[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5890 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5890

 To establish the American-Made Energy Trust Fund, to increase the tax 
 credits for cellulosic biomass ethanol, to extend tax incentives for 
     solar and fuel cell property, to promote coal-to-liquid fuel 
 activities, to direct the Secretary of the Interior to establish and 
  implement a competitive oil and gas leasing program for the Coastal 
                Plain of Alaska, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 26, 2006

Mr. Nunes (for himself, Mr. Cardoza, Mr. Shimkus, Mr. Costa, Mr. Pombo, 
   Mr. Rehberg, Mr. Lewis of Kentucky, Mr. Kingston, Mr. English of 
    Pennsylvania, Mr. Pickering, Mr. Hall, Mr. Barton of Texas, Mr. 
 Whitfield, Mr. Cuellar, Mr. Davis of Tennessee, Mr. Ross, Mr. Cramer, 
  Mr. Boren, Mrs. Capito, Mr. Melancon, Mr. Boozman, Mr. Peterson of 
  Minnesota, and Mr. Murphy) introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
Committees on Resources, Energy and Commerce, and Science, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To establish the American-Made Energy Trust Fund, to increase the tax 
 credits for cellulosic biomass ethanol, to extend tax incentives for 
     solar and fuel cell property, to promote coal-to-liquid fuel 
 activities, to direct the Secretary of the Interior to establish and 
  implement a competitive oil and gas leasing program for the Coastal 
                Plain of Alaska, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American-Made 
Energy Freedom Act of 2006''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
TITLE I--TAX INCENTIVES FOR CELLULOSIC BIOMASS ETHANOL, SOLAR AND FUEL 
        CELL PROPERTY, AND CERTAIN LIQUID FUEL DERIVED FROM COAL

Sec. 101. Increased tax credits for cellulosic biomass ethanol.
Sec. 102. Extension of energy credit for solar and fuel cell property.
Sec. 103. Extension and modification of credit for residential energy 
                            efficient property.
Sec. 104. Extension and modification of excise tax credits for certain 
                            liquid fuel derived from coal.
               TITLE II--AMERICAN-MADE ENERGY TRUST FUND

Sec. 201. Establishment of American-Made Energy Trust Fund.
TITLE III--DEVELOPMENT OF OIL AND GAS RESOURCES OF THE COASTAL PLAIN OF 
                                 ALASKA

Sec. 301. Definitions.
Sec. 302. Leasing program for lands within the Coastal Plain.
Sec. 303. Lease sales.
Sec. 304. Grant of leases by the Secretary.
Sec. 305. Lease terms and conditions.
Sec. 306. Coastal plain environmental protection.
Sec. 307. Expedited judicial review.
Sec. 308. Federal and State distribution of revenues.
Sec. 309. Rights-of-way across the Coastal Plain.
Sec. 310. Conveyance.
Sec. 311. Local government impact aid and community service assistance.

TITLE I--TAX INCENTIVES FOR CELLULOSIC BIOMASS ETHANOL, SOLAR AND FUEL 
        CELL PROPERTY, AND CERTAIN LIQUID FUEL DERIVED FROM COAL

SEC. 101. INCREASED TAX CREDITS FOR CELLULOSIC BIOMASS ETHANOL.

