><text>purchasing renewable energy credits issued under subsection (c); or</text></subparagraph>
<subparagraph id="H1267D639127E48058B49B4CCEFA9C3E5"><enum>(D)</enum><text>a combination of the foregoing.</text></subparagraph></paragraph></subsection>
<subsection id="HDA6726DE59FA4E35B5007084673340C1"><enum>(c)</enum><header>Renewable Energy Credit Trading Program</header>
<paragraph id="H5BBF91ACB8224FEE8CB381EE6899C4B"><enum>(1)</enum><header>In general</header><text>Not later than January 1, 2007, the Secretary shall establish a renewable energy credit trading program to permit an electric utility that does not generate or purchase enough electric energy from renewable energy to meet its obligations under subsection (b)(1) to satisfy the requirements by purchasing sufficient renewable energy credits.</text></paragraph>
<paragraph id="HB3C95DBA6E70444ABC5FB788F4B90523"><enum>(2)</enum><header>Responsibilities of secretary</header><text>As part of the program, the Secretary shall—</text>
<subparagraph id="H1BB504F020FD443D85D48BFCE157FB00"><enum>(A)</enum><text>issue renewable energy credits to generators of electric energy from new renewable energy;</text></subparagraph>
<subparagraph id="H08165220047A4597B2171BD910028E"><enum>(B)</enum><text>sell renewable energy credits to electric utilities at the rate of 1.5 cents per kilowatt-hour (as adjusted for inflation under subsection (h));</text></subparagraph>
<subparagraph id="H79DE0B26CBA44E46BB60009287A307D5"><enum>(C)</enum><text>ensure that a kilowatt hour, including the associated renewable energy credit, shall be used only once for purposes of compliance with this section; and</text></subparagraph>
<subparagraph id="H8A2CB6B490C84B19BD4FE46EE3E900FD"><enum>(D)</enum><text>allow double credits for generation from facilities on Indian land, and triple credits for generation from small renewable distributed generators (meaning those no larger than 1 megawatt).</text></subparagraph></paragraph>
<paragraph id="HF1AAB44C805A4E229E18808DC8C4BB1B"><enum>(3)</enum><header>Use of credits</header><text>A credit under paragraph (2)(A) may only be used for compliance with this section for the 3-year period beginning on the date of issuance of the credit.</text></paragraph></subsection>
<subsection id="H00C3A71D361C44BA8D682647168416EB"><enum>(d)</enum><header>Enforcement</header>
<paragraph id="H3031643A01EF4CED8600608BFFCABB5"><enum>(1)</enum><header>Civil penalties</header><text>Any electric utility that fails to meet the renewable energy requirements of subsection (b) shall be subject to a civil penalty.</text></paragraph>
<paragraph id="H9C421306DD2942E09509B3FE3ECA184"><enum>(2)</enum><header>Amount of penalty</header><text>The amount of the civil penalty shall be determined by multiplying the number of kilowatt-hours of electric energy sold to electric consumers in violation of subsection (b) by the greater of 1.5 cents (adjusted for inflation under subsection (h)) or 200 percent of the average market value of renewable energy credits during the year in which the violation occurred.</text></paragraph>
<paragraph id="H561D2694B2E74CBFB9D951DED35ED4AA"><enum>(3)</enum><header>Mitigation or waiver</header>
<subparagraph id="HC26F65B43AC5499B828BEFDD064E0864"><enum>(A)</enum><header>In general</header><text>The Secretary may mitigate or waive a civil penalty under this subsection if the electric utility was unable to comply with subsection (b) for reasons outside of the reasonable control of the utility.</text></subparagraph>
<subparagraph id="HA8DF1F21E60C4A588139C52376F5DEF4"><enum>(B)</enum><header>Reduction of amount</header><text>The Secretary shall reduce the amount of any penalty determined under paragraph (2) by an amount paid by the electric utility to a State for failure to comply with the requirement of a State renewable energy program if the State requirement is greater than the applicable requirement of subsection (b).</text></subparagraph></paragraph>
<paragraph id="H89D55FEBA6F343A2840768798D3D5EF"><enum>(4)</enum><header>Procedure for assessing penalty</header><text>The Secretary shall assess a civil penalty under this subsection in accordance with the procedures prescribed by section 333(d) of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/6303">42 U.S.C. 6303</external-xref>).</text></paragraph></subsection>
<subsection id="H24CDB875421E4732B8FD1DEAC51040E0"><enum>(e)</enum><header>State Renewable Energy Account Program</header>
<paragraph id="H2EE3CE3DE7BE443E978B0400B5491441"><enum>(1)</enum><header>In general</header><text>Not later than December 31, 2008, the Secretary shall establish a State renewable energy account program.</text></paragraph>
<paragraph id="H4FA00A7E55054A7BBBA071612BD0433C"><enum>(2)</enum><header>Deposit of amounts</header><text>All funds collected by the Secretary from the sale of renewable energy credits and the assessment of civil penalties under this section shall be deposited into the renewable energy account established pursuant to this subsection.</text></paragraph>
<paragraph id="HF4CE25E5E6584A56AF1041E6F896DFB9"><enum>(3)</enum><header>Maintenance of account</header><text>The State renewable energy account shall be held by the Secretary and shall not be transferred to the Treasury Department.</text></paragraph>
<paragraph id="HB6B61DC85694444785CCFAA735006C4B"><enum>(4)</enum><header>Use of amounts</header><text>Proceeds deposited in the State renewable energy account shall be used by the Secretary, subject to appropriations, for a program to provide grants to the State agency responsible for developing State energy conservation plans under section 362 of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6322">42 U.S.C. 6322</external-xref>) for the purposes of promoting renewable energy production, including programs that promote technologies that reduce the use of electricity at customer sites such as solar water heating.</text></paragraph>
<paragraph id="H48630F4091E64A0DB1AFE4D70800A7F0"><enum>(5)</enum><header>Guidelines and criteria</header><text>The Secretary may issue guidelines and criteria for grants awarded under this subsection.</text></paragraph>
<paragraph id="H8E935710EE3F4A23A8A3005345A66053"><enum>(6)</enum><header>Maintenance of records and evidence of compliance</header><text>State energy offices receiving grants under this section shall maintain such records and evidence of compliance as the Secretary may require.</text></paragraph>
<paragraph id="H3092E73D67A74E34BA1558741356FDC"><enum>(7)</enum><header>Allocation of funds</header><text>In allocating funds under this program, the Secretary shall give preference—</text>
