[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2829 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2829

  To reduce the addiction of the United States to oil, to ensure near-
term energy affordability and empower American families, to accelerate 
clean fuels and electricity, to provide government leadership for clean 
 and secure energy, to secure a reliable, affordable, and sustainable 
                 energy future, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 17, 2006

  Ms. Cantwell (for herself, Mr. Reid, Mr. Durbin, Ms. Mikulski, Mr. 
 Dodd, Mr. Menendez, Mr. Carper, Mr. Dayton, Mr. Kerry, Mr. Reed, Mr. 
  Bingaman, Mrs. Feinstein, Mr. Harkin, Mr. Salazar, Mr. Schumer, Mr. 
     Dorgan, Mrs. Clinton, Mr. Leahy, Mr. Johnson, Mrs. Boxer, Mr. 
Lieberman, Mr. Byrd, Ms. Stabenow, Mr. Levin, and Mr. Biden) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
  To reduce the addiction of the United States to oil, to ensure near-
term energy affordability and empower American families, to accelerate 
clean fuels and electricity, to provide government leadership for clean 
 and secure energy, to secure a reliable, affordable, and sustainable 
                 energy future, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Clean Energy 
Development for a Growing Economy Act of 2006'' or the ``Clean EDGE Act 
of 2006''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
                 TITLE I--REDUCING OUR ADDICTION TO OIL

              Subtitle A--Reducing Oil Consumption by 2020

Sec. 101. Setting a national oil savings goal.
                  Subtitle B--Biofuels Infrastructure

Sec. 111. Modification of alternative fuel vehicle refueling property 
                            credit.
Sec. 112. Alternative fuel-related standards.
Sec. 113. Accelerating conversion to alternative fuels infrastructure.
Sec. 114. Low- interest loan program for farmer-owned retail delivery 
                            of alternative fuels.
Sec. 115. Extension of biodiesel income and excise tax credits.
Sec. 116. Small ethanol producer credit expanded for producers of 
                            sucrose and cellulosic ethanol.
Sec. 117. Incentives to produce transportation fuels from cellulosic 
                            biomass.
Sec. 118. Alternative fuels investment by major oil companies and 
                            vehicle manufacturers.
          Subtitle C--Flexible Fuel Vehicle Market Penetration

Sec. 121. Credit for production of qualified flexible fuel vehicles.
Sec. 122. Ensuring availability of flexible fuel vehicles.
Sec. 123. Increasing consumer awareness of flexible fuel vehicles.
        Subtitle D--25 by '25 Renewable Energy and Fuels Vision

Sec. 131. Presidential authority to increase renewable fuel content of 
                            motor fuels and clean energy sources.
 Subtitle E--Nationwide Media Campaign to Encourage Energy Efficiency 
                            and Conservation

Sec. 141. Nationwide media campaign to encourage energy efficiency and 
                            conservation.
Subtitle F--Increasing Transit Use and Alternative Transportation Modes

Sec. 151. Transit-Oriented Development Corridors.
Sec. 152. Increasing transit utilization incentives.
Sec. 153. Extension of transportation fringe benefit to bicycle 
                            commuters.
   TITLE II--ENSURING NEAR-TERM ENERGY AFFORDABILITY AND EMPOWERING 
                           AMERICAN FAMILIES

          Subtitle A--Making Gas Price Gouging a Federal Crime

Sec. 201. Unfair or deceptive acts or practices in commerce related to 
                            gasoline and petroleum distillates.
Sec. 202. Enforcement under Federal Trade Commission Act.
Sec. 203. Enforcement at retail level by State Attorneys General.
Sec. 204. Penalties.
Sec. 205. Effect on other laws.
  Subtitle B--Strengthening Anti-Trust Enforcement in the Oil and Gas 
                                Industry

Sec. 211. Prohibition on unilateral withholding.
Sec. 212. Modification of merger standard in Clayton Act.
Sec. 213. Study by the Government Accountability Office.
Sec. 214. Joint Federal and State task force.
   Subtitle C--Improving Oversight of Oil and Gas Market Speculation

Sec. 221. Short title.
Sec. 222. Reporting and recordkeeping for positions involving energy 
                            commodities.
               Subtitle D--Low Income Energy Price Relief

Sec. 231. Adjustment of standard utility allowance under the food stamp 
                            program for high energy costs.
Sec. 232. Public housing energy cost assistance.
Sec. 233. Refundable tax credit for low-income residential energy cost 
                            assistance.
Subtitle E--Small Business and Agricultural Producers Energy Emergency 
                             Relief Program

Sec. 241. Energy emergency disaster relief loans to small business and 
                            agricultural producers.
  Subtitle F--Public Access to Federal Alternative Refueling Stations

Sec. 251. Access to Federal alternative refueling stations.
   Subtitle G--Measures to Empower Drivers to Realize Improved Fuel 
                                Economy

Sec. 261. Improved labeling on new vehicle window stickers.
Sec. 262. Tire efficiency labeling program.
Sec. 263. New vehicle options to empower drivers to reduce fuel use.
Sec. 264. Idling reduction tax credit.
  Subtitle H--Providing Consumers With Additional Advanced Technology 
                      Vehicle Purchase Incentives

Sec. 271. Expansion and extension of alternative motor vehicle credit.
Sec. 272. Plug-in hybrid motor vehicle tax credit.
      Subtitle I--Tax Incentives for Fuel Efficient Private Fleets

Sec. 281. Tax credit for fuel-efficient fleets.
          TITLE III-- ACCELERATING CLEAN FUELS AND ELECTRICITY

   Subtitle A--Guaranteeing a Minimum Level of Renewable Electricity 
                               Generation

Sec. 301. Renewable portfolio standard.
 Subtitle B--Facilitating Home Energy Generation Through Net Metering 
                     and Interconnection Standards

Sec. 311. Net metering.
   Subtitle C--Long Term Extensions and Expansions for Clean Energy 
                               Incentives

Sec. 321. Extension of production tax credit for electricity produced 
                            from certain renewable resources.
Sec. 322. Extension and modification of investment tax credit with 
                            respect to solar energy property and 
                            qualified fuel cell property.
Sec. 323. Credit for wind energy systems.
Sec. 324. Expansion of resources to wave, current, tidal, and ocean 
                            thermal energy.
Sec. 325. Extension and expansion of credit to holders of clean 
                            renewable energy bonds.
Sec. 326. Extension of credit for business installation of qualified 
                            fuel cells and stationary microturbine 
                            power plants.
Sec. 327. Extension of business solar investment tax credit.
Sec. 328. Extension of full credit for qualified electric vehicles.
 Subtitle D--Long-Term Extensions and Expansions for Energy Efficiency 
                      and Conservation Incentives

Sec. 331. Extension of energy efficient commercial buildings deduction.
Sec. 332. Extension and expansion of new energy efficient home credit.
Sec. 333. Extension of nonbusiness energy property credit.
Sec. 334. Extension and modification of residential energy efficient 
                            property credit.
Sec. 335. Energy credit for combined heat and power system property.
Sec. 336. Three-year applicable recovery period for depreciation of 
                            qualified energy management.
Sec. 337. Three-year applicable recovery period for depreciation of 
                            qualified water submetering devices.
     Subtitle E--Utilizing America's Abundant Coal Supplies Cleanly

Sec. 341. Clean energy coal bonds.
Sec. 342. Extension and expansion of qualifying advanced coal project 
                            credit.
Sec. 343. Expansion of qualifying gasification project credit.
Sec. 344. Coal-to-liquid and biomass transportation fuels.
    TITLE IV--REAL GOVERNMENT LEADERSHIP FOR CLEAN AND SECURE ENERGY

   Subtitle A--Federal Biofuels and Efficient Vehicle Use Leadership

Sec. 401. Federal agency ethanol-blended gasoline and biodiesel 
                            purchasing requirement.
Sec. 402. Use of the existing flexible fuel vehicle fleet of the 
                            Federal government.
Sec. 403. Standards for executive agency automobiles.
Sec. 404. Federal fleet conservation requirements.
       Subtitle B--Federal Clean and Efficient Energy Leadership

Sec. 411. Federal leadership on clean energy purchasing.
Sec. 412. Clean and secure backup power at Federal facilities.
Sec. 413. Eliminating vampire electronic devices.
Sec. 414. Promoting Federal leadership in energy management.
Sec. 415. Retention of savings from energy savings performance 
                            contracts.
    Subtitle C--State, Tribal, and Local Clean and Efficient Energy 
                               Leadership

Sec. 421. Freedom from fossil fuels (F4) bonds.
Sec. 422. Clean energy security collaborative.
Sec. 423. Assistance for State programs to retire fuel-inefficient 
                            motor vehicles.
           Subtitle D--International Clean Energy Deployment

Sec. 431. Clean energy technology deployment in developing countries.
TITLE V--SECURING A RELIABLE, AFFORDABLE, AND SUSTAINABLE ENERGY FUTURE

        Subtitle A--Advanced Research Project Agency for Energy

Sec. 501. Office of Advanced Energy Research, Technology Development, 
                            and Deployment.
            Subtitle B--Near-Term Vehicle Technology Program

Sec. 505. Near-term vehicle technology program.
  Subtitle C--Advanced Technology Motor Vehicles Manufacturing Credit

Sec. 511. Advanced technology motor vehicles manufacturing credit.
                Subtitle D--Realizing a Hydrogen Future

Sec. 521. H-Prize competition.
Sec. 522. Credit for retail sale of hydrogen fuel as motor vehicle 
                            fuel.
Sec. 523. Credit for production of hydrogen fuel.
Sec. 524. Tax holiday for hydrogen fuel.
Sec. 525. Sense of Congress regarding hydrogen fuel taxes.
Sec. 526. Hydrogen fueling fringe benefit.
Sec. 527. Exclusion of earnings from hydrogen fuel sales.
  Subtitle E--Building the Skilled Workforce for Advanced Vehicle and 
                      Energy Technology Deployment

Sec. 531. Increasing skilled workforce.
Sec. 532. Grant program for green building and zero-energy home design 
                            and construction training.
           Subtitle F--Clean Energy Investment Administration

Sec. 541. Definitions.
Sec. 542. Clean Energy Investment Administration.
Sec. 543. Requirements specific to demonstration projects and 
                            commercial deployment projects.
Sec. 544. Loan guarantee program.
Sec. 545. Energy park task forces.
Sec. 546. Authorization of appropriations.
            Subtitle G--Strategic Gasoline and Fuel Reserve

Sec. 548. Strategic Gasoline and Fuel Reserve.
   Subtitle H--Reports on United States Energy Emergency Preparedness

Sec. 551. Potential impacts of oil supply shock.
Sec. 552. Preventing future disruptions.
    Subtitle J--Impacts of Act on Reducing Greenhouse Gas Emissions

Sec. 561. Climate change and energy policy feedback loop.
                Subtitle K--Energy Fairness for America

Sec. 571. Elimination of deduction for intangible drilling and 
                            development costs for major oil companies.
Sec. 572. Elimination of enhanced oil recovery credit for major oil 
                            companies.
Sec. 573. Oil and gas royalty-related amendments.
Sec. 574. Extension of election to expense certain refineries.
Sec. 575. Elimination of amortization of geological and geophysical 
                            expenditures for major oil companies.
Sec. 576. Revaluation of LIFO inventories of major integrated oil 
                            companies.
Sec. 577. Modifications of foreign tax credit rules applicable to major 
                            integrated oil companies which are dual 
                            capacity taxpayers.
Sec. 578. Denial of deduction for income attributable to domestic 
                            production of oil, natural gas, or primary 
                            products thereof.
Sec. 579. Rules relating to foreign oil and gas income.
Sec. 580. Elimination of deferral for foreign oil and gas extraction 
                            income.
Subtitle L--Protection and Retention of Value of Publicly-Owned Energy 
                               Resources

Sec. 591. Suspension of royalty relief.
Sec. 592. Renegotiation of existing leases.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) in his State of the Union address during January 2006, 
        President George W. Bush acknowledged that ``we have a serious 
        problem: America is addicted to oil'';
            (2) the near-total reliance of the transportation sector 
        and the military of the United States on crude oil, coupled 
        with the growing dependence of the United States on foreign oil 
        imports, makes the economy and national security of the United 
        States dangerously subject to the willingness of other 
        countries to provide adequate and affordable energy supplies;
            (3) world demand for crude oil and petroleum products will 
        continue increasing, and the bulk of the remaining oil and 
        natural gas reserves of the world are controlled by countries 
        that are members of the anti-competitive cartel of the 
        Organization of the Petroleum Exporting Countries (OPEC);
            (4) terrorists have identified oil supply dependency as a 
        strategic vulnerability and have increased attacks against oil 
        infrastructure worldwide and the critical energy infrastructure 
        of the United States is also at risk from hurricanes, natural 
        disasters, and a lack of public and private investment;
            (5) in 2005, consumers in the United States sent more than 
        $230,000,000,000 overseas to pay for oil and energy products, 
        exacerbating the trade deficit of the United States, and in 
        some cases inadvertently funding unfriendly regimes and 
        political groups that threaten the economic, political, and 
        national security interests of the United States;
            (6) households in the United States are now forced to pay 
        an average of $1,800 more each year for fossil fuel-derived 
        energy than the households did 5 years ago, and energy 
        expenditures (as a percentage of the gross domestic product) 
        have been higher than the expenditures have been in the last 20 
        years;
            (7) environmentally-sound technology solutions already 
        exist to substantially increase the productivity, efficiency, 
        and variety of domestic energy supplies, including nonpetroleum 
        alternatives (such as biofuels);
            (8) instituting simple but cost-effective energy efficiency 
        and conservation measures can improve the economic 
        competitiveness of the United States and quickly lessen energy 
        costs for families in the United States, all at costs 
        significantly lower than developing new energy production 
        capacity;
            (9) increasing total Federal research and development 
        funding and deployment efforts for energy conservation, 
        renewable and alternative energy resources, and energy 
        efficiency and vehicle technology, which have largely been 
        stagnant for the last 5 years, could swiftly bring down energy 
        costs, increase job creation, and create a major new source of 
        high-value exports; and
            (10) as the largest single energy consumer in the United 
        States, the Federal government has both a tremendous 
        opportunity and a clear responsibility to lead by example and 
        provide guaranteed markets that allow industry to invest in and 
        produce clean energy technologies.
    (b) Purposes.--The purposes of this Act are--
            (1) to improve the national, economic, and environmental 
        security of the United States by rapidly reducing foreign oil 
        imports and oil consumption and creating viable alternative 
        fuel options;
            (2) to protect and empower consumers and the economy by 
        making energy supplies affordable, stable, and reliable, 
        providing consumers in the United States with tools to reduce 
        their own energy use, and preventing market manipulation and 
        price-gouging;
            (3) to create jobs and economic growth through accelerated 
        domestic clean energy technology deployment and better targeted 
        investments and long-term tax incentives;
            (4) to expedite the use of the buying power of the Federal 
        Government to leverage and expand markets for clean energy 
        products, buildings, and vehicles;
            (5) to make the United States significantly more energy 
        independent and provide the United States with an economic, 
        environmental, and national security edge that is essential to 
        maintaining the international competitiveness of, and quality 
        of life in, the United States; and
            (6) to reduce total greenhouse gas emissions to lower the 
        risk of potentially devastating, wide-ranging impacts 
        associated with global warming.

                 TITLE I--REDUCING OUR ADDICTION TO OIL

              Subtitle A--Reducing Oil Consumption by 2020

SEC. 101. SETTING A NATIONAL OIL SAVINGS GOAL.

    (a) Goal.--It is a goal of the United States to reduce the quantity 
of oil projected to be imported in 2020 by 40 percent.
    (b) Measures to Reduce Import Dependence.--
            (1) In general.--Subject to paragraph (2), not later than 1 
        year after the date of enactment of this Act, and every other 
        year thereafter, the President shall develop and implement 
        measures to reduce the dependence of the United States on 
        foreign petroleum imports by reducing petroleum in end-uses 
        throughout the economy of the United States in a manner that is 
        sufficient to reduce the total demand for petroleum in the 
        United States by--
                    (A) 1,000,000 barrels per day from the quantity 
                projected for calendar year 2015; and
                    (B) 6,000,000 barrels per day from the quantity 
                projected for calendar year 2020.
            (2) Insufficient legal authorities.--If the President 
        determines that there are insufficient legal authorities to 
        achieve the target for calendar year 2020 described in 
        paragraph (1)(B), the President shall--
                    (A) develop and implement measures that will reduce 
                the dependence of the United States on foreign 
                petroleum imports by reducing petroleum in end-uses 
                throughout the economy of the United States to the 
                maximum extent practicable; and
                    (B) submit to Congress proposed legislation or 
                other recommendations to achieve the target.
    (c) Requirements.--In developing measures under subsection (b), the 
President shall--
            (1) ensure continued reliable and affordable energy for the 
        United States, consistent with creating jobs and economic 
        growth and maintaining the international competitiveness of 
        United States businesses, including the manufacturing sector; 
        and
            (2) implement the measures under existing authorities of 
        appropriate Federal agencies, as determined by the President.
    (d) Projections.--The projections for total demand for petroleum in 
the United States under subsection (b) shall be based on the 
projections made in the Reference Case in the report of the Energy 
Information Administration entitled ``Annual Energy Outlook 2006''.
    (e) Report.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, and annually thereafter, the President 
        shall submit to Congress a report, based on the most recent 
        edition of the Annual Energy Outlook published by the Energy 
        Information Administration, assessing the progress made by the 
        United States toward the goal of reducing dependence on 
        imported petroleum sources by 2025 described in subsection (a).
            (2) Contents.--The report shall--
                    (A) identify the status of efforts to meet the goal 
                described in subsection (a);
                    (B) assess the effectiveness of any measure 
                implemented under subsection (b) during the previous 
                fiscal year in meeting the goal described in subsection 
                (a); and
                    (C) describe plans to develop additional measures 
                to meet the goal.

                  Subtitle B--Biofuels Infrastructure

SEC. 111. MODIFICATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY 
              CREDIT.

    (a) Increase in Credit Amount.--Section 30C of the Internal Revenue 
Code of 1986 (relating to alternative fuel vehicle refueling property 
credit) is amended--
            (1) by striking ``30 percent'' in subsection (a) and 
        inserting ``50 percent'', and
            (2) by striking ``$30,000'' in subsection (b)(1) and 
        inserting ``$50,000''.
    (b) Credit Allowed for Electric Drive Transportation Property.--
Paragraph (1) of section 30C(c) of the Internal Revenue Code of 1986 
(relating to qualified alternative fuel vehicle refueling property) is 
amended by striking ``, but only with respect to any fuel'' and 
inserting ``, except that in the case of property described in 
paragraph (3)(A) thereof, only with respect to fuels''.
    (c) Extension of Credit.--Subsection (g) section 30C of the 
Internal Revenue Code of 1986 (relating to termination) is amended to 
read as follows:
    ``(g) Termination of Availability of Credit.--This section shall 
not apply to property placed in service after the earlier of December 
31, 2014, or the date after which more than 20,000 alternative 
refueling properties have been installed through use of this credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 112. ALTERNATIVE FUEL-RELATED STANDARDS.

    (a) Definition of Secretary.--In this section, the term 
``Secretary'' means the Secretary of Energy, acting--
            (1) in consultation with--
                    (A) the Administrator of the Environmental 
                Protection Agency;
                    (B) the Administrator of the National Highway 
                Traffic Safety Administration;
                    (C) the Commissioner of the Federal Energy 
                Regulatory Commission;
                    (D) the head of the National Association of 
                Regulatory Utility Commissioners;
                    (E) the States;
                    (F) vehicle manufacturers;
                    (G) vehicle fuel providers; and
                    (H) appropriate safety organizations; and
            (2) in cooperation with applicable voluntary standard-
        setting organizations.
    (b) Recommendations and Guidance.--Not later than 1 year after the 
date of enactment of this Act, after providing notice and an 
opportunity for public comment, the Secretary shall publish 
recommendations and guidance relating to uniform national voluntary 
standards for--
            (1) alternative fuels;
            (2) alternative fuel vehicles;
            (3) equipment and systems relating to alternative fuels and 
        alternative fuel vehicles; and
            (4) the safety, handling, refueling, and general use of the 
        items described in paragraphs (1) through (3).
    (c) Review.--Not less frequently than once every 2 years, the 
Secretary shall--
            (1) review the recommendations and guidance published under 
        subsection (b); and
            (2) modify the recommendations and guidance to reflect 
        applicable changes during the preceding 2 years relating to 
        fuel systems and related technologies.

SEC. 113. ACCELERATING CONVERSION TO ALTERNATIVE FUELS INFRASTRUCTURE.

    (a) Findings.--Congress finds that--
            (1) as of the date of enactment of this Act, an estimated 
        5,000,000 to 6,000,000 flexible-fuel vehicles are on roads in 
        the United States;
            (2) based on the report of the Department of Energy 
        entitled ``Transportation Energy Date Book: Edition 25,'' only 
        740 refueling sites providing E-85 or biodiesel existed in the 
        United States in 2005, equivalent to less than 1 percent of 
        total United States refueling stations; and
            (3) as the number of flexible-fuel vehicles on roads in the 
        United States increases, an increase in the availability of 
        alternative refueling infrastructure must occur in order to 
        enable the displacement of petroleum consumption.
    (b) Goal.--Congress declares that it is the goal of the United 
States to increase the accessibility of alternative fuels to retail 
consumers, and to ensure that at least 10 percent of motor vehicle 
refueling stations provide alternative fuels, by calendar year 2015.
    (c) Alternative Fuel Infrastructure Initiative.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, and every 2 years thereafter, the 
        Secretary of Energy, in coordination with the Secretary of 
        Transportation and the Administrator of the Environmental 
        Protection Agency, and in consultation with State and local 
        governments, shall--
                    (A) subject to subparagraph (B), develop and 
                implement measures to increase the accessibility of 
                alternative fuels to retail consumers to a level 
                sufficient to ensure that at least 10 percent of motor 
                vehicle refueling stations provide alternative fuels by 
                calendar year 2015; and
                    (B) if the Secretary of Energy determines that 
                there are insufficient legal authorities to achieve the 
                target for calendar year 2015 described in subparagraph 
                (A)--
                            (i) develop and implement measures to 
                        increase the accessibility of alternative fuels 
                        to retail consumers, to the maximum extent 
                        practicable; and
                            (ii) submit to Congress by January 1, 2008, 
                        proposed legislation or other recommendations 
                        to achieve that target.
            (2) Requirement for major integrated oil companies.--
                    (A) In general.--Each major integrated oil company 
                shall install and make available to retail consumers 
                alternative fuels refueling infrastructure at--
                            (i) not less than 50 percent of the motor 
                        vehicle fueling stations owned by the company 
                        by not later than December 31, 2010; and
                            (ii) 100 percent of the motor vehicle 
                        refueling stations owned by the company by not 
                        later than January 1, 2015.
                    (B) Means of compliance.--A major integrated oil 
                company shall meet the requirements of subparagraph (A) 
                by--
                            (i) installing alternative refueling 
                        infrastructure at motor vehicle fueling 
                        stations;
                            (ii) purchasing alternative refueling 
                        infrastructure credits issued under 
                        subparagraph (C); or
                            (iii) carrying out a combination of the 
                        actions described in clauses (i) and (ii).
                    (C) Alternative refueling infrastructure credit 
                trading program.--Not later than 180 days after the 
                date of enactment of this Act, the Secretary shall 
                establish a credit trading program--
                            (i) to permit a major integrated oil 
                        company that does not install alternative 
                        refueling infrastructure to comply with 
                        subparagraphs (A) and (B) to achieve that 
                        compliance by purchasing sufficient alternative 
                        refueling infrastructure credits; and
                            (ii) under which the Secretary shall issue 
                        alternative refueling infrastructure credits to 
                        entities that install new alternative refueling 
                        infrastructure.
                    (D) Interference with installation of alternative 
                refueling equipment or sale of alternative fuel.--
                            (i) In general.--It shall be an unfair or 
                        deceptive act or practice in violation of 
                        section 5 of the Federal Trade Commission Act 
                        (15 U.S.C. 45) for any person to restrain trade 
                        in alternative fuels by interfering with the 
                        installation of alternative refueling 
                        equipment, or the sale of alternative fuels, at 
                        any motor vehicle refueling station in the 
                        United States.
                            (ii) Enforcement.--The Federal Trade 
                        Commission shall promulgate rules to enforce 
                        this subparagraph.
    (d) Enforcement.--
            (1) Civil penalties.--Any major integrated oil company that 
        fails to meet the alternative refueling infrastructure 
        requirements of subsection (c) shall be subject to a civil 
        penalty.
            (2) Amount and frequency of penalty.--A civil penalty 
        assessed under paragraph (1) shall be--
                    (A) in an amount equivalent to $1,000,000 for each 
                motor vehicle refueling station owned by the major 
                integrated oil company that fails to comply with 
                subsection (c); and
                    (B) assessed for each year during which the failure 
                to comply occurs.
            (3) Mitigation or waiver.--The Secretary may mitigate or 
        waive a civil penalty under this subsection, after public 
        notice and comment, if the major integrated oil company--
                    (A) was unable to comply with subsection (c) for 
                reasons the Secretary determines to be outside of the 
                reasonable control of the major integrated oil company; 
                or
                    (B) demonstrates to the satisfaction of the 
                Secretary that insufficient alternative fueled vehicles 
                exist within the geographic region of a motor refueling 
                station to warrant the installation of the 
                infrastructure.
            (4) Procedure for assessing penalty.--The Secretary shall 
        assess a civil penalty under this subsection in accordance with 
        the procedures prescribed by section 333(d) of the Energy 
        Policy and Conservation Act (42 U.S.C. 6303(d)).
    (e) Infrastructure Pilot Program for Alternative Fuels.--
            (1) In general.--The Secretary of Energy, in consultation 
        with the Secretary of Transportation and the Administrator of 
        the Environmental Protection Agency (referred to in this 
        subsection as the ``Secretary''), shall establish a competitive 
        grant pilot program (referred to in this subsection as the 
        ``pilot program''), to be administered through the Clean Cities 
        Program of the Department of Energy, to provide not more than 
        10 geographically-dispersed project grants to State 
        governments, local governments, metropolitan transportation 
        authorities, or partnerships of those entities to carry out 1 
        or more projects for the purposes described in paragraph (2).
            (2) Grant purposes.--A grant under this subsection shall be 
        used for the establishment of refueling infrastructure 
        corridors for alternative fuels along the National Highway 
        System, including--
                    (A) installation of infrastructure and equipment 
                necessary to ensure adequate distribution of qualified 
                alternative fuels within the corridor;
                    (B) installation of infrastructure and equipment 
                necessary to directly support vehicles powered by 
                qualified alternative fuels; and
                    (C) operation and maintenance of infrastructure and 
                equipment installed as part of a project funded by the 
                grant.
            (3) Applications.--
                    (A) Requirements.--
                            (i) In general.--Subject to clause (ii), 
                        not later than 90 days after the date of 
                        enactment of this Act, the Secretary shall 
                        issue requirements for use in applying for 
                        grants under the pilot program.
                            (ii) Minimum requirements.--At a minimum, 
                        the Secretary shall require that an application 
                        for a grant under this subsection--
                                    (I) be submitted by--
                                            (aa) the head of a State or 
                                        local government or a 
                                        metropolitan transportation 
                                        authority, or any combination 
                                        of those entities; and
                                            (bb) a registered 
                                        participant in the Clean Cities 
                                        Program of the Department of 
                                        Energy; and
                                    (II) include--
                                            (aa) a description of the 
                                        project proposed in the 
                                        application, including the ways 
                                        in which the project meets the 
                                        requirements of this 
                                        subsection;
                                            (bb) an estimate of the 
                                        degree of use of the project, 
                                        including the estimated size of 
                                        fleet of alternative fueled 
                                        vehicles available within the 
                                        geographic region of the 
                                        corridor;
                                            (cc) an estimate of the 
                                        potential petroleum displaced 
                                        and air pollution emissions 
                                        reduced as a result of the 
                                        project, and a plan to collect 
                                        and disseminate petroleum 
                                        displacement and environmental 
                                        data relating to the project to 
                                        be funded under the grant, over 
                                        the expected life of the 
                                        project;
                                            (dd) a description of the 
                                        means by which the project will 
                                        be sustainable without Federal 
                                        assistance after the completion 
                                        of the term of the grant;
                                            (ee) a complete description 
                                        of the costs of the project, 
                                        including acquisition, 
                                        construction, operation, and 
                                        maintenance costs over the 
                                        expected life of the project;
                                            (ff) a description of which 
                                        costs of the project will be 
                                        supported by Federal assistance 
                                        under this subsection; and
                                            (gg) documentation to the 
                                        satisfaction of the Secretary 
                                        that diesel fuel containing 
                                        sulfur at not more than 15 
                                        parts per million is available 
                                        for carrying out the project, 
                                        and a commitment by the 
                                        applicant to use that fuel in 
                                        carrying out the project.
                    (B) Partners.--An applicant under subparagraph (A) 
                may carry out a project under the pilot program in 
                partnership with public and private entities.
            (4) Selection criteria.--In evaluating applications under 
        the pilot program, the Secretary shall--
                    (A) consider the experience of each applicant with 
                previous, similar projects; and
                    (B) give priority consideration to applications 
                that--
                            (i) are most likely to maximize 
                        displacement of petroleum consumption and 
                        environmental protection;
                            (ii) demonstrate the greatest commitment on 
                        the part of the applicant to ensure funding for 
                        the proposed project and the greatest 
                        likelihood that the project will be maintained 
                        or expanded after Federal assistance under this 
                        subsection is completed;
                            (iii) represent a partnership of public and 
                        private entities; and
                            (iv) exceed the minimum requirements of 
                        paragraph (3)(A)(ii).
            (5) Pilot project requirements.--
                    (A) Maximum amount.--The Secretary shall provide 
                not more than $20,000,000 in Federal assistance under 
                the pilot program to any applicant.
                    (B) Cost sharing.--The non-Federal share of the 
                cost of any activity relating to qualified alternative 
                fuel infrastructure development carried out using funds 
                from a grant under this subsection shall be not less 
                than 20 percent.
                    (C) Maximum period of grants.--The Secretary shall 
                not provide funds to any applicant under the pilot 
                program for more than 2 years.
                    (D) Deployment and distribution.--The Secretary 
                shall seek, to the maximum extent practicable, to 
                ensure a broad geographic distribution of project sites 
                funded by grants under this subsection.
                    (E) Transfer of information and knowledge.--The 
                Secretary shall establish mechanisms to ensure that the 
                information and knowledge gained by participants in the 
                pilot program are transferred among the pilot program 
                participants and to other interested parties, including 
                other applicants that submitted applications.
            (6) Schedule.--
                    (A) Initial grants.--
                            (i) In general.--Not later than 90 days 
                        after the date of enactment of this Act, the 
                        Secretary shall publish in the Federal 
                        Register, Commerce Business Daily, and such 
                        other publications as the Secretary considers 
                        to be appropriate, a notice and request for 
                        applications to carry out projects under the 
                        pilot program.
                            (ii) Deadline.--An application described in 
                        clause (i) shall be submitted to the Secretary 
                        by not later than 180 days after the date of 
                        publication of the notice under that clause.
                            (iii) Initial selection.--Not later than 90 
                        days after the date by which applications for 
                        grants are due under clause (ii), the Secretary 
                        shall select by competitive, peer-reviewed 
                        proposal up to 5 applications for projects to 
                        be awarded a grant under the pilot program.
                    (B) Additional grants.--
                            (i) In general.--Not later than 2 years 
                        after the date of enactment of this Act, the 
                        Secretary shall publish in the Federal 
                        Register, Commerce Business Daily, and such 
                        other publications as the Secretary considers 
                        to be appropriate, a notice and request for 
                        additional applications to carry out projects 
                        under the pilot program that incorporate the 
                        information and knowledge obtained through the 
                        implementation of the first round of projects 
                        authorized under the pilot program.
                            (ii) Deadline.--An application described in 
                        clause (i) shall be submitted to the Secretary 
                        by not later than 180 days after the date of 
                        publication of the notice under that clause.
                            (iii) Initial selection.--Not later than 90 
                        days after the date by which applications for 
                        grants are due under clause (ii), the Secretary 
                        shall select by competitive, peer-reviewed 
                        proposal such additional applications for 
                        projects to be awarded a grant under the pilot 
                        program as the Secretary determines to be 
                        appropriate.
            (7) Reports to congress.--
                    (A) Initial report.--Not later than 60 days after 
                the date on which grants are awarded under this 
                subsection, the Secretary shall submit to Congress a 
                report containing--
                            (i) an identification of the grant 
                        recipients and a description of the projects to 
                        be funded under the pilot program;
                            (ii) an identification of other applicants 
                        that submitted applications for the pilot 
                        program but to which funding was not provided; 
                        and
                            (iii) a description of the mechanisms used 
                        by the Secretary to ensure that the information 
                        and knowledge gained by participants in the 
                        pilot program are transferred among the pilot 
                        program participants and to other interested 
                        parties, including other applicants that 
                        submitted applications.
                    (B) Evaluation.--Not later than 2 years after the 
                date of enactment of this Act, and annually thereafter 
                until the termination of the pilot program, the 
                Secretary shall submit to Congress a report containing 
                an evaluation of the effectiveness of the pilot 
                program, including an assessment of the petroleum 
                displacement and benefits to the environment derived 
                from the projects included in the pilot program.
            (8) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection $200,000,000, to remain available until expended.

SEC. 114. LOW- INTEREST LOAN PROGRAM FOR FARMER-OWNED RETAIL DELIVERY 
              OF ALTERNATIVE FUELS.

    (a) Purposes of Loans.--Section 312(a) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1942(a)) is amended--
            (1) in paragraph (9)(B)(ii), by striking ``or'' at the end;
            (2) in paragraph (10), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(11) building infrastructure, including pump stations, 
        for the retail delivery to consumers of any alternative 
        fuel.''.
    (b) Program.--Subtitle B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941 et seq.) is amended by adding at the end 
the following:

``SEC. 320. LOW-INTEREST LOAN PROGRAM FOR FARMER-OWNED RETAIL DELIVERY 
              OF ALTERNATIVE FUELS.

    ``(a) In General.--The Secretary shall establish a low-interest 
loan program to assist farmer-owned alternative fuel producers 
(including cooperatives and limited liability corporations) to develop 
and build infrastructure, including pump stations, for the retail 
delivery to consumers of any alternative fuel.
    ``(b) Terms.--
            ``(1) Interest rate.--A low-interest loan under this 
        section shall have a fixed interest rate of no more than 5 
        percent for each year.
            ``(2) Amortization.--The repayment of a loan under this 
        section shall be amortized over the expected life of the 
        infrastructure project that is being financed with the proceeds 
        of the loan.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    ``(d) Regulations.--As soon as practicable after the date of 
enactment of this Act, the Secretary of Agriculture shall promulgate 
such regulations as are necessary to carry out the amendments made by 
this section.''.

SEC. 115. EXTENSION OF BIODIESEL INCOME AND EXCISE TAX CREDITS.

    (a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of 
the Internal Revenue Code of 1986 are each amended by striking ``2008'' 
and inserting ``2014''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2009.

SEC. 116. SMALL ETHANOL PRODUCER CREDIT EXPANDED FOR PRODUCERS OF 
              SUCROSE AND CELLULOSIC ETHANOL.

    (a) In General.--Subparagraph (C) of section 40(b)(4) of the 
Internal Revenue Code of 1986 (relating to small ethanol producer 
credit) is amended by inserting ``(30,000,000 gallons for any sucrose 
or cellulosic ethanol producer)'' after ``15,000,000 gallons''.
    (b) Sucrose or Cellulosic Ethanol Producer.--Section 40(b)(4) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(E) Sucrose or cellulosic ethanol producer.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `sucrose or cellulosic 
                        ethanol producer' means a producer of ethanol 
                        using sucrose feedstock or cellulosic 
                        feedstock.
                            ``(ii) Sucrose feedstock.--For purposes of 
                        clause (i), the term `sucrose feedstock' means 
                        any raw sugar, refined sugar, or sugar 
                        equivalents (including juice and extract). Such 
                        term does not include any molasses, beet thick 
                        juice, or other similar products as determined 
                        by the Secretary.''.
    (c) Conforming Amendments.--
            (1) Section 40(g)(2) of the Internal Revenue Code of 1986 
        is amended by striking ``15,000,000 gallon limitation'' and 
        inserting ``15,000,000 and 30,000,000 gallon limitations''.
            (2) Section 40(g)(5)(B) of such Code is amended by striking 
        ``15,000,000 gallons'' and inserting ``the gallon limitation 
        under subsection (b)(4)(C)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 117. INCENTIVES TO PRODUCE TRANSPORTATION FUELS FROM CELLULOSIC 
              BIOMASS.

    (a) Fuel From Cellulosic Biomass.--
            (1) In general.--The Secretary of Energy (referred to in 
        this section as the ``Secretary'') shall provide deployment 
        incentives under this subsection to encourage a variety of 
        projects to produce transportation fuel from cellulosic 
        biomass, relying on different feedstocks in different regions 
        of the United States.
            (2) Project eligibility.--Incentives under this subsection 
        shall be provided on a competitive basis to projects that 
        produce fuel and that--
                    (A) meet United States fuel and emission 
                specifications;
                    (B) help diversify domestic transportation energy 
                supplies; and
                    (C) improve or maintain air, water, soil, and 
                habitat quality.
            (3) Incentives.--Incentives under this subsection may 
        consist of--
                    (A) loan guarantees under section 1510 of the 
                Energy Policy Act of 2005 (42 U.S.C. 16501), subject to 
                section 1702 of that Act (22 U.S.C. 16512), for the 
                construction of production facilities and supporting 
                infrastructure; or
                    (B) production payments through a reverse auction 
                in accordance with paragraph (4).
            (4) Reverse auction.--
                    (A) In general.--In providing incentives under this 
                subsection, the Secretary shall--
                            (i) issue regulations under which producers 
                        of fuel from cellulosic biomass may bid for 
                        production payments under paragraph (3)(B); and
                            (ii) solicit bids from producers of 
                        different classes of transportation fuel, as 
                        the Secretary determines to be appropriate.
                    (B) Requirement.--The rules under subparagraph (A) 
                shall require that incentives be provided to the 
                producers that submit the lowest bid (in terms of cents 
                per gallon) for each class of transportation fuel from 
                which the Secretary solicits a bid.
    (b) Production Incentives for Cellulosic Biofuels.--Section 942(f) 
of the Energy Policy Act of 2005 (42 U.S.C. 16251(f)) is amended by 
striking ``$250,000,000'' and inserting ``$200,000,000 for each of 
fiscal years 2007 through 2011''.

SEC. 118. ALTERNATIVE FUELS INVESTMENT BY MAJOR OIL COMPANIES AND 
              VEHICLE MANUFACTURERS.

    (a) Study.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act and every 4 years thereafter, the 
        Comptroller General of the United States shall conduct a study 
        of the extent to which entities described in paragraph (2) have 
        invested in alternative fuels production, infrastructure, and 
        technology development to diversify the motor vehicle fuel and 
        vehicle options available to consumers in the United States.
            (2) Described entities.--An entity described under this 
        paragraph is--
                    (A) a company that sells more than $500,000,000 of 
                crude oil, gasoline, or petroleum distillates in the 
                United States per year; and
                    (B) a manufacturer.
    (b) Report.--At the conclusion of each study described in 
subsection (a), the Comptroller General shall submit a report to 
Congress that contains the results of such study.

          Subtitle C--Flexible Fuel Vehicle Market Penetration

SEC. 121. CREDIT FOR PRODUCTION OF QUALIFIED FLEXIBLE FUEL VEHICLES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45N. PRODUCTION OF QUALIFIED FLEXIBLE FUEL MOTOR VEHICLES.