    (a) Income Tax Credit.--
            (1) In general.--Section 40 of the Internal Revenue Code of 
        1986 (relating to alcohol used as fuel) is amended by adding at 
        the end the following new subsection:
    ``(i) Increased Credit for Cellulosic Biomass Ethanol.--
            ``(1) In general.--In the case of cellulosic biomass 
        ethanol--
                    ``(A) subsection (h) shall not apply,
                    ``(B) if such ethanol has a proof of at least 150 
                but less than 190--
                            ``(i) subsection (b)(3) shall not apply, 
                        and
                            ``(ii) subsections (b)(1)(A), (b)(2)(A), 
                        (d)(3)(A), and (d)(3)(B) shall each be applied 
                        by substituting `the low-proof cellulosic 
                        ethanol amount' for `60 cents', and
                    ``(C) if such alcohol has a proof of at least 190, 
                subsections (b)(1)(A), (b)(2)(A), (d)(3)(A), and 
                (d)(3)(B) shall each be applied by substituting `the 
                cellulosic ethanol amount' for `60 cents'.
            ``(2) Limitations.--
                    ``(A) Overall dollar limitation.--Paragraph (1) 
                shall not apply to any cellulosic biomass ethanol which 
                is sold or used after the date on which the Secretary 
                certifies that, in the estimation of the Secretary, 
                more than $1,250,000,000 has been allowed, in the 
                aggregate, as a credit under this section with respect 
                to cellulosic biomass ethanol taken into account under 
                this subsection and subsection (c).
                    ``(B) Per taxpayer maximum.--
                            ``(i) In general.--With respect to any 
                        taxpayer, paragraph (1) shall only apply to the 
                        first 25,000,000 gallons of cellulosic biomass 
                        ethanol sold or used by the taxpayer during any 
                        calendar year.
                            ``(ii) Termination of taxpayer maximum.--
                        Clause (i) shall not apply with respect to any 
                        calendar year after the first calendar year 
                        with respect to which the Secretary certifies 
                        that, in the estimation of the Secretary, at 
                        least 10 taxpayers sell or use cellulosic 
                        biomass ethanol to which paragraph (1) applies.
                    ``(C) Per taxpayer minimum.--With respect to any 
                taxpayer, paragraph (1) shall not apply to any 
                cellulosic biomass ethanol sold or used by the taxpayer 
                during any calendar year unless the aggregate amount of 
                cellulosic biomass ethanol sold or used by such 
                taxpayer during such calendar year exceeds 5,000,000 
                gallons.
            ``(3) Cellulosic ethanol amount; low-proof cellulosic 
        ethanol amount.--
                    ``(A) In general.--The terms `cellulosic ethanol 
                amount' and `low-proof cellulosic ethanol amount' mean 
                $1.25 and $1.10, respectively.
                    ``(B) Phase-out based on price of oil.--
                            ``(i) In general.--The $1.25 and $1.10 
                        amounts contained in subparagraph (A) shall 
                        each be reduced (but not below $0.51 and 
                        $0.3778, respectively) by an amount which bears 
                        the same ratio to the amount so contained in 
                        subparagraph (A) (as so increased) as--
                                    ``(I) the amount (if any) by which 
                                the price of a barrel of crude oil 
                                exceeds $40, bears to
                                    ``(II) $71.
                            ``(ii) Determination by secretary.--The 
                        price of a barrel of crude oil shall be 
                        determined periodically by the Secretary under 
                        such methodology as the Secretary determines 
                        appropriate. The price determined under this 
                        clause and the reduction required by clause (i) 
                        shall apply with respect to cellulosic biomass 
                        ethanol sold or used during the period with 
                        respect to which such determination relates.
                    ``(C) Inflation adjustment of phase-out based on 
                price of oil.--In the case of any period beginning in a 
                calendar year after 2007, the dollar amounts contained 
                in subclauses (I) and (II) of subparagraph (B)(i) shall 
                be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2006' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $1.
            ``(4) Cellulosic biomass ethanol.--The term `cellulosic 
        biomass ethanol' means ethanol produced by enzymatic hydrolysis 
        of any lignocellulosic or hemicellulosic feedstock that is 
        available on a renewable or recurring basis, including 
        agricultural residues, agricultural fibers, dedicated energy 
        crops, grasses, plants, and wood and wood residues.
            ``(5) Application of aggregation, etc., rules.--Rules 
        similar to the rules of paragraphs (2), (3), and (4) of 
        subsection (g) shall apply for purposes of the limitations 
        under subparagraphs (B) and (C) of paragraph (2).''.
            (2) Termination.--Subsection (e) of section 40 of such Code 
        (relating to termination) is amended--
                    (A) by redesignating paragraph (2) as paragraph 
                (3),
                    (B) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Cellulosic biomass ethanol.--In the case of 
        cellulosic biomass ethanol with respect to which subsection 
        (i)(1) applies--
                    ``(A) paragraph (1) shall not apply, and
                    ``(B) this section shall not apply to any sale or 
                use of such ethanol for any period after the earlier of 
                the date on which the Secretary makes the certification 
                described in subsection (i)(2)(A) or December 31, 
                2023.'', and
                    (C) by inserting ``or (2)'' after ``paragraph (1)'' 
                in paragraph (3) (as redesignated by this paragraph).
    (b) Excise Tax Credit.--
            (1) In general.--Paragraph (2) of section 6426(b) of the 
        Internal Revenue Code of 1986 (relating to applicable amount) 
        is amended--
                    (A) by adding at the end the following new 
                subparagraph:
                    ``(C) Cellulosic biomass ethanol.--In the case of 
                cellulosic biomass ethanol to which section 40(i)(1) 
                applies or to which such section would apply but for 
                subsections (c) and (e) of section 40, the applicable 
                amount is the cellulosic ethanol amount (as defined in 
                section 40(i)(3)).'', and
                    (B) by striking ``subparagraph (B)'' in 
                subparagraph (A) and inserting ``subparagraphs (B) or 
                (C)''.
            (2) Termination.--Paragraph (5) of section 6426(b) of such 
        Code (relating to termination) is amended to read as follows:
            ``(5) Termination.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), this subsection shall not apply to 
                any sale, use, or removal for any period after December 
                31, 2010.
                    ``(B) Cellulosic biomass ethanol.--In the case of 
                any cellulosic biomass ethanol with respect to which 
                paragraph (2)(C) applies--
                            ``(i) subparagraph (A) shall not apply, and
                            ``(ii) this subsection shall not apply to 
                        any sale or use of such ethanol for any period 
                        after the earlier of the date on which the 
                        Secretary makes the certification described in 
                        section 40(i)(2)(A) or December 31, 2023.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after the date of the enactment of this Act.

SEC. 102. EXTENSION OF ENERGY CREDIT FOR SOLAR AND FUEL CELL PROPERTY.