<subparagraph id="H14AA3E5111FB4324A015AC9645691CB2"><enum>(A)</enum><text>to States in regions that have a disproportionately small share of economically sustainable renewable energy generation capacity; and</text></subparagraph>
<subparagraph id="H0886DE7DEE67471088D993213B219884"><enum>(B)</enum><text>to State programs to stimulate or enhance innovative renewable energy technologies.</text></subparagraph></paragraph></subsection>
<subsection id="HB181DBBAB52046789DF9196B0E364A2"><enum>(f)</enum><header>Rules</header><text>Not later than 1 year after the date of enactment of this section, the Secretary shall issue rules implementing this section.</text></subsection>
<subsection id="H4CB4FA8108E649E39DF9A7AACA2E74B2"><enum>(g)</enum><header>Exemptions</header><text>This section shall not apply in any calendar year to an electric utility that—</text>
<paragraph id="H248D4CEDAD1E4AF7B7D4AB21874D9332"><enum>(1)</enum><text>sold less than 4,000,000 megawatt-hours of electric energy to electric consumers during the preceding calendar year; or</text></paragraph>
<paragraph id="H51D57CFFBD434D09BCFBB81B68CCD04"><enum>(2)</enum><text>is located in Hawaii.</text></paragraph></subsection>
<subsection id="HFBE286357D48439F98E3F10000F274EF"><enum>(h)</enum><header>Inflation Adjustment</header><text>Not later than December 31 of each year beginning in 2008, the Secretary shall adjust for inflation the price of a renewable energy credit under subsection (c)(2)(B) and the amount of the civil penalty per kilowatt-hour under subsection (d)(2).</text></subsection>
<subsection id="HFD05F203BFE640EAB716D301B0689CCB"><enum>(i)</enum><header>State Programs</header>
<paragraph id="H802D3630E8A04938982128A3C1470788"><enum>(1)</enum><header>In general</header><text>Nothing in this section shall diminish any authority of a State or political subdivision thereof to adopt or enforce any law or regulation respecting renewable energy, but, except as provided in subsection (d)(3), no such law or regulation shall relieve any person of any requirement otherwise applicable under this section.</text></paragraph>
<paragraph id="H29EAB33F1D2D4F24971B9B6FD55B7C47"><enum>(2)</enum><header>Federal-state coordination</header><text>The Secretary, in consultation with States having renewable energy programs, shall, to the maximum extent practicable, facilitate coordination between the Federal program and State programs.</text></paragraph></subsection>
<subsection id="HE40C2BBFB08A49EAA5034DF513F12D78"><enum>(j)</enum><header>Termination of Authority</header><text>This section and the authority provided by this section terminate on December 31, 2030.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="HF3E70207C1E04D41BABF94DB0599A7F"><enum>505.</enum><header>Extension and expansion of clean renewable energy bonds</header>
<subsection id="H257E2ECA8B98432DA7DF4506A25657F8"><enum>(a)</enum><header>Extension</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/54">Section 54(m)</external-xref> of the Internal Revenue Code of 1986 (relating to termination) is amended by striking <quote>2007</quote> and inserting <quote>2012</quote>.</text></subsection>
<subsection id="HA32B5AF5F3024EEB874EAFC0D8A02C9E"><enum>(b)</enum><header>Annual Volume Cap for Bonds Issued During Extension Period</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/54">section 54(f)</external-xref> of the Internal Revenue Code of 1986 (relating to limitation on amount of bonds designated) is amended to read as follows:</text>
<quoted-block style="OLC" id="H144057E843F247CFBD44489918446343">
<paragraph id="HDB97B28BBEAB4773AB38ECEAA0CB7D2F"><enum>(1)</enum><header>National limitation</header>
<subparagraph id="HB48D985DE00B4023B5CCFC1CCE194009"><enum>(A)</enum><header>Initial national limitation</header><text>With respect to bonds issued after December 31, 2005, and before January 1, 2008, there is a national clean renewable energy bond limitation of $800,000,000.</text></subparagraph>
<subparagraph id="H7EA25DE96C7C41D5A2F148B39A5754"><enum>(B)</enum><header>Annual national limitation</header><text>With respect to bonds issued after December 31, 2007, and before January 1, 2013, there is a national clean renewable energy bond limitation for each calendar year of $1,000,000,000.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HF05695E390B641EDBF262D09BF8FE56C"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.</text></subsection></section>
<section id="HD20E16CF88D640718D025748EA524B28"><enum>506.</enum><header>Credit for wind energy property installed in residences and businesses</header>
<subsection id="H736983165A4A42DE896C72EBBD24F26"><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, as amended by this Act, is amended by inserting after section 30C the following new section:</text>
<quoted-block style="OLC" id="HDDCB468879BB469CB19ED1241D9B6304">
<section id="H62B29AFF964148C8B6EA69719FA3A6AD"><enum>30E.</enum><header>Wind energy property</header>
<subsection id="HDE72B348A17D4C378F28D245169EE788"><enum>(a)</enum><header>Allowance of Credit</header><text>There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the amount paid or incurred by the taxpayer for qualified wind energy property placed in service or installed during such taxable year.</text></subsection>
<subsection id="H77F299EEF5064E488835283BA421CC74"><enum>(b)</enum><header>Limitations</header>
<paragraph id="H3A24B5C6CDEE463BAB00605569DF788B"><enum>(1)</enum><header>In general</header><text>The credit allowed under subsection (a) (determined without regard to paragraph (2)) for any taxable year shall not exceed $10,000.</text></paragraph>
<paragraph id="H989D435C03E64C24855731FB1E4C789E"><enum>(2)</enum><header>Limitation based on amount of tax</header>
<subparagraph id="H0A0048F4C55342560029B66F02650782"><enum>(A)</enum><header>In general</header><text>The credit allowed under subsection (a) for any taxable year shall not exceed the excess of—</text>
<clause id="H84A44C59A6344B2E9782D5FD955A975"><enum>(i)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text></clause>
<clause id="HCED0FBCE4F454FAB84537990740775B1"><enum>(ii)</enum><text>the sum of the credits allowable under this part (other than under this section and subpart C thereof, relating to refundable credits) and section 1397E.</text></clause></subparagraph>
<subparagraph id="H9E4196C7877946B8A524FB9067D8FF5B"><enum>(B)</enum><header>Carryover of unused credit</header><text>If the credit allowable under subsection (a) exceeds the limitation imposed by subparagraph (A) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year.</text></subparagraph></paragraph></subsection>