    ``(a) Allowance of Credit.--For purposes of section 38, in the case 
of a manufacturer, the qualified flexible fuel motor vehicle production 
credit determined under this section for any taxable year is an amount 
equal to the incremental flexible fuel motor vehicle cost for each 
qualified flexible fuel motor vehicle produced in the United States by 
the manufacturer during the taxable year.
    ``(b) Incremental Flexible Fuel Motor Vehicle Cost.--With respect 
to any qualified flexible fuel motor vehicle, the incremental flexible 
fuel motor vehicle cost is an amount equal to the lesser of--
            ``(1) the excess of--
                    ``(A) the cost of producing such qualified flexible 
                fuel motor vehicle, over
                    ``(B) the cost of producing such motor vehicle if 
                such motor vehicle was not a qualified flexible fuel 
                motor vehicle, or
            ``(2) $150.
    ``(c) Qualified Flexible Fuel Motor Vehicle.--For purposes of this 
section, the term `qualified flexible fuel motor vehicle' means a motor 
vehicle (as defined under section 30(c)(2))--
            ``(1) the production of which is not required for the 
        manufacturer to meet--
                    ``(A) the maximum credit allowable for vehicles 
                described in paragraph (2) in determining the fleet 
                average fuel economy requirements (as determined under 
                section 32904 of title 49, United States Code) of the 
                manufacturer for the model year ending in the taxable 
                year, or
                    ``(B) the requirements of any other provision of 
                Federal law, and
            ``(2) which is designed so that the vehicle is propelled by 
        an engine which can use as a fuel a petroleum mixture of which 
        85 percent (or another percentage of not less than 70 percent, 
        as the Secretary may determine, by rule, to provide for 
        requirements relating to cold start, safety, or vehicle 
        functions) of the volume of consists of ethanol or biodiesel.
    ``(d) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Manufacturer.--The term `manufacturer' has the 
        meaning given such term in regulations prescribed by the 
        Administrator of the Environmental Protection Agency for 
        purposes of the administration of title II of the Clean Air Act 
        (42 U.S.C. 7521 et seq.).
            ``(2) Reduction in basis.--For purposes of this subtitle, 
        if a credit is allowed under this section for any expenditure 
        with respect to any property, the increase in the basis of such 
        property which would (but for this paragraph) result from such 
        expenditure shall be reduced by the amount of the credit so 
        allowed.
            ``(3) No double benefit.--The amount of any deduction or 
        credit allowable under this chapter (other than the credits 
        allowable under this section and section 30B) shall be reduced 
        by the amount of credit allowed under subsection (a) for such 
        vehicle for the taxable year.
            ``(4) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects to not have this section apply to such vehicle.
    ``(e) Cross Reference.--For an election to claim certain minimum 
tax credits in lieu of the credit determined under this section, see 
section 53(e).''.
    (b) Credit Allowed Against the Alternative Minimum Tax.--Section 
38(c)(4)(B) of the Internal Revenue Code of 1986 (defining specified 
credits) is amended by striking the period at the end of clause 
(ii)(II) and inserting ``, and'', and by adding at the end the 
following new clause:
                            ``(iii) the credit determined under section 
                        45N.''.
    (c) Election to Use Additional Amt Credit.--Section 53 of the 
Internal Revenue Code of 1986 (relating to credit for prior year 
minimum tax liability) is amended by adding at the end the following 
new subsection:
    ``(e) Additional Credit in Lieu of Flexible Fuel Motor Vehicle 
Credit.--
            ``(1) In general.--In the case of a taxpayer making an 
        election under this subsection for a taxable year, the 
        limitation under subsection (c) for such taxable year shall be 
        increased by the amount of the credit determined under section 
        45N for such taxable year.
            ``(2) Election.--A taxpayer may make an election under this 
        subsection for any taxable year only if the taxpayer elects not 
        to take the credit under section 45N for such taxable year 
        pursuant to section 45N(c)(4). Any election under this 
        subsection may not be revoked except with the consent of the 
        Secretary.
            ``(3) Credit refundable.--The aggregate increase in the 
        credit under this section for any taxable year by reason of 
        this subsection shall for purposes of this title (other than 
        subsection (b)(2) of this section) be treated as a credit 
        allowed to the taxpayer under subpart C.''.
    (d) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986 is 
        amended by striking ``and'' at the end of paragraph (29), by 
        striking the period at the end of paragraph (30) and inserting 
        ``, plus'', and by adding at the end the following new 
        paragraph:
            ``(31) the qualified flexible fuel motor vehicle production 
        credit determined under section 45N(a).''.
            (2) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and by 
        adding at the end the following:
            ``(38) in the case of a facility with respect to which a 
        credit was allowed under section 45N, to the extent provided in 
        section 45N(d)(2).''
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45N. Production of qualified flexible fuel motor vehicles.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to motor vehicles produced in model years ending after the date 
of the enactment of this Act.

SEC. 122. ENSURING AVAILABILITY OF FLEXIBLE FUEL VEHICLES.

    (a) Amendment.--
            (1) In general.--Chapter 329 of title 49, United States 
        Code, is amended by inserting after section 32902 the 
        following:
``Sec. 32902A. Requirement to manufacture flexible fuel vehicles
    ``(a) In General.--For each model year, each manufacturer of new 
motor vehicles (as defined under section 30(c)(2) of the Internal 
Revenue Code of 1986) described in subsection (b) shall ensure that the 
percentage of such vehicles manufactured in a particular model year 
that are flexible fuel vehicles shall be not less than the percentage 
set forth for that model year in the following table:


 
             ``If the model year is:                     The percentage of flexible fuel vehicles shall be:
 
  2010............................................  25 percent
  2020............................................  50 percent

    ``(b) Motor Vehicles Described.--A motor vehicle is described in 
this subsection if the vehicle--
            ``(1) is capable of operating on gasoline or diesel fuel;
            ``(2) is distributed in interstate commerce for sale in the 
        United States; and
            ``(3) does not contain certain engines that the Secretary 
        of Transportation, in consultation with the Administrator of 
        the Environmental Protection Agency and the Secretary of 
        Energy, may temporarily exclude from the definition because it 
        is technologically infeasible for the engines to have flexible 
        fuel capability at any time during a period that the 
        Secretaries and the Administrator are engaged in an active 
        research program with the vehicle manufacturers to develop that 
        capability for the engines.''.
            (2) Definition of flexible fuel vehicle.--Section 32901(8) 
        of title 49, United States Code, is amended by inserting ``or 
        `flexible fuel vehicle''' after ```dual fueled automobile'''.
            (3) Clerical amendment.--The table of sections for chapter 
        329 of title 49, United States Code, is amended by inserting 
        after the item relating to section 32902 the following:

``Sec. 32902A. Requirements to manufacture flexible fuel vehicles.''.
    (b) Rulemaking.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Secretary of Transportation 
        shall issue regulations to carry out the amendments made by 
        subsection (a).
            (2) Hardship exemption.--The regulations issued pursuant to 
        paragraph (1) shall include a process by which a manufacturer 
        may be exempted from the requirement under section 32902A(a) 
        upon demonstrating that such requirement would create a 
        substantial economic hardship for the manufacturer.

SEC. 123. INCREASING CONSUMER AWARENESS OF FLEXIBLE FUEL VEHICLES.

    Section 32908 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(g) Increasing Consumer Awareness of Flexible Fuel Vehicles.--(1) 
The Secretary of Transportation shall prescribe regulations that 
require the manufacturer of vehicles distributed in interstate commerce 
for sale in the United States--
            ``(A) to prominently display a permanent badge or emblem on 
        the quarter panel or tailgate of each such vehicle that 
        indicates such vehicle is capable of operating on alternative 
        fuel; and
            ``(B) to include information in the owner's manual of each 
        such vehicle information that describes--
                    ``(i) the capability of the vehicle to operate 
                using alternative fuel; and
                    ``(ii) the benefits of using alternative fuel, 
                including the renewable nature, the increased fuel 
                efficiency, and the environmental benefits of using 
                alternative fuel.
    ``(2) The Secretary of Transportation shall collaborate with 
vehicle retailers to develop voluntary methods for providing 
prospective purchasers of vehicles with information regarding the 
benefits of using alternative fuel in vehicles, including--
            ``(A) the renewable nature of alternative fuel; and
            ``(B) the environmental benefits of using alternative 
        fuel.''.

        Subtitle D--25 by '25 Renewable Energy and Fuels Vision

SEC. 131. PRESIDENTIAL AUTHORITY TO INCREASE RENEWABLE FUEL CONTENT OF 
              MOTOR FUELS AND CLEAN ENERGY SOURCES.

    Section 211(o)(2)(B) of the Clean Air Act (42 U.S.C. 7545(o)(2)(B)) 
is amended by adding at the end the following:
                            ``(v) Presidential authority.--
                                    ``(I) In general.--Beginning in 
                                calendar year 2009, notwithstanding 
                                clause (iv) and subject to clause (II), 
                                after full consideration of the reports 
                                required to be conducted and published 
                                pursuant to subsections (b)(4) and (q), 
                                the review required under in subclauses 
                                (I) and (II) of clause (ii), the report 
                                required under section 1352 of the 
                                Energy Policy Act of 2005 (26 U.S.C. 41 
                                note; 119 Stat. 1058), and such other 
                                information as is appropriate and 
                                relevant, the President may promulgate 
                                rules in accordance with this 
                                subsection--
                                            ``(aa) to gradually 
                                        increase the proportion that--

                                                    ``(AA) the number 
                                                of gallons of renewable 
                                                fuel sold or introduced 
                                                into commerce in 
                                                calendar year 2013 and 
                                                subsequent calendar 
                                                years; bears to

                                                    ``(BB) the total 
                                                number of gallons of 
                                                gasoline sold or 
                                                introduced into 
                                                commerce in each of 
                                                those calendar years; 
                                                and

                                            ``(bb) to increase the 
                                        minimum quantity of renewable 
                                        fuel derived from cellulosic 
                                        biomass above the 250,000,000-
                                        gallon level under clause 
                                        (iii).
                                    ``(II) Limitations.--The rules 
                                promulgated under subclause (I) shall 
                                not--
                                            ``(aa) except at the 
                                        request of the Governor of a 
                                        State, apply to fuel refiners, 
                                        blenders, and importers in a 
                                        State in which more than 25 
                                        percent of the energy projected 
                                        to be consumed in calendar year 
                                        2025 is expected to or will be 
                                        derived from 1 or more of--

                                                    ``(AA) renewable 
                                                fuels; and

                                                    ``(BB) renewable 
                                                electric energy 
                                                generated at a facility 
                                                (including a 
                                                distributed generation 
                                                facility) from solar or 
                                                wind resources, 
                                                geothermal energy, 
                                                ocean or wave energy, 
                                                or biomass (as defined 
                                                in section 203(b) of 
                                                the Energy Policy Act 
                                                of 2005 (42 U.S.C. 
                                                15852(b))) and 
                                                renewable electric 
                                                energy generated at a 
                                                facility (including a 
                                                distributed generation 
                                                facility) from 
                                                hydroelectric resources 
                                                in existence before 
                                                January 1, 2006;

                                            ``(bb) be applied in a 
                                        manner that would require that 
                                        the total amount of renewable 
                                        fuels and renewable energy 
                                        consumed in the United States 
                                        exceed 25 percent of the total 
                                        amount of energy consumed in 
                                        calendar year 2025; or
                                            ``(cc) be applied in a 
                                        manner that would harm the air 
                                        quality of any State or 
                                        significantly increase the cost 
                                        of motor vehicle fuel in a 
                                        State or region.''.

 Subtitle E--Nationwide Media Campaign to Encourage Energy Efficiency 
                            and Conservation

SEC. 141. NATIONWIDE MEDIA CAMPAIGN TO ENCOURAGE ENERGY EFFICIENCY AND 
              CONSERVATION.

    (a) In General.--The Secretary of Energy, acting through the 
Assistant Secretary for Energy Efficiency and Renewable Energy 
(referred to in this section as the ``Secretary''), shall develop and 
conduct a national media campaign for the purpose of decreasing oil 
consumption in the United States over the next decade.
    (b) Contract With Entity.--The Secretary shall carry out subsection 
(a) directly or through--
            (1) competitively bid contracts with 1 or more nationally 
        recognized media firms for the development and distribution of 
        monthly television, radio, and newspaper public service 
        announcements; or
            (2) collective agreements with 1 or more nationally 
        recognized institutes, businesses, or nonprofit organizations 
        for the funding, development, and distribution of monthly 
        television, radio, and newspaper public service announcements.
    (c) Use of Funds.--
            (1) In general.--Amounts made available to carry out this 
        section shall be used for the following:
                    (A) Advertising costs.--
                            (i) The purchase of media time and space.
                            (ii) Creative and talent costs.
                            (iii) Testing and evaluation of 
                        advertising.
                            (iv) Evaluation of the effectiveness of the 
                        media campaign.
                            (v) The negotiated fees for the winning 
                        bidder on requests from proposals issued either 
                        by the Secretary for purposes otherwise 
                        authorized in this section.
                            (vi) Entertainment industry outreach, 
                        interactive outreach, media projects and 
                        activities, public information, news media 
                        outreach, and corporate sponsorship and 
                        participation.
                    (B) Administrative costs.--Operational and 
                management expenses.
            (2) Limitations.--In carrying out this section, the 
        Secretary shall allocate not less than 85 percent of funds made 
        available under subsection (e) for each fiscal year for the 
        advertising functions specified under paragraph (1)(A).
    (d) Reports.--The Secretary shall annually submit to Congress a 
report that describes--
            (1) the strategy of the national media campaign and whether 
        specific objectives of the campaign were accomplished, 
        including--
                    (A) determinations concerning the rate of change of 
                oil consumption, in both absolute and per capita terms; 
                and
                    (B) an evaluation that enables consideration 
                whether the media campaign contributed to reduction of 
                oil consumption;
            (2) steps taken to ensure that the national media campaign 
        operates in an effective and efficient manner consistent with 
        the overall strategy and focus of the campaign;
            (3) plans to purchase advertising time and space;
            (4) policies and practices implemented to ensure that 
        Federal funds are used responsibly to purchase advertising time 
        and space and eliminate the potential for waste, fraud, and 
        abuse; and
            (5) all contracts or cooperative agreements entered into 
        with a corporation, partnership, or individual working on 
        behalf of the national media campaign.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2006 through 2010.

Subtitle F--Increasing Transit Use and Alternative Transportation Modes

SEC. 151. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS.

    (a) Definitions.--In this section:
            (1) Transit-oriented development corridor.--The term 
        ``Transit-Oriented Development Corridor'' or ``TODC'' means a 
        geographic area designated by the Secretary under subsection 
        (b).
            (2) Other terms.--The terms ``fixed guide way'', ``local 
        governmental authority'', ``mass transportation'', 
        ``Secretary'', ``State'', and ``urbanized area'' have the 
        meanings given the terms in section 5302 of title 49, United 
        States Code.
    (b) Transit-Oriented Development Corridors.--
            (1) In general.--The Secretary shall develop and carry out 
        a program to designate geographic areas in urbanized areas as 
        Transit-Oriented Development Corridors.
            (2) Criteria.--An area designated as a TODC under paragraph 
        (1) shall include rights-of-way for fixed guide way mass 
        transportation facilities (including commercial development of 
        facilities that have a physical and functional connection with 
        each facility).
            (3) Number of todcs.--In consultation with State 
        transportation departments and metropolitan planning 
        organizations, the Secretary shall designate--
                    (A) not fewer than 10 TODCs by December 31, 2015; 
                and
                    (B) not fewer than 20 TODCs by December 31, 2025.
            (4) Transit grants.--
                    (A) In general.--The Secretary make grants to 
                eligible states and local governmental authorities to 
                pay the Federal share of the cost of designating 
                geographic areas in urbanized areas as TODCs.
                    (B) Application.--Each eligible State or local 
                governmental authority that desires to receive a grant 
                under this paragraph shall submit an application to the 
                Secretary, at such time, in such manner, and 
                accompanied by such additional information as the 
                Secretary may reasonably require.
                    (C) Labor standards.--Subchapter IV of chapter 31 
                of title 40, United States Code shall apply to projects 
                that receive funding under this section.
                    (D) Federal share.--The Federal share of the cost 
                of a project under this subsection shall be 50 percent.
    (c) TODC Research and Development.--To support effective deployment 
of grants and incentives under this section, the Secretary shall 
establish a TODC research and development program to conduct research 
on the best practices and performance criteria for TODCs.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2007 through 2012.

SEC. 152. INCREASING TRANSIT UTILIZATION INCENTIVES.

    (a) In General.--Section 132(f)(2)(A) of the Internal Revenue Code 
of 1986 (relating to limitation on exclusion) is amended by striking 
``$100'' and inserting ``$200''.
    (b) Inflation Adjustment.--The second sentence of section 
132(f)(6)(A) of the Internal Revenue Code of 1986 (relating to 
inflation adjustment) is amended--
            (1) by striking ``2002'' and inserting ``2006'', and
            (2) by striking ``2001'' and inserting ``2005''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 153. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO BICYCLE 
              COMMUTERS.

    (a) In General.--Paragraph (1) of section 132(f) of the Internal 
Revenue Code of 1986 (relating to general rule for qualified 
transportation fringe) is amended by adding at the end the following:
                    ``(D) Bicycle commuting allowance.''.
    (b) Bicycle Commuting Allowance Defined.--Paragraph (5) of section 
132(f) of the Internal Revenue Code of 1986 (relating to definitions) 
is amended by adding at the end the following:
                    ``(F) Bicycle commuting allowance.--The term 
                `bicycle commuting allowance' means an amount provided 
                to an employee for transportation on a bicycle if such 
                transportation is in connection with travel between the 
                employee's residence and place of employment.''.
    (c) Limitation on Exclusion.--Paragraph (2) of section 132(f) of 
the Internal Revenue Code of 1986 is amended by striking 
``subparagraphs (A) and (B)'' and inserting ``subparagraphs (A), (B), 
and (D)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

   TITLE II--ENSURING NEAR-TERM ENERGY AFFORDABILITY AND EMPOWERING 
                           AMERICAN FAMILIES

          Subtitle A--Making Gas Price Gouging a Federal Crime

SEC. 201. UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN COMMERCE RELATED TO 
              GASOLINE AND PETROLEUM DISTILLATES.

    (a) Sales to Consumers at Unconscionable Price.--
            (1) In general.--It is unlawful for any person to sell 
        crude oil, gasoline, or petroleum distillates at a price that--
                    (A) is unconscionably excessive; or
                    (B) indicates the seller is taking unfair advantage 
                of the circumstances to increase prices unreasonably.
            (2) Factors considered.--In determining whether a violation 
        of paragraph (1) has occurred, there shall be taken into 
        account, among other factors, whether--
                    (A) the amount charged represents a gross disparity 
                between the price of the crude oil, gasoline, or 
                petroleum distillate sold and the price at which it was 
                offered for sale in the usual course of the seller's 
                business immediately prior to the energy emergency; or
                    (B) the amount charged grossly exceeds the price at 
                which the same or similar crude oil, gasoline, or 
                petroleum distillate was readily obtainable by other 
                purchasers.
            (3) Mitigating factors.--In determining whether a violation 
        of paragraph (1) has occurred, there also shall be taken into 
        account, among other factors, the price that would reasonably 
        equate supply and demand in a competitive and freely 
        functioning market and whether the price at which the crude 
        oil, gasoline, or petroleum distillate was sold reasonably 
        reflects additional costs, not within the control of the 
        seller, that were paid or incurred by the seller.
    (b) False Pricing Information.--It is unlawful for any person to 
report information related to the wholesale price of crude oil, 
gasoline, or petroleum distillates to the Federal Trade Commission if--
            (1) that person knew, or reasonably should have known, the 
        information to be false or misleading;
            (2) the information was required by law to be reported; and
            (3) the person intended the false or misleading data to 
        affect data compiled by that department or agency for 
        statistical or analytical purposes with respect to the market 
        for crude oil, gasoline, or petroleum distillates.
    (c) Market Manipulation.--It is unlawful for any person, directly 
or indirectly, to use or employ, in connection with the purchase or 
sale of crude oil, gasoline, or petroleum distillates at wholesale, any 
manipulative or deceptive device or contrivance, in contravention of 
such rules and regulations as the Commission may prescribe as necessary 
or appropriate in the public interest or for the protection of United 
States citizens.

SEC. 202. ENFORCEMENT UNDER FEDERAL TRADE COMMISSION ACT.

    (a) Enforcement by Commission.--This subtitle shall be enforced by 
the Federal Trade Commission. In enforcing section 201(a), the 
Commission shall give priority to enforcement actions concerning 
companies with total United States wholesale or retail sales of crude 
oil, gasoline, and petroleum distillates in excess of $500,000,000 per 
year but shall not exclude enforcement actions against companies with 
total United States wholesale sales of $500,000,000 or less per year.
    (b) Violation Is Unfair or Deceptive Act or Practice.--The 
violation of any provision of this Act shall be treated as an unfair or 
deceptive act or practice proscribed under a rule issued under section 
18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
57a(a)(1)(B)).

SEC. 203. ENFORCEMENT AT RETAIL LEVEL BY STATE ATTORNEYS GENERAL.

    (a) In General.--A State, as parens patriae, may bring a civil 
action on behalf of its residents in an appropriate district court of 
the United States to enforce the provisions of section 201(a), or to 
impose the civil penalties authorized by section 204 for violations of 
section 201(a), whenever the attorney general of the State has reason 
to believe that the interests of the residents of the State have been 
or are being threatened or adversely affected by a person engaged in 
retail sales of gasoline or petroleum distillates to consumers for 
purposes other than resale that violates this subtitle or a regulation 
under this subtitle.
    (b) Notice.--The State shall serve written notice to the Commission 
of any civil action under subsection (a) prior to initiating such civil 
action. The notice shall include a copy of the complaint to be filed to 
initiate such civil action, except that if it is not feasible for the 
State to provide such prior notice, the State shall provide such notice 
immediately upon instituting such civil action.
    (c) Authority To Intervene.--Upon receiving the notice required by 
subsection (b), the Commission may intervene in such civil action and 
upon intervening--
            (1) be heard on all matters arising in such civil action; 
        and
            (2) file petitions for appeal of a decision in such civil 
        action.
    (d) Construction.--For purposes of bringing any civil action under 
subsection (a), nothing in this section shall prevent the attorney 
general of a State from exercising the powers conferred on the attorney 
general by the laws of such State to conduct investigations or to 
administer oaths or affirmations or to compel the attendance of 
witnesses or the production of documentary and other evidence.
    (e) Venue; Service of Process.--In a civil action brought under 
subsection (a)--
            (1) the venue shall be a judicial district in which--
                    (A) the defendant operates;
                    (B) the defendant was authorized to do business; or
                    (C) where the defendant in the civil action is 
                found;
            (2) process may be served without regard to the territorial 
        limits of the district or of the State in which the civil 
        action is instituted; and
            (3) a person who participated with the defendant in an 
        alleged violation that is being litigated in the civil action 
        may be joined in the civil action without regard to the 
        residence of the person.
    (f) Limitation on State Action While Federal Action Is Pending.--If 
the Commission has instituted a civil action or an administrative 
action for violation of this subtitle, no State attorney general, or 
official or agency of a State, may bring an action under this section 
during the pendency of that action against any defendant named in the 
complaint of the Commission or the other agency for any violation of 
this subtitle alleged in the complaint.
    (g) Enforcement of State Law.--Nothing contained in this section 
shall prohibit an authorized State official from proceeding in State 
court to enforce a civil or criminal statute of such State.

SEC. 204. PENALTIES.

    (a) Civil Penalty.--
            (1) In general.--In addition to any penalty applicable 
        under the Federal Trade Commission Act--
                    (A) any person who violates section 201(b) or 
                201(c) is punishable by a civil penalty of not more 
                than $1,000,000; and
                    (B) any person who violates section 201(a) is 
                punishable by a civil penalty of not more than 
                $3,000,000.
            (2) Method of assessment.--The penalties provided by 
        paragraph (1) shall be assessed in the same manner as civil 
        penalties imposed under section 5 of the Federal Trade 
        Commission Act (15 U.S.C. 45).
            (3) Multiple offenses; mitigating factors.--In assessing 
        the penalty provided by subsection (a)--
                    (A) each day of a continuing violation shall be 
                considered a separate violation; and
                    (B) the Commission shall take into consideration 
                the seriousness of the violation and the efforts of the 
                person committing the violation to remedy the harm 
                caused by the violation in a timely manner.
    (b) Criminal Penalty.--Violation of section 201(a) of this subtitle 
is punishable by a fine of not more than $1,000,000, imprisonment for 
not more than 5 years, or both.

SEC. 205. EFFECT ON OTHER LAWS.

    (a) Other Authority of Commission.--Nothing in this subtitle shall 
be construed to limit or affect in any way the Commission's authority 
to bring enforcement actions or take any other measure under the 
Federal Trade Commission Act (15 U.S.C. 41 et seq.) or any other 
provision of law.
    (b) State Law.--Nothing in this subtitle preempts any State law.

  Subtitle B--Strengthening Anti-Trust Enforcement in the Oil and Gas 
                                Industry

SEC. 211. PROHIBITION ON UNILATERAL WITHHOLDING.

    The Clayton Act (15 U.S.C. 12 et seq.) is amended--
            (1) by redesignating section 28 as section 29; and
            (2) by inserting after section 27 the following:

``SEC. 28. OIL AND NATURAL GAS.

    ``(a) In General.--Except as provided in subsection (b), it shall 
be unlawful for any person to refuse to sell, or to export or divert, 
existing supplies of petroleum, gasoline, or other fuel derived from 
petroleum, or natural gas with the primary intention of increasing 
prices or creating a shortage in a geographic market.
    ``(b) Considerations.--In determining whether a person who has 
refused to sell, or exported or diverted, existing supplies of 
petroleum, gasoline, or other fuel derived from petroleum or natural 
gas or curtailed production of such new supplies, has done so with the 
intent of increasing prices or creating a shortage in a geographic 
market under subsection (a), the court shall consider whether--
            ``(1) the cost of acquiring, producing, refining, 
        processing, marketing, selling, or otherwise making such 
        products available has increased; and
            ``(2) the price obtained from exporting or diverting 
        existing supplies is greater than the price obtained where the 
        existing supplies are located or are intended to be shipped.
    ``(c) Shift of Burden of Proof.--If the Commission or the Attorney 
General makes a prima facie case of withholding supply against a 
refiner, distributor, or retailer under this section--
            ``(1) the burden of proof to show the withholding was not 
        done to raise prices shall shift to the refiner, distributor, 
        or retailer; and
            ``(2) a refiner, distributor, or retailer may rebut the 
        prima facie case by showing that the action that is the basis 
        of the alleged violation was taken in a good faith effort to 
        respond to competition or for another legitimate business 
        reason.''.

SEC. 212. MODIFICATION OF MERGER STANDARD IN CLAYTON ACT.

    Under section 7 of the Clayton Act, a merger in the oil or gas 
industry shall only be allowed if it can be proven that the new entity 
would not appreciably diminish competition.

SEC. 213. STUDY BY THE GOVERNMENT ACCOUNTABILITY OFFICE.

    (a) Definition.--In this section, the term ``covered consent 
decree'' means a consent decree--
            (1) to which either the Federal Trade Commission or the 
        Department of Justice is a party;
            (2) that was entered by the district court not earlier than 
        10 years before the date of enactment of this Act;
            (3) that required divestitures; and
            (4) that involved a person engaged in the business of 
        exploring for, producing, refining, or otherwise processing, 
        storing, marketing, selling, or otherwise making available 
        petroleum, gasoline or other fuel derived from petroleum, or 
        natural gas.
    (b) Requirement for a Study.--Not later than 180 days after the 
date of enactment of this Act, the Comptroller General of the United 
States shall conduct a study evaluating the effectiveness of 
divestitures required under covered consent decrees.
    (c) Requirement for a Report.--Not later than 180 days after the 
date of enactment of this Act, the Comptroller General shall submit a 
report to Congress, the Federal Trade Commission, and the Department of 
Justice regarding the findings of the study conducted under subsection 
(b).
    (d) Federal Agency Consideration.--Upon receipt of the report 
required by subsection (c), the Attorney General or the Chairman of the 
Federal Trade Commission, as appropriate, shall consider whether any 
additional action is required to restore competition or prevent a 
substantial lessening of competition occurring as a result of any 
transaction that was the subject of the study conducted under 
subsection (b).

SEC. 214. JOINT FEDERAL AND STATE TASK FORCE.

    The Attorney General and the Chairman of the Federal Trade 
Commission shall establish a joint Federal-State task force, which 
shall include the attorney general of any State that chooses to 
participate, to investigate information sharing (including through the 
use of exchange agreements and commercial information services) among 
persons in the business of exploring for, producing, refining, or 
otherwise processing, storing, marketing, selling, or otherwise making 
available petroleum, gasoline or other fuel derived from petroleum, or 
natural gas (including any person about which the Energy Information 
Administration collects financial and operating data as part of its 
Financial Reporting System).

   Subtitle C--Improving Oversight of Oil and Gas Market Speculation

SEC. 221. SHORT TITLE.

    This subtitle may be cited as the ``Oil and Gas Traders Oversight 
Act of 2006''.

SEC. 222. REPORTING AND RECORDKEEPING FOR POSITIONS INVOLVING ENERGY 
              COMMODITIES.

    (a) In General.--Section 2(h) of the Commodity Exchange Act (7 
U.S.C. 2(h)) is amended by adding at the end the following:
            ``(7) Reporting and recordkeeping for positions involving 
        energy commodities.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Domestic terminal.--The term 
                        `domestic terminal' means a technology, 
                        software, or other means of providing 
                        electronic access within the United States to a 
                        contract, agreement, or transaction traded on a 
                        foreign board of trade.
                            ``(ii) Energy commodity.--The term `energy 
                        commodity' means a commodity or the derivatives 
                        of a commodity that is used primarily as a 
                        source of energy, including--
                                    ``(I) coal;
                                    ``(II) crude oil;
                                    ``(III) gasoline;
                                    ``(IV) heating oil;
                                    ``(V) diesel fuel;
                                    ``(VI) electricity;
                                    ``(VII) propane; and
                                    ``(VIII) natural gas.
                            ``(iii) Reportable contract.--The term 
                        `reportable contract' means--
                                    ``(I) a contract, agreement, or 
                                transaction involving an energy 
                                commodity , executed on an electronic 
                                trading facility, or
                                    ``(II) a contract, agreement, or 
                                transaction for future delivery 
                                involving an energy commodity for which 
                                the underlying energy commodity has a 
                                physical delivery point within the 
                                United States and that is executed 
                                through a domestic terminal.
                    ``(B) Record keeping.--The Commission, by rule, 
                shall require any person holding, maintaining, or 
                controlling any position in any reportable contract 
                under this section--
                            ``(i) to maintain such records as directed 
                        by the Commission for a period of 5 years, or 
                        longer, if directed by the Commission; and
                            ``(ii) to provide such records upon request 
                        to the Commission or the Department of Justice.
                    ``(C) Reporting of positions involving energy 
                commodities.--The Commission shall prescribe rules 
                requiring such regular or continuous reporting of 
                positions in a reportable contract in accordance with 
                such requirements regarding size limits for reportable 
                positions and the form, timing, and manner of filing 
                such reports under this paragraph, as the Commission 
                shall determine.
                    ``(D) Other rules not affected.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), this paragraph does not prohibit 
                        or impair the adoption by any board of trade 
                        licensed, designated, or registered by the 
                        Commission of any bylaw, rule, regulation, or 
                        resolution requiring reports of positions in 
                        any agreement, contract, or transaction made in 
                        connection with a contract of sale for future 
                        delivery of an energy commodity (including such 
                        a contract of sale), including any bylaw, rule, 
                        regulation, or resolution pertaining to filing 
                        or recordkeeping, which may be held by any 
                        person subject to the rules of the board of 
                        trade.
                            ``(ii) Exception.--Any bylaw, rule, 
                        regulation, or resolution established by a 
                        board of trade described in clause (i) shall 
                        not be inconsistent with any requirement 
                        prescribed by the Commission under this 
                        paragraph.
                    ``(E) Contract, agreement, or transaction for 
                future delivery.--Notwithstanding sections 4(b) and 4a, 
                the Commission shall subject a contract, agreement, or 
                transaction for future delivery in an energy commodity 
                to the requirements established by this paragraph.''.
    (b) Conforming Amendments.--Section 4a(e) of the Commodity Exchange 
Act (7 U.S.C. 6a(e)) is amended--
            (1) in the first sentence--
                    (A) by inserting ``or by an electronic trading 
                facility operating in reliance on section 2(h)(3)'' 
                after ``registered by the Commission''; and
                    (B) by inserting ``electronic trading facility,'' 
                before ``or such board of trade''; and
            (2) in the second sentence, by inserting ``or by an 
        electronic trading facility operating in reliance on section 
        2(h)(3)'' after ``registered by the Commission''.

               Subtitle D--Low Income Energy Price Relief

SEC. 231. ADJUSTMENT OF STANDARD UTILITY ALLOWANCE UNDER THE FOOD STAMP 
              PROGRAM FOR HIGH ENERGY COSTS.

    Section 5(e)(6)(C) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(e)(6)(C)) is amended by adding at the end the following:
                            ``(v) Energy cost increases.--If the Energy 
                        Information Administration projects that energy 
                        costs for the average household in the United 
                        States will increase by more than 20 percent 
                        during the winter heating months (November 
                        through April) of the fiscal year, the amount 
                        of a standard utility allowance used by a State 
                        for all or part of the fiscal year under this 
                        subparagraph may be adjusted to reflect the 
                        amount of the projected increase in energy 
                        costs.''.

SEC. 232. PUBLIC HOUSING ENERGY COST ASSISTANCE.

    (a) Utility Allowance.--Section 8(o)(1)(D) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(D)) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
                            ``(i) In general.--Except as provided under 
                        clause (ii), the Secretary''; and
            (2) by adding at the end the following:
                            ``(ii) Exception for increases in utility 
                        allowances.--The payment standard established 
                        under subparagraph (B) may exceed 110 percent 
                        of the fair market rental established under 
                        subsection (c) for the same size of dwelling 
                        unit in the same market area without prior 
                        approval by the Secretary, if a public housing 
                        agency determines that an increase in the 
                        utility allowance of such agency, in 
                        combination with prevailing rents, requires 
                        such limit to be exceeded.''.
    (b) Annual Adjustment Factor.--Section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended by adding at the 
end the following:
            ``(21) Annual adjustment factor for utility costs.--
        Beginning on October 1, 2006, and each October 1 thereafter, 
        the Secretary, in consultation with the Secretary of Energy, 
        shall, based on the most recent data available, adjust the 
        utility cost component of the annual adjustment factors used to 
        calculate funding for public housing agencies under this 
        section.''.
    (c) Report.--Section 8(o)(1)(E) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(1)(E)) is amended--
            (1) in clause (i), by striking ``; and'' and inserting a 
        semicolon;
            (2) in clause (ii), by striking the period and inserting a 
        semicolon; and
            (3) by adding at the end the following:
                            ``(iii) shall submit a report, on an annual 
                        basis, to the Committee on Banking, Housing, 
                        and Urban Affairs of the Senate and the 
                        Committee on Financial Services of the House of 
                        Representatives on the number and percentage of 
                        families--
                                    ``(I) in each public housing agency 
                                receiving assistance under this 
                                subsection that pay more than 30 
                                percent of their income for rent and 
                                utility costs; and
                                    ``(II) in all public housing 
                                agencies receiving assistance under 
                                this subsection that pay more than 30 
                                percent of their income for rent and 
                                utility costs; and
                            ``(iv) shall publish in the Federal 
                        Register and make available on the Internet 
                        website maintained by the Department of Housing 
                        and Urban Development the reports required 
                        under clause (iii).''.

SEC. 233. REFUNDABLE TAX CREDIT FOR LOW-INCOME RESIDENTIAL ENERGY COST 
              ASSISTANCE.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 36 as section 37 and by inserting 
after section 35 the following new section:

``SEC. 36. CREDIT FOR RESIDENTIAL ENERGY COST ASSISTANCE.

    ``(a) General Rule.--In the case of any individual, there shall be 
allowed as a credit against the tax imposed by this subtitle for the 
taxable year an amount equal to the lesser of--
            ``(1) 20 percent of the qualified residential energy costs 
        of the taxpayer during such taxable year, or
            ``(2) $200 ($300 in the case of a joint return).
    ``(b) Income Limitation.--
            ``(1) In general.--The amount allowable as a credit under 
        subsection (a) for any taxable year shall be reduced (but not 
        below zero) by an amount which bears the same ratio to the 
        amount so allowable (determined without regard to this 
        paragraph) as--
                    ``(A) the amount (if any) by which the taxpayer's 
                adjusted gross income exceeds $35,000 ($70,000 in the 
                case of a joint return), bears to
                    ``(B) $10,000.
            ``(2) Determination of adjusted gross income.--For purposes 
        of paragraph (1), adjusted gross income shall be determined 
        without regard to sections 911, 931, and 933.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified residential energy costs.--The term 
        `qualified residential energy costs' means, with respect to any 
        principal residence of the taxpayer located in the United 
        States, the costs paid or incurred by the taxpayer for the 
        period beginning after December 31, 2005, and ending before 
        January 1, 2008, for any energy utility and home energy fuel.
            ``(2) Reduction for grants.--The amount of qualified 
        residential energy costs which may be taken into account with 
        respect to such period shall be reduced by any amount received 
        by the taxpayer during such period for any residential energy 
        cost under the Low-Income Home Energy Assistance program under 
        title XXVI of the Omnibus Budget Reconciliation Act of 1981 (42 
        U.S.C. 8621 et seq.).
            ``(3) Principal residence.--The term `principal residence' 
        has the same meaning as in section 121, except that--
                    ``(A) no ownership requirement shall be imposed, 
                and
                    ``(B) the principal residence must be used by the 
                taxpayer as the taxpayer's residence during the taxable 
                year.
            ``(4) Certain persons not eligible.--This section shall not 
        apply to any individual with respect to whom a deduction under 
        section 151 is allowable to another taxpayer for a taxable year 
        beginning in the calendar year in which such individual's 
        taxable year begins.
            ``(5) Homeowners associations.--The application of this 
        section to homeowners associations (as defined in section 
        528(c)(1)) or members of such associations, and tenant-
        stockholders in cooperative housing corporations (as defined in 
        section 216), shall be allowed by allocation, apportionment, or 
        otherwise, to the individuals paying, directly or indirectly, 
        for the qualified residential energy cost so incurred.
    ``(d) Regulations.--The Secretary may prescribe such regulations 
and other guidance as may be necessary or appropriate to carry out this 
section.''.
    (b) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by striking ``or'' before ``enacted'' and by inserting 
        before the period at the end ``, or from section 36 of such 
        Code''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by striking the item relating to section 35 and by 
        adding at the end the following new items:

``Sec. 36. Credit for residential energy cost assistance.
``Sec. 37. Overpayments of tax.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

Subtitle E--Small Business and Agricultural Producers Energy Emergency 
                             Relief Program

SEC. 241. ENERGY EMERGENCY DISASTER RELIEF LOANS TO SMALL BUSINESS AND 
              AGRICULTURAL PRODUCERS.

