110 HR 1945 IH: Energy For Our Future
U.S. House of Representatives
2007-04-19
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited
as the Energy For Our Future
Act
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Save oil
Sec. 101. Help consumers buy more fuel efficient
cars.
Sec. 102. Energy efficient motor vehicles manufacturing
credit.
Sec. 103. Transit-oriented development corridors.
Sec. 104. Automobile Fuel Economy Standards.
Sec. 105. Inclusion of sports utility vehicles in limitation on
depreciation of certain luxury automobiles.
Sec. 106. Fuel efficiency standards for replacement
tires.
Sec. 107. Heavy duty vehicle fuel economy
requirements.
Title II—Reduce Heat and Electric Bills
Subtitle A—General programs
Sec. 201. Weatherization assistance.
Sec. 202. Energy Star programs.
Sec. 203. Renewable electricity production credit.
Sec. 204. Efficiency resource standard.
Sec. 205. Federal renewable portfolio standard.
Sec. 206. Net metering.
Subtitle B—Energy Efficiency Incentive
Sec. 211. Performance based energy improvements for
non-business property.
Sec. 212. Extension and modification of credit for nonbusiness
energy property.
Sec. 213. Extension and clarification of new energy efficient
home credit.
Sec. 214. Extension and modification of deduction for energy
efficient commercial buildings.
Sec. 215. Deduction for energy efficient low-rise
buildings.
Sec. 216. Energy efficient property deduction.
Sec. 217. Credit for energy savings certifications.
Title III—Save Tax Payers Money
Sec. 301. Repeal of certain provisions of the Energy Policy Act
of 2005.
Sec. 302. Repeal of certain tax provisions of the Energy Policy
Act of 2005.
Title IV—State and Local Authority
Sec. 401. State consumer product energy efficiency
standards.
Sec. 402. Appeals from consistency determinations under Coastal
Zone Management Act of 1972.
Sec. 403. Siting of interstate electric transmission
facilities.
Sec. 404. New natural gas storage facilities.
Sec. 405. Process coordination; hearings; rules of
procedure.
Sec. 406. Repeal of preemption of State law relating to
automobile fuel economy standards.
Title V—Renewable Energy Research and Development
Sec. 501. Advanced biofuel technologies.
Sec. 502. Advanced hydrogen storage technologies.
Sec. 503. Advanced solar photovoltaic technologies.
Sec. 504. Advanced wind energy technologies.
Sec. 505. Continuing programs.
Sec. 506. Plug-in hybrid electric vehicle technology
program.
Sec. 507. Photovoltaic demonstration program.
<enum>I</enum><header>Save
oil</header>
<section id="H68D654C4650F4FAFA39212F27FE2166E" section-type="subsequent-section"><enum>101.</enum><header>Help consumers buy
more fuel efficient cars</header>
<subsection id="HD76606B4BFB54951A8C441B4D809AF64"><enum>(a)</enum><header>Repeal of limit
on number of cars eligible for credit</header><text display-inline="yes-display-inline">Section 30B of the Internal Revenue Code of
1986 (relating to alternative motor vehicle credit) is amended by striking
subsection (f).</text>
</subsection><subsection id="H94E17CC8A96C47F99BE96E92175C621E"><enum>(b)</enum><header>Emissions
standards</header><text display-inline="yes-display-inline">Clause (iv) of
section 30B(c)(3)(A) of such Code is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0CBB0B5F0A1B4848A1C43ED17B22DF00" style="OLC">
<clause id="HE2EC7AE41C6B4811AD3330781B17A376"><enum>(iv)</enum><text display-inline="yes-display-inline">for 2004 and later model vehicles, has
received a certificate that such vehicle meets or exceeds the Bin 5 Tier II
emission standard established in regulations prescribed by the Administrator of
the Environmental Protection Agency under section 202(i) of the Clean Air Act
for that make and model year
vehicle,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H4542ED100DA04103ABA8C120009E317B"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall take effect as if included in the amendments made by section
1341(a) of the Energy Tax Incentives Act of 2005.</text>
</subsection></section><section display-inline="no-display-inline" id="H9C9ED3D70F0F40668245B49EB5B92FAC" section-type="subsequent-section"><enum>102.</enum><header>Energy efficient
motor vehicles manufacturing credit</header>
<subsection id="H5962C8AECBF44CFD96C71C23E72103BC"><enum>(a)</enum><header>In
General</header><text>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:</text>
<quoted-block id="H4DC2CDD1B3464AA783F9A5CB9E71F49B">
<section id="HCD0A1B11CF804B3AA4A08203CDA0F7C9"><enum>30D.</enum><header>Energy
efficient motor vehicles manufacturing credit</header>
<subsection id="H7867B4CFCC0A40ABBC00D1EA21A934D2"><enum>(a)</enum><header>Credit
allowed</header><text>In the case of an eligible taxpayer, subject to a credit
allocation under subsection (e) to such eligible taxpayer, there shall be
allowed as a credit against the tax imposed by this chapter for the taxable
year to an amount equal to the sum of—</text>
<paragraph id="HEDB1E7B7BF3F4A2C9C2B6992ADAE66D0"><enum>(1)</enum><text>the initial
investment credit determined under subsection (b) for the taxable year,</text>
</paragraph><paragraph id="H890D61E345F44EB2B658C834E1DD65B7"><enum>(2)</enum><text>the fuel economy
achievement credit determined under subsection (c) for such taxable year,
and</text>
</paragraph><paragraph id="H4CF4420CEAA54184850386F2EA015BFA"><enum>(3)</enum><text>the eligible
components R&D credit determined under subsection (d) for such taxable
year.</text>
</paragraph></subsection><subsection id="H122B887F2B32470B977C94EBB7628452"><enum>(b)</enum><header>Initial
investment credit</header><text>For purposes of this section, the initial
investment credit is equal to 20 percent of the qualified investment of an
eligible taxpayer with respect to energy efficient motor vehicles during the
taxable year beginning in 2008.</text>
</subsection><subsection id="HB9AA6BC4E373485996960710E6C5A9AE"><enum>(c)</enum><header>Fuel economy
achievement credit</header><text>For purposes of this section—</text>
<paragraph id="H92BD55862B48405CB2EA535E000000BA"><enum>(1)</enum><header>In
general</header><text>In the case of an eligible taxpayer who meets the
requirements of paragraph (2) for a model year ending in a taxable year
specified in the table contained in paragraph (3), the fuel economy achievement
credit for such taxable year is equal to 30 percent of the sum of—</text>
<subparagraph id="H5E8E0B9AB89D4F178421F09CD5C88D57"><enum>(A)</enum><text>at the election of
the eligible taxpayer, such qualified investment for any preceding taxable year
beginning after 2007 if such taxable year has not previously been taken into
account under this subsection by such taxpayer, plus</text>
</subparagraph><subparagraph id="H569131E3A3F743AB9D5EF336AFD195F"><enum>(B)</enum><text>at the election of
the eligible taxpayer, the qualified investment with respect to energy
efficient motor vehicles of the eligible taxpayer for the taxable year
beginning in 2017.</text>
</subparagraph></paragraph><paragraph id="H33C24F45A6D145719D0886C9D143E648"><enum>(2)</enum><header>Demonstrated
combined fleet economy improvements</header><text>The requirements of this
paragraph are met for any model year ending in a taxable year if the eligible
taxpayer can demonstrate to the satisfaction of the Secretary that the
percentage by which the taxpayer's overall combined fuel economy standard for
the taxpayer's vehicle fleet for such model year exceeds such standard for such
taxpayer's 2007 model year as reported to the National Highway Traffic Safety
Administration under <external-xref legal-doc="usc" parsable-cite="usc/49/32907">section 32907</external-xref> of title 49, United States Code, is not less
than the percentage determined for such model year under paragraph (3).</text>
</paragraph><paragraph id="H9F0BEEC1488348EDBD1DEA00FBBF3B21"><enum>(3)</enum><header>Percentage
increase</header><text>The percentage determined under this paragraph for any
taxable year is equal to—</text>
<table align-to-level="section" blank-lines-before="1" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" subformat="S6211" table-type="subformat-2-Flush-Hang-Box-Right-Col-Fig">
<tgroup cols="2"><colspec coldef="txt" colname="col1" colsep="0" colwidth="275" min-data-value="0"></colspec><colspec coldef="txt" colname="col2" colsep="0" colwidth="100" min-data-value="0"></colspec>
<thead>
<row><entry align="left" colname="I49" rowsep="0"><bold>Model
year ending in</bold></entry><entry align="right" colname="I50" rowsep="0">Percentage</entry>
</row>
<row><entry align="left" colname="I49" rowsep="0">taxable
year</entry><entry align="right" colname="I50" rowsep="0"><bold>increase</bold></entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2010</entry><entry align="right" colname="I07" rowsep="0">5</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2011</entry><entry align="right" colname="I07" rowsep="0">10</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2012</entry><entry align="right" colname="I07" rowsep="0">15</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="I07" rowsep="0">20</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2014</entry><entry align="right" colname="I07" rowsep="0">27.5</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2015</entry><entry align="right" colname="I07" rowsep="0">35</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2016</entry><entry align="right" colname="I07" rowsep="0">42.5</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2017</entry><entry align="right" colname="I07" rowsep="0">50.</entry>
</row>
</tbody>
</tgroup>
</table>
</paragraph></subsection><subsection id="H2A7AE27273CE483A82F680ACD0FD87E4"><enum>(d)</enum><header>Eligible
components R&D credit</header><text>For purposes of this section, the
eligible R&D credit for any taxable year is equal to 30 percent of the
research and development costs paid or incurred by an eligible taxpayer for
such taxable year with respect to eligible components used or to be used in the
manufacture of energy efficient motor vehicles.</text>
</subsection><subsection id="HC119723F9DAF4B34A5E2B7E16BF719F8"><enum>(e)</enum><header>Limitation</header>
<paragraph id="HE5A9CD4CC7E046E6B73CD824288269EC"><enum>(1)</enum><header>Initial
investment credit and fuel economy achievement credit</header><text>Subject to
paragraph (2), the aggregate amount of initial investment credits and fuel
economy achievement credits allowed under subsection (a) for any taxable year
beginning in a calendar year after 2007 shall be allocated by the Secretary
among all eligible taxpayers—</text>
<subparagraph id="H31A4C8423E404E87A5EED219D6B3D4B5"><enum>(A)</enum><text>based on each
eligible taxpayer's percentage of the total qualified investment of all such
taxpayers, and</text>
</subparagraph><subparagraph id="H5F1067D7F103466FB2AF3427E07F215"><enum>(B)</enum><text>such that such
aggregate amount does not exceed—</text>
<clause id="H4B7118E544264E3FB25D5200BF59EC7E"><enum>(i)</enum><text>$1,000,000,000,
plus</text>
</clause><clause id="HC9D16DA2187A49AA88C1728496879CD1"><enum>(ii)</enum><text>any amount of
credit unallocated during any preceding calendar year.</text>
</clause></subparagraph></paragraph><paragraph id="H92CB5A8ED36C4F098540773E19C1DEE6"><enum>(2)</enum><header>Eligible
components R&D credit</header><text>Of the dollar amount available for
allocation under paragraph (1) for any taxable year, 10 percent of such amount
shall be allocated in the same manner by the Secretary among all eligible
taxpayers with respect to the eligible components R&D credit.</text>
</paragraph></subsection><subsection id="HBE125D2A53DC4C91A23C3B38B75351C"><enum>(f)</enum><header>Qualified
investment</header><text>For purposes of this section—</text>
<paragraph id="HE00ED2A9BB9641A9AC8C55C4EB36781"><enum>(1)</enum><header>In
general</header><text>The qualified investment for any taxable year is equal to
the incremental costs incurred during such taxable year—</text>
<subparagraph id="H36AD36B818E64ED400269995D6DB4E4"><enum>(A)</enum><text>to re-equip or
expand any manufacturing facility of the eligible taxpayer to produce energy
efficient motor vehicles or to produce eligible components, and</text>
</subparagraph><subparagraph id="H74313B9FE40640A4B0786239140076EF"><enum>(B)</enum><text>for engineering
integration of such vehicles and components as described in subsection
(h).</text>
</subparagraph></paragraph><paragraph id="H7C98697683B74E8DA6DEAD144C003C19"><enum>(2)</enum><header>Attribution
rules</header><text>In the event a facility of the eligible taxpayer produces
both energy efficient motor vehicles and conventional motor vehicles, or
eligible and non-eligible components, only the qualified investment
attributable to production of energy efficient motor vehicles and the research
and development costs attributable to eligible components shall be taken into
account.</text>
</paragraph></subsection><subsection id="HE47658423F7840198656A645F47DBCBD"><enum>(g)</enum><header>Energy efficient
motor vehicles and eligible components</header><text>For purposes of this
section—</text>
<paragraph id="HD82D68A7BCC84F7D96009EBA389E4400"><enum>(1)</enum><header>Energy efficient
motor vehicle</header><text>The term <term>energy efficient motor
vehicle</term> means—</text>
<subparagraph id="H96B3EADE24C84EF4B6C003B77C19ABA3"><enum>(A)</enum><text>any new advanced
lean burn technology motor vehicle (as defined in section 30B(c)(3) determined
without regard to subparagraph (A)(iv)(II) thereof or the weight limitation
under subparagraph (A)(iv)(I) thereof),</text>
</subparagraph><subparagraph id="H82BFBDE8D0FC4E4BB1A7A0CE2F1D265"><enum>(B)</enum><text>any new qualified
hybrid motor vehicle (as defined in section 30B(d)(3)(A) determined without
regard to subparagraph (A)(ii)(II) thereof, the weight limitation under
subparagraph (A)(ii)(I) thereof, and subparagraph (A)(iv) thereof), or</text>
</subparagraph><subparagraph id="H9D9456E982924C518500AA931537DC8C"><enum>(C)</enum><text>any other new
technology motor vehicle identified by the Secretary as offering a substantial
increase in fuel economy.</text>
</subparagraph></paragraph><paragraph id="H0416D6F3EAAB483DB581C24149272224"><enum>(2)</enum><header>Eligible
components</header><text>The term <term>eligible component</term> means any
component inherent to any energy efficient motor vehicle, including—</text>
<subparagraph id="HDC21C7AF687D4EDDAB49280098DB7470"><enum>(A)</enum><text>with respect to
any gasoline-electric new qualified hybrid motor vehicle—</text>
<clause id="H8E99DF45280E48028D2C4C8B814ED92D"><enum>(i)</enum><text>electric motor or
generator,</text>
</clause><clause id="HAA6FC5C4B08D409DB97855C9ADE83C5"><enum>(ii)</enum><text>power split
device,</text>
</clause><clause id="H366D1C63B4894140A4C881DEFBDABA5"><enum>(iii)</enum><text>power control
unit,</text>
</clause><clause id="H2731E57DF86241D7B850C31F10CADE6C"><enum>(iv)</enum><text>power
controls,</text>
</clause><clause id="HD224FC0E797547349F239950874BC2DD"><enum>(v)</enum><text>integrated starter
generator, or</text>
</clause><clause id="H435A46754A4E40BD9500F84600283520"><enum>(vi)</enum><text>battery,</text>
</clause></subparagraph><subparagraph id="H8FAACEFEB0E04706B617EB5280EC12AC"><enum>(B)</enum><text>with respect to
any new advanced lean burn technology motor vehicle—</text>
<clause id="H84295C936D9D4040819492D46C83AB00"><enum>(i)</enum><text>diesel
engine,</text>
</clause><clause id="H02398197324445E784EC39651CF6CEB9"><enum>(ii)</enum><text>turbocharger,</text>
</clause><clause id="H709D9E6A44CE43FE8C428E7F1F23B93C"><enum>(iii)</enum><text>fuel injection
system, or</text>
</clause><clause id="HF38F1C7234394D4EB85EDAB58F02A78F"><enum>(iv)</enum><text>after-treatment
system, such as a particle filter or NOx absorber, and</text>
</clause></subparagraph><subparagraph id="H67B0E7252EE8490291505CA5688C78C4"><enum>(C)</enum><text>with respect to
any energy efficient motor vehicle, any other component approved by the
Secretary.</text>
</subparagraph></paragraph></subsection><subsection id="H8416D387E9354CE8B41B009CADE5F6AE"><enum>(h)</enum><header>Engineering
integration costs</header><text>For purposes of subsection (f)(1)(B), costs for
engineering integration are costs incurred prior to the market introduction of
energy efficient vehicles for engineering tasks related to—</text>
<paragraph id="H532140F0E1154E80BE28FA04ECED3BFF"><enum>(1)</enum><text>incorporating
eligible components into the design of energy efficient motor vehicles,
and</text>
</paragraph><paragraph id="H2C1FEB659A2B418B90567506FCE500A0"><enum>(2)</enum><text>designing new
tooling and equipment for production facilities which produce eligible
components or energy efficient motor vehicles.</text>
</paragraph></subsection><subsection id="H50F7A8BAB9F04E528D6F4E9583583096"><enum>(i)</enum><header>Eligible
taxpayer</header><text>For purposes of this section, the term <term>eligible
taxpayer</term> means, with respect to any taxable year, any taxpayer if more
than 25 percent of the taxpayer's gross receipts for the taxable year is
derived from the manufacture of motor vehicles or any component parts of such
vehicles.</text>
</subsection><subsection id="HEC8B07EFEF1C40DFB1F206E5E7DE6D3B"><enum>(j)</enum><header>Limitation based
on amount of tax</header><text>The credit allowed under subsection (a) for the
taxable year shall not exceed the excess of—</text>
<paragraph id="HCC84F1B29FEA4555BB8EF6783B524CDF"><enum>(1)</enum><text>the sum of—</text>
<subparagraph id="HD8132CDA81B44EAAAFE19E7C2E50053"><enum>(A)</enum><text>the regular tax
liability (as defined in section 26(b)) for such taxable year, plus</text>
</subparagraph><subparagraph id="HFE75D8C352F8487DB34500E06DD4CDB6"><enum>(B)</enum><text>the tax imposed by
section 55 for such taxable year, over</text>
</subparagraph></paragraph><paragraph id="H15068E01D83A416B857DE700EB4752B2"><enum>(2)</enum><text>the sum of the
credits allowable under subpart A and sections 27, 30, 30B, and 30C for the
taxable year.</text>
</paragraph></subsection><subsection id="HCEA57C92FEC64E4B971C6513003CA058"><enum>(k)</enum><header>Reduction in
basis</header><text>For purposes of this subtitle, if a credit is allowed under
this section for any expenditure with respect to any property, the increase in
the basis of such property which would (but for this paragraph) result from
such expenditure shall be reduced by the amount of the credit so
allowed.</text>
</subsection><subsection id="HFDB375963B53431CB75158049F5850B5"><enum>(l)</enum><header>No double
benefit</header>
<paragraph id="H980BF903BD614CFAA6A49C9B95561C00"><enum>(1)</enum><header>Coordination
with other deductions and credits</header><text>The amount of any deduction or
other credit allowable under this chapter for any cost taken into account in
determining the amount of the credit under subsection (a) shall be reduced by
the amount of such credit attributable to such cost.</text>
</paragraph><paragraph id="HD1EEBF07A3B0439DAE44EE472CA98DB8"><enum>(2)</enum><header>Research and
development costs</header>
<subparagraph id="HDC0E8BF42E234560813359DE928B0743"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), any amount
described in subsection (d) taken into account in determining the amount of the
credit under subsection (a) for any taxable year shall not be taken into
account for purposes of determining the credit under section 41 for such
taxable year.</text>
</subparagraph><subparagraph id="H97411779299648C49D4ECDF0003FEFF"><enum>(B)</enum><header>Costs taken into
account in determining base period research expenses</header><text>Any amounts
described in subsection (d) taken into account in determining the amount of the
credit under subsection (a) for any taxable year which are qualified research
expenses (within the meaning of section 41(b)) shall be taken into account in
determining base period research expenses for purposes of applying section 41
to subsequent taxable years.</text>
</subparagraph></paragraph></subsection><subsection id="HF983085BCB3C4DEEA549BE61FD1F4885"><enum>(m)</enum><header>Business
carryovers allowed</header><text>If the credit allowable under subsection (a)
for a taxable year exceeds the limitation under subsection (j) for such taxable
year, such excess (to the extent of the credit allowable with respect to
property subject to the allowance for depreciation) shall be allowed as a
credit carryback and carryforward under rules similar to the rules of section
39.</text>
</subsection><subsection id="H10E9930A22AD4914AAA51C5486CFA000"><enum>(n)</enum><header>Definitions and
special rules</header><text>For purposes of this section—</text>
<paragraph id="H5ABD9BC447D24D8DB4716F18CE8EA333"><enum>(1)</enum><header>Definitions</header><text>Any
term which is used in this section and in <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/329">chapter 329</external-xref> of title 49, United
States Code, shall have the meaning given such term by such chapter.</text>
</paragraph><paragraph id="H4103A18CCDF04DC49C1FE22C00ABEB2C"><enum>(2)</enum><header>Special
rules</header><text>Rules similar to the rules of paragraphs (4) and (5) of
section 179A(e) and paragraphs (1) and (2) of section 41(f) shall apply.</text>
</paragraph></subsection><subsection id="H56854D6241A749A3A9BE12F0BC7008E"><enum>(o)</enum><header>Election not To
take credit</header><text>No credit shall be allowed under subsection (a) for
any property if the taxpayer elects not to have this section apply to such
property.</text>
</subsection><subsection id="H7F77745F107A490886D1D6D33C14E35"><enum>(p)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as necessary to carry out the
provisions of this section.</text>
</subsection><subsection id="H4EF36EE8F96D446AA2F1FB923992C98D"><enum>(q)</enum><header>Termination</header><text>This
section shall not apply to any qualified investment made after December 31,
2017.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3A3AD62798E543F1BD86F39D6684C4B0"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HF652D2BD3AE646E9BF007D507B46F1D0"><enum>(1)</enum><text>Section 1016(a) of
such Code is amended by striking <quote>and</quote> at the end of paragraph
(36), by striking the period at the end of paragraph (37) and inserting
<quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block id="H5001765F27E54119924FD9D8A539EC07">
<paragraph id="H196208B7F28342CCBD5D006943E7CDD1"><enum>(38)</enum><text>to the extent
provided in section
30D(k).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H64669D85F08D43D984E08F431A82B66"><enum>(2)</enum><text>Section 6501(m) of
such Code is amended by inserting <quote>30D(o),</quote> after
<quote>30C(e)(5),</quote>.</text>
</paragraph><paragraph id="HC325A03047B24E1D9DF6378B1FA85899"><enum>(3)</enum><text>The table of
sections for subpart B of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 30C the following new
item:</text>
<quoted-block id="H4330FBC5C23449CF92801864CA427C6" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 30D. Energy efficient motor vehicles
manufacturing
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H9B742F32548F459C863806F1773BE7BE"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