<subsection id="HC83B16B2B22C444E98E3A65D669C96E0"><enum>(c)</enum><header>Qualified Wind Energy Property</header><text>For purposes of this section, the term <term>qualified wind energy property</term> means a wind turbine if—</text>
<paragraph id="H9B8D640F1AC340E4BEE878EB007BEDF"><enum>(1)</enum><text>such turbine is placed in service or installed on or in connection with property located in the United States,</text></paragraph>
<paragraph id="H07998E430EC34307B860A84E48184FA"><enum>(2)</enum><text>in the case of an individual, the property on or in connection with which such turbine is installed is a dwelling unit which is used as a residence by the taxpayer,</text></paragraph>
<paragraph id="H84C842224BF04781AF9EC2CEB7C0FAEC"><enum>(3)</enum><text>such turbine is used to generate electricity for the property on or in connection with which it is installed, and</text></paragraph>
<paragraph id="H7330AE5B61364B5781288D37A57701AB"><enum>(4)</enum><text>the original use of such turbine commences with the taxpayer.</text></paragraph></subsection>
<subsection id="H6401754983644B76850025A4D7A2D22F"><enum>(d)</enum><header>Special Rules</header><text>For purposes of this section—</text>
<paragraph id="H1669C679928A443D8667AAC54961001D"><enum>(1)</enum><header>Tenant-stockholder in cooperative housing corporation</header><text>In the case of an individual who is a tenant-stockholder (as defined in section 216(b)(2)) in a cooperative housing corporation (as defined in section 216(b)(1)), such individual shall be treated as having paid his tenant-stockholder’s proportionate share (as defined in section 216(b)(3)) of any expenditures paid or incurred for qualified wind energy property by such corporation, and such credit shall be allocated appropriately to such individual.</text></paragraph>
<paragraph id="H3656B94B831A4102B9B261494966567"><enum>(2)</enum><header>Condominiums</header>
<subparagraph id="HBA7DE1681F2F40BC9D98D9713D55A700"><enum>(A)</enum><header>In general</header><text>In the case of an individual who is a member of a condominium management association with respect to a condominium which he owns, such individual shall be treated as having paid his proportionate share of expenditures paid or incurred for qualified wind energy property by such association, and such credit shall be allocated appropriately to such individual.</text></subparagraph>
<subparagraph id="HFDB9C87387A94C3AB582ACCB8BEA6CA0"><enum>(B)</enum><header>Condominium management association</header><text>For purposes of this paragraph, the term <term>condominium management association</term> means an organization which meets the requirements of section 528(c)(2) with respect to a condominium project of which substantially all of the units are used by individuals as residences.</text></subparagraph></paragraph>
<paragraph id="H78236DD01F624D2BA9F3A8B554BB619C"><enum>(3)</enum><header>Labor costs; property subsidized by energy financing</header><text>Rules similar to the rules of paragraphs (1) and (9) of section 25D(e) shall apply for purposes of this section.</text></paragraph></subsection>
<subsection id="H3F899EF084954283B2FEA6DF3C244F3"><enum>(e)</enum><header>Basis Adjustment</header><text>For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to a residence or other property, the basis of such residence or other property shall be reduced by the amount of the credit so allowed.</text></subsection>
<subsection id="H6C3E464D69AD4D48B912793D6BCFD7F5"><enum>(f)</enum><header>Termination</header><text>The credit allowed under this section shall not apply to property placed in service or installed after December 31, 2011.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HB6642B7CA5134CDEB734FC5CAD69BA10"><enum>(b)</enum><header>Conforming Amendment</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/1016">section 1016</external-xref> of the Internal Revenue Code of 1986 (relating to general rule for adjustments to basis) 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 style="OLC" id="H7C1F9EF247414E779B136C4CE471406C">
<paragraph id="H40A931EFF39341038665765D0019F896"><enum>(38)</enum><text>in the case of a residence or other property with respect to which a credit was allowed under section 30E, to the extent provided in section 30E(e).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H669F29A9EC0B49A7B3003C8DBEEEBCF"><enum>(c)</enum><header>Clerical Amendment</header><text>The table of sections for 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 is amended by inserting after the item relating to section 30D the following new item:</text>
<quoted-block style="OLC" id="H5B3164684E1F4D0A86293288E5BF17FF">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 30E. Wind energy property.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HDE5ADC7D0DAD415AB1C832E23631F9A6"><enum>(d)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to taxable years ending after December 31, 2006.</text></subsection></section>
<section id="H2E439C3DF85E4C37006BD7EFF085B971"><enum>507.</enum><header>Extension of business solar investment credit</header>
<subsection id="HB6B8A55927BA4AAA9565E60061DB39C4"><enum>(a)</enum><header>Energy Percentage</header><text>Subclause (II) of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(a)(2)(A)(i)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>January 1, 2008</quote> and inserting <quote>January 1, 2013</quote>.</text></subsection>
<subsection id="H1AD297962EF1475A9699AABBBE540437"><enum>(b)</enum><header>Hybrid Solar Lighting Systems</header><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(a)(3)(A)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>January 1, 2008</quote> and inserting <quote>January 1, 2013</quote>.</text></subsection>
<subsection id="H7C03355AE0F3415B00B4AC9D84CC5186"><enum>(c)</enum><header>Solar Investment Credit Allowed for Public Utility Property</header><text>The second sentence of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(a)(3)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>(other than property described in clause (i) or (ii) of subparagraph (A))</quote> before <quote>shall not</quote>.</text></subsection>
<subsection id="H309340326ED64D09B422FD1B4CE71016"><enum>(d)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text></subsection></section>
<section id="HE1253E24FEFC4ACC964D2D1258AD2D8C"><enum>508.</enum><header>Extension of credit residential energy efficient property</header>