    (a) Definitions.--In this section--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``Secretary'' means the Secretary of 
        Agriculture; and
            (3) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act (15 U.S.C. 
        632).
    (b) Small Business Producer Energy Emergency Disaster Loan 
Program.--
            (1) Disaster loan authority.--Section 7(b) of the Small 
        Business Act (15 U.S.C. 636(b)) is amended by inserting 
        immediately after paragraph (3) the following:
            ``(4) Energy disaster loans.--
                    ``(A) Definitions.--For purposes of this 
                paragraph--
                            ``(i) the term `base price index' means the 
                        moving average of the closing unit price on the 
                        New York Mercantile Exchange for heating oil, 
                        natural gas, gasoline, or propane for the 10 
                        days that correspond to the trading days 
                        described in clause (ii) in each of the most 
                        recent 2 preceding years;
                            ``(ii) the term `current price index' means 
                        the moving average of the closing unit price on 
                        the New York Mercantile Exchange, for the 10 
                        most recent trading days, for contracts to 
                        purchase heating oil, natural gas, gasoline, or 
                        propane during the subsequent calendar month, 
                        commonly known as the `front month'; and
                            ``(iii) the term `significant increase' 
                        means--
                                    ``(I) with respect to the price of 
                                heating oil, natural gas, gasoline, or 
                                propane, any time that the current 
                                price index exceeds the base price 
                                index by not less than 40 percent; and
                                    ``(II) with respect to the price of 
                                kerosene, any increase which the 
                                Administrator, in consultation with the 
                                Secretary of Energy, determines to be 
                                significant.
                    ``(B) Loan authority.--
                            ``(i) In general.--The Administration may 
                        make such loans, either directly or in 
                        cooperation with banks or other lending 
                        institutions through agreements to participate 
                        on an immediate or deferred basis, to assist a 
                        small business concern described in clause 
                        (ii).
                            ``(ii) Criteria.--A small business concern 
                        described in this clause is a small business 
                        concern that has suffered or that is likely to 
                        suffer substantial economic injury on or after 
                        January 1, 2005, as the result of a significant 
                        increase in the price of heating oil, natural 
                        gas, gasoline, propane, or kerosene occurring 
                        on or after January 1, 2005.
                    ``(C) Interest rate.--Any loan or guarantee 
                extended pursuant to this paragraph shall be made at 
                the same interest rate as economic injury loans under 
                paragraph (2).
                    ``(D) Maximum amount.--No loan may be made under 
                this paragraph, either directly or in cooperation with 
                banks or other lending institutions through agreements 
                to participate on an immediate or deferred basis, if 
                the total amount outstanding and committed to the 
                borrower under this subsection would exceed $1,500,000, 
                unless such borrower constitutes a major source of 
                employment in its surrounding area, as determined by 
                the Administrator, in which case the Administrator, in 
                the discretion of the Administrator, may waive the 
                $1,500,000 limitation.
                    ``(E) Disaster declaration.--For purposes of 
                assistance under this paragraph--
                            ``(i) a declaration of a disaster area 
                        based on conditions specified in this paragraph 
                        shall be required, and shall be made by the 
                        President or the Administrator; or
                            ``(ii) if no declaration has been made 
                        pursuant to clause (i), the Governor of a State 
                        in which a significant increase in the price of 
                        heating oil, natural gas, gasoline, propane, or 
                        kerosene has occurred may certify to the 
                        Administration that small business concerns 
                        have suffered economic injury as a result of 
                        such increase and are in need of financial 
                        assistance which is not otherwise available on 
                        reasonable terms in that State, and upon 
                        receipt of such certification, the 
                        Administration may make such loans as would 
                        have been available under this paragraph if a 
                        disaster declaration had been issued.
                    ``(F) Conversion.--Notwithstanding any other 
                provision of law, loans made under this paragraph may 
                be used by a small business concern described in 
                subparagraph (B) to convert from the use of heating 
                oil, natural gas, gasoline, propane, or kerosene to a 
                renewable or alternative energy source, including 
                agriculture and urban waste, geothermal energy, 
                cogeneration, solar energy, wind energy, or fuel 
                cells.''.
            (2) Conforming amendments.--Section 3(k) of the Small 
        Business Act (15 U.S.C. 632(k)) is amended--
                    (A) by inserting ``, significant increase in the 
                price of heating oil, natural gas, gasoline, propane, 
                or kerosene'' after ``civil disorders''; and
                    (B) by inserting ``other'' before ``economic''.
    (c) Agricultural Producer Emergency Loans.--
            (1) In general.--Section 321(a) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1961(a)) is amended--
                    (A) in the first sentence--
                            (i) by striking ``operations have'' and 
                        inserting ``operations (i) have''; and
                            (ii) by inserting before ``: Provided,'' 
                        the following: ``, or (ii)(I) are owned or 
                        operated by such an applicant that is also a 
                        small business concern (as defined in section 3 
                        of the Small Business Act (15 U.S.C. 632)), and 
                        (II) have suffered or are likely to suffer 
                        substantial economic injury on or after August 
                        24, 2005, as the result of a significant 
                        increase in energy costs or input costs from 
                        energy sources occurring on or after August 24, 
                        2005, in connection with an energy emergency 
                        declared by the President or the Secretary'';
                    (B) in the third sentence, by inserting before the 
                period at the end the following: ``or by an energy 
                emergency declared by the President or the Secretary''; 
                and
                    (C) in the fourth sentence--
                            (i) by inserting ``or energy emergency'' 
                        after ``natural disaster'' each place that term 
                        appears; and
                            (ii) by inserting ``or declaration'' after 
                        ``emergency designation''.
            (2) Funding.--Funds available on the date of enactment of 
        this Act for emergency loans under subtitle C of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et 
        seq.) shall be available to carry out the amendments made by 
        paragraph (1) to meet the needs resulting from natural 
        disasters.
    (d) Guidelines and Rulemaking.--
            (1) Guidelines.--Not later than 30 days after the date of 
        enactment of this Act, the Administrator and the Secretary 
        shall each issue guidelines to carry out subsections (b) and 
        (c), respectively, and the amendments made thereby, which 
        guidelines shall become effective on the date of their 
        issuance.
            (2) Rulemaking.--Not later than 30 days after the date of 
        enactment of this Act, the Administrator, after consultation 
        with the Secretary of Energy, shall promulgate regulations 
        specifying the method for determining a significant increase in 
        the price of kerosene under section 7(b)(4)(A)(iii)(II) of the 
        Small Business Act, as added by this section.
    (e) Reports.--
            (1) Small business administration.--Not later than 12 
        months after the date on which the Administrator issues 
        guidelines under subsection (d)(1), and annually thereafter, 
        until the date that is 12 months after the end of the effective 
        period of section 7(b)(4) of the Small Business Act, as added 
        by this section, the Administrator shall submit to the 
        Committee on Small Business and Entrepreneurship of the Senate 
        and the Committee on Small Business of the House of 
        Representatives, a report on the effectiveness of the 
        assistance made available under section 7(b)(4) of the Small 
        Business Act, as added by this section, including--
                    (A) the number of small business concerns that 
                applied for a loan under that section 7(b)(4) and the 
                number of those that received such loans;
                    (B) the dollar value of those loans;
                    (C) the States in which the small business concerns 
                that received such loans are located;
                    (D) the type of energy that caused the significant 
                increase in the cost for the participating small 
                business concerns; and
                    (E) recommendations for ways to improve the 
                assistance provided under that section 7(b)(4), if any.
            (2) Department of agriculture.--Not later than 12 months 
        after the date on which the Secretary issues guidelines under 
        subsection (d)(1), and annually thereafter, until the date that 
        is 12 months after the end of the effective period of the 
        amendments made to section 321(a) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1961(a)) by this section, the 
        Secretary shall submit to the Committee on Small Business and 
        Entrepreneurship and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate and to the Committee on Small 
        Business and the Committee on Agriculture of the House of 
        Representatives, a report that--
                    (A) describes the effectiveness of the assistance 
                made available under section 321(a) of the Consolidated 
                Farm and Rural Development Act (7 U.S.C. 1961(a)), as 
                amended by this section; and
                    (B) contains recommendations for ways to improve 
                the assistance provided under such section 321(a).
    (f) Effective Date.--
            (1) Small business.--The amendments made by subsection (b) 
        shall apply during the 4-year period beginning on the earlier 
        of the date on which guidelines are published by the 
        Administrator under subsection (d)(1), or 30 days after the 
        date of enactment of this Act, with respect to assistance under 
        section 7(b)(4) of the Small Business Act, as added by this 
        section.
            (2) Department of agriculture.--The amendments made by 
        subsection (c) shall apply during the 4-year period beginning 
        on the earlier of the date on which guidelines are published by 
        the Secretary under subsection (d)(1), or 30 days after the 
        date of enactment of this Act, with respect to assistance under 
        section 321(a) of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1961(a)), as amended by this section.

  Subtitle F--Public Access to Federal Alternative Refueling Stations

SEC. 251. ACCESS TO FEDERAL ALTERNATIVE REFUELING STATIONS.

    (a) Definitions.--In this section:
            (1) Alternative fuel refueling station.--The term 
        ``alternative fuel refueling station'' has the meaning given 
        the term ``qualified alternative fuel vehicle refueling 
        property'' in section 30C(c)(1) of the Internal Revenue Code of 
        1986.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Access.--Not later than 18 months after the date of enactment 
of this Act--
            (1) except as provided in subsection (d)(1), any Federal 
        property that includes at least 1 fuel refueling station shall 
        include at least 1 alternative fuel refueling station; and
            (2) except as provided in subsection (d)(2), any 
        alternative fuel refueling station located on property owned by 
        the Federal Government shall permit full public access for the 
        purpose of refueling using alternative fuel.
    (c) Duration.--The requirements described in subsection (b) shall 
remain in effect until the earlier of--
            (1) the date that is 7 years after the date of enactment of 
        this Act; or
            (2) the date on which the Secretary determines that not 
        less than 5 percent of the commercial refueling infrastructure 
        in the United States offers alternative fuels to the general 
        public.
    (d) Exceptions.--
            (1) Waiver.--Subsection (b)(1) shall not apply to any 
        Federal property under the jurisdiction of a Federal agency if 
        the Secretary determines that alternative fuel is not 
        reasonably available to retail purchasers of the fuel, as 
        certified by the head of the agency to the Secretary.
            (2) National security exemption.--Subsection (b)(2) shall 
        not apply to property of the Federal government that the 
        Secretary, in consultation with the Secretary of Defense, has 
        certified must be exempt for national security reasons.
            (3) Safety exemption.--Subsection (b)(2) shall not apply to 
        property of the Federal government that the Secretary 
        determines poses a safety hazard to the general public.
    (e) Verification of Compliance.--The Secretary shall--
            (1) monitor compliance with this section by all Federal 
        agencies; and
            (2) annually submit to Congress a report describing the 
        extent of compliance with this section.

   Subtitle G--Measures to Empower Drivers to Realize Improved Fuel 
                                Economy

SEC. 261. IMPROVED LABELING ON NEW VEHICLE WINDOW STICKERS.

    (a) In General.--The Administrator of the Environmental Protection 
Agency (referred to in this section as the ``Administrator''), in 
consultation with the Secretary of Transportation, shall, as 
appropriate, use existing emission test cycles and updated adjustment 
factors to update and revise the process used to determine fuel economy 
values for labeling purposes as described in sections 600.209-85 and 
600.209-95 of title 40, Code of Federal Regulations (or successor 
regulations) to take into consideration current factors, such as--
            (1) speed limits;
            (2) acceleration rates;
            (3) braking;
            (4) variations in weather and temperature;
            (5) vehicle load;
            (6) use of air conditioning;
            (7) driving patterns; and
            (8) the use of other fuel-consuming features.
    (b) Deadline.--In carrying out subsection (a), the Administrator 
shall--
            (1) issue a notice of proposed rulemaking not later than 90 
        days after the date of enactment of this Act; and
            (2) promulgate a final rule not later than 180 days after 
        the date on which the notice under paragraph (1) is issued.
    (c) Complementary Consumer Information.--The Administrator, using 
the most recent data available to the Administrator, shall augment fuel 
economy labels to provide easily understandable information on the 
safety rating and air pollution and climate change impacts of a new 
vehicle as compared to the safety ratings and climate change impacts of 
other comparable vehicles.
    (d) Reevaluation and Report.--Not later than 3 years after the date 
of promulgation of the final rule under subsection (b)(2), and 
triennially thereafter, the Administrator shall--
            (1) reevaluate the fuel economy labeling procedures 
        described in subsections (a) and (c) to determine whether 
        changes in the factors used to establish the labeling 
        procedures warrant a revision of that process; and
            (2) submit to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on Energy and 
        Commerce of the House of Representatives a report that 
        describes the results of the reevaluation process.

SEC. 262. TIRE EFFICIENCY LABELING PROGRAM.

    (a) Standards for Tires Manufactured for Interstate Commerce.--
Section 30123(b) of title 49, United States Code, is amended to read as 
follows:
    ``(b) Tire Grading and Marketing.--
            ``(1) Uniform quality grading system.--
                    ``(A) In general.--The Secretary shall prescribe, 
                by regulation, a uniform quality grading system for 
                motor vehicle tires to assist consumers to make 
                informed decisions when purchasing tires.
                    ``(B) Inclusion.--The grading system established 
                pursuant to subparagraph (A) shall include standards 
                for rating the fuel efficiency of tires designed for 
                use on vehicles.
            ``(2) Nomenclature and marketing practices.--The Secretary 
        shall cooperate with industry and the Federal Trade Commission 
        to the greatest extent practicable to eliminate deceptive and 
        confusing tire nomenclature and marketing practices.
            ``(3) Effect of standards and regulations.--A tire standard 
        or regulation prescribed pursuant to this chapter supercedes an 
        order or administrative interpretation of the Commission.''.
    (b) National Tire Fuel Efficiency Program.--
            (1) In general.--Chapter 329 of title 49, United States 
        Code, is amended by adding at the end the following:
``Sec. 32920. National tire fuel economy program
    ``(a) Definition.--In this section, the term `fuel economy', with 
respect to a tire, means the extent to which the tire contributes to 
the reduction in fuel usage of the motor vehicle on which the tire is 
mounted.
    ``(b) Program.--The Secretary shall establish a national tire fuel 
economy program for vehicle tires.
    ``(c) Requirements.--Not later than March 31, 2008, the Secretary 
shall issue regulations, which establish--
            ``(1) policies and procedures for testing and labeling 
        tires for fuel economy to enable tire buyers to make informed 
        purchasing decisions about the fuel economy of tires;
            ``(2) policies and procedures to promote the purchase of 
        energy efficient replacement tires, including--
                    ``(A) purchase incentives;
                    ``(B) website listings on the Internet;
                    ``(C) printed fuel economy guide booklets; and
                    ``(D) mandatory requirements for tire retailers to 
                provide tire buyers with fuel efficiency information on 
                tires; and
            ``(3) minimum fuel economy standards for tires.
    ``(d) Minimum Fuel Economy Standards.--In promulgating minimum fuel 
economy standards for tires, the Secretary shall develop standards 
that--
            ``(1) ensure, in conjunction with the requirements under 
        subsection (c)(2), that the average fuel economy of replacement 
        tires is not less than the average fuel economy of tires sold 
        as original equipment;
            ``(2) secure the maximum technically feasible and cost-
        effective fuel savings;
            ``(3) do not adversely affect tire safety;
            ``(4) incorporate the results from--
                    ``(A) laboratory testing; and
                    ``(B) to the extent appropriate and available, on-
                road fleet testing programs conducted by manufacturers; 
                and
            ``(5) do not adversely affect efforts to manage scrap 
        tires.
    ``(e) Applicability.--The policies, procedures, and standards 
developed under subsection (c) shall apply to all tire types and models 
regulated under the uniform tire quality grading standards in section 
575.104 of title 49, Code of Federal Regulations, as in effect on the 
date of the enactment of this section.
    ``(f) Review.--
            ``(1) In general.--Not less than once every 3 years, the 
        Secretary shall--
                    ``(A) review the minimum fuel economy standards in 
                effect for tires under this subsection; and
                    ``(B) subject to paragraph (2), revise the 
                standards as necessary to ensure compliance with 
                standards described in subsection (d).
            ``(2) Limitation.--The Secretary may not reduce the average 
        fuel economy standards applicable to replacement tires.
    ``(g) No Preemption of State Law.--Nothing in this section shall be 
construed to preempt any provision of State law relating to higher fuel 
economy standards applicable to replacement tires designed for use on 
vehicles.
    ``(h) Exceptions.--Nothing in this section shall apply to--
            ``(1) a tire or group of tires with the same stock keeping 
        unit, plant, and year, for which the volume of tires produced 
        or imported is less than 15,000 annually;
            ``(2) a deep tread, winter-type snow tire, space-saver 
        tire, or temporary use spare tire;
            ``(3) a tire with a normal rim diameter of 12 inches or 
        less;
            ``(4) a motorcycle tire; or
            ``(5) a tire manufactured specifically for use in an off-
        road motorized recreational vehicle.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated, for each of fiscal years 2007 through 2011, such sums as 
may be necessary to carry out this section.''.
            (2) Clerical amendment.--The table of sections for chapter 
        329 of title 49, United States Code, is amended by adding after 
        the item relating to section 32919 the following:

``Sec. 32920. National tire fuel economy program.''.
    (c) Conforming Amendment.--Section 30103(b)(1) of title 49, United 
States Code, is amended by striking ``When'' and inserting ``Except as 
provided in section 30920, if''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on March 31, 2008.

SEC. 263. NEW VEHICLE OPTIONS TO EMPOWER DRIVERS TO REDUCE FUEL USE.

    Not later than 18 months after the date of the enactment of this 
Act, the Secretary of Transportation, in consultation with the 
Administrator of the Environmental Protection Agency, shall promulgate 
regulations to require, beginning in 2010, that original equipment 
manufacturers of all new on-highway motor vehicles sold in the United 
States provide purchasers with the vehicle options that will--
            (1) use on-board electronic instruments to provide real-
        time fuel consumption data;
            (2) use on-board electronic instruments to signal a driver 
        when inadequate tire pressure is affecting vehicle safety or 
        fuel economy; and
            (3) a device that will allow drivers to voluntarily place 
        their vehicle in a mode that will automatically produce greater 
        fuel economy.

SEC. 264. IDLING REDUCTION TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits), as amended by this Act, is amended by adding at the end the 
following new section:

``SEC. 45O. IDLING REDUCTION CREDIT.

    ``(a) General Rule.--For purposes of section 38, the idling 
reduction tax credit determined under this section for the taxable year 
is an amount equal to 25 percent of the amount paid or incurred for 
each qualifying idling reduction device placed in service by the 
taxpayer during the taxable year.
    ``(b) Limitation.--The maximum amount allowed as a credit under 
subsection (a) shall not exceed $1,000 per device.
    ``(c) Definitions.--For purposes of subsection (a)--
            ``(1) Qualifying idling reduction device.--The term 
        `qualifying idling reduction device' means any device or system 
        of devices that--
                    ``(A) is installed on a heavy-duty diesel-powered 
                on-highway vehicle,
                    ``(B) is designed to provide to such vehicle those 
                services (such as heat, air conditioning, or 
                electricity) that would otherwise require the operation 
                of the main drive engine while the vehicle is 
                temporarily parked or remains stationary,
                    ``(C) the original use of which commences with the 
                taxpayer,
                    ``(D) is acquired for use by the taxpayer and not 
                for resale, and
                    ``(E) is certified by the Secretary of Energy, in 
                consultation with the Administrator of the 
                Environmental Protection Agency and the Secretary of 
                Transportation, to reduce long-duration idling of such 
                vehicle at a motor vehicle rest stop or other location 
                where such vehicles are temporarily parked or remain 
                stationary.
            ``(2) Heavy-duty diesel-powered on-highway vehicle.--The 
        term `heavy-duty diesel-powered on-highway vehicle' means any 
        vehicle, machine, tractor, trailer, or semi-trailer propelled 
        or drawn by mechanical power and used upon the highways in the 
        transportation of passengers or property, or any combination 
        thereof determined by the Federal Highway Administration.
            ``(3) Long-duration idling.--The term `long-duration 
        idling' means the operation of a main drive engine, for a 
        period greater than 15 consecutive minutes, where the main 
        drive engine is not engaged in gear. Such term does not apply 
        to routine stoppages associated with traffic movement or 
        congestion.
    ``(d) No Double Benefit.--For purposes of this section--
            ``(1) Reduction in basis.--If a credit is determined under 
        this section with respect to any property by reason of 
        expenditures described in subsection (a), the basis of such 
        property shall be reduced by the amount of the credit so 
        determined.
            ``(2) Other deductions and credits.--No deduction or credit 
        shall be allowed under any other provision of this chapter with 
        respect to the amount of the credit determined under this 
        section.
    ``(e) Election Not to Claim Credit.--This section shall not apply 
to a taxpayer for any taxable year if such taxpayer elects to have this 
section not apply for such taxable year.
    ``(f) Termination.--This section shall not apply with respect to 
any property placed in service after December 31, 2014.''.
    (b) Credit to Be Part of General Business Credit.--Subsection (b) 
of section 38 of the Internal Revenue Code of 1986 (relating to general 
business credit), as amended by this Act, is amended by striking 
``plus'' at the end of paragraph (30), by striking the period at the 
end of paragraph (31) and inserting ``, plus'' , and by adding at the 
end the following new paragraph:
            ``(32) the idling reduction tax credit determined under 
        section 45O(a).''.
    (c) Conforming Amendments.--
            (1) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986, 
        as amended by this Act, is amended by inserting after the item 
        relating to section 45N the following new item:

``Sec. 45O. Idling reduction credit''.
            (2) Section 1016(a) of such Code, as amended by this Act, 
        is amended by striking ``and'' at the end of paragraph (37), by 
        striking the period at the end of paragraph (38) and inserting 
        ``, and'', and by adding at the end the following:
            ``(39) in the case of a facility with respect to which a 
        credit was allowed under section 45O, to the extent provided in 
        section 45O(d)(1).
            ``(40) Section 6501(m) of such Code is amended by inserting 
        `45O(e),' after `45D(c)(4),'.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
    (e) Determination of Certification Standards by Secretary of Energy 
for Certifying Idling Reduction Devices.--Not later than 6 months after 
the date of the enactment of this Act and in order to reduce air 
pollution and fuel consumption, the Secretary of Energy, in 
consultation with the Administrator of the Environmental Protection 
Agency and the Secretary of Transportation, shall publish the standards 
under which the Secretary, in consultation with the Administrator of 
the Environmental Protection Agency and the Secretary of 
Transportation, will, for purposes of section 45O of the Internal 
Revenue Code of 1986 (as added by this section), certify the idling 
reduction devices which will reduce long-duration idling of vehicles at 
motor vehicle rest stops or other locations where such vehicles are 
temporarily parked or remain stationary in order to reduce air 
pollution and fuel consumption.

  Subtitle H--Providing Consumers With Additional Advanced Technology 
                      Vehicle Purchase Incentives

SEC. 271. EXPANSION AND EXTENSION OF ALTERNATIVE MOTOR VEHICLE CREDIT.

    (a) Increases in Credit.--
            (1) New qualified fuel cell motor vehicle.--Subsection (b) 
        of section 30B of the Internal Revenue Code of 1986 (relating 
        to new qualified fuel cell motor vehicle credit) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``$8,000 ($4,000'' in 
                        subparagraph (A) and inserting ``$16,000 
                        ($8,000'';
                            (ii) by striking ``$10,000'' in 
                        subparagraph (B) and inserting ``$20,000'';
                            (iii) by striking ``$20,000'' in 
                        subparagraph (C) and inserting ``$40,000''; and
                            (iv) by striking ``$40,000'' in 
                        subparagraph (D) and inserting ``$80,000''; and
                    (B) in paragraph (2)(A)--
                            (i) by striking ``$1,000'' in clause (i) 
                        and inserting ``$2,000'';
                            (ii) by striking ``$1,500'' in clause (ii) 
                        and inserting ``$3,000'';
                            (iii) by striking ``$2,000'' in clause 
                        (iii) and inserting ``$4,000'';
                            (iv) by striking ``$2,500'' in clause (iv) 
                        and inserting ``$5,000'';
                            (v) by striking ``$3,000'' in clause (v) 
                        and inserting ``$6,000'';
                            (vi) by striking ``$3,500'' in clause (vi) 
                        and inserting ``$7,000''; and
                            (vii) by striking ``$4,000'' in clause 
                        (vii) and inserting ``$8,000''.
            (2) New advanced lean burn technology motor vehicle.--
                    (A) Fuel economy.--The table in clause (i) of 
                section 30B(c)(2)(A) of such Code (relating to fuel 
                economy) is amended--
                            (i) by striking ``$400'' and inserting 
                        ``$800'';
                            (ii) by striking ``$800'' and inserting 
                        ``$1,600'';
                            (iii) by striking ``$1,200'' and inserting 
                        ``$2,400'';
                            (iv) by striking ``$1,600'' and inserting 
                        ``$3,200'';
                            (v) by striking ``$2,000'' and inserting 
                        ``$4,000''; and
                            (vi) by striking ``$2,400'' and inserting 
                        ``$4,800''.
                    (B) Conservation.--The table in subparagraph (B) of 
                section 30B(c)(2) of such Code (relating to 
                conservation credit) is amended--
                            (i) by striking ``$250'' and inserting 
                        ``$500'';
                            (ii) by striking ``$500'' and inserting 
                        ``$1,000'';
                            (iii) by striking ``$750'' and inserting 
                        ``$1,500''; and
                            (iv) by striking ``$1,000'' and inserting 
                        ``$2,000''.
    (b) Expansion of Number of New Qualified Hybrid and Advanced Lean 
Burn Technology Vehicles Eligible for Credit.--Paragraph (2) of section 
30B(f) of the Internal Revenue Code of 1986 (relating to phaseout) is 
amended--
            (1) by striking ``the period'' and inserting ``any 
        period'',
            (2) by striking ``United States after December 31, 2005, is 
        at least 60,000'' and inserting ``United States is--
                    ``(A) after December 31, 2005, at least 60,000, and
                    ``(B) after December 31, 2008, and before January 
                1, 2013, 60,000.'', and
            (3) by adding at the end the following new sentence: ``For 
        purposes of the preceding sentence, the Secretary may extend 
        the time period through 2014 if the Secretary determines that 
        market conditions merit such action.''.
    (c) Extension.--Section 30B(j) of the Internal Revenue Code of 1986 
(relating to termination) is amended--
            (1) by striking ``December 31, 2010'' both places it 
        appears and inserting ``December 31, 2014'', and
            (2) by striking ``December 31, 2009'' in paragraph (3) and 
        inserting ``December 31, 2014''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 1341(a) of the 
Energy Policy Act of 2005.

SEC. 272. PLUG-IN HYBRID MOTOR VEHICLE TAX CREDIT.

    (a) In General.--Section 30B of the Internal Revenue Code of 1986 
is amended by redesignating subsections (i) and (j) as subsections (j) 
and (k), respectively, and by inserting after subsection (h) the 
following new subsection:
    ``(i) New Plug-in Hybrid Motor Vehicle Credit.--
            ``(1) In general.--For purposes of subsection (a), the new 
        plug-in hybrid motor vehicle credit determined under this 
        subsection with respect to a new qualified plug-in hybrid motor 
        vehicle or new qualified flexible-fuel plug-in hybrid motor 
        vehicle placed in service by the taxpayer during the taxable 
        year is--
                    ``(A) $3,000, if such vehicle is a new qualified 
                plug-in hybrid motor vehicle with a gross vehicle 
                weight rating of not more than 8,500 pounds, and
                    ``(B) $3,150, if such vehicle is a new qualified 
                flexible-fuel plug-in hybrid motor vehicle with a gross 
                vehicle weight rating of not more than 8,500 pounds.
            ``(2) Increase for fuel efficiency.--
                    ``(A) In general.--The amount determined under 
                paragraph (1)(A) with respect to a new qualified plug-
                in hybrid motor vehicle or new qualified flexible-fuel 
                plug-in hybrid motor vehicle which is a passenger 
                automobile or light truck shall be increased by--
                            ``(i) $1,000 if such vehicle achieves at 
                        least 250 percent but less than 250 percent of 
                        the 2002 model year city fuel economy,
                            ``(ii) $1,500 if such vehicle achieves at 
                        least 250 percent but less than 275 percent of 
                        the 2002 model year city fuel economy,
                            ``(iii) $2,000 if such vehicle achieves at 
                        least 275 percent but less than 300 percent of 
                        the 2002 model year city fuel economy,
                            ``(iv) $2,500 if such vehicle achieves at 
                        least 300 percent but less than 325 percent of 
                        the 2002 model year city fuel economy, and
                            ``(v) $3,000 if such vehicle achieves at 
                        least 325 percent of the 2002 model year city 
                        fuel economy,
                    ``(B) 2002 model year city fuel economy.--For 
                purposes of subparagraph (A), the 2002 model year city 
                fuel economy with respect to a vehicle shall be 
                determined using the tables provided in subsection 
                (b)(2)(B).
            ``(3) New qualified plug-in hybrid motor vehicle.--For 
        purposes of this subsection, the term `new qualified plug-in 
        hybrid motor vehicle' means a motor vehicle--
                    ``(A) which is propelled by an internal combustion 
                engine or heat engine using --
                            ``(i) any combustible fuel,
                            ``(ii) an on-board, rechargeable storage 
                        device, and
                            ``(iii) a means of using an off-board 
                        source of electricity,
                    ``(B) which, in the case of a passenger automobile 
                or light truck, has received on or after the date of 
                the enactment of this section a certificate that such 
                vehicle meets or exceeds the Bin 5 Tier II emission 
                level established in regulations prescribed by the 
                Administrator of the Environmental Protection Agency 
                under section 202(i) of the Clean Air Act for that make 
                and model year vehicle,
                    ``(C) the original use of which commences with the 
                taxpayer,
                    ``(D) which is acquired for use or lease by the 
                taxpayer and not for resale, and
                    ``(E) which is made by a manufacturer.
            ``(4) New qualified flexible-fuel plug-in hybrid motor 
        vehicle.--For purposes of this subsection, the term `new 
        qualified flexible-fuel plug-in hybrid motor vehicle' means a 
        motor vehicle--
                    ``(A) which is propelled by an internal combustion 
                engine or heat engine using--
                            ``(i) an on-board, rechargeable storage 
                        device, and
                            ``(ii) a means of using an off-board source 
                        of electricity,
                    ``(B) which is warrantied by its manufacturer to 
                operate on any combination of gasoline and a fuel blend 
                containing up to 85 percent ethanol and 15 percent 
                gasoline by volume (E85),
                    ``(C) which, in the case of a passenger automobile 
                or light truck, has received on or after the date of 
                the enactment of this section a certificate that such 
                vehicle meets or exceeds the Bin 5 Tier II emission 
                level established in regulations prescribed by the 
                Administrator of the Environmental Protection Agency 
                under section 202(i) of the Clean Air Act for that make 
                and model year vehicle,
                    ``(D) the original use of which commences with the 
                taxpayer,
                    ``(E) which is acquired for use or lease by the 
                taxpayer and not for resale, and
                    ``(F) which is made by a manufacturer.''.
    (b) Conforming Amendments.--
            (1) Section 30B(a) of the Internal Revenue Code of 1986 is 
        amended by striking ``and'' at the end of paragraph (3), by 
        striking the period at the end of paragraph (4) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(5) the new plug-in hybrid motor vehicle credit 
        determined under subsection (i).''.
            (2) Section 30B(k)(2) of such Code, as redesignated by 
        subsection (a), is amended by striking ``or'' and inserting a 
        comma and by inserting ``, a new qualified plug-in hybrid motor 
        vehicle (as described in subsection (i)(3)), or a new qualified 
        flexible-fuel plug-in hybrid motor vehicle (as described in 
        subsection (i)(4))'' after ``subsection (d)(2)(A))''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

      Subtitle I--Tax Incentives for Fuel Efficient Private Fleets

SEC. 281. TAX CREDIT FOR FUEL-EFFICIENT FLEETS.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 48B the following new section:

``SEC. 48C. FUEL-EFFICIENT FLEET CREDIT.

    ``(a) General Rule.--For purposes of section 46, the fuel-efficient 
fleet credit for any taxable year is 15 percent of the qualified fuel-
efficient vehicle investment amount of an eligible taxpayer for such 
taxable year.
    ``(b) Vehicle Purchase Requirement.--In the case of any eligible 
taxpayer which places less than 10 qualified fuel-efficient vehicles in 
service during the taxable year, the qualified fuel-efficient vehicle 
investment amount shall be zero.
    ``(c) Qualified Fuel-Efficient Vehicle Investment Amount.--For 
purposes of this section--
            ``(1) In general.--The term `qualified fuel-efficient 
        vehicle investment amount' means the basis of any qualified 
        fuel-efficient vehicle placed in service by an eligible 
        taxpayer during the taxable year.
            ``(2) Qualified fuel-efficient vehicle.--
                    ``(A) In general.--The term `qualified fuel-
                efficient vehicle' means an vehicle which has a fuel 
                economy which is at least 150 percent greater than the 
                average fuel economy standard for an vehicle of the 
                same class and model year.
                    ``(B) Certain vehicles excluded.--Such term shall 
                not include any vehicle for which a credit is allowed 
                to the eligible taxpayer under section 30 or 30B.
            ``(3) Other terms.--The terms `vehicle', `average fuel 
        economy standard', `fuel economy', and `model year' have the 
        meanings given to such terms under section 32901 of title 49, 
        United States Code.
    ``(d) Eligible Taxpayer.--The term `eligible taxpayer' means, with 
respect to any taxable year, a taxpayer who owns a fleet of 100 or more 
vehicles which are used in the trade or business of the taxpayer on the 
first day of such taxable year.
    ``(e) Termination.--This section shall not apply to any vehicle 
placed in service after December 31, 2010.''.
    (b) Credit Treated as Part of Investment Credit.--Section 46 of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of paragraph (3), by striking the period at the end of paragraph (4) 
and inserting ``, and,'' and by adding at the end the following new 
paragraph:
            ``(5) the fuel-efficient fleet credit.''.
    (c) Conforming Amendments.--
            (1) Section 49(a)(1)(C) of the Internal Revenue Code of 
        1986 is amended by striking ``and'' at the end of clause (iii), 
        by striking the period at the end of clause (iv) and inserting 
        ``, and,'' and by adding at the end the following new clause:
                            ``(v) the basis of any qualified fuel-
                        efficient vehicle which is taken into account 
                        under section 48C.''.
            (2) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 48 the following new item:

``Sec. 48C. Fuel-efficient fleet credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2005, in taxable years ending after 
such date, under rules similar to the rules of section 48(m) of the 
Internal Revenue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 1990).

          TITLE III-- ACCELERATING CLEAN FUELS AND ELECTRICITY

   Subtitle A--Guaranteeing a Minimum Level of Renewable Electricity 
                               Generation

SEC. 301. RENEWABLE PORTFOLIO STANDARD.

    The Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 
et seq.) is amended by adding at the end of title VI the following:

``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    ``(a) Definitions.--In this section:
            ``(1) Base amount of electricity.--The term `base amount of 
        electricity' means the total amount of electricity sold by an 
        electric utility to electric consumers in a calendar year, 
        excluding--
                    ``(A) electricity generated by a hydroelectric 
                facility (including a pumped storage facility but 
                excluding incremental hydropower); and
                    ``(B) electricity generated through the 
                incineration of municipal solid waste.
            ``(2) Distributed generation facility.--The term 
        `distributed generation facility' means a facility at a 
        customer site.
            ``(3) Existing renewable energy.--The term `existing 
        renewable energy' means, except as provided in paragraph 
        (7)(B), electric energy generated at a facility (including a 
        distributed generation facility) placed in service prior to the 
        date of enactment of this section from--
                    ``(A) solar, wind, or geothermal energy;
                    ``(B) ocean energy;
                    ``(C) biomass (as defined in section 203(b) of the 
                Energy Policy Act of 2005 (42 U.S.C. 15852(b))); or
                    ``(D) landfill gas.
            ``(4) Geothermal energy.--The term `geothermal energy' 
        means energy derived from a geothermal deposit (within the 
        meaning of section 613(e)(2) of the Internal Revenue Code of 
        1986).
            ``(5) Incremental geothermal production.--
                    ``(A) In general.--The term `incremental geothermal 
                production' means, for any year, the difference 
                between--
                            ``(i) the total kilowatt hours of 
                        electricity produced from a facility (including 
                        a distributed generation facility) using 
                        geothermal energy, and
                            ``(ii) the average annual kilowatt hours 
                        produced at the facility for 5 of the 7 
                        calendar years preceding the date of enactment 
                        of this section after eliminating the highest 
                        and the lowest kilowatt hour production years 
                        in that 7-year period.
                    ``(B) Special rule.--A facility described in 
                subparagraph (A) that was placed in service at least 7 
                years before the date of enactment of this section 
                shall, beginning with the year in which that date of 
                enactment occurs, reduce the amount calculated under 
                subparagraph (A)(ii) each year, on a cumulative basis, 
                by the average percentage decrease in the annual 
                kilowatt hour production for the 7-year period 
                described in subparagraph (A)(ii), the cumulative sum 
                of which shall not exceed 30 percent.
            ``(6) Incremental hydropower.--
                    ``(A) In general.--The term `incremental 
                hydropower' means additional energy generated as a 
                result of efficiency improvements or capacity additions 
                made on or after the date of enactment of this section 
                or the effective date of an existing applicable State 
                renewable portfolio standard program at a hydroelectric 
                facility that was placed in service before that date.
                    ``(B) Exclusions.--The term `incremental 
                hydropower' does not include additional energy 
                generated as a result of operational changes not 
                directly associated with efficiency improvements or 
                capacity additions.
                    ``(C) Measurement of improvements and additions.--
                Efficiency improvements and capacity additions referred 
                to in subparagraph (A) shall be measured on the basis 
                of the same water flow information used to determine a 
                historic average annual generation baseline for the 
                hydroelectric facility and certified by the Secretary 
                or the Federal Energy Regulatory Commission.
            ``(7) New renewable energy.--The term `new renewable 
        energy' means--
                    ``(A) electric energy generated at a facility 
                (including a distributed generation facility) placed in 
                service on or after January 1, 2003, from--
                            ``(i) solar, wind, or geothermal energy or 
                        ocean energy;
                            ``(ii) biomass (as defined in section 
                        203(b) of the Energy Policy Act of 2005 (42 
                        U.S.C. 15852(b)));
                            ``(iii) landfill gas; or
                            ``(iv) incremental hydropower; and
                    ``(B) for electric energy generated at a facility 
                (including a distributed generation facility) placed in 
                service before the date of enactment of this section--
                            ``(i) the additional energy above the 
                        average generation in the 3 years preceding the 
                        date of enactment of this section at the 
                        facility from--
                                    ``(I) solar or wind energy or ocean 
                                energy;
                                    ``(II) biomass (as defined in 
                                section 203(b) of the Energy Policy Act 
                                of 2005 (42 U.S.C. 15852(b)));
                                    ``(III) landfill gas; or
                                    ``(IV) incremental hydropower; and
                            ``(ii) the incremental geothermal 
                        production.
            ``(8) Ocean energy.--The term `ocean energy' includes 
        current, wave, tidal, and thermal energy.
    ``(b) Renewable Energy Requirement.--
            ``(1) Requirement.--
                    ``(A) In general.--Each electric utility that sells 
                electricity to electric consumers shall obtain a 
                percentage of the base amount of electricity the 
                electric utility sells to electric consumers in any 
                calendar year from new renewable energy or existing 
                renewable energy.
                    ``(B) Percentages.--The percentage obtained in a 
                calendar year shall not be less than the amount 
                specified in the following table:


 
 
 
``Calendar year                          Min. annual percentage
  2008 through 2011....................  2.5
  2012 through 2015....................  5.0
  2016 through 2019....................  7.5
  2020 through 2030....................  10.0

            ``(2) Means of compliance.--An electric utility shall meet 
        the requirements of paragraph (1) by--
                    ``(A) generating electric energy using new 
                renewable energy or existing renewable energy;
                    ``(B) purchasing electric energy generated by new 
                renewable energy or existing renewable energy;
                    ``(C) purchasing renewable energy credits issued 
                under subsection (c); or
                    ``(D) a combination of the foregoing.
    ``(c) Renewable Energy Credit Trading Program.--
            ``(1) In general.--Not later than January 1, 2007, the 
        Secretary shall establish a renewable energy credit trading 
        program to permit an electric utility that does not generate or 
        purchase enough electric energy from renewable energy to meet 
        its obligations under subsection (b)(1) to satisfy the 
        requirements by purchasing sufficient renewable energy credits.
            ``(2) Responsibilities of secretary.--As part of the 
        program, the Secretary shall--
                    ``(A) issue renewable energy credits to generators 
                of electric energy from new renewable energy;
                    ``(B) sell renewable energy credits to electric 
                utilities at the rate of 1.5 cents per kilowatt-hour 
                (as adjusted for inflation under subsection (h));
                    ``(C) ensure that a kilowatt hour, including the 
                associated renewable energy credit, shall be used only 
                once for purposes of compliance with this section; and
                    ``(D) allow double credits for generation from 
                facilities on Indian land, and triple credits for 
                generation from small renewable distributed generators 
                (meaning those no larger than 1 megawatt).
            ``(3) Use of credits.--A credit under paragraph (2)(A) may 
        only be used for compliance with this section for the 3-year 
        period beginning on the date of issuance of the credit.
    ``(d) Enforcement.--
            ``(1) Civil penalties.--Any electric utility that fails to 
        meet the renewable energy requirements of subsection (b) shall 
        be subject to a civil penalty.
            ``(2) Amount of penalty.--The amount of the civil penalty 
        shall be determined by multiplying the number of kilowatt-hours 
        of electric energy sold to electric consumers in violation of 
        subsection (b) by the greater of 1.5 cents (adjusted for 
        inflation under subsection (h)) or 200 percent of the average 
        market value of renewable energy credits during the year in 
        which the violation occurred.
            ``(3) Mitigation or waiver.--
                    ``(A) In general.--The Secretary may mitigate or 
                waive a civil penalty under this subsection if the 
                electric utility was unable to comply with subsection 
                (b) for reasons outside of the reasonable control of 
                the utility.
                    ``(B) Reduction of amount.--The Secretary shall 
                reduce the amount of any penalty determined under 
                paragraph (2) by an amount paid by the electric utility 
                to a State for failure to comply with the requirement 
                of a State renewable energy program if the State 
                requirement is greater than the applicable requirement 
                of subsection (b).
            ``(4) Procedure for assessing penalty.--The Secretary shall 
        assess a civil penalty under this subsection in accordance with 
        the procedures prescribed by section 333(d) of the Energy 
        Policy and Conservation Act of 1954 (42 U.S.C. 6303).
    ``(e) State Renewable Energy Account Program.--
            ``(1) In general.--Not later than December 31, 2008, the 
        Secretary shall establish a State renewable energy account 
        program.
            ``(2) Deposit of amounts.--All funds collected by the 
        Secretary from the sale of renewable energy credits and the 
        assessment of civil penalties under this section shall be 
        deposited into the renewable energy account established 
        pursuant to this subsection.
            ``(3) Maintenance of account.--The State renewable energy 
        account shall be held by the Secretary and shall not be 
        transferred to the Treasury Department.
            ``(4) Use of amounts.--Proceeds deposited in the State 
        renewable energy account shall be used by the Secretary, 
        subject to appropriations, for a program to provide grants to 
        the State agency responsible for developing State energy 
        conservation plans under section 362 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6322) for the purposes of promoting 
        renewable energy production, including programs that promote 
        technologies that reduce the use of electricity at customer 
        sites such as solar water heating.
            ``(5) Guidelines and criteria.--The Secretary may issue 
        guidelines and criteria for grants awarded under this 
        subsection.
            ``(6) Maintenance of records and evidence of compliance.--
        State energy offices receiving grants under this section shall 
        maintain such records and evidence of compliance as the 
        Secretary may require.
            ``(7) Allocation of funds.--In allocating funds under this 
        program, the Secretary shall give preference--
                    ``(A) to States in regions that have a 
                disproportionately small share of economically 
                sustainable renewable energy generation capacity; and
                    ``(B) to State programs to stimulate or enhance 
                innovative renewable energy technologies.
    ``(f) Rules.--Not later than 1 year after the date of enactment of 
this section, the Secretary shall issue rules implementing this 
section.
    ``(g) Exemptions.--This section shall not apply in any calendar 
year to an electric utility that--
            ``(1) sold less than 4,000,000 megawatt-hours of electric 
        energy to electric consumers during the preceding calendar 
        year; or
            ``(2) is located in Hawaii.
    ``(h) Inflation Adjustment.--Not later than December 31 of each 
year beginning in 2008, the Secretary shall adjust for inflation the 
price of a renewable energy credit under subsection (c)(2)(B) and the 
amount of the civil penalty per kilowatt-hour under subsection (d)(2).
    ``(i) State Programs.--
            ``(1) In general.--Nothing in this section shall diminish 
        any authority of a State or political subdivision thereof to 
        adopt or enforce any law or regulation respecting renewable 
        energy, but, except as provided in subsection (d)(3), no such 
        law or regulation shall relieve any person of any requirement 
        otherwise applicable under this section.
            ``(2) Federal-state coordination.--The Secretary, in 
        consultation with States having renewable energy programs, 
        shall, to the maximum extent practicable, facilitate 
        coordination between the Federal program and State programs.
    ``(j) Termination of Authority.--This section and the authority 
provided by this section terminate on December 31, 2030.''.

