110 HR 6385 IH: Apollo Energy
U.S. House of Representatives
2008-06-26
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.
(a)This Act may be cited
as the Apollo Energy Independence Act
of 2008
.
(b)Except as otherwise
expressly provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
(c)The table of contents for this Act is as follows:
Sec. 1. Short title, etc.
Sec. 2. Findings.
Sec. 3. Purposes.
Title I—Enhancing Development of Alternative and Renewable
Energy
Sec. 101. Renewable energy credit made permanent.
Sec. 102. Production credit for electricity produced from
marine renewables.
Sec. 103. Energy credit.
Sec. 104. New clean renewable energy bonds.
Sec. 105. Advanced Nuclear Power Production.
Sec. 106. Loan guarantees for construction of advanced nuclear
facilities.
Title II—Improving Energy Efficiency
Sec. 201. Make permanent the tax credit for residential
energy-efficient property.
Sec. 202. Make permanent the energy efficiency credit for
existing homes.
Sec. 203. Make permanent the energy efficiency commercial
buildings deduction.
Sec. 204. Make permanent the credit for production of
energy-efficient appliances.
Title III—Enhancing Production and Deployment of Alternative
Vehicles and Fuels
Sec. 301. Consumer incentives to purchase advanced technology
vehicles.
Sec. 302. Advanced technology motor vehicles manufacturing
credit.
Sec. 303. Production tax credit for any commercial vehicle that
attains an EPA fuel economy standard of 100 mpg.
Sec. 304. Credit for production of cellulosic
biofuel.
Sec. 305. Establish a permanent production tax credit for
hydrogen fuels.
Sec. 306. Rate of credit for alternative fuel vehicle refueling
property increased from 30 to 60 percent.
Sec. 307. Use of CAFÉ penalties to support the Clean Cities
Initiative.
Sec. 308. Exclusion from heavy truck tax for idling reduction
units and advanced insulation.
Sec. 309. Advanced hydrogen storage technologies.
Sec. 310. Plug-in electric drive vehicle technology
program.
Title IV—Reducing Consumer Energy and Gasoline Costs
Sec. 401. Refundable employer credit for providing tax-free
transit passes to employees.
Sec. 402. Reduction in number of boutique fuels.
Sec. 403. Green schools grant program.
Sec. 404. Extension and greening of qualified zone academy
bonds.
Sec. 405. Study on the reduction of energy costs in public
schools.
Sec. 406. Ethanol.
Title V—Offsets
Sec. 501. FY09 cost.
Sec. 502. Conservation of resources fees.
Sec. 503. Reduction in payment acres for direct and
counter-cyclical payments under Department of Agriculture commodity
programs.
Sec. 504. Reduction in maximum amount of direct,
counter-cyclical, and ACRE payments paid to producers under Department of
Agriculture commodity programs.
Sec. 505. Consolidation of military exchange stores
system.
Sec. 506. Revised pricing structure for depot-level activities
of the Department of Defense.
Sec. 507. Restrict Universal Service Fund support to 2
connections per household.
Sec. 508. Improve Treasury payment transaction
integrity.
Sec. 509. Modernize Treasury cash investment
practices.
Sec. 510. Food Safety and Inspection Service user
fees.
2.The Congress finds the following:
(1)The United States
is the world’s largest per-capita oil consumer and is projected to remain such
through at least 2030.
(2)Crude oil prices
increased by more than 400 percent in the past 10 years.
(3)The retail price
of gasoline increased by nearly 200 percent in the past 10 years.
(4)The retail price
of electricity increased by 30 percent in the past 10 years.
(5)On
June 10, 2008, the national average cost of gasoline surpassed a record $4.00
per gallon.
(6)Foreign oil
accounts for 23.5 percent of United States energy consumption. This represents
the largest component of American’s energy profile.
(7)The United States
is the world’s largest oil importer, spending over $500 billion per year on
foreign oil.
(8)62 percent of the
proved world oil reserves reside in countries considered not
free
by leading human rights organizations.
(9)Oil revenues to
dictatorial nations help provide funding for state-sponsored terrorism against
America and her allies; the acquisition of weapons of mass destruction; and the
sustainability of corrupt political systems which continue to subjugate their
citizenry.
(10)America’s
dependence on oil is a threat to our national security, economic prosperity and
environmental sustainability.
(11)The $20 billion
NASA Apollo program was the first and most comprehensive national effort to
achieve technological advancement in the history of our Nation. Between 1963
and 1972, the United States spent $19.5 billion to realize one of her most
prestigious accomplishments—landing on the moon.
3.The purposes of this Act are—
(1)to establish
long-term market incentives in order to spur development, deployment and demand
of renewable and alternative energy, vehicles and fuel; and
(2)to provide
resources on the scale of the NASA Apollo program, to achieve preeminence in
efficient and alternative energy consumption for the United States and to
develop America’s capability to live and work without dependence on foreign
oil.
<enum>I</enum><header>Enhancing
Development of Alternative and Renewable Energy</header>
<section commented="no" display-inline="no-display-inline" id="H294D5D9298D7452B9B85BF7143D70894" section-type="subsequent-section"><enum>101.</enum><header>Renewable energy
credit made permanent</header>
<subsection commented="no" id="HD51AEBE9C9DE421FBA7F141794877D83"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (d) of
<external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45</external-xref> of the Internal Revenue Code of 1986 (relating to qualified
facilities) is amended—</text>
<paragraph commented="no" id="H18E7EC0B776D4FE69C5D0000DB333D11"><enum>(1)</enum><text>by striking
<quote>and before January 1, 2009</quote> each place it occurs,</text>
</paragraph><paragraph commented="no" id="H557135462EF04795A7132800BA1BE2BF"><enum>(2)</enum><text>by striking
<quote>, and before January 1, 2009</quote> in paragraphs (1) and
(2)(A)(i),</text>
</paragraph><paragraph id="HCE3261883ED64DD489BF97A17C4EDDE6"><enum>(3)</enum><text>by striking
<quote>before January 1, 2009</quote> in paragraphs (2)(A)(ii) and (3)(A)(ii)
and inserting <quote>January 1, 2019</quote>, and</text>
</paragraph><paragraph id="HE4506D45207E46679F5C746662A759DB"><enum>(4)</enum><text>by striking
<quote>January 1, 2006</quote> in paragraph (4) and inserting <quote>January 1,
2019</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H5B094FB1798D4A399ECDF00069D08B52"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall apply to
electricity produced and sold after December 31, 2008, in taxable years ending
after such date.</text>
</subsection></section><section display-inline="no-display-inline" id="H4739CD0CCE7A4205AD1D84B0C0D081B0" section-type="subsequent-section"><enum>102.</enum><header>Production credit
for electricity produced from marine renewables</header>
<subsection id="HE4C5EFCA1E3B40B889CA600091231B"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 45(c) is amended by striking
<quote>and</quote> at the end of subparagraph (G), by striking the period at
the end of subparagraph (H) and inserting <quote>, and</quote>, and by adding
at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H6FD1F068543148D68CF3A6F711F1F1E4" style="OLC">
<subparagraph id="HDE8D87BD1FF447CCBC020260006ED474"><enum>(I)</enum><text display-inline="yes-display-inline">marine and hydrokinetic renewable
energy.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HD8D928544B1540B0904B7DC3001075C7"><enum>(b)</enum><header>Marine
renewables</header><text>Subsection (c) of section 45 is amended by adding at
the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H6C0C06CF1D844C45B2D3DCAB7E611EF" style="OLC">
<paragraph commented="no" id="H8A375EA15F6B4208BFCA445B52E91CE"><enum>(10)</enum><header>Marine and
hydrokinetic renewable energy</header>
<subparagraph id="H9D1F6D0D5BF843979501C605984811F1"><enum>(A)</enum><header>In
general</header><text>The term <term>marine and hydrokinetic renewable
energy</term> means energy derived from—</text>
<clause display-inline="no-display-inline" id="H54B57FAED2574377A45677FC806579E"><enum>(i)</enum><text>waves, tides, and
currents in oceans, estuaries, and tidal areas,</text>
</clause><clause id="HB7B2AA572463419B96FF5F3E97C18D6E"><enum>(ii)</enum><text>free flowing
water in rivers, lakes, and streams,</text>
</clause><clause id="HEDAE6DBA9C50471A887F14C7085029A4"><enum>(iii)</enum><text>free flowing
water in an irrigation system, canal, or other man-made channel, including
projects that utilize nonmechanical structures to accelerate the flow of water
for electric power production purposes, or</text>
</clause><clause id="HD50053C6D39541E496B53025BC75367D"><enum>(iv)</enum><text>differentials in
ocean temperature (ocean thermal energy conversion).</text>
</clause></subparagraph><subparagraph id="H15CE326BCEBD4543B6AFE3C87E714C81"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Such term shall not include any energy
which is derived from any source which utilizes a dam, diversionary structure
(except as provided in subparagraph (A)(iii)), or impoundment for electric
power production
purposes.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HCFADFB0B38B443C5AAC5437ED2CC2692"><enum>(c)</enum><header>Definition of
facility</header><text>Subsection (d) of section 45 is amended by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H41F58AE8BFFB4F8F85FE6C2C1786CAFA" style="OLC">
<paragraph id="H50D524D4B34F4F248E3E37D895060054"><enum>(11)</enum><header>Marine and
hydrokinetic renewable energy facilities</header><text display-inline="yes-display-inline">In the case of a facility producing
electricity from marine and hydrokinetic renewable energy, the term
<term>qualified facility</term> means any facility owned by the
taxpayer—</text>
<subparagraph id="H4F7657ED25754F10BD82B88DEE183212"><enum>(A)</enum><text display-inline="yes-display-inline">which has a nameplate capacity rating of at
least 150 kilowatts, and</text>
</subparagraph><subparagraph id="H0489FA918546465C86EA1BC93E0008B0"><enum>(B)</enum><text>which is
originally placed in service on or after the date of the enactment of this
paragraph.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF70C64AC7DF843658DD24E12FB86B148"><enum>(d)</enum><header>Credit
rate</header><text>Subparagraph (A) of section 45(b)(4) is amended by striking
<quote>or (9)</quote> and inserting <quote>(9), or (11)</quote>.</text>
</subsection><subsection commented="no" id="H9D7A9493062F44E4BC652E15E9A68882"><enum>(e)</enum><header>Coordination
with small irrigation power</header><text>Paragraph (5) of section 45(d) is
amended by striking <quote>January 1, 2009</quote> and inserting <quote>the
date of the enactment of paragraph (11)</quote>.</text>
</subsection><subsection id="H67F465BA538B42449C217D1CE484325B"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
electricity produced and sold after the date of the enactment of this Act, in
taxable years ending after such date.</text>
</subsection></section><section display-inline="no-display-inline" id="HB4D3B74E88514A31B0D31E26C36B00FB" section-type="subsequent-section"><enum>103.</enum><header>Energy
credit</header>
<subsection id="H853B3B17865B4349939507502933C9D6"><enum>(a)</enum><header>Extension of
credit</header>
<paragraph id="H986AFAC7E52942C79E44D17B81AB52A7"><enum>(1)</enum><header>Solar energy
property</header><text>Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a)
are each amended by striking <quote>but only with respect to periods ending
before January 1, 2009</quote>.</text>
</paragraph><paragraph id="HB204F8E3D1AB49E9890020C87DE6A0C7"><enum>(2)</enum><header>Fuel cell
property</header><text>Paragraph (1) of section 48(c) is amended by striking
subparagraph (E).</text>
</paragraph><paragraph commented="no" id="H0732D9302E184A079FC0BE14CA00F488"><enum>(3)</enum><header>Microturbine
property</header><text>Paragraph (2) of section 48(c) is amended by striking
subparagraph (E).</text>
</paragraph></subsection><subsection id="H9FDD3D7C29B4432DA9BCCA32604D479"><enum>(b)</enum><header>Allowance of
energy credit against alternative minimum tax</header><text>Subparagraph (B) of
section 38(c)(4) is amended by striking <quote>and</quote> at the end of clause
(iii), by redesignating clause (iv) as clause (v), and by inserting after
clause (iii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H5F14992CC85D482D8D237E6359CFC8B2" style="OLC">
<clause id="H035217956E1C41FA92D9243C4554CA95"><enum>(iv)</enum><text>the credit
determined under section 46 to the extent that such credit is attributable to
the energy credit determined under section 48,
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H8461F7C0CA724F5685CE6109F57D8562"><enum>(c)</enum><header>Energy credit
for combined heat and power system property</header>
<paragraph id="HB11A5B5B46AE4B348D521D40C30769FF"><enum>(1)</enum><header>In
general</header><text>Section 48(a)(3)(A) (defining energy property) is amended
by striking <quote>or</quote> at the end of clause (iii), by inserting
<quote>or</quote> at the end of clause (iv), and by adding at the end the
following new clause:</text>
<quoted-block id="HDFF84F18C09A4AD3934700BF94CA301" style="OLC">
<clause id="H7CC03FD25FE547A5B16FD17CE9C5742B"><enum>(v)</enum><text>combined heat and