<subsection id="H7D295DDF5C094DB1B958962D8F62DF6D"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(g)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2007</quote> and inserting <quote>December 31, 2012</quote>.</text></subsection>
<subsection id="H9462D0811DB04B86BFD8A9EDD568E060"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text></subsection></section>
<section id="H6B4D4C74B51D475DAA36AA01D13CC5"><enum>509.</enum><header>Clean energy coal bonds</header>
<subsection id="H5D7EAA01EAC94E7EA68FE44FF4D5BB3E"><enum>(a)</enum><header>In General</header><text>Subpart H 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 is amended by adding at the end the following new section:</text>
<quoted-block style="OLC" id="H3020BF0AD5B44650A09BEFB088C75628">
<section id="H66ADD06FBA6E44E4BED1B514BEA7154C"><enum>54A.</enum><header>Credit to holders of clean energy coal bonds</header>
<subsection id="H9BA131423CC94C97A8D6DC28DAACA52"><enum>(a)</enum><header>Allowance of Credit</header><text>If a taxpayer holds a clean energy coal bond on 1 or more credit allowance dates of the bond occurring during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates.</text></subsection>
<subsection id="H044B7E200FC540C1B4BC2F8C570C9DF"><enum>(b)</enum><header>Amount of Credit</header>
<paragraph id="HAACF47A99BFB42579691BC45DF8C40AE"><enum>(1)</enum><header>In general</header><text>The amount of the credit determined under this subsection with respect to any credit allowance date for a clean energy coal bond is 25 percent of the annual credit determined with respect to such bond.</text></paragraph>
<paragraph id="HCC99F7160ABB4679A3B400ADA1C39D8E"><enum>(2)</enum><header>Annual credit</header><text>The annual credit determined with respect to any clean energy coal bond is the product of—</text>
<subparagraph id="H74447E2741974B4E8F87BACA67021254"><enum>(A)</enum><text>the credit rate determined by the Secretary under paragraph (3) for the day on which such bond was sold, multiplied by</text></subparagraph>
<subparagraph id="H441730EF13FC4695B4B49DF93D662649"><enum>(B)</enum><text>the outstanding face amount of the bond.</text></subparagraph></paragraph>
<paragraph id="H42A206E62C8449F4B668C1AE4E19ECF"><enum>(3)</enum><header>Determination</header><text>For purposes of paragraph (2), with respect to any clean energy coal bond, the Secretary shall determine daily or cause to be determined daily a credit rate which shall apply to the first day on which there is a binding, written contract for the sale or exchange of the bond. The credit rate for any day is the credit rate which the Secretary or the Secretary’s designee estimates will permit the issuance of clean energy coal bonds with a specified maturity or redemption date without discount and without interest cost to the qualified issuer.</text></paragraph>
<paragraph id="HD7F2FDC3A4114627B14413B7C59B57EA"><enum>(4)</enum><header>Credit allowance date</header><text>For purposes of this section, the term <term>credit allowance date</term> means—</text>
<subparagraph id="HB354ADBFEE3A46AD91D9799752A0833C"><enum>(A)</enum><text>March 15,</text></subparagraph>
<subparagraph id="H1122CB4D19E84349822003F8576874B7"><enum>(B)</enum><text>June 15,</text></subparagraph>
<subparagraph id="H3C79B53229B3469FB6A20014755CE892"><enum>(C)</enum><text>September 15, and</text></subparagraph>
<subparagraph id="HAA5819A7E79B462EAE168FE0A17698D"><enum>(D)</enum><text>December 15.</text></subparagraph><continuation-text continuation-text-level="paragraph">Such term also includes the last day on which the bond is outstanding.</continuation-text></paragraph>
<paragraph id="H200DC8F32F3640969D516FC44C207755"><enum>(5)</enum><header>Special rule for issuance and redemption</header><text>In the case of a bond which is issued during the 3-month period ending on a credit allowance date, the amount of the credit determined under this subsection with respect to such credit allowance date shall be a ratable portion of the credit otherwise determined based on the portion of the 3-month period during which the bond is outstanding. A similar rule shall apply when the bond is redeemed or matures.</text></paragraph></subsection>
<subsection id="HC275550D464E4DF7875FE60000058E5D"><enum>(c)</enum><header>Limitation Based on Amount of Tax</header><text>The credit allowed under subsection (a) for any taxable year shall not exceed the excess of—</text>
<paragraph id="H6F5946EE5C934CA69711AEEFDAE1B2B1"><enum>(1)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text></paragraph>
<paragraph id="H1D61D408EE31406FAEDEA49F47BF5BB7"><enum>(2)</enum><text>the sum of the credits allowable under this part (other than subpart C thereof (relating to refundable credits) and this section) and section 1397E.</text></paragraph></subsection>
<subsection id="H97ED684CD6BA4456BE2E14D4C39E1539"><enum>(d)</enum><header>Clean Energy Coal Bond</header><text>For purposes of this section—</text>
<paragraph id="HE7F256ADBAE24D57A4641823D9F1D44E"><enum>(1)</enum><header>In general</header><text>The term <term>clean energy coal bond</term> means any bond issued as part of an issue if—</text>
<subparagraph id="H20F53AABD1DB4AB7B9FA1B88E28FC97"><enum>(A)</enum><text>the bond is issued by a qualified issuer pursuant to an allocation by the Secretary to such issuer of a portion of the national clean energy coal bond limitation under subsection (f)(2),</text></subparagraph>
<subparagraph id="H7DD1C0D88BED4BEFB6C0AD32164CD6D2"><enum>(B)</enum><text>95 percent or more of the proceeds from the sale of such issue are to be used for capital expenditures incurred by qualified borrowers for 1 or more qualified projects,</text></subparagraph>
<subparagraph id="H3D3A281C0C50492CAD00F228219B2B93"><enum>(C)</enum><text>the qualified issuer designates such bond for purposes of this section and the bond is in registered form, and</text></subparagraph>
<subparagraph id="H615A784A55B94A929D86FBBD2B3B2F09"><enum>(D)</enum><text>the issue meets the requirements of subsection (h).</text></subparagraph></paragraph>
<paragraph id="H8EFF51F6F93B45AD99DF2BA1AF1341F2"><enum>(2)</enum><header>Qualified project; special use rules</header>
<subparagraph id="H1AFAC723465A498991EDA2F3E627D41D"><enum>(A)</enum><header>In general</header><text>The term <term>qualified project</term> means a qualifying advanced coal project (as defined in section 48A(c)(1)) placed in service by a qualified borrower.</text></subparagraph>