amounts incurred in taxable years beginning after December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="H12A93AD696244D50AB7D03CE0016C37" section-type="subsequent-section"><enum>103.</enum><header>Transit-oriented
development corridors</header>
<subsection id="HA9859250D0D8461C8E80C4DB34EA4E59"><enum>(a)</enum><header>Definitions</header><text>In
this section, the following definitions apply:</text>
<paragraph id="H4AFF6875488049AB98004D0084E81426"><enum>(1)</enum><header>Definitions from
title 49, united states code</header><text>The terms <quote>capital
project</quote>, <quote>local governmental authority</quote>, <quote>public
transportation</quote>, and <quote>urbanized area</quote> have the meanings
such terms have under <external-xref legal-doc="usc" parsable-cite="usc/49/5302">section 5302(a)</external-xref> of title 49, United States Code.</text>
</paragraph><paragraph id="H11E846CCA48944F3B7D8740088CCB149"><enum>(2)</enum><header>State</header><text>The
term <quote>State</quote> means a State of the United States, the District of
Columbia, Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and
the United States Virgin Islands.</text>
</paragraph><paragraph id="H6C3860D70E0244B09656FCB04673BC06"><enum>(3)</enum><header>Transit-oriented
development corridor</header><text display-inline="yes-display-inline">The term
<quote>transit-oriented development corridor</quote> means rights-of-way for
fixed-guideway public transportation facilities, including commercial
development that is connected with any such facility physically and
functionally.</text>
</paragraph></subsection><subsection id="HB6A99BA17D084ECFB1C2022B60C18810"><enum>(b)</enum><header>In
general</header><text display-inline="yes-display-inline">In consultation with
State transportation departments and metropolitan planning organizations, the
Secretary of Transportation shall designate, in urbanized areas, at least 20
transit-oriented development corridors by 2015 and 50 transit-oriented
development corridors by 2025.</text>
</subsection><subsection id="HCFCF2CF7D9D044399DA4ACE89CB92209"><enum>(c)</enum><header>Transit
grants</header><text display-inline="yes-display-inline">The Secretary of
Transportation shall award grants to a State or local governmental authority to
construct or improve transit facilities, bicycle transportation facilities, and
pedestrian walkways in a transit-oriented development corridor, including
capital projects.</text>
</subsection><subsection id="H946A4074CECF4F9E97D596341801A300"><enum>(d)</enum><header>Research and
development</header><text display-inline="yes-display-inline">In order to
support effective deployment of grants and incentives under this section, the
Secretary of Transportation shall establish a transit-oriented development
corridors research and development program for the conduct of research on best
practices and performance criteria for transit-oriented development
corridors.</text>
</subsection><subsection id="H8CFAAD1560164BE29F4F7CF24B9E67AC"><enum>(e)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated to carry
out this section $500,000,000 for each of fiscal years 2008 through 2019, of
which $2,000,000 per fiscal year is authorized for the research and development
program under subsection (d).</text>
</subsection><subsection id="HC4C80B75BDDB48CA9C0068E30609B521"><enum>(f)</enum><header>Labor
standards</header><text>The Secretary of Transportation shall not provide a
grant under this section unless the Secretary receives reasonable assurances
from a State that laborers and mechanics employed by contractors or
subcontractors in the performance of construction or modernization on the a
transit project will be paid wages not less than those prevailing on similar
construction or modernization in the locality as determined by the Secretary of
Labor under subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code (known
as the Davis-Bacon Act).</text>
</subsection></section><section display-inline="no-display-inline" id="HD9C49A62A43F4FF3A9A5D3A816545714" section-type="subsequent-section"><enum>104.</enum><header>Automobile Fuel
Economy Standards</header>
<subsection id="HE92541ACF2E2417AA4E1EE1C8921A9E1"><enum>(a)</enum><header>Phased increases
in fuel economy standards</header>
<paragraph id="H07E80397B1D846F0A5D1B11107812980"><enum>(1)</enum><header>Passenger
automobiles</header>
<subparagraph id="H61406026BB654BEA95C8A2746B9774FF"><enum>(A)</enum><header>Minimum
standards</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32902">Section 32902(b)</external-xref> of title 49, United States Code, is
amended to read as follows:</text>
<quoted-block id="HD29682E13A4348089920FE4F5EA437B5" style="OLC">
<subsection id="H223F3E209B034E7000DA555C7FA47717"><enum>(b)</enum><header>Passenger
automobiles</header><text>Except as otherwise provided under this section, the
average fuel economy standard for passenger automobiles manufactured by a
manufacturer in a model year—</text>
<paragraph id="HE1A170F39EA7432191E05E14947739F8"><enum>(1)</enum><text>after model year
1984 and before model year 2008 shall be 25 miles per gallon;</text>
</paragraph><paragraph id="H7E582C27330C47128B9F8CC86D6FCB05"><enum>(2)</enum><text>after model year
2007 and before model year 2011 shall be 28 miles per gallon;</text>
</paragraph><paragraph id="H6C58843E61714637A93C64F23B7F22AB"><enum>(3)</enum><text>after model year
2010 and before model year 2014 shall be 32 miles per gallon;</text>
</paragraph><paragraph id="H6F9111B07A66499799AAFE6B6D2CD2AF"><enum>(4)</enum><text>after model year
2013 and before model year 2017 shall be 36 miles per gallon; and</text>
</paragraph><paragraph id="H011125803CA94C068198ADCA42A7B2DE"><enum>(5)</enum><text>after model year
2016 shall be 40 miles per
gallon.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HDB9283515D57424FBB5B114450113153"><enum>(B)</enum><header>Higher standards
set by regulation</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32902">Section 32902(c)</external-xref> of title 49, United States
Code, is amended—</text>
<clause id="H7B3849650663409490DA93E6A3A25533"><enum>(i)</enum><text>by
striking paragraph (2); and</text>
</clause><clause id="H7082FBAC138B4A65ACA6A8D17800ECF0"><enum>(ii)</enum><text>in
paragraph (1)—</text>
<subclause id="HA3690E46A9BC45F9A8C1513401D0BA36"><enum>(I)</enum><text>by striking
<quote>(1) Subject to paragraph (2) of this subsection, the</quote> and
inserting <quote>The</quote>; and</text>
</subclause><subclause id="H1C41463FD69D42B789F02938EF313699"><enum>(II)</enum><text>by striking
<quote>amending the standard</quote> and inserting <quote>increasing the
standard otherwise applicable</quote>.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="HCA126D0527F14235969BA9A4E8745927"><enum>(b)</enum><header>Increased
inclusiveness of definitions of automobile and passenger automobile</header>
<paragraph id="HBA297098D7CB4E8AA9F75648DE34CCD6"><enum>(1)</enum><header>Automobile</header>
<subparagraph id="HAC1711601535432F99CEC7911F2209E3"><enum>(A)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32901">Section 32901(a)(3)</external-xref> of title 49, United States Code, is
amended—</text>
<clause id="H597BAA795A2B4090A5C400C1000307E3"><enum>(i)</enum><text>by
striking <quote>6,000 pounds</quote> each place it appears and inserting
<quote>12,000 pounds</quote>; and</text>
</clause><clause id="HA00A323EE8434D05B5D5D6CFACF9CC0"><enum>(ii)</enum><text>in
subparagraph (B)—</text>
<subclause id="HB731529E838C41F8B73DF7013F09D6EA"><enum>(I)</enum><text>by striking
<quote>10,000 pounds</quote> and inserting <quote>14,000 pounds</quote>;
and</text>
</subclause><subclause id="H4F341C34487E4FBBB687BF6B3B1C09A1"><enum>(II)</enum><text>in clause (ii),
by striking <quote>an average fuel economy standard</quote> and all that
follows through <quote>conservation or</quote>.</text>
</subclause></clause></subparagraph><subparagraph id="H797953DB30E94B0DBBAE0500DE58A636"><enum>(B)</enum><header>Special
rule</header><text>Section 32908(a)(1) of such title is amended by striking
<quote>8,500 pounds</quote> and inserting <quote>14,000 pounds</quote>.</text>
</subparagraph></paragraph><paragraph id="H9618625B36064A25BB013BA883A3DE24"><enum>(2)</enum><header>Passenger
automobile</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32901">Section 32901(a)(16)</external-xref> of title 49, United States Code,
is amended to read as follows:</text>
<quoted-block id="H3CD372B3E818445598008E8398AA0527" style="OLC">
<paragraph id="H09218A43031D423B943C0000B083A384"><enum>(16)</enum><text><quote>passenger
automobile</quote> means an automobile having a gross vehicle weight of 10,000
pounds or less that is designed to be used principally for the transportation
of
persons;</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H779C7BA808AF4643838FD072F27D42"><enum>(3)</enum><header>Applicability</header><text>The
amendments made by this section shall apply with respect to automobiles
manufactured for model years beginning after the date of enactment of this
Act.</text>
</paragraph></subsection><subsection id="H816E27612F4E4988B1463136A7C10000"><enum>(c)</enum><header>Civil
penalties</header>
<paragraph id="H014A5F8E185740F9A4EAA0821E3854A2"><enum>(1)</enum><header>Increased
penalty for violations of fuel economy standards</header><text>Section 32912(b)
of title 49, United States Code, is amended—</text>
<subparagraph id="HF6D1A7ADCF7A487696900215E118F554"><enum>(A)</enum><text>by inserting
<quote>(1)</quote> before <quote>Except as provided</quote>;</text>
</subparagraph><subparagraph id="HBD2EEDC1A5994E90A392FF0020F79D02"><enum>(B)</enum><text>by striking
<quote>$5</quote> and inserting <quote>the dollar amount applicable under
paragraph (2)</quote>;</text>
</subparagraph><subparagraph id="H14C344940A164B1FA5B5DB1F58C8C01"><enum>(C)</enum><text>by redesignating
paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively;
and</text>
</subparagraph><subparagraph id="H8ADBDEC8E36E440A00CB7698BEBC8B00"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HEFE825B83C4F416C9DBF3EB1253E33CE" style="OLC">
<paragraph id="H9F70A532D4434A7889D9F1E4C0E34843"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H84FE272FC9F6484600CA791804F2CDEC"><enum>(A)</enum><text>The dollar amount
referred to in paragraph (1) is $10, as increased from time to time under
subparagraph (B);</text>
</subparagraph><subparagraph id="H522DE3B3DE8F4049A3082D11DD7FC72" indent="up1"><enum>(B)</enum><text>Effective on October 1 of each year,
the dollar amount applicable under subparagraph (A) shall be increased by the
percentage (rounded to the nearest <fraction>1/10</fraction> of 1 percent) by
which the price index for July of such year exceeds the price index for July of
the preceding year. The amount calculated under the preceding sentence shall be
rounded to the nearest $0.10.</text>
</subparagraph><subparagraph id="H6CB583CB4B5242F1B73F50002406ECD" indent="up1"><enum>(C)</enum><text>In this paragraph, the term
<quote>price index</quote> means the Consumer Price Index for all-urban
consumers published monthly by the Department of
Labor.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H3D0CCBEAB6D14496ACE05BDAB9C4CB6E"><enum>(2)</enum><header>Conforming
amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32912">Section 32912(c)(1)</external-xref> of title 49, United States Code, is
amended—</text>
<subparagraph id="HEF5A8AE04BB148DAA22E81AC78448F7E"><enum>(A)</enum><text>by striking
subparagraph (B); and</text>
</subparagraph><subparagraph id="H42013E61C1C64695BA135B403FFF8115"><enum>(B)</enum><text>by redesignating
subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively.</text>
</subparagraph></paragraph><paragraph id="HA096C38618314F1AA7814766C8C8FD12"><enum>(3)</enum><header>Applicability</header><text>The
amendments made by subsection (a) shall apply with respect to automobiles
manufactured for model years beginning after the date of enactment of this
Act.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H99F12F48012D443BBC16389C1D1DCBF2" section-type="subsequent-section"><enum>105.</enum><header>Inclusion of sports
utility vehicles in limitation on depreciation of certain luxury
automobiles</header>
<subsection id="H532E20D8A1824DC794A1532D25400075"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of section 280F(d)(5) of the Internal
Revenue Code of 1986 (defining passenger automobile) is amended by striking
clause (ii) and all that follows and inserting the following new clause:</text>
<quoted-block id="HE44338424CB945F7829BB209482B24BC">
<clause id="HCE062EDCBC0D475A80A1CDECFCD042C"><enum>(ii)</enum><text></text><subclause commented="no" display-inline="yes-display-inline" id="H0B6624ACAC864125970037A80593E879"><enum>(I)</enum><text>except as provided in
subclause (II) or (III), which is rated at 6,000 pounds unloaded gross vehicle
weight or less,</text>
</subclause><subclause id="HEF46B039F2594BD186C0AB03A4166878" indent="up1"><enum>(II)</enum><text>in the case of a truck or van, which is
rated at 6,000 pounds gross vehicle weight or less, or</text>
</subclause><subclause id="H15219C988EFE426CA6F8865FD6172B69" indent="up1"><enum>(III)</enum><text>in the case of a sports utility vehicle
not described in subclause (I), which is rated at more than 6,000 pounds but
not more than 14,000 pounds gross vehicle
weight.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFDFE68A04F4B4F0EAF9165BFFC5DDE3B"><enum>(b)</enum><header>Definition</header><text>Paragraph
(5) of section 280F(d) of such Code is amended by adding at the end the
following new subparagraph:</text>
<quoted-block id="H49396C90D33D49C7B2448DA3DE7719B">
<subparagraph id="H48702C291C674739B68BC809BDBAAC42"><enum>(C)</enum><header>Sports utility
vehicles</header><text>The term <quote>sports utility vehicle</quote> does not
include any vehicle which—</text>
<clause id="H2313B49B77ED46B0AC0755DEFA312F00"><enum>(i)</enum><text display-inline="yes-display-inline">does not have the primary load carrying
device or container attached,</text>
</clause><clause id="H331F1E09B4704525876DAE4D290D0EA"><enum>(ii)</enum><text>has a seating
capacity of more than 12 individuals,</text>
</clause><clause id="H006077BFF7D14AF100BD022CDBECEF83"><enum>(iii)</enum><text>is designed for
more than 9 individuals in seating rearward of the driver’s seat,</text>
</clause><clause id="HCC74E839F20F458DA95E4DDD2CA19345"><enum>(iv)</enum><text>is equipped with
an open cargo area, or a covered box not readily accessible from the passenger
compartment, of at least 72.0 inches in interior length, or</text>
</clause><clause id="H6BEEDE7BA7E5469896C150C935755689"><enum>(v)</enum><text>has an integral
enclosure, fully enclosing the driver compartment and load carrying device,
does not have seating rearward of the driver’s seat, and has no body section
protruding more than 30 inches ahead of the leading edge of the
windshield.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H329A8B70863E4C2F92DB486766BD7E09"><enum>(c)</enum><header>Conforming
amendment</header><text>Section 179(b) of such Code (relating to limitations)
is amended by striking paragraph (6).</text>
</subsection><subsection id="H6ACA95DDEB404D529F125387833E189E"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H58B85892CADD45C98199F9009692A11D" section-type="subsequent-section"><enum>106.</enum><header>Fuel efficiency
standards for replacement tires</header>
<subsection id="HF8E52389979B4965A3D6F5E00DD8D71"><enum>(a)</enum><header>Standards for
tires manufactured for interstate commerce</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/30123">Section 30123</external-xref> of title 49, United States
Code, is amended—</text>
<paragraph id="HBAD5332047454A3F8BEB75238DEE0337"><enum>(1)</enum><text>in subsection (b),
by inserting after the first sentence the following: <quote>The grading system
shall include standards for rating the fuel efficiency of tires designed for
use on passenger cars and light trucks.</quote>; and</text>
</paragraph><paragraph id="H3BF3BB766CD24404901C56944EF830B1"><enum>(2)</enum><text>by adding at the
end of the following:</text>
<quoted-block display-inline="no-display-inline" id="HFFA10101860046B9BA30762F73FC2F4E" style="USC">
<subsection id="H9270047EA787483B9120E349CAA1E8B6"><enum>(d)</enum><header>National tire
fuel efficiency program</header><paragraph commented="no" display-inline="yes-display-inline" id="H1EFE6C26963849B3B42100ED24181503"><enum>(1)</enum><text>The Secretary shall
develop and carry out a national tire efficiency program for tires designed for
use on passenger cars and light trucks. The program shall include the
following:</text>
<subparagraph id="HF3E4466B0B11424583E15450B9175D8"><enum>(A)</enum><text>Policies and
procedures for testing and labeling tires for fuel economy to enable tire
buyers to make informed purchasing decisions about the fuel economy of
tires.</text>
</subparagraph><subparagraph id="H5197E2A7D4AD407786A9FAD281446E8C"><enum>(B)</enum><text>Policies and
procedures to promote the purchase of energy-efficient replacement tires,
including purchase incentives, website listings on the Internet, printed fuel
economy guide booklets, and mandatory requirements for tire retailers to
provide tire buyers with fuel-efficiency information on tires.</text>
</subparagraph><subparagraph id="H1A0A20A01B0B437F952CF978A3503C89"><enum>(C)</enum><text>Minimum fuel
economy standards for tires, promulgated by the Secretary.</text>
</subparagraph></paragraph><paragraph id="H449905BC3C434EE295D1B909658D99E5" indent="up1"><enum>(2)</enum><text>The minimum fuel economy standards
for tires required under paragraph (1)(C) shall—</text>
<subparagraph id="H427640F4BC5542E7A6D7A51400B241E4"><enum>(A)</enum><text>ensure that, in conjunction with the
requirements of paragraph (2)(B), the average fuel economy of replacement tires
is equal to or better than the average fuel economy of tires sold as original
equipment;</text>
</subparagraph><subparagraph id="H4C27D0C6FB6B4411AC39A3E438FF021"><enum>(B)</enum><text>secure the maximum technically
feasible and cost-effective fuel savings;</text>
</subparagraph><subparagraph id="HA244772969854DC8A5EB611B86EAD8A"><enum>(C)</enum><text>not adversely affect tire
safety;</text>
</subparagraph><subparagraph id="H3594CD0E46DF43A898C59436F906375F"><enum>(D)</enum><text>not adversely affect the average tire
life of replacement tires;</text>
</subparagraph><subparagraph id="H70C556959CFE4F62B3342894E7B8A9A"><enum>(E)</enum><text>incorporate the results from—</text>
<clause id="HE516A7C72742401C99BB820066E2007E"><enum>(i)</enum><text>laboratory testing; and</text>
</clause><clause id="H4B137963FCBD4AA8ACB8CD8C14663E00"><enum>(ii)</enum><text>to the extent appropriate and
available, on-road fleet testing programs conducted by manufacturers;
and</text>
</clause></subparagraph><subparagraph id="H37EC4174006F4B00B7F9C017E60373D"><enum>(F)</enum><text>not adversely affect efforts to manage
scrap tires.</text>
</subparagraph></paragraph><paragraph id="HD83BB25F97B743E08228EC5FA5C51700" indent="up1"><enum>(3)</enum><text>The policies, procedures, and
standards developed under paragraph (1) shall apply to all tire types and
models that are covered by the Uniform Tire Quality Grading Standards in
<external-xref legal-doc="regulation" parsable-cite="cfr/49/575.104">section 575.104</external-xref> of title 49, Code of Federal Regulations (or any successor
regulation).</text>
</paragraph><paragraph id="H0ED670DCBBC44880B4E4D28587A0CE38" indent="up1"><enum>(4)</enum><text>Not less than every 3 years, the
Secretary shall review the minimum fuel economy standards in effect for tires
under this subsection and revise the standards as necessary to ensure
compliance with requirements under paragraph (2). The Secretary may not reduce
the average fuel economy standards applicable to replacement tires.</text>
</paragraph><paragraph id="HEF8996F18583443DB7A0920094E154C3" indent="up1"><enum>(5)</enum><text>Nothing in this section shall be
construed to preempt any provisions of State law relating to higher fuel
economy standards applicable to replacement tires designed for use on passenger
cars and light trucks. Nothing in this chapter shall apply to—</text>
<subparagraph id="HE1FA8D1EF44C4499B8DF712F93BBF37E"><enum>(A)</enum><text>a tire or group of tires with the same
product identification number, plant, and year, for which the volume of tires
produced or imported is less than 15,000 annually;</text>
</subparagraph><subparagraph id="H4417682917D840B3B54B8B1DF6E6A300"><enum>(B)</enum><text>a deep tread, winter-type snow tire,
space-saver tire, or temporary use spare tire;</text>
</subparagraph><subparagraph id="H371AF4F9726D49F9B073CE277E15108D"><enum>(C)</enum><text>a tire with a normal rim diameter of
12 inches or less;</text>
</subparagraph><subparagraph id="H42D3BB277C184890BB1B991C6C56C051"><enum>(D)</enum><text>a motorcycle tire; or</text>
</subparagraph><subparagraph id="HF667CA46F2684C4296F55D91A004694E"><enum>(E)</enum><text>a tire manufactured specifically for
use in an off-road motorized recreational vehicle.</text>
</subparagraph></paragraph><paragraph id="H597667D133BA4751A74FB26B9312FF2C" indent="up1"><enum>(6)</enum><text>In this subsection, the term
<quote>fuel economy</quote>, with respect to tires, means the extent to which
the tire contribute to the fuel economy of the motor vehicles on which the tire
are
mounted.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H98365601640F47E3A2E78642AF72D131"><enum>(b)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Section 30103(b)(1)
of title 49, United States Code, is amended by striking <quote>When</quote> and
inserting <quote>Except as provided in section 30123(d) of this title,
when</quote>.</text>
</subsection><subsection id="H34B1179D49724EA2A9FAD97D462D8C07"><enum>(c)</enum><header>Implementation</header><text>The
Secretary of Transportation shall ensure that the national tire fuel efficiency
program required under <external-xref legal-doc="usc" parsable-cite="usc/49/30123">section 30123(d)</external-xref> of title 49, United States Code (as
added by subsection (a)(2)), is administered so as to apply the policies,
procedures, and standards developed under paragraph (2) of such subsection
beginning not later than March 31, 2008.</text>
</subsection></section><section id="H48C3D3720065429F919F882FA41EE22C"><enum>107.</enum><header>Heavy Duty
Vehicle Fuel Economy Requirements</header>
<subsection id="H353DA31D64F648649EA7FC381B3C5950"><enum>(a)</enum><header>Fuel economy
standards for heavy duty trucks</header><text>Part C of subtitle VI of title
49, United States Code, is amended by adding after chapter 329 the following
new chapter:</text>
<quoted-block display-inline="no-display-inline" id="H2F6B3470B2994DE487A2640081C57BF" style="USC">
<chapter id="H3D7140E3A79E47CDAAE87540D41610C2"><enum>330</enum><header>Heavy Duty
Vehicle Fuel Economy Requirements</header>
<section id="H4B6D19118E014F74B4D53D664650F633"><enum>33001.</enum><header>General</header>
<paragraph id="HB5B3C697A4CF4130823083FFF07F85BB"><enum>(1)</enum><header>Purpose and
policy</header><text>The purpose of this chapter is to reduce petroleum
consumption by heavy duty motor vehicles to the maximum extent feasible.