 Subtitle B--Facilitating Home Energy Generation Through Net Metering 
                     and Interconnection Standards

SEC. 311. NET METERING.

    (a) Adoption of Standard.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
striking paragraph (11) and inserting the following:
            ``(11) Net metering.--
                    ``(A) In general.--On the request of any electric 
                consumer served by an electric utility, the electric 
                utility shall make available to the electric consumer 
                net metering as provided in section 115(j).
                    ``(B) Consideration by state regulatory 
                authorities.--Notwithstanding subsections (b) and (c) 
                of section 112, not later than 1 year after the date of 
                enactment of this paragraph, a State regulatory 
                authority may consider and make a determination 
                concerning whether it is in the public interest to 
                decline to implement subparagraph (A) in the State.
                    ``(C) Incentives.--Nothing in this paragraph 
                precludes a State from establishing incentives to 
                encourage on-site generating facilities and net 
                metering in addition to the requirement under this 
                subsection.
                    ``(D) Reports.--Not later than 1 year after the 
                date of enactment of this paragraph and annually 
                thereafter, the Secretary shall submit to Congress a 
                report that--
                            ``(i) describes the status of 
                        implementation by the States of subparagraph 
                        (A);
                            ``(ii) contains a list of pre-approved 
                        systems and equipment eligible for uniform 
                        interconnection treatment; and
                            ``(iii) describes the public benefits that 
                        have been derived from net metering and 
                        interconnection standards.''.
    (b) Special Rules for Net Metering.--Section 115 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by 
adding at the end the following:
    ``(j) Net Metering.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible on-site generating facility.--The 
                term `eligible on-site generating facility' means--
                            ``(i) a facility on the site of a 
                        residential electric consumer with a maximum 
                        generating capacity of 25 kilowatts or less 
                        that is fueled by solar energy, wind energy, or 
                        fuel cells; and
                            ``(ii) a facility on the site of a 
                        commercial electric consumer with a maximum 
                        generating capacity of 1000 kilowatts or less 
                        that is fueled solely by a renewable energy 
                        resource, landfill gas, or a high-efficiency 
                        system.
                    ``(B) High efficiency system.--The term `high 
                efficiency system' means a system that is comprised 
                of--
                            ``(i) fuel cells; or
                            ``(ii) combined heat and power.
                    ``(C) Net metering service.--The term `net metering 
                service' means service to an electric consumer, as 
                provided in section 111(d)(11), under which electric 
                energy generated by that electric consumer from an 
                eligible on-site generating facility and delivered to 
                the local distribution facilities may be used to offset 
                electric energy provided by the electric utility to the 
                electric consumer during the applicable billing period.
                    ``(D) Renewable energy resource.--The term 
                `renewable energy resource' means solar, wind, biomass, 
                micro-freeflow-hydro, or geothermal energy.
            ``(2) Net metering service.--For the purposes of 
        undertaking the consideration and making the determination with 
        respect to the standard concerning net metering established by 
        section 111(d)(11), the term `net metering service' means a 
        service provided in accordance with this subsection.
            ``(3) Charges by an electric utility.--An electric 
        utility--
                    ``(A) shall charge the owner or operator of an on-
                site generating facility rates and charges that are 
                identical to those that would be charged other electric 
                consumers of the electric utility in the same rate 
                class; and
                    ``(B) shall not charge the owner or operator of an 
                on-site generating facility any additional standby, 
                capacity, interconnection, or other rate or charge.
            ``(4) Measurement of quantities.--An electric utility that 
        sells electric energy to the owner or operator of an on-site 
        generating facility shall measure the quantity of electric 
        energy produced by the on-site facility and the quantity of 
        electric energy consumed by the owner or operator of an on-site 
        generating facility during a billing period with a single bi-
        directional meter or otherwise in accordance with reasonable 
        metering practices.
            ``(5) Quantity sold in excess of quantity supplied.--If the 
        quantity of electric energy sold by the electric utility to an 
        on-site generating facility exceeds the quantity of electric 
        energy supplied by the on-site generating facility to the 
        electric utility during the billing period, the electric 
        utility may bill the owner or operator for the net quantity of 
        electric energy sold, in accordance with reasonable metering 
        practices.
            ``(6) Quantity supplied in excess of quantity sold.--If the 
        quantity of electric energy supplied by the on-site generating 
        facility to the electric utility exceeds the quantity of 
        electric energy sold by the electric utility to the on-site 
        generating facility during the billing period--
                    ``(A) the electric utility may bill the owner or 
                operator of the on-site generating facility for the 
                appropriate charges for the billing period in 
                accordance with paragraph (5); and
                    ``(B) the owner or operator of the on-site 
                generating facility shall be credited for the excess 
                kilowatt-hours generated during the billing period 
                with--
                            ``(i) a kilowatt-hour credit appearing on 
                        the bill for the following billing period; or
                            ``(ii) a cash refund.
            ``(7) Compliance with standards.--An eligible on-site 
        generating facility and net metering system used by an electric 
        consumer shall meet all applicable safety, performance, 
        reliability, and interconnection standards established by the 
        National Electrical Code, the Institute of Electrical and 
        Electronics Engineers, and Underwriters Laboratories.
            ``(8) Requirements.--The Commission, after consideration of 
        all applicable safety, performance, reliability, and 
        interconnection standards established by the National 
        Electrical Code, the Institute of Electrical and Electronics 
        Engineers, and Underwriters Laboratories, and consultation with 
        State regulatory authorities and unregulated electric 
        utilities, and after notice and opportunity for comment, shall 
        promulgate additional control, testing, and interconnection 
        requirements for on-site generating facilities and net metering 
        systems that the Commission determines are necessary to protect 
        public safety and system reliability.''.

   Subtitle C--Long Term Extensions and Expansions for Clean Energy 
                               Incentives

SEC. 321. EXTENSION OF PRODUCTION TAX CREDIT FOR ELECTRICITY PRODUCED 
              FROM CERTAIN RENEWABLE RESOURCES.

    Section 45(d) of the Internal Revenue Code of 1986 (relating to 
qualified facilities) is amended by striking ``2008'' each place it 
appears and inserting ``2015''.

SEC. 322. EXTENSION AND MODIFICATION OF INVESTMENT TAX CREDIT WITH 
              RESPECT TO SOLAR ENERGY PROPERTY AND QUALIFIED FUEL CELL 
              PROPERTY.

    (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii) 
of section 48(a) of the Internal Revenue Code of 1986 are each amended 
by striking ``2008'' and inserting ``2015''.
    (b) Eligible Fuel Cell Property.--Paragraph (1)(E) of section 48(c) 
of the Internal Revenue Code of 1986 is amended by striking ``2007'' 
and inserting ``2014''.
    (c) Credits Allowed Against the Alternative Minimum Tax.--
            (1) In general.--Section 38(c)(4)(B) of the Internal 
        Revenue Code of 1986 (defining specified credits), as amended 
        by this Act, is amended by striking the period at the end of 
        clause (iii) and inserting ``, and,'' and by adding at the end 
        the following new clause:
                            ``(iv) the portion of the investment credit 
                        under section 46(2) as determined under section 
                        48(a)(2)(A)(i).''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2005.
    (d) Solar Investment Credit Allowed for Public Utility Property.--
            (1) In general.--The second sentence of section 48(a)(3) of 
        the Internal Revenue Code of 1986 is amended by inserting 
        ``(other than property described in clause (i) or (ii) of 
        subparagraph (A))'' before ``shall not''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to periods after the date of the enactment of this 
        Act, in taxable years ending after such date, under rules 
        similar to the rules of section 48(m) of the Internal Revenue 
        Code of 1986 (as in effect on the day before the date of the 
        enactment of the Revenue Reconciliation Act of 1990).

SEC. 323. CREDIT FOR WIND ENERGY SYSTEMS.

    (a) Residential.--
            (1) In general.--Section 25D(a) of the Internal Revenue 
        Code of 1986 is amended by striking ``and'' at the end of 
        paragraph (2), by striking the period at the end of paragraph 
        (3) and inserting ``, and'', and by adding at the end the 
        following new paragraph:
            ``(4) 30 percent of the qualified small wind energy 
        property expenditures made by the taxpayer during such year.''.
            (2) Limitation.--Section 25D(b)(1) of the Internal Revenue 
        Code of 1986 is amended by striking ``and'' at the end of 
        subparagraph (B), by striking the period at the end of 
        subparagraph (A) and inserting ``, and'', and by adding at the 
        end the following new subparagraph:
                    ``(D) $500 with respect to each half kilowatt of 
                capacity (not to exceed $2,000) of qualifying wind 
                turbines for which qualified small wind energy property 
                expenditures are made.''.
            (3) Qualified small wind energy property expenditures.--
        Section 25D(d) of the Internal Revenue Code of 1986 is amended 
        by adding at the end the following new paragraph:
            ``(4) Qualified small wind energy property expenditure.--
                    ``(A) In general.--The term `qualified wind energy 
                property expenditure' means an expenditure for property 
                which uses a qualifying wind turbine to generate 
                electricity for use in connection with a dwelling unit 
                located in the United States and used as a residence by 
                the taxpayer.
                    ``(B) Qualifying wind turbine.--The term 
                `qualifying wind turbine' means a wind turbine of 100 
                kilowatts of rated capacity or less which meets the 
                latest performance rating standards published by the 
                American Wind Energy Association and which is used to 
                generate electricity and carries at least a 5-year 
                limited warranty covering defects in design, material, 
                or workmanship, and, for property that is not installed 
                by the taxpayer, at least a 5-year limited warranty 
                covering defects in installation.''.
    (b) Business.--Section 48(a)(3)(A) of the Internal Revenue Code of 
1986 (defining energy property) is amended by striking ``or'' at the 
end of clause (iii), by adding ``or'' at the end of clause (iv), and by 
inserting after clause (iv) the following new clause:
                            ``(v) qualifying wind turbine (as defined 
                        in section 25D(d)(B)),''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 324. EXPANSION OF RESOURCES TO WAVE, CURRENT, TIDAL, AND OCEAN 
              THERMAL ENERGY.

    (a) In General.--Section 45(c)(1) of the Internal Revenue Code of 
1986 (defining qualified energy resources) is amended by striking 
``and'' at the end of subparagraph (G), by striking the period at the 
end of subparagraph (H) and inserting ``, and'', and by adding at the 
end the following new subparagraph:
                    ``(I) wave, current, tidal, and ocean thermal 
                energy.''
    (b) Definition of Resources.--Section 45(c) of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(10) Wave, current, tidal, and ocean thermal energy.--The 
        term `wave, current, tidal, and ocean thermal energy' means 
        electricity produced from any of the following:
                    ``(A) Free flowing ocean water derived from tidal 
                currents, ocean currents, waves, or estuary currents.
                    ``(B) Ocean thermal energy.
                    ``(C) Free flowing water in rivers, lakes, man made 
                channels, or streams.''
    (c) Facilities.--Section 45(d) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph:
            ``(11) Wave, current, tidal, and ocean thermal facility.--
        In the case of a facility using resources described in 
        subparagraph (A), (B), or (C) of subsection (c)(10) to produce 
        electricity, the term `qualified facility' means any facility 
        owned by the taxpayer which is originally placed in service 
        after the date of the enactment of this paragraph and before 
        January 1, 2015, but such term shall not include a facility 
        which includes impoundment structures or a small irrigation 
        power facility.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 325. EXTENSION AND EXPANSION OF CREDIT TO HOLDERS OF CLEAN 
              RENEWABLE ENERGY BONDS.

    (a) In General.--Section 54(m) of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ``2007'' and inserting 
``2014''.
    (b) Annual Volume Cap for Bonds Issued During Extension Period.--
Paragraph (1) of section 54(f) of the Internal Revenue Code of 1986 
(relating to limitation on amount of bonds designated) is amended to 
read as follows:
            ``(1) National limitation.--
                    ``(A) Initial national limitation.--With respect to 
                bonds issued after December 31, 2005, and before 
                January 1, 2008, there is a national clean renewable 
                energy bond limitation of $800,000,000.
                    ``(B) Annual national limitation.--With respect to 
                bonds issued after December 31, 2007, and before 
                January 1, 2014, there is a national clean renewable 
                energy bond limitation for each calendar year of 
                $800,000,000.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 326. EXTENSION OF CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED 
              FUEL CELLS AND STATIONARY MICROTURBINE POWER PLANTS.

    Sections 48(c)(1)(E) and 48(c)(2)(E) of the Internal Revenue Code 
of 1986 (relating to termination) are each amended by striking ``2007'' 
and inserting ``2014''.

SEC. 327. EXTENSION OF BUSINESS SOLAR INVESTMENT TAX CREDIT.

    Sections 48(a)(2)(A)(i)(II) and 48(a)(3)(A)(ii) of the Internal 
Revenue Code of 1986 (relating to termination) are each amended by 
striking ``2008'' and inserting ``2014''.

SEC. 328. EXTENSION OF FULL CREDIT FOR QUALIFIED ELECTRIC VEHICLES.

    (a) In General.--Section 30(e) of the Internal Revenue Code of 1986 
is amended by striking ``2006'' and inserting ``2015''.
    (b) Repeal of Phaseout.--Section 30(b) of the Internal Revenue Code 
of 1986 (relating to limitations) is amended by striking paragraph (2) 
and by redesignating paragraph (3) as paragraph (2).
    (c) Credit Allowable Against Alternative Minimum Tax.--Paragraph 
(2) of section 30(b) of the Internal Revenue Code of 1986, as 
redesignated by subsection (b), is amended to read as follows:
            ``(2) Application with other credits.--The credit allowed 
        by subsection (a) for any taxable year shall not exceed the 
        excess (if any) of--
                    ``(A) the sum of the regular tax for the taxable 
                year plus the tax imposed by section 55, over
                    ``(B) the sum of the credits allowable under 
                subpart A and section 27.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

 Subtitle D--Long-Term Extensions and Expansions for Energy Efficiency 
                      and Conservation Incentives

SEC. 331. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    Section 179D(h) of the Internal Revenue Code of 1986 (relating to 
termination) is amended by striking ``2007'' and inserting ``2014''.

SEC. 332. EXTENSION AND EXPANSION OF NEW ENERGY EFFICIENT HOME CREDIT.

    (a) Extension.--Section 45L(g) of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ``2007'' and inserting 
``2014''.
    (b) Inclusion of 30 Percent Homes.--
            (1) In general.--Section 45L(c) of the Internal Revenue 
        Code of 1986 (relating to energy saving requirements) is 
        amended--
                    (A) by striking ``or'' at the end of paragraph (2);
                    (B) by redesignating paragraph (3) as paragraph 
                (4); and
                    (C) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) certified--
                    ``(A) to have a level of annual heating and cooling 
                energy consumption which is at least 30 percent below 
                the annual level described in paragraph (1), and
                    ``(B) to have building envelope component 
                improvements account for at least 1/3 of such 30 
                percent, or.''.
            (2) Applicable amount of credit.--Section 45L(a)(2) is 
        amended by striking ``paragraph (3)'' and inserting ``paragraph 
        (3) or (4)''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to qualified new energy efficient homes acquired 
        after the date of the enactment of this Act.

SEC. 333. EXTENSION OF NONBUSINESS ENERGY PROPERTY CREDIT.

    Section 25C(g) of the Internal Revenue Code of 1986 (relating to 
termination) is amended by striking ``2007'' and inserting ``2014''.

SEC. 334. EXTENSION AND MODIFICATION OF RESIDENTIAL ENERGY EFFICIENT 
              PROPERTY CREDIT.

    (a) Extension.--Section 25D(g) of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ``2007'' and inserting 
``2014''.
    (b) Modification of Maximum Credit.--Paragraph (1) of section 
25D(b) of the Internal Revenue Code of 1986 (relating to limitations) 
is amended to read as follows:
            ``(1) Maximum credit.--The credit allowed under subsection 
        (a) for any taxable year shall not exceed--
                    ``(A) $1,000 with respect to each half kilowatt of 
                capacity of qualified photovoltaic property for which 
                qualified photovoltaic property expenditures are made,
                    ``(B) $2,000 with respect to any qualified solar 
                water heating property expenditures, and
                    ``(C) $500 with respect to each half kilowatt of 
                capacity of qualified fuel cell property (as defined in 
                section 48(c)(1)) for which qualified fuel cell 
                property expenditures are made.''.
    (c) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Section 25D(b) of the Internal Revenue 
        Code of 1986 (as amended by subsection (b)) is amended by 
        adding at the end the following new paragraph:
            ``(3) Credit allowed against alternative minimum tax.--The 
        credit allowed under subsection (a) for the taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under 
                subpart A of part IV of subchapter A and section 27 for 
                the taxable year.''.
            (2) Conforming amendment.--Subsection (c) of section 25D of 
        such Code is amended to read as follows:
    ``(c) Carryforward of Unused Credit.--If the credit allowable under 
subsection (a) for any taxable year exceeds the limitation imposed by 
subsection (b)(3) for such taxable year, such excess shall be carried 
to the succeeding taxable year and added to the credit allowable under 
subsection (a) for such succeeding taxable year.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 335. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM PROPERTY.

    (a) In general.--Section 48(a)(3)(A) of the Internal Revenue Code 
of 1986 (defining energy property) is by striking ``or'' at the end of 
clause (iii), by inserting ``or'' at the end of clause (iv), and by 
adding at the end the following new clause:
                            ``(v) combined heat and power system 
                        property,'';
    (b) Combined Heat and Power System Property.--Section 48 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(d) Combined Heat and Power System Property.--For purposes of 
subsection (a)(3)(A)(v)--
            ``(1) Combined heat and power system property.--The term 
        `combined heat and power system property' means property 
        comprising a system--
                    ``(A) which uses the same energy source for the 
                simultaneous or sequential generation of electrical 
                power, mechanical shaft power, or both, in combination 
                with the generation of steam or other forms of useful 
                thermal energy (including heating and cooling 
                applications),
                    ``(B) which has an electrical capacity of not more 
                than 15 megawatts or a mechanical energy capacity of 
                not more than 2,000 horsepower or an equivalent 
                combination of electrical and mechanical energy 
                capacities,
                    ``(C) which produces--
                            ``(i) at least 20 percent of its total 
                        useful energy in the form of thermal energy 
                        which is not used to produce electrical or 
                        mechanical power (or combination thereof), and
                            ``(ii) at least 20 percent of its total 
                        useful energy in the form of electrical or 
                        mechanical power (or combination thereof),
                    ``(D) the energy efficiency percentage of which 
                exceeds 60 percent, and
                    ``(E) which is placed in service before January 1, 
                2015.
            ``(2) Special rules.--
                    ``(A) Energy efficiency percentage.--For purposes 
                of this subsection, the energy efficiency percentage of 
                a system is the fraction--
                            ``(i) the numerator of which is the total 
                        useful electrical, thermal, and mechanical 
                        power produced by the system at normal 
                        operating rates, and expected to be consumed in 
                        its normal application, and
                            ``(ii) the denominator of which is the 
                        higher heating value of the primary fuel 
                        sources for the system.
                    ``(B) Determinations made on btu basis.--The energy 
                efficiency percentage and the percentages under 
                paragraph (1)(C) shall be determined on a Btu basis.
                    ``(C) Input and output property not included.--The 
                term `combined heat and power system property' does not 
                include property used to transport the energy source to 
                the facility or to distribute energy produced by the 
                facility.
                    ``(D) Certain exception not to apply.--The first 
                sentence of the matter in subsection (a)(3) which 
                follows subparagraph (D) thereof shall not apply to 
                combined heat and power system property.
            ``(3) Systems using bagasse.--If a system is designed to 
        use bagasse for at least 90 percent of the energy source--
                    ``(A) paragraph (1)(D) shall not apply, but
                    ``(B) the amount of credit determined under 
                subsection (a) with respect to such system shall not 
                exceed the amount which bears the same ratio to such 
                amount of credit (determined without regard to this 
                paragraph) as the energy efficiency percentage of such 
                system bears to 60 percent.
            ``(4) Nonapplication of certain rules.--For purposes of 
        determining if the term `combined heat and power system 
        property' includes technologies which generate electricity or 
        mechanical power using back-pressure steam turbines in place of 
        existing pressure-reducing valves or which make use of waste 
        heat from industrial processes such as by using organic rankin, 
        stirling, or kalina heat engine systems, paragraph (1) shall be 
        applied without regard to subparagraphs (C) and (D) thereof 
        .''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2005, in taxable years ending after 
such date, under rules similar to the rules of section 48(m) of the 
Internal Revenue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 1990).

SEC. 336. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF 
              QUALIFIED ENERGY MANAGEMENT.

    (a) In General.--Section 168(e)(3)(A) of the Internal Revenue Code 
of 1986 (defining 3-year property) is amended by striking ``and'' at 
the end of clause (ii), by striking the period at the end of clause 
(iii) and inserting ``, and,'' and by adding at the end the following 
new clause:
                            ``(iv) any qualified energy management 
                        device.''.
    (b) Definition of Qualified Energy Management Device.--Section 
168(i) of the Internal Revenue Code of 1986 (relating to definitions 
and special rules) is amended by inserting at the end the following new 
paragraph:
            ``(18) Qualified energy management device.--
                    ``(A) In general.--The term `qualified energy 
                management device' means any energy management device 
                which is placed in service before January 1, 2015, by a 
                taxpayer who is a supplier of electric energy or a 
                provider of electric energy services.
                    ``(B) Energy management device.--For purposes of 
                subparagraph (A), the term `energy management device' 
                means any meter or metering device which is used by the 
                taxpayer--
                            ``(i) to measure and record electricity 
                        usage data on a time-differentiated basis in at 
                        least 4 separate time segments per day, and
                            ``(ii) to provide such data on at least a 
                        monthly basis to both consumers and the 
                        taxpayer.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 337. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF 
              QUALIFIED WATER SUBMETERING DEVICES.

    (a) In General.--Section 168(e)(3)(A) of the Internal Revenue Code 
of 1986 (defining 3-year property), as amended by this Act, is amended 
by striking ``and'' at the end of clause (iii), by striking the period 
at the end of clause (iv) and inserting ``, and,'' and by adding at the 
end the following new clause:
                            ``(v) any qualified water submetering 
                        device.''.
    (b) Definition of Qualified Water Submetering Device.--Section 
168(i) of the Internal Revenue Code of 1986 (relating to definitions 
and special rules), as amended by this Act, is amended by inserting at 
the end the following new paragraph:
            ``(19) Qualified water submetering device.--
                    ``(A) In general.--The term `qualified water 
                submetering device' means any water submetering device 
                which is placed in service before January 1, 2015, by a 
                taxpayer who is an eligible resupplier with respect to 
                the unit for which the device is placed in service.
                    ``(B) Water submetering device.--For purposes of 
                this paragraph, the term `water submetering device' 
                means any submetering device which is used by the 
                taxpayer--
                            ``(i) to measure and record water usage 
                        data, and
                            ``(ii) to provide such data on at least a 
                        monthly basis to both consumers and the 
                        taxpayer.
                    ``(C) Eligible resupplier.--For purposes of 
                subparagraph (A), the term `eligible resupplier' means 
                any taxpayer who purchases and installs qualified water 
                submetering devices in every unit in any multi-unit 
                property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

     Subtitle E--Utilizing America's Abundant Coal Supplies Cleanly

SEC. 341. CLEAN ENERGY COAL BONDS.

    (a) In General.--Subpart H of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 54A. CREDIT TO HOLDERS OF CLEAN ENERGY COAL BONDS.

    ``(a) Allowance of Credit.--If a taxpayer holds a clean energy coal 
bond on 1 or more credit allowance dates of the bond occurring during 
any taxable year, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount equal to the sum 
of the credits determined under subsection (b) with respect to such 
dates.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a clean energy coal bond is 25 percent of the annual credit 
        determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any clean energy coal bond is the product of--
                    ``(A) the credit rate determined by the Secretary 
                under paragraph (3) for the day on which such bond was 
                sold, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Determination.--For purposes of paragraph (2), with 
        respect to any clean energy coal bond, the Secretary shall 
        determine daily or cause to be determined daily a credit rate 
        which shall apply to the first day on which there is a binding, 
        written contract for the sale or exchange of the bond. The 
        credit rate for any day is the credit rate which the Secretary 
        or the Secretary's designee estimates will permit the issuance 
        of clean energy coal bonds with a specified maturity or 
        redemption date without discount and without interest cost to 
        the qualified issuer.
            ``(4) Credit allowance date.--For purposes of this section, 
        the term `credit allowance date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term also includes the last day on which the bond is 
        outstanding.
            ``(5) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed or matures.
    ``(c) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for any taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under this part 
        (other than subpart C, this subpart and section 1400N(l)).
    ``(d) Clean Energy Coal Bond.--For purposes of this section--
            ``(1) In general.--The term `clean energy coal bond' means 
        any bond issued as part of an issue if--
                    ``(A) the bond is issued by a qualified issuer 
                pursuant to an allocation by the Secretary to such 
                issuer of a portion of the national clean energy coal 
                bond limitation under subsection (f)(2),
                    ``(B) 95 percent or more of the proceeds from the 
                sale of such issue are to be used for capital 
                expenditures incurred by qualified borrowers for 1 or 
                more qualified projects,
                    ``(C) the qualified issuer designates such bond for 
                purposes of this section and the bond is in registered 
                form, and
                    ``(D) the issue meets the requirements of 
                subsection (h).
            ``(2) Qualified project; special use rules.--
                    ``(A) In general.--The term `qualified project' 
                means a qualifying advanced coal project (as defined in 
                section 48A(c)(1)) placed in service by a qualified 
                borrower.
                    ``(B) Refinancing rules.--For purposes of paragraph 
                (1)(B), a qualified project may be refinanced with 
                proceeds of a clean energy coal bond only if the 
                indebtedness being refinanced (including any obligation 
                directly or indirectly refinanced by such indebtedness) 
                was originally incurred by a qualified borrower after 
                the date of the enactment of this section.
                    ``(C) Reimbursement.--For purposes of paragraph 
                (1)(B), a clean energy coal bond may be issued to 
                reimburse a qualified borrower for amounts paid after 
                the date of the enactment of this section with respect 
                to a qualified project, but only if--
                            ``(i) prior to the payment of the original 
                        expenditure, the qualified borrower declared 
                        its intent to reimburse such expenditure with 
                        the proceeds of a clean energy coal bond,
                            ``(ii) not later than 60 days after payment 
                        of the original expenditure, the qualified 
                        issuer adopts an official intent to reimburse 
                        the original expenditure with such proceeds, 
                        and
                            ``(iii) the reimbursement is made not later 
                        than 18 months after the date the original 
                        expenditure is paid.
                    ``(D) Treatment of changes in use.--For purposes of 
                paragraph (1)(B), the proceeds of an issue shall not be 
                treated as used for a qualified project to the extent 
                that a qualified borrower takes any action within its 
                control which causes such proceeds not to be used for a 
                qualified project. The Secretary shall prescribe 
                regulations specifying remedial actions that may be 
                taken (including conditions to taking such remedial 
                actions) to prevent an action described in the 
                preceding sentence from causing a bond to fail to be a 
                clean energy coal bond.
    ``(e) Maturity Limitations.--
            ``(1) Duration of term.--A bond shall not be treated as a 
        clean energy coal bond if the maturity of such bond exceeds the 
        maximum term determined by the Secretary under paragraph (2) 
        with respect to such bond.
            ``(2) Maximum term.--During each calendar month, the 
        Secretary shall determine the maximum term permitted under this 
        paragraph for bonds issued during the following calendar month. 
        Such maximum term shall be the term which the Secretary 
        estimates will result in the present value of the obligation to 
        repay the principal on the bond being equal to 50 percent of 
        the face amount of such bond. Such present value shall be 
        determined without regard to the requirements of subsection 
        (l)(6) and using as a discount rate the average annual interest 
        rate of tax of tax-exempt obligations having a term of 10 years 
        or more which are issued during the month. If the term as so 
        determined is not a multiple of a whole year, such term shall 
        be rounded to the next highest whole year.
    ``(f) Limitation on Amount of Bonds Designated.--
            ``(1) National limitation.--There is a national clean 
        energy coal bond limitation of $1,000,000,000.
            ``(2) Allocation by secretary.--The Secretary shall 
        allocate the amount described in paragraph (1) among qualified 
        projects in such manner as the Secretary determines 
        appropriate, but shall reserve half of the amount allocated to 
        projects designed and operated to capture carbon dioxide 
        emissions and to isolate such emissions permanently from the 
        atmosphere.
    ``(g) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (c)) and the amount so 
included shall be treated as interest income.
    ``(h) Special Rules Relating to Expenditures.--
            ``(1) In general.--An issue shall be treated as meeting the 
        requirements of this subsection if, as of the date of issuance, 
        the qualified issuer reasonably expects--
                    ``(A) at least 95 percent of the proceeds from the 
                sale of the issue are to be spent for 1 or more 
                qualified projects within the 5-year period beginning 
                on the date of issuance of the clean energy bond,
                    ``(B) a binding commitment with a third party to 
                spend at least 10 percent of the proceeds from the sale 
                of the issue will be incurred within the 6-month period 
                beginning on the date of issuance of the clean energy 
                bond or, in the case of a clean energy bond the 
                proceeds of which are to be loaned to 2 or more 
                qualified borrowers, such binding commitment will be 
                incurred within the 6-month period beginning on the 
                date of the loan of such proceeds to a qualified 
                borrower, and
                    ``(C) such projects will be completed with due 
                diligence and the proceeds from the sale of the issue 
                will be spent with due diligence.
            ``(2) Extension of period.--Upon submission of a request 
        prior to the expiration of the period described in paragraph 
        (1)(A), the Secretary may extend such period if the qualified 
        issuer establishes that the failure to satisfy the 5-year 
        requirement is due to reasonable cause and the related projects 
        will continue to proceed with due diligence.
            ``(3) Failure to spend required amount of bond proceeds 
        within 5 years.--To the extent that less than 95 percent of the 
        proceeds of such issue are expended by the close of the 5-year 
        period beginning on the date of issuance (or if an extension 
        has been obtained under paragraph (2), by the close of the 
        extended period), the qualified issuer shall redeem all of the 
        nonqualified bonds within 90 days after the end of such period. 
        For purposes of this paragraph, the amount of the nonqualified 
        bonds required to be redeemed shall be determined in the same 
        manner as under section 142.
    ``(i) Special Rules Relating to Arbitrage.--A bond which is part of 
an issue shall not be treated as a clean energy coal bond unless, with 
respect to the issue of which the bond is a part, the qualified issuer 
satisfies the arbitrage requirements of section 148 with respect to 
proceeds of the issue.
    ``(j) Cooperative Electric Company; Qualified Energy Tax Credit 
Bond Lender; Governmental Body; Qualified Borrower.--For purposes of 
this section--
            ``(1) Cooperative electric company.--The term `cooperative 
        electric company' means a mutual or cooperative electric 
        company described in section 501(c)(12) or section 
        1381(a)(2)(C), or a not-for-profit electric utility which has 
        received a loan or loan guarantee under the Rural 
        Electrification Act.
            ``(2) Clean energy bond lender.--The term `clean energy 
        bond lender' means a lender which is a cooperative which is 
        owned by, or has outstanding loans to, 100 or more cooperative 
        electric companies and is in existence on February 1, 2002, and 
        shall include any affiliated entity which is controlled by such 
        lender.
            ``(3) Governmental body.--The term `governmental body' 
        means any State, territory, possession of the United States, 
        the District of Columbia, Indian tribal government, and any 
        political subdivision.
            ``(4) Qualified issuer.--The term `qualified issuer' 
        means--
                    ``(A) a clean energy bond lender,
                    ``(B) a cooperative electric company, or
                    ``(C) a governmental body.
            ``(5) Qualified borrower.--The term `qualified borrower' 
        means--
                    ``(A) a mutual or cooperative electric company 
                described in section 501(c)(12) or 1381(a)(2)(C), or
                    ``(B) a governmental body.
    ``(k) Special Rules Relating to Pool Bonds.--No portion of a pooled 
financing bond may be allocable to any loan unless the borrower has 
entered into a written loan commitment for such portion prior to the 
issue date of such issue.
    ``(l) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) Pooled financing bond.--The term `pooled financing 
        bond' shall have the meaning given such term by section 
        149(f)(4)(A).
            ``(3) Partnership; s corporation; and other pass-thru 
        entities.--
                    ``(A) In general.--Under regulations prescribed by 
                the Secretary, in the case of a partnership, trust, S 
                corporation, or other pass-thru entity, rules similar 
                to the rules of section 41(g) shall apply with respect 
                to the credit allowable under subsection (a).
                    ``(B) No basis adjustment.--Rules similar to the 
                rules under section 1397E(i)(2) shall apply.
            ``(4) Bonds held by regulated investment companies.--If any 
        clean energy coal bond is held by a regulated investment 
        company, the credit determined under subsection (a) shall be 
        allowed to shareholders of such company under procedures 
        prescribed by the Secretary.
            ``(5) Treatment for estimated tax purposes.--Solely for 
        purposes of sections 6654 and 6655, the credit allowed by this 
        section to a taxpayer by reason of holding a clean energy coal 
        bond on a credit allowance date shall be treated as if it were 
        a payment of estimated tax made by the taxpayer on such date.
            ``(6) Ratable principal amortization required.--A bond 
        shall not be treated as a clean energy coal bond unless it is 
        part of an issue which provides for an equal amount of 
        principal to be paid by the qualified issuer during each 
        calendar year that the issue is outstanding.
            ``(7) Reporting.--Issuers of clean energy coal bonds shall 
        submit reports similar to the reports required under section 
        149(e).
    ``(m) Termination.--This section shall not apply with respect to 
any bond issued after December 31, 2010.''.
    (b) Reporting.--Subsection (d) of section 6049 of the Internal 
Revenue Code of 1986 (relating to returns regarding payments of 
interest) is amended by adding at the end the following new paragraph:
            ``(9) Reporting of credit on clean energy coal bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54A(g) and such amounts 
                shall be treated as paid on the credit allowance date 
                (as defined in section 54A(b)(4)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A), subsection 
                (b)(4) shall be applied without regard to subparagraphs 
                (A), (H), (I), (J), (K), and (L)(i) of such subsection.
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
    (c) Clerical Amendment.--The table of sections for subpart H of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 54A. Credit to holders of clean energy coal bonds.''.
    (d) Issuance of Regulations.--The Secretary of the Treasury shall 
issues regulations required under section 54A of the Internal Revenue 
Code of 1986 (as added by this section) not later than 120 days after 
the date of the enactment of this Act.
    (e) Effective Date.--The amendments made by this section shall 
apply to bonds issued after December 31, 2005.

SEC. 342. EXTENSION AND EXPANSION OF QUALIFYING ADVANCED COAL PROJECT 
              CREDIT.

    (a) Expanding Aggregate Credits.--Section 48A(d)(3)(A) of the 
Internal Revenue Code of 1986 (relating to aggregate credits) is 
amended by striking ``$1,300,000,000'' and inserting 
``$2,300,000,000''.
    (b) Authorization of Additional Integrated Gasification Combined 
Cycle Projects.--Subparagraph (B) of section 48A(d)(3) of the Internal 
Revenue Code of 1986 (relating to aggregate credits) is amended to read 
as follows:
                    ``(B) Particular projects.--Of the dollar amount in 
                subparagraph (A), the Secretary is authorized to 
                certify--
                            ``(i) $800,000,000 for integrated 
                        gasification combined cycle projects the 
                        application for which is submitted during the 
                        period described in paragraph (2)(A)(i),
                            ``(ii) $500,000,000 for projects which use 
                        other advanced coal-based generation 
                        technologies the application for which is 
                        submitted during the period described in 
                        paragraph (2)(A)(i), and
                            ``(iii) $1,000,000,000 for integrated 
                        gasification combined cycle projects the 
                        application for which is submitted during the 
                        period described in paragraph (2)(A)(ii) and 
                        which are designed and operated to capture 
                        carbon dioxide emissions and isolate such 
                        emissions permanently from the atmosphere.''.
    (c) Application Period for Additional Projects.--Subparagraph (A) 
of section 48A(d)(2) of the Internal Revenue Code of 1986 (relating to 
certification) is amended to read as follows:
                    ``(A) Application period.--Each applicant for 
                certification under this paragraph shall submit an 
                application meeting the requirements of subparagraph 
                (B). An applicant may only submit an application--
                            ``(i) for an allocation from the dollar 
                        amount specified in clause (i) or (ii) of 
                        paragraph (3)(A) during the 3-year period 
                        beginning on the date the Secretary establishes 
                        the program under paragraph (1), and
                            ``(ii) for an allocation from the dollar 
                        amount specified in paragraph (3)(A)(iii) 
                        during the 3-year period beginning at the 
                        termination of the period described in clause 
                        (i).''.
    (d) Modification of Qualifying Advanced Coal Project Credit.--
Subparagraph (C) of section 48A(e)(1) of the Internal Revenue Code of 
1986 is amended by inserting ``(300 megawatts in the case of projects 
using subbituminous or lignite as a primary feedstock)'' after ``400 
megawatts''.
    (e) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 1307 of the 
Energy Policy Act of 2005.