<subparagraph id="H94C1ABD458D84E99A9B400578518E7D0"><enum>(B)</enum><header>Refinancing rules</header><text>For purposes of paragraph (1)(B), a qualified project may be refinanced with proceeds of a clean energy coal bond only if the indebtedness being refinanced (including any obligation directly or indirectly refinanced by such indebtedness) was originally incurred by a qualified borrower after the date of the enactment of this section.</text></subparagraph>
<subparagraph id="HD005B627CB894E35AC1E659610DD7DFD"><enum>(C)</enum><header>Reimbursement</header><text>For purposes of paragraph (1)(B), a clean energy coal bond may be issued to reimburse a qualified borrower for amounts paid after the date of the enactment of this section with respect to a qualified project, but only if—</text>
<clause id="HC94698003B244817B4E50058C1D87427"><enum>(i)</enum><text>prior to the payment of the original expenditure, the qualified borrower declared its intent to reimburse such expenditure with the proceeds of a clean energy coal bond,</text></clause>
<clause id="H5CE3E17352514D44AE814EF7DA1E5066"><enum>(ii)</enum><text>not later than 60 days after payment of the original expenditure, the qualified issuer adopts an official intent to reimburse the original expenditure with such proceeds, and</text></clause>
<clause id="HE7F897C2C9C849A98EF6030052EFB68F"><enum>(iii)</enum><text>the reimbursement is made not later than 18 months after the date the original expenditure is paid.</text></clause></subparagraph>
<subparagraph id="H153AE799E5554AD987AC55D6DF5645C6"><enum>(D)</enum><header>Treatment of changes in use</header><text>For purposes of paragraph (1)(B), the proceeds of an issue shall not be treated as used for a qualified project to the extent that a qualified borrower takes any action within its control which causes such proceeds not to be used for a qualified project. The Secretary shall prescribe regulations specifying remedial actions that may be taken (including conditions to taking such remedial actions) to prevent an action described in the preceding sentence from causing a bond to fail to be a clean energy coal bond.</text></subparagraph></paragraph></subsection>
<subsection id="H3265D6B81E3F4F0C86F0AE1E08205D4F"><enum>(e)</enum><header>Maturity Limitations</header>
<paragraph id="H9BE4A1FDA9104652ABACAFF256762787"><enum>(1)</enum><header>Duration of term</header><text>A bond shall not be treated as a clean energy coal bond if the maturity of such bond exceeds the maximum term determined by the Secretary under paragraph (2) with respect to such bond.</text></paragraph>
<paragraph id="HC7B5409640EC4297A360C05EA5006084"><enum>(2)</enum><header>Maximum term</header><text>During each calendar month, the Secretary shall determine the maximum term permitted under this paragraph for bonds issued during the following calendar month. Such maximum term shall be the term which the Secretary estimates will result in the present value of the obligation to repay the principal on the bond being equal to 50 percent of the face amount of such bond. Such present value shall be determined using as a discount rate the average annual interest rate of tax of tax-exempt obligations having a term of 10 years or more which are issued during the month. If the term as so determined is not a multiple of a whole year, such term shall be rounded to the next highest whole year.</text></paragraph>
<paragraph id="HEDEC49BC31504C5EBC94992C597B50A3"><enum>(3)</enum><header>Ratable principal amortization required</header><text>A bond shall not be treated as a clean energy coal bond unless it is part of an issue which provides for an equal amount of principal to be paid by the qualified issuer during each calendar year that the issue is outstanding.</text></paragraph></subsection>
<subsection id="H452A41BC82134400A37C001FF0FF5FD5"><enum>(f)</enum><header>Limitation on Amount of Bonds Designated</header>
<paragraph id="H09A8BF343463459CB2D293F9B379E33"><enum>(1)</enum><header>National limitation</header><text>There is a national clean energy coal bond limitation of $1,000,000,000.</text></paragraph>
<paragraph id="HBCECB6F0ECA7422CB9CFDB505EC0CC7"><enum>(2)</enum><header>Allocation by secretary</header><text>The Secretary shall allocate the amount described in paragraph (1) among qualified projects in such manner as the Secretary determines appropriate.</text></paragraph></subsection>
<subsection id="H2734AB19D8334596ADB8EA3C6BD8E99D"><enum>(g)</enum><header>Credit Included in Gross Income</header><text>Gross income includes the amount of the credit allowed to the taxpayer under this section (determined without regard to subsection (c)) and the amount so included shall be treated as interest income.</text></subsection>
<subsection id="H7D7036B8D4B44590B156850044601364"><enum>(h)</enum><header>Special Rules Relating to Expenditures</header>
<paragraph id="HB45E955CC5894523B2BAA385B288EB88"><enum>(1)</enum><header>In general</header><text>An issue shall be treated as meeting the requirements of this subsection if, as of the date of issuance, the qualified issuer reasonably expects—</text>
<subparagraph id="H9043FAF245D54CB890A11F23C1489285"><enum>(A)</enum><text>at least 95 percent of the proceeds from the sale of the issue are to be spent for 1 or more qualified projects within the 5-year period beginning on the date of issuance of the clean energy bond,</text></subparagraph>
<subparagraph id="HB69AACA0ABCA4A81A7E0AFBDE9C7E19"><enum>(B)</enum><text>a binding commitment with a third party to spend at least 10 percent of the proceeds from the sale of the issue will be incurred within the 6-month period beginning on the date of issuance of the clean energy bond or, in the case of a clean energy bond the proceeds of which are to be loaned to 2 or more qualified borrowers, such binding commitment will be incurred within the 6-month period beginning on the date of the loan of such proceeds to a qualified borrower, and</text></subparagraph>
<subparagraph id="H04555D2B13F44DC093C64000D8CD7DEE"><enum>(C)</enum><text>such projects will be completed with due diligence and the proceeds from the sale of the issue will be spent with due diligence.</text></subparagraph></paragraph>
<paragraph id="H7944D022BA044F2981D9238FC66C36F7"><enum>(2)</enum><header>Extension of period</header><text>Upon submission of a request prior to the expiration of the period described in paragraph (1)(A), the Secretary may extend such period if the qualified issuer establishes that the failure to satisfy the 5-year requirement is due to reasonable cause and the related projects will continue to proceed with due diligence.</text></paragraph>