power system
property,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H75D5D03D04B24A39890006AE28A01946"><enum>(2)</enum><header>Combined Heat
and Power System Property</header><text>Section 48 is amended by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H8A4CD5C056014C70BA988C83F31ED632" style="OLC">
<subsection id="H195DE045C18C438CB4EC93E02C53EA8B"><enum>(d)</enum><header>Combined Heat
and Power System Property</header><text>For purposes of subsection
(a)(3)(A)(v)—</text>
<paragraph id="H0539668781F14F75A1CB221BFD6F9FFF"><enum>(1)</enum><header>Combined heat
and power system property</header><text>The term <term>combined heat and power
system property</term> means property comprising a system—</text>
<subparagraph id="H013557BAC3A64034BDC6E7354411E082"><enum>(A)</enum><text>which uses the
same energy source for the simultaneous or sequential generation of electrical
power, mechanical shaft power, or both, in combination with the generation of
steam or other forms of useful thermal energy (including heating and cooling
applications),</text>
</subparagraph><subparagraph id="H087A978BD29141AE896E8938EA2FBE9D"><enum>(B)</enum><text>which
produces—</text>
<clause id="H686E1BF2496A464786AFE7E36A5D57"><enum>(i)</enum><text>at
least 20 percent of its total useful energy in the form of thermal energy which
is not used to produce electrical or mechanical power (or combination thereof),
and</text>
</clause><clause id="H0847D397EEBB4A6FBFDC15DB56E0123D"><enum>(ii)</enum><text>at least 20
percent of its total useful energy in the form of electrical or mechanical
power (or combination thereof), and</text>
</clause></subparagraph><subparagraph id="H099B8C0825C04DB19231835EBE388100"><enum>(C)</enum><text>the energy
efficiency percentage of which exceeds 60 percent.</text>
</subparagraph></paragraph><paragraph id="H2B869392C3A3492485F80EEF4F93197"><enum>(2)</enum><header>Limitation</header>
<subparagraph id="H3ECED8818ED54E158D564B52E8128596"><enum>(A)</enum><header>In
general</header><text>In the case of combined heat and power system property
with an electrical capacity in excess of the applicable capacity placed in
service during the taxable year, the credit under subsection (a)(1) (determined
without regard to this paragraph) for such year shall be equal to the amount
which bears the same ratio to such credit as the applicable capacity bears to
the capacity of such property.</text>
</subparagraph><subparagraph id="HC874035CE7C8430E80590985008401C6"><enum>(B)</enum><header>Applicable
capacity</header><text>For purposes of subparagraph (A), the term
<term>applicable capacity</term> means 15 megawatts or a mechanical energy
capacity of more than 20,000 horsepower or an equivalent combination of
electrical and mechanical energy capacities.</text>
</subparagraph><subparagraph id="H79BE0962C89944F38D48DE1844432E18"><enum>(C)</enum><header>Maximum
capacity</header><text>The term <term>combined heat and power system
property</term> shall not include any property comprising a system if such
system has a capacity in excess of 50 megawatts or a mechanical energy capacity
in excess of 67,000 horsepower or an equivalent combination of electrical and
mechanical energy capacities.</text>
</subparagraph></paragraph><paragraph id="H8AA9B0606CE24339899DE7AE02AA56"><enum>(3)</enum><header>Special
rules</header>
<subparagraph id="HEDAC949A5AC94EB79088A66200054E54"><enum>(A)</enum><header>Energy
efficiency percentage</header><text>For purposes of this subsection, the energy
efficiency percentage of a system is the fraction—</text>
<clause id="H91B406B81D714FF3B19720ECB5E0DAA8"><enum>(i)</enum><text>the numerator of
which is the total useful electrical, thermal, and mechanical power produced by
the system at normal operating rates, and expected to be consumed in its normal
application, and</text>
</clause><clause id="H769F6FEA31624E0D95A66678C9114B72"><enum>(ii)</enum><text>the denominator
of which is the lower heating value of the fuel sources for the system.</text>
</clause></subparagraph><subparagraph id="H66145DD3D6FF4FC2A91EE608467C9BF"><enum>(B)</enum><header>Determinations
made on btu basis</header><text>The energy efficiency percentage and the
percentages under paragraph (1)(B) shall be determined on a Btu basis.</text>
</subparagraph><subparagraph id="H40DFE94E778848C295E8FA3867635051"><enum>(C)</enum><header>Input and output
property not included</header><text>The term <term>combined heat and power
system property</term> does not include property used to transport the energy
source to the facility or to distribute energy produced by the facility.</text>
</subparagraph></paragraph><paragraph id="H2FBD9C9CB76C466EBFA130CE11DBDE6"><enum>(4)</enum><header>Systems using
biomass</header><text>If a system is designed to use biomass (within the
meaning of paragraphs (2) and (3) of section 45(c) without regard to the last
sentence of paragraph (3)(A)) for at least 90 percent of the energy
source—</text>
<subparagraph id="H9011DB268703415BA9BA489E032DF321"><enum>(A)</enum><text>paragraph (1)(C)
shall not apply, but</text>
</subparagraph><subparagraph id="H1A36CE3D68004F2F9041AEC98C3E7EAC"><enum>(B)</enum><text>the amount of
credit determined under subsection (a) with respect to such system shall not
exceed the amount which bears the same ratio to such amount of credit
(determined without regard to this paragraph) as the energy efficiency
percentage of such system bears to 60
percent.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H640471E82724466ABFB2ABC11639A5B0"><enum>(d)</enum><header>Increase of
credit limitation for fuel cell property</header><text>Subparagraph (B) of
section 48(c)(1) is amended by striking <quote>$500</quote> and inserting
<quote>$1,500</quote>.</text>
</subsection><subsection id="HB24A9E05AEC94908B1D34F7C9CECBDDA"><enum>(e)</enum><header>Public utility
property taken into account</header>
<paragraph id="HAB4A257F960A439A976D78CA78A60927"><enum>(1)</enum><header>In
general</header><text>Paragraph (3) of section 48(a) is amended by striking the
second sentence thereof.</text>
</paragraph><paragraph id="HA733A5FE828E4E10B97820A15DDD8E7D"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H3F255CE83EA14EEBB448F481C37EB03"><enum>(A)</enum><text>Paragraph (1) of
section 48(c) is amended by striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).</text>
</subparagraph><subparagraph id="H79F5077A28EE4D49B0E8FC51C3352583"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 48(c) is amended
by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph
(D).</text>
</subparagraph></paragraph></subsection><subsection id="H882D167C00474F71B87287C759F3ABF4"><enum>(f)</enum><header>Effective
date</header>
<paragraph id="HFA0B24FB326E453AB0C8A657FBD85E8F"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall take effect on the date of the enactment
of this Act.</text>
</paragraph><paragraph id="HEB8D55A24F9146DA9F61B1F6478E4E86"><enum>(2)</enum><header>Allowance
against alternative minimum tax</header><text>The amendments made by subsection
(b) shall apply to credits determined under section 46 of the Internal Revenue
Code of 1986 in taxable years beginning after the date of the enactment of this
Act and to carrybacks of such credits.</text>
</paragraph><paragraph id="H1F6C8D5248E64085829CCE00C39E00F9"><enum>(3)</enum><header>Combined heat
and power and fuel cell property</header><text>The amendments made by
subsections (c) and (d) shall apply to periods after the date of the enactment
of this Act, in taxable years ending after such date, under rules similar to
the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect
on the day before the date of the enactment of the Revenue Reconciliation Act
of 1990).</text>
</paragraph><paragraph id="H954D2E5233AF428A88F8B867CD8E9E"><enum>(4)</enum><header>
Public utility property</header><text display-inline="yes-display-inline">The
amendments made by subsection (e) shall apply to periods after February 13,
2008, in taxable years ending after such date, under rules similar to the rules
of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day
before the date of the enactment of the Revenue Reconciliation Act of
1990).</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H1E4301EA6EE4471C90A7435159076D7" section-type="subsequent-section"><enum>104.</enum><header>New clean renewable
energy bonds</header>
<subsection id="H71815181AFFA4D1F82ACF44816019B4B"><enum>(a)</enum><header>Conforming
amendments</header>
<paragraph id="H9FB2DB96578C4E29B3FC5BCE70323443"><enum>(1)</enum><text>Section 54A(d)(1)
is amended by inserting <quote>and a new clean renewable energy bond,</quote>
after <quote>qualified forestry conservation bond</quote>.</text>
</paragraph><paragraph id="HACAFA2B4B99448F9BDA8107426E02525"><enum>(2)</enum><text>Section
54A(d)(2)(C) is amended by inserting <quote>or 54C(e)</quote> after
<quote>54B(e)</quote>.</text>
</paragraph></subsection><subsection id="HCDB0DEDFEE704AD5BD49B61048001C5C"><enum>(b)</enum><header>In
general</header><text>Subpart I 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="HA2AF8780444D4ED18500B6C947BF2291" style="OLC">
<section display-inline="no-display-inline" id="HF0C52A186C3A490BB87E82ADE4A4BBAF" section-type="subsequent-section"><enum>54C.</enum><header>New clean renewable
energy bonds</header>
<subsection id="HED894D9009474A87A2F23F32D1EE8410"><enum>(a)</enum><header>New clean
renewable energy bond</header><text>For purposes of this subpart, the term
<term>new clean renewable energy bond</term> means any bond issued as part of
an issue if—</text>
<paragraph id="HED451B2BD48D441CA4002E00E94F8449"><enum>(1)</enum><text>100 percent of the
available project proceeds of such issue are to be used for a qualified clean
renewable energy purpose,</text>
</paragraph><paragraph id="HA629E5DC85DA476D8FCDE2B9E552400"><enum>(2)</enum><text>the bond is issued
by a qualified issuer, and</text>
</paragraph><paragraph id="H90C0DE4BC4DC41518CEDD8EAB742025F"><enum>(3)</enum><text>the issuer
designates such bond for purposes of this section.</text>
</paragraph></subsection><subsection id="HCC0A45C1473944A28BCDDD740014BB71"><enum>(b)</enum><header>Reduced credit
amount</header><text>The annual credit determined under section 54A(b) with
respect to any new clean renewable energy bond shall be 70 percent of the
amount so determined without regard to this subsection.</text>
</subsection><subsection display-inline="no-display-inline" id="H217E10389EEC42DB9E9798DB99FD22AD"><enum>(c)</enum><header>Limitation on
amount of bonds designated</header>
<paragraph id="H535EC9FAD4A3448A9CFFA89211BB72AD"><enum>(1)</enum><header>In
general</header><text>The maximum aggregate face amount of bonds which may be
designated under subsection (a) by any issuer shall not exceed the limitation
amount allocated under this subsection to such issuer.</text>
</paragraph><paragraph id="HF76BEFE738494D6A8987957C724B5DF0"><enum>(2)</enum><header>National
limitation on amount of bonds designated</header><text>There is a national new
clean renewable energy bond limitation of $2,000,000,000 which shall be
allocated by the Secretary as provided in paragraph (3), except that—</text>
<subparagraph id="H4D7D0E81215D4394AD66B23E00BC5DB6"><enum>(A)</enum><text>not more than
33<fraction>1/3</fraction> percent thereof may be allocated to qualified
projects of public power providers,</text>
</subparagraph><subparagraph id="H063A27BA2FBF481CAD434834B8393DE6"><enum>(B)</enum><text>not more than
33<fraction>1/3</fraction> percent thereof may be allocated to qualified
projects of governmental bodies, and</text>
</subparagraph><subparagraph id="HD9542CD6B76544809C36F2AD9E60DD7E"><enum>(C)</enum><text>not more than
33<fraction>1/3</fraction> percent thereof may be allocated to qualified
projects of cooperative electric companies.</text>
</subparagraph></paragraph><paragraph id="H7504705212EA41D9A1834DF9F00ED23"><enum>(3)</enum><header>Method of
allocation</header>
<subparagraph id="H047CF17B3A13471B00B73CB848604715"><enum>(A)</enum><header>Allocation among
public power providers</header><text>After the Secretary determines the
qualified projects of public power providers which are appropriate for
receiving an allocation of the national new clean renewable energy bond
limitation, the Secretary shall, to the maximum extent practicable, make
allocations among such projects in such manner that the amount allocated to
each such project bears the same ratio to the cost of such project as the
limitation under paragraph (2)(A) bears to the cost of all such
projects.</text>
</subparagraph><subparagraph id="HB55C11EF1C2649CFA390B39615D29BED"><enum>(B)</enum><header>Allocation among
governmental bodies and cooperative electric companies</header><text>The
Secretary shall make allocations of the amount of the national new clean
renewable energy bond limitation described in paragraphs (2)(B) and (2)(C)
among qualified projects of governmental bodies and cooperative electric
companies, respectively, in such manner as the Secretary determines
appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H9989BC8B53854C46004B928D1C797DAE"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="H592AAC8EA199496282CCC3680D6C9AC"><enum>(1)</enum><header>Qualified
renewable energy facility</header><text>The term <term>qualified renewable
energy facility</term> means a qualified facility (as determined under section