SEC. 343. EXPANSION OF QUALIFYING GASIFICATION PROJECT CREDIT.

    (a) Increasing Credit Limit.--Section 48B(d)(1) of the Internal 
Revenue Code of 1986 is amended by striking ``$350,000,000'' and 
inserting ``$1,000,000,000''.
    (b) Expansion.--Section 48B(d)(3) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``and '' at the end of subparagraph (E),
            (2) by redesignating subparagraph (F) as subparagraph (G), 
        and
            (3) by inserting after subparagraph (E) the following new 
        subparagraph:
                    ``(F) the proposed project is designed and operated 
                to capture carbon dioxide emissions and isolate such 
                emissions permanently from the atmosphere, and''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 1307 of the 
Energy Policy Act of 2005.

SEC. 344. COAL-TO-LIQUID AND BIOMASS TRANSPORTATION FUELS.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Biomass.--The term ``biomass'' has the meaning given 
        the term in section 203(b) of the Energy Policy Act of 2005 (42 
        U.S.C. 15852(b)).
            (3) Coal-to-liquid.--The term ``coal-to-liquid'' means--
                    (A) with respect to a process or technology, the 
                use of coal resources of the United States to produce a 
                liquid transportation fuel, including diesel and jet 
                fuels; and
                    (B) with respect to a facility, the use at the 
                facility of a process or technology described in 
                subparagraph (A).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Research Program.--
            (1) In general.--The Secretary, in coordination with the 
        Administrator and the Secretary of Defense and in consultation 
        with the States, shall periodically conduct assessments of the 
        costs and benefits of coal-to-liquid and biomass programs in 
        the United States, including an analysis of--
                    (A) technology relating to those programs;
                    (B) the potential effects of those programs on--
                            (i) air and water quality;
                            (ii) the public health;
                            (iii) greenhouse gas emissions and the 
                        permanent sequestration of those emissions; and
                            (iv) the economy;
                    (C) levels of investment required to make 
                commercial coal-to-liquid and biomass production 
                economical; and
                    (D) the national security impacts of various levels 
                of coal-to-liquid and biomass production during the 20-
                year period beginning on the date on which the initial 
                assessment is conducted.
            (2) Reports.--Not later than 1 year after the date of 
        enactment of this Act, and every 2 years thereafter, the 
        Secretary shall submit to Congress a report describing the 
        results of the applicable analysis under paragraph (1), 
        including recommendations for the appropriate level of 
        development of coal-to-liquid and biomass programs, and 
        programs using any other appropriate resources, to promote a 
        reduction in greenhouse gas emissions from the quantity of 
        those emissions that would have occurred using only petroleum-
        based fuels.
            (3) Advisory committee.--The Secretary shall establish an 
        advisory committee to advise the Secretary in carrying out 
        analyses and reports under this subsection.
            (4) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection $100,000,000, to remain available until expended.
    (c) Refinery Diversification Grant Program.--
            (1) Establishment.--Not later than 1 year after the date on 
        which the initial report under subsection (b)(2) is submitted, 
        the Secretary, in consultation with the Administrator, may 
        establish a program under which the Secretary may provide not 
        more than 6 competitive grants to support the commercial 
        deployment in the United States of coal-to-liquid refineries.
            (2) Eligible projects.--A project shall be eligible to 
        receive a grant under this subsection if, as determined by the 
        Secretary--
                    (A) the purpose of the project is to deploy in the 
                United States a coal-to-liquid refinery;
                    (B) the project supports the diversification of 
                coal-producing regions and coal ranks throughout the 
                United States;
                    (C) the developer of the project would be 
                financially viable without receiving a grant under this 
                subsection;
                    (D) the project site has been identified;
                    (E) a preliminary feasibility study of the project 
                has been completed;
                    (F) a long-term source of coal has been identified 
                and secured for the project; and
                    (G) the refinery that is the subject of the project 
                will--
                            (i) have a production capacity of at least 
                        12,000 barrels per day; and
                            (ii) be designed and operated to capture 
                        carbon dioxide emissions and permanently 
                        isolate those emissions from the atmosphere, 
                        including by the integration of enhanced oil 
                        recovery or enhanced natural gas recovery.
            (3) Use of funds.--A grant provided under this subsection 
        shall be used to pay the costs associated with deploying in the 
        United States a coal-to-liquid refinery, including the costs of 
        preliminary engineering and engineering design specifications 
        for the refinery.
            (4) Maximum amount.--The amount of a grant provided under 
        this subsection shall not exceed $50,000,000.
            (5) Reports.--Not later than 1 year after the date of 
        enactment of this Act, and annually thereafter until the date 
        on which funds made available to carry out this subsection are 
        expended, the Secretary shall submit to Congress a report 
        describing the status of each project that received a grant 
        under this subsection during the preceding calendar year.
            (6) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection $300,000,000, to remain available until expended.

    TITLE IV--REAL GOVERNMENT LEADERSHIP FOR CLEAN AND SECURE ENERGY

   Subtitle A--Federal Biofuels and Efficient Vehicle Use Leadership

SEC. 401. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL 
              PURCHASING REQUIREMENT.

    (a) In General.--Title III of the Energy Policy Act of 1992 is 
amended by striking section 306 (42 U.S.C. 13215) and inserting the 
following:

``SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL 
              PURCHASING REQUIREMENT.

    ``(a) Ethanol-Blended Gasoline.--The head of each Federal agency 
shall ensure that, in areas in which ethanol-blended gasoline is 
reasonably available at a generally competitive price, the Federal 
agency purchases ethanol-blended gasoline containing at least 10 
percent ethanol, rather than gasoline that is not ethanol-blended, for 
use in vehicles used by the agency that use gasoline.
    ``(b) Biodiesel.--
            ``(1) Definition of biodiesel.--In this subsection, the 
        term `biodiesel' has the meaning given the term in section 
        312(f).
            ``(2) Requirement.--The head of each Federal agency shall 
        ensure that the Federal agency purchases, for use in fueling 
        fleet vehicles that use diesel fuel used by the Federal agency 
        at the location at which fleet vehicles of the Federal agency 
        are centrally fueled, in areas in which the biodiesel-blended 
        diesel fuel described in subparagraphs (A) and (B) is available 
        at a generally competitive price--
                    ``(A) as of the date that is 5 years after the date 
                of enactment of this paragraph, biodiesel-blended 
                diesel fuel that contains at least 20 percent 
                biodiesel, rather than diesel fuel that is not 
                biodiesel-blended; and
                    ``(B) as of the date that is 10 years after the 
                date of enactment of this paragraph, biodiesel-blended 
                diesel fuel that contains at least 80 percent 
                biodiesel, rather than diesel fuel that is not 
                biodiesel-blended.
            ``(3) Requirement of federal law.--This subsection shall 
        not be considered a requirement of Federal law for the purposes 
        of section 312.
    ``(c) Exemption.--This section does not apply to fuel used in 
vehicles excluded from the definition of `fleet' by subparagraphs (A) 
through (H) of section 301(9).''.

SEC. 402. USE OF THE EXISTING FLEXIBLE FUEL VEHICLE FLEET OF THE 
              FEDERAL GOVERNMENT.

    (a) Use of Alternative Fuels by Flexible Fuel Vehicles.--Section 
400AA(a)(3) of the Energy Policy and Conservation Act (42 U.S.C. 
6374(a)(3)) is amended by striking subparagraph (E) and inserting the 
following:
                    ``(E)(i) Flexible fuel vehicles acquired pursuant 
                to this section shall be operated on alternative fuels 
                unless the Secretary determines that an agency 
                qualifies for a waiver of that requirement for vehicles 
                operated by the agency in a particular geographic area 
                in which--
                            ``(I) the alternative fuel otherwise 
                        required to be used in the vehicle is not 
                        reasonably available to retail purchasers of 
                        the fuel, as certified to the Secretary by the 
                        head of the agency; or
                            ``(II) the cost of the alternative fuel 
                        otherwise required to be used in the vehicle is 
                        unreasonably more expensive compared to 
                        gasoline, as certified to the Secretary by the 
                        head of the agency.
                    ``(ii) The Secretary shall monitor compliance with 
                this subparagraph by all agency fleets and shall submit 
                annually to Congress a report that--
                            ``(I) describes the extent to which the 
                        requirements of this subparagraph are being 
                        achieved; and
                            ``(II) includes information on annual 
                        reductions achieved from the use of petroleum-
                        based fuels and the problems, if any, 
                        encountered in acquiring alternative fuels.''.
    (b) Alternative Compliance and Flexibility.--The Energy Policy Act 
of 1992 is amended by striking section 514 (42 U.S.C. 13263a) and 
inserting the following:

``SEC. 514. ALTERNATIVE COMPLIANCE.

    ``(a) Application for Waiver.--Any head of a Federal agency 
described in section 303(b)(3), any covered person subject to section 
501, and any State subject to section 507(o) may petition the Secretary 
for a waiver of the applicable requirements of section 303, 501, or 
507(o).
    ``(b) Grant of Waiver.--The Secretary may grant a waiver of the 
requirements of section 303, 501, or 507(o) upon a showing that the 
fleet owned, operated, leased, or otherwise controlled by the Federal 
agency, State, or covered person--
            ``(1) will achieve a reduction in its annual consumption of 
        petroleum fuels equal to--
                    ``(A) the reduction in consumption of petroleum 
                that would result from 100 percent compliance with fuel 
                use requirements in section 303 or 501, as appropriate; 
                or
                    ``(B) for entities covered under section 507(o), a 
                reduction equal to the covered entity's consumption of 
                alternative fuels if all its alternative fuel vehicles 
                given credit under section 508 were to use alternative 
                fuel 100 percent of the time; and
            ``(2) is in compliance with all applicable vehicle emission 
        standards established by the Administrator under the Clean Air 
        Act (42 U.S.C. 7401 et seq.).
    ``(c) Revocation of Waiver.--The Secretary shall revoke any waiver 
granted under this section if the Federal agency, State, or covered 
person fails to comply with subsection (b).''.

SEC. 403. STANDARDS FOR EXECUTIVE AGENCY AUTOMOBILES.

    Section 32917 of title 49, United States Code, is amended to read 
as follows:
``Sec. 32917. Standards for executive agency automobiles
    ``(a) Definitions.--In this section:
            ``(1) Automobile.--The term `automobile' does not include 
        any vehicle designed for combat-related missions, law 
        enforcement work, or emergency rescue work.
            ``(2) Executive agency.--The term `Executive agency' has 
        the meaning given that term in section 105 of title 5.
            ``(3) New automobile.--The term `new automobile', with 
        respect to the fleet of automobiles of an executive agency, 
        means an automobile that is leased for at least 60 consecutive 
        days or bought, by or for the Executive agency, after September 
        30, 2004.
    ``(b) Baseline Average Fuel Economy.--
            ``(1) In general.--In accordance with guidance issued under 
        subsection (e), the head of each Executive agency shall 
        calculate, for all automobiles in the Executive agency's fleet 
        of automobiles that were leased or bought as new vehicles in 
        fiscal year 2004, the average fuel economy for the automobiles.
            ``(2) Baseline.--For purposes of this section, the average 
        fuel economy as calculated in paragraph (1) shall be the 
        baseline average fuel economy for the Executive agency's fleet 
        of automobiles.
    ``(c) Increase of Average Fuel Economy.--The head of an Executive 
agency shall manage the procurement of automobiles for that Executive 
agency so that not later than September 30, 2008, the average fuel 
economy of the new automobiles in the Executive agency's fleet of 
automobiles is not less than 3 miles per gallon higher than the 
baseline average fuel economy determined under subsection (b) for that 
fleet.
    ``(d) Fuel Efficiency.--The head of an Executive agency shall 
ensure that each new automobile procured by the Executive agency is as 
fuel efficient as practicable.
    ``(e) Calculation of Average Fuel Economy.--The Secretary of 
Transportation shall issue guidance to carry out this section, 
including guidance for the calculation of average fuel economy.''.

SEC. 404. FEDERAL FLEET CONSERVATION REQUIREMENTS.

    (a) In General.--Part J of title IV of the Energy Policy and 
Conservation Act (42 U.S.C. 6374 et seq.) is amended by adding at the 
end the following:

``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.

    ``(a) Mandatory Reduction in Petroleum Consumption.--
            ``(1) In general.--The Secretary shall issue regulations 
        for Federal fleets subject to section 400AA requiring that each 
        Federal agency--
                    ``(A) not later than October 1, 2012, achieve at 
                least a 20 percent reduction in petroleum consumption, 
                as calculated from the baseline established by the 
                Secretary for fiscal year 1999; and
                    ``(B) not later than October 1, 2020, achieve at 
                least a 40 percent reduction in petroleum consumption, 
                as calculated from the baseline established by the 
                Secretary for fiscal year 1999.
            ``(2) Plan.--
                    ``(A) Requirement.--The regulations shall require 
                each Federal agency to develop a plan to meet the 
                required petroleum reduction level.
                    ``(B) Measures.--The plan may allow an agency to 
                meet the required petroleum reduction level through--
                            ``(i) the use of alternative fuels;
                            ``(ii) the acquisition of vehicles with 
                        higher fuel economy, including hybrid vehicles;
                            ``(iii) the substitution of cars for light 
                        trucks;
                            ``(iv) an increase in vehicle load factors;
                            ``(v) a decrease in vehicle miles traveled;
                            ``(vi) a decrease in fleet size; and
                            ``(vii) other measures.
                    ``(C) Replacement tires.--The regulations shall 
                include a requirement that each Federal agency purchase 
                energy-efficient replacement tires for the respective 
                fleet vehicles of the agency.
    ``(b) Federal Employee Incentive Programs for Reducing Petroleum 
Consumption.--
            ``(1) In general.--Each Federal agency shall actively 
        promote incentive programs that encourage Federal employees and 
        contractors to reduce petroleum through the use of practices 
        such as--
                    ``(A) telecommuting;
                    ``(B) public transit;
                    ``(C) carpooling; and
                    ``(D) bicycling.
            ``(2) Monitoring and support for incentive programs.--The 
        Administrator of the General Services Administration, the 
        Director of the Office of Personnel Management, and the 
        Secretary of the Department of Energy shall monitor and provide 
        appropriate support to agency programs described in paragraph 
        (1).''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by 
adding at the end of the items relating to part J of title III the 
following:

``Sec. 400FF. Federal fleet conservation requirements''

       Subtitle B--Federal Clean and Efficient Energy Leadership

SEC. 411. FEDERAL LEADERSHIP ON CLEAN ENERGY PURCHASING.

    Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is 
amended by striking subsection (a) and inserting the following:
    ``(a) Requirement.--The President, acting through the Secretary, 
shall ensure that, of the total quantity of electric energy the Federal 
Government consumes during any fiscal year, the following amounts shall 
be renewable energy:
            ``(1) Not less than 5 percent in each of fiscal years 2008 
        and 2009.
            ``(2) Not less than 7.5 percent in each of fiscal years 
        2010 through 2012.
            ``(3) Not less than 10 percent in fiscal year 2013 and each 
        fiscal year thereafter.''.

SEC. 412. CLEAN AND SECURE BACKUP POWER AT FEDERAL FACILITIES.

    Not later than 1 year after the date of enactment of this Act, the 
Director of the Office of Management and Budget, the Secretary of 
Defense, and the Secretary of Homeland Security shall jointly 
promulgate regulations establishing requirements applicable to all 
Federal agency procurement actions, and to any Federal funds being 
used, for the purpose of buying or replacing emergency backup power or 
off-grid energy or electricity sources, with a strong procurement 
preference for clean emergency backup power or distributed or off-grid 
electricity generation or energy storage units that--
            (1) emit no or very low air emissions during use or the 
        energy storage process, such as--
                    (A) fuel cells;
                    (B) integrated solar panels and battery systems; 
                and
                    (C) pumped hydroelectric storage; and
            (2) to the extent practicable, do not depend primarily on 
        fossil fuel or fossil fuel delivery systems.

SEC. 413. ELIMINATING VAMPIRE ELECTRONIC DEVICES.

    (a) Definitions.--In this section:
            (1) Agency.--
                    (A) In general.--The term ``Agency'' has the 
                meaning given the term ``Executive agency'' in section 
                105 of title 5, United States Code.
                    (B) Inclusions.--The term ``Agency'' includes 
                military departments, as the term is defined in section 
                102 of title 5, United States Code.
            (2) Eligible product.--The term ``eligible product'' means 
        a commercially available, off-the-shelf product that--
                    (A)(i) uses external standby power devices; or
                    (ii) contains an internal standby power function; 
                and
                    (B) is included on the list compiled under 
                subsection (d).
    (b) Federal Purchasing Requirement.--Subject to subsection (c), if 
an Agency purchases an eligible product, the Agency shall purchase--
            (1) an eligible product that uses not more than 1 watt in 
        the standby power consuming mode of the eligible product; or
            (2) if an eligible product described in paragraph (1) is 
        not available, the eligible product with the lowest available 
        standby power wattage in the standby power consuming mode of 
        the eligible product.
    (c) Limitation.--The requirements of subsection (b) shall apply to 
a purchase by an Agency only if--
            (1) the lower-wattage eligible product is--
                    (A) lifecycle cost-effective; and
                    (B) practicable; and
            (2) the utility and performance of the eligible product is 
        not compromised by the lower wattage requirement.
    (d) Eligible Products.--
            (1) In general.--The Secretary of Energy, in consultation 
        with the Secretary of Defense and the Administrator of General 
        Services, shall compile a list of cost-effective eligible 
        products that shall be subject to the purchasing requirements 
        of subsection (b).
            (2) Energy star program.--The Administrator of the 
        Environmental Protection Agency shall incorporate the list of 
        eligible products into the Energy Star program established by 
        section 324A(a) of the Energy Policy and Conservation Act (42 
        U.S.C. 6294a(a)).

SEC. 414. PROMOTING FEDERAL LEADERSHIP IN ENERGY MANAGEMENT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Director of the Office of Federal Procurement Policy 
and the Under Secretary of Defense for Acquisition, Technology, and 
Logistics shall, after consultation with private sector voluntary 
standard setting organizations focused on increasing energy and 
environmental performance, jointly promulgate revisions to the 
applicable acquisition regulations--
            (1) to direct any Federal procurement executives involved 
        in the acquisition, construction, or major renovation 
        (including contracting for the construction or major 
        renovation) of any building--
                    (A) to employ integrated design principles;
                    (B) to improve site selection for environmental and 
                community benefits;
                    (C) to protect and conserve water;
                    (D) to enhance indoor environmental quality; and
                    (E) to reduce environmental impacts of materials 
                and waste flows;
            (2) to direct Federal procurement executives involved in 
        leasing buildings, to give preference to the lease of 
        buildings--
                    (A) that are energy efficient; and
                    (B) to which contemporary high performance and 
                sustainable design principles have been applied during 
                construction or renovation; and
            (3) that shall be effective on promulgation of the 
        regulations.
    (b) Guidance.--Not later than 90 days after promulgation of the 
regulations under subsection (a), the Director and the Under Secretary 
shall issue guidance to each Federal procurement executive providing 
direction and instructions to renegotiate existing buildings and 
facilities leases to obtain improvements in accordance with this 
section.

SEC. 415. RETENTION OF SAVINGS FROM ENERGY SAVINGS PERFORMANCE 
              CONTRACTS.

    (a) Retention of Savings.--Section 546(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8256(c)) is amended by striking 
paragraph (5).
    (b) Financing Flexibility.--Section 801(a)(2) of the National 
Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)) is amended by 
adding at the end the following:
                    ``(E) Separate contracts.--In carrying out a 
                contract under this title, a Federal agency may--
                            ``(i) enter into a separate contract for 
                        energy services and conservation measures under 
                        the contract; and
                            ``(ii) provide all or part of the financing 
                        necessary to carry out the contract.''.
    (c) Definition of Energy Savings.--Section 804(2) of the National 
Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is amended--
            (1) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively, and indenting 
        appropriately;
            (2) by striking ``means a reduction'' and inserting 
        ``means''--
                    ``(A) a reduction'';
            (3) by striking the period at the end and inserting a 
        semicolon; and
            (4) by adding at the end the following:
                    ``(B) the increased efficient use of an existing 
                energy source by cogeneration or heat recovery and 
                installation of renewable energy systems;
                    ``(C) the sale or transfer of electrical or thermal 
                energy generated on-site, but in excess of Federal 
                needs, to utilities or non-Federal energy users; and
                    ``(D) the increased efficient use of existing water 
                sources in interior or exterior applications.''.
    (d) Energy and Cost Savings in Nonbuilding Applications.--
            (1) Definitions.--In this subsection:
                    (A) Nonbuilding application.--The term 
                ``nonbuilding application'' means--
                            (i) any class of vehicles, devices, or 
                        equipment that is transportable under the power 
                        of the applicable vehicle, device, or equipment 
                        by land, sea, or air and that consumes energy 
                        from any fuel source for the purpose of--
                                    (I) that transportation; or
                                    (II) maintaining a controlled 
                                environment within the vehicle, device, 
                                or equipment; and
                            (ii) any federally-owned equipment used to 
                        generate electricity or transport water.
                    (B) Secondary savings.--
                            (i) In general.--The term ``secondary 
                        savings'' means additional energy or cost 
                        savings that are a direct consequence of the 
                        energy savings that result from the energy 
                        efficiency improvements that were financed and 
                        implemented pursuant to an energy savings 
                        performance contract (as defined in section 
                        423(a)).
                            (ii) Inclusions.--The term ``secondary 
                        savings'' includes--
                                    (I) energy and cost savings that 
                                result from a reduction in the need for 
                                fuel delivery and logistical support;
                                    (II) personnel cost savings and 
                                environmental benefits; and
                                    (III) in the case of electric 
                                generation equipment, the benefits of 
                                increased efficiency in the production 
                                of electricity, including revenues 
                                received by the Federal Government from 
                                the sale of electricity produced.
                    (C) Secretary.--The term ``Secretary'' means the 
                Secretary of Energy.
            (2) Study.--
                    (A) In general.--As soon as practicable after the 
                date of enactment of this Act, the Secretary and the 
                Secretary of Defense shall jointly conduct a study of 
                the potential for the use of energy savings performance 
                contracts to reduce energy consumption and provide 
                energy and cost savings in nonbuilding applications.
                    (B) Requirements.--The study under this subsection 
                shall include--
                            (i) an estimate of the potential energy and 
                        cost savings to the Federal Government, 
                        including secondary savings and benefits, from 
                        increased efficiency in nonbuilding 
                        applications;
                            (ii) an assessment of the feasibility of 
                        extending the use of energy savings performance 
                        contracts to nonbuilding applications, 
                        including an identification of any regulatory 
                        or statutory barriers to such use; and
                            (iii) such recommendations as the Secretary 
                        and the Secretary of Defense determine to be 
                        appropriate.
            (3) Report.--On completion of the study under paragraph 
        (2), the Secretary and the Secretary of Defense shall submit to 
        the President and the appropriate committees of Congress a 
        report that describes--
                    (A) the results of the study; and

    Subtitle C--State, Tribal, and Local Clean and Efficient Energy 
                               Leadership

SEC. 421. FREEDOM FROM FOSSIL FUELS (F4) BONDS.

    (a) In General.--Subpart H of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to credits against tax), 
as amended by this Act, is amended by adding at the end the following 
new section:

``SEC. 54B. CREDIT TO HOLDERS OF FREEDOM FROM FOSSIL FUELS (F4) BONDS.

    ``(a) Allowance of Credit.--If a taxpayer holds a Freedom from 
Fossil Fuels (F4) bond on 1 or more credit allowance dates of the bond 
occurring during any taxable year, there shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of the credits determined under subsection (b) with 
respect to such dates.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a Freedom from Fossil Fuels (F4) bond is 25 percent of the 
        annual credit determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any Freedom from Fossil Fuels (F4) bond is the 
        product of--
                    ``(A) the credit rate determined by the Secretary 
                under paragraph (3) for the day on which such bond was 
                sold, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Determination.--For purposes of paragraph (2), with 
        respect to any Freedom from Fossil Fuels (F4) bond, the 
        Secretary shall determine daily or cause to be determined daily 
        a credit rate which shall apply to the first day on which there 
        is a binding, written contract for the sale or exchange of the 
        bond. The credit rate for any day is the credit rate which the 
        Secretary or the Secretary's designee estimates will permit the 
        issuance of Freedom from Fossil Fuels (F4) bonds with a 
        specified maturity or redemption date without discount and 
        without interest cost to the issuing governmental body.
            ``(4) Credit allowance date.--For purposes of this section, 
        the term `credit allowance date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term also includes the last day on which the bond is 
        outstanding.
            ``(5) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed or matures.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C, section 1400N(l), and this 
                subpart).
            ``(2) Carryforward of unused credit.--If the credit 
        allowable under subsection (a) exceeds the limitation imposed 
        by paragraph (1) for such taxable year, such excess shall be 
        carried to each of the 5 taxable years following the unused 
        credit year and added to the credit allowable under subsection 
        (a) for each such taxable year, subject to the application of 
        paragraph (1) to such taxable year.
    ``(d) Freedom From Fossil Fuels (F4) Bond.--For purposes of this 
section--
            ``(1) In general.--The term `Freedom from Fossil Fuels (F4) 
        bond' means any bond issued as part of an issue if--
                    ``(A) the bond is issued by a governmental body 
                pursuant to an allocation by the Freedom from Fossil 
                Fuels (F4) Bonds Board to such issuer of a portion of 
                the Freedom from Fossil Fuels (F4) bond limitation 
                under subsection (f)(2),
                    ``(B) 95 percent or more of the proceeds from the 
                sale of such issue are to be used for capital 
                expenditures incurred for 1 or more qualified fossil 
                fuel use reduction projects,
                    ``(C) the issuer designates such bond for purposes 
                of this section and the bond is in registered form,
                    ``(D) such bond satisfies public approval 
                requirements similar to the requirements of section 
                147(f)(2),
                    ``(E) except as provided in paragraph (4)(B), the 
                payment of the principal of such issue is secured by 
                taxes of general applicability imposed by a general 
                purpose governmental unit, and
                    ``(F) the issue meets the requirements of 
                subsection (h).
            ``(2) Qualified fossil fuel use reduction project.--
                    ``(A) In general.--The term `a qualified fossil 
                fuel use reduction project' means any project that will 
                reduce oil and fossil fuel consumption, including--
                            ``(i) transit oriented development,
                            ``(ii) public transit infrastructure,
                            ``(iii) alternative fuels vehicles and 
                        infrastructure,
                            ``(iv) nonpetroleum vehicle manufacturing 
                        facilities,
                            ``(v) energy efficiency and energy demand 
                        reduction,
                            ``(vi) greenhouse gas reduction programs 
                        and systems, and
                            ``(vii) telecommuting programs.
                    ``(B) Qualified property.--The term `qualified 
                property' means real property--
                            ``(i) which is, or is to be, owned by--
                                    ``(I) a governmental body, or
                                    ``(II) an organization described in 
                                section 501(c)(3) and exempt from 
                                taxation under section 501(a) and which 
                                has as one if its purposes 
                                environmental preservation, and
                            ``(ii) which is reasonably anticipated to 
                        be available for use by members of the general 
                        public, unless such use would change the 
                        character of the property and be contrary to 
                        the qualified use of the property.
                    ``(C) Safe harbor for management contracts.--For 
                purposes of subparagraph (B), property shall not be 
                treated as qualified property if any rights or benefits 
                of such property inure to a private person other than 
                rights or benefits under a management contract or 
                similar type of operating agreement to which rules 
                similar to the rules applicable to tax-exempt bonds 
                apply.
                    ``(D) Limit on disposition of property.--Any 
                disposition of any interest in property acquired or 
                improved in connection with a qualified fossil fuel use 
                reduction project described in this paragraph (except a 
                project described in subparagraph (A)(v)) shall contain 
                an option (recorded pursuant to applicable State or 
                local law) to purchase such property for an amount 
                equal to the original acquisition price of such 
                property for any interested organizations described in 
                subparagraph (B)(i)(II) if such organization purchases 
                such property subject to a restrictive covenant 
                requiring a continued qualified use of such property.
                    ``(E) Qualified use.--The term `qualified use' 
                means, with respect to property, a use which is 
                consistent with the purpose of the qualified fossil 
                fuel use reduction project related to such property.
            ``(3) Special use rules.--
                    ``(A) Refinancing rules.--For purposes of paragraph 
                (1)(B), a qualified fossil fuel use reduction project 
                may be refinanced with proceeds of a Freedom from 
                Fossil Fuels (F4) bond only if the indebtedness being 
                refinanced (including any obligation directly or 
                indirectly refinanced by such indebtedness) was 
                originally incurred by the borrower after the date of 
                the enactment of this section.
                    ``(B) Reimbursement.--For purposes of paragraph 
                (1)(B), a Freedom from Fossil Fuels (F4) bond may be 
                issued to reimburse a borrower for amounts paid after 
                the date of the enactment of this section with respect 
                to a qualified fossil fuel use reduction project, but 
                only if--
                            ``(i) prior to the payment of the original 
                        expenditure, the borrower declared its intent 
                        to reimburse such expenditure with the proceeds 
                        of a Freedom from Fossil Fuels (F4) bond,
                            ``(ii) not later than 60 days after payment 
                        of the original expenditure, the issuer adopts 
                        an official intent to reimburse the original 
                        expenditure with such proceeds, and
                            ``(iii) the reimbursement is made not later 
                        than 18 months after the date the original 
                        expenditure is paid.
                    ``(C) Treatment of changes in use.--For purposes of 
                paragraph (1)(B), the proceeds of an issue shall not be 
                treated as used for a qualified fossil fuel use 
                reduction project to the extent that a borrower takes 
                any action within its control which causes such 
                proceeds not to be used for a qualified fossil fuel use 
                reduction project. The Secretary shall prescribe 
                regulations specifying remedial actions that may be 
                taken (including conditions to taking such remedial 
                actions) to prevent an action described in the 
                preceding sentence from causing a bond to fail to be a 
                Freedom from Fossil Fuels (F4) bond.
            ``(4) Special rules for projects described in paragraph 
        (2)(a)(v).--
                    ``(A) Limit on use of proceeds for project.--This 
                subsection shall not apply to any bond issued as part 
                of an issue if an amount of the proceeds from such 
                issue are used for a qualified fossil fuel use 
                reduction project described in paragraph (2)(A)(v) and 
                involving public infrastructure in excess of an amount 
                equal to 5 percent of the total amount of such proceeds 
                used for all projects described in such paragraph 
                (2)(A)(v).
                    ``(B) Private use and repayment of proceeds.--In 
                the case of proceeds of an issue which are used for a 
                qualified fossil fuel use reduction project described 
                in paragraph (2)(A)(v), the issue of which such bonds 
                are a part shall not fail to meet the requirements of 
                this subsection solely because the proceeds of a 
                disposition of any interest in such property are used 
                to redeem such bonds as long as the purchaser of such 
                property makes an irrevocable election not to claim any 
                deduction with respect to such project under section 
                198.
    ``(e) Maturity Limitations.--
            ``(1) Duration of term.--A bond shall not be treated as a 
        Freedom from Fossil Fuels (F4) bond if the maturity of such 
        bond exceeds the maximum term determined by the Secretary under 
        paragraph (2) with respect to such bond.
            ``(2) Maximum term.--During each calendar month, the 
        Secretary shall determine the maximum term permitted under this 
        paragraph for bonds issued during the following calendar month. 
        Such maximum term shall be the term which the Secretary 
        estimates will result in the present value of the obligation to 
        repay the principal on the bond being equal to 50 percent of 
        the face amount of such bond. Such present value shall be 
        determined without regard to the requirements of subsection 
        (l)(6) and using as a discount rate the average annual interest 
        rate of tax of tax-exempt obligations having a term of 10 years 
        or more which are issued during the month. If the term as so 
        determined is not a multiple of a whole year, such term shall 
        be rounded to the next highest whole year.
    ``(f) Limitation on Amount of Bonds Designated.--
            ``(1) In general.--There is a Freedom from Fossil Fuels 
        (F4) bond limitation for each calendar year equal to--
                    ``(A) $3,000,000,000 for each of years 2007 through 
                2014, and
                    ``(B) except as provided in paragraph (3), zero 
                after 2014.
            ``(2) Allocation of limitation among governmental bodies.--
                    ``(A) In general.--The limitation amount to be 
                allocated under paragraph (1) for any calendar year 
                shall be allocated among governmental bodies with an 
                approved application on a competitive basis by the 
                Freedom from Fossil Fuels (F4) Bonds Board (referred to 
                in this subsection as the `Board') established under 
                section 161 of the Clean Energy Development for a 
                Growing Economy Act of 2006.
                    ``(B) Approved application.--For purposes of 
                subparagraph (A), the term `approved application' means 
                an application which is approved by the Board, and 
                which includes such information as the Board requires.
                    ``(C) Allocation to each governmental body.--The 
                Board shall, in accordance with the criteria for 
                approval of applications, allocate amounts in any 
                calendar year to at least 1 approved application from 
                each governmental body which submits such application.
            ``(3) Carryover of unused limitation.--If for any calendar 
        year--
                    ``(A) the limitation amount under paragraph (1), 
                exceeds
                    ``(B) the aggregate limitation amount allocated to 
                governmental bodies under this section,
        the limitation amount under paragraph (1) for the following 
        calendar year shall be increased by the amount of such excess. 
        No limitation amount shall be carried forward under this 
        paragraph more than 3 years.
    ``(g) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (c)) and the amount so 
included shall be treated as interest income.
    ``(h) Special Rules Relating to Expenditures.--
            ``(1) In general.--An issue shall be treated as meeting the 
        requirements of this subsection if, as of the date of issuance, 
        the issuer reasonably expects--
                    ``(A) at least 95 percent of the proceeds from the 
                sale of the issue are to be spent for 1 or more 
                qualified fossil fuel use reduction projects within the 
                5-year period beginning on the date of issuance of the 
                Freedom from Fossil Fuels (F4) bond,
                    ``(B) a binding commitment with a third party to 
                spend at least 10 percent of the proceeds from the sale 
                of the issue will be incurred within the 6-month period 
                beginning on the date of issuance of the Freedom from 
                Fossil Fuels (F4) bond or, in the case of a Freedom 
                from Fossil Fuels (F4) bond the proceeds of which are 
                to be loaned to 2 or more borrowers, such binding 
                commitment will be incurred within the 6-month period 
                beginning on the date of the loan of such proceeds to a 
                borrower, and
                    ``(C) such projects will be completed with due 
                diligence and the proceeds from the sale of the issue 
                will be spent with due diligence.
            ``(2) Extension of period.--Upon submission of a request 
        prior to the expiration of the period described in paragraph 
        (1)(A), the Secretary may extend such period if the issuer 
        establishes that the failure to satisfy the 5-year requirement 
        is due to reasonable cause and the related projects will 
        continue to proceed with due diligence.
            ``(3) Failure to spend required amount of bond proceeds 
        within 5 years.--To the extent that less than 95 percent of the 
        proceeds of such issue are expended by the close of the 5-year 
        period beginning on the date of issuance (or if an extension 
        has been obtained under paragraph (2), by the close of the 
        extended period), the issuer shall redeem all of the 
        nonqualified bonds within 90 days after the end of such period. 
        For purposes of this paragraph, the amount of the nonqualified 
        bonds required to be redeemed shall be determined in the same 
        manner as under section 142.
    ``(i) Special Rules Relating to Arbitrage.--A bond which is part of 
an issue shall not be treated as a Freedom from Fossil Fuels (F4) bond 
unless, with respect to the issue of which the bond is a part, the 
issuer satisfies the arbitrage requirements of section 148 with respect 
to proceeds of the issue.
    ``(j) Governmental Body.--For purposes of this section, the term 
`governmental body' means any State, territory, possession of the 
United States, the District of Columbia, Indian tribal government, and 
any political subdivision.
    ``(k) Special Rules Relating to Pool Bonds.--No portion of a pooled 
financing bond may be allocable to any loan unless the borrower has 
entered into a written loan commitment for such portion prior to the 
issue date of such issue.
    ``(l) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) Pooled financing bond.--The term `pooled financing 
        bond' shall have the meaning given such term by section 
        149(f)(4)(A).
            ``(3) Partnership; s corporation; and other pass-thru 
        entities.--
                    ``(A) In general.--Under regulations prescribed by 
                the Secretary, in the case of a partnership, trust, S 
                corporation, or other pass-thru entity, rules similar 
                to the rules of section 41(g) shall apply with respect 
                to the credit allowable under subsection (a).
                    ``(B) No basis adjustment.--Rules similar to the 
                rules under section 1397E(i)(2) shall apply.
            ``(4) Bonds held by regulated investment companies.--If any 
        Freedom from Fossil Fuels (F4) bond is held by a regulated 
        investment company, the credit determined under subsection (a) 
        shall be allowed to shareholders of such company under 
        procedures prescribed by the Secretary.
            ``(5) Treatment for estimated tax purposes.--Solely for 
        purposes of sections 6654 and 6655, the credit allowed by this 
        section to a taxpayer by reason of holding a Freedom from 
        Fossil Fuels (F4) bond on a credit allowance date shall be 
        treated as if it were a payment of estimated tax made by the 
        taxpayer on such date.
            ``(6) Ratable principal amortization required.--A bond 
        shall not be treated as a Freedom from Fossil Fuels (F4) bond 
        unless it is part of an issue which provides for an equal 
        amount of principal to be paid by the issuer during each 
        calendar year that the issue is outstanding.
            ``(7) Reporting.--Issuers of Freedom from Fossil Fuels (F4) 
        bonds shall submit reports similar to the reports required 
        under section 149(e).
            ``(8) Credits may be stripped.--Under regulations 
        prescribed by the Secretary--
                    ``(A) In general.--There may be a separation 
                (including at issuance) of the ownership of a Freedom 
                from Fossil Fuels (F4) bond and the entitlement to the 
                credit under this section with respect to such bond. In 
                case of any such separation, the credit under this 
                section shall be allowed to the person which, on the 
                credit allowance date, holds the instrument evidencing 
                the entitlement to the credit and not to the holder of 
                the bond.
                    ``(B) Certain rules to apply.--In the case of a 
                separation described in subparagraph (A), the rules of 
                section 1286 shall apply to the Freedom from Fossil 
                Fuels (F4) bond as if it were a stripped bond and to 
                the credit under this section as if it were a stripped 
                coupon.
            ``(9) Credit may be transferred.--Nothing in any law or 
        rule of law shall be construed to limit the transferability of 
        the credit allowed by this section through sale and repurchase 
        agreements.
    ``(m) Termination.--This section shall not apply with respect to 
any bond issued after December 31, 2014.''
    (b) Reporting.--Subsection (d) of section 6049 of the Internal 
Revenue Code of 1986 (relating to returns regarding payments of 
interest), as amended by this Act, is amended by adding at the end the 
following:
            ``(10) Reporting of credit on freedom from fossil fuels 
        (f4) bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54B(g) and such amounts 
                shall be treated as paid on the credit allowance date 
                (as defined in section 54B(b)(4)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
    (c) Clerical Amendment.--The table of sections for subpart H of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986, as amended by this Act, is amended by adding at the end the 
following:

``Sec. 54B. Credit to holders of freedom from fossil Fuels (F4) 
                            bonds.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to bonds issued after December 31, 2005.
    (e) Freedom From Fossil Fuels (F4) Bonds Board.--
            (1) In general.--The President, in consultation with 
        Congress, States, and local communities, shall establish in the 
        Executive Branch the Freedom from Fossil Fuels (F4) Bonds Board 
        (referred to in this subsection as the ``Board'') to review 
        applications for allocation of the Freedom from Fossil Fuels 
        (F4) bond applications in accordance with criteria published in 
        the Federal Register.
            (2) Annual report.--The Board shall annually report with 
        respect to the conduct of its responsibilities under this 
        subsection to the President and Congress and such report shall 
        include--
                    (A) the overall progress of the Freedom from Fossil 
                Fuels (F4) bond program, and
                    (B) the overall limitation amount allocated during 
                the year and a description of the amount, region, and 
                qualified fossil fuel use reduction project financed by 
                each allocation.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to the Board such sums as are necessary to 
        carry out the purposes of this subsection.

SEC. 422. CLEAN ENERGY SECURITY COLLABORATIVE.