<paragraph id="H6DD8CDCED65C48FAA01904891E70872F"><enum>(3)</enum><header>Failure to spend required amount of bond proceeds within 5 years</header><text>To the extent that less than 95 percent of the proceeds of such issue are expended by the close of the 5-year period beginning on the date of issuance (or if an extension has been obtained under paragraph (2), by the close of the extended period), the qualified issuer shall redeem all of the nonqualified bonds within 90 days after the end of such period. For purposes of this paragraph, the amount of the nonqualified bonds required to be redeemed shall be determined in the same manner as under section 142.</text></paragraph></subsection>
<subsection id="HA8B1CFCA8BB94A46B8F8A47FDE1898"><enum>(i)</enum><header>Special Rules Relating to Arbitrage</header><text>A bond which is part of an issue shall not be treated as a clean energy coal bond unless, with respect to the issue of which the bond is a part, the qualified issuer satisfies the arbitrage requirements of section 148 with respect to proceeds of the issue.</text></subsection>
<subsection id="HBDB25317B0CB4BE08B76241E41989C7E"><enum>(j)</enum><header>Cooperative Electric Company; Qualified Energy Tax Credit Bond Lender; Governmental Body; Qualified Borrower</header><text>For purposes of this section—</text>
<paragraph id="H0933810E093743BD80A3F8A1DDA20990"><enum>(1)</enum><header>Cooperative electric company</header><text>The term <term>cooperative electric company</term> means a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C), or a not-for-profit electric utility which has received a loan or loan guarantee under the Rural Electrification Act.</text></paragraph>
<paragraph id="H3062A1F8A97C448EB21EFB7996362626"><enum>(2)</enum><header>Clean energy bond lender</header><text>The term <term>clean energy bond lender</term> means a lender which is a cooperative which is owned by, or has outstanding loans to, 100 or more cooperative electric companies and is in existence on February 1, 2002, and shall include any affiliated entity which is controlled by such lender.</text></paragraph>
<paragraph id="H7768CF3691734B35A354C4492E602E38"><enum>(3)</enum><header>Governmental body</header><text>The term <term>governmental body</term> means any State, territory, possession of the United States, the District of Columbia, Indian tribal government, and any political subdivision thereof.</text></paragraph>
<paragraph id="H7304D0FC205944DF92006FEB28F3D9F2"><enum>(4)</enum><header>Qualified issuer</header><text>The term <term>qualified issuer</term> means—</text>
<subparagraph id="HECF8F6352C92445A941BBACCDBB45DC6"><enum>(A)</enum><text>a clean energy bond lender,</text></subparagraph>
<subparagraph id="HF06A2D4A378D49049EA0835240F503E6"><enum>(B)</enum><text>a cooperative electric company,</text></subparagraph>
<subparagraph id="H99626B8BB8B74B4AB0E628C74952EED3"><enum>(C)</enum><text>a governmental body, or</text></subparagraph>
<subparagraph id="HC5CC4DD467524068A7C2F2A25C820068"><enum>(D)</enum><text>the Tennessee Valley Authority.</text></subparagraph></paragraph>
<paragraph id="H664A8F66EB46428B9E01F2B9B391E9F0"><enum>(5)</enum><header>Qualified borrower</header><text>The term <term>qualified borrower</term> means—</text>
<subparagraph id="H251F8B570800452298C1C9FCF158EFA9"><enum>(A)</enum><text>a mutual or cooperative electric company described in section 501(c)(12) or 1381(a)(2)(C),</text></subparagraph>
<subparagraph id="H6543D2A38BD6449ABC34E4B7CDE447AA"><enum>(B)</enum><text>a governmental body, or</text></subparagraph>
<subparagraph id="H7F9FD34E9DAD4546988EECF676F6B7EC"><enum>(C)</enum><text>the Tennessee Valley Authority.</text></subparagraph></paragraph></subsection>
<subsection id="HEE6F4F28FF7F4B168E4F77DB7F190169"><enum>(k)</enum><header>Special Rules Relating to Pool Bonds</header><text>No portion of a pooled financing bond may be allocable to any loan unless the borrower has entered into a written loan commitment for such portion prior to the issue date of such issue.</text></subsection>
<subsection id="HDE3C8FE73AF6474DAC9F2100FB8EDAD"><enum>(l)</enum><header>Other Definitions and Special Rules</header><text>For purposes of this section—</text>
<paragraph id="H0D5E5F079E4A4791BD18258E6DEEE84C"><enum>(1)</enum><header>Bond</header><text>The term <term>bond</term> includes any obligation.</text></paragraph>
<paragraph id="H7668152911904A6AB4E5012DAB8C85E4"><enum>(2)</enum><header>Pooled financing bond</header><text>The term <term>pooled financing bond</term> shall have the meaning given such term by section 149(f)(4)(A).</text></paragraph>
<paragraph id="HAD1175C0F652432EB4B1092EEDEADFA"><enum>(3)</enum><header>Partnership; s corporation; and other pass-thru entities</header>
<subparagraph id="H6B6E4F630EE14E18BF101E7B87C3AE66"><enum>(A)</enum><header>In general</header><text>Under regulations prescribed by the Secretary, in the case of a partnership, trust, S corporation, or other pass-thru entity, rules similar to the rules of section 41(g) shall apply with respect to the credit allowable under subsection (a).</text></subparagraph>
<subparagraph id="H1260732B8233426FBB8084FA628D5E04"><enum>(B)</enum><header>No basis adjustment</header><text>Rules similar to the rules under section 1397E(i)(2) shall apply.</text></subparagraph></paragraph>
<paragraph id="H80C1B7BA9B394387AC9F5BF61E3C05B6"><enum>(4)</enum><header>Bonds held by regulated investment companies</header><text>If any clean energy coal bond is held by a regulated investment company, the credit determined under subsection (a) shall be allowed to shareholders of such company under procedures prescribed by the Secretary.</text></paragraph>
<paragraph id="H0775757FFB7540659502DED15C5003E5"><enum>(5)</enum><header>Treatment for estimated tax purposes</header><text>Solely for purposes of sections 6654 and 6655, the credit allowed by this section to a taxpayer by reason of holding a clean energy coal bond on a credit allowance date shall be treated as if it were a payment of estimated tax made by the taxpayer on such date.</text></paragraph>
<paragraph id="H2F14F7164C4D467FA448AEF0B692571E"><enum>(6)</enum><header>Reporting</header><text>Issuers of clean energy coal bonds shall submit reports similar to the reports required under section 149(e).</text></paragraph></subsection>