45(d) without regard to paragraphs (8) and (10) thereof and to any placed in
service date) owned by a public power provider, a governmental body, or a
cooperative electric company.</text>
</paragraph><paragraph id="HFD84F640CE2A4A50B5C87960FAC35838"><enum>(2)</enum><header>Public power
provider</header><text display-inline="yes-display-inline">The term
<term>public power provider</term> means a State utility with a service
obligation, as such terms are defined in section 217 of the Federal Power Act
(as in effect on the date of the enactment of this paragraph).</text>
</paragraph><paragraph display-inline="no-display-inline" id="H217DF39AA90F4B3C86E77739C5D91503"><enum>(3)</enum><header>Governmental
body</header><text>The term <term>governmental body</term> means any State or
Indian tribal government, or any political subdivision thereof.</text>
</paragraph><paragraph id="HEA0F1EB1A4DF4177BF07085E0026E531"><enum>(4)</enum><header>Cooperative
electric company</header><text display-inline="yes-display-inline">The term
<term>cooperative electric company</term> means a mutual or cooperative
electric company described in section 501(c)(12) or section
1381(a)(2)(C).</text>
</paragraph><paragraph id="H281066FF5FD34231B38FF77ECECECCFC"><enum>(5)</enum><header>Clean renewable
energy bond lender</header><text display-inline="yes-display-inline">The term
<term>clean renewable energy bond lender</term> means a lender which is a
cooperative which is owned by, or has outstanding loans to, 100 or more
cooperative electric companies and is in existence on February 1, 2002, and
shall include any affiliated entity which is controlled by such lender.</text>
</paragraph><paragraph id="H82F31AE18F094CF3BF8032F7A1694F3F"><enum>(6)</enum><header>Qualified
issuer</header><text display-inline="yes-display-inline">The term
<term>qualified issuer</term> means a public power provider, a cooperative
electric company, a governmental body, a clean renewable energy bond lender, or
a not-for-profit electric utility which has received a loan or loan guarantee
under the Rural Electrification Act.</text>
</paragraph></subsection><subsection id="H077AFF674B864F73003C6D75D4D48542"><enum>(e)</enum><header>Qualified clean
renewable energy purpose</header><text display-inline="yes-display-inline">For
purposes of this section, the term <term>qualified clean renewable energy
purpose</term> means capital expenditures incurred by public power providers or
cooperative electric companies for one or more qualified renewable energy
facilities.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0EDC5C768F8F4DF8949978E9650275BF"><enum>(c)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of
sections for subpart I of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H0B9C763609C548128D564DA3245F1F00" style="OLC">
<toc container-level="quoted-block-container" idref="HA2AF8780444D4ED18500B6C947BF2291" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HF0C52A186C3A490BB87E82ADE4A4BBAF" level="section">Sec. 54C. New clean renewable energy
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H953DB0DD8FCE4E91B4201C5B8814E218"><enum>(d)</enum><header>Application of
certain labor standards on projects financed under tax credit
bonds</header><text display-inline="yes-display-inline">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, shall apply to projects financed
with the proceeds of any new clean renewable energy bonds (as defined in
<external-xref legal-doc="usc" parsable-cite="usc/26/54C">section 54C</external-xref> of the Internal Revenue Code of 1986).</text>
</subsection><subsection id="H993A73F51C1D427C81A8E31DB6969421"><enum>(e)</enum><header>Effective
dates</header><text>The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="HAF633EC6BD4D4F86BFD83375E6C7000" section-type="subsequent-section"><enum>105.</enum><header>Advanced Nuclear
Power Production</header>
<subsection id="HD7E5D6E2F1D646029B86B1196FDF9FE9"><enum>(a)</enum><header>Increase in
rate</header><text>Section 45J(a)(1) is amended by striking <quote>1.8
cents</quote> and inserting <quote>2.25 cents</quote>.</text>
</subsection><subsection id="HF5322568AF094116B3C3CB7B9F006C57"><enum>(b)</enum><header>Increase in
national limitation</header><text>Section 45J(b)(2) is amended by striking
<quote>6,000 megawatts</quote> and inserting <quote>12,000
megawatts</quote>.</text>
</subsection><subsection id="HC70FCFD582B744DEAAFA8E9011F96B88"><enum>(c)</enum><header>Increase in
annual limitation</header><text display-inline="yes-display-inline">Section
45J(c)(1) is amended by striking <quote>$125,000,000</quote> and inserting
<quote>$160,000,000</quote>.</text>
</subsection><subsection id="HC7DE9DFE15024F8D99E7A1FEB7725F3"><enum>(d)</enum><header>Extension of
placed in service date</header><text>Section 45J(d)(1)(B) is amended by
striking <quote>and before January 1, 2021</quote>.</text>
</subsection><subsection id="HE1C2A3C05F224BC698D67305F200889B"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" id="HAD25B4C146DF4690A468B649D0AEA302"><enum>106.</enum><header>Loan guarantees
for construction of advanced nuclear facilities</header><text display-inline="no-display-inline">Section 1702(c) of the Energy Policy Act of
2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512(c)</external-xref>) is amended by inserting <quote>, except that 100
percent of the project cost may be guaranteed in the case of an advanced
nuclear energy facility</quote> after <quote>guarantee is
issued</quote>.</text>
</section><enum>II</enum><header>Improving Energy
Efficiency</header>
<section id="H168E6A63254F48BA991DD8503D9B4EFF"><enum>201.</enum><header>Make permanent
the tax credit for residential energy-efficient property</header><text display-inline="no-display-inline">Section 25D is amended by striking
subsection (g).</text>
</section><section id="HAAA3424CD0154ECF00A28B2B99FACFD"><enum>202.</enum><header>Make permanent
the energy efficiency credit for existing homes</header><text display-inline="no-display-inline">Section 25C is amended by striking
subsection (g).</text>
</section><section id="HAF2E5A4BF38443DDA2BD7E60DCE76EF2"><enum>203.</enum><header>Make permanent
the energy efficiency commercial buildings deduction</header><text display-inline="no-display-inline">Section 179D is amended by striking
subsection (h).</text>
</section><section id="H30F388FF17B4463D804FD729545B583"><enum>204.</enum><header>Make permanent
the credit for production of energy-efficient appliances</header>
<subsection id="H237B9D19F6C142138605BF689B29FDFC"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) of
section 45M(b) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HAE581B7E5DED4BFF977E7CBCB3529BF4" style="OLC">
<paragraph id="HDD58A021D4D74D50AA00B3F857C676F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
subsection (a), the applicable amount in the case of dishwashers, clothes
washers, and refrigerators (as the case may be) which meet the requirements of
the Energy Star program in effect for the calendar year in which such appliance
is manufactured is—</text>
<subparagraph id="HD36FD5A989CA4097A328ADB7F1452132"><enum>(A)</enum><text>in the case of
dishwashers, the energy savings amount,</text>
</subparagraph><subparagraph id="H992978E9E8554CB794595701DA18B646"><enum>(B)</enum><text>in the case of
clothes washers, $100, and</text>
</subparagraph><subparagraph id="H239FB4BAB7494A6B98997FD93D94D69D"><enum>(C)</enum><text>in the case of
refrigerators—</text>
<clause id="H7485F01CF33E450888D508990012146C"><enum>(i)</enum><text>which consume at
least 15 percent but not more than 20 percent less kilowatt hours per year than
the 2001 energy conservation standards, $75,</text>
</clause><clause id="HD575EB5545BC4DD49F5BFE00002B603C"><enum>(ii)</enum><text>which consumes at
least 20 percent but not more than 25 percent less kilowatt hours per year than
the 2001 energy conservation standards, $125, and</text>
</clause><clause id="HB8FF727B638C4957A3BF3BAEF9B52148"><enum>(iii)</enum><text>which consumes
at least 25 percent less kilowatt hours per year than the 2001 energy
conservation standards,
$175.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7D4E3DEEEC3C4BE7BD6BA46CA42800F"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section applies to taxable years
beginning after December 31, 2007.</text>
</subsection></section><enum>III</enum><header>Enhancing
Production and Deployment of Alternative Vehicles and Fuels</header>
<section commented="no" id="H0C602278230849A0A8399E3CD600017E"><enum>301.</enum><header>Consumer
incentives to purchase advanced technology vehicles</header>
<subsection commented="no" id="H531A324A3F2446D6872BACDA92B728CC"><enum>(a)</enum><header> New Qualified
Hybrid Motor Vehicles</header>
<paragraph id="H973555F7BFE243B1ACF6C2E78D7D4DBB"><enum>(1)</enum><header>Extension of
Alternative Vehicle Credit</header><text>Subsection (i) of section 30B of the
Internal Revenue Code of 1986, as amended by subsection (b), is amended by
striking paragraph (3).</text>
</paragraph><paragraph id="HA32B6EAC2FD94F75B6A4A4337F207FFC"><enum>(2)</enum><header>Increase in
credit amount</header><text>Subparagraph (A) of section 30B(d)(2) of such Code
is amended by striking <quote>the sum of</quote> and inserting <quote>150
percent of the sum of</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H9DC0DDDE190E4E478082D37027EE64F7"><enum>(b)</enum><header>Elimination on
Number of New Qualified Hybrid and Advanced Lean Burn Technology Vehicles
Eligible for Alternative Motor Vehicle Credit</header>
<paragraph commented="no" id="HD11F39195C4C4E1CBE67FA83F2CF190"><enum>(1)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B</external-xref> of the Internal Revenue Code of 1986 is
amended by striking subsection (f) and by redesignating subsections (g) through
(j) as subsections (f) through (i), respectively.</text>
</paragraph><paragraph commented="no" id="HF8A11128323E4B4BA1859ED6C15859F"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="H7CA408E6EDE540438EF67544AC6B744E"><enum>(A)</enum><text>Paragraphs (4) and
(6) of <external-xref legal-doc="usc" parsable-cite="usc/26/30B">section 30B(h)</external-xref> of the Internal Revenue Code of 1986 are each amended by
striking <quote>(determined without regard to subsection (g))</quote> and
inserting <quote>determined without regard to subsection (f))</quote>.</text>
</subparagraph><subparagraph commented="no" id="H2E9466E04BD94718AF5BB9D200DFB4FA"><enum>(B)</enum><text>Section 38(b)(25)
of such Code is amended by striking <quote>section 30B(g)(1)</quote> and
inserting <quote>section 30B(f)(1)</quote>.</text>
</subparagraph><subparagraph commented="no" id="H27A2B53DFE6C470F92B06E57CE29E176"><enum>(C)</enum><text>Section 55(c)(2)
of such Code is amended by striking <quote>section 30B(g)(2)</quote> and
inserting <quote>section 30B(f)(2)</quote>.</text>
</subparagraph><subparagraph commented="no" id="H4E67A79013B24B78A6D5359125DD033F"><enum>(D)</enum><text>Section
1016(a)(36) of such Code is amended by striking <quote>section
30B(h)(4)</quote> and inserting <quote>section 30B(g)(4)</quote>.</text>
</subparagraph><subparagraph commented="no" id="H665158D813BE457AAF61C9D2AE8F4712"><enum>(E)</enum><text>Section 6501(m) of
such Code is amended by striking <quote>section 30B(h)(9)</quote> and inserting
<quote>section 30B(g)(9)</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H6CE5224FDBA4467F9DDDB795BB002EF9"><enum>(c)</enum><header>Credit for new
qualified plug-in electric drive motor vehicles</header>
<paragraph commented="no" id="HF3F783024F634A59A99C292F5BB45645"><enum>(1)</enum><header>In
general</header><text>Subpart B 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="HAD95E71F738C44D594D53441E25532D7" style="OLC">
<section commented="no" id="H355C24A325654FD393AE09AC4E819324"><enum>30D.</enum><header>New qualified
plug-in electric drive motor vehicles</header>
<subsection commented="no" id="H5BB46412F1AA48CB0098AEDC507EBF00"><enum>(a)</enum><header>Allowance of
Credit</header><text>There shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to the sum of the credit
amounts determined under subsection (b) with respect to each new qualified
plug-in electric drive motor vehicle placed in service by the taxpayer during
the taxable year.</text>
</subsection><subsection commented="no" id="HA83E7B0917BD4AB6B5AAF9AEAC6BE1A"><enum>(b)</enum><header>Per Vehicle
Dollar Limitation</header>
<paragraph commented="no" id="HB96D017D938B400D8584C442557B475F"><enum>(1)</enum><header>In
general</header><text>The amount determined under this subsection with respect
to any new qualified plug-in electric drive motor vehicle is the sum of the
amounts determined under paragraphs (2) and (3) with respect to such
vehicle.</text>
</paragraph><paragraph commented="no" id="H64896B2AC31C4456A9A5192C57D16DC9"><enum>(2)</enum><header>Base
amount</header><text>The amount determined under this paragraph is
$3,000.</text>
</paragraph><paragraph commented="no" id="H0EA372900D3448E9AF9371A21527DC3C"><enum>(3)</enum><header>Battery
capacity</header><text>In the case of a vehicle which draws propulsion energy
from a battery with not less than 5 kilowatt hours of capacity, the amount
determined under this paragraph is $200, plus $400 for each kilowatt hour of
capacity in excess of 5 kilowatt hours. The amount determined under this
paragraph shall not exceed $4,000.</text>