    (a) In General.--There is established a cooperative program, to be 
known as the ``Clean Energy Security Collaborative'' (referred to in 
this section as the ``Collaborative'')--
            (1) to promote awareness of and increased use of clean 
        energy technologies for energy security; and
            (2) to increase collaboration among Federal and State 
        agencies to deploy clean distributed energy technologies and 
        systems for critical facilities, infrastructure, and homeland 
        security applications.
    (b) Administration.--The Collaborative shall be carried out by the 
Secretary of Energy--
            (1) in accordance with an agreement between the Secretary 
        and a nonprofit, non-governmental organization that represents 
        various types of State clean energy funds dedicated to 
        promoting the development and deployment of clean energy 
        technologies and to creating and expanding the markets for the 
        technologies; and
            (2) in consultation with the States.
    (c) Duties.--The Collaborative, through the leadership of State 
clean energy funds, and in partnership with institutions of higher 
education, shall conduct a multistate analysis to develop--
            (1) a model energy security assessment template for 
        critical facilities and infrastructure;
            (2) a business case that explores a strategy for using 
        clean distributed generation technologies at critical 
        facilities and infrastructure, including--
                    (A) building and facility backup power;
                    (B) emergency response capability;
                    (C) low-power protection;
                    (D) infrastructure area support;
                    (E) transportation; and
                    (F) telecommunications;
            (3) a feasibility study initiative with--
                    (A) a short list of critical facilities and 
                infrastructure for potential demonstration projects;
                    (B) a template for the feasibility studies to be 
                carried out; and
                    (C) a plan to conduct feasibility studies in select 
                States to better understand the actual economic, 
                technical, and other market barriers to the use of 
                clean distributed generation technologies at critical 
                public facilities and infrastructure;
            (4) a generic financial and engineering model based on the 
        results of the feasibility studies carried out under paragraph 
        (3) that could be used to accelerate consideration and adoption 
        of clean energy systems at critical public facilities and 
        infrastructure; and
            (5) a report for submission to Congress to present findings 
        and strategic recommendations for improving energy security at 
        critical facilities and infrastructure using clean distributed 
        generation technologies through a Federal-State partnership.
    (d) Federal-State Pilot Projects.--The Collaborative shall 
establish Federal-State pilot projects with demonstrations in 5 
States--
            (1) to implement recommendations from the feasibility 
        studies carried out under subsection (c)(3);
            (2) to facilitate the use of local, distributed, clean 
        energy generation technologies and systems at critical public 
        safety facilities and infrastructure; and
            (3) as overall purposes, to fortify infrastructure, 
        strengthen capabilities of first responders, and enhance 
        emergency preparedness, among other Federal and State energy 
        security priorities.
    (e) Report.--The Collaborative shall submit to Congress and each 
State director of homeland security or emergency management a report 
that describes the results of--
            (1) the multistate analysis under subsection (c); and
            (2) the Federal-State pilot projects under subsection (d).
    (f) Funding Sources.--Funding for the Collaborative may be provided 
from--
            (1) amounts specifically appropriated for the 
        Collaborative; and
            (2) an equal match of Federal funds by any State receiving 
        funds as part of a Federal-State pilot project under subsection 
        (d).
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000,000 for each of fiscal 
years 2007 through 2010.

SEC. 423. ASSISTANCE FOR STATE PROGRAMS TO RETIRE FUEL-INEFFICIENT 
              MOTOR VEHICLES.

    (a) Definitions.--In this section:
            (1) Fuel-efficient automobile.--The term ``fuel-efficient 
        automobile'' means a passenger automobile or a light-duty truck 
        that has a fuel economy rating that is 40 percent greater than 
        the average fuel economy standard prescribed pursuant to 
        section 32902 of title 49, United States Code, or other law, 
        applicable to the passenger automobile or light-duty truck.
            (2) Fuel-inefficient automobile.--The term ``fuel-
        inefficient automobile'' means a passenger automobile or a 
        light-duty truck that--
                    (A) is manufactured in a model year more than 15 
                years before the fiscal year in which appropriations 
                authorized under subsection (f) are made available; and
                    (B) at the time of manufacture, had a fuel economy 
                rating that was equal to or less than 20 miles per 
                gallon.
            (3) Light-duty truck.--
                    (A) In general.--The term ``light-duty truck'' 
                means an automobile that is not a passenger automobile.
                    (B) Inclusions.--The term ``light-duty truck'' 
                includes a pickup truck, a van, and a four-wheel-drive 
                general utility vehicle (as those terms are defined in 
                section 600.002-85 of title 40, Code of Federal 
                Regulations (or successor regulations)).
            (4) State.--The term ``State'' means--
                    (A) a State; and
                    (B) the District of Columbia.
    (b) Establishment.--The Secretary shall establish a program, to be 
known as the ``National Motor Vehicle Efficiency Improvement Program'', 
under which the Secretary shall provide grants to States to operate 
voluntary programs to offer owners of fuel-inefficient automobiles 
financial incentives to replace the fuel-inefficient automobiles with 
fuel-efficient automobiles.
    (c) State Plan.--
            (1) In general.--For a State to be eligible to receive 
        funds under the program, the Governor of the State shall submit 
        to the Secretary a plan to carry out a program under this 
        section in the State.
            (2) Additional state credit.--In addition to the payment 
        under subsection (e)(6), the State plan may provide for a 
        credit that may be redeemed by the owner of a replaced fuel-
        inefficient automobile at the time of purchase of a new fuel-
        efficient automobile for use as the replacement.
    (d) Allocation Formula.--The amounts appropriated pursuant to 
subsection (f) shall be allocated among the States in the proportion 
that--
            (1) the number of registered motor vehicles in each State 
        as of the date on which the Secretary computes shares under 
        this subsection; bears to
            (2) the number of registered motor vehicles in all States 
        on that date.
    (e) Eligibility Criteria.--The Secretary shall approve a State plan 
submitted under subsection (c)(1) and provide the funds made available 
under subsection (f), if the State plan--
            (1) except as provided in paragraph (7), requires that all 
        passenger automobiles and light-duty trucks turned in be 
        scrapped, after allowing a period of time for the recovery of 
        spare parts;
            (2) requires that all passenger automobiles and light-duty 
        trucks turned in be registered in the State in order to be 
        eligible;
            (3) requires that all passenger automobiles and light-duty 
        trucks turned in be operational at the time at which the 
        passenger automobiles and light-duty trucks are turned in;
            (4) restricts automobile owners (except nonprofit 
        organizations) from turning in more than 1 passenger automobile 
        and 1 light-duty truck during a 1-year period;
            (5) provides an appropriate payment to the person recycling 
        the scrapped passenger automobile or light-duty truck for each 
        turned-in passenger automobile or light-duty truck;
            (6) subject to subsection (c)(2), provides a minimum 
        payment to the automobile owner for each passenger automobile 
        and light-duty truck turned in; and
            (7) provides appropriate exceptions to the scrappage 
        requirement for vehicles that qualify as antique cars under 
        State law.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as are necessary to carry out 
this section, to remain available until expended.

           Subtitle D--International Clean Energy Deployment

SEC. 431. CLEAN ENERGY TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES.

    Title VII of the Global Environmental Protection Assistance Act of 
1989 (22 U.S.C. 7901 et seq.) is amending by adding at the end the 
following:

  ``PART D--CLEAN ENERGY TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES

``SEC. 741. DEFINITIONS.

    ``In this part:
            ``(1) Clean energy technology.--The term `clean energy 
        technology' means an energy supply or end-use technology that, 
        over its lifecycle and compared to a similar technology already 
        in commercial use in any developing country--
                    ``(A) is reliable, affordable, economically viable, 
                socially acceptable, and compatible with the needs and 
                norms of the host country;
                    ``(B) results in--
                            ``(i) reduced emissions of greenhouse 
                        gases; or
                            ``(ii) increased geological sequestration; 
                        and
                    ``(C) may--
                            ``(i) substantially lower emissions of air 
                        pollutants; and
                            ``(ii) generate substantially smaller or 
                        less hazardous quantities of solid or liquid 
                        waste.
            ``(2) Department.--The term `Department' means the 
        Department of State.
            ``(3) Developing country.--
                    ``(A) In general.--The term `developing country' 
                means any country not listed in Annex I of the United 
                Nations Framework Convention on Climate Change, done at 
                New York on May 9, 1992.
                    ``(B) Inclusion.--The term `developing country' may 
                include a country with an economy in transition, as 
                determined by the Secretary.
            ``(4) Geological sequestration.--The term `geological 
        sequestration' means the capture and long-term storage in a 
        geological formation of a greenhouse gas from an energy 
        producing facility, which prevents the release of greenhouse 
        gases into the atmosphere.
            ``(5) Greenhouse gas.--The term `greenhouse gas' means--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons; and
                    ``(F) sulfur hexafluoride.
            ``(6) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            ``(7) Interagency working group.--The term `Interagency 
        Working Group' means the Interagency Working Group on Clean 
        Energy Technology Exports established under section 
        742(b)(1)(A).
            ``(8) National laboratory.--The term `National Laboratory' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).
            ``(9) Qualifying project.--The term `qualifying project' 
        means a project meeting the criteria established under section 
        745(b).
            ``(10) Secretary.--The term `Secretary' means the Secretary 
        of State.
            ``(11) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico; and
                    ``(D) any other territory or possession of the 
                United States.
            ``(12) Strategy.--The term `Strategy' means the strategy 
        established under section 743.
            ``(13) Task force.--The term `Task Force' means the Task 
        Force on International Clean Energy Cooperation established 
        under section 742(a).
            ``(14) United states.--The term `United States', when used 
        in a geographical sense, means all of the States.

``SEC. 742. ORGANIZATION.

    ``(a) Task Force.--
            ``(1) Establishment.--Not later than 90 days after the date 
        of enactment of this part, the President shall establish a Task 
        Force on International Clean Energy Cooperation.
            ``(2) Composition.--The Task Force shall be composed of--
                    ``(A) the Secretary, who shall serve as 
                Chairperson; and
                    ``(B) representatives, appointed by the head of the 
                respective Federal agency, of--
                            ``(i) the Department of Commerce;
                            ``(ii) the Department of the Treasury;
                            ``(iii) the Department of Energy;
                            ``(iv) the Environmental Protection Agency;
                            ``(v) the United States Agency for 
                        International Development;
                            ``(vi) the Export-Import Bank;
                            ``(vii) the Overseas Private Investment 
                        Corporation;
                            ``(viii) the Trade and Development Agency;
                            ``(ix) the Small Business Administration;
                            ``(x) the Office of United States Trade 
                        Representative; and
                            ``(xi) other Federal agencies, as 
                        determined by the President.
            ``(3) Duties.--
                    ``(A) Lead agency.--The Task Force shall act as the 
                lead agency in the development and implementation of 
                strategy under section 743.
                    ``(B) Coordination and implementation.--The Task 
                Force shall support the coordination and implementation 
                of programs under sections 1331, 1332, and 1608 of the 
                Energy Policy Act of 1992 (42 U.S.C. 13361, 13362, 
                13387).
            ``(4) Termination.--The Task Force, including any working 
        group established by the Task Force, shall terminate on January 
        1, 2016.
    ``(b) Working Groups.--
            ``(1) Establishment.--The Task Force--
                    ``(A) shall establish an Interagency Working Group 
                on Clean Energy Technology Exports; and
                    ``(B) may establish other working groups as 
                necessary to carry out this part.
            ``(2) Composition of interagency working group.--The 
        Interagency Working Group shall be composed of--
                    ``(A) the Secretary of Energy, the Secretary of 
                Commerce, and the Administrator of the United States 
                Agency for International Development, who shall jointly 
                serve as Chairpersons; and
                    ``(B) other members, as determined by the Task 
                Force.
    ``(c) Interagency Center.--
            ``(1) Establishment.--There is established an Interagency 
        Center in the Office of International Energy Market Development 
        of the Department of Energy.
            ``(2) Duties.--The Interagency Center shall--
                    ``(A) assist the Interagency Working Group in 
                carrying out this part; and
                    ``(B) perform such other duties as are determined 
                to be appropriate by the Secretary of Energy.

``SEC. 743. STRATEGY.

    ``(a) Initial Strategy.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this part, the Task Force shall develop and submit 
        to the President a Strategy to--
                    ``(A) support the development and implementation of 
                programs and policies in developing countries to 
                promote the adoption of clean energy technologies and 
                energy efficiency technologies and strategies, with an 
                emphasis on those developing countries that are 
                expected to experience the most significant growth in 
                energy production and use over the next 20 years;
                    ``(B) open and expand clean energy technology 
                markets and facilitate the export of clean energy 
                technology to developing countries, in a manner 
                consistent with the subsidy codes of the World Trade 
                Organization;
                    ``(C) integrate into the foreign policy objectives 
                of the United States the promotion of--
                            ``(i) clean energy technology deployment 
                        and reduced greenhouse gas emissions in 
                        developing countries; and
                            ``(ii) clean energy technology exports;
                    ``(D) establish a pilot program that provides 
                financial assistance for qualifying projects; and
                    ``(E) develop financial mechanisms and instruments 
                (including securities that mitigate the political and 
                foreign exchange risks of uses that are consistent with 
                the foreign policy of the United States by combining 
                the private sector market and government enhancements) 
                that--
                            ``(i) are cost-effective; and
                            ``(ii) facilitate private capital 
                        investment in clean energy technology projects 
                        in developing countries.
            ``(2) Transmission to congress.--On receiving the Strategy 
        from the Task Force under paragraph (1), the President shall 
        transmit to Congress the Strategy.
    ``(b)  Updates.--
            ``(1) In general.--Not later than 2 years after the date of 
        submission of the initial Strategy under subsection (a)(1), and 
        every 2 years thereafter--
                    ``(A) the Task Force shall--
                            ``(i) review and update the Strategy; and
                            ``(ii) report the results of the review and 
                        update to the President; and
                    ``(B) the President shall submit to Congress a 
                report on the Strategy.
            ``(2) Inclusions.--The report shall include--
                    ``(A) the updated Strategy;
                    ``(B) a description of the assistance provided 
                under this part;
                    ``(C) the results of the pilot projects carried out 
                under this part, including a comparative analysis of 
                the relative merits of each pilot project;
                    ``(D) the activities and progress reported by 
                developing countries to the Department under section 
                746(b)(2); and
                    ``(E) the activities and progress reported towards 
                meeting the goals established under section 746(b)(2).
    ``(c) Content.--In developing, updating, and submitting a report on 
the Strategy, the Task Force shall--
            ``(1) assess--
                    ``(A) energy trends, energy needs, and potential 
                energy resource bases in developing countries; and
                    ``(B) the implications of the trends and needs for 
                domestic and global economic and security interests;
            ``(2) analyze technology, policy, and market opportunities 
        for international development, demonstration, and deployment of 
        clean energy technologies and strategies;
            ``(3) examine relevant trade, tax, finance, international, 
        and other policy issues to assess what policies, in the United 
        States and in developing countries, would help open markets and 
        improve clean energy technology exports of the United States in 
        support of--
                    ``(A) enhancing energy innovation and cooperation, 
                including energy sector and market reform, capacity 
                building, and financing measures;
                    ``(B) improving energy end-use efficiency 
                technologies (including buildings and facilities) and 
                vehicle, industrial, and co-generation technology 
                initiatives; and
                    ``(C) promoting energy supply technologies, 
                including fossil, nuclear, and renewable technology 
                initiatives;
            ``(4) investigate issues associated with building capacity 
        to deploy clean energy technology in developing countries, 
        including--
                    ``(A) energy-sector reform;
                    ``(B) creation of open, transparent, and 
                competitive markets for clean energy technologies;
                    ``(C) the availability of trained personnel to 
                deploy and maintain clean energy technology; and
                    ``(D) demonstration and cost-buydown mechanisms to 
                promote first adoption of clean energy technology;
            ``(5) establish priorities for promoting the diffusion and 
        adoption of clean energy technologies and strategies in 
        developing countries, taking into account economic and security 
        interests of the United States and opportunities for the export 
        of technology of the United States;
            ``(6) identify the means of integrating the priorities 
        established under paragraph (5) into bilateral, multilateral, 
        and assistance activities and commitments of the United States;
            ``(7) establish methodologies for the measurement, 
        monitoring, verification, and reporting under section 746(b)(2) 
        of the greenhouse gas emission impacts of clean energy projects 
        and policies in developing countries;
            ``(8) establish a registry that is accessible to the public 
        through electronic means (including through the Internet) in 
        which information reported under section 746(b)(2) shall be 
        collected;
            ``(9) make recommendations to the heads of appropriate 
        Federal agencies on ways to streamline Federal programs and 
        policies to improve the role of the agencies in the 
        international development, demonstration, and deployment of 
        clean energy technology;
            ``(10) make assessments and recommendations regarding the 
        distinct technological, market, regional, and stakeholder 
        challenges necessary to deploy clean energy technology;
            ``(11) recommend conditions and criteria that will help 
        ensure that funds provided by the United States promote sound 
        energy policies in developing countries while simultaneously 
        opening their markets and exporting clean energy technology of 
        the United States;
            ``(12) establish an advisory committee, composed of 
        representatives of the private sector and other interested 
        groups, on the export and deployment of clean energy 
        technology;
            ``(13) establish a coordinated mechanism for disseminating 
        information to the private sector and the public on clean 
        energy technologies and clean energy technology transfer 
        opportunities; and
            ``(14) monitor the progress of each Federal agency in 
        promoting the purposes of this part, in accordance with--
                    ``(A) the 5-year strategic plan submitted to 
                Congress in October 2002; and
                    ``(B) other applicable law.

``SEC. 744. CLEAN ENERGY ASSISTANCE TO DEVELOPING COUNTRIES.

    ``(a) In General.--Subject to section 746, the Secretary may 
provide assistance to developing countries for activities that are 
consistent with the priorities established in the Strategy.
    ``(b) Assistance.--The assistance may be provided through--
            ``(1) the Millennium Challenge Corporation established 
        under section 604(a) of the Millennium Challenge Act of 2003 
        (22 U.S.C. 7703(a));
            ``(2) the Global Village Energy Partnership; and
            ``(3) other international assistance programs or activities 
        of--
                    ``(A) the Department;
                    ``(B) the United States Agency for International 
                Development; and
                    ``(C) other Federal agencies.
    ``(c) Eligible Activities.--The activities supported under this 
section include--
            ``(1) development of national action plans and policies 
        to--
                    ``(A) facilitate the provision of clean energy 
                services and the adoption of energy efficiency 
                measures;
                    ``(B) identify linkages between the use of clean 
                energy technologies and the provision of agricultural, 
                transportation, water, health, educational, and other 
                development-related services; and
                    ``(C) integrate the use of clean energy 
                technologies into national strategies for economic 
                growth, poverty reduction, and sustainable development;
            ``(2) strengthening of public and private sector capacity 
        to--
                    ``(A) assess clean energy needs and options;
                    ``(B) identify opportunities to reduce, avoid, or 
                sequester greenhouse gas emissions;
                    ``(C) establish enabling policy frameworks;
                    ``(D) develop and access financing mechanisms; and
                    ``(E) monitor progress in implementing clean energy 
                and greenhouse gas reduction strategies;
            ``(3) enactment and implementation of market-favoring 
        measures to promote commercial-based energy service provision 
        and to improve the governance, efficiency, and financial 
        performance of the energy sector; and
            ``(4) development and use of innovative public and private 
        mechanisms to catalyze and leverage financing for clean energy 
        technologies, including use of the development credit authority 
        of the United States Agency for International Development and 
        credit enhancements through the Export-Import Bank and the 
        Overseas Private Investment Corporation.

``SEC. 745. PILOT PROGRAM FOR DEMONSTRATION PROJECTS.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of this part, the Secretary, in consultation with the 
Secretary of Energy and the Administrator of the United States Agency 
for International Development, shall, by regulation, establish a pilot 
program that provides financial assistance for qualifying projects 
consistent with the Strategy and the performance criteria established 
under section 746.
    ``(b) Qualifying Projects.--To be qualified to receive assistance 
under this section, a project shall--
            ``(1) be a project--
                    ``(A) to construct an energy production facility in 
                a developing country for the production of energy to be 
                consumed in the developing country; or
                    ``(B) to improve the efficiency of energy use in a 
                developing country;
            ``(2) be a project that--
                    ``(A) is submitted by a firm of the United States 
                to the Secretary in accordance with procedures 
                established by the Secretary by regulation;
                    ``(B) meets the requirements of section 1608(k) of 
                the Energy Policy Act of 1992 (42 U.S.C. 13387(k));
                    ``(C) uses technology that has been successfully 
                developed or deployed in the United States; and
                    ``(D) is selected by the Secretary without regard 
                to the developing country in which the project is 
                located, with notice of the selection published in the 
                Federal Register; and
            ``(3) when deployed, result in a greenhouse gas emission 
        reduction (when compared to the technology that would otherwise 
        be deployed) of at least--
                    ``(A) in the case of a unit or energy-efficiency 
                measure placed in service during the period beginning 
                on the date of enactment of this part and ending on 
                December 31, 2009, 20 percentage points;
                    ``(B) in the case of a unit or energy-efficiency 
                measure placed in service during the period beginning 
                on January 1, 2010, and ending on December 31, 2019, 40 
                percentage points; and
                    ``(C) in the case of a unit or energy-efficiency 
                measure placed in service after December 31, 2019, 60 
                percentage points.
    ``(c) Financial Assistance.--
            ``(1) In general.--For each qualifying project selected by 
        the Secretary to participate in the pilot program, the 
        Secretary shall make a loan or loan guarantee available for not 
        more than 50 percent of the total cost of the project.
            ``(2) Interest rate.--The interest rate on a loan made 
        under this subsection shall be equal to the current average 
        yield on outstanding obligations of the United States with 
        remaining periods of maturity comparable to the maturity of the 
        loan.
            ``(3) Host country contribution.--To be eligible for a loan 
        or loan guarantee for a project in a host country under this 
        subsection, the host country shall--
                    ``(A) make at least a 10 percent contribution 
                toward the total cost of the project; and
                    ``(B) verify to the Secretary (using the 
                methodology established under section 743(c)(7)) the 
                quantity of annual greenhouse gas emissions reduced, 
                avoided, or sequestered as a result of the deployment 
                of the project.
            ``(4) Capacity building research.--
                    ``(A) In general.--A proposal made for a qualifying 
                project may include a research component intended to 
                build technological capacity within the host country.
                    ``(B) Research.--To be eligible for a loan or loan 
                guarantee under this paragraph, the research shall--
                            ``(i) be related to the technology being 
                        deployed; and
                            ``(ii) involve--
                                    ``(I) an institution in the host 
                                country; and
                                    ``(II) a participant from the 
                                United States that is an industrial 
                                entity, an institution of higher 
                                education, or a National Laboratory.
                    ``(C) Host country contribution.--To be eligible 
                for a loan or loan guarantee for research in a host 
                country under this paragraph, the host country shall 
                make at least a 50 percent contribution toward the 
                total cost of the research.
            ``(5) Grants.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Secretary of Energy and the Administrator of 
                the United States Agency for International Development, 
                may, at the request of the United States ambassador to 
                a host country, make grants to help address and 
                overcome specific, urgent, and unforeseen obstacles in 
                the implementation of a qualifying project.
                    ``(B) Maximum amount.--The total amount of a grant 
                made for a qualifying project under this paragraph may 
                not exceed $1,000,000.

``SEC. 746. PERFORMANCE CRITERIA FOR MAJOR ENERGY CONSUMERS.

    ``(a) Identification of Major Energy Consumers.--Not later than 1 
year after the date of enactment of this part, the Task Force shall 
identify those developing countries that, by virtue of present and 
projected energy consumption, represent the predominant share of energy 
use among developing countries.
    ``(b) Performance Criteria.--As a condition of accepting assistance 
provided under sections 744 and 745, any developing country identified 
under subsection (a) shall--
            ``(1) meet the eligibility criteria established under 
        section 607 of the Millennium Challenge Act of 2003 (22 U.S.C. 
        7706), notwithstanding the eligibility of the developing 
        country as a candidate country under section 606 of that Act 
        (22 U.S.C. 7705); and
            ``(2) agree to establish and report on progress in meeting 
        specific goals for reduced energy-related greenhouse gas 
        emissions and specific goals for--
                    ``(A) increased access to clean energy services 
                among unserved and underserved populations;
                    ``(B) increased use of renewable energy resources;
                    ``(C) increased use of lower greenhouse gas-
                emitting fossil fuel-burning technologies;
                    ``(D) more efficient production and use of energy;
                    ``(E) greater reliance on advanced energy 
                technologies;
                    ``(F) the sustainable use of traditional energy 
                resources; or
                    ``(G) other goals for improving energy-related 
                environmental performance, including the reduction or 
                avoidance of local air and water quality and solid 
                waste contaminants.

``SEC. 747. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as are 
necessary to carry out this part for each of fiscal years 2006 through 
2015.''

TITLE V--SECURING A RELIABLE, AFFORDABLE, AND SUSTAINABLE ENERGY FUTURE

        Subtitle A--Advanced Research Project Agency for Energy

SEC. 501. OFFICE OF ADVANCED ENERGY RESEARCH, TECHNOLOGY DEVELOPMENT, 
              AND DEPLOYMENT.

    (a) Establishment.--The Secretary of Energy shall establish in the 
Department of Energy the Office of Advanced Energy Research, Technology 
Development, and Deployment (referred to in this section as the 
``Office''), to be headed by a Director (referred to in this section as 
the ``Director'') who reports to the Secretary.
    (b) Mission.--The mission of the Office is--
            (1) to implement an innovative energy research, technology 
        development, and deployment program to--
                    (A) increase national security by significantly 
                reducing petroleum and imported fuels consumption;
                    (B) significantly improve the efficiency of 
                electricity use and the reliability of the electricity 
                system; and
                    (C) significantly reduce greenhouse gas emissions; 
                and
            (2) to sponsor a diverse portfolio of cutting-edge, high-
        payoff research, development, and deployment projects to carry 
        out the program.
    (c) Experimental Personnel Authority.--The Director may staff the 
Office primarily using a program of experimental use of special 
personnel management authority in order to facilitate recruitment of 
eminent experts in science or engineering for management of research 
and development projects and programs administered by the Director 
under similar terms and conditions as the authority is exercised under 
section 1101 of the Strom Thurmond National Defense Authorization Act 
for Fiscal Year 1999 (Public Law 105-261; 5 U.S.C. 3104 note), as 
determined by the Director.
    (d) Transactions Other Than Contracts and Grants.--To carry out 
projects under this section, the Director may enter into transactions 
to carry out advanced research projects under this subsection under 
similar terms and conditions as the authority is exercised under 
section 646(g) of the Department of Energy Organization Act (42 U.S.C. 
7256(g)).
    (e) Prizes for Advanced Technology Achievements.--
            (1) In general.--Subject to paragraphs (2) through (4), the 
        Director may carry out a program to award cash prizes in 
        recognition of outstanding achievements in basic, advanced, and 
        applied research, technology development, and prototype 
        development that have the potential to advance the mission 
        described in subsection (b) under similar terms and conditions 
        as the authority is exercised under section 1008 of the Energy 
        Policy Act of 2005 (42 U.S.C. 16396).
            (2) Competition requirements.--In carrying out this 
        subsection, the Director shall--
                    (A) use a competitive process for the selection of 
                recipients of cash prizes; and
                    (B) conduct widely-advertised solicitation of 
                submissions of research results, technology 
                developments, and prototypes.
            (3) Maximum amount for all cash prizes.--The total amount 
        of all cash prizes awarded for a fiscal year under this 
        subsection may not exceed $50,000,000.
            (4) Maximum amount of individual cash prizes.--The amount 
        of an individual cash prize awarded under this subsection may 
        not exceed $10,000,000 unless the amount of the award is 
        approved by the Secretary of Energy.
    (f) Annual Reports.--As soon as practicable after the end of each 
fiscal year for which the Director receives funds under subsection (h), 
the Director shall submit to the Committee on Energy and Natural 
Resources of the Senate and the Committee on Energy and Commerce, and 
the Committee on Science, of the House of Representatives a report on 
the progress, challenges, future milestones, and strategic plan of the 
Office, including--
            (1) a description of, and rationale for, any changes in the 
        strategic plan;
            (2) the adequacy of human and financial resources necessary 
        to achieve the mission described in subsection (b); and
            (3) in the case of cash prizes awarded under subsection 
        (e), a description of--
                    (A) the applications of the research, technology, 
                or prototypes for which prizes were awarded;
                    (B) the total amount of the prizes that were 
                awarded;
                    (C) the methods used for solicitation and 
                evaluation of submissions and an assessment of the 
                effectiveness of those methods; and
                    (D) recommendations to improve the prize program.
    (g) Relationship to Other Authority.--The program under this 
section may be carried out in conjunction with, or in addition to, the 
exercise of any other authority of the Director to acquire, support, or 
stimulate basic, advanced, and applied research, technology 
development, or prototype projects.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $1,000,000,000 for fiscal year 2007; and
            (2) $2,000,000,000 for each of fiscal years 2008 through 
        2011.

            Subtitle B--Near-Term Vehicle Technology Program

SEC. 505. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM.

    (a) Purposes.--The purposes of this section are--
            (1) to enable and promote, in partnership with industry, 
        comprehensive development, demonstration, and commercialization 
        of a wide range of electric drive components, systems, and 
        vehicles using diverse electric drive transportation 
        technologies;
            (2) to make critical public investments to help private 
        industry, institutions of higher education, National 
        Laboratories, and research institutions to expand innovation, 
        industrial growth, and jobs in the United States;
            (3) to expand the availability of the existing electric 
        infrastructure for fueling light-duty transportation and other 
        on-road and nonroad vehicles that are using petroleum and are 
        mobile sources of emissions--
                    (A) including the more than 3,000,000 reported 
                units (such as electric forklifts, golf carts, and 
                similar nonroad vehicles) in use on the date of 
                enactment of this Act; and
                    (B) with the goals of enhancing the energy security 
                of the United States, reducing dependence on imported 
                oil and reducing emissions through the expansion of 
                grid-supported mobility;
            (4) to accelerate the widespread commercialization of all 
        types of electric drive vehicle technology into all sizes and 
        applications of vehicles, including commercialization of plug-
        in hybrid electric vehicles and plug-in hybrid fuel cell 
        vehicles; and
            (5) to improve the energy efficiency of, and reduce the 
        petroleum use in, transportation.
    (b) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Battery.--The term ``battery'' means an energy storage 
        device used in an on-road vehicle or nonroad vehicle powered, 
        in whole or in part, using an off-board or on-board source of 
        electricity.
            (3) Electric drive transportation technology.--The term 
        ``electric drive transportation technology'' means--
                    (A) vehicles that use an electric motor for all or 
                part of their motive power and that may or may not use 
                off-board electricity, including battery electric 
                vehicles, fuel cell vehicles, engine dominant hybrid 
                electric vehicles, plug-in hybrid electric vehicles, 
                plug-in hybrid fuel cell vehicles, and electric rail; 
                or
                    (B) equipment relating to transportation or mobile 
                sources of air pollution that use an electric motor to 
                replace an internal combustion engine for all or part 
                of the work of the equipment, including corded electric 
                equipment linked to transportation or mobile sources of 
                air pollution.
            (4) Engine dominant hybrid electric vehicle.--The term 
        ``engine dominant hybrid electric vehicle'' means an on-road 
        vehicle or nonroad vehicle that--
                    (A) is propelled by an internal combustion engine 
                or heat engine using--
                            (i) any combustible fuel;
                            (ii) an on-board, rechargeable storage 
                        device; and
                    (B) has no means of using an off-board source of 
                electricity.
            (5) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
        means an on-road vehicle or nonroad vehicle that uses a fuel 
        cell (as defined in section 803 of the Spark M. Matsunaga 
        Hydrogen Act of 2005 (42 U.S.C. 16152)).
            (6) Lightweighting.--The term ``lightweighting'' means the 
        process of reducing the weight of components or structural 
        materials of a vehicle to achieve an overall reduction in 
        weight of the vehicle to achieve energy efficiency, maintain 
        safety, improve performance, or achieve a similar goal.
            (7) Nonroad vehicle.--The term ``nonroad vehicle'' has the 
        meaning given the term in section 216 of the Clean Air Act (42 
        U.S.C. 7550).
            (8) Plug-in hybrid electric vehicle.--The term ``plug-in 
        hybrid electric vehicle'' means an on-road vehicle or nonroad 
        vehicle that is propelled by an internal combustion engine or 
        heat engine using--
                    (A) any combustible fuel;
                    (B) an on-board, rechargeable storage device; and
                    (C) a means of using an off-board source of 
                electricity.
            (9) Plug-in hybrid fuel cell vehicle.--The term ``plug-in 
        hybrid fuel cell vehicle'' means a fuel cell vehicle with a 
        battery powered by an off-board source of electricity.
    (c) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for electric 
drive transportation and vehicle lightweighting technology, including--
            (1) high-capacity, high-efficiency batteries;
            (2) high-efficiency on-board and off-board charging 
        components;
            (3) high-powered drive train systems for passenger and 
        commercial vehicles and for nonroad equipment;
            (4) control system development and power train development 
        and integration for plug-in hybrid electric vehicles, plug-in 
        hybrid fuel cell vehicles, and engine dominant hybrid electric 
        vehicles, including--
                    (A) development of efficient cooling systems;
                    (B) analysis and development of control systems 
                that minimize the emissions profile when clean diesel 
                engines are part of a plug-in hybrid drive system; and
                    (C) development of different control systems that 
                optimize for different goals, including--
                            (i) battery life;
                            (ii) reduction of petroleum consumption; 
                        and
                            (iii) greenhouse gas reduction;
            (5) nanomaterial technology applied to both battery and 
        fuel cell systems;
            (6) large-scale demonstration, testing, and evaluation of 
        plug-in hybrid electric vehicles in different applications with 
        different batteries and control systems, including--
                    (A) military applications;
                    (B) mass market passenger and light-duty truck 
                applications;
                    (C) private fleet applications; and
                    (D) medium- and heavy-duty applications;
            (7)(A) a nationwide education strategy for electric drive 
        transportation technologies by providing secondary and high 
        school teaching materials and support for university education 
        focused on electric drive system and component engineering; and
            (B) development, in consultation with the Administrator, of 
        procedures for testing and certification of criteria 
        pollutants, fuel economy, and petroleum use for light-, medium-
        , and heavy-duty vehicle applications, including consideration 
        of the vehicle and fuel as a system, and not solely as an 
        engine;
            (8) nightly off-board charging;
            (9) advancement of battery and corded electric 
        transportation technologies in mobile source applications by--
                    (A) improvement in battery, drive train, and 
                control system technologies; and
                    (B) working with industry and the Administrator 
                to--
                            (i) understand and inventory markets; and
                            (ii) identify and implement methods of 
                        removing barriers for existing and emerging 
                        applications; and
            (10) components and structural materials used for vehicle 
        lightweighting, including composites.
    (d) Goals.--The goals of the electric drive transportation 
technology program established under subsection (c) shall be to 
develop, in partnership with industry and institutions of higher 
education, projects that focus on--
            (1) innovative electric drive technology developed in the 
        United States;
            (2) growth of employment in the United States in electric 
        drive design and manufacturing;
            (3) validation of the plug-in hybrid potential through 
        fleet demonstrations; and
            (4) acceleration of fuel cell commercialization through 
        comprehensive development and commercialization of the electric 
        drive technology systems that are the foundational technology 
        of the fuel cell vehicle system.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $600,000,000 for each of fiscal 
years 2007 through 2012.

  Subtitle C--Advanced Technology Motor Vehicles Manufacturing Credit

SEC. 511. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.) is amended by adding at the end the following new section:

``SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.

    ``(a) Credit Allowed.--There shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an amount equal to 
35 percent of the qualified investment of an eligible taxpayer for such 
taxable year.
    ``(b) Qualified Investment.--For purposes of this section--
            ``(1) In general.--The term `qualified investment' means, 
        with respect to any taxable year, the sum of--
                    ``(A) the costs paid or incurred by the eligible 
                taxpayer during such taxable year--
                            ``(i) to re-equip, expand, or establish any 
                        manufacturing facility of the eligible taxpayer 
                        to produce advanced technology motor vehicles 
                        or to produce eligible components, and
                            ``(ii) for qualified research (as defined 
                        in section 41(d)) related to advanced 
                        technology motor vehicles and eligible 
                        components, and
                    ``(B) qualified engineering integration costs.
            ``(2) Attribution rules.--For purposes of paragraph 
        (1)(A)(i), in the case of a manufacturing facility of the 
        eligible taxpayer which produces both advanced technology motor 
        vehicles and other motor vehicles, or eligible components and 
        other components, only the amount paid or incurred for the 
        production of advanced technology motor vehicles and eligible 
        components shall be taken into account.
    ``(c) Eligible Taxpayer.--For purposes of this section, the term 
`eligible taxpayer' means any taxpayer if more than 50 percent of its 
gross receipts for the taxable year is derived from the manufacture of 
motor vehicles or any component parts of such vehicles.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Advanced technology motor vehicle.--The term 
        `advanced technology motor vehicle' means--
                    ``(A) any new qualified fuel cell motor vehicle (as 
                defined in section 30B(b)(3)),
                    ``(B) any new advanced lean burn technology motor 
                vehicle (as defined in section 30B(c)(3)),
                    ``(C) any new qualified hybrid motor vehicle (as 
                defined in section 30B(d)(3)(A) and determined without 
                regard to any gross vehicle weight rating), and
                    ``(D) any new qualified alternative motor fuel 
                vehicle (as defined in section 30B(e)(4)).
            ``(2) Eligible components.--The term `eligible component' 
        means any component inherent to any advanced technology motor 
        vehicle but not inherent to a motor vehicle which is not an 
        advanced technology motor vehicle, including--
                    ``(A) with respect to any gasoline or diesel-
                electric new qualified hybrid motor vehicle, any--
                            ``(i) electric motor or generator,
                            ``(ii) power split device,
                            ``(iii) power control unit,
                            ``(iv) power controls,
                            ``(v) integrated starter generator, or
                            ``(vi) battery,
                    ``(B) with respect to any hydraulic new qualified 
                hybrid motor vehicle, any--
                            ``(i) hydraulic accumulator vessel,
                            ``(ii) hydraulic pump, or
                            ``(iii) hydraulic pump-motor assembly,
                    ``(C) with respect to any new advanced lean burn 
                technology motor vehicle, any--
                            ``(i) diesel engine,
                            ``(ii) turbocharger,
                            ``(iii) fuel injection system, or
                            ``(iv) after-treatment system, such as a 
                        particle filter or NOx absorber, and
                    ``(D) with respect to any advanced technology motor 
                vehicle, any other component submitted for approval by 
                the Secretary.
            ``(3) Qualified engineering integration costs.--For 
        purposes of subsection (b)(1)(B), the term `qualified 
        engineering integration costs' means, with respect to any 
        advanced technology motor vehicle, costs incurred prior to the 
        market introduction of such motor vehicle for engineering tasks 
        related to--
                    ``(A) establishing functional, structural, and 
                performance requirements for components and subsystems 
                to meet overall vehicle objectives for a specific 
                application,
                    ``(B) designing interfaces for components and 
                subsystems with mating systems within a specific 
                vehicle application,
                    ``(C) designing cost effective, efficient, and 
                reliable manufacturing processes to produce components 
                and subsystems for a specific vehicle application, and
                    ``(D) validating functionality and performance of 
                components and subsystems for a specific vehicle 
                application.
            ``(4) Motor vehicle.--The term `motor vehicle' has the 
        meaning given such term by section 30(c)(2).
    ``(e) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the sum of--
                    ``(A) the taxpayer's regular tax liability (as 
                defined in section 26(b)) for the taxable year, plus
                    ``(B) the tax imposed under section 55 for the 
                taxable year.
            ``(2) Carryover of unused credit amounts.--
                    ``(A) In general.--If the credit allowable under 
                subsection (a) for a taxable year exceeds the 
                limitation under paragraph (1) for such taxable year, 
                such excess shall be allowed--
                            ``(i) as a credit carryback to each of the 
                        13 taxable years preceding such year, and
                            ``(ii) as a credit carryforward to each of 
                        the 20 taxable years following such year.
                    ``(B) Amount carried to each year.--For purposes of 
                this paragraph, rules similar to the rules of section 
                39(a)(2) shall apply.
    ``(f) Special Rules.--
            ``(1) Reduction in basis.--For purposes of this subtitle, 
        if a credit is allowed under this section for any expenditure 
        with respect to any property, the increase in the basis of such 
        property which would (but for this paragraph) result from such 
        expenditure shall be reduced by the amount of the credit so 
        allowed.
            ``(2) Investments and property outside the united states.--
        No credit shall be allowed under subsection (a) with respect 
        to--
                    ``(A) any manufacturing facility which is located 
                outside the United States, and
                    ``(B) any engineering integration or research and 
                development conducted outside the United States.
            ``(3) Aggregation of expenditures; allocations.--For 
        purposes of this section, rules similar to the rules of 
        paragraphs (1) and (2) of section 41(f) shall apply.
            ``(4) Recapture.--The Secretary shall, by regulation, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any manufacturing facility 
        which ceases to produce advanced technology motor vehicles or 
        eligible components.
            ``(5) Public statement.--
                    ``(A) In general.--No credit shall be allowed under 
                subsection (a) for any taxable year unless the eligible 
                taxpayer makes publicly available a statement 
                describing the activities of the eligible taxpayer for 
                which the credit is allowed and the public benefits of 
                such activities, including the estimated amount of any 
                reduction in national oil consumption in future years 
                as a result of such activities.
                    ``(B) Time for publication.--The statement required 
                under subparagraph (A) shall be made available not 
                later than 90 days after the end of the taxable year 
                for which the credit under subsection (a) is allowed 
                and shall be in such form as the Secretary shall 
                prescribe.
            ``(6) No double benefit.--
                    ``(A) Coordination with other deductions and 
                credits.--Except as provided in subparagraph (B), the 
                amount of any deduction or other credit allowable under 
                this chapter for any cost taken into account in 
                determining the amount of the credit under subsection 
                (a) shall be reduced by the amount of such credit 
                attributable to such cost.
                    ``(B) Research and development costs.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), any amount described in subsection 
                        (b)(1)(A)(ii) taken into account in determining 
                        the amount of the credit under subsection (a) 
                        for any taxable year shall not be taken into 
                        account for purposes of determining the credit 
                        under section 41 for such taxable year.
                            ``(ii) Costs taken into account in 
                        determining base period research expenses.--Any 
                        amounts described in subsection (b)(1)(A)(ii) 
                        taken into account in determining the amount of 
                        the credit under subsection (a) for any taxable 
                        year which are qualified research expenses 
                        (within the meaning of section 41(b)) shall be 
                        taken into account in determining base period 
                        research expenses for purposes of applying 
                        section 41 to subsequent taxable years.
    ``(g) Election Not to Take Credit.--No credit shall be allowed 
under subsection (a) for any property if the taxpayer elects not to 
have this section apply to such property.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as necessary to carry out the provisions of this section.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986, 
        as amended by this Act, is amended by striking ``and'' at the 
        end of paragraph (38), by striking the period at the end of 
        paragraph (39) and inserting ``, and'', and by adding at the 
        end the following new paragraph:
            ``(40) to the extent provided in section 30D(f)(1).''.
            (2) Section 6501(m) of such Code is amended by inserting 
        ``30D(g),'' after ``30C(e)(5),''.
            (3) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 30C the following new item:

``Sec. 30D. Advanced technology motor vehicles manufacturing credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts incurred in taxable years beginning after December 31, 
1993.