Therefore it is necessary to prescribe fuel economy requirements for heavy duty
motor vehicles.</text>
</paragraph><paragraph id="H1E223C200C6B4EB79F00BD8829FA0064"><enum>(2)</enum><header>Definition</header><text>In
this chapter, <quote>heavy duty motor vehicle</quote> means a vehicle of
greater than 10,000 pounds gross vehicle weight that is driven or drawn by
mechanical power and manufactured primarily for use on public streets, roads,
and highways, but does not include a vehicle operated only on a rail
line.</text>
</paragraph></section><section id="HC725D54DCB0C4E82B43F7E28C71ACCA"><enum>33002.</enum><header>Requirements</header>
<paragraph id="HF21C13BF8FCA4BAC81DF1869EE931DE6"><enum>(1)</enum><header>General
requirements</header><text>The Secretary of Transportation shall prescribe
heavy duty motor vehicle fuel economy requirements, which may be complete
vehicle fuel economy standards or some combination of engine fuel economy
standards and requirements for other vehicle components and accessories. Such
requirements shall be established for as many categories of heavy duty motor
vehicle as feasible and at a minimum shall be prescribed for tractor-trailers
of 26,000 lbs. or more gross vehicle weight. The requirements shall be
practicable, meet the need for heavy duty motor vehicle fuel consumption
reduction, and be stated in objective terms.</text>
</paragraph><paragraph id="H28C6D8D3F427447691206FCE07FEDABB"><enum>(2)</enum><header>Testing
Protocols</header><text>The Administrator of the Environmental Protection
Agency shall prescribe test protocols for determining compliance with standards
and other requirements prescribed by the Secretary.</text>
</paragraph><paragraph id="H48D1E4CAD855413AA29D073603A24942"><enum>(3)</enum><header>Considerations</header><text>When
prescribing heavy duty motor vehicle fuel economy standards under paragraph
(1), the Secretary shall—</text>
<subparagraph id="HA1528EDE9A2A4B33B3A83B140646A5E1"><enum>(A)</enum><text>consider relevant
available heavy duty motor vehicle fuel consumption information;</text>
</subparagraph><subparagraph id="H44363734FE4B459F9300A174CDE9F976"><enum>(B)</enum><text>consider whether a
proposed standard is reasonable, practicable, and appropriate for the
particular type of heavy duty motor vehicle for which it is prescribed;
and</text>
</subparagraph><subparagraph id="HA7EFAEE8725541C8B41F8968D6AB2E48"><enum>(C)</enum><text>consider the
extent to which the standard will carry out section 33001 of this title.</text>
</subparagraph></paragraph><paragraph id="H4974FD4B48074C56A60698C37EA79AB"><enum>(4)</enum><header>Cooperation</header><text>The
Secretary may advise, assist, and cooperate with departments, agencies, and
instrumentalities of the Federal government, States, and other public and
private agencies in developing fuel economy standards for heavy duty motor
vehicles.</text>
</paragraph><paragraph id="HB200F7F4EA1849CE92D1B5E7C3ABB074"><enum>(5)</enum><header>Effective dates
of standards</header><text>The Secretary shall specify the effective date and
heavy duty model years of a fuel economy standard prescribed under this chapter
in the order prescribing the standard.</text>
</paragraph><paragraph id="H50B7298B873449E885359DCDD5F4A418"><enum>(6)</enum><header>5-year plan for
testing protocols</header><text>The Secretary shall establish and periodically
review and update on a continuing basis a 5-year plan for testing motor vehicle
fuel economy requirements prescribed under this chapter. In developing the plan
and establishing testing priorities, the Secretary shall consider factors the
Secretary considers appropriate, consistent with section 33001 of this title
and the Secretary’s other duties and powers under this
chapter.</text>
</paragraph></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HC90CBAAEE9604D1384DD7838EFB16014"><enum>(b)</enum><header>Clerical
Amendment</header><text>The table of sections of subtitle VI of title 49,
United States Code, is amended by inserting after the item relating to chapter
329, the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H29AE71B7D849401A9D3941B7A3F91058" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">330. Heavy Duty Vehicle Fuel Economy
Requirements...................................33001</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>II</enum><header>Reduce Heat and
Electric Bills</header>
<subtitle id="HD96833A29BD1433CA22CB4182799E648"><enum>A</enum><header>General
programs</header>
<section id="HB3ECD97DAFA9401600B59F90F5F177C2"><enum>201.</enum><header>Weatherization
assistance</header><text display-inline="no-display-inline">Section 422 of the
Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6872">42 U.S.C. 6872</external-xref>) is amended—</text>
<paragraph id="HCC226209830442C78D38E46B173F57E0"><enum>(1)</enum><text>by striking
<quote>$500,000,000</quote> and inserting <quote>$1,000,000,000</quote>;</text>
</paragraph><paragraph id="H8518718AF814424091D996973BBC79AF"><enum>(2)</enum><text>by striking
<quote>$600,000,000</quote> and inserting <quote>$1,200,000,000</quote>;
and</text>
</paragraph><paragraph id="HD8AA1EEB2CB74A48BFD668AC62BB2996"><enum>(3)</enum><text>by striking
<quote>$700,000,000</quote> and inserting <quote>$1,400,000,000</quote>.</text>
</paragraph></section><section id="HCC44FE7FBCB0423FB4DA48BBB2F815EA"><enum>202.</enum><header>Energy Star
programs</header><text display-inline="no-display-inline">There are authorized
to be appropriated for carrying out the Energy Star program under section 324A
of the Energy Policy and Conservation Act—</text>
<paragraph id="HD047CF770527476E95700000D40952D3"><enum>(1)</enum><text>to the
Administrator of the Environmental Protection Agency $100,000,000 for each
fiscal year; and</text>
</paragraph><paragraph id="HF7635403D82D4F2D0003A92F41179BC"><enum>(2)</enum><text>to
the Secretary of Energy $12,000,000 for each fiscal year.</text>
</paragraph></section><section id="H9ABD297E8DFB4E8C8F1BF02983DEB7A2"><enum>203.</enum><header>Renewable
electricity production credit</header>
<subsection id="H3840BC2276EC4CDC888156FFFD4CAA93"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Section 45(d) of the Internal Revenue Code
of 1986 (relating to qualified facilities) is amended—</text>
<paragraph id="H62E8BA2A707E40B0A7A8AF1CE65551D2"><enum>(1)</enum><text>by striking
<quote>January 1, 2009</quote> each place it appears in paragraphs (1), (2),
(3), (5), (6), and (7) and inserting <quote>January 1, 2014</quote>, and</text>
</paragraph><paragraph id="H576464EAC67F4326A00000306698B38E"><enum>(2)</enum><text>by striking
<quote>January 1, 2009 (January 1, 2006, in the case of a facility using solar
energy)</quote> in paragraph (4) and inserting <quote>January 1, 2014 (January
1, 2012, in the case of a facility using solar energy)</quote>.</text>
</paragraph></subsection><subsection id="H6202E0BE810D46D2889CFDCBB6C5D9DC"><enum>(b)</enum><header>Extension of
credit for residential energy efficient property</header><text>Subsection (g)
of section 25D of such Code (relating to termination) is amended by striking
<quote>December 31, 2007</quote> and inserting <quote>December 31,
2014</quote>.</text>
</subsection></section><section display-inline="no-display-inline" id="H64705326D5564A0C87514D568E00BD75" section-type="subsequent-section"><enum>204.</enum><header>Efficiency resource
standard</header>
<subsection id="H19043A02F6714B128BCCBA8FAF7CA7DB"><enum>(a)</enum><header>Amendment</header><text>Title
VII of the Public Utility Regulatory Policies Act of 1978 is amended by adding
the following new section at the end thereof:</text>
<quoted-block display-inline="no-display-inline" id="H4A2F50C05DFC4D028BBF9596EEECC425" style="OLC">
<section id="HE87BFEC05617487A825084481FE0E0DC"><enum>610.</enum><header>Efficiency
resource standard for retail electricity and natural gas suppliers</header>
<subsection id="H467CDD87AB2A4FD6BA906C6400397478"><enum>(a)</enum><header>Resource
standard</header><text display-inline="yes-display-inline">Each retail
electricity and natural gas supplier shall undertake energy savings measures in
each calendar year from 2007 through 2011 and thereafter that produce
electricity demand savings and electricity and natural gas usage savings, as a
percentage of the supplier’s base amount as shown in the following table. These
targets represent savings realized from measures installed in the current year,
plus cumulative savings realized from measures installed in all previous years.
Each retail electricity and natural gas supplier subject to this subsection may
use any electricity or natural gas savings measures available to it to achieve
compliance with the performance standard established under this section, so
long as the electricity and natural gas savings achieved by such measures can
be calculated and verified pursuant to the rules promulgated under subsection
(b).</text>
<table align-to-level="subsection" blank-lines-before="1" frame="all" line-rules="all-gen" rule-weights="4.4.4.4.4.17" subformat="S6211" table-type="3-General">
<tgroup cols="3" grid-typeface="1.1" thead-tbody-ldg-size="10.9.10" ttitle-size="0"><colspec coldef="txt" colname="col1" colsep="1" colwidth="180" min-data-value="120"></colspec><colspec coldef="txt" colname="col2" colsep="1" colwidth="120" min-data-value="80"></colspec><colspec coldef="fig" colname="col3" colsep="1" colwidth="90" min-data-value="12"></colspec>
<thead>
<row><entry align="center" colname="col1" rowsep="1">Year</entry><entry align="center" colname="col2" rowsep="1">Reductions in peak electricity demand</entry><entry align="center" colname="col3" rowsep="1">Reductions in electricity and natural gas
usage</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="col1" rowsep="1" rowsep-modify="bold" stub-definition="txt-ldr" stub-hierarchy="1">2007</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="1" rowsep-modify="bold">0.25%</entry><entry align="right" colname="col3" leader-modify="force-ldr" rowsep="1" rowsep-modify="bold">0.25%</entry>
</row>
<row><entry align="left" colname="col1" rowsep="1" rowsep-modify="bold" stub-definition="txt-ldr" stub-hierarchy="1">2008</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="1" rowsep-modify="bold">0.75%</entry><entry align="right" colname="col3" leader-modify="force-ldr" rowsep="1" rowsep-modify="bold">0.75%</entry>
</row>
<row><entry align="left" colname="col1" rowsep="1" rowsep-modify="bold" stub-definition="txt-ldr" stub-hierarchy="1">2009</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="1" rowsep-modify="bold">1.75%</entry><entry align="right" colname="col3" leader-modify="force-ldr" rowsep="1" rowsep-modify="bold">1.5%</entry>
</row>
<row><entry align="left" colname="col1" rowsep="1" rowsep-modify="bold" stub-definition="txt-ldr" stub-hierarchy="1">2010</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="1" rowsep-modify="bold">2.75%</entry><entry align="right" colname="col3" leader-modify="force-ldr" rowsep="1" rowsep-modify="bold">2.25%</entry>
</row>
<row><entry align="left" colname="col1" rowsep="1" rowsep-modify="bold" stub-definition="txt-ldr" stub-hierarchy="1">2011 and
thereafter</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="1" rowsep-modify="bold">3.75%</entry><entry align="right" colname="col3" leader-modify="force-ldr" rowsep="1" rowsep-modify="bold">3.0%</entry>
</row>
</tbody>
</tgroup>
</table>
</subsection><subsection id="H05E937B8C873483CA6B0421209D3ABE"><enum>(b)</enum><header>Determination of
compliance</header><text>The Secretary shall promulgate rules not later than
one year after the enactment of this section regarding the means to be used to
calculate and verify compliance with the performance standard established under
subsection (a). Each retail electric and natural gas supplier subject to this
section shall calculate its compliance with such standard in accordance with
such rules. The rules shall include each of the following:</text>
<paragraph id="HACFA6F1963DF4CD393EF2917E88AA03"><enum>(1)</enum><text>Procedures and
standards for defining and measuring electricity savings achieved or obtained
by electricity and natural gas suppliers (hereinafter in this section referred
to as <quote>electricity and natural gas savings</quote>) from customer
facility end-uses that occur in a calendar year from all measures in place in
that year (including measures implemented in previous years that produce
electricity and natural gas savings in such calendar year).</text>
</paragraph><paragraph id="H6B5E080641A44B13B0D61631C62652C6"><enum>(2)</enum><text>Procedures and
standards for verification of electricity and natural gas savings reported by
the retail electricity and natural gas supplier.</text>
</paragraph><paragraph id="H86A34E7BC0314A2700BEB5EC53992C48"><enum>(3)</enum><text>Requirements for
the contents and format of a bi-annual report from each retail electricity and
natural gas supplier demonstrating its compliance with the requirements of
subsection (a). The bi-annual report must include sufficient detail regarding
the calculation of electricity and natural gas savings to enable the regulatory
authority to verify and enforce compliance with the requirements of this
section and the regulations under this section.</text>
</paragraph></subsection><subsection id="H631482FC480F47FC8BF21208207952BF"><enum>(c)</enum><header>Credit and
trading system</header><paragraph commented="no" display-inline="yes-display-inline" id="HF0315A9A046D497789B8DD7F62C61743"><enum>(1)</enum><text>After consultation with
the Administrator of the Environmental Protection Agency, the Secretary shall
promulgate rules establishing a nationwide credit and credit trading system for
electricity and natural gas savings. Under such rules the Secretary may certify
as credits electricity or natural savings achieved by a retail electricity or
natural gas supplier in a given year in excess of the quantity of electricity
or natural gas savings required that calendar year for such supplier to meet
the resource standard, as long as such savings comply with the rules
established under subsection (b). The Secretary shall also certify as credits
customer energy savings created by retail electric or natural gas suppliers or
other entities, as long as such savings comply with the rules established under
subsection (b). An electricity savings credit shall equal one kilowatt hour; a
natural gas savings credit shall constitute one therm.</text>
</paragraph><paragraph id="HEC09633B511340A684A9B8A8B7019259" indent="up1"><enum>(2)</enum><text>The Secretary shall not award credits
to any retail electricity or natural gas supplier subject to State
administration and enforcement under subsection (d) unless the Secretary has
determined that such administration and enforcement are at least equivalent to
administration and enforcement by the Secretary.</text>
</paragraph><paragraph id="H5E672C6A00FA42BF83E68CFD3B1CBE00" indent="up1"><enum>(3)</enum><text>An electricity or natural gas savings
credit is not a property right. Nothing in this or any other provision of law
shall be construed to limit the authority of the United States to terminate or
limit such credits.</text>
</paragraph><paragraph id="H4F91469C62C041BCA531EFC0BD06D062" indent="up1"><enum>(4)</enum><text>A retail electric or natural gas
supplier may sell such credit to any other entity, and other entities may sell
such credits to retail electric or natural gas suppliers, in accordance with
the accounting and verification rules established by the Secretary. Such credit
may be used by a purchasing retail electricity or natural gas supplier for
purposes of complying with the resource standards set forth in subsection
(a).</text>
</paragraph><paragraph id="H6934760F59DC46CF97E8BDA3FA50076" indent="up1"><enum>(5)</enum><text>In order to receive an electricity or
natural gas savings credit, the recipient of an electricity savings credit
shall pay a fee, calculated by the Secretary, in an amount that is equal to the
administrative costs of issuing, recording, monitoring the sale or exchange of,
and tracking the credit or does not exceed five percent of the dollar value of
the credit, whichever is lower. The Secretary shall retain the fee and use it
to pay these administrative costs.</text>
</paragraph><paragraph id="H723E7A81A40E4CE8B4C65CF95CC945C6" indent="up1"><enum>(6)</enum><text>A credit may be counted toward
compliance with subsection (a) only once. A retail electricity or natural gas
supplier may satisfy the requirements of subsection (a) through the
accumulation of—</text>
<subparagraph id="H038B62224D574B07B572EE64B84046C5"><enum>(A)</enum><text>electricity or natural gas savings
credits obtained by purchase or exchange under paragraph (7);</text>
</subparagraph><subparagraph id="HF4E32C3FB92040CD8885FC52DCBEC8D5"><enum>(B)</enum><text>electricity or natural gas savings
credits borrowed against future years under paragraph (8); or</text>
</subparagraph><subparagraph id="H90E107D7748A4BD6BFA4700041C1B7F5"><enum>(C)</enum><text>any combination of credits under
subparagraphs (A) and (B).</text>
</subparagraph></paragraph><paragraph id="HD1B99620E2ED45C092A5CA30113F80A1" indent="up1"><enum>(7)</enum><text>An electricity or natural gas savings
credit may be sold or exchanged by the entity to whom issued or by any other
entity that acquires the credit. An energy efficiency credit for any year that
is not used to satisfy the minimum energy savings requirement of subsection (a)
for that year may be carried forward for use within the next 4 years.</text>
</paragraph><paragraph id="H81F7E3AD3F27452ABC1B357751F0D248" indent="up1"><enum>(8)</enum><text>During the first year covered by the
standards, a retail electricity or natural gas supplier that has reason to
believe that it will not have sufficient electricity savings credits to comply
with subsection (a) may—</text>
<subparagraph id="H0332DF958A9D47D28C95557F93D5B51C"><enum>(A)</enum><text>submit a plan to the Secretary
demonstrating that the retail electricity or natural gas supplier will earn
sufficient credits within the next two calendar years which, when taken into
account, will enable the retail electricity or natural gas supplier to meet the
requirements of subsection (a) for the calendar year involved; and</text>
</subparagraph><subparagraph id="H4FF026FA972541A4A138EBE7A5CFD0B7"><enum>(B)</enum><text>upon the approval of the plan by the
Secretary, apply credits that the plan demonstrates will be earned within the
next two calendar years to meet the requirements of subsection (a) for the
calendar year involved.</text>
</subparagraph></paragraph><paragraph id="H3CEEE4192FD94E9296DAEB18D14CC654" indent="up1"><enum>(9)</enum><text>Any retail electricity or natural gas
supplier may elect to comply with the requirements of this section in any
calendar year by paying a fee of 3 cents per kilowatt hour, and 30 cents per
therm, for any portion of the electricity or natural gas savings it would be
obligated to achieve in that year by not later than March 31 of the following
year. Funds produced from such fees shall be deposited in an escrow account
established by the Secretary, and shall be distributed to the States for their
use in creating electricity or natural gas savings at customer
facilities.</text>
</paragraph></subsection><subsection id="HEB5BF1F4EF1F482982C78041208D0084"><enum>(d)</enum><header>Enforcement of
compliance</header><paragraph commented="no" display-inline="yes-display-inline" id="H032442C4DEA14FF7B9678400B26377D8"><enum>(1)</enum><text>If the State regulatory
authority with ratemaking jurisdiction over a State-regulated retail
electricity or natural gas supplier notifies the Secretary that it will enforce
compliance by such supplier with the performance standards under subsection (a)
of this section, such State regulatory authority shall have the authority to
administer and enforce such standards for such supplier under State law. If the
State regulatory authority does not so notify the Secretary, the Secretary
shall exercise such authority until receiving such notice from the State
regulatory authority.</text>
</paragraph><paragraph id="HDA70ADD3F8214E89861E201D346343EC" indent="up1"><enum>(2)</enum><text>Not later than July 1 of the calendar
years 2008, 2010, 2012, 2014, and 2016, each retail electricity and natural gas
supplier shall submit the compliance report required under subsection (b)
to—</text>
<subparagraph id="HD2A42D4867AF40B98DC4DBD362004240"><enum>(A)</enum><text>the appropriate State regulatory
authority, if such authority has notified the Secretary under subsection (d),
or</text>
</subparagraph><subparagraph id="H2C2515742DFD4E49822999D8FADAF48B"><enum>(B)</enum><text>the Secretary to determine and enforce
compliance with the standards.</text>
</subparagraph></paragraph><paragraph id="H3F692FE5A6F547068D3F8C72F683818F" indent="up1"><enum>(3)</enum><text>In the case of any retail electricity
or natural gas supplier for which the Secretary is enforcing compliance with
the standards under this section, if such supplier fails to comply with such
standards for two consecutive calendar years, the Secretary shall determine the
number of kilowatt hours of electricity savings, or therms of natural gas
savings, by which the supplier has fallen short of the standards, and, by
order, require such supplier, after notice and opportunity for hearing, to
deposit in an escrow account to be designated by the Secretary an amount equal
to 3.5 cents per kilowatt hour for each such kilowatt hour, and 35 cents per
therm for each such therm. The holder of such escrow account shall annually
distribute the total amount of such account to the States to be used by the
States for the purpose of achieving customer electricity and natural gas
savings. Any retail electricity or natural gas supplier required to make such a
payment may, within 60 calendar days after the issuance of such order, bring an
action in the United States Court of Appeals for the District of Columbia for
judicial review of such order. Such court shall have jurisdiction to enter a
judgment affirming, modifying, or setting aside such order or remanding such
order in whole or in part to the Secretary.</text>
</paragraph></subsection><subsection id="H620E61FD60BA458FB520DCB411400DC"><enum>(e)</enum><header>Information
collection</header><text>The Secretary may collect the information necessary to
verify and audit—</text>
<paragraph id="HB90FD69A832E4EE4BA9000B44F280097"><enum>(1)</enum><text>the annual
electric energy sales, natural gas sales, electricity savings, and natural gas
savings of any entity applying for electricity or natural gas savings credits
under this section,</text>
</paragraph><paragraph id="H2FDD894CE3C74427AC865747A6BE388"><enum>(2)</enum><text>the validity of
electricity or natural gas savings credits submitted by a retail electricity or
natural gas supplier to the Secretary, and</text>
</paragraph><paragraph id="HF14895C76AE04BE3A633DE8B507C8968"><enum>(3)</enum><text>the quantity of
electricity and natural gas sales of all retail electricity and natural gas
suppliers.</text>
</paragraph></subsection><subsection id="HFAC9BA34ED9F44F8826679E463F06164"><enum>(f)</enum><header>State
law</header><text>Nothing in this section shall supersede or otherwise affect
any State or local law requiring or otherwise relating to reductions in total
annual electricity or natural gas energy consumption by or peak power
consumption by electric consumers to the extent that such State or local law
requires more stringent reductions than those required under this section. Any
retail electricity or natural gas supplier that achieves reductions referred to
in this section in accordance with State requirements shall be entitled to full
credit under this section for such reductions to the extent that such
reductions meet the requirements of this section and the regulations under this
section (including verification and monitoring requirements).</text>
</subsection><subsection id="H0F450838FEB34BC28835D0A7678BB847"><enum>(g)</enum><header>Definitions</header><text>For
purposes of this section:</text>
<paragraph id="H5D995E9AE72D4A4982A7BF6485ADD888"><enum>(1)</enum><text>The term
<quote>retail electricity or natural supplier</quote> means a person that sells
electric energy or natural gas to consumers and sold not less than 1,000,000
megawatt-hours of electric energy or 20,000,000 therms of natural gas to
consumers for purposes other than resale during the preceding calendar year;
except that such term does not include the United States, a State or any
political subdivision of a State, or any agency, authority, or instrumentality
of any one or more of the foregoing, or a rural electric cooperative.</text>
</paragraph><paragraph id="H240A0E461A15481999E73C80D1A807D6"><enum>(2)</enum><text>The term
<quote>retail electricity or natural gas supplier’s base amount</quote> means
the total amount of electric energy or natural gas sold by the retail
electricity or natural gas supplier to customers during the most recent
calendar year for which information is available.</text>
</paragraph><paragraph id="H45E7E2C41ED54D899D31766EF1DA826B"><enum>(3)</enum><text>The term
<quote>electricity savings</quote> means reductions in end-use electricity
consumption in customer facilities relative to consumption at those same
facilities in a base year as defined in rules issued by the Secretary, or in
the case of new facilities, relative to reference facilities defined in rules
issued by the Secretary, or distributed generation efficiency measures,
including fuel cells and combined heat and power (CHP) technologies, that
provide electricity only for onsite customer use.</text>
</paragraph><paragraph id="HFB7197AE34A046D793E7110000DDB54E"><enum>(4)</enum><text>The term
<quote>natural gas savings</quote> means reductions in end-use natural gas
consumption in customer facilities relative to consumption at those same
facilities in a base year as defined in rules issued by the Secretary, or in
the case of new facilities, relative to reference facilities defined in rules
issued by the
Secretary.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDE919B6BF1D64A249FFCC1E2D3D61070"><enum>(b)</enum><header>Table of
contents</header><text>The table of contents for title VII of the Public
Utility Regulatory Policies Act of 1978 is amended by adding the following new
item at the end thereof:</text>
<quoted-block display-inline="no-display-inline" id="HD5E987A294234CD79459110838A0C2D2" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 610. Efficiency resource standard for
retail electricity and natural gas
suppliers.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="H82D8866467FA4D37AFF6C13E00DA7600" section-type="subsequent-section"><enum>205.</enum><header>Federal renewable
portfolio standard</header>
<subsection id="H27C7147DF8494CEAB1479DD964711096"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Title VI of the
Public Utility Regulatory Policies Act of 1978 is amended by adding at the end
the following:</text>
<quoted-block id="H1E99DC32B54240A7B2E6D890970035DF">
<section id="HC6F2A55695944E47ADFFCF52F8534B3"><enum>611.</enum><header>Federal
renewable portfolio standard</header>
<subsection id="H9019E2F45CA9496DAD024F6EAF077F47"><enum>(a)</enum><header>Minimum
renewable generation requirement</header><text>For each calendar year beginning
in calendar year 2009, each retail electric supplier shall submit to the
Secretary, not later than April 1 of the following calendar year, renewable
energy credits in an amount equal to the required annual percentage specified
in subsection (b).</text>
</subsection><subsection id="HCDCF909217FE4FD89200BE54CC4230BA"><enum>(b)</enum><header>Required annual
percentage</header><text>For calendar years after 2008, the required annual
percentage of the retail electric supplier’s base amount that shall be
generated from renewable energy resources, or otherwise credited towards such
percentage requirement pursuant to subsection (c), shall be the percentage
specified in the following table:</text>
<table blank-lines-before="1" line-rules="no-gen" table-type="subformat">
<tgroup cols="2">
<thead>
<row><entry></entry><entry colname="I50"><bold>Required
annual</bold></entry>
</row>
<row><entry colname="I49"><bold>Calendar
Years</bold></entry><entry colname="I50"><bold>percentage</bold></entry>
</row>
</thead>
<tbody>
<row><entry colname="I26">2009 through 2010</entry><entry colname="I07">1</entry>
</row>
<row><entry colname="I26">2010 through 2011</entry><entry colname="I07">2</entry>
</row>
<row><entry colname="I26">2011 through 2012</entry><entry colname="I07">4</entry>
</row>
<row><entry colname="I26">2012 through 2013</entry><entry colname="I07">6</entry>
</row>
<row><entry colname="I26">2013 through 2015</entry><entry colname="I07">8</entry>
</row>
<row><entry colname="I26">2015 through 2016</entry><entry colname="I07">10</entry>
</row>
<row><entry colname="I26">2016 through 2017</entry><entry colname="I07">12</entry>
</row>
<row><entry colname="I26">2017 through 2018</entry><entry colname="I07">14</entry>
</row>
<row><entry colname="I26">2018 through 2019</entry><entry colname="I07">16</entry>
</row>
<row><entry colname="I26">2019 through 2020</entry><entry colname="I07">18</entry>
</row>
<row><entry colname="I26">2020 and thereafter</entry><entry colname="I07">20.</entry>
</row>
</tbody>
</tgroup>
</table>
</subsection><subsection id="HA305202082A448A091705FEEE40E951"><enum>(c)</enum><header>Submission of
credits</header><paragraph commented="no" display-inline="yes-display-inline" id="H483EA06C772540479612A722C87323B2"><enum>(1)</enum><text>A
retail electric supplier may satisfy the requirements of subsection (a) through
the submission of renewable energy credits—</text>
<subparagraph id="HD0793529125B495BBDC3CE17DC2ED8E1" indent="up1"><enum>(A)</enum><text>issued to the retail electric supplier
under subsection (d);</text>
</subparagraph><subparagraph id="H2673432A52554740A92F452C2DDA1283" indent="up1"><enum>(B)</enum><text>obtained by purchase or exchange under
subsection (e); or</text>
</subparagraph><subparagraph id="H7184FD9C19F34BC5819C9B3369F79AA" indent="up1"><enum>(C)</enum><text>borrowed under subsection (f).</text>
</subparagraph></paragraph><paragraph id="HFDEACF45C6EF4A43BF64FC82C4B88E2D" indent="up1"><enum>(2)</enum><text>A renewable energy credit may be
counted toward compliance with subsection (a) only once.</text>
</paragraph></subsection><subsection id="H6863D8292B3F4F0A9CCD5DB9B5B94FB9"><enum>(d)</enum><header>Issuance of
credits</header><paragraph commented="no" display-inline="yes-display-inline" id="H526728EAE3A4480F968E990048EDA8E"><enum>(1)</enum><text>The
Secretary shall establish by rule, not later than 1 year after the date of
enactment of this section, a program to issue and monitor the sale or exchange
of, and track, renewable energy credits.</text>
</paragraph><paragraph id="HA34A3FDDC7EC4B65BFADB827A1A60033" indent="up1"><enum>(2)</enum><text>Under the program established by the
Secretary, an entity that generates electric energy through the use of a
renewable energy resource may apply to the Secretary for the issuance of
renewable energy credits. The application shall indicate—</text>
<subparagraph id="H97A7F206A2BC47D2BB1545A1B4D682D"><enum>(A)</enum><text>the type of renewable energy resource
used to produce the electricity;</text>
</subparagraph><subparagraph id="HADA031AB6D454DDA98F0D0A1F7C92F00"><enum>(B)</enum><text>the location where the electric energy
was produced; and</text>
</subparagraph><subparagraph id="H8AFF5499907F4E10BA40B4E3C2C3513E"><enum>(C)</enum><text>any other information the Secretary
determines appropriate.</text>
</subparagraph></paragraph><paragraph id="HEBCD8E17B5534A99B63459CE80E810B4" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H1DBBF1D9FF224746BF57DCE6AB13A6B3"><enum>(A)</enum><text>Except as provided in
subparagraphs (B), (C), and (D), the Secretary shall issue to each entity that
generates electric energy one renewable energy credit for each kilowatt hour of
electric energy the entity generates from the date of enactment of this section
and in each subsequent calendar year through the use of a renewable energy
resource at an eligible facility.</text>
</subparagraph><subparagraph id="H53C0677C373B40DFAAFAB96DAD7000DC" indent="up1"><enum>(B)</enum><text>For incremental hydropower the
renewable energy credits shall be calculated based on the expected increase in
average annual generation resulting from the efficiency improvements or
capacity additions. The number of credits shall be calculated using the same
water flow information used to determine a historic average annual generation
baseline for the hydroelectric facility and certified by the Secretary or the
Federal Energy Regulatory Commission. The calculation of the renewable energy
credits for incremental hydropower shall not be based on any operational
changes at the hydroelectric facility not directly associated with the
efficiency improvements or capacity additions.</text>
</subparagraph><subparagraph id="HC845A83D194844299EDD292E20DA18A3" indent="up1"><enum>(C)</enum><text>The Secretary shall issue two
renewable energy credits for each kilowatt hour of electric energy generated
and supplied to the grid in that calendar year through the use of a renewable
energy resource at an eligible facility located on Indian land. For purposes of
this paragraph, renewable energy generated by biomass cofired with other fuels
is eligible for two credits only if the biomass was grown on such land.</text>
</subparagraph><subparagraph id="HF450858D760040E594F17581B4AFB537" indent="up1"><enum>(D)</enum><text>For electric energy resources
produced from a generation offset, the Secretary shall issue two renewable
energy credits for each kilowatt hour generated.</text>
</subparagraph></paragraph></subsection><subsection id="HF6C85D27DF6A42A500E390186B5491F6"><enum>(E)</enum><text>To be eligible for
a renewable energy credit, the unit of electric energy generated through the
use of a renewable energy resource may be sold or may be used by the generator.