</paragraph></subsection><subsection commented="no" id="H29751B5E97914CBF9E3071DC1F2ED63C"><enum>(c)</enum><header>Application With
Other Credits</header>
<paragraph commented="no" id="HEF7596222C704DAEAE001621C9FBFEA"><enum>(1)</enum><header>Business credit
treated as part of general business credit</header><text>So much of the credit
which would be allowed under subsection (a) for any taxable year (determined
without regard to this subsection) that is attributable to property of a
character subject to an allowance for depreciation shall be treated as a credit
listed in section 38(b) for such taxable year (and not allowed under subsection
(a)).</text>
</paragraph><paragraph commented="no" id="H944E3A106EDB4F95A500447890411ECF"><enum>(2)</enum><header>Personal
credit</header>
<subparagraph commented="no" id="H587098BB521F496383F575E5511B00C8"><enum>(A)</enum><header>In
general</header><text>For purposes of this title, the credit allowed under
subsection (a) for any taxable year (determined after application of paragraph
(1)) shall be treated as a credit allowable under subpart A for such taxable
year.</text>
</subparagraph><subparagraph commented="no" id="HD0DAE8D5344B4655883F6E55659C1974"><enum>(B)</enum><header>Limitation based
on amount of tax</header><text>In the case of a taxable year to which section
26(a)(2) does not apply, the credit allowed under subsection (a) for any
taxable year (determined after application of paragraph (1)) shall not exceed
the excess of—</text>
<clause commented="no" id="HB98376AFDEB14CF785FFD60056809469"><enum>(i)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</clause><clause commented="no" id="HF7EB1D7E2CDF44BE8FA0B91EBBCC6CF8"><enum>(ii)</enum><text>the sum of the
credits allowable under subpart A (other than this section and sections 23 and
25D) and section 27 for the taxable year.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" id="H3F2F536445804DB8A86C9265FF6C9E04"><enum>(d)</enum><header>New Qualified
Plug-In Electric Drive Motor Vehicle</header><text>For purposes of this
section—</text>
<paragraph commented="no" id="HEBBD33D474D5401AA6422019121E7404"><enum>(1)</enum><header>In
general</header><text>The term <term>new qualified plug-in electric drive motor
vehicle</term> means a motor vehicle (as defined in section 30(c)(2))—</text>
<subparagraph commented="no" id="H4E3BE1A552D14C68844407D63EED7A9"><enum>(A)</enum><text>the original use of
which commences with the taxpayer,</text>
</subparagraph><subparagraph commented="no" id="H5C2E34C90990460AABFE9E83A06618EE"><enum>(B)</enum><text>which is acquired
for use or lease by the taxpayer and not for resale,</text>
</subparagraph><subparagraph commented="no" id="H046811C717244502AC2015887F78A657"><enum>(C)</enum><text>which is made by a
manufacturer, and</text>
</subparagraph><subparagraph commented="no" id="HA35129E8860947CEADACE6651FCF5379"><enum>(D)</enum><text>which is propelled
to a significant extent by an electric motor which draws electricity from a
battery which—</text>
<clause commented="no" id="H7057AE76C9C448518CBDF73BC91BA01F"><enum>(i)</enum><text>has a capacity of
not less than 2.5 kilowatt hours, and</text>
</clause><clause commented="no" id="H7FF431CDFF9E4ACEBAA598774B31E8C5"><enum>(ii)</enum><text>is capable of
being recharged from an external source of electricity.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="HB856742BAD464EFA8BF43410A7105E1"><enum>(2)</enum><header>Exception</header><text>The
term <term>new qualified plug-in electric drive motor vehicle</term> is limited
to vehicles meeting relevant Federal safety and emissions standards for on-road
use.</text>
</paragraph><paragraph commented="no" id="H80007334177546B2A314DFBF4BF707C6"><enum>(3)</enum><header>Other
terms</header><text>The terms <term>passenger automobile</term>, <term>light
truck</term>, and <term>manufacturer</term> have the meanings given such terms
in regulations prescribed by the Administrator of the Environmental Protection
Agency for purposes of the administration of title II of the Clean Air Act (42
U.S.C. 7521 et seq.).</text>
</paragraph><paragraph commented="no" id="H353AEB4126CC4D4F97BE10E5AFB6361C"><enum>(4)</enum><header>Battery
capacity</header><text>The term <term>capacity</term> means, with respect to
any battery, the quantity of electricity which the battery is capable of
storing, expressed in kilowatt hours, as measured from a 100 percent state of
charge to a 0 percent state of charge.</text>
</paragraph></subsection><subsection commented="no" id="H2899B556226541D19B496919B1939530"><enum>(e)</enum><header>Special
Rules</header>
<paragraph commented="no" id="HCFF2741FCF044747B915E9BE65751776"><enum>(1)</enum><header>Basis
reduction</header><text>The basis of any property for which a credit is
allowable under subsection (a) shall be reduced by the amount of such credit
(determined without regard to subsection (c)).</text>
</paragraph><paragraph commented="no" id="HF291EDB548EB4EDF939B55B5478350CE"><enum>(2)</enum><header>Recapture</header><text>The
Secretary shall, by regulations, provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any property which ceases
to be property eligible for such credit.</text>
</paragraph><paragraph commented="no" id="H734253316DD74877B1F087C5D39ED513"><enum>(3)</enum><header>Property used
outside united states, etc., not qualified</header><text>No credit shall be
allowed under subsection (a) with respect to any property referred to in
section 50(b)(1) or with respect to the portion of the cost of any property
taken into account under section 179.</text>
</paragraph><paragraph commented="no" id="H265557E4C27A4F43B9EBC618412C57DA"><enum>(4)</enum><header>Election not To
take credit</header><text>No credit shall be allowed under subsection (a) for
any vehicle if the taxpayer elects to not have this section apply to such
vehicle.</text>
</paragraph><paragraph commented="no" id="H119D7F79661E48E4B26C98D8A9B70022"><enum>(5)</enum><header>Property used by
tax-exempt entity; interaction with air quality and motor vehicle safety
standards</header><text>Rules similar to the rules of paragraphs (6) and (10)
of section 30B(h) shall apply for purposes of this
section.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H461F910D4A0D4376B814BCD6B00032F"><enum>(2)</enum><header>Coordination with
alternative motor vehicle credit</header><text>Section 30B(d)(3) is amended by
adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HBD0167217F7747DEB829E83D8100C588" style="OLC">
<subparagraph commented="no" id="HEDE781F12A074100B9D6C85E766F391B"><enum>(D)</enum><header>Exclusion of
plug-in vehicles</header><text display-inline="yes-display-inline">Any vehicle
with respect to which a credit is allowable under section 30D (determined
without regard to subsection (c) thereof) shall not be taken into account under
this
section.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H3D3ACC16C8904F2696DC40B689C8C98"><enum>(3)</enum><header>Credit Made Part
of General Business Credit</header><text>Section 38(b) is amended—</text>
<subparagraph commented="no" id="H611D5141BA7348F08C73C3B8033BD2D4"><enum>(A)</enum><text>by striking
<quote>and</quote> each place it appears at the end of any paragraph,</text>
</subparagraph><subparagraph commented="no" id="HF69D340AB06A4C839370ADE500E9BB2"><enum>(B)</enum><text>by striking
<quote>plus</quote> each place it appears at the end of any paragraph,</text>
</subparagraph><subparagraph commented="no" id="HA73345E245FD439D871719A7DD7EEE5"><enum>(C)</enum><text>by striking the
period at the end of paragraph (31) and inserting <quote>, plus</quote>,
and</text>
</subparagraph><subparagraph commented="no" id="H97E2CA25B63245538C43BEF7217E5617"><enum>(D)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H8AAA14A5D50045F19271BADE67AC20D0" style="OLC">
<paragraph commented="no" id="H67DDF5A6F2A445209CAE9D3F83007034"><enum>(32)</enum><text display-inline="yes-display-inline">the portion of the new qualified plug-in
electric drive motor vehicle credit to which section 30D(c)(1)
applies.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="H2AC3158BEE814154A4601355A8963972"><enum>(4)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="H0906449A4FAC4826967D00991279344F"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H85A8B2E0B5A44D469CA7D1AB46776910"><enum>(i)</enum><text>Section 24(b)(3)(B), as
amended by section 104, is amended by striking <quote>and 25D</quote> and
inserting <quote>25D, and 30D</quote>.</text>
</clause><clause commented="no" id="H2693CEAA52734AFFBEEE80E99F91524F" indent="up1"><enum>(ii)</enum><text>Section 25(e)(1)(C)(ii) is amended
by inserting <quote>30D,</quote> after <quote>25D,</quote>.</text>
</clause><clause commented="no" id="HAD3EC0AB55904A7891B856FF87CBD52" indent="up1"><enum>(iii)</enum><text>Section 25B(g)(2), as amended by
section 104, is amended by striking <quote>and 25D</quote> and inserting
<quote>, 25D, and 30D</quote>.</text>
</clause><clause commented="no" id="HAE314233ABE242DE80C509B21121CAED" indent="up1"><enum>(iv)</enum><text>Section 26(a)(1), as amended by
section 104, is amended by striking <quote>and 25D</quote> and inserting
<quote>25D, and 30D</quote>.</text>
</clause><clause commented="no" id="H53D289B3624B47F9B90043F553FE4E5" indent="up1"><enum>(v)</enum><text>Section 1400C(d)(2) is amended by
striking <quote>and 25D</quote> and inserting <quote>25D, and
30D</quote>.</text>
</clause></subparagraph><subparagraph commented="no" id="HC394F33F33BF459BAB003162CA356E00"><enum>(B)</enum><text>Section 1016(a) is
amended by striking <quote>and</quote> at the end of paragraph (35), by
striking the period at the end of paragraph (36) and inserting <quote>,
and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H8745BB286F00469C81B9534107776D89" style="OLC">
<paragraph commented="no" id="H88A92127BE574A6AA7BB6B38D1A8A84C"><enum>(37)</enum><text display-inline="yes-display-inline">to the extent provided in section
30D(e)(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="H017138432BFF461595BA357180B50D0"><enum>(C)</enum><text>Section 6501(m) is
amended by inserting <quote>30D(f)(4),</quote> after
<quote>30C(e)(5),</quote>.</text>
</subparagraph><subparagraph commented="no" id="HFAA01271B85D45CCAF80881BF369581F"><enum>(D)</enum><text>The table of
sections for subpart B of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H88F2842D71184665B2DEBD007E8BE0B8" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 30D. New qualified plug-in electric
drive motor
vehicles.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="H0FF4FF78DCB64B3BB38921BB2A876E8"><enum>(5)</enum><header>Treatment of
alternative motor vehicle credit as a personal credit</header>
<subparagraph commented="no" id="H16870D2463304AF2A5C51992F100700"><enum>(A)</enum><header>In
general</header><text>Paragraph (2) of section 30B(g) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HAC52E28F05534FD7B8D72995EED48C1" style="OLC">
<paragraph commented="no" id="HC0AA385226E0455EA3A72C5CBB81ED93"><enum>(2)</enum><header>Personal
credit</header><text display-inline="yes-display-inline">The credit allowed
under subsection (a) for any taxable year (after application of paragraph (1))
shall be treated as a credit allowable under subpart A for such taxable
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="H0746F2F714734653B7ADA2985E5F01FF"><enum>(B)</enum><header>Conforming
amendments</header>
<clause commented="no" id="H443E801F484A477199EF19A805184678"><enum>(i)</enum><text display-inline="yes-display-inline">Subparagraph (A) of section 30C(d)(2) is
amended by striking <quote>sections 27, 30, and 30B</quote> and inserting
<quote>sections 27 and 30</quote>.</text>
</clause><clause commented="no" id="HB185A18B9F77420A00BE2BAB4EB8502B"><enum>(ii)</enum><text>Paragraph (3) of
section 55(c) is amended by striking <quote>30B(g)(2),</quote>.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H336F7B9DCE504055A000308C96F80006"><enum>(6)</enum><header>Effective
date</header>
<subparagraph commented="no" id="HA8D63C2B42C540EEBAB2D68E9D205E75"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as otherwise
provided in this subsection, the amendments made by this section shall apply to
taxable years beginning after December 31, 2008.</text>
</subparagraph><subparagraph commented="no" id="H20705F5BFEC046E19DD85E1CB3FAE97D"><enum>(B)</enum><header>Treatment of
alternative motor vehicle credit as personal credit</header><text>The
amendments made by paragraph (5) shall apply to taxable years beginning after
December 31, 2007.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H7E430DD6BFAD42B08C8FE1C64049F018"><enum>(d)</enum><header>Flexible fuel
vehicle credit</header>
<paragraph commented="no" id="HB010224DFC8F438B8DAEE4BB1642F45C"><enum>(1)</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.), as
amended by this Act, is amended by adding at the end the following new
section:</text>
<quoted-block id="H5EFD7CF33D59426292D0B267A4FF8EF9" style="OLC">
<section commented="no" id="H887D75C6725E4EACB59EA17DCB9EE5A9"><enum>30E.</enum><header>Flexible fuel
vehicle credit</header>
<subsection commented="no" id="HFBEA505F932541779B38BFC82D86762E"><enum>(a)</enum><header>Allowance of
Credit</header><text>There shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to the GEM flexible fuel
vehicle credit.</text>