                Subtitle D--Realizing a Hydrogen Future

SEC. 521. H-PRIZE COMPETITION.

    (a) Short Title.--This section may be cited as the ``H-Prize Act of 
2006''.
    (b) Definitions.--In this section:
            (1) Administering entity.--The term ``administering 
        entity'' means the entity with which the Secretary enters into 
        an agreement under subsection (c)(3).
            (2) Department.--The term ``Department'' means the 
        Department of Energy.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (c) Prize Authority.--
            (1) In general.--The Secretary shall carry out a program to 
        competitively award cash prizes only in conformity with this 
        section to advance the research, development, demonstration, 
        and commercial application of hydrogen energy technologies.
            (2) Advertising and solicitation of competitors.--
                    (A) Advertising.--The Secretary shall widely 
                advertise prize competitions to encourage broad 
                participation, including participation by--
                            (i) individuals;
                            (ii) institutions of higher education, 
                        including historically Black colleges and 
                        universities and other institutions serving 
                        minorities; and
                            (iii) large and small businesses, including 
                        businesses owned or controlled by socially and 
                        economically disadvantaged persons.
                    (B) Announcement through federal register notice.--
                            (i) In general.--The Secretary shall 
                        announce each prize competition by publishing a 
                        notice in the Federal Register.
                            (ii) Requirements.--The notice shall 
                        include a description of--
                                    (I) the subject of the competition;
                                    (II) the duration of the 
                                competition;
                                    (III) the eligibility requirements 
                                for participation in the competition;
                                    (IV) the process for participants 
                                to register for the competition;
                                    (V) the amount of the prize; and
                                    (VI) the criteria for awarding the 
                                prize.
            (3) Administering the competitions.--
                    (A) In general.--The Secretary shall enter into an 
                agreement with a private, nonprofit entity to 
                administer the prize competitions, subject to this 
                section.
                    (B) Duties.--The duties of the administering entity 
                under the agreement shall include--
                            (i) advertising prize competitions and the 
                        results of the prize competitions;
                            (ii) raising funds from private entities 
                        and individuals to pay for administrative costs 
                        and contribute to cash prizes;
                            (iii) working with the Secretary to develop 
                        the criteria for selecting winners in prize 
                        competitions, based on goals provided by the 
                        Secretary;
                            (iv) determining, in consultation with the 
                        Secretary, the appropriate amount for each 
                        prize to be awarded;
                            (v) selecting judges in accordance with 
                        subsection (d)(4), using criteria developed in 
                        consultation with the Secretary; and
                            (vi) preventing the unauthorized use or 
                        disclosure of the intellectual property, trade 
                        secrets, and confidential business information 
                        of registered participants.
            (4) Funding sources.--
                    (A) In general.--Cash prizes under this section 
                shall consist of funds appropriated under subsection 
                (h) and any funds provided by the administering entity 
                for the cash prizes (including funds raised pursuant to 
                paragraph (3)(B)).
                    (B) Other federal agencies.--The Secretary may 
                accept funds from other Federal agencies for the cash 
                prizes.
                    (C) No special consideration.--The Secretary may 
                not give any special consideration to any private 
                sector entity or individual in return for a donation to 
                the administering entity.
            (5) Announcement of prizes.--
                    (A) In general.--The Secretary may not issue a 
                notice required by paragraph (2)(B) until all the funds 
                needed to pay out the announced amount of the prize 
                have been appropriated or committed in writing by the 
                administering entity.
                    (B) Increase in amount of prize.--The Secretary may 
                increase the amount of a prize after an initial 
                announcement is made under paragraph (2)(B) if--
                            (i) notice of the increase is provided in 
                        the same manner as the initial notice of the 
                        prize; and
                            (ii) the funds needed to pay out the 
                        announced amount of the increase have been 
                        appropriated or committed in writing by the 
                        administering entity.
    (d) Prize Categories.--
            (1) Categories.--The Secretary shall establish prizes for--
                    (A) advancements in components or systems related 
                to--
                            (i) hydrogen production;
                            (ii) hydrogen production from renewable 
                        sources;
                            (iii) hydrogen storage;
                            (iv) hydrogen distribution; and
                            (v) hydrogen utilization;
                    (B) prototypes of hydrogen-powered vehicles or 
                other hydrogen-based products that best meet or exceed 
                objective performance criteria, such as completion of a 
                race over a certain distance or terrain or generation 
                of energy at certain levels of efficiency; and
                    (C) transformational changes in technologies for 
                the distribution or production of hydrogen that meet or 
                exceed far-reaching objective criteria that--
                            (i) shall include minimal carbon emissions; 
                        and
                            (ii) may include cost criteria designed to 
                        facilitate the eventual market success of a 
                        winning technology.
            (2) Awards.--
                    (A) Advancements.--
                            (i) In general.--To the extent permitted 
                        under subsection (c)(5), the prizes authorized 
                        under paragraph (1)(A) shall be awarded 
                        biennially to the most significant advance made 
                        in each of the 4 subcategories described in 
                        clauses (i) through (v) of paragraph (1)(A) 
                        since the submission deadline of the previous 
                        prize competition in the same category under 
                        paragraph (1)(A) or the date of enactment of 
                        this Act, whichever is later, unless no such 
                        advance is significant enough to merit an 
                        award.
                            (ii) Maximum amount for single prize.--No 
                        single prize described in clause (i) may exceed 
                        $2,000,000.
                            (iii) Insufficient total funds.--If less 
                        than $4,000,000 is available for a prize 
                        competition under paragraph (1)(A), the 
                        Secretary may--
                                    (I) omit 1 or more subcategories;
                                    (II) reduce the amount of the 
                                prizes; or
                                    (III) not hold a prize competition.
                    (B) Prototypes.--
                            (i) In general.--To the extent permitted 
                        under subsection (c)(5), prizes authorized 
                        under paragraph (1)(B) shall be awarded 
                        biennially in alternate years from the prizes 
                        authorized under paragraph (1)(A).
                            (ii) Total number of prizes.--The Secretary 
                        may award no more than 1 prize under paragraph 
                        (1)(A) in each 2-year period.
                            (iii) Maximum amount for single prize.--No 
                        single prize under this subparagraph may exceed 
                        $8,000,000.
                            (iv) Insufficient qualified entries.--If no 
                        registered participant meets the objective 
                        performance criteria established pursuant to 
                        paragraph (3) for a competition under this 
                        subparagraph, the Secretary shall not award a 
                        prize.
                    (C) Transformational technologies.--
                            (i) In general.--To the extent permitted 
                        under subsection (c)(5), the Secretary shall 
                        announce 1 prize competition authorized under 
                        paragraph (1)(C) as soon as practicable after 
                        the date of enactment of this Act.
                            (ii) Amount of prize.--A prize offered 
                        under this subparagraph shall--
                                    (I) be in an amount not less than 
                                $2,000,000;
                                    (II) be paid to the winner in a 
                                lump sum; and
                                    (III) include an additional amount 
                                paid to the winner as a match for each 
                                dollar of non-Federal funding raised by 
                                the winner for the hydrogen technology 
                                beginning on the date the winner was 
                                named.
                            (iii) Matching.--
                                    (I) In general.--The match 
                                described in clause (ii)(III) shall be 
                                provided until the earlier of--
                                            (aa) the date that is 3 
                                        years after the date the prize 
                                        winner is named; or
                                            (bb) the date on which the 
                                        full amount of the prize has 
                                        been paid out.
                                    (II) Election.--A prize winner may 
                                elect to have the match amount paid to 
                                another entity that is continuing the 
                                development of the winning technology.
                                    (III) Rules.--The Secretary shall 
                                announce the rules for receiving the 
                                match in the notice required by 
                                subsection (c)(2)(B).
                            (iv) Requirements.--The Secretary shall 
                        award a prize under this subparagraph only when 
                        a registered participant has met the objective 
                        criteria established for the prize pursuant to 
                        paragraph (3) and announced pursuant to 
                        subsection (c)(2)(B).
                            (v) Total amount of funds.--
                                    (I) Federal funds.--Not more than 
                                $20,000,000 in Federal funds may be 
                                used for the prize award under this 
                                subparagraph.
                                    (II) Matching funds.--As a 
                                condition of entering into an agreement 
                                under subsection (c)(3), the 
                                administering entity shall seek to 
                                raise $40,000,000 in non-Federal funds 
                                toward the matching award under this 
                                subparagraph.
            (3) Criteria.--In establishing the criteria required by 
        this section, the Secretary shall consult with--
                    (A) the Hydrogen Technical and Fuel Cell Advisory 
                Committee of the Department;
                    (B) other Federal agencies, including the National 
                Science Foundation; and
                    (C) private organizations, including professional 
                societies, industry associations, the National Academy 
                of Sciences, and the National Academy of Engineering.
            (4) Judges.--
                    (A) In general.--For each prize competition, the 
                Secretary shall assemble a panel of qualified judges to 
                select the 1 or more winners on the basis of the 
                criteria established under paragraph (3).
                    (B) Inclusions.--Judges for each prize competition 
                shall include individuals from outside the Department, 
                including from the private sector.
                    (C) Prohibitions.--A judge may not--
                            (i) have personal or financial interests 
                        in, or be an employee, officer, director, or 
                        agent of, any entity that is a registered 
                        participant in the prize competition for which 
                        the judge will serve as a judge; or
                            (ii) have a familial or financial 
                        relationship with an individual who is a 
                        registered participant in the prize competition 
                        for which the judge will serve as a judge.
    (e) Eligibility.--To be eligible to win a prize under this section, 
an individual or entity--
            (1) shall have complied with all the requirements in 
        accordance with the Federal Register notice required under 
        subsection (c)(2)(B);
                    (A) in the case of a private entity, shall be 
                incorporated in and maintain a primary place of 
                business in the United States;
                    (B) in the case of an individual (whether 
                participating singly or in a group), shall be a citizen 
                of, or an alien lawfully admitted for permanent 
                residence in, the United States; and
                    (C) shall not be a Federal entity, a Federal 
                employee acting within the scope of employment, or an 
                employee of a national laboratory acting within the 
                scope of employment.
    (f) Intellectual Property.--
            (1) In general.--Subject to paragraph (2), the Federal 
        Government shall not, by virtue of offering or awarding a prize 
        under this section, be entitled to any intellectual property 
        rights derived as a consequence of, or direct relation to, the 
        participation by a registered participant in a competition 
        authorized by this section.
            (2) Negotiation of licenses permitted.--This subsection 
        does not prevent the Federal Government from negotiating a 
        license for the use of intellectual property developed for a 
        prize competition under this section.
    (g) Liability.--
            (1) Waiver of liability.--
                    (A) In general.--As a condition of participation in 
                a competition under this section, the Secretary may 
                require registered participants to waive claims against 
                the Federal Government and the administering entity 
                (except claims for willful misconduct) for any injury, 
                death, damage, or loss of property, revenue, or profits 
                arising from the participation of the registered 
                participants in a competition under this section.
                    (B) Notice required.--The Secretary shall provide 
                notice of any waiver required under this paragraph in 
                the notice required by subsection (c)(2)(B).
                    (C) Prohibition.--The Secretary may not require a 
                registered participant to waive claims against the 
                administering entity arising out of the unauthorized 
                use or disclosure by the administering entity of the 
                intellectual property, trade secrets, or confidential 
                business information of the registered participant.
            (2) Liability insurance.--
                    (A) Requirements.--As a condition of participation 
                in a competition under this section, a registered 
                participant shall be required to obtain liability 
                insurance or demonstrate financial responsibility, in 
                amounts determined by the Secretary, for claims by--
                            (i) a third party for death, bodily injury, 
                        or property damage or loss resulting from an 
                        activity carried out in connection with 
                        participation in a competition under this 
                        section; and
                            (ii) the Federal Government for damage or 
                        loss to Government property resulting from such 
                        an activity.
                    (B) Federal government insured.--
                            (i) In general.--The Federal Government 
                        shall be named as an additional insured under 
                        the insurance policy of a registered 
                        participant required under subparagraph (A)(i).
                            (ii) Mandatory indemnification.--As a 
                        condition of participation in a competition 
                        under this section, a registered participant 
                        shall be required to agree to indemnify the 
                        Federal Government against third party claims 
                        for damages arising from or related to 
                        competition activities.
    (h) Authorization of Appropriations.--
            (1) Authorization of appropriations.--
                    (A) Awards.--There are authorized to be 
                appropriated to the Secretary to carry out this section 
                for the period of fiscal years 2007 through 2016--
                            (i) $20,000,000 for awards described in 
                        subsection (d)(1)(A);
                            (ii) $20,000,000 for awards described in 
                        subsection (d)(1)(B); and
                            (iii) $10,000,000 for the award described 
                        in subsection (d)(1)(C).
                    (B) Administration.--In addition to the amounts 
                authorized in subparagraph (A), there are authorized to 
                be appropriated to the Secretary for the administrative 
                costs of carrying out this section $2,000,000 for each 
                of fiscal years 2007 through 2016.
            (2) Carryover of funds.--
                    (A) In general.--Funds appropriated for prize 
                awards under this section--
                            (i) shall remain available until expended; 
                        and
                            (ii) may be transferred, reprogrammed, or 
                        expended for other purposes only after the 
                        expiration of 10 fiscal years after the fiscal 
                        year for which the funds were originally 
                        appropriated.
                    (B) Relation to other law.--No provision in this 
                section permits obligation or payment of funds in 
                violation of section 1341 of title 31, United States 
                Code (commonly known as the ``Anti-Deficiency Act'').
    (i) Maintenance of Effort.--The Secretary shall ensure that funds 
provided under this section will be used only to supplement, and not to 
supplant, Federal research and development programs.
    (j) Sunset.--The authority provided by this section shall terminate 
on September 30, 2017.

SEC. 522. CREDIT FOR RETAIL SALE OF HYDROGEN FUEL AS MOTOR VEHICLE 
              FUEL.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits), as amended by this Act, is amended by inserting after section 
45O the following new section:

``SEC. 45P. CREDIT FOR RETAIL SALE OF HYDROGEN AS MOTOR VEHICLE FUEL.

    ``(a) General Rule.--For purposes of section 38, the hydrogen fuel 
retail sales credit for any taxable year is an amount equal to the 
greater of--
            ``(1) 20 percent of the price of hydrogen, or
            ``(2) 50 cents for each quantity of hydrogen having a Btu 
        content of 115,000, sold at retail by the taxpayer during such 
        year as a fuel to propel any hydrogen fuel cell vehicle.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Hydrogen fuel cell vehicle.--The term `hydrogen fuel 
        cell vehicle' has the meaning given such term in section 136A.
            ``(2) Sold at retail.--
                    ``(A) In general.--The term `sold at retail' means 
                the sale, for a purpose other than resale, after 
                manufacture, production, or importation.
                    ``(B) Use treated as sale.--If any person uses 
                hydrogen (including any use after importation) as a 
                fuel to propel any motor vehicle (as defined in section 
                30(c)(2)) before such fuel is sold at retail, then such 
                use shall be treated in the same manner as if such fuel 
                were sold at retail as a fuel to propel such a vehicle 
                by such person.
    ``(c) Pass-Thru in the Case of Estates and Trusts.--Under 
regulations prescribed by the Secretary, rules similar to the rules of 
subsection (d) of section 52 shall apply.
    ``(d) Termination.--This section shall not apply to any fuel sold 
at retail after December 31, 2014.''.
    (b) Credit Treated as Business Credit.--Section 38(b) of the 
Internal Revenue Code of 1986, as amended by this Act, is amended by 
striking ``plus'' at the end of paragraph (31), by striking the period 
at the end of paragraph (32) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(33) the hydrogen fuel retail sales credit determined 
        under section 45P(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986, as amended by this Act, is amended by inserting after the item 
relating to section 45O the following new item:

``Sec. 45P. Credit for retail sale of hydrogen as motor vehicle 
                            fuel.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel sold at retail after December 31, 2005, in taxable years 
ending after such date.

SEC. 523. CREDIT FOR PRODUCTION OF HYDROGEN FUEL.

    (a) Hydrogen Produced From Any Source.--Section 45K of the Internal 
Revenue Code of 1986 (relating to credit for producing fuel from 
nonconventional sources) is amended by adding at the end the following 
new subsection:
    ``(h) Hydrogen Fuel.--
            ``(1) Hydrogen fuel produced from any source.--There shall 
        be allowed as a credit against the tax imposed by this chapter 
        for the taxable year an amount equal to--
                    ``(A) $10, multiplied by
                    ``(B) each quantity of hydrogen having a Btu 
                content of 5,800,000--
                            ``(i) sold by the taxpayer to an unrelated 
                        person during the taxable year, and
                            ``(ii) the production of which is 
                        attributable to the taxpayer.
            ``(2) Additional credit for production from renewable 
        sources.--
                    ``(A) In general.--In the case of hydrogen which is 
                produced from a renewable source, paragraph (1)(A) 
                shall be applied by substituting `$20' for `$10'.
                    ``(B) Renewable source.--
                            ``(i) In general.--The term `renewable 
                        source' means solar, wind, ocean, geothermal 
                        energy, biomass, landfill gas, or incremental 
                        hydropower.
                            ``(ii) Incremental hydropower.--The term 
                        `incremental hydropower' means additional 
                        generating capacity achieved from increased 
                        efficiency or additions of new capacity at a 
                        hydroelectric facility in existence on the date 
                        of enactment of this paragraph.
            ``(3) Exclusion on sale for certain uses.--No credit shall 
        be allowed under this subsection for hydrogen fuel sold by the 
        taxpayer the use of which is for the production or refining of 
        other petroleum products.
            ``(4) Termination.--This subsection shall not apply to 
        hydrogen fuel produced after December 31, 2014.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to hydrogen produced after December 31, 2005, in taxable years 
ending after such date.

SEC. 524. TAX HOLIDAY FOR HYDROGEN FUEL.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 (relating to abatements, credits, and refunds) is amended 
by adding at the end the following new section:

``SEC. 6431. FUELS USED IN HYDROGEN POWERED VEHICLES.

    ``(a) In General.--If any fuel taxable under section 4041 or 4081 
is used to produce hydrogen as a means of propelling a hydrogen fuel 
cell vehicle during the applicable period, the Secretary shall pay 
(without interest) to the ultimate purchaser of such fuel an amount 
equal to the amount determined by multiplying the number of gallons so 
used by the rate at which tax was imposed on such fuel under section 
4041 or 4081.
    ``(b) Applicable Period.--The term `applicable period' means the 
period beginning after the date of the enactment of this section and 
ending before January 1, 2014.
    ``(c) Hydrogen Fuel Cell Vehicle.--The term `hydrogen fuel cell 
vehicle' has the meaning given such term by section 136A(b)(1).''.
    (b) Conforming Amendment.--The table of sections for subchapter B 
of chapter 65 of the Internal Revenue Code of 1986 is amended by 
inserting after the item relating to section 6428 the following new 
item:

``Sec. 6431. Fuels used in hydrogen powered vehicles.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel produced after the date of the enactment of this Act.

SEC. 525. SENSE OF CONGRESS REGARDING HYDROGEN FUEL TAXES.

    It is the sense of Congress that no tax should be imposed on 
hydrogen fuel before January 1, 2014.

SEC. 526. HYDROGEN FUELING FRINGE BENEFIT.

    (a) In General.--Paragraph (1) of section 132(c) of the Internal 
Revenue Code of 1986 (relating to qualified employee discounts) is 
amended by striking ``or'' at the end of subparagraph (A), by striking 
the period and inserting ``, or'' at the end of subparagraph (B), and 
by adding at the end the following new subparagraph:
                    ``(C) in the case of hydrogen fuel, 50 percent of 
                the price at which such fuel is being offered by the 
                employer to customers.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 527. EXCLUSION OF EARNINGS FROM HYDROGEN FUEL SALES.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 136 the 
following new section:

``SEC. 136A. INCOME FROM HYDROGEN FUEL SALES.

    ``(a) Exclusion.--Gross income shall not include income 
attributable to the sale of hydrogen fuel sold for use in a hydrogen 
fuel cell vehicle.
    ``(b) Hydrogen Fuel Cell Vehicle.--For purposes of this section, 
the term `hydrogen fuel cell vehicle' means a motor vehicle (as defined 
in section 30(c)(2)) which is propelled by power derived from 1 or more 
cells which convert chemical energy directly into electricity by 
combining oxygen with hydrogen fuel which is stored on board the 
vehicle in any form and may or may not require reformation prior to 
use.
    ``(c) Termination.--This section shall not apply to income 
attributable to sales after December 31, 2014.''.
    (b) Conforming Amendment.--The table of sections for subpart B of 
part III of subchapter B of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 136 the 
following new item:

``Sec. 136A. Income from hydrogen fuel sales.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to income received after December 31, 2005, in taxable years 
ending after such date.

  Subtitle E--Building the Skilled Workforce for Advanced Vehicle and 
                      Energy Technology Deployment

SEC. 531. INCREASING SKILLED WORKFORCE.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Center of excellence.--The term ``center of 
        excellence'' means a facility established by an eligible entity 
        at which 1 or more qualifying programs are or will be carried 
        out.
            (3) Eligible entity.--The term ``eligible entity'' means--
                    (A) a Federal agency (other than the Department of 
                Energy);
                    (B) a unit of State or local government;
                    (C) an institution of higher education; and
                    (D) a public elementary school or secondary school.
            (4) Qualifying program.--The term ``qualifying program'' 
        means a continuing education program, or any other education or 
        training program, that is--
                    (A) carried out by an institution or organization 
                certified under subsection (d); and
                    (B) designed to increase the skilled workforce of 
                the United States with respect to--
                            (i) advanced vehicle manufacturing;
                            (ii) alternative fuel vehicle repair and 
                        maintenance; or
                            (iii) energy technology product development 
                        and deployment.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Centers of Excellence.--
            (1) Establishment.--The Secretary shall establish a program 
        under which the Secretary shall provide grants to eligible 
        entities to establish and operate or support centers of 
        excellence in the jurisdiction of the eligible entity.
            (2) Application.--To be eligible to receive a grant under 
        paragraph (1), an eligible entity shall--
                    (A) submit to the Secretary an application at such 
                time, in such manner, and containing such information 
                as the Secretary may require; and
                    (B) enter into an agreement with the Secretary 
                relating to the establishment and operation or support 
                of the center of excellence of the eligible entity.
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $50,000,000 for 
        each of fiscal years 2007 through 2016.
    (c) Tuition Reimbursement.--
            (1) In general.--The Secretary shall provide to any 
        individual that participates in a qualifying program 
        reimbursement in the amount of the tuition paid by the 
        individual for the qualifying program.
            (2) Application.--To be eligible to receive reimbursement 
        under this subsection, an individual that participates in a 
        qualifying program shall submit to the Secretary an application 
        at such time, in such manner, and containing such information 
        as the Secretary may require.
    (d) Certification Procedure.--As soon as practicable after the date 
of enactment of this Act, the Secretary, in coordination with the 
Secretary of Labor and the Administrator and in consultation with 
affected labor unions, professional societies, academic institutions, 
and businesses, shall develop a procedure under which the Secretary, 
the Secretary of Labor, and the Administrator shall jointly certify 
institutions and organizations to carry out qualifying programs.
    (e) Tax Credits.--The Secretary, in coordination with the Secretary 
of the Treasury, shall submit to Congress proposed legislation to 
establish a tax credit for individuals, eligible entities, and 
institutions and organizations certified under subsection (d) for 
establishing, carrying out, or participating in qualifying programs or 
centers of excellence.

SEC. 532. GRANT PROGRAM FOR GREEN BUILDING AND ZERO-ENERGY HOME DESIGN 
              AND CONSTRUCTION TRAINING.

    (a) In General.--The Secretary of Education, in consultation with 
the Secretary of Energy, may award grants to postsecondary educational 
institutions to enable the institutions to train 10,000 individuals in 
green building and zero-energy home design and construction by fiscal 
year 2011.
    (b) Application.--A postsecondary educational institution that 
desires to receive a grant under this section shall submit an 
application to the Secretary of Education at such time, in such manner, 
and accompanied by such information as the Secretary of Education may 
reasonably require.
    (c) Reimbursement.--
            (1) In general.--A postsecondary educational institution 
        that receives a grant under this section shall use the grant 
        funds to reimburse an individual who completes training in 
        zero-energy home design and construction at, and receives 
        accreditation as a green building professional from, the 
        institution for an amount that is not more than 50 percent of 
        the amount the individual paid to receive the training at the 
        institution.
            (2) Determination of amount.--For purposes of calculating 
        the amount of the reimbursement under paragraph (1), the amount 
        the individual paid to receive the training at the institution 
        shall be reduced by the amount of any other grants received by 
        the individual for the training.
            (3) Effect on other federal loans.--A reimbursement 
        provided to an individual under paragraph (1) shall not affect 
        the eligibility of the individual for other Federal loans, 
        including student loans.
    (d) Renewable Energy Certification and Training.--The Secretary of 
Energy, in consultation with the Secretary of Education and the heads 
of other appropriate agencies, shall prepare and implement a plan for--
            (1) certifying renewable energy products and equipment; and
            (2) developing appropriate voluntary standards and training 
        programs for renewable energy product and equipment 
        installation and installers.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

           Subtitle F--Clean Energy Investment Administration

SEC. 541. DEFINITIONS.

    In this subtitle:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the CEIA appointed under section 542(b)(1)(A).
            (2) CEIA.--The term ``CEIA'' means the Clean Energy 
        Investment Administration established by section 542(a)(1).
            (3) Commercial deployment project.--The term ``commercial 
        deployment project'' means any project using commercial 
        technology relating to any of the following:
                    (A) Renewable electric power systems based on wind, 
                solar, biomass, or geothermal energy.
                    (B) Component and subcomponent manufacturing and 
                conversion of manufacturing facilities for production 
                of renewable electric power systems based on wind, 
                solar, biomass, or geothermal energy.
                    (C) Efficient electrical generation, transmission, 
                and distribution technologies.
                    (D) Efficient end-use electric power technologies.
            (4) Commercial technology.--The term ``commercial 
        technology'' means a technology demonstrated as technologically 
        and commercially viable in at least 1 commercial-scale 
        prototype.
            (5) Cost.--The term ``cost'' has the meaning given the term 
        ``cost of a loan guarantee'' within the meaning of section 
        502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a(5)(C)).
            (6) Demonstration project.--The term ``demonstration 
        project'' means any project using demonstration technology 
        relating to any of the following:
                    (A) Renewable electric power systems based on wind, 
                solar, biomass, or geothermal energy.
                    (B) Component and subcomponent manufacturing for 
                wind, solar, biomass, and geothermal renewable energy 
                systems.
                    (C) Integrated gasification and combined-cycle 
                systems.
                    (D) Hydrogen fuel cell technology for residential, 
                industrial, or transportation applications.
                    (E) Carbon capture and sequestration practices and 
                technologies, including agricultural and forestry 
                practices that store and sequester carbon.
                    (F) Efficient electrical generation, transmission, 
                and distribution technologies, including component and 
                subcomponent manufacturing.
                    (G) Efficient end-use energy technologies.
            (7) Demonstration technology.--The term ``demonstration 
        technology'' means a scientifically-viable technology that has 
        not yet been demonstrated as a commercial scale prototype.
            (8) Eligible project.--The term ``eligible project'' 
        means--
                    (A) a project described in section 544;
                    (B) any demonstration project that employs new or 
                significantly improved technologies as compared to 
                commercial technologies in services in the United 
                States at the time at which the loan guarantee is 
                issued, as determined by the Administrator;
                    (C) any commercial deployment project that employs 
                technologies that have been demonstrated as viable in 
                at least 1 commercial-scale prototype, as determined by 
                the Administrator; and
                    (D) with respect to any demonstration project or 
                commercial deployment project for which a loan 
                guarantee is sought under this subsection, a project 
                that--
                            (i) avoids or reduces energy imports;
                            (ii) creates jobs paying the prevailing 
                        wage for similar work in the region in which 
                        the project is located; or
                            (iii) avoids, reduces, or sequesters air 
                        pollutants or anthropogenic emissions of 
                        greenhouse gases.
            (9) Loan guarantee.--
                    (A) In general.--The term ``loan guarantee'' has 
                the meaning given the term ``loan guarantee'' in 
                section 502 of the Federal Credit Reform Act of 1990 (2 
                U.S.C. 661a).
                    (B) Inclusion.--The term ``loan guarantee'' 
                includes a loan guarantee commitment (as defined in 
                section 502 of the Federal Credit Reform Act of 1990 (2 
                U.S.C. 661a)).
            (10) Obligation.--The term ``obligation'' means the loan or 
        other debt obligation that is guaranteed under this section.
            (11) Success warrant.--The term ``success warrant'' means 
        equity in clean energy ventures that are successful as a result 
        of this Act.

SEC. 542. CLEAN ENERGY INVESTMENT ADMINISTRATION.

    (a) Establishment.--
            (1) In general.--There is established as an independent 
        agency in the Executive branch an agency to be known as the 
        ``Clean Energy Investment Administration''.
            (2) Supervision and affiliation.--The CEIA--
                    (A) shall be under the direction and supervision of 
                the President; and
                    (B) shall not be affiliated with, or be within, any 
                other agency or department of the Federal Government.
    (b) Management.--
            (1) Administrator.--
                    (A) In general.--The CEIA shall be managed by an 
                Administrator, who shall be a civilian appointed by the 
                President, by and with the advice and consent of the 
                Senate.
                    (B) Qualifications.--The Administrator of the CEIA 
                shall be an individual of outstanding qualifications 
                known to be familiar with and sympathetic to--
                            (i) clean energy technology;
                            (ii) clean energy policy; and
                            (iii) obstacles to development of clean 
                        energy.
                    (C) Conflicts of interest.--The Administrator shall 
                not engage in any other business, vocation, or 
                employment than that of serving as Administrator.
                    (D) Discrimination.--With respect to programs 
                carried out by the CEIA--
                            (i) in managing those programs, including 
                        grantmaking and guaranteeing programs and 
                        functions, the Administrator shall not 
                        discriminate on the basis of sex or marital 
                        status against any person or small business 
                        concern applying for or receiving assistance 
                        from the CEIA; and
                            (ii) the CEIA shall give special 
                        consideration to veterans of the Armed Forces 
                        of the United States and their survivors or 
                        dependents.
                    (E) Deputy administrator.--The President, by and 
                with the advice and consent of the Senate, may appoint 
                a Deputy Administrator to assist the Administrator in 
                carrying out the duties of the Administrator under this 
                subtitle.

SEC. 543. REQUIREMENTS SPECIFIC TO DEMONSTRATION PROJECTS AND 
              COMMERCIAL DEPLOYMENT PROJECTS.

    (a) In General.--The CEIA shall operate separate financing programs 
for eligible projects at the demonstration and commercial stages of 
development.
    (b) Demonstration Projects.--
            (1) In general.--Subject to paragraph (3) and section 534, 
        the CEIA may provide to eligible entities (as determined by the 
        Administrator) financing for demonstration projects in the form 
        of grants, loan guarantees, or both.
            (2) Use of funds.--A recipient of a grant under this 
        subsection may use funds from the grant to pay--
                    (A) the costs of 1 or more loan guarantees for an 
                eligible project; or
                    (B) not more than 25 percent of the costs of an 
                eligible project.
            (3) Maximum aggregate loan guarantees.--The aggregate 
        amount of Federal loan guarantees that may be provided under 
        this subtitle for demonstration projects shall not exceed 
        $5,000,000,000.
            (4) Maximum funding percentage for demonstration project 
        categories.--Not more than 25 percent of the grant funds and 
        loan guarantees provided under this subsection for a fiscal 
        year may be provided to any single category of demonstration 
        project described in section 531(6).
            (5) Success warrants.--The developer of a demonstration 
        project under this subsection may provide to CEIA a success 
        warrant that--
                    (A) is worth up to 10 percent of the value of 
                Federal loan guarantees secured for the demonstration 
                project under this subsection; and
                    (B) shall be used by the CEIA to finance future 
                CEIA loan guarantees.
    (c) Commercial Deployment Projects.--
            (1) In general.--The CEIA may provide assistance for 
        commercial deployment projects under this subtitle only in the 
        form of loan guarantees.
            (2) Maximum aggregate loan guarantees.--The aggregate 
        amount of loan guarantees that may be provided under this 
        subtitle for commercial deployment projects shall not exceed 
        $20,000,000,000.

SEC. 544. LOAN GUARANTEE PROGRAM.

    (a) In General.--Except as provided in the Alaska Natural Gas 
Pipeline Act (15 U.S.C. 720 et seq.), the Administrator shall make loan 
guarantees under this subtitle for eligible projects on such terms and 
conditions as the Administrator determines, after consultation with the 
Secretary of the Treasury, to be appropriate and in accordance with 
this section.
    (b) Specific Appropriation or Contribution.--
            (1) Demonstration projects.--No loan guarantee shall be 
        made for a demonstration project unless--
                    (A) an appropriation for the cost has been made; or
                    (B) the Administrator has--
                            (i) received from the borrower a payment in 
                        full for the cost of the obligation; and
                            (ii) deposited the payment in the Treasury.
            (2) Commercial projects.--No loan guarantee shall be made 
        for a commercial deployment project unless the Administrator 
        has--
                    (A) received from the borrower a payment in full 
                for the cost of the obligation; and
                    (B) deposited the payment in the Treasury.
    (c) Maximum Amount.--Except as otherwise provided by law, a loan 
guarantee by the Administrator for a demonstration project or 
commercial deployment project shall not exceed an amount equal to 80 
percent of the cost of the facility that is the subject of the loan 
guarantee, as estimated at the time at which the loan guarantee is 
issued.
    (d) Repayment.--
            (1) In general.--No loan guarantee shall be made under this 
        section unless the Administrator determines that there is a 
        reasonable prospect of repayment by the borrower of the 
        principal and interest on the obligation covered by the loan 
        guarantee.
            (2) Sufficiency of amount.--No loan guarantee shall be made 
        under this section unless the Administrator determines that the 
        amount of the obligation covered by the loan guarantee (when 
        combined with amounts available to the borrower from other 
        sources) will be sufficient to carry out the eligible project 
        for which the loan guarantee is provided.
            (3) Subordination.--A loan guarantee provided under this 
        section shall be subject to the condition that the obligation 
        covered by the loan guarantee is not subordinate to other 
        financing.
    (e) Interest Rate.--An obligation covered by a loan guarantee under 
this section shall bear interest at a rate that does not exceed a level 
that the Administrator determines to be appropriate, taking into 
account the prevailing rate of interest in the private sector for 
similar loans and risks.
    (f) Term.--The term of an obligation covered by a loan guarantee 
under this section shall require full repayment over a period not to 
exceed the lesser of--
            (1) 30 years; or
            (2) 90 percent of the projected useful life of the physical 
        asset to be financed by the obligation covered by the loan 
        guarantee (as determined by the Administrator).
    (g) Defaults.--
            (1) Payment by administrator.--
                    (A) In general.--If a borrower defaults on an 
                obligation covered by a loan guarantee under this 
                section (as defined in regulations promulgated by the 
                Administrator and specified in the loan guarantee 
                contract), the holder of the loan guarantee shall have 
                the right to demand payment of the unpaid amount from 
                the Administrator.
                    (B) Payment required.--Within such period as may be 
                specified in the loan guarantee or related agreements, 
                the Administrator shall pay to the holder of the loan 
                guarantee the unpaid interest on, and unpaid principal 
                of the obligation as to which the borrower has 
                defaulted, unless the Administrator finds that there 
                was no default by the borrower in the payment of 
                interest or principal or that the default has been 
                remedied.
                    (C) Forbearance.--Nothing in this subsection 
                precludes any forbearance by the holder of an 
                obligation covered by a loan guarantee under this 
                section for the benefit of the borrower, which 
                forbearance may be agreed upon by the parties to the 
                obligation and approved by the Administrator.
            (2) Subrogation.--
                    (A) In general.--If the Administrator makes a 
                payment under paragraph (1), the Administrator shall be 
                subrogated to the rights of the recipient of the 
                payment as specified in the loan guarantee or related 
                agreements including, where appropriate, the authority 
                (notwithstanding any other provision of law)--
                            (i) to complete, maintain, operate, lease, 
                        or otherwise dispose of any property acquired 
                        pursuant to the loan guarantee or related 
                        agreements; or
                            (ii) to permit the borrower, pursuant to an 
                        agreement with the Administrator, to continue 
                        to pursue the purposes of the eligible project 
                        carried out as a result of the loan guarantee 
                        if the Administrator determines the pursuit to 
                        be in the public interest.
                    (B) Superiority of rights.--The rights of the 
                Administrator, with respect to any property acquired 
                pursuant to a loan guarantee or related agreements, 
                shall be superior to the rights of any other person 
                with respect to the property.
                    (C) Terms and conditions.--A loan guarantee 
                agreement shall include such detailed terms and 
                conditions as the Administrator determines to be 
                appropriate--
                            (i) to protect the interests of the United 
                        States in the case of default; and
                            (ii) to have available all the patents and 
                        technology necessary for any person selected, 
                        including the Administrator, to complete and 
                        operate the eligible project carried out as a 
                        result of the loan guarantee.
            (3) Payment of principal and interest by administrator.--
        With respect to any obligation guaranteed under this section, 
        the Administrator may enter into a contract to pay, and pay, 
        holders of the obligation, for and on behalf of the borrower, 
        from funds appropriated for that purpose, the principal and 
        interest payments that become due and payable on the unpaid 
        balance of the obligation if the Administrator finds that--
                    (A) the borrower is unable to meet the payments and 
                is not in default;
                    (B) it is in the public interest to permit the 
                borrower to continue to pursue the purposes of the 
                project;
                    (C) the probable net benefit to the Federal 
                Government in paying the principal and interest will be 
                greater than that which would result in the event of a 
                default;
                    (D) the amount of the payment sought by the holders 
                of the obligation does not exceed the amount of 
                principal and interest that the borrower is obligated 
                to pay under the agreement being guaranteed; and
                    (E) the borrower agrees to reimburse the 
                Administrator for the payment (including interest) on 
                terms and conditions that are satisfactory to the 
                Administrator.
            (4) Action by attorney general.--
                    (A) Notification.--If a borrower defaults on an 
                obligation covered by a loan guarantee under this 
                section, the Administrator shall notify the Attorney 
                General of the default.
                    (B) Recovery.--On notification, the Attorney 
                General shall take such action as is appropriate to 
                recover the unpaid principal and interest due from--
                            (i) such assets of the defaulting borrower 
                        as are associated with the obligation; or
                            (ii) any other security pledged to secure 
                        the obligation.
    (h) Fees.--
            (1) In general.--The Administrator shall charge and collect 
        fees for loan guarantees in amounts the Administrator 
        determines are sufficient to cover applicable administrative 
        expenses.
            (2) Availability.--Fees collected under this subsection 
        shall--
                    (A) be deposited by the Administrator in the 
                Treasury; and
                    (B) remain available until expended, subject to 
                such other conditions as are contained in annual 
                appropriations Acts.
    (i) Records; Audits.--
            (1) In general.--A recipient of a loan guarantee shall keep 
        such records and other pertinent documents as the Administrator 
        shall prescribe by regulation, including such records as the 
        Administrator may require to facilitate an effective audit.
            (2) Access.--The Administrator and the Comptroller General 
        of the United States (or designees) shall have access, for the 
        purpose of audit, to the records and other pertinent documents.
    (j) Full Faith and Credit.--The full faith and credit of the United 
States is pledged to the payment of all loan guarantees issued under 
this section with respect to principal and interest.
    (k) Qualification of Facilities Receiving Tax Credits.--A project 
that receives 1 or more tax credits shall not be disqualified from 
being considered to be an eligible project, or from receiving a grant 
or loan guarantee, under this subtitle.