If both a renewable energy resource and a non-renewable energy resource are
used to generate the electric energy, the Secretary shall issue renewable
energy credits based on the proportion of the renewable energy resources used.
The Secretary shall identify renewable energy credits by type and date of
generation.</text>
<paragraph id="H57A1283ACE6544BB8D2FF358D17D6959" indent="up1"><enum>(4)</enum><text>When a generator sells electric
energy generated through the use of a renewable energy resource to a retail
electric supplier under a contract subject to section 210 of this Act, the
retail electric supplier is treated as the generator of the electric energy for
the purposes of this section or the duration of the contract.</text>
</paragraph><paragraph id="H290CD677BA2D4BD995D3876E1D6C6424" indent="up1"><enum>(5)</enum><text>The Secretary shall issue renewable
energy credits for existing facility offsets to be applied against a retail
electric supplier’s required annual percentage. Such credits are not tradeable
and may be used only in the calendar year generation actually occurs.</text>
</paragraph></subsection><subsection id="H8F2E822DCC4A4E6EB1D98C06D803AF5E"><enum>(e)</enum><header>Credit
trading</header><text>A renewable energy credit, may be sold or exchanged by
the entity to whom issued or by any other entity who acquires the renewable
energy credit. A renewable energy credit for any year that is not used to
satisfy the minimum renewable generation requirement of subsection (a) for that
year may be carried forward for use within the next 4 years.</text>
</subsection><subsection id="H5CF81080BD1C46F59CEE2F1E3E9D49F4"><enum>(f)</enum><header>Credit
borrowing</header><text>At any time before the end of calendar year 2009, a
retail electric supplier that has reason to believe it will not have sufficient
renewable energy credits to comply with subsection (a) may—</text>
<paragraph id="H44E1B23834344227009D7153B6AA0CD"><enum>(1)</enum><text>submit a plan to
the Secretary demonstrating that the retail electric supplier will earn
sufficient credits within the next 3 calendar years which, when taken into
account, will enable the retail electric supplier to meet the requirements of
subsection (a) for calendar year 2009 and the subsequent calendar years
involved; and</text>
</paragraph><paragraph id="H17F685D234604D80AAC7F416E964D6D9"><enum>(2)</enum><text>upon the approval
of the plan by the Secretary, apply renewable energy credits that the plan
demonstrates will be earned within the next 3 calendar years to meet the
requirements of subsection (a) for each calendar year involved.</text>
</paragraph><continuation-text continuation-text-level="subsection">The
retail electric supplier must repay all of the borrowed renewable energy
credits by submitting an equivalent number of renewable energy credits, in
addition to those otherwise required under subsection (a), by calendar year
2010 or any earlier deadlines specified in the approved plan. Failure to repay
the borrowed renewable energy credits shall subject the retail electric
supplier to civil penalties under subsection (h) for violation of the
requirements of subsection (a) for each calendar year involved.</continuation-text></subsection><subsection id="H16CC70C8FB5646C5B2B644A05DC1ED7B"><enum>(g)</enum><header>Credit cost
cap</header><text>The Secretary shall offer renewable energy credits for sale
at the lesser of 3 cents per kilowatt-hour or 200 percent of the average market
value of renewable credits for the applicable compliance period. On January 1
of each year following calendar year 2008, the Secretary shall adjust for
inflation the price charged per credit for such calendar year, based on the
Gross Domestic Product Implicit Price Deflator.</text>
</subsection><subsection id="HCF85810C75AF4F798BFE77EACA4105E"><enum>(h)</enum><header>Enforcement</header><text display-inline="yes-display-inline">The Secretary may bring an action in the
appropriate United States district court to impose a civil penalty on a retail
electric supplier that does not comply with subsection (a), unless the retail
electric supplier was unable to comply with subsection (a) for reasons outside
of the supplier's reasonable control (including weather-related damage,
mechanical failure, lack of transmission capacity or availability, strikes,
lockouts, actions of a governmental authority). A retail electric supplier who
does not submit the required number of renewable energy credits under
subsection (a) shall be subject to a civil penalty of not more than the greater
of 3 cents or 200 percent of the average market value of credits for the
compliance period for each renewable energy credit not submitted..</text>
</subsection><subsection id="HAE8BD6D4A2144868BBDAE524FC0899AF"><enum>(i)</enum><header>Information
collection</header><text>The Secretary may collect the information necessary to
verify and audit—</text>
<paragraph id="HB64EE7AF1B21479CB2C234D7F2D1E2A9"><enum>(1)</enum><text>the annual
electric energy generation and renewable energy generation of any entity
applying for renewable energy credits under this section;</text>
</paragraph><paragraph id="H3391EAB70E3844818370A08BE534FF5C"><enum>(2)</enum><text>the validity of
renewable energy credits submitted by a retail electric supplier to the
Secretary; and</text>
</paragraph><paragraph id="HFAC554CF1DD54DFA869296D6EB95A3AC"><enum>(3)</enum><text>the quantity of
electricity sales of all retail electric suppliers.</text>
</paragraph></subsection><subsection id="H43CE3DDFB797453B8E02076849FF0581"><enum>(j)</enum><header>Environmental
savings clause</header><text>Incremental hydropower shall be subject to all
applicable environmental laws and licensing and regulatory requirements.</text>
</subsection><subsection id="HE551087933EF4DDE918F98A32415029E"><enum>(k)</enum><header>Existing
programs</header><text>This section does not preclude a State from imposing
additional renewable energy requirements in that State, including specifying
eligible technologies under such State requirements.</text>
</subsection><subsection id="H0D88A09C228346F0AA2D61FF4950F8A"><enum>(l)</enum><header>Definitions</header><text>For
purposes of this section:</text>
<paragraph id="H8D0A5406536F4229B8F2201A3DC164F"><enum>(1)</enum><header>Biomass</header><text>The
term <term>biomass</term> means any organic material that is available on a
renewable or recurring basis, including dedicated energy crops, trees grown for
energy production, wood waste and wood residues, plants (including aquatic
plants, grasses, and agricultural crops), residues, fibers, animal wastes and
other organic waste materials (but not including unsegregated municipal solid
waste (garbage)), and fats and oils, except that with respect to material
removed from National Forest System lands the term includes only organic
material from—</text>
<subparagraph id="HA153FF702C794B0EB607D39FC7ED032E"><enum>(A)</enum><text>thinnings from
trees that are less than 12 inches in diameter;</text>
</subparagraph><subparagraph id="H895130F0AD5F44829F241EB5AF176E28"><enum>(B)</enum><text>slash;</text>
</subparagraph><subparagraph id="H200A3132D3BB4D7690535E00F95BBD1E"><enum>(C)</enum><text>brush; and</text>
</subparagraph><subparagraph id="H74543163A26849CA9700DA3F554C5F49"><enum>(D)</enum><text>mill
residues.</text>
</subparagraph></paragraph><paragraph id="H3CDDFFB1A974420DB0F07AB00F29E85"><enum>(2)</enum><header>Eligible
facility</header><text>The term <term>eligible facility</term> means—</text>
<subparagraph id="H652FE4F564484B318F6BDBAA48863600"><enum>(A)</enum><text>a facility for the
generation of electric energy from a renewable energy resource that is placed
in service on or after the date of enactment of this section; or</text>
</subparagraph><subparagraph id="H63511693BAEF40D1B7D38C72FED35AB"><enum>(B)</enum><text>a repowering or
cofiring increment that is placed in service on or after the date of enactment
of this section at a facility for the generation of electric energy from a
renewable energy resource that was placed in service before that date.</text>
</subparagraph></paragraph><paragraph id="H1348458424E44313929BCEF3C4EF486"><enum>(3)</enum><header>Eligible
renewable energy resource</header><text display-inline="yes-display-inline">The
term <term>renewable energy resource</term> means solar, wind, ocean, or
geothermal energy, biomass (excluding solid waste and paper that is commonly
recycled), landfill gas, a generation offset, or incremental hydropower.</text>
</paragraph><paragraph id="H0C42B724DF1C42DD90482B7697A3A181"><enum>(4)</enum><header>Generation
offset</header><text display-inline="yes-display-inline">The term
<term>generation offset</term> means reduced electricity usage metered at a
site where a customer consumes energy from a renewable energy
technology.</text>
</paragraph><paragraph id="H0B9D6E3BEBEE4F278BA40728F691C800"><enum>(5)</enum><header>Existing
facility offset</header><text>The term <term>existing facility offset</term>
means renewable energy generated from an existing facility, not classified as
an eligible facility, that is owned or under contract, directly or indirectly,
to a retail electric supplier on the date of enactment of this section.</text>
</paragraph><paragraph id="H0876A520F72541F185C3A3D7363F18E7"><enum>(6)</enum><header>Incremental
hydropower</header><text>The term <term>incremental hydropower</term> means
additional generation that is achieved from increased efficiency or additions
of capacity on or after the date of enactment of this section or the effective
date of the applicable State renewable portfolio standard program, at a
hydroelectric facility that was placed in service before that date.</text>
</paragraph><paragraph id="HE1C8BC95FF47459EA3F8708791778EE8"><enum>(7)</enum><header>Indian
land</header><text>The term <term>Indian land</term> means—</text>
<subparagraph id="H2A88247DE49D49D3B52B37F76BA15735"><enum>(A)</enum><text>any land within
the limits of any Indian reservation, pueblo, or rancheria;</text>
</subparagraph><subparagraph id="H0DA1AB4A7C9C48B8A6BAC6587634A3EE"><enum>(B)</enum><text>any land not
within the limits of any Indian reservation, pueblo, or rancheria title to
which was on the date of enactment of this paragraph either held by the United
States for the benefit of any Indian tribe or individual or held by any Indian
tribe or individual subject to restriction by the United States against
alienation;</text>
</subparagraph><subparagraph id="HE8B141E0A5ED4FEFA5CC98389D93A48C"><enum>(C)</enum><text>any dependent
Indian community; and</text>
</subparagraph><subparagraph id="H16FB577A0CBB4627BD10800059DA4F16"><enum>(D)</enum><text>any land conveyed
to any Alaska Native corporation under the Alaska Native Claims Settlement
Act.</text>
</subparagraph></paragraph><paragraph id="HC439BF568E0648B5AA4BC2C401F1E2F4"><enum>(8)</enum><header>Indian
tribe</header><text>The term <term>Indian tribe</term> means any Indian tribe,
band, nation, or other organized group or community, including any Alaskan
Native village or regional or village corporation as defined in or established
pursuant to the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1601">43 U.S.C. 1601 et seq.</external-xref>),
which is recognized as eligible for the special programs and services provided
by the United States to Indians because of their status as Indians.</text>
</paragraph><paragraph id="HBB9EDED1A98F4DC68B223097801330B4"><enum>(9)</enum><header>Renewable
energy</header><text>The term <term>renewable energy</term> means electric
energy generated by a renewable energy resource.</text>
</paragraph><paragraph id="H0DB51D1E0EEF4AA59739A3DBF632D692"><enum>(10)</enum><header>Renewable
energy resource</header><text>The term <term>renewable energy resource</term>
means solar, wind, ocean, geothermal energy, biomass (not including municipal
solid waste), landfill gas, a generation offset, or incremental
hydropower.</text>
</paragraph><paragraph id="H6C59EC0007764168955D25E0FA8B67D"><enum>(11)</enum><header>Repowering or
cofiring increment</header><text>The term <term>repowering or cofiring
increment</term> means—</text>
<subparagraph id="H9602E51AD0DC497C94C29AF85D07818"><enum>(A)</enum><text>the additional
generation from a modification that is placed in service on or after the date
of enactment of this section to expand electricity production at a facility
used to generate electric energy from a renewable energy resource or to cofire
biomass that was placed in service before the date of enactment of this
section, or</text>
</subparagraph><subparagraph id="H3098C774DB2145978DD3CACECAB907F9"><enum>(B)</enum><text>the additional
generation above the average generation in the 3 years preceding the date of
enactment of this section to expand electricity production at a facility used
to generate electric energy from a renewable energy resource or to cofire
biomass that was placed in service before the date of enactment of this
section.</text>
</subparagraph></paragraph><paragraph id="H0779BD34E97A490D8F3078C540DD5322"><enum>(12)</enum><header>Retail electric
supplier</header><text>The term <term>retail electric supplier</term> means a
person that sells electric energy to electric consumers and sold not less than
1,000,000 megawatt-hours of electric energy to electric consumers for purposes
other than resale during the preceding calendar year; except that such term
does not include the United States, a State or any political subdivision of a
State, or any agency, authority, or instrumentality of any one or more of the
foregoing.</text>
</paragraph><paragraph id="H5FFA000A68924A23BC9B512C3F821FF7"><enum>(13)</enum><header>Retail electric
supplier’s base amount</header><text display-inline="yes-display-inline">The
term <term>retail electric supplier’s base amount</term> means the total amount
of electric energy sold by the retail electric supplier to electric customers
during the most recent calendar year for which information is available,
excluding electric energy generated by—</text>
<subparagraph id="H8484939DBC3D4198A365F3E67C75E8D"><enum>(A)</enum><text display-inline="yes-display-inline">an eligible renewable energy resource;
or</text>
</subparagraph><subparagraph id="HBEAD50CAF8034C11B049A7DD95DCE800"><enum>(B)</enum><text display-inline="yes-display-inline">a hydroelectric facility.</text>
</subparagraph></paragraph></subsection><subsection id="H58FA20BF976340F18F90959BC7330007"><enum>(m)</enum><header>Sunset</header><text>This
section expires December 31,
2030.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H067FDF6AB027446D8DF3A602E7F65CF8"><enum>(b)</enum><header>Table of
contents</header><text>The table of contents for such title is amended by
adding the following new item at the end:</text>
<quoted-block display-inline="no-display-inline" id="HC245C7D47E0243A48C29926ED66C85CB" style="OLC">
<toc container-level="quoted-block-container" idref="H1E99DC32B54240A7B2E6D890970035DF" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HC6F2A55695944E47ADFFCF52F8534B3" level="section">Sec. 611. Federal renewable portfolio
standard.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="H0A6751EC632448C4005B7BD4768C5DB4" section-type="subsequent-section"><enum>206.</enum><header>Net
metering</header>
<subsection id="H0DEF51E0EC0A4AAEA96243FF68E75724"><enum>(a)</enum><header>Adoption of
standard</header><text>Section 111(d)(11) of the Public Utility Regulatory
Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2621">16 U.S.C. 2621(d)</external-xref>) is amended to read as follows:</text>
<quoted-block id="H677DEBC578254BCC92C00034EA00A380" style="OLC">
<paragraph id="HA02AA100D93E40FB837EDDDEAC35B313"><enum>(11)</enum><header>Net
metering</header><subparagraph commented="no" display-inline="yes-display-inline" id="H84034BEDE0114C84B227AF3D2F3464D8"><enum>(A)</enum><text>Each electric utility
shall make available upon request net metering service to any electric consumer
that the electric utility serves.</text>
</subparagraph><subparagraph id="HEC8A61917D1E4D55BB2E59B06D17AC1D" indent="up1"><enum>(B)</enum><text>For purposes of implementing this
paragraph, any reference contained in this section to the date of enactment of
the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a
reference to the date of enactment of this paragraph.</text>
</subparagraph><subparagraph id="H601A95D4569C411FBF85195600E57905" indent="up1"><enum>(C)</enum><text>Notwithstanding subsections (b) and
(c) of section 112, each State regulatory authority may consider and make a
determination concerning whether it is appropriate in the public interest to
not implement the standard set out in subparagraph (A) not later than 1 year
after the date of enactment of this paragraph.</text>
</subparagraph><subparagraph id="H5813744883F8437997AB74AA10E67DD3" indent="up1"><enum>(D)</enum><text>Nothing in this section shall preclude
a State from establishing additional incentives or to encourage on-site
generating facilities and net metering in addition to that required under this
section.</text>
</subparagraph><subparagraph id="H62EB62EE3C674BA09D3B6804CB694C6E" indent="up1"><enum>(E)</enum><text>The Department shall report within 11
months of enactment and annually thereafter on the public benefit provided by
adoption of net metering and interconnection standards, and the status of state
adoption of
such.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3A4378E136B34FE7AB8E0672C8D204B"><enum>(b)</enum><header>Special rules for net
metering</header><text>Section 115 of the Public Utility Regulatory Policies
Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2625">16 U.S.C. 2625</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H853A4F8AEF5746839F9FD977C777EF26" style="OLC">
<subsection id="H164B99AF0D8F4F54B043EA2E789BEC90"><enum>(i)</enum><header>Net
metering</header><text>In undertaking the consideration and making the
determination under section 111 with respect to the standard concerning net
metering established by section 111(d)(11), the term net metering service shall
mean a service provided in accordance with the following standards:</text>
<paragraph id="H92A59DBB8729464EA28F29B92CB50091"><enum>(1)</enum><text>An electric
utility—</text>
<subparagraph id="HD5FB572C6282402F8EA100DF221DD811"><enum>(A)</enum><text>shall charge the
owner or operator of an on-site generating facility rates and charges that are
identical to those that would be charged other electric consumers of the
electric utility in the same rate class; and</text>
</subparagraph><subparagraph id="H07CA7DA33B4F4038828CE4923F23A1B9"><enum>(B)</enum><text>shall not charge
the owner or operator of an on-site generating facility any additional standby,
capacity, interconnection, or other rate or charge.</text>
</subparagraph></paragraph><paragraph id="H5E3F849A1C0D47FA953591AEAE7D65F8"><enum>(2)</enum><text>An electric
utility that sells electric energy to the owner or operator of an on-site
generating facility shall measure the quantity of electric energy produced by
the on-site facility and the quantity of electric energy consumed by the owner
or operator of an on-site generating facility during a billing period with a
single bi-directional meter or otherwise in accordance with reasonable metering
practices.</text>
</paragraph><paragraph id="HC235349E3CD744CDAE0374102C10916E"><enum>(3)</enum><text>If the quantity of
electric energy sold by the electric utility to an on-site generating facility
exceeds the quantity of electric energy supplied by the on-site generating
facility to the electric utility during the billing period, the electric
utility may bill the owner or operator for the net quantity of electric energy
sold, in accordance with reasonable metering practices.</text>
</paragraph><paragraph id="HD7FD8DA099C04B4992E500000095CF40"><enum>(4)</enum><text display-inline="yes-display-inline">If the quantity of electric energy supplied
by the on-site generating facility to the electric utility exceeds the quantity
of electric energy sold by the electric utility to the on-site generating
facility during the billing period—</text>
<subparagraph id="HDE8C723F54EB4306A065A81145DF894E"><enum>(A)</enum><text>the electric
utility may bill the owner or operator of the on-site generating facility for
the appropriate charges for the billing period in accordance with paragraph;
and</text>
</subparagraph><subparagraph id="HC98DE879EEF54DE0B8D8AF7C00730357"><enum>(B)</enum><text>the owner or
operator of the on-site generating facility shall be credited for the excess
kilowatt-hours generated during the billing period, with the kilowatt-hour
credit appearing on the bill for the following billing period.</text>
</subparagraph></paragraph><paragraph id="H7936C71036484AD0B3D6F89792AF27AD"><enum>(5)</enum><text>An eligible
on-site generating facility and net metering system used by an electric
consumer shall meet all applicable safety, performance, reliability, and
interconnection standards established by the National Electrical Code, the
Institute of Electrical and Electronics Engineers, and Underwriters
Laboratories.</text>
</paragraph><paragraph id="H7FE0A89365274CDDA2FC4C1DCE58719F"><enum>(6)</enum><text>The Commission,
after consultation with State regulatory authorities and unregulated electric
utilities and after notice and opportunity for comment, may adopt, by rule,
additional control and testing and interconnection requirements for on-site
generating facilities and net metering systems that the Commission determines
are necessary to protect public safety and system reliability.</text>
</paragraph><paragraph id="H60F6AAF419B64791BB860031FA953102"><enum>(7)</enum><text>For purposes of
this subsection:</text>
<subparagraph id="HB4A0CE03E22B4E48AD3432DAE04267CB"><enum>(A)</enum><text>The term
<quote>eligible on-site generating facility</quote> means a facility on the
site of a residential electric consumer with a maximum generating capacity of
10 kilowatts or less that is fueled by solar energy, wind energy, or fuel
cells; or a facility on the site of a commercial electric consumer with a
maximum generating capacity of 500 1000 kilowatts or less that is fueled solely
by a renewable energy resource, landfill gas, or a high efficiency
system.</text>
</subparagraph><subparagraph id="HD1818A92942345079279B84C8100F7CC"><enum>(B)</enum><text>The term
<quote>renewable energy resource</quote> means solar, wind, biomass,
micro-freeflow hydro, or geothermal energy.</text>
</subparagraph><subparagraph id="H22BB2C06992D4C469CCA7D62225C5363"><enum>(C)</enum><text>The term
<quote>high efficiency system</quote> means fuel cells or combined heat and
power.</text>
</subparagraph><subparagraph id="HA65C8600D63B4DFA95BC87D0442BF934"><enum>(D)</enum><text>The term
<quote>net metering service</quote> means service to an electric consumer under
which electric energy generated by that electric consumer from an eligible
on-site generating facility and delivered to the local distribution facilities
may be used to offset electric energy provided by the electric utility to the
electric consumer during the applicable billing
period.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle id="H095F6F4A54234431B7A49DBE8CB81E7E"><enum>B</enum><header>Energy Efficiency
Incentive</header>
<section commented="no" display-inline="no-display-inline" id="HBB94E78709384DD799A4D1FC474C9127" section-type="subsequent-section"><enum>211.</enum><header>Performance based
energy improvements for non-business property</header>
<subsection commented="no" display-inline="no-display-inline" id="H975D9D775B99473200B6317BB2873E92"><enum>(a)</enum><header>In
general</header><text>Subpart A of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section 25D the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="H9F0C393359F84879A5D68ECE1DD65637" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H34D31A8B4F334C5BB9D8DA403B6EEF1C"><enum>25E.</enum><header>Performance
based energy improvements</header>
<subsection commented="no" display-inline="no-display-inline" id="HA87DB6944BEC4A569457D55D50F0DCD2"><enum>(a)</enum><header>In
general</header><text>In the case of an individual, there shall be allowed as a
credit against the tax imposed by this chapter for the taxable year an amount
equal to the amount of qualified energy efficiency expenditures paid or
incurred by the taxpayer during the taxable year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE2120D741C36438A00FAA63D1D00EF37"><enum>(b)</enum><header>Limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA8D9E7814F124D66A3E74E9D42C107DF"><enum>(1)</enum><header>In