</subsection><subsection commented="no" id="H46FCBA7C962848519433EDC4889ED919"><enum>(b)</enum><header>GEM Flexible
Fuel Vehicle Credit</header>
<paragraph commented="no" id="H689B91889DBF46EFBBC4973DE7006558"><enum>(1)</enum><header>In
general</header><text>For the purposes of subsection (a), the GEM flexible fuel
vehicle credit determined under this subsection for the taxable year is the
credit amount determined under paragraph (2) with respect to a GEM flexible
fuel vehicle placed in service by the taxpayer during the taxable year.</text>
</paragraph><paragraph commented="no" id="HAFB51DB9EDB249E6933CF421DB5611BF"><enum>(2)</enum><header>Credit
amount</header><text>In the case of a new qualified GEM flexible fuel vehicle
which is a passenger automobile or light truck and which has a gross vehicle
weight rating of not more than 8,500 pounds, the amount shall be $1,000.</text>
</paragraph></subsection><subsection commented="no" id="HBA0DB3D8C7C04B9D8DE67299DA009713"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph commented="no" id="H855D31C944BD4A8A9268FFA6E8F7C1B7"><enum>(1)</enum><header>Gem flexible
fuel vehicle</header><text>The term <term>GEM flexible fuel vehicle</term>
means a motor vehicle warrantied by its manufacturer to operate on any
combination of gasoline, E85, M85, biodiesel, and hydrogen and its
blends.</text>
</paragraph><paragraph commented="no" id="HDA305D4BCED74E588158826F00EC85A6"><enum>(2)</enum><header>E<enum-in-header>85</enum-in-header></header><text>The
term <term>E85</term> means a fuel blend containing 85 percent ethanol and 15
percent gasoline by volume.</text>
</paragraph><paragraph commented="no" id="H493C651576B148D5B56E4118B9D614CC"><enum>(3)</enum><header>M<enum-in-header>85</enum-in-header></header><text>The
term <term>M85</term> means a fuel blend containing 85 percent methanol and 15
percent gasoline by
volume.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H0F8A42A304AF405B9500E08151FF0300"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections for subpart B of part IV of
subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to
foreign tax credit, etc.), is amended by adding at the end the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="H662C13413A0C42A58776C2ADFFF1D389" style="OLC">
<toc container-level="quoted-block-container" idref="H5EFD7CF33D59426292D0B267A4FF8EF9" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H887D75C6725E4EACB59EA17DCB9EE5A9" level="section">Sec. 30E. Flexible fuel vehicle
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="HB9E440AB10E34536AD4542195945DF45"><enum>(e)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply to property
placed in service after December 31, 2006, in taxable years ending after such
date.</text>
</subsection></section><section id="H9B7B1A32E3A94F9FA4660815C187BA9F"><enum>302.</enum><header>Advanced
technology motor vehicles manufacturing credit</header>
<subsection id="H778586B063824B7C81D2EAF7B770978"><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="H1BE0BBEB91D9452AABDF7B70FB6FF067" style="OLC">
<section id="H127E6557928547899DA424B2C5C509DB"><enum>30F.</enum><header>Advanced
technology motor vehicles manufacturing credit</header>
<subsection id="H54B8E691FD6B43A0A882DB45711396A7"><enum>(a)</enum><header>Credit
Allowed</header><text display-inline="yes-display-inline">There shall be
allowed as a credit against the tax imposed by this chapter for the taxable
year an amount equal to the sum of—</text>
<paragraph id="H29CDBA31D8AC45CFB06BC527CBB2A1E7"><enum>(1)</enum><text>in the case of a
qualified investment of an eligible taxpayer for such taxable year relating to
new qualified plug-in electric drive motor vehicles, hybrid and clean burning
vehicles, GEM flexible fuel vehicles, and fuel cell vehicles, 50 percent of so
much of such qualified investment as does not exceed $150,000,000, and</text>
</paragraph><paragraph id="HBE0EBD18943643D89C00C003758FA5F"><enum>(2)</enum><text>in the case of any
other qualified investment of an eligible taxpayer for such taxable year, 35
percent of so much of such qualified investment as does not exceed
$50,000,000.</text>
</paragraph></subsection><subsection id="H918BE0C281D54F058B3DA3B7B3EF277"><enum>(b)</enum><header>Qualified
Investment</header><text>For purposes of this section—</text>
<paragraph id="H7B7E1CF439B84ED6AA8FD86C7B230550"><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="H4C9C6A0ACF614DE2AA4BCE466E36A601"><enum>(A)</enum><text>to re-equip,
expand, or establish any manufacturing facility of the eligible taxpayer to
produce advanced technology motor vehicles or to produce eligible
components,</text>
</subparagraph><subparagraph id="H46FE434633A94F38993BAC66AA52DB8F"><enum>(B)</enum><text>for engineering
integration of such vehicles and components as described in subsection (d),
and</text>
</subparagraph><subparagraph id="H25681583C7F048FF8DF5EB365EB5A340"><enum>(C)</enum><text>for research and
development related to advanced technology motor vehicles and eligible
components.</text>
</subparagraph></paragraph><paragraph id="H5FB214DB7C844E3AAF12072913A2B3CE"><enum>(2)</enum><header>Attribution
rules</header><text>In the event a facility of the eligible taxpayer produces
both advanced technology motor vehicles and conventional motor vehicles, or
eligible and non-eligible components, only the qualified investment
attributable to production of advanced technology motor vehicles and eligible
components shall be taken into account.</text>
</paragraph></subsection><subsection id="H998FC0A04D074AC2903231F5BFA304B6"><enum>(c)</enum><header>Advanced
Technology Motor Vehicles and Eligible Components</header><text>For purposes of
this section—</text>
<paragraph id="H9A0534852A9949029FD3B9316337F966"><enum>(1)</enum><header>Advanced
technology motor vehicle</header><text>The term <term>advanced technology motor
vehicle</term> means—</text>
<subparagraph id="HD4C9C08AB24A429F942DEE84F4D187BE"><enum>(A)</enum><text>any new advanced
lean burn technology motor vehicle (as defined in section 30B(c)(3)),</text>
</subparagraph><subparagraph id="HD2D7E4E29F1D44798CB5B5C93811ADD7"><enum>(B)</enum><text>any new qualified
hybrid motor vehicle (as defined in section 30B(d)(3)(A) and determined without
regard to any gross vehicle weight rating),</text>
</subparagraph><subparagraph id="HB46CBC6A8FF143BFAD7393FB069DE7BD"><enum>(C)</enum><text display-inline="yes-display-inline">any new qualified plug-in electric drive
motor vehicle (as defined in section 30D),</text>
</subparagraph><subparagraph id="H82839B6010894D2F9DC11027369F019D"><enum>(D)</enum><text>any new GEM
flexible fuel vehicle, or</text>
</subparagraph><subparagraph id="H2CE13A0606A94D4AAD59DCEB53C6DC99"><enum>(E)</enum><text>any new fuel cell
vehicle.</text>
</subparagraph></paragraph><paragraph id="H49949A849DCC44799520780001CD1D77"><enum>(2)</enum><header>New fuel cell
vehicle</header><text>For purposes of this section, the term <term>new fuel
cell vehicle</term> means an on-road or nonroad vehicle that utilizes a fuel
cell for propulsion or in combination with an on-board battery system (as
defined in section 803 of the Energy Policy Act of 2005 (42 U.S.C.
16152)).</text>
</paragraph><paragraph id="H8A184CD479634C65B831F9D5D2A8501B"><enum>(3)</enum><header>Eligible
components</header><text>The term <term>eligible component</term> means any
component inherent to any advanced technology motor vehicle, including—</text>
<subparagraph id="H5FE1817C266D4446813C383B3136E784"><enum>(A)</enum><text>with respect to
any gasoline or diesel-electric new qualified hybrid motor vehicle—</text>
<clause id="H08C7B22EF6F94A6AA05B527BB3984680"><enum>(i)</enum><text>electric motor or
generator,</text>
</clause><clause id="H6D747AF047174DA9A8048735B6529EB4"><enum>(ii)</enum><text>power split
device,</text>
</clause><clause id="H23FD50BD82F441819EA200A6EC19F1DA"><enum>(iii)</enum><text>power control
unit,</text>
</clause><clause id="HE7A5DF96900D4671887EF74D9270AC09"><enum>(iv)</enum><text>power
controls,</text>
</clause><clause id="HA5CC1A1EBF5745049EFEBD11E679D06"><enum>(v)</enum><text>integrated starter
generator, or</text>
</clause><clause id="H9418F0CDEF6D4CFA004807D7C6B92F16"><enum>(vi)</enum><text>battery,</text>
</clause></subparagraph><subparagraph id="HA1AA6A508A034F33A439C0F3E700E88D"><enum>(B)</enum><text>with respect to
any hydraulic new qualified hybrid motor vehicle—</text>
<clause id="HD3F45DD7C58846EA928F01D9DEE64997"><enum>(i)</enum><text>hydraulic
accumulator vessel,</text>
</clause><clause id="H44607C93B90A4067A85778B5689D8EFB"><enum>(ii)</enum><text>hydraulic pump,
or</text>
</clause><clause id="H61E593D73966466386EA1C4D006B9BEE"><enum>(iii)</enum><text>hydraulic
pump-motor assembly,</text>
</clause></subparagraph><subparagraph id="HB69A45376F3441B7B08C746F7464A054"><enum>(C)</enum><text>with respect to
any new advanced lean burn technology motor vehicle—</text>
<clause id="H643F514EA36D408788E87E33F4D811BE"><enum>(i)</enum><text>diesel
engine,</text>
</clause><clause id="H991C6ADA96C84D45BC51980092DC5835"><enum>(ii)</enum><text>turbocharger,</text>
</clause><clause id="H6EAB85FEC4AC476E90143782BCE22501"><enum>(iii)</enum><text>fuel injection
system, or</text>
</clause><clause id="HA90AFAFB4BE140388200F6BFA4C01416"><enum>(iv)</enum><text>after-treatment
system, such as a particle filter or NOx absorber,</text>
</clause></subparagraph><subparagraph id="HB1BDA4FA0185448AAF62A676ED508430"><enum>(D)</enum><text>with respect to
any new qualified plug-in electric drive motor vehicle—</text>
<clause id="HA473176086A94E93AD1E499FA4C9EA63"><enum>(i)</enum><text>battery,</text>
</clause><clause id="H881F11A50ACA45B09F2265AC732763B1"><enum>(ii)</enum><text>electric motor or
generator,</text>
</clause><clause id="H453732D4DF3942BEA28700A2D5B27641"><enum>(iii)</enum><text>any power
control unit which is designed specifically for use in a new qualified plug-in
electric drive motor vehicle, and</text>
</clause></subparagraph><subparagraph id="H2B591953DA974589B879ACE6AC1FEBFA"><enum>(E)</enum><text>with respect to
any advanced technology motor vehicle, any other component submitted for
approval by the Secretary.</text>
</subparagraph></paragraph></subsection><subsection id="H6478464C9BF54E5EBCEC22D1C583062"><enum>(d)</enum><header>Engineering
Integration Costs</header><text>For purposes of subsection (b)(1)(B), costs for
engineering integration are costs incurred prior to the market introduction of
advanced technology vehicles for engineering tasks related to—</text>
<paragraph id="HE2D966616C4F4C69AB8CE516F228F3B0"><enum>(1)</enum><text>establishing
functional, structural, and performance requirements for component and
subsystems to meet overall vehicle objectives for a specific
application,</text>
</paragraph><paragraph id="H93626973D937404B92D538F52F9450B2"><enum>(2)</enum><text>designing
interfaces for components and subsystems with mating systems within a specific
vehicle application,</text>
</paragraph><paragraph id="HDC0597ABE4FE4563B4B709A48B4EEFC7"><enum>(3)</enum><text>designing cost
effective, efficient, and reliable manufacturing processes to produce
components and subsystems for a specific vehicle application, and</text>
</paragraph><paragraph id="HB39B15C238B74899959952F71552A905"><enum>(4)</enum><text>validating
functionality and performance of components and subsystems for a specific
vehicle application.</text>
</paragraph></subsection><subsection id="H6E50EF884CBA446BB477005001020059"><enum>(e)</enum><header>Eligible
Taxpayer</header><text>For purposes of this section, the term <term>eligible
taxpayer</term> means any taxpayer if more than 50 percent of its gross
receipts for the taxable year is derived from the manufacture of motor vehicles
or any component parts of such vehicles.</text>
</subsection><subsection id="H43334691AC9A402189B766E5320066FC"><enum>(f)</enum><header>Limitation Based
on Amount of Tax</header><text>The credit allowed under subsection (a) for the
taxable year shall not exceed the excess of—</text>
<paragraph id="HCBBDCF82AA1E41E4963C80A6DBDB9ED4"><enum>(1)</enum><text>the sum of—</text>
<subparagraph id="H90177DA2C971425AB46B92001F931CBE"><enum>(A)</enum><text>the regular tax
liability (as defined in section 26(b)) for such taxable year, plus</text>
</subparagraph><subparagraph id="HE0778E5B25334875B50065C3F3D1CB0"><enum>(B)</enum><text>the tax imposed by
section 55 for such taxable year and any prior taxable year beginning after
1986 and not taken into account under section 53 for any prior taxable year,
over</text>
</subparagraph></paragraph><paragraph id="HC147597857804FB5800581B938AF08FE"><enum>(2)</enum><text>the sum of the
credits allowable under subpart A and sections 27, 30, and 30B for the taxable
year.</text>
</paragraph></subsection><subsection id="H4605437CE4F74E83AB604F77875D11D0"><enum>(g)</enum><header>Reduction in
Basis</header><text>For purposes of this subtitle, if a credit is allowed under
this section for any expenditure with respect to any property, the increase in
the basis of such property which would (but for this paragraph) result from
such expenditure shall be reduced by the amount of the credit so
allowed.</text>
</subsection><subsection id="H95E5F54696BE4211A91C8F5F8FB7872"><enum>(h)</enum><header>No Double
Benefit</header>
<paragraph id="H3953BD8EF2D842FCB8D117D002008324"><enum>(1)</enum><header>Coordination
with other deductions and credits</header><text>Except as provided in paragraph