SEC. 545. ENERGY PARK TASK FORCES.

    (a) Definitions.--In this section:
            (1) Energy park.--The term ``energy park'' shall have such 
        meaning as is given the term by the Secretary, by regulation.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (3) Task force.--The term ``task force'' means any energy 
        park task force established under subsection (b)(1).
    (b) Establishment.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Secretary shall establish not less 
        than 4, and not more than 6, regional task forces, to be known 
        as ``energy park task forces''.
            (2) Locations.--The Secretary shall establish task forces 
        under paragraph (1), to the maximum extent practicable--
                    (A) in geographically diverse regions of the United 
                States; and
                    (B) in regions with--
                            (i) well-established infrastructure for 
                        high-rank and low-rank coal or biomass 
                        production; or
                            (ii) significant demand for the products of 
                        energy parks.
    (c) Membership.--Each task force shall be comprised of individuals, 
to be appointed by the Secretary, representing--
            (1) local agricultural, coal, pulp and paper, chemical, 
        automotive, and electric power industries, including 
        distributed and renewable energy electricity companies where 
        applicable ;
            (2) regional energy cooperatives;
            (3) State energy, environmental, agricultural, and economic 
        development agencies;
            (4) labor unions; and
            (5) environmental and citizen groups.
    (d) Duties.--
            (1) Evaluations.--
                    (A) In general.--Each task force shall evaluate, 
                within the jurisdiction of the task force--
                            (i) the technical and economic potential 
                        for the use of domestically-produced coal and 
                        biomass and available renewable energy 
                        resources as feedstock for energy parks to 
                        produce useful products for markets associated 
                        with--
                                    (I) fertilizer;
                                    (II) liquid fuels;
                                    (III) steam; and
                                    (IV) electricity; and
                            (ii) the impacts of the markets described 
                        in clause (i) on--
                                    (I) national security;
                                    (II) the United States and regional 
                                economies;
                                    (III) job security and 
                                unemployment;
                                    (IV) the environment; and
                                    (V) any other relevant industry.
                    (B) Inclusion.--An evaluation under subparagraph 
                (A) shall include an evaluation, within the 
                jurisdiction of the applicable task force, of carbon 
                management options and costs.
            (2) Reports.--
                    (A) In general.--Not later than 18 months after the 
                date on which all members of a task force have been 
                appointed under subsection (c), the task force shall 
                submit to the Secretary a report describing the results 
                of the evaluation conducted under paragraph (1).
                    (B) Coordination.--In preparing a report under 
                subparagraph (A), a task force shall coordinate with--
                            (i) the 7 Regional Carbon Sequestration 
                        Partnerships; and
                            (ii) other relevant Federal agencies.
    (e) Action by Secretary.--After taking into consideration the 
reports submitted under subsection (d)(2), including any related report 
submitted by an entity described in subsection (d)(2)(B), the Secretary 
shall submit to Congress a report proposing a national energy park 
development program, including any applicable recommendations of the 
Secretary.

SEC. 546. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated--
            (1) section 544 $2,000,000,000 for each of fiscal years 
        2007 through 2011, of which--
                    (A) not less than $1,000,000,000 shall be used for 
                grants for demonstration projects; and
                    (B) not less than $1,000,000,000 shall be used for 
                loan guarantees; and
            (2) this subtitle (other than section 544) such sums as are 
        necessary for each of fiscal years 2007 through 2011.

            Subtitle G--Strategic Gasoline and Fuel Reserve

SEC. 548. STRATEGIC GASOLINE AND FUEL RESERVE.

    (a) In General.--Title I of the Energy Policy and Conservation Act 
is amended by inserting after part D (42 U.S.C. 6250 et seq.) the 
following:

             ``PART V--STRATEGIC GASOLINE AND FUEL RESERVE

``SEC. 191. DEFINITIONS.

    ``In this part:
            ``(1) Gasoline.--The term `gasoline' means any finished 
        petroleum product or blendstock used as non-diesel automotive 
        fuel as determined by the Secretary to have the highest 
        fungibility in the selected region.
            ``(2) Reserve.--The term `Reserve' means the Strategic 
        Gasoline and Fuel Reserve established under section 192(a).

``SEC. 192. ESTABLISHMENT.

    ``(a) In General.--Notwithstanding any other provision of this Act, 
the Secretary shall establish, maintain, and operate a Strategic 
Gasoline and Fuel Reserve.
    ``(b) Not Component of Strategic Petroleum Reserve.--The Reserve is 
not a component of the Strategic Petroleum Reserve established under 
part B.
    ``(c) Capacity.--The Reserve shall contain at least--
            ``(1) 8,000,000 barrels of gasoline; and
            ``(2) 1,500,000 barrels of jet fuel.
    ``(d) Reserve Sites.--
            ``(1) Siting.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall determine not less 
        than 3 Reserve sites, and not more than 5 Reserve sites, 
        throughout the United States that are regionally strategic.
            ``(2) Operation.--The Reserve sites described in paragraph 
        (1) shall be operational not later than 3 years after the date 
        of enactment of this Act.
    ``(e) Authority.--In carrying out this part, the Secretary may--
            ``(1) construct, purchase, contract for, lease, or 
        otherwise acquire, in whole or in part, storage and related 
        facilities and storage services;
            ``(2) use, lease, maintain, sell, or otherwise dispose of 
        storage and related facilities acquired under this part;
            ``(3) acquire by purchase, exchange, lease, commercial 
        futures contract, or other means gasoline and fuel for storage 
        in the Reserve;
            ``(4) store gasoline and fuel in facilities not owned by 
        the United States; and
            ``(5) sell, exchange, or otherwise dispose of gasoline and 
        fuel from the Reserve, including to maintain--
                    ``(A) the quality or quantity of the gasoline or 
                fuel in the Reserve; or
                    ``(B) the operational capacity of the Reserve.
    ``(f) Fill Date.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall complete the process of filling the Reserve 
        under this section by March 1, 2010.
            ``(2) Extensions.--The Secretary may extend the due date 
        established under paragraph (1) if the Secretary determines 
        that filling the Reserve by that due date would cause--
                    ``(A) a significant price increase or supply 
                shortage; and
                    ``(B) an undue economic burden on the United 
                States.

``SEC. 193. RELEASE OF GASOLINE AND FUEL.

    ``(a) In General.--The Secretary shall release gasoline or fuel 
from the Reserve only if--
            ``(1) the Secretary finds that there is a severe fuel 
        supply disruption by determining that--
                    ``(A) a regional, national, or international supply 
                shortage of gasoline or fuel of significant scope and 
                duration has occurred;
                    ``(B) a substantial increase in the price of 
                gasoline or fuel has resulted from the shortage;
                    ``(C) the price increase is likely to cause a 
                significant adverse impact on the national or regional 
                economy; and
                    ``(D) releasing gasoline or fuel from the Reserve 
                would assist directly and significantly in reducing the 
                adverse impact of the shortage; or
            ``(2)(A) the Governor of a State submits to the Secretary a 
        written request for a release from the Reserve that contains a 
        finding that--
                    ``(i) a regional or statewide supply shortage of 
                gasoline or fuel of significant scope and duration has 
                occurred;
                    ``(ii) a substantial increase in the price of 
                gasoline or fuel has resulted from the shortage; and
                    ``(iii) the price increase is likely to cause a 
                significant adverse impact on the economy of the State; 
                and
            ``(B) the Secretary concurs with the findings of the 
        Governor under subparagraph (A) and determines that a release 
        from the Reserve--
                    ``(i) would mitigate gasoline or fuel price 
                volatility in the State or region; and
                    ``(ii) would not have an adverse effect on the 
                long-term economic viability of retail gasoline or fuel 
                markets in the State and adjacent States.
    ``(b) Procedure.--
            ``(1) Response of secretary.--The Secretary shall respond 
        to a request submitted under subsection (a)(2) not later than 5 
        days after receipt of the request by--
                    ``(A) approving the request;
                    ``(B) denying the request; or
                    ``(C) requesting additional supporting information.
            ``(2) Release.--The Secretary shall establish procedures 
        governing the release of gasoline or fuel from the Reserve in 
        accordance with this subsection.
            ``(3) Requirements.--
                    ``(A) Eligible entity.--In this paragraph, the term 
                `eligible entity' means an entity that is customarily 
                engaged in the sale or distribution or bulk storage of 
                gasoline or fuel.
                    ``(B) Sale or disposal from reserve.--The 
                procedures established under this subsection shall 
                provide that the Secretary may--
                            ``(i) sell gasoline or fuel from the 
                        Reserve to an eligible entity through a 
                        competitive process; or
                            ``(ii) enter into an exchange agreement 
                        with an eligible entity under which the 
                        Secretary receives--
                                    ``(I) a greater volume of gasoline 
                                or fuel as repayment from the eligible 
                                entity than the volume provided to the 
                                eligible entity; or
                                    ``(II) payment of the premium for 
                                the loan in cash, which may be placed 
                                in the Strategic Gasoline and Fuel 
                                Reserve Fund established under section 
                                195.
                    ``(C) Test sale authority.--The Secretary may 
                perform a test sale under this paragraph for up to 
                1,000,000 barrels.
    ``(c) Continuing Evaluation.--The Secretary shall conduct a 
continuing evaluation of the drawdown and sales procedures established 
under this section.

``SEC. 194. REPORTS.

    ``(a) Gasoline and Fuel.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall submit to Congress and 
the President a plan describing the manner in which the Department of 
Energy will perform--
            ``(1) the acquisition of storage and related facilities or 
        storage services for the Reserve, including the use of storage 
        facilities not currently in use or not currently used to 
        capacity;
            ``(2) the acquisition of gasoline and fuel for storage in 
        the Reserve;
            ``(3) the anticipated methods of disposition of gasoline 
        and fuel from the Reserve;
            ``(4) the estimated costs of establishment, maintenance, 
        and operation of the Reserve;
            ``(5) efforts that the Department will take to minimize any 
        potential need for future drawdowns from the Reserve; and
            ``(6) actions to ensure the quality of the gasoline and 
        fuel in the Reserve are maintained.
    ``(b) Natural Gas and Diesel.--Not later than 180 days after the 
date of enactment of this section, the Secretary shall submit to 
Congress a report describing the feasibility of creating a natural gas, 
diesel, and biofuels feedstock reserve similar to the Reserve under 
this part.
    ``(c) Private Sector Storage Capacity.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Secretary shall submit to 
        Congress a report describing--
                    ``(A) private sector storage capacity of refined 
                petroleum products; and
                    ``(B) how expansion of existing storage capacity 
                might alleviate short-term supply constraints and the 
                resulting impact on consumer prices without the need 
                for using releases from the Reserve.
            ``(2) Release; incentives.--In preparing the report 
        required under this subsection, the Secretary shall assess--
                    ``(A) under what conditions private sector storage 
                stocks should be released to moderate supply 
                disruptions and pricing impacts; and
                    ``(B) what incentives, if any, are necessary to 
                promote the development of increased private sector 
                storage capacity.

``SEC. 195. STRATEGIC GASOLINE AND FUEL RESERVE FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States a separate revolving fund, to be known as the `Strategic 
Gasoline and Fuel Reserve Fund' (referred to in this section as the 
`Fund'), consisting of--
            ``(1) such amounts as are appropriated to the Fund under 
        section 196; and
            ``(2) all receipts from the sale, exchange, or disposition 
        of gasoline or fuel from the Reserve or from leasing of 
        facilities or providing other services to the private sector in 
        connection with the Reserve, which shall be deposited in the 
        Fund on receipt.
    ``(b) Use of Fund.--The Secretary may make expenditures from the 
Fund, without further appropriation, for the operation and 
administration of the Reserve.
    ``(c) Administration of Fund.--
            ``(1) In general.--The Secretary of the Treasury shall--
                    ``(A) maintain the Fund; and
                    ``(B) as soon as practicable after the end of each 
                fiscal year and after consultation with the Secretary, 
                submit to Congress a report describing the financial 
                condition and operations of the Fund during the 
                preceding fiscal year.
            ``(2) Budget.--
                    ``(A) In general.--The Secretary shall submit the 
                budget for the Fund to the Office of Management and 
                Budget, along with the budget of the Department of 
                Energy.
                    ``(B) Contents.--The budget shall--
                            ``(i) consist of estimates made by the 
                        Secretary of expenditures from the Fund and 
                        other relevant financial matters for the 
                        succeeding 5 fiscal years; and
                            ``(ii) be included in the budget 
                        transmitted under section 1105(a) of title 31, 
                        United States Code.

``SEC. 196. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as are 
necessary to carry out this part, to remain available until 
expended.''.
    (b) Conforming Amendment.--The table of contents for title I of the 
Energy Policy and Conservation Act (42 U.S.C. 6201 note) is amended by 
striking the matter relating to the second part D (relating to 
expiration) and inserting the following:

             ``PART V--Strategic Gasoline and Fuel Reserve

``Sec. 191. Definitions.
``Sec. 192. Establishment.
``Sec. 193. Release of gasoline and fuel.
``Sec. 194. Reports.
``Sec. 195. Strategic Gasoline and Fuel Reserve Fund.
``Sec. 196. Authorization of appropriations.''.

   Subtitle H--Reports on United States Energy Emergency Preparedness

SEC. 551. POTENTIAL IMPACTS OF OIL SUPPLY SHOCK.

    (a) In General.--Not later than 60 days after the date of enactment 
of this Act, the President shall submit to Congress a report describing 
the potential impact on domestic prices of crude oil, residual fuel 
oil, and refined petroleum products of a disruption, for periods of 1 
week, 1 year, and 5 years, respectively, of not less than--
            (1) 30 percent of United States oil production;
            (2) 20 percent of United States refining capacity; and
            (3) 5 percent of global oil supplies.
    (b) Projections and Remedies.--The President shall include in the 
report under subsection (a)--
            (1) projections of the likely impact of each disruption 
        described in that subsection on the United States economy; and
            (2) detailed and prioritized recommendations for remedies 
        in response to each such disruption.

SEC. 552. PREVENTING FUTURE DISRUPTIONS.

    (a) In General.--The Secretary of Energy shall enter into a 
contract with the National Academy of Sciences under which the National 
Academy shall conduct a review of expenditures and activities carried 
out by each organization the total wholesale or retail United States 
sales of crude oil, gasoline, and petroleum distillates of which are in 
excess of $500,000,000 per year--
            (1) to protect the energy supply system of the United 
        States from--
                    (A) terrorist attacks;
                    (B) international supply disruptions; and
                    (C) natural disasters; and
            (2) to ensure a stable and reasonably-priced supply of 
        those products to consumers in the United States.
    (b) Inclusions.--The review under subsection (a) shall include an 
assessment of the preparations of each organization described in that 
subsection with respect to the forecasted period of more frequent and 
more intense hurricane activity in the Gulf of Mexico and other 
vulnerable coastal areas.

    Subtitle J--Impacts of Act on Reducing Greenhouse Gas Emissions

SEC. 561. CLIMATE CHANGE AND ENERGY POLICY FEEDBACK LOOP.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Secretary of Energy, in consultation with the 
Secretary of Commerce and the Administrator of the Environmental 
Protection Agency, shall submit to Congress a report on the probable 
effects of this Act and the amendments made by this Act during calendar 
years 2010, 2015, and 2020 on--
            (1) total greenhouse gas emissions, nationally and by 
        sector;
            (2) impacts on land, water, and ecosystems of expanded 
        coal, biofuels, oil, and natural gas extraction and production;
            (3) job creation; and
            (4) the economy.
    (b) Inclusions.--The report shall include recommendations for 
amendments to this Act and other relevant laws to ensure that the 
effect of this Act will be to reduce total domestic greenhouse gas 
emissions below levels projected in the report of the Energy 
Information Administration entitled ``Annual Energy Outlook 2006'' for 
each of calendar years 2010, 2015, and 2020.

                Subtitle K--Energy Fairness for America

SEC. 571. ELIMINATION OF DEDUCTION FOR INTANGIBLE DRILLING AND 
              DEVELOPMENT COSTS FOR MAJOR OIL COMPANIES.

    (a) In General.--Section 263(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new sentences: 
``This subsection shall not apply during any taxable year with respect 
to a major integrated oil company (as defined in section 43(f)(2)) if 
during the preceding taxable year for the production of oil, the 
average price of crude oil in the United States is greater than $34.71 
per barrel, and for the production of natural gas, the average wellhead 
price of natural gas in the United States is greater than $4.34 per 
1,000 cubic feet. For purposes of the preceding sentence, the Secretary 
shall determine average prices, taking into consideration the most 
recent data reported by the Energy Information Administration. For 
taxable years beginning after December 31, 2007, each dollar amount 
specified in this subsection shall be adjusted to reflect changes for 
the 12-month period ending the preceding September 30 in the Consumer 
Price Index for All Urban Consumers published by the Bureau of Labor 
Statistics of the Department of Labor.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 572. ELIMINATION OF ENHANCED OIL RECOVERY CREDIT FOR MAJOR OIL 
              COMPANIES.

    (a) In General.--Section 43 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(f) Nonapplication of Section.--
            ``(1) In general.--This section shall not apply during any 
        taxable year with respect to a major integrated oil company if 
        during the preceding taxable year for the production of oil, 
        the average price of crude oil in the United States is greater 
        than $34.71 per barrel. For purposes of the preceding sentence, 
        the Secretary shall determine average prices, taking into 
        consideration the most recent data reported by the Energy 
        Information Administration. For taxable years beginning after 
        December 31, 2007, the dollar amount specified in this 
        paragraph shall be adjusted to reflect changes for the 12-month 
        period ending the preceding September 30 in the Consumer Price 
        Index for All Urban Consumers published by the Bureau of Labor 
        Statistics of the Department of Labor.
            ``(2) Major integrated oil company.--For purposes of this 
        subsection, the term `major integrated oil company' means, with 
        respect to any taxable year, a producer of crude oil--
                    ``(A) which has an average daily worldwide 
                production of crude oil of at least 500,000 barrels for 
                the taxable year,
                    ``(B) which had gross receipts in excess of 
                $1,000,000,000 for its last taxable year ending during 
                calendar year 2005, and
                    ``(C) to whom subsection (c) of section 613A does 
                not apply by reason of paragraph (4) of section 
                613A(d), determined--
                            ``(i) by substituting `15 percent' for `5 
                        percent' each place it occurs in paragraph (3) 
                        of section 613A(d), and
                            ``(ii) without regard to whether subsection 
                        (c) of section 613A does not apply by reason of 
                        paragraph (2) of section 613A(d).
        For purposes of subparagraphs (A) and (B), all persons treated 
        as a single employer under subsections (a) and (b) of section 
        52 shall be treated as 1 person and, in case of a short taxable 
        year, the rule under section 448(c)(3)(B) shall apply.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 573. OIL AND GAS ROYALTY-RELATED AMENDMENTS.

    (a) Repeal.--Sections 344 through 346 of the Energy Policy Act of 
2005 (42 U.S.C. 15902 et seq.) are repealed.
    (b) Termination of Alaska Offshore Royalty Suspension.--Section 
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(B)) is amended by striking ``and in the Planning Areas 
offshore Alaska''.

SEC. 574. EXTENSION OF ELECTION TO EXPENSE CERTAIN REFINERIES.

    (a) Extension.--
            (1) In general.--Section 179C(c)(1) of the Internal Revenue 
        Code of 1986 (defining qualified refinery property) is 
        amended--
                    (A) by striking ``and before January 1, 2012'' in 
                subparagraph (B) and inserting ``and, in the case of 
                any qualified refinery described in subsection (d)(1), 
                before January 1, 2012'', and
                    (B) by inserting ``if described in subsection 
                (d)(1)'' after ``of which'' in subparagraph (F)(i).
            (2) Conforming amendment.--Subsection (d) of section 179C 
        of the Internal Revenue Code of 1986 is amended to read as 
        follows:
    ``(d) Qualified Refinery.--For purposes of this section, the term 
`qualified refinery' means any refinery located in the United States 
which is designed to serve the primary purpose of processing liquid 
fuel from--
            ``(1) crude oil, or
            ``(2) qualified fuels (as defined in section 45K(c)).''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect as if included in the amendment made by 
        section 1323(a) of the Energy Policy Act of 2005.
    (b) Nonapplication for Major Oil Companies.--
            (1) In general.--Section 179C of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(i) Nonapplication of Section.--
            ``(1) In general.--This section shall not apply during any 
        taxable year with respect to a major integrated oil company if 
        during the preceding taxable year for the production of oil, 
        the average price of crude oil in the United States is greater 
        than $34.71 per barrel. For purposes of the preceding sentence, 
        the Secretary shall determine average prices, taking into 
        consideration the most recent data reported by the Energy 
        Information Administration. For taxable years beginning after 
        December 31, 2007, the dollar amount specified in this 
        paragraph shall be adjusted to reflect changes for the 12-month 
        period ending the preceding September 30 in the Consumer Price 
        Index for All Urban Consumers published by the Bureau of Labor 
        Statistics of the Department of Labor.
            ``(2) Major integrated oil company.--For purposes of this 
        subsection, the term `major integrated oil company' means, with 
        respect to any taxable year, a producer of crude oil--
                    ``(A) which has an average daily worldwide 
                production of crude oil of at least 500,000 barrels for 
                the taxable year,
                    ``(B) which had gross receipts in excess of 
                $1,000,000,000 for its last taxable year ending during 
                calendar year 2005, and
                    ``(C) to whom subsection (c) of section 613A does 
                not apply by reason of paragraph (4) of section 
                613A(d), determined--
                            ``(i) by substituting `15 percent' for `5 
                        percent' each place it occurs in paragraph (3) 
                        of section 613A(d), and
                            ``(ii) without regard to whether subsection 
                        (c) of section 613A does not apply by reason of 
                        paragraph (2) of section 613A(d).
        For purposes of subparagraphs (A) and (B), all persons treated 
        as a single employer under subsections (a) and (b) of section 
        52 shall be treated as 1 person and, in case of a short taxable 
        year, the rule under section 448(c)(3)(B) shall apply.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.

SEC. 575. ELIMINATION OF AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL 
              EXPENDITURES FOR MAJOR OIL COMPANIES.

    (a) In General.--Section 167(h) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(5) Nonapplication of section.--
                    ``(A) In general.--This subsection shall not apply 
                during any taxable year with respect to a major 
                integrated oil company if during the preceding taxable 
                year for the production of oil, the average price of 
                crude oil in the United States is greater than $34.71 
                per barrel, and for the production of natural gas, the 
                average wellhead price of natural gas in the United 
                States is greater than $4.34 per 1,000 cubic feet. For 
                purposes of the preceding sentence, the Secretary shall 
                determine average prices, taking into consideration the 
                most recent data reported by the Energy Information 
                Administration. For taxable years beginning after 
                December 31, 2007, each dollar amount specified in this 
                subparagraph shall be adjusted to reflect changes for 
                the 12-month period ending the preceding September 30 
                in the Consumer Price Index for All Urban Consumers 
                published by the Bureau of Labor Statistics of the 
                Department of Labor.
                    ``(B) Major integrated oil company.--For purposes 
                of this paragraph, the term `major integrated oil 
                company' means, with respect to any taxable year, a 
                producer of crude oil--
                            ``(i) which has an average daily worldwide 
                        production of crude oil of at least 500,000 
                        barrels for the taxable year,
                            ``(ii) which had gross receipts in excess 
                        of $1,000,000,000 for its last taxable year 
                        ending during calendar year 2005, and
                            ``(iii) to whom subsection (c) of section 
                        613A does not apply by reason of paragraph (4) 
                        of section 613A(d), determined--
                                    ``(I) by substituting `15 percent' 
                                for `5 percent' each place it occurs in 
                                paragraph (3) of section 613A(d), and
                                    ``(II) without regard to whether 
                                subsection (c) of section 613A does not 
                                apply by reason of paragraph (2) of 
                                section 613A(d).
                For purposes of subparagraphs (A) and (B), all persons 
                treated as a single employer under subsections (a) and 
                (b) of section 52 shall be treated as 1 person and, in 
                case of a short taxable year, the rule under section 
                448(c)(3)(B) shall apply.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on and after the date of the enactment of this Act.

SEC. 576. REVALUATION OF LIFO INVENTORIES OF MAJOR INTEGRATED OIL 
              COMPANIES.

    (a) General Rule.--Notwithstanding any other provision of law, if a 
taxpayer is a major integrated oil company for its last taxable year 
ending in calendar year 2005, the taxpayer shall--
            (1) increase, effective as of the close of such taxable 
        year, the value of each historic LIFO layer of inventories of 
        crude oil, natural gas, or any other petroleum product (within 
        the meaning of section 4611) by the layer adjustment amount, 
        and
            (2) decrease its cost of goods sold for such taxable year 
        by the aggregate amount of the increases under paragraph (1).
If the aggregate amount of the increases under paragraph (1) exceed the 
taxpayer's cost of goods sold for such taxable year, the taxpayer's 
gross income for such taxable year shall be increased by the amount of 
such excess.
    (b) Layer Adjustment Amount.--For purposes of this section--
            (1) In general.--The term ``layer adjustment amount'' 
        means, with respect to any historic LIFO layer, the product 
        of--
                    (A) $18.75, and
                    (B) the number of barrels of crude oil (or in the 
                case of natural gas or other petroleum products, the 
                number of barrel-of-oil equivalents) represented by the 
                layer.
            (2) Barrel-of-oil equivalent.--The term ``barrel-of-oil 
        equivalent'' has the meaning given such term by section 
        29(d)(5) (as in effect before its redesignation by the Energy 
        Tax Incentives Act of 2005).
    (c) Application of Requirement.--
            (1) No change in method of accounting.--Any adjustment 
        required by this section shall not be treated as a change in 
        method of accounting.
            (2) Underpayments of estimated tax.--No addition to the tax 
        shall be made under section 6655 of the Internal Revenue Code 
        of 1986 (relating to failure by corporation to pay estimated 
        tax) with respect to any underpayment of an installment 
        required to be paid with respect to the taxable year described 
        in subsection (a) to the extent such underpayment was created 
        or increased by this section.
    (d) Major Integrated Oil Company.--For purposes of this section, 
the term ``major integrated oil company'' has the meaning given such 
term by section 43(f)(2) of the Internal Revenue Code of 1986.

SEC. 577. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO MAJOR 
              INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY 
              TAXPAYERS.

    (a) In General.--Section 901 of the Internal Revenue Code of 1986 
(relating to credit for taxes of foreign countries and of possessions 
of the United States) is amended by redesignating subsection (m) as (n) 
and by inserting after subsection (l) the following new subsection:
    ``(m) Special Rules Relating to Major Integrated Oil Companies 
Which Are Dual Capacity Taxpayers.--
            ``(1) General rule.--Notwithstanding any other provision of 
        this chapter, any amount paid or accrued by a dual capacity 
        taxpayer which is a major integrated oil company to a foreign 
        country or possession of the United States for any period shall 
        not be considered a tax--
                    ``(A) if, for such period, the foreign country or 
                possession does not impose a generally applicable 
                income tax, or
                    ``(B) to the extent such amount exceeds the amount 
                (determined in accordance with regulations) which--
                            ``(i) is paid by such dual capacity 
                        taxpayer pursuant to the generally applicable 
                        income tax imposed by the country or 
                        possession, or
                            ``(ii) would be paid if the generally 
                        applicable income tax imposed by the country or 
                        possession were applicable to such dual 
                        capacity taxpayer.
                Nothing in this paragraph shall be construed to imply 
                the proper treatment of any such amount not in excess 
                of the amount determined under subparagraph (B).
            ``(2) Dual capacity taxpayer.--For purposes of this 
        subsection, the term `dual capacity taxpayer' means, with 
        respect to any foreign country or possession of the United 
        States, a person who--
                    ``(A) is subject to a levy of such country or 
                possession, and
                    ``(B) receives (or will receive) directly or 
                indirectly a specific economic benefit (as determined 
                in accordance with regulations) from such country or 
                possession.
            ``(3) Generally applicable income tax.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `generally applicable 
                income tax' means an income tax (or a series of income 
                taxes) which is generally imposed under the laws of a 
                foreign country or possession on income derived from 
                the conduct of a trade or business within such country 
                or possession.
                    ``(B) Exceptions.--Such term shall not include a 
                tax unless it has substantial application, by its terms 
                and in practice, to--
                            ``(i) persons who are not dual capacity 
                        taxpayers, and
                            ``(ii) persons who are citizens or 
                        residents of the foreign country or possession.
            ``(4) Major integrated oil company.--For purposes of this 
        subsection, the term `major integrated oil company' has the 
        meaning given such term by section 43(f)(2).''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxes paid or accrued in taxable years beginning after 
        the date of the enactment of this Act.
            (2) Contrary treaty obligations upheld.--The amendments 
        made by this section shall not apply to the extent contrary to 
        any treaty obligation of the United States.

SEC. 578. DENIAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC 
              PRODUCTION OF OIL, NATURAL GAS, OR PRIMARY PRODUCTS 
              THEREOF.

    (a) In General.--Subparagraph (B) of section 199(c)(4) of the 
Internal Revenue Code of 1986 (relating to exceptions) is amended by 
striking ``or'' at the end of clause (ii), by striking the period at 
the end of clause (iii) and inserting ``, or'', and by inserting after 
clause (iii) the following new clause:
                            ``(iv) in the case of any major integrated 
                        oil company (as defined in section 43(f)(2)), 
                        the production, refining, processing, 
                        transportation, or distribution of oil, natural 
                        gas, or any primary product thereof during any 
                        taxable year described in section 
                        167(h)(5)(A).''.
    (b) Conforming Amendments.--Section 199(c)(4) of the Internal 
Revenue Code of 1986 is amended--
            (1) in subparagraph (A)(i)(III) by striking ``electricity, 
        natural gas,'' and inserting ``electricity'', and
            (2) in subparagraph (B)(ii) by striking ``electricity, 
        natural gas,'' and inserting ``electricity''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 579. RULES RELATING TO FOREIGN OIL AND GAS INCOME.

    (a) Separate Basket for Foreign Tax Credit.--
            (1) Years before 2007.--Paragraph (1) of section 904(d) of 
        the Internal Revenue Code of 1986 (relating to separate 
        application of section with respect to certain categories of 
        income), as in effect for years beginning before 2007, is 
        amended by striking `and' at the end of subparagraph (H), by 
        redesignating subparagraph (I) as subparagraph (J), and by 
        inserting after subparagraph (H) the following new 
        subparagraph:
                    ``(I) foreign oil and gas income, and''.
            (2) 2007 and after.--Paragraph (1) of section 904(d) of 
        such Code, as in effect for years beginning after 2006, is 
        amended by striking ``and'' at the end of subparagraph (A), by 
        striking the period at the end of subparagraph (B) and 
        inserting ``, and'', and by adding at the end the following:
                    ``(C) foreign oil and gas income.''.
    (b) Definition.--
            (1) Years before 2007.--Paragraph (2) of section 904(d) of 
        the Internal Revenue Code of 1986, as in effect for years 
        beginning before 2007, is amended by redesignating 
        subparagraphs (H) and (I) as subparagraphs (I) and (J), 
        respectively, and by inserting after subparagraph (G) the 
        following new subparagraph:
                    ``(H) Foreign oil and gas income.--The term 
                `foreign oil and gas income' has the meaning given such 
                term by section 954(g).''.
            (2) 2007 and after.--Section 904(d)(2) of such Code, as in 
        effect for years after 2006, is amended by redesignating 
        subparagraphs (J) and (K) as subparagraphs (K) and (L) and by 
        inserting after subparagraph (I) the following:
                    ``(J) Foreign oil and gas income.--For purposes of 
                this section--
                            ``(i) In general.--The term `foreign oil 
                        and gas income' has the meaning given such term 
                        by section 954(g).
                            ``(ii) Coordination.--Passive category 
                        income and general category income shall not 
                        include foreign oil and gas income (as so 
                        defined).''.
    (c) Conforming Amendments.--
            (1) Section 904(d)(3)(F)(i) of the Internal Revenue Code of 
        1986 is amended by striking ``or (E)'' and inserting ``(E), or 
        (I)''.
            (2) Section 907(a) of such Code is hereby repealed.
            (3) Section 907(c)(4) of such Code is hereby repealed.
            (4) Section 907(f) of such Code is hereby repealed.
    (d) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after the date of the 
        enactment of this Act.
            (2) Years after 2006.--The amendments made by paragraphs 
        (1)(B) and (2)(B) shall apply to taxable years beginning after 
        December 31, 2006.
            (3) Transitional rules.--
                    (A) Separate basket treatment.--Any taxes paid or 
                accrued in a taxable year beginning on or before the 
                date of the enactment of this Act, with respect to 
                income which was described in subparagraph (I) of 
                section 904(d)(1) of such Code (as in effect on the day 
                before the date of the enactment of this Act), shall be 
                treated as taxes paid or accrued with respect to 
                foreign oil and gas income to the extent the taxpayer 
                establishes to the satisfaction of the Secretary of the 
                Treasury that such taxes were paid or accrued with 
                respect to foreign oil and gas income.
                    (B) Carryovers.--Any unused oil and gas extraction 
                taxes which under section 907(f) of such Code (as so in 
                effect) would have been allowable as a carryover to the 
                taxpayer's first taxable year beginning after the date 
                of the enactment of this Act (without regard to the 
                limitation of paragraph (2) of such section 907(f) for 
                first taxable year) shall be allowed as carryovers 
                under section 904(c) of such Code in the same manner as 
                if such taxes were unused taxes under such section 
                904(c) with respect to foreign oil and gas extraction 
                income.
                    (C) Losses.--The amendment made by subsection 
                (c)(3) shall not apply to foreign oil and gas 
                extraction losses arising in taxable years beginning on 
                or before the date of the enactment of this Act.

SEC. 580. ELIMINATION OF DEFERRAL FOR FOREIGN OIL AND GAS EXTRACTION 
              INCOME.

    (a) General Rule.--Paragraph (1) of section 954(g) of the Internal 
Revenue Code of 1986 (defining foreign base company oil related income) 
is amended to read as follows:
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `foreign oil and gas income' means, in the 
        case of any major integrated oil company (as defined in section 
        43(f)(2)) during any taxable year described in section 
        167(h)(5)(A), any income of a kind which would be taken into 
        account in determining the amount of--
                    ``(A) foreign oil and gas extraction income (as 
                defined in section 907(c)), or
                    ``(B) foreign oil related income (as defined in 
                section 907(c)).''.
    (b) Conforming Amendments.--
            (1) Subsections (a)(5), (b)(5), and (b)(6) of section 954, 
        and section 952(c)(1)(B)(ii)(I) of the Internal Revenue Code of 
        1986, are each amended by striking ``base company oil related 
        income'' each place it appears (including in the heading of 
        subsection (b)(8)) and inserting ``oil and gas income''.
            (2) Subsection (b)(4) of section 954 of such Code is 
        amended by striking ``base company oil-related income'' and 
        inserting ``oil and gas income''.
            (3) The subsection heading for subsection (g) of section 
        954 of such Code is amended by striking ``Foreign Base Company 
        Oil Related Income'' and inserting ``Foreign Oil and Gas 
        Income''.
            (4) Subparagraph (A) of section 954(g)(2) of such Code is 
        amended by striking ``foreign base company oil related income'' 
        and inserting ``foreign oil and gas income''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after the date 
of the enactment of this Act, and to taxable years of United States 
shareholders ending with or within such taxable years of foreign 
corporations.

Subtitle L--Protection and Retention of Value of Publicly-Owned Energy 
                               Resources

SEC. 591. SUSPENSION OF ROYALTY RELIEF.

    (a) Requirement.--Subject to subsection (b), the Secretary of the 
Interior (referred to in this subtitle as the ``Secretary'') shall 
suspend the application of any provision of Federal law under which a 
person would otherwise be provided relief from a requirement to pay a 
royalty for the production of oil or natural gas from Federal land 
(including submerged land) occurring after the date of enactment of 
this Act during a period in which--
            (1) for the production of oil, the average price of crude 
        oil in the United States during the 4-week period immediately 
        preceding the suspension is greater than $34.71 per barrel; and
            (2) for the production of natural gas, the average wellhead 
        price of natural gas in the United States during the 4-week 
        period immediately preceding the suspension is greater than 
        $4.34 per 1,000 cubic feet.
    (b) Determination of Average Prices.--
            (1) Data.--For purposes of subsection (a), the Secretary 
        shall determine average prices, taking into consideration the 
        most recent data reported by the Energy Information 
        Administration.
            (2) Adjustment.--For fiscal year 2008 and each subsequent 
        fiscal year, each dollar amount specified in subsection (a) 
        shall be adjusted to reflect changes for the 12-month period 
        ending the preceding November 30 in the Consumer Price Index 
        for All Urban Consumers published by the Bureau of Labor 
        Statistics of the Department of Labor.

SEC. 592. RENEGOTIATION OF EXISTING LEASES.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary shall make a determination regarding the 
ability of the Secretary to renegotiate leases that--
            (1) are in effect prior to the date of enactment of this 
        Act;
            (2) authorize the production of oil or natural gas on 
        Federal land; and
            (3) do not contain terms at least equal to the royalty 
        relief price thresholds described in section 591.
    (b) Affirmative Determination.--
            (1) In general.--If the Secretary determines that the 
        Secretary has the authority to renegotiate leases described in 
        subsection (a), the Secretary shall immediately offer to 
        renegotiate the terms of those leases to include the royalty 
        relief price thresholds described in section 591.
            (2) Failure to renegotiate.--If a lessee fails to 
        renegotiate under paragraph (1), the Secretary shall preclude 
        that lessee from--
                    (A) entering into new leases; or
                    (B) obtaining other existing leases or interests in 
                leases.
    (c) Negative Determination.--If the Secretary determines that the 
Secretary does not have the authority to renegotiate leases described 
in subsection (a), the Secretary shall immediately submit to Congress 
recommendations for changes to law that will--
            (1) provide the authority necessary; or
            (2) produce the same level of revenue from leases for the 
        production of oil and gas from Federal land that will otherwise 
        be lost due to the failure of lessees to renegotiate and modify 
        the terms of existing leases as described in subsection (b)(1).
                                 <all>