general</header><text>The amount allowed as a credit under subsection (a) shall
not exceed the product of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFAA82C817DF3453399D02E1F87003BE2"><enum>(A)</enum><text>the qualified
energy savings achieved, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBC4F64931F194862BFE6DFDF4B00ECB7"><enum>(B)</enum><text>$4,000.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6DCA182F242247E2BC3DBA00DC246736"><enum>(2)</enum><header>Minimum amount
of qualified energy savings</header><text>No credit shall be allowed under
subsection (a) with respect to any principal residence which achieves a
qualified energy savings of less than 20 percent.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H44D3CF7FAF38410DB6DF283DACD56E42"><enum>(3)</enum><header>Limitation based
on amount of tax</header><text>In the case of taxable years to which section
26(a)(2) does not apply, the credit allowed under subsection (a) for any
taxable year shall not exceed the excess of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H18DABCD4CC24423492002667CBCB8625"><enum>(A)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H674D74F1BD8F42F58487DDA6A17C5314"><enum>(B)</enum><text>the sum of the
credit allowable under this subpart (other than this section and sections 23,
24, and 25B) and section 27 for the taxable year.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDB2C4FFC8CD449F4AF02FEFD7BECCD61"><enum>(c)</enum><header>Qualified energy
efficiency expenditures</header><text>For purposes of this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF841B536B57E40D8B16FDFF8B1DFB45C"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified energy efficiency
expenditures</term> means any amount paid or incurred which is related to
producing qualified energy savings in a principal residence of the taxpayer
which is located in the United States.</text>
</paragraph><paragraph id="H876BF89B05914C7598AC9264E1F6A2E3"><enum>(2)</enum><header>No double
benefit for certain expenditures</header><text>The term <term>qualified energy
efficiency expenditures</term> shall not include any expenditure for which a
deduction or credit is otherwise allowed to the taxpayer under this
chapter.</text>
</paragraph><paragraph id="HECACD7E76A2549FD90F992E7E2B7417F"><enum>(3)</enum><header>Principal
residence</header><text>The term <term>principal residence</term> has the same
meaning as when used in section 121, except that—</text>
<subparagraph id="H0A2322BBDDF34F8DB298F5118745DEAA"><enum>(A)</enum><text>no ownership
requirement shall be imposed, and</text>
</subparagraph><subparagraph id="H2783A99EB03740069349A691B9D26CE4"><enum>(B)</enum><text>the period for
which a building is treated as used as a principal residence shall also include
the 60-day period ending on the 1st day on which it would (but for this
subparagraph) first be treated as used as a principal residence.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H550F12C203B1404DB8C2DC804CF5E2D7"><enum>(d)</enum><header>Qualified energy
savings</header><text>For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H65BE0517E2184D998682981760094F12"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified energy savings</term> means,
with respect to any principal residence, the amount (measured as a percentage)
by which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8264F8E43E2F4BA1ACEB3806378FB00"><enum>(A)</enum><text>the annual energy
use with respect to the principal residence after qualified energy efficiency
expenditures are made, as certified under paragraph (2), is less than</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H444E2C10F36B437CAB421F6C4FE871A2"><enum>(B)</enum><text>the annual energy
use with respect to the principal residence before the qualified energy
efficiency expenditures were made, as certified under paragraph (2).</text>
</subparagraph><continuation-text continuation-text-level="paragraph">In
determining annual energy use under subparagraph (B), any energy efficiency
improvements which are not attributable to qualified energy efficiency
expenditures shall be disregarded.</continuation-text></paragraph><paragraph id="H6760EB324C7A43D29F4124AFDEBD6100"><enum>(2)</enum><header>Certification</header>
<subparagraph id="HE8EE540E0E5445138201C3FEA6996CF6"><enum>(A)</enum><header>In
general</header><text>The Secretary, in consultation with the Secretary of
Energy, shall prescribe the procedures and methods for the making of
certifications under this paragraph based on the Residential Energy Services
Network (RESNET) Technical Guidelines in effect on the date of the enactment of
this section.</text>
</subparagraph><subparagraph id="H0426702D49D84F12B76538D974CF7C89"><enum>(B)</enum><header>Qualified
individuals</header><text>Any certification made under this paragraph may only
be made by an individual who is recognized by an organization certified by the
Secretary for such purposes.</text>
</subparagraph></paragraph></subsection><subsection id="HFAC2116F1F524B64AAA900F8F4EAF100"><enum>(e)</enum><header>Special
rules</header><text>For purposes of this section rules similar to the rules
under paragraphs (4), (5), (6), (7), (8), and (9) of section 25D(e) and section
25C(e)(2) shall apply.</text>
</subsection><subsection id="HEF462DC678B34D8EA544E47CEC30766E"><enum>(f)</enum><header>Basis
adjustments</header><text>For purposes of this subtitle, if a credit is allowed
under this section with respect to any expenditure with respect to any
property, the increase in the basis of such property which would (but for this
subsection) result from such expenditure shall be reduced by the amount of the
credit so allowed.</text>
</subsection><subsection id="H62B2BAFD29CA4E89BB62EDD9D2AD5D9D"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply with respect to any property placed in service after
December 31,
2011.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8B9E37299F7F4378B81BD3E449EF8EA"><enum>(b)</enum><header>Interim guidance
on certification</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB99B74E0A4384CE8006C8053ACFDB5DF"><enum>(1)</enum><header>In
general</header><text>Not later than 90 days after the date of the enactment of
this Act, the Secretary of the Treasury, in consultation with the Secretary of
Energy, shall issue interim guidance on—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBECB70E5AF534DCCA53C16BBF242D452"><enum>(A)</enum><text>the procedures and
methods for making certifications under sections 25E(d)(2)(A) and 179F(d)(2)(A)
of the Internal Revenue Code of 1986, as added by subsection (a) and section
203, respectively;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9F35DC7A9145471B006416F6AC95004F"><enum>(B)</enum><text>the recognition of
qualified individuals under sections 25E(d)(2)(B) and 179F(d)(2)(B) of such
Code for the purpose of making such certifications; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEED3C753B9E842DBBB00A136EF40432"><enum>(C)</enum><text>how participation
in State energy efficiency programs can be used in the procedures and methods
described in subparagraph (A).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCAAE84F9F4024F33B0B63F04E7149D49"><enum>(2)</enum><header>Consultation
with stakeholders</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H44993D044FB744A4A4DB5FAD363C4DBE"><enum>(A)</enum><header>In
general</header><text>The Secretary of the Treasury, in issuing guidance
pursuant to paragraph (1), shall consider comments from energy efficiency
experts and other interested parties.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H57EAEC8C52D24F0D877201FCD679B0F"><enum>(B)</enum><header>Other
considerations</header><text>In the case of guidance issued pursuant to
paragraph (1)(B), the Secretary of the Treasury shall also consider—</text>
<clause commented="no" display-inline="no-display-inline" id="H8CC88C0BC92D4E45AB34F01DDEFD003E"><enum>(i)</enum><text>the Residential
Energy Services Network Technical Guidelines and other pertinent guidelines for
evaluating energy savings;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H104446ACD5CE41BBB201914DB0BD5800"><enum>(ii)</enum><text>energy modeling
software, including software accredited through the Residential Energy Services
Network; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB302591611E74E11A4B2CE2C58AB8F5D"><enum>(iii)</enum><text>quality
assurance procedures of the Building Performance Institute, Home Performance
through Energy Star, and the Residential Energy Services Network.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H83B2BC7710C3483A00BC85D67FD48D9"><enum>(c)</enum><header>Alternative
certification methods</header>
<paragraph commented="no" display-inline="no-display-inline" id="H131131797F344ABC9BE0F52091B0F8D3"><enum>(1)</enum><header>In
general</header><text>The Secretary of the Treasury shall establish a procedure
for individuals and businesses to petition for the approval of alternative
methods of certification under sections 25E(d)(2)(A) and 179F(d)(2)(A) of the
Internal Revenue Code of 1986, as added by subsection (a) and section 203,
respectively.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H17365225F52C446A9739C88FE2C2A2A4"><enum>(2)</enum><header>Determination</header><text>The
Secretary of the Treasury shall make a determination on the approval or
disapproval of such alternative methods of certification not later than 90 days
after receiving a petition under paragraph (1).</text>
</paragraph></subsection><subsection commented="no" id="H0D2DB79BEB65461BA3F211251E4F3BDD"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph commented="no" id="H3AB8EE3398BC448385EB7CCC1148413C"><enum>(1)</enum><text>Section 1016(a) is
amended by striking <quote>and</quote> at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting <quote>,
and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBF4026DA5BF540B6A1EA22A843F0ABB" style="OLC">
<paragraph commented="no" id="H982DCE058A064BEFB881B8F7FCAA85CE"><enum>(38)</enum><text>to the extent
provided in section
25E(f).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H041838408DC147BD807E94EA29DB4011"><enum>(2)</enum><text>The table of
sections for subpart A of part IV of subchapter A chapter 1 is amended by
inserting after the item relating to section 25D the following new item:</text>
<quoted-block id="H1F6A440D04F142FEBF4537C06688BA65" style="OLC">
<toc>
<toc-entry idref="H34D31A8B4F334C5BB9D8DA403B6EEF1C" level="section">Sec. 25E. Performance based energy
improvements.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H750E6412DF174512A2820041DF8600B6"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred in taxable years beginning after the date of the enactment of
this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H84A235C87D464ED5A4B6DE39005200AF" section-type="subsequent-section"><enum>212.</enum><header>Extension and
modification of credit for nonbusiness energy property</header>
<subsection commented="no" display-inline="no-display-inline" id="H09607FD94D41471F9B1175F329E685C2"><enum>(a)</enum><header>Extension</header><text>Subsection
(g) of section 25C (relating to termination) is amended by striking
<quote>December 31, 2007</quote> and inserting <quote>December 31,
2011</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H34B789639D2A4C0D8639DDB8A33408C1"><enum>(b)</enum><header>Labor costs for
qualified energy efficiency improvements</header><text>Section 25C(c)(1) is
amended by adding at the end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="H8F351073C1954E1FBC002178FA89B532" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">The amount
taken into account under subsection (a)(1) with respect to qualified energy
efficiency improvements shall include expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original installation of any
component described in this
paragraph.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5ED7A9A730554B8BA1F2F642F7E7C24C"><enum>(c)</enum><header>Modifications
for residential energy efficiency property expenditures</header>
<paragraph id="HAB7F77612C3C48D0894D52B9A7EEBD80"><enum>(1)</enum><header>Increased
limitation for oil furnaces and natural gas, propane, and oil hot water
boilers</header>
<subparagraph id="HCEB7F23F44F04538BE21C48566F507EA"><enum>(A)</enum><header>In
general</header><text>Subparagraphs (B) and (C) of section 25C(b)(3) are
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H276B23ECC25D4D7784D3AB5850B669F5" style="OLC">
<subparagraph id="H5072823A82DF4D2C8E0000CBB8ACA7D"><enum>(B)</enum><text>$150 for any
qualified natural gas furnace or qualified propane furnace, and</text>
</subparagraph><subparagraph id="HF25991818B4F47189EF6E25F55BB574D"><enum>(C)</enum><text>$300 for—</text>
<clause id="H7F8464EEDA854C7CBEABD52698619BEF"><enum>(i)</enum><text>any item of
energy-efficient building property, and</text>
</clause><clause id="H8D15DA2E29D94DA0B178F1FE1D002C68"><enum>(ii)</enum><text>any qualified oil
furnace, qualified natural gas hot water boiler, qualified propane hot water
boiler, or qualified oil hot water
boiler.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H7E788C827EF4456DA47769B9E775C400"><enum>(B)</enum><header>Conforming
amendment</header><text>Clause (ii) of section 25C(d)(2)(A) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="HE12EBF42310B4026812445734E161B4B" style="OLC">
<clause id="H93154F505BE543649457E56E00B2563E"><enum>(ii)</enum><text>any qualified
natural gas furnace, qualified propane furnace, qualified oil furnace,
qualified natural gas hot water boiler, qualified propane hot water boiler, or
qualified oil hot water boiler,
or</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H209E4CD0F1D34DD4910472D0B6B7E427"><enum>(2)</enum><header>Modifications of
standards for energy-efficient building property</header>
<subparagraph id="HCAF0EAB43AA64C05BF6B695DCDEDF1D5"><enum>(A)</enum><header>Electric heat
pumps</header><text>Subparagraph (B) of section 25C(d)(3) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H586FF65553AC40C0A5D6892070B88D00" style="OLC">
<subparagraph id="H7D13E1F6E450420596D4C9F982BDC3B5"><enum>(A)</enum><text>an electric heat
pump which achieves the highest efficiency tier established by the Consortium
for Energy Efficiency, as in effect on January 1,
2008.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H06C0412305EE48D7ADE09518FEE233FC"><enum>(B)</enum><header>Central air
conditioners</header><text>Section 25C(d)(3)(D) is amended by striking
<quote>2006</quote> and inserting <quote>2008</quote>.</text>
</subparagraph><subparagraph id="HE38ECC04BF4846639E70662566D544AC"><enum>(C)</enum><header>Water
Heaters</header><text>Subparagraph (E) of section 25C(d) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HCC3A17F0F4194F1DB7DE4F8C163D367F" style="OLC">
<subparagraph id="H1E701715BCC84CBCA8D688786F91E69B"><enum>(E)</enum><text>a natural gas,
propane, or oil water heater which has either an energy factor of at least 0.80
or a thermal efficiency of at least 90
percent.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H204FE3E03C2A438D95AEEA286E50B5CC"><enum>(D)</enum><header>Oil furnaces and
hot water boilers</header><text>Paragraph (4) of section 25C(d) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H1BE5E4ACE2DE43F395F1CED4F45110DB" style="OLC">
<paragraph id="H81138D5CEB3A4120BD00B2DDC8D5F31"><enum>(4)</enum><header>Qualified natural
gas, propane, and oil furnaces and hot water boilers</header>
<subparagraph id="HCAB5B03222BB48FB98A7D615F1AAFEEE"><enum>(A)</enum><header>Qualified
natural gas furnace</header><text>The term <term>qualified natural gas
furnace</term> means any natural gas furnace which achieves an annual fuel
utilization efficiency rate of not less than 95.</text>
</subparagraph><subparagraph id="HA9920317989D4B75A1FB8374176377AD"><enum>(B)</enum><header>Qualified
natural gas hot water boiler</header><text>The term <term>qualified natural gas
hot water boiler</term> means any natural gas hot water boiler which achieves
an annual fuel utilization efficiency rate of not less than 90.</text>
</subparagraph><subparagraph id="H559B3CCB24AE47DEBAD2D105BFD44DF6"><enum>(C)</enum><header>Qualified
propane furnace</header><text>The term <term>qualified propane furnace</term>
means any propane furnace which achieves an annual fuel utilization efficiency
rate of not less than 95.</text>
</subparagraph><subparagraph id="HE1400302756945529BAD464BB37633"><enum>(D)</enum><header>Qualified propane
hot water boiler</header><text>The term <term>qualified propane hot water
boiler</term> means any propane hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than 90.</text>
</subparagraph><subparagraph id="HFD726F1E690646129576904533B664E2"><enum>(E)</enum><header>Qualified oil
furnaces</header><text>The term <term>qualified oil furnace</term> means any
oil furnace which achieves an annual fuel utilization efficiency rate of not
less than 90.</text>
</subparagraph><subparagraph id="H713CAC26066C44B29693776458ACB1D7"><enum>(F)</enum><header>Qualified oil
hot water boiler</header><text>The term <term>qualified oil hot water
boiler</term> means any oil hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than
90.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HFCE23A07E86D4F2085E9BF7E00A8D9EB"><enum>(3)</enum><header>Elimination of
lifetime limitation</header><text>Paragraph (1) of section 25C(b) is amended by
inserting <quote>by reason of subsection (a)(1)</quote> after <quote>under this
section</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF6B4B298AA4841FEAAC477D989F9CDB6"><enum>(d)</enum><header>Modification of
qualified energy efficiency improvements</header>
<paragraph commented="no" display-inline="no-display-inline" id="H91CBD8925D6F442C99401860422D7C13"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 25C(c) is amended by inserting
<quote>, or an asphalt roof with appropriate cooling granules,</quote> before
<quote>which meet the Energy Star program requirements</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1EB9CB2EAF094C9C0063B5DB18F3AC8C"><enum>(2)</enum><header>Building
envelope component</header><text>Subparagraph (D) of section 25C(c)(2) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4814363EF588484297647DE92639A890"><enum>(A)</enum><text>by inserting
<quote>or asphalt roof</quote> after <quote>metal roof</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB218C14C8DC6460BB281EDEEF3BB7426"><enum>(B)</enum><text>by inserting
<quote>or cooling granules</quote> after <quote>pigmented
coatings</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA8956CB7CE504BA4B4CC978BD4002609"><enum>(e)</enum><header>Natural gas
fired heat pumps</header><text>Section 25C(d)(3), as amended by this section,
is amended by striking <quote>and</quote> at the end of subparagraph (D), by
striking the period at the end of subparagraph (E) and inserting <quote>,
and</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HD7E3B2167BE24C20AD3F7E3793D22FF6" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H77EC04BEA72C4B5F92266688D7F11AD"><enum>(F)</enum><text>a natural gas fired
heat pump with a heating coefficient of performance (COP) of at least
1.1.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H012AF9959F6C41A282B13582048EA2A3"><enum>(f)</enum><header>Elimination of
credit for qualified energy efficiency improvements in 2010</header>
<paragraph id="H6C01B96FD2F148B8BEB7ED3E9E7E18C"><enum>(1)</enum><header>In
general</header><text>Subsection (a) of section 25C is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H6C2A645BD86D4F7A91B746654FF5229C" style="OLC">
<subsection id="H29423B21161B4482996E00BC903C4198"><enum>(a)</enum><header>Allowance of
credit</header><text>In the case of an individual, there shall be allowed as a
credit against the tax imposed by this chapter for the taxable year an amount
equal to the amount of residential energy property expenditures paid or
incurred by the taxpayer during the taxable
year.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H7FFACF64CD964149BF25D0E8AD3F79A5"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H92980C5B6CB44E8CB19FFC2F184BA400"><enum>(A)</enum><text>Section 25C(b), as
amended by subsection (b), is amended by striking paragraphs (1) and (2) and by
redesignating paragraph (3) as paragraph (1).</text>
</subparagraph><subparagraph id="HD18F2F6865564CEEAED4BD759ECC232"><enum>(B)</enum><text>Section 25C(b)(1),
as redesignated by subparagraph (A), is amended by striking <quote>by reason of
subsection (a)(2)</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7975E64BC85D4DFABB4F8BEAF2A0C200"><enum>(C)</enum><text>Section 25C is
amended by striking subsection (c).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0F7C634623864AD4BB4E56134497C773"><enum>(g)</enum><header>Clarification of
eligibility of standards for qualified energy property</header><text>Section
25C(d)(2)(C) is amended by striking <quote>and</quote> at the end of clause
(i), by striking the period at the end of clause (ii) and inserting <quote>,
and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HBB6DE2434F03456594769B5636751D40" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H3C9F04C53D3D47450055E11879263723"><enum>(iii)</enum><text>shall allow for
the testing of products regardless of the size or capacity of the
product.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD2042E9E6D444364935FAD9F5C49F3A9"><enum>(h)</enum><header>Effective
dates</header>
<paragraph id="HD8A6CE8A86D64F4398B632FFF9BA9260"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraphs (2) and (3), the
amendments made by this section shall apply to property placed in service after
the date of the enactment of this Act.</text>
</paragraph><paragraph id="HF39B8B47A8A546F0B5480078BFEDF202"><enum>(2)</enum><header>Standards for
electric heat pumps and central air conditioners</header><text>The amendments
made by subparagraphs (A) and (B) subsection (c)(2) shall apply to property
placed in service after December 31, 2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9E6F7F632DD84FC59588D2F604521C4D"><enum>(3)</enum><header>Elimination of
credit for qualified energy efficiency improvements</header><text>The
amendments made by subsection (f) shall apply to property placed in service
after December 31, 2009.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H7B88BE46EB5944EBB7BDFF59A6191B" section-type="subsequent-section"><enum>213.</enum><header>Extension and
clarification of new energy efficient home credit</header>
<subsection id="H647070CE58104197877DF3E20884CAE"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Subsection (g) of section 45L (relating to
termination), as amended by section 205 of division A of the Tax Relief and
Health Care Act of 2006, is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2011</quote>.</text>
</subsection><subsection id="H6E6799237CD0474D80848C81F4F70084"><enum>(b)</enum><header>Clarification</header>
<paragraph id="HED0040E5577440348D18DA00001DC899"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 45L(a) is amended by striking
<quote>and</quote> at the end of subparagraph (A) and by striking subparagraph
(B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H74F69D6EBD6848E498186DB6FE20EC31" style="OLC">
<subparagraph id="H256F1D9EC3CE4299B12FAF0902E34766"><enum>(B)</enum><text>acquired by a
person from such eligible contractor, and</text>
</subparagraph><subparagraph id="H95D2AADB05B44949889FB554E78B1F3D"><enum>(C)</enum><text>used by any person
as a residence during the taxable
year.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD235CC115AE3410ABC1F9BE18BEB7019"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall take effect as
if included in section 1332 of the Energy Policy Act of 2005.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H92318078A67842B1890461D0D421252D" section-type="subsequent-section"><enum>214.</enum><header>Extension and
modification of deduction for energy efficient commercial buildings</header>
<subsection id="H27271394203549EABC443F63CC1FE865"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Subsection (h) of section 179D (relating to
termination) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H46A2744DB16648438F69A35F7F1347EE" style="OLC">
<subsection id="H1A45FC62384445F0821C1CF58C4017E4"><enum>(h)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply with respect
to property—</text>
<paragraph id="H776ED9156DA2425187CEC5D3E1F5257B"><enum>(1)</enum><text>which is certified