(2), the amount of any deduction or other credit allowable under this chapter
for any cost taken into account in determining the amount of the credit under
subsection (a) shall be reduced by the amount of such credit attributable to
such cost.</text>
</paragraph><paragraph id="H27C2DC73DD55494099289B7B28F54498"><enum>(2)</enum><header>Research and
development costs</header>
<subparagraph id="H764945DE520345BAA78CCB755CA896C"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), any amount
described in subsection (b)(1)(C) taken into account in determining the amount
of the credit under subsection (a) for any taxable year shall not be taken into
account for purposes of determining the credit under section 41 for such
taxable year.</text>
</subparagraph><subparagraph id="HF9C79E9B393941A592A2BE4BB93E215"><enum>(B)</enum><header>Costs taken into
account in determining base period research expenses</header><text>Any amounts
described in subsection (b)(1)(C) taken into account in determining the amount
of the credit under subsection (a) for any taxable year which are qualified
research expenses (within the meaning of section 41(b)) shall be taken into
account in determining base period research expenses for purposes of applying
section 41 to subsequent taxable years.</text>
</subparagraph></paragraph></subsection><subsection id="id390EC599536B41A292A05D9A3068F42B"><enum>(i)</enum><header>Business
Carryovers Allowed</header><text>If the credit allowable under subsection (a)
for a taxable year exceeds the limitation under subsection (f) for such taxable
year, such excess (to the extent of the credit allowable with respect to
property subject to the allowance for depreciation) shall be allowed as a
credit carryback and carryforward under rules similar to the rules of section
39.</text>
</subsection><subsection id="HEDAED6DEEBAB4378A9D70000353F1C93"><enum>(j)</enum><header>Special
Rules</header><text>For purposes of this section, rules similar to the rules of
paragraphs (4) and (5) of section 179A(e) and paragraphs (1) and (2) of section
41(f) shall apply.</text>
</subsection><subsection id="H70FC44EF49EF44F6A7A2502E9B81E044"><enum>(k)</enum><header>Election not to
Take Credit</header><text>No credit shall be allowed under subsection (a) for
any property if the taxpayer elects not to have this section apply to such
property.</text>
</subsection><subsection id="HDF3F771E26B84DFE8083B1C93EA8561D"><enum>(l)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as necessary to carry out the
provisions of this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7B8938C8EE3C4CB284CEBFDCBF09E696"><enum>(b)</enum><header>Conforming
Amendments</header>
<paragraph id="HCE99A1DE4EF74A1989E624B472B5FC2"><enum>(1)</enum><text>Section 1016(a) of
the Internal Revenue Code of 1986 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="H9BFDF52CA9844033A7B39C474660608C" style="OLC">
<paragraph id="H2B9C243053F545C1A48F7D687C7C67E"><enum>(38)</enum><text>to the extent
provided in section
30F(g).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9D6DEAFC425548FBB7F68B007468DB71"><enum>(2)</enum><text>Section 6501(m) of
such Code is amended by inserting <quote>30F(k),</quote> after
<quote>30C(e)(5),</quote>.</text>
</paragraph><paragraph id="H74BD7362031943FBBA1405A9435EF0F"><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 30E the following new
item:</text>
<quoted-block id="H927B4CC6009647F89118A1A32C24B000" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 30F. Advanced technology motor
vehicles manufacturing
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HD7729871854C4360839E3EEDE8E1C19D"><enum>(c)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply to amounts
incurred in taxable years beginning after December 31, 2006.</text>
</subsection></section><section commented="no" id="HD31A3A7FB24241DBB1392F155C73B95F"><enum>303.</enum><header>Production tax
credit for any commercial vehicle that attains an EPA fuel economy standard of
100 mpg</header>
<subsection id="HDC994DA09E734715A3AF55F0CBAAA53"><enum>(a)</enum><header>In
general</header><text display-inline="no-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="H66309A1CDD3D47EAB1D8879BF78EBA3F" style="OLC">
<section commented="no" id="H637506EFEBB141E6BC18D01108290517"><enum>45Q.</enum><header>Vehicles
attaining EPA fuel economy standard of 100 mpg</header>
<subsection commented="no" id="H098D6B58B789444A843E3E619D8D3616"><enum>(a)</enum><header>Allowance of
Credit</header><text>There shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to 50 percent of the cost
of manufacturing any motor vehicle placed in service by the taxpayer during the
taxable year that achieves a fuel economy standard of 100 miles per gallon, as
determined by the Administrator of the Environmental Protection Agency.</text>
</subsection><subsection id="H5C654EA4927F431090D15262DD86107E"><enum>(b)</enum><header>Limitation</header><text>No
credit shall be allowed under subsection (a) to the taxpayer after the 5th
taxable year beginning after the taxable year in which the taxpayer
manufacturers the first motor vehicle described in subsection (a).</text>
</subsection><subsection id="H4B1C307CFA8C433BB8F5FB5EDD292503"><enum>(c)</enum><header>Definitions and
special rules</header>
<paragraph id="H2E6E905D120B4E0BAA2FDD23816CD79D"><enum>(1)</enum><header>In
general</header><text>For purposes of this section, rules similar to the rules
of section 30B(h) shall apply.</text>
</paragraph><paragraph id="HFF867A5ED1174BAEAAAB6B00A31F8D92"><enum>(2)</enum><header>Controlled
groups</header>
<subparagraph id="H04B3ACB98FA948A48EACE66BE4AC637B"><enum>(A)</enum><header>In
general</header><text>For purposes of this section, all persons treated as a
single employer under subsection (a) or (b) of section 52 or subsection (m) or
(o) of section 414 shall be treated as a single manufacturer.</text>
</subparagraph><subparagraph id="H5B6B826DBE524781A7FD156530A8D520"><enum>(B)</enum><header>Inclusion of
foreign corporations</header><text>For purposes of subparagraph (A), in
applying subsections (a) and (b) of section 52 to this section, section 1563
shall be applied without regard to subsection (b)(2)(C) thereof.</text>
</subparagraph></paragraph><paragraph id="HB99D62AA948240D7A4064742E3EAB309"><enum>(3)</enum><header>Motor
vehicle</header><text display-inline="yes-display-inline">For purposes of this
section, the term <term>motor vehicle</term> means any vehicle which is
manufactured primarily for use on public streets, roads, and highways (not
including a vehicle operated exclusively on a rail or rails) and which has at
least 4 wheels.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HFC62298E7A994CE59CCAC5739957F957"><enum>(4)</enum><header>Denial of Double
Benefit</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></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H9C011F34B1CC422CBA1565B35BF200D5"><enum>(b)</enum><header>Credit Made Part
of General Business Credit</header><text>Section 38(b) is amended—</text>
<paragraph commented="no" id="H0C715B7D849849258C3440E66925CBFC"><enum>(1)</enum><text>by striking the
period at the end of paragraph (32) and inserting <quote>, plus</quote>,
and</text>
</paragraph><paragraph commented="no" id="H3DD5382B38FE42DC8DBB30EAD6C08D68"><enum>(2)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBC2020DA408B49A097AD34966D8CFEAA" style="OLC">
<paragraph commented="no" id="HF99D4C4FD6EE4F049485D951FF41F97B"><enum>(33)</enum><text display-inline="yes-display-inline">the credit to which section 30G
applies.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H7D75DF8DC23842E189AEE437BEE6A0"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after the date of the
enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H2308396E8AEE49888FC954393FE55647" section-type="subsequent-section"><enum>304.</enum><header>Credit for
production of cellulosic biofuel</header>
<subsection id="H7DB0452392E3402287294BD38BBD3617"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 40 is amended by striking <quote>plus</quote> at the end of paragraph
(1), by striking <quote>plus</quote> at the end of paragraph (2), by striking
the period at the end of paragraph (3) and inserting <quote>, plus</quote>, and
by adding at the end the following new paragraph:</text>
<quoted-block id="HA4EBE7FECBC447F0946D5DC7006726C2" style="OLC">
<paragraph id="H414609065A0F402F85168FD282D3B2EA"><enum>(4)</enum><text>the cellulosic
biofuel producer
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3D4FA1A8E13C4BC489F1686F4AD7E58"><enum>(b)</enum><header>Cellulosic
biofuel producer credit</header>
<paragraph id="H66153F894C4D4F2382F7F2828078CD03"><enum>(1)</enum><header>In
general</header><text>Subsection (b) of section 40 is amended by adding at the
end the following new paragraph:</text>
<quoted-block id="H85305A3A0B3D4529B68239002F5E5FE8" style="OLC">
<paragraph id="H6E816F33E95C4D7A95996913FFB6A1B"><enum>(6)</enum><header>Cellulosic
biofuel producer credit</header>
<subparagraph id="HC0AE048AAFCC4CDFA7FB5DCFCA00FA6B"><enum>(A)</enum><header>In
general</header><text>The cellulosic biofuel producer credit of any taxpayer is
an amount equal to the applicable amount for each gallon of qualified
cellulosic biofuel production.</text>
</subparagraph><subparagraph id="H7AFF6D0167964EA8A556554CEF00B156"><enum>(B)</enum><header>Applicable
amount</header><text>For purposes of subparagraph (A), the applicable amount
means $1.01, except that such amount shall, in the case of cellulosic biofuel
which is alcohol, be reduced by the sum of—</text>
<clause id="H3627C737135B4739B8000978C8DAC22E"><enum>(i)</enum><text>the amount of the
credit in effect for such alcohol under subsection (b)(1) (without regard to
subsection (b)(3)) at the time of the qualified cellulosic biofuel production,
plus</text>
</clause><clause id="HC0608CFBA801406893AC352763F10848"><enum>(ii)</enum><text>in the case of
ethanol, the amount of the credit in effect under subsection (b)(4) at the time
of such production.</text>
</clause></subparagraph><subparagraph id="H9D8A115A23B8409CB04EB1151C04F7B2"><enum>(C)</enum><header>Qualified
cellulosic biofuel production</header><text>For purposes of this section, the
term <term>qualified cellulosic biofuel production</term> means any cellulosic
biofuel which is produced by the taxpayer, and which during the taxable
year—</text>
<clause id="H996B19B7725641E8A9A4BAA884E345D"><enum>(i)</enum><text>is
sold by the taxpayer to another person—</text>
<subclause id="H0072E2DEC25F4827B8BC7EB6844E78BF"><enum>(I)</enum><text>for use by such
other person in the production of a qualified cellulosic biofuel mixture in
such other person’s trade or business (other than casual off-farm
production),</text>
</subclause><subclause id="H7CBD8802C7C3499CAAB34900368061AE"><enum>(II)</enum><text>for use by such
other person as a fuel in a trade or business, or</text>
</subclause><subclause id="H8546B4ABB556430BBE1E28918F4EFEA6"><enum>(III)</enum><text>who sells such
cellulosic biofuel at retail to another person and places such cellulosic
biofuel in the fuel tank of such other person, or</text>
</subclause></clause><clause id="H541B7C5B726C43A89D5F00E453AC19EB"><enum>(ii)</enum><text>is used or sold
by the taxpayer for any purpose described in clause (i).</text>
</clause><continuation-text continuation-text-level="subparagraph">The
qualified cellulosic biofuel production of any taxpayer for any taxable year
shall not include any alcohol which is purchased by the taxpayer and with
respect to which such producer increases the proof of the alcohol by additional
distillation.</continuation-text></subparagraph><subparagraph id="HCEBA133E86FB4E8CBC025DC1B22707E2"><enum>(D)</enum><header>Qualified
cellulosic biofuel mixture</header><text>For purposes of this paragraph, the
term <term>qualified cellulosic biofuel mixture</term> means a mixture of
cellulosic biofuel and gasoline or of cellulosic biofuel and a special fuel
which—</text>
<clause id="HC089270698804B5C9470FD50A74E68C0"><enum>(i)</enum><text>is
sold by the person producing such mixture to any person for use as a fuel,
or</text>
</clause><clause id="HBFEE529E8A1747B5A3C07CE8FCF00F2"><enum>(ii)</enum><text>is
used as a fuel by the person producing such mixture.</text>
</clause></subparagraph><subparagraph id="H9A0934343E3E4A2CB1DF999D251898C2"><enum>(E)</enum><header>Cellulosic
biofuel</header><text display-inline="yes-display-inline">For purposes of this
paragraph—</text>
<clause id="HEFCF2E25AC1143C98DBA530000D2FD20"><enum>(i)</enum><header>In
general</header><text>The term <term>cellulosic biofuel</term> means any liquid
fuel which—</text>
<subclause id="H28A6715C07BA4B58AAFFFB493F82A3C"><enum>(I)</enum><text>is produced from
any lignocellulosic or hemicellulosic matter that is available on a renewable
or recurring basis, and</text>
</subclause><subclause id="HD42715B367634E81BFCEB0000445D7F"><enum>(II)</enum><text>meets the
registration requirements for fuels and fuel additives established by the
Environmental Protection Agency under section 211 of the Clean Air Act (42
U.S.C. 7545).</text>
</subclause></clause><clause id="HBDA8F3ACC40243FD96EFB1B8CA7412DB"><enum>(ii)</enum><header>Exclusion of
low-proof alcohol</header><text>Such term shall not include any alcohol with a
proof of less than 150. The determination of the proof of any alcohol shall be