<subsection id="HF72B2BAE3B6241B29F8EEC044B3787E3"><enum>(m)</enum><header>Termination</header><text>This section shall not apply with respect to any bond issued after December 31, 2010.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H97B43B33AE5B4FCEBD932C00657D521D"><enum>(b)</enum><header>Reporting</header><text>Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/6049">section 6049</external-xref> of the Internal Revenue Code of 1986 (relating to returns regarding payments of interest) is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="HE7F9BAE2077F4DB29DEB04BC8D3C888C">
<paragraph id="HBAA364E07B2E48AE9FB4160681231F8C"><enum>(9)</enum><header>Reporting of credit on clean energy coal bonds</header>
<subparagraph id="H5D84342FFD2743A79061B096C6E9EBC"><enum>(A)</enum><header>In general</header><text>For purposes of subsection (a), the term <term>interest</term> includes amounts includible in gross income under section 54A(g) and such amounts shall be treated as paid on the credit allowance date (as defined in section 54A(b)(4)).</text></subparagraph>
<subparagraph id="H23DBA700EFBF48D1BDFFAC4553B3EDB0"><enum>(B)</enum><header>Reporting to corporations, etc</header><text>Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A), subsection (b)(4) shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i) of such subsection.</text></subparagraph>
<subparagraph id="HD030F2D3083D48C99740655176F38F62"><enum>(C)</enum><header>Regulatory authority</header><text>The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H9DE3CBACDBA3404B8FCAA6D4D4316B01"><enum>(c)</enum><header>Clerical Amendment</header><text>The table of sections for subpart H 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 is amended by adding at the end the following new item:</text>
<quoted-block style="OLC" id="H955F02BA655F46E0BB81F2C6083D3380">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 54A. Credit to holders of clean energy coal bonds.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HA392D23C03D5420CABA1B983F16C1B00"><enum>(d)</enum><header>Issuance of Regulations</header><text>The Secretary of the Treasury shall issues regulations required under <external-xref legal-doc="usc" parsable-cite="usc/26/54A">section 54A</external-xref> of the Internal Revenue Code of 1986 (as added by this section) not later than 120 days after the date of the enactment of this Act.</text></subsection>
<subsection id="HF1BAFB0F47FB46C0B7F55D37C00EDF"><enum>(e)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to bonds issued after December 31, 2006.</text></subsection></section>
<section id="HA9603BEF7C8E4136BFC2B23857461C82"><enum>510.</enum><header>Increase in credit limitation for qualifying gasification projects</header>
<subsection id="HA56722F3747948A8B309E3EF23B6BB9C"><enum>(a)</enum><header>In General</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/48B">section 48B(d)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>$350,000,000</quote> and inserting <quote>$4,000,000,000</quote>.</text></subsection>
<subsection id="HEA497F9B12A043DA9026CBB7BB295E8C"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall take effect as if included in section 1307 of the Energy Policy Act of 2005.</text></subsection></section>
<section id="HCAFA9174D4F64F3CA684F6FAFE4EF1FE"><enum>511.</enum><header>Modification of qualifying advanced coal project credit</header>
<subsection id="HFDEF0DEF4471404B974B062BD340673D"><enum>(a)</enum><header>In General</header><text>Subparagraph (C) of <external-xref legal-doc="usc" parsable-cite="usc/26/48A">section 48A(e)(1)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>(300 megawatts in the case of projects using subbituminous or lignite as a primary feedstock)</quote> after <quote>400 megawatts</quote>.</text></subsection>
<subsection id="H47BE29E4B7BD4D54A96304BABB3923A0"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall take effect as if included in section 1307 of the Energy Policy Act of 2005.</text></subsection></section>
<section id="HD87DDB733217406399DC1BDB6B4A62"><enum>512.</enum><header>Great Plains Synfuels Trust</header>
<subsection id="H352CC5C952EC42C096DB77899C935627"><enum>(a)</enum><header>In General</header><text>Not later than 90 days after the date of enactment of this Act, the Secretary shall—</text>
<paragraph id="HC0BF946CEBC14909BEE473876178D338"><enum>(1)</enum><text>establish a trust to be known as the <quote>Great Plains Synfuels Trust</quote> (referred to in this section as the <quote>Trust</quote>); and</text></paragraph>
<paragraph id="H89B146AC191B468AB8FF22AC1F54E665"><enum>(2)</enum><text>deposit in the Trust 50 percent of the revenue-sharing payments that would otherwise be received under the asset purchase agreement between the Secretary and the Dakota Gasification Company, dated October 7, 1988, and as in effect on the date of enactment of this Act, as a result of the operation of the Great Plains Synfuels Plant.</text></paragraph></subsection>
<subsection id="H2E67844965BD492D81972B94ED00DCF0"><enum>(b)</enum><header>Coal Development Program</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary shall—</text>
<paragraph id="H59DD96ED2CED4E2E90D89BBAEFA806BB"><enum>(1)</enum><text>establish an advanced clean low-rank coal development program; and</text></paragraph>
<paragraph id="HC883022F162E43D287FBA5C85C02060"><enum>(2)</enum><text>use funds from the Trust, on such cost-sharing basis as the Secretary shall establish, to carry out the program at the Great Plains Synfuels Plant.</text></paragraph></subsection></section>
<enum>VI</enum><header>ENERGY EFFICIENCY</header>
<section id="HB000F85C385449A4A7D1D068803F7193"><enum>601.</enum><header>Energy credit for combined heat and power system property</header>
<subsection id="H8018B35D930141A086C2DA285DB2D29E"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)</external-xref> of the Internal Revenue Code of 1986 (defining energy property) is by striking <quote>or</quote> at the end of clause (iii), by inserting <quote>or</quote> at the end of clause (iv), and by adding at the end the following new clause:</text>
<quoted-block style="OLC" id="H9182BB87996043AB8E89407919003D17">
<clause id="HCE41C0C7D4954DC0B503C3D058E7374B"><enum>(v)</enum><text>combined heat and power system property,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H8EF9AF8A2243451A00CFB4755B0D3F6"><enum>(b)</enum><header>Combined Heat and Power System Property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="H9DB5CA60D0F246B5A139BFA5D5A22D95">
<subsection id="HCDFE416ECD7A4932AD005B70970082F1"><enum>(d)</enum><header>Combined Heat and Power System Property</header><text>For purposes of subsection (a)(3)(A)(v)—</text>