under subsection (d)(6) after December 31, 2012, or</text>
</paragraph><paragraph id="H0CF920F89EE142A9886EE700FD41643E"><enum>(2)</enum><text>which is placed in
service after December 31, 2014.</text>
</paragraph><continuation-text continuation-text-level="subsection">A
provisional certification shall be treated as meeting the requirements of
paragraph (1) if it is based on the building plans, subject to inspection and
testing after
installation.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H448FDE38086547099929430064D07F58"><enum>(b)</enum><header>Increase in
maximum amount of deduction</header>
<paragraph id="H14420AC319D64CE393AD2FCE00EE9B43"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 179D(b)(1) is amended by
striking <quote>$1.80</quote> and inserting <quote>$2.25</quote>.</text>
</paragraph><paragraph id="HB7D6D143752E44EA8FE073251FB8EEFE"><enum>(2)</enum><header>Partial
allowance</header><text>Paragraph (1) of section 179D(d) is amended—</text>
<subparagraph id="HB790609FA7E94A428CFE3F20F4B7D8A4"><enum>(A)</enum><text>by striking
<quote>$.60</quote> and inserting <quote>$0.75</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H717053AD6D374B0EB1B49619ADDB765C"><enum>(B)</enum><text>by striking
<quote>$1.80</quote> and inserting <quote>$2.25</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB70A8B666EEB482D98CBAA80CD2B1270"><enum>(c)</enum><header>Modifications to
certain special rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="H123DCCDF02AA46A582547C6133702838"><enum>(1)</enum><header>Methods of
calculating energy savings</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H26D94605CEE6465CAC6E7336004998E6"><enum>(A)</enum><header>In
general</header><text>Paragraph (2) of section 179D(d) is amended—</text>
<clause commented="no" display-inline="no-display-inline" id="HEC1D06705CB444A1AE9DE49904ED25A8"><enum>(i)</enum><text>by inserting
<quote>in detail</quote> after <quote>based</quote>,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1F2C862C1A784439BDFA5C08FB8D675"><enum>(ii)</enum><text>by inserting
<quote>, except that the Secretary shall use Standard 90.1–2001 in lieu of the
California title 24 energy standards and the tables contained therein and the
Secretary may add requirements from Standard 90.1–2001 (or any successor
standard)</quote> before the period at the end, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC1B34A755FBA4BD49FAF009CC0A57CF7"><enum>(iii)</enum><text>by adding at the
end the following new sentence: <quote>The calculation methods contained in
such regulations shall also provide for the calculation of appropriate energy
savings for design methods and technologies not otherwise credited in such
manual or standard, including energy savings associated with natural
ventilation, evaporative cooling, automatic lighting controls (such as
occupancy sensors, photocells, and time clocks), day lighting, designs
utilizing semi-conditioned spaces which maintain adequate comfort conditions
without air conditioning or without heating, improved fan system efficiency
(including reductions in static pressure), advanced unloading mechanisms for
mechanical cooling (such as multiple or variable speed compressors), on-site
generation of electricity (including combined heat and power systems, fuel
cells, and renewable energy generation such as solar energy), and wiring with
lower energy losses than wiring satisfying Standard 90.1–2001 requirements for
building power distribution systems.</quote>.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA244F3A0C526413D88CEC0F8DD826167"><enum>(B)</enum><header>Requirements for
computer software used in calculating energy and power consumption
costs</header><text>Paragraph (3)(B) of section 179D(d) is amended by striking
<quote>and</quote> at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting <quote>, and</quote>, and by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="HF522ADC182254E84B923704FFA91DA85" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H688C26177FC2448A9D8CAFB539CF2CF7"><enum>(iv)</enum><text>which
automatically—</text>
<subclause commented="no" display-inline="no-display-inline" id="H1E5064188032433C9682004BE545ADA3"><enum>(I)</enum><text>generates the
features, energy use, and energy and power consumption costs of a reference
building which meets Standard 90.1–2001,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB905D3AA89C249169756F9E409BDE5C1"><enum>(II)</enum><text>generates the
features, energy use, and energy and power consumption costs of a compliant
building or system which reduces the annual energy and power costs by 50
percent compared to Standard 90.1–2001, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H584816E655034CAFBC5B241E372D0060"><enum>(III)</enum><text>compares such
features, energy use, and consumption costs to the features, energy use, and
consumption costs of the building or system with respect to which the
calculation is being
made.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H201A02F564374505BF2378B4B197EDE8"><enum>(2)</enum><header>Targets for
partial allowance of credit</header><text>Paragraph (1)(B) of section 179D(d)
is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBC90EA91F9CE4F8A863238656424E8FC"><enum>(A)</enum><text>by striking
<quote>The Secretary</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC410CC2D88594691AA193F1219FBC975" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H855FB81FDFED40DC9E4D9B33B3222EB9"><enum>(i)</enum><header>In
general</header><text>The Secretary</text>
</clause><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H17C631E5A2B247A29B878D65F08DF952"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HAB24603F2A594F54831BE5428EE3AB00" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H064F94F0EC8541DDA5F3BCB7E7CDA31D"><enum>(ii)</enum><header>Additional
requirements</header><text>For purposes of clause (i)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H310097490E1D44659200FF6900695EE5"><enum>(I)</enum><text>the Secretary
shall determine prescriptive criteria that can be modeled explicitly for
reference buildings which meet the requirements of subsection (c)(1)(D) for
different building types and regions,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HA3434745FC024D48B4AEA2E393DADB9D"><enum>(II)</enum><text>a system may be
certified as meeting the target under subparagraph (A)(ii) if the appropriate
reference building either meets the requirements of subsection (c)(1)(D) with
such system rather than the comparable reference system (using the calculation
under paragraph (2)) or meets the relevant prescriptive criteria under
subclause (I), and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H1AE0E26FF33A4AB0A336C0EE8DD30700"><enum>(III)</enum><text>the lighting
system target shall be based on lighting power density, except that it shall
allow lighting controls credits that trade off for lighting power density
savings based on Section 3.2.2 of the 2005 California Nonresidential
Alternative Calculation Method Approval Manual.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H18CA814F33AF4D83B18CF98757D44489"><enum>(iii)</enum><header>Publication</header><text>The
Secretary shall publish in the Federal Register the bases for the target levels
established in the regulations under clause
(i).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD16C59A59EE04C519619A7FAAEA4813"><enum>(d)</enum><header>Alternative
standards</header><text>Section 179D(d) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4B558ADFCA4D485D9F1DC2DC3414A26D" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H16D0AD76D8C24EB89115943D00EBEB6E"><enum>(7)</enum><header>Alternative
standards pending final regulations</header><text>Until such time as the
Secretary issues final regulations under paragraph (1)(B)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4B5C5D73BB3A4E5FAAE4635EE9A3422"><enum>(A)</enum><text>in the case of
property which is part of a building envelope, the building envelope system
target under paragraph (1)(A)(ii) shall be a 7 percent reduction in total
annual energy and power costs (determined in the same manner as under
subsection (c)(1)(D)), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5BCEBC5F562241C28C3E1DAC2C2F48EE"><enum>(B)</enum><text>in the case of
property which is part of the heating, cooling, ventilation, and hot water
systems, the heating, cooling, ventilation, and hot water system shall be
treated as meeting the target under paragraph (1)(A)(ii) if it would meet the
requirement in subsection (c)(1)(D) if combined with a building envelope system
and lighting system which met their respective targets under
paragraph(1)(A)(ii) (including interim targets in effect under subsections (f)
and subparagraph
(A)).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H148C56AF20514E78A1EEF1D27E1E8D6E"><enum>(e)</enum><header>Modifications to
lighting standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="H528BCEE483134C1AAC975E006F9F18D6"><enum>(1)</enum><header>Standards to be
alternate standards</header><text>Subsection (f) of section 179D is amended
by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8CA663AB3806409AB9BFC58D00A698D6"><enum>(A)</enum><text>striking
<quote><header-in-text level="subsection" style="OLC">Interim</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subsection" style="OLC">Alternative</header-in-text></quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFEF10539674C4433A0CA5C65B5C194F"><enum>(B)</enum><text>inserting <quote>,
or, if the taxpayer elects, in lieu of the target set forth in such final
regulations </quote> after <quote>lighting system</quote> at the end of the
matter preceding paragraph (1).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBE2DC75295714E13B0A853F4C7FD7C56"><enum>(2)</enum><header>Qualified
individuals</header><text>Section 179D(d)(6)(C) is amended by adding at the end
the following: <quote>For purposes of certification of whether the alternative
target for lighting systems under subsection (f) is met, individuals qualified
to determine compliance shall include individuals who are certified as Lighting
Certified (LC) by the National Council on Qualifications for the Lighting
Professions, Certified Energy Managers (CEM) by the Association of Energy
Engineers, and LEED Accredited Professionals (AP) by the U.S. Green Buildings
Council.</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF859F5F2DC054C938BB6ECF0F4F8E25D"><enum>(3)</enum><header>Requirement for
bilevel switching</header><text>Section 179D(f)(2) is amended by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HDD6C3A46B8D9487D8859A9E19E07AF44" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H9835963D2AD446D3B84D08CC8D01CEF1"><enum>(3)</enum><header display-inline="yes-display-inline">Application of subsection to bilevel
switching</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE53C73518CFA4852B4871292D9F4084"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding
paragraph (2)(C)(i), this subsection shall apply to a system which does not
include provisions for bilevel switching if the reduction in lighting power
density is at least 37.5 percent of the minimum requirements in Table 9.3.1.1
or Table 9.3.1.2 (not including additional interior lighting allowances) of
Standard 90.1–2001.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC4511C4AAE1045FDA3F795A31AD1966"><enum>(B)</enum><header>Reduction in
deduction</header><text display-inline="yes-display-inline">In the case of a
system to which this subsection applies by reason of subparagraph (A),
paragraph (2) shall be applied—</text>
<clause commented="no" display-inline="no-display-inline" id="H84E2927344E04EDFBF62D1CCD48C4144"><enum>(i)</enum><text display-inline="yes-display-inline">by substituting <quote>50 percent</quote>
for <quote>40 percent</quote> in subparagraph (A) thereof, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H315F2D45A12A4D718D7DE4E8A8C350B9"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B)(ii) thereof—</text>
<subclause commented="no" display-inline="no-display-inline" id="H908F585B42A946BD942FC33E52F52D8E"><enum>(I)</enum><text display-inline="yes-display-inline">by substituting <quote>37.5 percentage
points</quote> for <quote>25 percentage points</quote>, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HAB97C2B19319412296689CC5E100E3EA"><enum>(II)</enum><text display-inline="yes-display-inline">by substituting <quote>12.5</quote> for
<quote>15</quote>.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA0684564BBF042E8B6FA9EC07390D0AC"><enum>(f)</enum><header>Public
property</header><text>Paragraph (4) of section 179(d) is amended by striking
<quote>the Secretary shall promulgate a regulation to allow the allocation of
the deduction</quote> and inserting <quote>the deduction under this section
shall be allowed</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE23FC8CDEBC541D9BC1DF010D99BDFC"><enum>(g)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service in taxable years beginning after the date of the enactment of
this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H2515676588A2424A93BF37754328CAD" section-type="subsequent-section"><enum>215.</enum><header>Deduction for energy
efficient low-rise buildings</header>
<subsection commented="no" display-inline="no-display-inline" id="H76A272228C3B48259800144151CFE702"><enum>(a)</enum><header>In
general</header><text>Part VI of subchapter B of chapter 1, as amended by
section 404 of division A of the Tax Relief and Health Care Act of 2006, is
amended by inserting after section 179E the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HE07E2EC71F244A50A6708C93F077BFF3" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H8C1DD3C9F5014FE990DAB31067C3BCAD"><enum>179F.</enum><header>Energy
efficient low-rise buildings deduction</header>
<subsection commented="no" display-inline="no-display-inline" id="H5C96B53F8C734608B8BEDFC6C551C3B"><enum>(a)</enum><header>In
general</header><text>There shall be allowed as a deduction an amount equal to
the amount of qualified energy efficiency expenditures paid or incurred by the
taxpayer during the taxable year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1E930193BD7B464088D82E7BF45F5500"><enum>(b)</enum><header>Limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6E17AC53C0AF4C12BF12F6DA6400DBBD"><enum>(1)</enum><header>In
general</header><text>The amount allowed as a credit under subsection (a) with
respect to any dwelling unit shall not exceed the product of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB4D50684B2864255BF9718BC995DC2C1"><enum>(A)</enum><text>the qualified
energy savings achieved, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H652D322F078C47E2970028007B206169"><enum>(B)</enum><text>$12,000.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H73CA63B3664242A59C2C81B8FE6D542"><enum>(2)</enum><header>Minimum amount of
qualified energy savings</header><text>No credit shall be allowed under
subsection (a) with respect to any dwelling unit in a qualified low-rise
building which achieves a qualified energy savings of less than 20
percent.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF4CF65026A174772BFDB8892F9728308"><enum>(c)</enum><header>Qualified energy
efficiency expenditures</header><text>For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF184D1316A2943BFA65D9E0056EC85C3"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified energy efficiency
expenditures</term> means any amount paid or incurred which is related to
producing qualified energy savings in any dwelling unit located in a qualified
low-rise building of the taxpayer which is located in the United States.</text>
</paragraph><paragraph commented="no" id="HB4E176C330EB448F818E0081001C5315"><enum>(2)</enum><header>No double
benefit for certain expenditures</header><text>The term <term>qualified energy
efficiency expenditures</term> shall not include any expenditure for any
property for which a deduction has been allowed to the taxpayer under section
179G.</text>
</paragraph><paragraph id="H4CA4B99A76914C9C992541222F59B224"><enum>(3)</enum><header>Qualified
low-rise building</header><text>The term <term>qualified low-rise
building</term> means a building—</text>
<subparagraph id="H7CE591F2C9C342BB912BEAFF70E29342"><enum>(A)</enum><text>with respect to
which depreciation is allowable under section 167,</text>
</subparagraph><subparagraph id="H5550674553C44EB9B409ED8681ADEEF3"><enum>(B)</enum><text>which is used for
multifamily housing, and</text>
</subparagraph><subparagraph id="H7E63F93D652942408700D760A436FEC2"><enum>(C)</enum><text>which is not
within the scope of Standard 90.1–2001 (as defined under section
179D(c)(2)).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB7FF9BB12A944BA1A49F164D24C3CA09"><enum>(d)</enum><header>Qualified energy
savings</header><text>For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H589B4E4DF09F48BFB373C6B12900C1D0"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified energy savings</term> means,
with respect to any dwelling unit in a qualified low-rise building, the amount
(measured as a percentage) by which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7FF9E92E43A04B14B9687425469CE424"><enum>(A)</enum><text>the annual energy
use with respect to such dwelling unit after qualified energy efficiency
expenditures are made, as certified under paragraph (2), is less than</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H52B036AF95A741EDB0B8AA7987AEF573"><enum>(B)</enum><text>the annual energy
use with respect to such dwelling unit before the qualified energy efficiency
expenditures were made, as certified under paragraph (2).</text>
</subparagraph><continuation-text continuation-text-level="paragraph">In
determining annual energy use under subparagraph (B), any energy efficiency
improvements which are not attributable to qualified energy efficiency
expenditures shall be disregarded.</continuation-text></paragraph><paragraph id="HC1D2F592A2904858A41F5F4F3F8B89F6"><enum>(2)</enum><header>Certification</header>
<subparagraph id="HCAD72DEC7A184E188DCD659728E5FDF8"><enum>(A)</enum><header>In
general</header><text>The Secretary, in consultation with the Secretary of
Energy, shall prescribe the procedures and method for the making of
certifications under this paragraph based on the Residential Energy Services
Network (RESNET) Technical Guidelines in effect on the date of the enactment of
this Act.</text>
</subparagraph><subparagraph id="HD6A6ED323E084DE795A9C41BE89ABAD"><enum>(B)</enum><header>Qualified
individuals</header><text>Any certification made under this paragraph may only
be made by an individual who is recognized by an organization certified by the
Secretary for such purposes.</text>
</subparagraph></paragraph></subsection><subsection id="H36DC971C303145EAA600CB445B7C9AD"><enum>(e)</enum><header>Special
rules</header><text>For purposes of this section, rules similar to the rules
under paragraphs (8) and (9) of section 25D(e) shall apply.</text>
</subsection><subsection id="H498DB364594740A090D96EAA2B558CEA"><enum>(f)</enum><header>Basis
adjustments</header><text>For purposes of this subtitle, if a credit is allowed
under this section with respect to any expenditure with respect to any
property, the increase in the basis of such property which would (but for this
subsection) result from such expenditure shall be reduced by the amount of the
credit so allowed.</text>
</subsection><subsection id="H891474C32F70449E8FA83D80007E7F8E"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply with respect to any property placed in service after
December 31,
2011.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF7FCA87197334F1094B5A48F7D742E36"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H398F385DB4D044F3BFAEAE000027BB03"><enum>(1)</enum><text>Section 263(a)(1),
as amended by section 404 of division A of the Tax Relief and Health Care Act
of 2006, the is amended by striking <quote>or</quote> at the end of
subparagraph (K), by striking the period at the end of subparagraph (L) and
inserting <quote>, or</quote>, and by inserting after subparagraph (L) the
following new subparagraph:</text>
<quoted-block id="H65424EE8A10A48B4B8EFA18E9657EA6B">
<subparagraph id="H4CD0FB73FC4F4C5981C074E2DB008578"><enum>(M)</enum><text>expenditures for
which a deduction is allowed under section
179F.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H91A64241A621445695B73CCD4E8E7F4"><enum>(2)</enum><text>Section
312(k)(3)(B) is amended by striking <quote>179, 179A, 179B, 179C, 179D, or
179E</quote> each place it appears in the heading and text and inserting
<quote>179, 179A, 179B, 179C, 179D, 179E, or 179F</quote>.</text>
</paragraph><paragraph commented="no" id="HD909C79860174D5B9420596CCC8E8526"><enum>(3)</enum><text>Section 1016(a),
as amended by section 101, is amended by striking <quote>and</quote> at the end
of paragraph (37), by striking the period at the end of paragraph (38) and
inserting <quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H620F1455B6E34715A47C9FDA58D93927" style="OLC">
<paragraph commented="no" id="HFE3FA4872A7A4880A8FF5DC6E0A302B3"><enum>(39)</enum><text>to the extent
provided in section
179F(f).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0858DD89E08B4C4BA988D8A6F0294544"><enum>(4)</enum><text>Section 1245(a) is
amended by inserting <quote>179F,</quote> after <quote>179E,</quote> both
places it appears in paragraphs (2)(C) and (3)(C).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5EE500CA15BB4703ACBB66E2127C9295"><enum>(5)</enum><text>The table of
sections for part VI of subchapter B is amended by inserting after the item
relating to section 179E the following new item:</text>
<quoted-block id="H7BB20609575749F2AD9CF6A9F5C2EE64" style="OLC">
<toc>
<toc-entry idref="H8C1DD3C9F5014FE990DAB31067C3BCAD" level="section">Sec. 179F. Energy efficient low-rise buildings
deduction.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H50CD5983B5A44B52B94CFF04F6BE26DC"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred in taxable years beginning after the date of the enactment of
this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H44C38040C23E48F0A4812E412FA7B3AA" section-type="subsequent-section"><enum>216.</enum><header>Energy efficient
property deduction</header>
<subsection commented="no" display-inline="no-display-inline" id="H783A9BD3BED9456E8564F001DEEB4611"><enum>(a)</enum><header>In
general</header><text>Part VI of subchapter B of chapter 1, as amended by
section 203, is amended by inserting after section 179F the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H0378841B32604B3B99F203F8003D8D02" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H1B1216AB25A24E92BAB4F9D9FA75AF59"><enum>179G.</enum><header>Energy
efficient property</header>
<subsection commented="no" display-inline="no-display-inline" id="H6723549E4E854AC097C050E2F897D72"><enum>(a)</enum><header>In
general</header><text>There shall be allowed as a deduction an amount equal to
the energy efficient property expenditures paid or incurred by the taxpayer
during the taxable year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB807D5334DD446FE8F5240347131C600"><enum>(b)</enum><header>Limitation</header><text>The
amount of the deduction allowed under subsection (a) for any taxable years
shall not exceed—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1A81BAACC6494194ACAE48D57505FEE2"><enum>(1)</enum><text>$150 for any
advanced main air circulating fan,</text>
</paragraph><paragraph id="HB41F985A6B5348488BE5AFBBCC455F57"><enum>(2)</enum><text>$450 for any
qualified natural gas furnace or qualified propane furnace, and</text>
</paragraph><paragraph id="HFB158EF246AC475296E21DEF70F94585"><enum>(3)</enum><text>$900 for—</text>
<subparagraph id="H9C88021F15DB483C988E15126EA2D192"><enum>(A)</enum><text>any item of
energy-efficient building property, and</text>
</subparagraph><subparagraph id="HEB6B8718C95E45EAB839AD1EA515468B"><enum>(B)</enum><text>any qualified oil
furnace, qualified natural gas hot water boiler, qualified propane hot water
boiler, or qualified oil hot water boiler.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HAFFD485088BA470DBCE0C979060A500"><enum>(c)</enum><header>Energy efficient
property expenditures</header><text>For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD3D466FA535E4A32BF65EC2407734F48"><enum>(1)</enum><header>In
general</header><text>The term <term>energy efficient property