made without regard to any added denaturants.</text>
</clause></subparagraph><subparagraph id="HF976B24F628A440ABD05410700B23405"><enum>(F)</enum><header>Allocation of
cellulosic biofuel producer credit to patrons of
cooperative</header><text>Rules similar to the rules under subsection (g)(6)
shall apply for purposes of this paragraph.</text>
</subparagraph><subparagraph commented="no" id="H3105AE0882C94D2689CCF7D24BF059B"><enum>(G)</enum><header>Registration
requirement</header><text>No credit shall be determined under this paragraph
with respect to any taxpayer unless such taxpayer is registered with the
Secretary as a producer of cellulosic biofuel under section 4101.</text>
</subparagraph><subparagraph id="H749E7B31C38641ECAADE24831EA758B1"><enum>(H)</enum><header>Application of
paragraph</header><text>This paragraph shall apply with respect to qualified
cellulosic biofuel production after December 31,
2008.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0129A18E783D45C497B200694F0624B5"><enum>(2)</enum><header>Termination date
not to apply</header><text>Subsection (e) of section 40 is amended—</text>
<subparagraph id="HC31CF44028E347008DB372E55701C36E"><enum>(A)</enum><text>by inserting
<quote>or subsection (b)(6)(H)</quote> after <quote>by reason of paragraph
(1)</quote> in paragraph (2), and</text>
</subparagraph><subparagraph id="H1D104DD3CF7E49F4BBF8BA00319020D3"><enum>(B)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="HD9227BB4E9F14D679088D7CC0816B8BA" style="OLC">
<paragraph id="H29F2339B82B9463C8772627CF703D68B"><enum>(3)</enum><header>Exception for
cellulosic biofuel producer credit</header><text>Paragraph (1) shall not apply
to the portion of the credit allowed under this section by reason of subsection
(a)(4).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HA8BFFF2D60A747C89B2519C5429BABFA"><enum>(3)</enum><header>Conforming
amendments</header>
<subparagraph id="HA49CDEF0D60C488CBFC95BE0799730F0"><enum>(A)</enum><text>Paragraph (1) of
section 4101(a) is amended—</text>
<clause id="HA84F899136564F5796C6798CD9D276CA"><enum>(i)</enum><text>by
striking <quote>and every person</quote> and inserting <quote>, every
person</quote>, and</text>
</clause><clause id="HBF38A7F972A24D3C8B391F9151FF19DD"><enum>(ii)</enum><text>by
inserting <quote>, and every person producing cellulosic biofuel (as defined in
section 40(b)(6)(E))</quote> after <quote>section
6426(b)(4)(A))</quote>.</text>
</clause></subparagraph><subparagraph id="H122DB303E90B4A428968106BC18C8767"><enum>(B)</enum><text>The heading of
section 40, and the item relating to such section in the table of sections for
subpart D of part IV of subchapter A of chapter 1, are each amended by
inserting <quote>, etc.,</quote> after <quote>Alcohol</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H6CA49CDC47D74CFFBE19C05768EBD71E"><enum>(c)</enum><header>Biofuel not used
as a fuel, etc</header>
<paragraph id="H11D85E48E72B42319DDD977439C82B92"><enum>(1)</enum><header>In
general</header><text>Paragraph (3) of section 40(d) is amended by
redesignating subparagraph (D) as subparagraph (E) and by inserting after
subparagraph (C) the following new subparagraph:</text>
<quoted-block id="HBC42F533D2324673B377B1DC22118239" style="OLC">
<subparagraph id="H960F1189CCE7431B98301EA9D58B14EF"><enum>(D)</enum><header>Cellulosic
biofuel producer credit</header><text>If—</text>
<clause id="HE7C267B757894A05B2F3B1C10951CF53"><enum>(i)</enum><text>any credit is
allowed under subsection (a)(4), and</text>
</clause><clause id="HA1996FD091E54D2C009FFD879697A8CF"><enum>(ii)</enum><text>any person does
not use such fuel for a purpose described in subsection (b)(6)(C),</text>
</clause><continuation-text continuation-text-level="subparagraph">then
there is hereby imposed on such person a tax equal to the applicable amount (as
defined in subsection (b)(6)(B)) for each gallon of such cellulosic
biofuel.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H09ADB6C507E04A2FBF26CA7E30FB600"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H038BFD752C7D4888944C6D004766A9F6"><enum>(A)</enum><text>Subparagraph (C)
of section 40(d)(3) is amended by striking <quote><header-in-text level="paragraph" style="OLC">Producer</header-in-text></quote> in the heading
and inserting <quote><header-in-text level="paragraph" style="OLC">Small
ethanol producer</header-in-text></quote>.</text>
</subparagraph><subparagraph id="H927CFE5F2ADA421BB3F9DE9F33F386FD"><enum>(B)</enum><text>Subparagraph (E)
of section 40(d)(3), as redesignated by paragraph (1), is amended by striking
<quote>or (C)</quote> and inserting <quote>(C), or (D)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HD46CE872A0E3450F8666F0E4C9A22CD8"><enum>(d)</enum><header>Biofuel produced
in the United States</header><text>Section 40(d) is amended by adding at the
end the following new paragraph:</text>
<quoted-block id="H2200CC0AA81E4466A11290493FAAA2B9" style="OLC">
<paragraph id="H581E5EC930D746B58054D3B07E5DB48F"><enum>(6)</enum><header>Special rule for
cellulosic biofuel producer credit</header><text>No cellulosic biofuel producer
credit shall be determined under subsection (a) with respect to any cellulosic
biofuel unless such cellulosic biofuel is produced in the United States and
used as a fuel in the United States. For purposes of this subsection, the term
<term>United States</term> includes any possession of the United
States.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9C59B37A1540412FBEB1DEF366BC6980"><enum>(e)</enum><header>Waiver of credit
limit for cellulosic biofuel production by small ethanol
producers</header><text>Section 40(b)(4)(C) is amended by inserting
<quote>(determined without regard to any qualified cellulosic biofuel
production)</quote> after <quote>15,000,000 gallons</quote>.</text>
</subsection><subsection id="H5E33CE74F1C24E209CF7B99274570083"><enum>(f)</enum><header>Denial of double
benefit</header>
<paragraph id="H3960FA520B2F47C4BAED2F647D0814C4"><enum>(1)</enum><header>Biodiesel</header><text>Paragraph
(1) of section 40A(d) is amended by adding at the end the following new flush
sentence:</text>
<quoted-block display-inline="no-display-inline" id="HA8C6718329E04FCCAFB241B3EBF6B158" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">Such term
shall not include any liquid with respect to which a credit may be determined
under section
40.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8F4A865D893B4613985E001BD535EBBF"><enum>(2)</enum><header>Renewable
diesel</header><text>Paragraph (3) of section 40A(f) is amended by adding at
the end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="H7EA70A7936C1427888881D9FEB7D26F" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">Such term
shall not include any liquid with respect to which a credit may be determined
under section
40.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9F0380BD9DC947B10034B18E4EA322D"><enum>(g)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to fuel
produced after December 31, 2008.</text>
</subsection></section><section id="H9CD320476C854A378F6D65C22061DC38"><enum>305.</enum><header>Establish a
permanent production tax credit for hydrogen fuels</header>
<subsection id="HAB8C574BFBC143E3BC10FD14B6964CE8"><enum>(a)</enum><header>Hydrogen
infrastructure and fuel costs</header>
<paragraph id="HA62802890CBE4BD0915349B4F676DA27"><enum>(1)</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="H74602402562844BDA9A185D6BB746007" style="OLC">
<section id="HD249DA4F17C44AE9977C6E9C4776C6B7"><enum>30G.</enum><header>Hydrogen
infrastructure and fuel costs</header>
<subsection id="HB5CD2DE769784803B1809CC4765F9B52"><enum>(a)</enum><header>Allowance of
Credit</header><text>There shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to the sum of—</text>
<paragraph id="HEF77D9C00FDB43CA9DE0584D272FB7B1"><enum>(1)</enum><text>the hydrogen
infrastructure costs credit determined under subsection (b), and</text>
</paragraph><paragraph id="H1E65E58FC3554E16BC0291DE149C5D3F"><enum>(2)</enum><text>the hydrogen fuel
costs credit determined under subsection (c).</text>
</paragraph></subsection><subsection id="H75A1958D69664F35B6B6A200C6D38BCD"><enum>(b)</enum><header>Hydrogen
Infrastructure Costs Credit</header>
<paragraph id="H81EAF5D31A7549D1AA3699B873E4BFC2"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (a), the hydrogen
infrastructure costs credit determined under this subsection with respect to
each eligible hydrogen production and distribution facility of the taxpayer is
an amount equal to 30 percent of so much of the infrastructure costs for the
taxable year as does not exceed $200,000 with respect to such facility.</text>
</paragraph><paragraph id="H87FCE0A3BA304D69A2F9566EC300F924"><enum>(2)</enum><header>Eligible
hydrogen production and distribution facility</header><text>For purposes of
this subsection, the term <term>eligible hydrogen production and distribution
facility</term> means a hydrogen production and distribution facility which is
placed in service after December 31, 2005.</text>
</paragraph></subsection><subsection id="HA321287CE5514B2B8D1C92A5D70F978"><enum>(c)</enum><header>Hydrogen Fuel
Costs Credit</header>
<paragraph id="HDC4035E07B0E4085B8FA2E993B69D259"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (a), the hydrogen fuel costs
credit determined under this subsection with respect to each eligible hydrogen
device of the taxpayer is an amount equal to the qualified hydrogen expenditure
amounts with respect to such device.</text>
</paragraph><paragraph id="H5ACD8062F41443E685E5D901DD72FDF"><enum>(2)</enum><header>Qualified
hydrogen expenditure amount</header><text>For purposes of this
subsection—</text>
<subparagraph id="HD2720688CFF4469BAF0697923D45651B"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified hydrogen expenditure
amount</term> means, with respect to each eligible hydrogen energy conversion
device of the taxpayer with a production capacity of not more than 25 kilowatts
of electricity, the lesser of—</text>
<clause id="HDCCB12E196DB409600E55DC598B47059"><enum>(i)</enum><text>30
percent of the amount paid or incurred by the taxpayer during the taxable year
for hydrogen which is consumed by such device, and</text>
</clause><clause id="H81A03C88651140289E3D91F8A5895EFB"><enum>(ii)</enum><text display-inline="yes-display-inline">$2,000.</text>
</clause><continuation-text continuation-text-level="subparagraph">In the
case of any device which is not owned by the taxpayer at all times during the
taxable year, the $2,000 amount in clause (ii) shall be reduced by an amount
which bears the same ratio to $2,000 as the portion of the year which such
device is not owned by the taxpayer bears to the entire year.</continuation-text></subparagraph><subparagraph id="H7DFA8ACAA96C4266872B7777E815B5A4"><enum>(B)</enum><header>Higher
limitation for devices with more production capacity</header><text>In the case
of any eligible hydrogen energy conversion device with a production capacity
of—</text>
<clause id="H48550DB9632041C19900BE1677BC87B"><enum>(i)</enum><text>more than 25 but
less than 100 kilowatts of electricity, subparagraph (A) shall be applied by
substituting <quote>$4,000</quote> for <quote>$2,000</quote> each place it
appears, and</text>
</clause><clause id="HB328E4624704441481B87CF346B89F5E"><enum>(ii)</enum><text>not less than 100
kilowatts of electricity, subparagraph (A) shall be applied by substituting
<quote>$6,000</quote> for <quote>$2,000</quote> each place it appears.</text>
</clause></subparagraph></paragraph><paragraph id="H8EDC7EC53899469B99DBE7FEC99B78FD"><enum>(3)</enum><header>Eligible
hydrogen energy conversion devices</header><text>For purposes of this
subsection—</text>
<subparagraph id="H0211420E254C40ABA78813B7B150DF88"><enum>(A)</enum><header>In
general</header><text>The term <term>eligible hydrogen energy conversion
device</term> means, with respect to any taxpayer, any hydrogen energy
conversion device which—</text>
<clause id="H0FF81761920747F0843F21C99BAF97C3"><enum>(i)</enum><text>is
placed in service after December 31, 2004, and</text>
</clause><clause id="H0427276CC0EA4370A939C33203C6E3E"><enum>(ii)</enum><text>is
wholly owned by the taxpayer during the taxable year.</text>
</clause><continuation-text continuation-text-level="subparagraph">If an
owner of a device (determined without regard to this subparagraph) provides to
the primary user of such device a written statement that such user shall be
treated as the owner of such device for purposes of this section, then such
user (and not such owner) shall be so treated.</continuation-text></subparagraph><subparagraph id="H7E42F7D69B1B441E006BC378AACA18EF"><enum>(B)</enum><header>Hydrogen energy
conversion device</header><text>The term <term>hydrogen energy conversion
device</term> means—</text>
<clause id="H01212856E13348C5A083FDDCC0E6B256"><enum>(i)</enum><text>any
electrochemical device which converts hydrogen into electricity, and</text>
</clause><clause id="HDBEB5AFAA637495DB7BC00265465296D"><enum>(ii)</enum><text>any combustion
engine which burns hydrogen as a fuel.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HFCC1DE9E9D0A4A9281EC23DBFEBF8B8D"><enum>(d)</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="H49A31266269245879500EB168666C2B1"><enum>(e)</enum><header>Application With
Other Credits</header>