<paragraph id="HEFFB274E8B7045F8BC87DC9137722F00"><enum>(1)</enum><header>Combined heat and power system property</header><text>The term <term>combined heat and power system property</term> means property comprising a system—</text>
<subparagraph id="H30814196C9684C219040F5E89459FE6F"><enum>(A)</enum><text>which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications),</text></subparagraph>
<subparagraph id="HD108AD482B4E4C0B9FF08D8BBCFB5FF3"><enum>(B)</enum><text>which has an electrical capacity of not more than 15 megawatts or a mechanical energy capacity of not more than 2,000 horsepower or an equivalent combination of electrical and mechanical energy capacities,</text></subparagraph>
<subparagraph id="H5F11144872C947FEB3E71605A086FE06"><enum>(C)</enum><text>which produces—</text>
<clause id="H80E44B2C8B6A49F3B4601B94507083C0"><enum>(i)</enum><text>at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof), and</text></clause>
<clause id="H70F9CF02FBA44A5E9C6793DFB19864E1"><enum>(ii)</enum><text>at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof),</text></clause></subparagraph>
<subparagraph id="H898D2E10DBC4475292BE957EEF0400C8"><enum>(D)</enum><text>the energy efficiency percentage of which exceeds 60 percent, and</text></subparagraph>
<subparagraph id="HB351912460644EE9B45540F8700CD00"><enum>(E)</enum><text>which is placed in service before January 1, 2011.</text></subparagraph></paragraph>
<paragraph id="H9EC2EA4305C447C3A2390050C2DD83D"><enum>(2)</enum><header>Special rules</header>
<subparagraph id="H90594ED9AAC44B9A9FE879192B746C88"><enum>(A)</enum><header>Energy efficiency percentage</header><text>For purposes of this subsection, the energy efficiency percentage of a system is the fraction—</text>
<clause id="H13E777D47CB1445D9FE7D53D74DE42C7"><enum>(i)</enum><text>the numerator of which is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates, and expected to be consumed in its normal application, and</text></clause>
<clause id="HF141C4D3078B4E33B14F1D6692A751D7"><enum>(ii)</enum><text>the denominator of which is the lower heating value of the fuel sources for the system.</text></clause></subparagraph>
<subparagraph id="HED40493510274C2E9F85E600D75454E"><enum>(B)</enum><header>Determinations made on btu basis</header><text>The energy efficiency percentage and the percentages under paragraph (1)(C) shall be determined on a Btu basis.</text></subparagraph>
<subparagraph id="HE08BCD3DD3AD45DABB49DEF2CBCFBC7"><enum>(C)</enum><header>Input and output property not included</header><text>The term <term>combined heat and power system property</term> does not include property used to transport the energy source to the facility or to distribute energy produced by the facility.</text></subparagraph>
<subparagraph id="HD1C2460CE333433BA78C985606471734"><enum>(D)</enum><header>Certain exception not to apply</header><text>The first sentence of the matter in subsection (a)(3) which follows subparagraph (D) thereof shall not apply to combined heat and power system property.</text></subparagraph></paragraph>
<paragraph id="HE005A803A37A4FF5B78F004817085189"><enum>(3)</enum><header>Systems using bagasse</header><text>If a system is designed to use bagasse for at least 90 percent of the energy source—</text>
<subparagraph id="H7258D77989C2474BB7C6BB2EA09131B7"><enum>(A)</enum><text>paragraph (1)(D) shall not apply, but</text></subparagraph>
<subparagraph id="HDB647774190646A196C9F92F93CFDC03"><enum>(B)</enum><text>the amount of credit determined under subsection (a) with respect to such system shall not exceed the amount which bears the same ratio to such amount of credit (determined without regard to this paragraph) as the energy efficiency percentage of such system bears to 60 percent.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H2743BDC64C7749FBA00997B559A6C74"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to periods after December 31, 2006, in taxable years ending after such date, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text></subsection></section>
<section id="H8DD6983AC4BA4D5F87529D2DBFC80778"><enum>602.</enum><header>Extension of new energy efficient home credit</header>
<subsection id="HE7103F3A874F409FB27730DA342E6741"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(g)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2007</quote> and inserting <quote>December 31, 2010</quote>.</text></subsection>
<subsection id="HA1C22F929EB4409D81C7B4A9E47415AE"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to qualified new energy efficient homes acquired after the date of enactment of this Act, in taxable years ending after such date.</text></subsection></section>
<section id="H9319A39062BB4C63A364141F421B4337"><enum>603.</enum><header>Modification and extension of energy efficient commercial buildings deduction</header>
<subsection id="HCEE8BA72BA5A4284B0037BE04C994C76"><enum>(a)</enum><header>Increase in Credit Amount</header>
<paragraph id="HA64FB03ED7DB4628BDB570399300F475"><enum>(1)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/179D">section 179D(b)(1)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>$1.80</quote> and inserting <quote>$2.25</quote>.</text></paragraph>
<paragraph id="H73B3D2E639CD456A8B40D0FF7D1BDDF1"><enum>(2)</enum><header>Partial allowance</header><text>Subparagraph (A) of section 179D(1) of such Code is amended—</text>
<subparagraph id="H963F7A3953E7441282A59113ABD591C4"><enum>(A)</enum><text>by striking <quote>$.60</quote> and inserting <quote>$.75</quote>, and</text></subparagraph>
<subparagraph id="H41EEB95123434B3F9CB345E9BE88E8D3"><enum>(B)</enum><text>by striking <quote>$1.80</quote> and inserting <quote>$2.25</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="H801E5DCCB9DA42FAAF23ED033FBC9300"><enum>(b)</enum><header>Extension</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(g)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2007</quote> and inserting <quote>December 31, 2010</quote>.</text></subsection>
<subsection id="H8FBA686CE7774C20870634D05E51B69C"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to property placed in service after December 31, 2006.</text></subsection></section>
<section id="H776049988ACE40A6BC8647A3C0649EDB"><enum>604.</enum><header>Extension of nonbusiness energy property</header>
<subsection id="H803DA1179995431F8497BD037E14007F"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(g)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2007</quote> and inserting <quote>December 31, 2010</quote>.</text></subsection>
<subsection id="H3EC085743290463A8962725CDC47F5B4"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act.</text></subsection></section>