expenditures</term> means expenditures paid by the taxpayer for qualified
energy property which is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1D55D926B88A4938ABECB5B1B7588DD"><enum>(A)</enum><text>of a character
subject to the allowance for depreciation, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H503C50309A8B49FFADF4B0518EDFA779"><enum>(B)</enum><text>originally placed
in service by the taxpayer.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDEF3EE250E1941FEA958827587EE2742"><enum>(2)</enum><header>Qualified energy
property</header><text>The term <term>qualified energy property</term> has the
meaning given such term by section 25C(d)(2).</text>
</paragraph></subsection><subsection id="H61503A79F63448FBB8869849D8C39F2E"><enum>(d)</enum><header>Basis
adjustments</header><text>For purposes of this subtitle, if a deduction is
allowed under this section with respect to any expenditure with respect to any
property, the increase in the basis of such property which would (but for this
subsection) result from such expenditure shall be reduced by the amount of the
deduction so allowed.</text>
</subsection><subsection id="HA0CFE05805824D79BA5B9773F4F103F"><enum>(e)</enum><header>Termination</header><text>This
section shall not apply with respect to any property placed in service after
December 31,
2011.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3389E4A917DC4F528F004FE3B587EBB3"><enum>(b)</enum><header>No double
benefit</header><text>Section 179D(c) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC34222E1F18F460CA0293D4DD32DB732" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H43F89310E06142B982FE037FCD65A3A1"><enum>(3)</enum><header>Certain property
excluded</header><text>The term <term>energy efficient commercial building
property</term> does not include any property with respect to which a credit
has been allowed to the taxpayer under section
179G.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE87E42DEF24042D18141DC9203F14B51"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="H4C0C3478E25049C7AE57D70829901401"><enum>(1)</enum><text>Section 263(a)(1),
as amended by section 203, is amended by striking <quote>or</quote> at the end
of subparagraph (K), by striking the period at the end of subparagraph (L) and
inserting <quote>, or</quote>, and by inserting after subparagraph (L) the
following new subparagraph:</text>
<quoted-block id="H60578734E4BB401D88D5E186D2D1C037">
<subparagraph id="H82246A7F7F3F41F6ADBFFE9E4600BDCF"><enum>(M)</enum><text>expenditures for
which a deduction is allowed under section
179G.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4BDDC6D1529A4D139EF250A2BC3F1277"><enum>(2)</enum><text>Section
312(k)(3)(B), as amended by section 203, is amended by striking <quote>179,
179A, 179B, 179C, 179D, 179E, or 179F</quote> each place it appears in the
heading and text and inserting <quote>179, 179A, 179B, 179C, 179D, 179E, 179F,
or 179G</quote>.</text>
</paragraph><paragraph commented="no" id="H840AD07588FC416E9C412287C8AF9B20"><enum>(3)</enum><text>Section 1016(a),
as amended by section 203, is amended by striking <quote>and</quote> at the end
of paragraph (38), by striking the period at the end of paragraph (39) and
inserting <quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HCE4657E376D949B085BAC29F92E10031" style="OLC">
<paragraph commented="no" id="HA9A8ADA76D2245D69793F417ECEEDB22"><enum>(40)</enum><text>to the extent
provided in section
179G(e).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9038F1063C8E4E57BC4965A548C63EC7"><enum>(4)</enum><text>Section 1245(a),
as amended by section 203 is amended by inserting <quote>179G,</quote> after
<quote>179F,</quote> both places it appears in paragraphs (2)(C) and
(3)(C).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H02E834B969004C2783C3A280EB02C060"><enum>(5)</enum><text>The table of
sections for part VI of subchapter B is amended by inserting after the item
relating to section 179F the following new item:</text>
<quoted-block id="H080EC7C287A24EADAFAC02494E028617" style="OLC">
<toc>
<toc-entry idref="H70D3194A4C2F425789A1A6C4D67F0083" level="section">Sec. 179G. Energy efficient
property.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0EDB88C7EAA140638729EA3FCE2E70D1"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service in taxable years beginning after the date of the enactment of
this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H996714AF226A4CBEACEB3779DA57973B" section-type="subsequent-section"><enum>217.</enum><header>Credit for energy
savings certifications</header>
<subsection id="H7DB4410733C44C63B6059639B5ADA12E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart D of part IV
of subchapter A of chapter 1 is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H4DCC52B304A442DDB9C7DF0894F87EB" style="OLC">
<section id="H89A12F9CE60A4ED79147D2C72C73EFE"><enum>45O.</enum><header>Energy savings
certification credit</header>
<subsection id="HE3DAC6B781F04DEA96AE762F157C6200"><enum>(a)</enum><header> In
general</header><text>For purposes of section 38, the energy savings
certification credit determined under this section for any taxable year is an
amount equal to the sum of—</text>
<paragraph id="H199C4562D0D2468B9F4B6C91D8865B99"><enum>(1)</enum><text>the qualified
training and certification costs paid or incurred by the taxpayer which may be
taken into account for such taxable year, plus</text>
</paragraph><paragraph id="HE57802163BAE4E5EBCBAB44141FDB3F1"><enum>(2)</enum><text>the qualified
certification equipment expenditures paid or incurred by the taxpayer which may
be taken into account for such taxable year.</text>
</paragraph></subsection><subsection id="H60BB19D65DD84A869103D7A568945C23"><enum>(b)</enum><header>Qualified
training and certification costs</header>
<paragraph id="H6CF2312FEFA8413FA2021220C0613100"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified training and certification
costs</term> means costs paid or incurred for training which is required for
the taxpayer or employees of the taxpayer to be certified by the Secretary
under section 25D(d)(2)(B) or 179F(d)(2)(B) for the purpose of certifying
energy savings.</text>
</paragraph><paragraph id="H9AF0325C60DA4A04979BA9F54C0B6B1"><enum>(2)</enum><header>Limitation</header><text>The
qualified training and certification costs taken into account under subsection
(a)(1) for the taxable year with respect to any individual shall not exceed
$500 reduced by the amount of the credit allowed under subsection (a)(1) to the
taxpayer (or any predecessor) with respect to such individual for all prior
taxable years.</text>
</paragraph><paragraph id="HEACB5B4EABD344DE95E7E6E52C510102"><enum>(3)</enum><header>Year costs taken
into account</header><text>Qualified training and certifications costs with
respect to any individual shall not be taken into account under subsection
(a)(1) before the taxable year in which the individual with respect to whom
such costs are paid or incurred has performed 25 certifications under sections
25E(d)(2)(A) and 179F(d)(2)(A).</text>
</paragraph></subsection><subsection id="H7EDEA886F37840798371B02D4368E10"><enum>(c)</enum><header>Qualified
certification equipment expenditures</header>
<paragraph id="H5D6F069ECD024C268151819254AB1E22"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified training equipment
expenditures</term> means costs paid or incurred for—</text>
<subparagraph id="H138C04CC1BF341C49D001E95573FCAFB"><enum>(A)</enum><text>blower
doors,</text>
</subparagraph><subparagraph id="H44E31EDBFD6340EDB600FF1B61909C79"><enum>(B)</enum><text>duct leakage
testing equipment,</text>
</subparagraph><subparagraph id="H72EAA340BADB46CBA64D35334042BDB"><enum>(C)</enum><text>flue gas combustion
equipment, and</text>
</subparagraph><subparagraph id="H40CEDE29C655443DA2A227F8DE07313D"><enum>(D)</enum><text>digital
manometers.</text>
</subparagraph></paragraph><paragraph id="H9F66E1772CE7423CAECB796775B94463"><enum>(2)</enum><header>Limitation</header>
<subparagraph id="H45EBE188BC3548D0BC946DE61C424DB4"><enum>(A)</enum><header>In
general</header><text>The qualified certification equipment expenditures taken
into account under subsection (a)(2) with respect to any taxpayer for any
taxable year shall not exceed $1,000.</text>
</subparagraph><subparagraph id="HAE59ED372D4C41E5ABB25B004F209CD4"><enum>(B)</enum><header>Limitation on
individual items</header><text>The qualified certification equipment
expenditures taken into account under subsection (a)(2) shall not
exceed—</text>
<clause id="HA9077F1A5A1F4679A693B47CB04544AB"><enum>(i)</enum><text>$500 with respect
to any blower door or duct leakage testing equipment, and</text>
</clause><clause id="H4CE294A7845548DB8D586C3053DE02B3"><enum>(ii)</enum><text>$100 with respect
to any flue gas combustion equipment or digital manometer.</text>
</clause></subparagraph></paragraph><paragraph id="H4814339E8E1C460A9C05788CA4D7213C"><enum>(3)</enum><header>Year
expenditures taken into account</header><text>The qualified certification
equipment expenditures of any taxpayer shall not be taken into account under
subsection (a)(2) before the taxable year in which the taxpayer has performed
25 certifications under sections 25E(d)(2)(A) and 179F(d)(2)(A).</text>
</paragraph></subsection><subsection id="HB1013D401A4345478166FD00A98CB29B"><enum>(d)</enum><header>Special
rules</header>
<paragraph id="H779D4ADA6E4B45DAA907CF6315A997DF"><enum>(1)</enum><header>Aggregation
rules</header><text>For purposes of this section, all persons treated as a
single employer under subsections (a) and (b) of section 52 shall be treated as
1 person.</text>
</paragraph><paragraph id="H33E4358AE158423283257402470407B3"><enum>(2)</enum><header>Basis
reduction</header><text>The basis of any property shall be reduced by the
portion of the cost of such property taken into account under subsection
(a).</text>
</paragraph><paragraph id="H60C4BD4FA5A14C5384B686BD13B9B3C"><enum>(3)</enum><header>Denial of double
benefit</header>
<subparagraph id="H32437B8614AD4103BC69778EC5CDB064"><enum>(A)</enum><header>In
general</header><text>No deduction shall be allowed for that portion of the
expenses otherwise allowable as a deduction for the taxable year which is equal
to the amount taken into account under subsection (a) for such taxable
year.</text>
</subparagraph><subparagraph id="H9A5461F745844A9DAEDD38431FDB44E"><enum>(B)</enum><header>Amount previously
deducted</header><text>No credit shall be allowed under subsection (a) with
respect to any amount for which a deduction has been allowed in any preceding
taxable
year.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1D1B590C38A5490AB5156B007CC7ABCB"><enum>(b)</enum><header>Credit treated
as part of general business credit</header><text>Section 38(b) is amended by
striking <quote>plus</quote> at the end of paragraph (30), by striking the
period at the end of paragraph (31) and inserting <quote>plus</quote>, and by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H70E7CE7B872544F7A5809E4E052BFE75" style="OLC">
<paragraph id="HD02C4D410FC1466F9C18DC67B8B307C"><enum>(32)</enum><text>the energy savings
certification credit determined under section
45O(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H053969CB19774F3A877FA58BFB992D5B"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="HC72DDAD7A725439E977BE26545B0BEBF"><enum>(1)</enum><text>Section 1016(a),
as amended by this Act, is amended by striking <quote>and</quote> at the end of
paragraph (39), by striking the period at the end of paragraph (40) and
inserting <quote>and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H909FC94C0CB3444487E79D77DAE8DC5D" style="OLC">
<paragraph id="HD12926E49CED42A5AD419FBB1DDB64D"><enum>(41)</enum><text>to the extent
provided in section
45O(d)(2).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF86AB3E06633457EB48F28FA13C65B9D"><enum>(2)</enum><text>The table of
sections for subpart D of part IV of subchapter A of chapter 1 is amended by
inserting after the item relating to section 45N the following new item:</text>
<quoted-block id="H6ADD1E08027D4480AA5E6C4C8300CCE0" style="OLC">
<toc>
<toc-entry idref="H89A12F9CE60A4ED79147D2C72C73EFE" level="section">Sec. 45O. Energy savings certification
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE6F24FE720EA4992BC0007192787A78E"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred after the date of the enactment of this Act.</text>
</subsection></section></subtitle><enum>III</enum><header>Save Tax Payers
Money</header>
<section id="H8B98A4BCB7104B538C00A3A8B45CEB5D"><enum>301.</enum><header>Repeal of
certain provisions of the Energy Policy Act of 2005</header>
<subsection id="H9B0B645BC66844BCBE19EBDB452C9FFF"><enum>(a)</enum><header>Repeals</header><text>The
following provisions of the Energy Policy Act of 2005, and the items relating
thereto in the table of contents of that Act, are repealed:</text>
<paragraph id="H7ACB3877EE6F4CD697997CA4D6285620"><enum>(1)</enum><text>Section 342
(relating to program on oil and gas royalties in-kind).</text>
</paragraph><paragraph id="HBD67D8E38F6146E98C4E176667D15C1"><enum>(2)</enum><text>Section 343
(relating to marginal property production incentives).</text>
</paragraph><paragraph id="H392B425FC92340BAB0291393CE913C23"><enum>(3)</enum><text>Section 344
(relating to incentives for natural gas production from deep wells in the
shallow waters of the Gulf of Mexico).</text>
</paragraph><paragraph id="HBE441F1DC06D4954A7CA1962FEBF0073"><enum>(4)</enum><text>Section 345
(relating to royalty relief for deep water production).</text>
</paragraph><paragraph id="H4F2194B02B014AEBB7E64BE4979B972D"><enum>(5)</enum><text>Section 357
(relating to comprehensive inventory of OCS oil and natural gas
resources).</text>
</paragraph><paragraph id="H4055ED373F0F46FAB2AE0591252E3F2B"><enum>(6)</enum><text>Subtitle J of
title IX (relating to ultra-deepwater and unconventional natural gas and other
petroleum resources).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H86627672829B453B88AE5B7E3E9D51E8"><enum>(b)</enum><header>Repeal of Alaska
offshore royalty suspension</header><text>Section 8(a)(3)(B) of the Outer
Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(3)(B)</external-xref>) is amended by striking
<quote>and in the Planning Areas offshore Alaska</quote>.</text>
</subsection></section><section display-inline="no-display-inline" id="HAA737D38CE6C4D72A3ABA8BFA77B2FF" section-type="subsequent-section"><enum>302.</enum><header>Repeal of certain
tax provisions of the Energy Policy Act of 2005</header>
<subsection id="HAE61221126EF42EF8ED0687DAE76490"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">The following provisions, and amendments
made by such provisions, of the Energy Policy Act of 2005 are hereby
repealed:</text>
<paragraph id="HFD508A6F509D42EF93A0C906B47D351D"><enum>(1)</enum><text display-inline="yes-display-inline">Section 1306 (relating to credit for
production from advanced nuclear power facilities).</text>
</paragraph><paragraph id="HFAF287DA762744AD85D6348D46DEBAAD"><enum>(2)</enum><text display-inline="yes-display-inline">Section 1307 (relating to credit for
investment in clean coal facilities).</text>
</paragraph><paragraph id="H0C4F0F2EEA6C490C8930ED63CA32A775"><enum>(3)</enum><text display-inline="yes-display-inline">Section 1308 (relating to electric
transmission property treated as 15-year property).</text>
</paragraph><paragraph id="H09396EE5086E45F2BFC152ACC3EBA3F"><enum>(4)</enum><text>Section 1309
(relating to expansion of amortization for certain atmospheric pollution
control facilities).</text>
</paragraph><paragraph id="H2246707A482E405B92A198BF4536CFF5"><enum>(5)</enum><text display-inline="yes-display-inline">Section 1310 (relating to modifications to
special rules for nuclear decommissioning costs).</text>
</paragraph><paragraph id="H5F5B6BC9EAEC4B459114F1EF876120F3"><enum>(6)</enum><text display-inline="yes-display-inline">Section 1321 (relating to extension of
credit for producing fuel from nonconventional source (coke or coke
gas).</text>
</paragraph><paragraph id="HCCC5AD439B784629B871FB850057301C"><enum>(7)</enum><text display-inline="yes-display-inline">Section 1323 (relating to temporary
expensing for equipment used in refining of liquid fuels).</text>
</paragraph><paragraph id="H9DE0AB73D53B4288BEF81B3BD70051A4"><enum>(8)</enum><text display-inline="yes-display-inline">Section 1325 (relating to natural gas
distribution lines treated as 15-year property).</text>
</paragraph><paragraph id="H0D7A219DB46244BD9683AB2C89EDFA2C"><enum>(9)</enum><text display-inline="yes-display-inline">Section 1326 (relating to natural gas
gathering lines treated as 7-year property).</text>
</paragraph><paragraph id="H2D71A037EEFB4F06AAA848D0ADD52732"><enum>(10)</enum><text display-inline="yes-display-inline">Section 1328 (relating to determination of
small refiner exception to oil depletion deduction).</text>
</paragraph><paragraph id="HEEEF66FE7C8D4B8BB8D09DC3C2D83513"><enum>(11)</enum><text display-inline="yes-display-inline">Section 1329 (relating to amortization of
geological and geophysical expenditures).</text>
</paragraph></subsection><subsection id="H3E603FADDD8C48828522724CD4DBC918"><enum>(b)</enum><header>Administration
of Internal Revenue Code of 1986</header><text>The Internal Revenue Code of
1986 shall be applied and administered as if the provisions, and amendments,
specified in subsection (a) had never been enacted.</text>
</subsection></section><enum>IV</enum><header>State and Local
Authority</header>
<section id="H8141F1701A464B48B2A44F92D7BC3812"><enum>401.</enum><header>State consumer
product energy efficiency standards</header><text display-inline="no-display-inline">Section 327 of the Energy Policy and
Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6297">42 U.S.C. 6297</external-xref>) is amended by adding at the end the following
new subsection:</text>
<quoted-block id="H434A8CEB80E442F39C84E7EFA0CDC6E" style="OLC">
<subsection id="H68452661219B4E5E98F4206809E82DDD"><enum>(h)</enum><header>Limitation on
Preemption</header><text>Subsections (a), (b), and (c) shall not apply with
respect to State regulation of energy consumption or water use of any covered
product during any period of time—</text>
<paragraph id="H7084EFF6FBEC476883BD4EC8300D5B3"><enum>(1)</enum><text display-inline="yes-display-inline">after the expiration of 3 years after the
required date of issuance of a final rule determining whether Federal standards
for such consumption or use will be established or revised, if such rule has
not been issued; and</text>
</paragraph><paragraph id="H3BE2AE4EC0CB4A51A2385063DADB221B"><enum>(2)</enum><text>before the date on
which such rule is
issued.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="HE15819641AC84355A584D4003D423266" section-type="subsequent-section"><enum>402.</enum><header>Appeals from
consistency determinations under Coastal Zone Management Act of
1972</header><text display-inline="no-display-inline">Section 319 of the
Coastal Zone Management Act of 1972 (<external-xref legal-doc="usc" parsable-cite="usc/16/1465">16 U.S.C. 1465</external-xref>) is amended to read as if
section 381 of the Energy Policy Act of 2005 (119 Stat. 737) were not
enacted.</text>
</section><section id="H28F87CB1893C49A3BFCD553352F0954F"><enum>403.</enum><header>Siting of
interstate electric transmission facilities</header><text display-inline="no-display-inline">Section 216 of the Federal Power Act (16
U.S.C. 824p) is repealed.</text>
</section><section id="H5EBC51638C3E44F6AEC8F1A47C99F9D6"><enum>404.</enum><header>New natural gas
storage facilities</header><text display-inline="no-display-inline">Subsection
(f) of section 4 of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717c">15 U.S.C. 717c(f)</external-xref>) is repealed.</text>
</section><section id="H6AA8B8A8E1484BED94B48088113F3948"><enum>405.</enum><header>Process
coordination; hearings; rules of procedure</header><text display-inline="no-display-inline">The amendments to the Natural Gas Act made
by section 313 of the Energy Policy Act of 2005 are repealed, and the Natural
Gas Act shall be administered as if those amendments were never enacted.</text>
</section><section id="HD9B383AAFCCD49028C298F994388ECA5"><enum>406.</enum><header>Repeal of
preemption of State law relating to automobile fuel economy
standards</header><text display-inline="no-display-inline">Section 32919 of
title 49, United States Code, is repealed.</text>
</section><enum>V</enum><header>Renewable Energy
Research and Development</header>
<section id="H85595AB129FA4F629873142831136921"><enum>501.</enum><header>Advanced
biofuel technologies</header>
<subsection id="H5A1460A0EB314CBE89F3EA1D46B08876"><enum>(a)</enum><header>In
General</header><text>The Secretary of Energy shall carry out a program of
research, development, demonstration, and commercial application for production
of motor and other fuels from biomass.</text>
</subsection><subsection id="HDB831C37B7044C400060366B00DD54BD"><enum>(b)</enum><header>Objectives</header><text>The
Secretary shall design the program under this section to—</text>
<paragraph id="HD30AF75C269941C289B492E71F4EFC7"><enum>(1)</enum><text>develop
technologies that would make ethanol produced from cellulosic feedstocks cost
competitive with ethanol produced from corn by 2012;</text>
</paragraph><paragraph id="H558798A7F2704343A2F4F8E5C6AA11B5"><enum>(2)</enum><text>conduct research
and development on how to apply advanced genetic engineering and bioengineering
techniques to increase the efficiency and lower the cost of industrial-scale
production of liquid fuels from cellulosic feedstocks; and</text>
</paragraph><paragraph id="H90F4E8F7683F49C480BB7C00603BFC00"><enum>(3)</enum><text>conduct research
and development on the production of hydrocarbons other than ethanol from
biomass.</text>
</paragraph></subsection><subsection id="H3B7C0E53EAD44625BDD23DA1401594BD"><enum>(c)</enum><header>Institution of
Higher Education Grants</header><text>The Secretary shall designate not less
than 10 percent of the funds appropriated under subsection (d) for each fiscal
year to carry out the program for grants to competitively selected institutions
of higher education around the country focused on meeting the objectives stated
in subsection (b).</text>
</subsection><subsection id="H69EB6378735046D894ACE70000ED6DA8"><enum>(d)</enum><header>Authorization of
Appropriations</header><text>From amounts authorized to be appropriated under
section 931(c) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16231">42 U.S.C. 16231(c)</external-xref>), there are
authorized to be appropriated to the Secretary to carry out this
section—</text>
<paragraph id="HF6518DD3EADF4159A3FB4C9CE5B38601"><enum>(1)</enum><text>$150,000,000 for
fiscal year 2008;</text>
</paragraph><paragraph id="H92FE856014D444DAA21761E034C6AAF"><enum>(2)</enum><text>$160,000,000 for
fiscal year 2009; and</text>
</paragraph><paragraph id="H038915E369AC45A4A57F9B8BA63E1041"><enum>(3)</enum><text>$175,000,000 for
fiscal year 2010.</text>
</paragraph></subsection></section><section id="HCF313FAC9D7544A1851C264D6B70E00"><enum>502.</enum><header>Advanced
hydrogen storage technologies</header>
<subsection id="HA1FC65488B3F4D83965D50A1C89E6075"><enum>(a)</enum><header>In
General</header><text>The Secretary of Energy shall carry out a program of
research, development, demonstration, and commercial application for
technologies to enable practical onboard storage of hydrogen for use as a fuel
for light-duty motor vehicles.</text>
</subsection><subsection id="H1C50D5526B53465D9FBA0217AB7E457B"><enum>(b)</enum><header>Objective</header><text>The
Secretary shall design the program under this section to develop practical
hydrogen storage technologies that would enable a hydrogen-fueled light-duty
motor vehicle to travel 300 miles before refueling.</text>
</subsection></section><section id="H2C5C9A8903EE4C20974DE4023EC9007E"><enum>503.</enum><header>Advanced solar
photovoltaic technologies</header>
<subsection id="H0E78DFE2E97A478BB14E17ABF9DEE709"><enum>(a)</enum><header>In
General</header><text>The Secretary of Energy shall carry out a program of
research, development, demonstration, and commercial application for advanced
solar photovoltaic technologies.</text>
</subsection><subsection id="H3826A143381E44B4934B9E25ACA15757"><enum>(b)</enum><header>Objectives</header><text>The
Secretary shall design the program under this section to develop technologies
that would—</text>