    (a) 30 Percent Credit for Solar.--Subclause (II) of section 
48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by 
striking ``2008'' and inserting ``2013''.
    (b) Qualified Fuel Cell Property.--
            (1) In general.--Subparagraph (E) of section 48(c)(1) of 
        such Code is amended by striking ``2007'' and inserting 
        ``2012''.
            (2) Termination of special rule.--Subparagraph (D) of 
        section 48(c)(1) of such Code is amended by inserting ``placed 
        in service before January 1, 2008, and'' after ``qualified fuel 
        cell property which is''.
    (c) Fiber-Optic Distributed Sunlight.--Clause (ii) of section 
48(a)(3)(A) of such Code is amended by striking ``2008'' and inserting 
``2013''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 103. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY 
              EFFICIENT PROPERTY.

    (a) In General.--Subsection (g) of section 25D of the Internal 
Revenue Code of 1986 is amended by striking ``2007'' and inserting 
``2012''.
    (b) Modification of Maximum Credit for Qualified Solar Electricity 
Property.--Subparagraph (A) of section 25D(b)(1) of such Code is 
amended to read as follows:
                    ``(A) $2,000 with respect to each half kilowatt of 
                capacity of property for which qualified solar 
                electricity property expenditures are made,''.
    (c) Conforming Amendments.--
            (1) Paragraph (1) of section 25D(a) of such Code is amended 
        by striking ``photovoltaic'' and inserting ``solar 
        electricity''.
            (2) Paragraph (2) of section 25D(d) of such Code is amended 
        in the text and in the heading by striking ``photovoltaic'' and 
        inserting ``solar electricity''.
            (3) Paragraph (4)(A)(i) of section 25D(e) of such Code is 
        amended by striking ``photovoltaic'' and inserting ``solar 
        electricity''.
    (d) Effective Dates.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect on the date of the enactment of this Act.
            (2) Increase in credit for solar electricity property.--The 
        amendments made by subsections (b) and (c) shall apply to 
        taxable years beginning after December 31, 2005.
            (3) Hold harmless transition rule.--In the case of any 
        taxable year beginning after December 31, 2005, and before the 
        date of the enactment of this Act, the taxpayer may elect (at 
        such time and in such form and manner as the Secretary of the 
        Treasury may determine) to apply the limitation under section 
        25D(b)(1)(A) of the Internal Revenue Code of 1986 which was in 
        effect immediately before the date of the enactment of this Act 
        for purposes of determining the credit under section 25D of 
        such Code for such taxable year in lieu of such limitation as 
        otherwise in effect for such year.

SEC. 104. EXTENSION AND MODIFICATION OF EXCISE TAX CREDITS FOR CERTAIN 
              LIQUID FUEL DERIVED FROM COAL.

    (a) Modification of Excise Tax Credits.--Section 6426 of the 
Internal Revenue Code of 1986 is amended by redesignating subsection 
(g) as subsection (h) and by inserting after subsection (f) the 
following new subsection:
    ``(g) Special Rules for Liquid Fuel Derived From Coal.--
            ``(1) Limitations.--
                    ``(A) Overall dollar limitation.--No liquid coal 
                fuel shall be taken into account in determining the 
                alternative fuel credit under subsection (d) or the 
                alternative fuel mixture credit under subsection (e) if 
                such fuel is sold or used after the date on which the 
                Secretary certifies that, in the estimation of the 
                Secretary, more than $1,500,000,000 has been allowed, 
                in the aggregate, as a credit under this section with 
                respect to liquid coal fuel taken into account under 
                subsections (d) and (e).
                    ``(B) Per taxpayer maximum.--
                            ``(i) In general.--With respect to any 
                        taxpayer, only the first 150,000,000 gallons of 
                        liquid coal fuel which is sold or used by the 
                        taxpayer during any calendar year may be taken 
                        into account under subsection (d) or (e).
                            ``(ii) Termination of taxpayer maximum.--
                        Clause (i) shall not apply with respect to any 
                        calendar year after the first calendar year 
                        with respect to which the Secretary certifies 
                        that, in the estimation of the Secretary, at 
                        least 5 taxpayers sell or use liquid coal fuel 
                        which is taken into account under subsection 
                        (d) or (e).
                    ``(C) Per taxpayer minimum.--With respect to any 
                taxpayer, liquid coal fuel sold or used by the taxpayer 
                during any calendar year shall not be taken into 
                account in determining the alternative fuel credit 
                under subsection (d) or the alternative fuel mixture 
                credit under subsection (e) unless the aggregate amount 
                of liquid coal fuel sold or used by such taxpayer 
                during such calendar year exceeds 15,000,000 gallons.
            ``(2) Adjustment of credit amount.--Solely for purposes of 
        determining that portion of the alternative fuel credit under 
        subsection (d) and the alternative fuel mixture credit under 
        subsection (e) which is allowed with respect to liquid coal 
        fuel--
                    ``(A) Phase-out based on price of oil.--
                            ``(i) In general.--The 50 cent amounts 
                        contained in subsections (d)(1) and (e)(1) 
                        shall each be reduced (but not below zero) by 
                        an amount which bears the same ratio to the 
                        amount so contained in subsection (d)(1) or 
                        (e)(1) (as so increased) as--
                                    ``(I) the amount (if any) by which 
                                the price of a barrel of crude oil