<paragraph id="H1531223F89CB40E0A1C4427EA5C4FBB"><enum>(1)</enum><text>make electricity
generated by solar photovoltaic power cost-competitive by 2015; and</text>
</paragraph><paragraph id="H8F6D0EF85FEF436FBE22051630824508"><enum>(2)</enum><text>enable the
widespread use of solar photovoltaic power.</text>
</paragraph></subsection><subsection id="H574120381B084E8EA379CD5CE243F884"><enum>(c)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated to the
Secretary to carry out this section—</text>
<paragraph id="H4CDAFF4CC8C240FEAFEAE26BF62C87"><enum>(1)</enum><text>$148,000,000 for
fiscal year 2008;</text>
</paragraph><paragraph id="H57C3453F7CA44A84AF0880F47C435806"><enum>(2)</enum><text>$155,000,000 for
fiscal year 2009;</text>
</paragraph><paragraph id="H48D47D92E498415CA979F6C5275B3E00"><enum>(3)</enum><text>$165,000,000 for
fiscal year 2010; and</text>
</paragraph><paragraph id="H1419F297B01E4264917336486D9C0099"><enum>(4)</enum><text>$180,000,000 for
fiscal year 2012.</text>
</paragraph></subsection></section><section id="H705220769AB9419FBE87A1C5EB66D67B"><enum>504.</enum><header>Advanced wind
energy technologies</header>
<subsection id="H4DB9F4EE435548D98F32AE067AA35CE"><enum>(a)</enum><header>In
General</header><text>The Secretary of Energy shall carry out a program of
research, development, demonstration, and commercial application for advanced
wind energy technologies.</text>
</subsection><subsection id="H49BC77BCC732438AACFE8928E524E900"><enum>(b)</enum><header>Objectives</header><text>The
Secretary shall design the program under this section to—</text>
<paragraph id="H1FA61F3303A641C2A7484BC986C9F7B9"><enum>(1)</enum><text>improve the
efficiency and lower the cost of wind turbines;</text>
</paragraph><paragraph id="HE4C02B8B6EF5477B9217FC3D7804FD5"><enum>(2)</enum><text>minimize adverse
environmental impacts; and</text>
</paragraph><paragraph id="H81035613816B42199B007D13CE89D89B"><enum>(3)</enum><text>develop new
small-scale wind energy technologies for use in low wind speed
environments.</text>
</paragraph></subsection><subsection id="HA9160AE4FBC243F6BAD6D033D31E5000"><enum>(c)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated to the
Secretary to carry out this section—</text>
<paragraph id="H5F40D815F8784BDE8152DECAF07B72EF"><enum>(1)</enum><text>$44,000,000 for
fiscal year 2008;</text>
</paragraph><paragraph id="H13EA0992E6BB488C86D0ED2004BD745"><enum>(2)</enum><text>$48,400,000 for
fiscal year 2009;</text>
</paragraph><paragraph id="HEC4E6FF284884A100099B14C91FC14EF"><enum>(3)</enum><text>$53,240,000 for
fiscal year 2010; and</text>
</paragraph><paragraph id="H09D496D260E7449E89596D56965BF6BA"><enum>(4)</enum><text>$58,564,000 for
fiscal year 2011.</text>
</paragraph></subsection></section><section id="HC2B30EA2F544435E978F8139D0CC00C"><enum>505.</enum><header>Continuing
programs</header><text display-inline="no-display-inline">The Secretary of
Energy shall continue to carry out the research, development, demonstration,
and commercial application activities authorized in sections 921(b)(1) (for
distributed energy), 923 (for micro-cogeneration technology), and 931(a)(2)(C),
(D), and (E)(i) (for geothermal energy, hydropower, and ocean energy) of the
Energy Policy Act of 2005.</text>
</section><section id="H8DC010A32E834FA6B57142C742AE6377"><enum>506.</enum><header>Plug-in hybrid
electric vehicle technology program</header>
<subsection id="H74E969754F9B48E381A67DCADA9C5C12"><enum>(a)</enum><header>Short
Title</header><text>This section may be cited as the <quote>Plug-In Hybrid
Electric Vehicle Act of 2007</quote>.</text>
</subsection><subsection id="H91D9812D664A4FFF9CA4754E6FB4E03C"><enum>(b)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H5DF14EF836D341A0968EB44B18987E7E"><enum>(1)</enum><header>Battery</header><text>The
term <quote>battery</quote> means a device or system for the electrochemical
storage of energy.</text>
</paragraph><paragraph id="H3AD0531A0F344CAEB79CC986B2DF425C"><enum>(2)</enum><header><enum-in-header>E85</enum-in-header></header><text>The
term <quote>E85</quote> means a fuel blend containing 85 percent ethanol and 15
percent gasoline by volume.</text>
</paragraph><paragraph id="H6458CF841D9F411EAC5E5BA7969CF0F4"><enum>(3)</enum><header>Electric drive
transportation technology</header><text>The term <quote>electric drive
transportation technology</quote> means—</text>
<subparagraph id="H61F511C4FE40463CBA1C0000AE50B21E"><enum>(A)</enum><text>vehicles that use
an electric motor for all or part of their motive power and that may or may not
use offboard electricity, including battery electric vehicles, hybrid electric
vehicles, plug-in hybrid electric vehicles, flexible fuel plug-in hybrid
electric vehicles, and electric rail; and</text>
</subparagraph><subparagraph id="HB500020D75FC4951B739C2FAB8A6DFE8"><enum>(B)</enum><text>related equipment,
including electric equipment necessary to recharge a plug-in hybrid electric
vehicle.</text>
</subparagraph></paragraph><paragraph id="HFC1E23F9BCBC4137A7D745B9B9EE79FF"><enum>(4)</enum><header>Flexible fuel
plug-in hybrid electric vehicle</header><text>The term <quote>flexible fuel
plug-in hybrid electric vehicle</quote> means a plug-in hybrid electric vehicle
warranted by its manufacturer as capable of operating on any combination of
gasoline or E85 for its onboard internal combustion or heat engine.</text>
</paragraph><paragraph id="H6828BE6E53504A8782763927C01EC173"><enum>(5)</enum><header>Hybrid electric
vehicle</header><text>The term <quote>hybrid electric vehicle</quote> means a
vehicle that—</text>
<subparagraph id="H9A421D20607D49698532FC9241C765AE"><enum>(A)</enum><text>can be propelled
using liquid combustible fuel and electric power provided by an onboard
battery; and</text>
</subparagraph><subparagraph id="H7C4CF6B93C574932B6DB4B461D99587"><enum>(B)</enum><text>utilizes
regenerative power capture technology to recover energy expended in braking the
vehicle for use in recharging the battery.</text>
</subparagraph></paragraph><paragraph id="H4D134C251FA5471CA5F5EE710DEFCFD"><enum>(6)</enum><header>Plug-in hybrid
electric vehicle</header><text>The term <quote>plug-in hybrid electric
vehicle</quote> means a hybrid electric onroad light-duty vehicle that can be
propelled solely on electric power for a minimum of 20 miles under city driving
conditions, and that is capable of recharging its battery from an offboard
electricity source.</text>
</paragraph></subsection><subsection id="H19F937CC7C1D4364A11D677C4F27B068"><enum>(c)</enum><header>Program</header><text>The
Secretary of Energy shall conduct a program of research, development,
demonstration, and commercial application on technologies needed for the
development of plug-in hybrid electric vehicles and electric drive
transportation, including—</text>
<paragraph id="HE3D6F647AE944AC196E970BABC39AC52"><enum>(1)</enum><text>high capacity,
high efficiency batteries, to—</text>
<subparagraph id="HC6B5454AC54342A7902571903C9DB720"><enum>(A)</enum><text>improve battery
life, energy storage capacity, and power delivery capacity, and lower cost;
and</text>
</subparagraph><subparagraph id="H670D2C88D9C4426193F9EBE7D6B8374"><enum>(B)</enum><text>minimize waste and
hazardous material production in the entire value chain, including after the
end of the useful life of the batteries;</text>
</subparagraph></paragraph><paragraph id="H16FBD1135FE4453987AA004EE7F6DDE6"><enum>(2)</enum><text>high efficiency
onboard and offboard charging components;</text>
</paragraph><paragraph id="HC221C4927FBC478898B14FABBF709707"><enum>(3)</enum><text>high power drive
train systems for passenger and commercial vehicles and for supporting
equipment;</text>
</paragraph><paragraph id="H42540F5A7CE248CBBB1CE31E7D498E09"><enum>(4)</enum><text>onboard energy
management systems, power trains, and systems integration for plug-in hybrid
electric vehicles, flexible fuel plug-in hybrid electric vehicles, and hybrid
electric vehicles, including efficient cooling systems and systems that
minimize the emissions profile of such vehicles; and</text>
</paragraph><paragraph id="HF2B14D4534504EB4BFB7FDC1DCF7B337"><enum>(5)</enum><text>lightweight
materials, including research, development, demonstration, and commercial
application to reduce the cost of materials such as steel alloys and carbon
fibers.</text>
</paragraph></subsection><subsection id="H3C929A02567D4525B93E9FF87328636E"><enum>(d)</enum><header>Plug-In Hybrid
Electric Vehicle Demonstration Program</header>
<paragraph id="H26D3BA3605D54298A1AA6F71C25F83"><enum>(1)</enum><header>Establishment</header><text>The
Secretary shall establish a competitive grant pilot demonstration program to
provide not more than 25 grants annually to State governments, local
governments and public entities, metropolitan transportation authorities, or
combinations thereof to carry out a project or projects for demonstration of
plug-in hybrid electric vehicles.</text>
</paragraph><paragraph id="H9BA4830F96BF4F4994E3F156CEDE1C63"><enum>(2)</enum><header>Applications</header>
<subparagraph id="H85E42A1A4C8741E587C44C7FB7A6DDE8"><enum>(A)</enum><header>Requirements</header><text>The
Secretary shall issue requirements for applying for grants under the
demonstration pilot program. The Secretary shall require that applications, at
a minimum, include a description of how data will be—</text>
<clause id="H74E5F123818D434B88C5002F964BA5A3"><enum>(i)</enum><text>collected on
the—</text>
<subclause id="H8A4F441B28A84032B4DB18E4210027B1"><enum>(I)</enum><text>performance of the
vehicle or vehicles and the components, including the battery, energy
management, and charging systems, under various driving speeds, trip ranges,
traffic, and other driving conditions;</text>
</subclause><subclause id="H049F67B82FCF4F96841C98F0BE1D1946"><enum>(II)</enum><text>costs of the
vehicle or vehicles, including acquisition, operating, and maintenance costs,
and how the project or projects will be self-sustaining after Federal
assistance is completed; and</text>
</subclause><subclause id="H33E8E93E13264930892F3D116D01DB5D"><enum>(III)</enum><text>emissions of the
vehicle or vehicles, including greenhouse gases, and the amount of petroleum
displaced as a result of the project or projects; and</text>
</subclause></clause><clause id="H682F24EFE89949E2BA9D9573AEAF2FC0"><enum>(ii)</enum><text>summarized for
dissemination to the Department, other grantees, and the public.</text>
</clause></subparagraph><subparagraph id="H7F4A928162CD4C8E9E172B86A12C18EE"><enum>(B)</enum><header>Partners</header><text>An
applicant under subparagraph (A) may carry out a project or projects under the
pilot program in partnership with one or more private or nonprofit entities,
which may include institutions of higher education, including Historically
Black Colleges and Universities, Hispanic Serving Institutions, and other
minority-serving institutions.</text>
</subparagraph></paragraph><paragraph id="HAA595A9B594E4D73A06406BFD7A1AD8E"><enum>(3)</enum><header>Selection
criteria</header>
<subparagraph id="H5278D0E3CEBF4143A913EAEA5FF64091"><enum>(A)</enum><header>Preference</header><text>When
making awards under this subsection, the Secretary shall consider each
applicant’s previous experience involving plug-in hybrid electric vehicles and
shall give preference to proposals that—</text>
<clause id="H4B26918734F746F39CF737C8EF83DED2"><enum>(i)</enum><text>provide the
greatest demonstration per award dollar, with preference increasing as the
number of miles that a plug-in hybrid electric vehicle can be propelled solely
on electric power under city driving conditions increases; and</text>
</clause><clause id="H8FC47CADB59F407CA08B40E93C1D2E50"><enum>(ii)</enum><text>maximize the
non-Federal share of project funding and demonstrate the greatest likelihood
that each project proposed in the application will be maintained or expanded
after Federal assistance under this subsection is completed.</text>
</clause></subparagraph><subparagraph id="H884DA0FD54FC4ECD9E5352DC8F5058F5"><enum>(B)</enum><header>Breadth of
demonstrations</header><text>In awarding grants under this subsection, the
Secretary shall ensure the program will demonstrate plug-in hybrid electric
vehicles under various circumstances, including—</text>
<clause id="H51262EFF08BE43E800A0F2A051AB3953"><enum>(i)</enum><text>driving
speeds;</text>
</clause><clause id="H410AC9048DE04F85A0ED45382E089ED"><enum>(ii)</enum><text>trip
ranges;</text>
</clause><clause id="HDF74421BB2494D3FBB4883CBAEB79CA4"><enum>(iii)</enum><text>driving
conditions;</text>
</clause><clause id="H0A12879664F5434DA7974C7C3C846592"><enum>(iv)</enum><text>climate
conditions; and</text>
</clause><clause id="HBA1409D6A763417A90F174DC847477C8"><enum>(v)</enum><text>topography,</text>
</clause><continuation-text continuation-text-level="subparagraph">to
optimize understanding and function of plug-in hybrid electric vehicles.</continuation-text></subparagraph></paragraph><paragraph id="HEF804693948147E100C61712DF1B418"><enum>(4)</enum><header>Pilot project
requirements</header>
<subparagraph id="H1B237D7A1289418D975B21854F1CBC20"><enum>(A)</enum><header>Subsequent
funding</header><text>An applicant that has received a grant in one year may
apply for additional funds in subsequent years, but the Secretary shall not
provide more than $10,000,000 in Federal assistance under the pilot program to
any applicant for the period encompassing fiscal years 2008 through fiscal year
2012.</text>
</subparagraph><subparagraph id="H2DD7700F18494E1CAFAE4F856DC97031"><enum>(B)</enum><header>Information</header><text>The
Secretary shall establish mechanisms to ensure that the information and
knowledge gained by participants in the pilot program are shared among the
pilot program participants and are available to other interested parties,
including other applicants.</text>
</subparagraph></paragraph><paragraph id="H9AD462A97B814ABDA74DD4B4790012D8"><enum>(5)</enum><header>Award
amounts</header><text>The Secretary shall determine grant amounts, but the
maximum size of grants shall decline as the cost of producing plug-in hybrid
electric vehicles declines or the cost of converting a hybrid electric vehicle
to a plug-in hybrid electric vehicle declines.</text>
</paragraph></subsection><subsection id="H4409CB4F3D64439789749B2851B5FA44"><enum>(e)</enum><header>Cost
Sharing</header><text>The Secretary shall carry out the program under this
section in compliance with section 988(a) through (d) and section 989 of the
Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16352">42 U.S.C. 16352(a)</external-xref> through (d) and 16353).</text>
</subsection><subsection id="H246B176A940342E5A25022511512004F"><enum>(f)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated to the
Secretary—</text>
<paragraph id="HF2290FFB22CA4F8A83A184B6A8006C85"><enum>(1)</enum><text>for carrying out
subsection (c), $250,000,000 for each of fiscal years 2008 through 2012, of
which up to $50,000,000 may be used for the program described in paragraph (5)
of that subsection; and</text>
</paragraph><paragraph id="H05D63D66CC574FE29CA12595937F46BF"><enum>(2)</enum><text>for carrying out
subsection (d), $50,000,000 for each of fiscal years 2008 through 2012.</text>
</paragraph></subsection></section><section id="H27FDCF22467C4D05B1F9B42EE523BF5"><enum>507.</enum><header>Photovoltaic
demonstration program</header>
<subsection id="H00E51DE0DF764B9EA940E7B09E3063D4"><enum>(a)</enum><header>Short
Title</header><text>This section may be cited as the <quote>Solar Utilization
Now Demonstration Act of 2007</quote> or the <quote>SUN Act of
2007</quote>.</text>
</subsection><subsection id="H825B22F047F6485E93B553678369C679"><enum>(b)</enum><header>In
General</header><text>The Secretary of Energy shall establish a program of
grants to States to demonstrate advanced photovoltaic technology.</text>
</subsection><subsection id="H71858F830AEA483585CA4392EDE00B9"><enum>(c)</enum><header>Requirements</header>
<paragraph id="HE347E9139F4E4FE6BC4CF2752B53233C"><enum>(1)</enum><header>Ability to meet
requirements</header><text>To receive funding under the program under this
section, a State must submit a proposal that demonstrates, to the satisfaction
of the Secretary, that the State will meet the requirements of subsection
(g).</text>
</paragraph><paragraph id="H2C487D22BF8245ABAD4CFC8733D45978"><enum>(2)</enum><header>Compliance with
requirements</header><text>If a State has received funding under this section
for the preceding year, the State must demonstrate, to the satisfaction of the
Secretary, that it complied with the requirements of subsection (g) in carrying
out the program during that preceding year, and that it will do so in the
future, before it can receive further funding under this section.</text>
</paragraph><paragraph id="H8D376749F72A402B9CB17F5D79414599"><enum>(3)</enum><header>Funding
allocation</header><text>Except as provided in subsection (d), each State
submitting a proposal that meets the requirements under subsection (c) shall
receive funding under the program based on the proportion of United States
population in the State according to the 2000 census. In each fiscal year, the
portion of funds attributable under this paragraph to States that have not
submitted proposals that meet the requirements under subsection (c) in the time
and manner specified by the Secretary shall be distributed pro rata to the
States that have submitted proposals that meet the requirements under
subsection (c) in the specified time and manner.</text>
</paragraph></subsection><subsection id="HB6C1107B62FB4B65BD9DDE7819567E12"><enum>(d)</enum><header>Competition</header><text>If
more than $80,000,000 is available for the program under this section for any
fiscal year, the Secretary shall allocate 75 percent of the total amount of
funds available according to subsection (c)(3), and shall award the remaining
25 percent on a competitive basis to the States with the proposals the
Secretary considers most likely to encourage the widespread adoption of
photovoltaic technologies. In awarding funds under this subsection, the
Secretary may give preference to proposals that would demonstrate the use of
newer materials or technologies.</text>
</subsection><subsection id="H86C6559952A34C9FA6A800CAB201C867"><enum>(e)</enum><header>Proposals</header><text>Not
later than 6 months after the date of enactment of this Act, and in each
subsequent fiscal year for the life of the program, the Secretary shall solicit
proposals from the States to participate in the program under this
section.</text>
</subsection><subsection id="HB4FE363F8AAA404281CC079D9763CEA5"><enum>(f)</enum><header>Competitive
Criteria</header><text>In awarding funds in a competitive allocation under
subsection (d), the Secretary shall consider—</text>
<paragraph id="HBE3A5DFBFBF34F9488320250C3D34CEE"><enum>(1)</enum><text>the likelihood of
a proposal to encourage the demonstration of, or lower the costs of, advanced
photovoltaic technologies; and</text>
</paragraph><paragraph id="H5C357045D7094099BE236B7B3309C4B7"><enum>(2)</enum><text>the extent to
which a proposal is likely to—</text>
<subparagraph id="HFAA6C0C1739549D2AC6D00E0B9A8D6BA"><enum>(A)</enum><text>maximize the size
of photovoltaic installation, based on rated capacity;</text>
</subparagraph><subparagraph id="H9419801F7948476993A6A1BB29831818"><enum>(B)</enum><text>maximize the
proportion of non-Federal cost share; and</text>
</subparagraph><subparagraph id="H7EFE851490C546778CABF8527F15196"><enum>(C)</enum><text>limit State
administrative costs.</text>
</subparagraph></paragraph></subsection><subsection id="H4E4A9D0D577C46D2B9BE4BAAC49CD062"><enum>(g)</enum><header>State
Program</header><text>A program operated by a State with funding under this
section shall provide competitive awards for the demonstration of advanced
photovoltaic technologies. Each State program shall—</text>
<paragraph id="H61D5F278AC494E2AB406EA1E4B4183D5"><enum>(1)</enum><text>require a
contribution of at least 60 percent per award from non-Federal sources, which
may include any combination of State, local, and private funds, except that at
least 10 percent of the funding must be supplied by the State;</text>
</paragraph><paragraph id="H67C666B02F954F6E9315F7F283CDF672"><enum>(2)</enum><text>limit awards for
any single project to a maximum of $5,000,000;</text>
</paragraph><paragraph id="HE36FAFB710134B6EAA875B3118AF09C6"><enum>(3)</enum><text>prohibit any
nongovernmental recipient from receiving more than $1,000,000 per year;</text>
</paragraph><paragraph id="H31B1633C21474CCFBD1DA1005BEF64D8"><enum>(4)</enum><text>endeavor to fund
recipients in the commercial, industrial, institutional, governmental, and
residential sectors;</text>
</paragraph><paragraph id="H45FC351BA77540BBAA079C00EECCAB86"><enum>(5)</enum><text>limit State
administrative costs to no more than 10 percent of the grant;</text>
</paragraph><paragraph id="H22ABD71273994CAB8075D0493DB600C9"><enum>(6)</enum><text>report annually to
the Secretary on—</text>
<subparagraph id="H68457FF2C82243F4AAC8D186D87DFE31"><enum>(A)</enum><text>the amount of
funds disbursed;</text>
</subparagraph><subparagraph id="HA5BA77E6361245D39F4B98E3885421C5"><enum>(B)</enum><text>the rated capacity
of the photovoltaics purchased and installed; and</text>
</subparagraph><subparagraph id="HC6E5172C5478447089D009A0DB1C4795"><enum>(C)</enum><text>the results of the
monitoring under paragraph (7);</text>
</subparagraph></paragraph><paragraph id="HF3BC4460D6FC473AB879EA56833700FF"><enum>(7)</enum><text>provide for
measurement and verification of the output of a representative sample of the
photovoltaics systems demonstrated throughout the average working life of the
systems, or at least 20 years;</text>
</paragraph><paragraph id="H649E2679CFBE4D1B975D005768037926"><enum>(8)</enum><text>require that
applicant buildings must have received an independent energy efficiency audit
during the 6-month period preceding the filing of the application; and</text>
</paragraph><paragraph id="H17051714EB824F8DA999054DD933F426"><enum>(9)</enum><text>encourage
Historically Black Colleges and Universities, Hispanic Serving Institutions,
and other minority-serving institutions to apply for grants under this
program.</text>
</paragraph></subsection><subsection id="H26FEAE9C32C048A0B98DCA893E73DE8B"><enum>(h)</enum><header>Unexpended
Funds</header><text>If a State fails to expend any funds received under
subsection (c) or (d) within 3 years of receipt, such remaining funds shall be
returned to the Treasury.</text>
</subsection><subsection id="H7EAB9151E50D417AA765D5E87564AB3"><enum>(i)</enum><header>Reports</header><text>The
Secretary shall report to Congress 5 years after funds are first distributed to
the States under this section—</text>
<paragraph id="HC37249A916274D1DA1DEA0412B259E79"><enum>(1)</enum><text>the amount of
photovoltaics demonstrated;</text>
</paragraph><paragraph id="HAD229CA189E347F1B619226C9E378590"><enum>(2)</enum><text>the number of
projects undertaken;</text>
</paragraph><paragraph id="HD91269B8C1034ECABABFF5AA32B825AD"><enum>(3)</enum><text>the administrative
costs of the program;</text>
</paragraph><paragraph id="H1532C4AB2551427A900014FFDBAE7328"><enum>(4)</enum><text>the amount of
funds that each State has not received because of a failure to submit a
qualifying proposal, as described in subsection (c)(3);</text>
</paragraph><paragraph id="HC23739CEFFE14892B961004EC4166EF"><enum>(5)</enum><text>the results of the
monitoring under subsection (g)(7); and</text>
</paragraph><paragraph id="H63F52D707F444808927208BDACE2DFD7"><enum>(6)</enum><text>the total amount
of funds distributed, including a breakdown by State.</text>
</paragraph></subsection><subsection id="H4E9DDF1EAC0C449AA215F1F06BB05D73"><enum>(j)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated to the
Secretary for the purposes of carrying out this section—</text>
<paragraph id="H494BBA5118634F11B712D943D50197AF"><enum>(1)</enum><text>$50,000,000 for
fiscal year 2008;</text>
</paragraph><paragraph id="H50009A9C712E40C098F02D22B0EF2917"><enum>(2)</enum><text>$100,000,000 for
fiscal year 2009;</text>
</paragraph><paragraph id="H546EE805984D4D39B14E3DF8B81D469"><enum>(3)</enum><text>$150,000,000 for
fiscal year 2010;</text>
</paragraph><paragraph id="HCACA0CB9BCD343AA93F19C606213B4CF"><enum>(4)</enum><text>$200,000,000 for
fiscal year 2011; and</text>
</paragraph><paragraph id="H24ACAA16E08845969620E399931E1EB8"><enum>(5)</enum><text>$300,000,000 for
fiscal year 2012.</text>
</paragraph></subsection></section>