<paragraph id="H1633CF4172F14ED9B5D4687CFE7EFBE9"><enum>(1)</enum><header>Business credit
treated as part of general business credit</header><text>So much of the credit
which would be allowed under subsection (a) for any taxable year (determined
without regard to this subsection) that is attributable to amounts which (but
for subsection (g) would be allowed as a deduction under section 162 shall be
treated as a credit listed in section 38(b) for such taxable year (and not
allowed under subsection (a)).</text>
</paragraph><paragraph id="HEF7D3E2416214AE880F7CADF15037FD"><enum>(2)</enum><header>Personal
credit</header><text>The credit allowed under subsection (a) (after the
application of paragraph (1)) for any taxable year shall not exceed the excess
(if any) of—</text>
<subparagraph id="H82642D6A7E8F4737ADF4D57D899CBBA"><enum>(A)</enum><text>the regular tax
liability (as defined in section 26(b)) reduced by the sum of the credits
allowable under subpart A and sections 27, 30, 30B, and 30C, over</text>
</subparagraph><subparagraph id="HA0BDC56A66B54DCC85E6A6039304F649"><enum>(B)</enum><text>the tentative
minimum tax for the taxable year.</text>
</subparagraph></paragraph></subsection><subsection id="H2B5103FB711449689977B854F5BA03D5"><enum>(f)</enum><header>Denial of Double
Benefit</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>
</subsection><subsection id="H7A6CAF633D644B16A8D0F7C03F4E003D"><enum>(g)</enum><header>Recapture</header><text>The
Secretary shall, by regulations, provided for recapturing the benefit of any
credit allowable under subsection (a) with respect to any property which ceases
to be property eligible for such credit.</text>
</subsection><subsection id="H17207920619D4CB780386401BDD56F27"><enum>(h)</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="H4CF10164610F42828BF3CC9BA42B106"><enum>(i)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as necessary to carry out the
provisions of this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H92B8675C0AF448F29871BDFC00693821"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H46E36E33036D4CCDB900E4C5186505F9"><enum>(A)</enum><text>Section 38(b) of
the Internal Revenue Code of 1986 is amended by striking <quote>plus</quote> at
the end of paragraph (32), by striking the period at the end of paragraph (33)
and inserting <quote>plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block id="H532F924CDE3C408381A4F6EA3B18716C" style="OLC">
<paragraph id="H27EAAB48DCDD4A05B5B2A5003E43C3F1"><enum>(34)</enum><text>the portion of
the hydrogen infrastructure and fuel credit to which section 30D(e)(1)
applies.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H53D26421EA704969BFE9498B22C3F500"><enum>(B)</enum><text>Section 55(c)(3)
of such Code is amended by inserting <quote>30D(e)(2),</quote> after
<quote>30C(d)(2),</quote>.</text>
</subparagraph><subparagraph id="H3B09598E683E48E99B057FDFC67BDCC6"><enum>(C)</enum><text>Section 1016(a) of
such Code 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 id="H7A7A2703673D4D0A882F1DF56411EDE2" style="OLC">
<paragraph id="H5FDF9266C06740B79D0216B5EE57F9A0"><enum>(39)</enum><text>to the extent
provided in section
30G(d).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H88CBFEF3FAEE46EF9CAC81C2229F85C"><enum>(D)</enum><text>Section 6501(m) of
such Code is amended by inserting <quote>30D(h),</quote> after
<quote>30C(e)(5),</quote>.</text>
</subparagraph><subparagraph id="H90A6C95639CE4FB7B000814E5EDA4BCB"><enum>(E)</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 display-inline="no-display-inline" id="H2394520FF6334F528098363C091FD8E3" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 30G. Hydrogen infrastructure and fuel
costs.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H2AEC33A2C9024DED8F35FBE66E396960"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred after December 31, 2007, in taxable years ending after such
date.</text>
</paragraph></subsection></section><section id="HCC6C730279754C7C8F1EDCF6F96697EB"><enum>306.</enum><header>Rate of credit
for alternative fuel vehicle refueling property increased from 30 to 60
percent</header>
<subsection id="H39846439A3BB4F9100FB7F7C925F5501"><enum>(a)</enum><header>In
general</header><text>Subsection (a) of section 30C of such Code is amended by
striking <quote>30 percent</quote> and inserting <quote>60
percent</quote>.</text>
</subsection><subsection id="HD6583CEC69924CD39F17FF70B860ACE2"><enum>(b)</enum><header>Repeal of
termination</header><text>Section 30C of such Code is amended by striking
subsection (q).</text>
</subsection><subsection id="H316E34E729354A869D7CF2A82ECEDC61"><enum>(c)</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 commented="no" display-inline="no-display-inline" id="HEA9E769567404A2F8F64DE0525B0D500" section-type="subsequent-section"><enum>307.</enum><header>Use of CAFÉ
penalties to support the Clean Cities Initiative</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/32912">Section 32912</external-xref> of title 49, United States
Code, is amended by adding at the end the following:</text>
<quoted-block id="H6E7BCA4953A14C37BB6906BDF945190" style="OLC">
<subsection commented="no" id="HFE2783A3585F4B7B9FD6AEABD14C8647"><enum>(e)</enum><header>Petroleum
Reduction Trust Fund</header><paragraph commented="no" display-inline="yes-display-inline" id="H9F41173C3F244BD4A5C05C09F6B7BCD3"><enum>(1)</enum><text>There is established in
the Treasury of the United States a trust fund, to be known as the Petroleum
Reduction Trust Fund, consisting of such amounts as are deposited into the
Trust Fund under paragraph (2) and any interest earned on investment of amounts
in the Trust Fund.</text>
</paragraph><paragraph commented="no" id="H9E0E0E15158D4A8DA800F8CF6425ADC9" indent="up1"><enum>(2)</enum><text>The Secretary of Transportation shall
remit 90 percent of the amount collected in civil penalties under this section
to the Trust Fund.</text>
</paragraph><paragraph commented="no" id="HC289E51F83ED4B8D9F42033B80A4C687" indent="up1"><enum>(3)</enum><text>The Secretary of Energy may obligate
such sums as are available in the Trust Fund for the Clean Cities grant program
to increase the number of locations at which consumers may purchase fuel
containing ethanol, biodiesel, and other alternative
fuels.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H7D888B6A7A7B4CB7926CE77BE94CCA43"><enum>308.</enum><header>Exclusion from
heavy truck tax for idling reduction units and advanced insulation</header>
<subsection id="H50C9C34440914EF091C82F276873CCCF"><enum>(a)</enum><header>In
general</header><text>Section 4053 is amended by adding at the end the
following new paragraphs:</text>
<quoted-block id="H85DCA4C5FE4C43FE00645C29B600FEA" style="OLC">
<paragraph id="HC698F7AF292847C2BD35BCE500CEFEEF"><enum>(9)</enum><header>Idling reduction
device</header><text>Any device or system of devices which</text>
<subparagraph id="HCC3668B046A440C2A60949F960CA38F7"><enum>(A)</enum><text>is designed to
provide to a vehicle those services (such as heat, air conditioning, or
electricity) that would otherwise require the operation of the main drive
engine while the vehicle is temporarily parked or remains stationary using one
or more devices affixed to a tractor, and</text>
</subparagraph><subparagraph id="HD9409ABF6D194EFA9B72E9AA76A7094D"><enum>(B)</enum><text>is certified by
the Secretary of Energy, in consultation with the Administrator of the
Environmental Protection Agency and the Secretary of Transportation, to reduce
idling of such vehicle at a motor vehicle rest stop or other location where
such vehicles are temporarily parked or remain stationary.</text>
</subparagraph></paragraph><paragraph id="H2920D3D930E9481899F9951CF563BE1"><enum>(10)</enum><header>Advanced
insulation</header><text>Any insulation that has an R value of not less than
R35 per
inch.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2AFCEE4260FF410ABE78458942004CBA"><enum>(b)</enum><header>Maintenance of
trust funds deposits; amounts appropriated to trust fund treated as
taxes</header>
<paragraph commented="no" id="HB2C18B6D715441528112D6C37EE8258"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">There is hereby
appropriated (out of any money in the Treasury not otherwise appropriated) to
the Highway Trust Fund which would (but for this subsection) receive reduced
revenues as a result of the amendment made by subsection (a) an amount equal to
such reduction in revenues. Amounts appropriated by the preceding sentence to
any trust fund—</text>
<subparagraph commented="no" id="HA00113CBBE934C699DCBCB6F18F450E6"><enum>(A)</enum><text display-inline="yes-display-inline">shall be transferred from the general fund
at such times and in such manner as to replicate to the extent possible the
transfers which would have occurred had subsection (a) not been enacted,
and</text>
</subparagraph><subparagraph commented="no" id="HEFCC748206534FDA89B091C9EAD95B86"><enum>(B)</enum><text>shall be treated
for all purposes of Federal law as taxes received under section 4051 of the
Internal Revenue Code of 1986.</text>
</subparagraph></paragraph></subsection><subsection id="HCE40CF1FB85247E88D4C58DEF1E63E62"><enum>(c)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to sales or
installations after the date of the enactment of this Act.</text>
</subsection></section><section id="HCCFC7562560B4D4E899E4188D9AA1D6F"><enum>309.</enum><header>Advanced
hydrogen storage technologies</header>
<subsection id="HAF76F0B867C44123ABABD8A8EDA2137D"><enum>(a)</enum><header>In
General</header><text>The Secretary 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="H4291182F18344258BF2C4933A62D1286"><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="H8711ED3C9FCB4AAB8645843B7E4EA718"><enum>310.</enum><header>Plug-in
electric drive vehicle technology program</header>
<subsection id="HD189453969A94D29AA737796D6C64D5"><enum>(a)</enum><header>Battery</header><text>In
this section, the term <term>battery</term> means a device or system for the
electrochemical storage of energy.</text>
</subsection><subsection id="H5D19B9C84DAF4A999F22B8BC35E045A1"><enum>(b)</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 electric drive vehicles including—</text>
<paragraph id="HA2013C57180249DB929DF09C8955AE7F"><enum>(1)</enum><text>high capacity,
high efficiency batteries, to—</text>
<subparagraph id="H0663A72DAC4744FC897DBBB02FF243E1"><enum>(A)</enum><text>improve battery
life, energy storage capacity, and power delivery capacity, and lower cost;
and</text>
</subparagraph><subparagraph id="H06711FFCDF7F40FDB3367E009E72C439"><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="HE00634EBF0AA46BD8852CBB68F94700"><enum>(2)</enum><text>high efficiency
onboard and offboard charging components;</text>
</paragraph><paragraph id="HEE25222DBB6C40BC00B198B42937B4E9"><enum>(3)</enum><text>high power drive
train systems for passenger and commercial vehicles and for supporting
equipment;</text>
</paragraph><paragraph id="H181ADDED076C4D9F837FBCC06B8DF3E4"><enum>(4)</enum><text>onboard energy
management systems, power trains, and systems integration for plug-in electric
drive vehicles, flexible fuel vehicles, and hybrid and lean burn vehicles,
including efficient cooling systems and systems that minimize the emissions
profile of such vehicles; and</text>
</paragraph><paragraph id="HA771A4CF84404109B86E523EADE81599"><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="H12DE8663FE8F4CF7B2E3F6B77EA2A749"><enum>(c)</enum><header>Plug-In Electric
Drive Vehicle Demonstration Program</header>
<paragraph id="H3A2223F4CCB646B19BC0EA8CF402CA9B"><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 electric drive vehicles.</text>
</paragraph><paragraph id="H1B7E6FAC613540EABAE16699846DDA8D"><enum>(2)</enum><header>Applications</header>
<subparagraph id="HF635105753324E2CBD25E1A56F56A6BD"><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="H06246C94176B430E946F4858374C037F"><enum>(i)</enum><text>collected on
the—</text>
<subclause id="HCCF7862B3252432E8F5E2E78387900CF"><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="H964C91211916434597F5A5D2B39918B"><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="H0D1BD514D9B342C0AF33617C41DB429B"><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="H0EAF4420B88644E4BF185B71B8A5F39"><enum>(ii)</enum><text>summarized for
dissemination to the Department, other grantees, and the public.</text>
</clause></subparagraph><subparagraph id="H7779E17D8436474A8160F169F9D29E70"><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="HC82B16A7AA314DC2BF2352511144AF4E"><enum>(3)</enum><header>Selection
criteria</header>
<subparagraph id="H0C47426A718948A392C4832C2B7972DC"><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 electric drive vehicles and
shall give preference to proposals that—</text>
<clause id="H8987A60B26A84BF29EB379D5F85FA917"><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="HA0932BB159F1426D859726E2E3672600"><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="H7B4EF2A653734FB2BE6ED175B140003D"><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 electric drive
vehicles under various circumstances, including—</text>
<clause id="H6F5D757F503A463C92C913B5F3688C51"><enum>(i)</enum><text>driving
speeds;</text>
</clause><clause id="H8720118BDA0D4EE1B5488BC8CBE2514"><enum>(ii)</enum><text>trip
ranges;</text>
</clause><clause id="H5084A7C064484E4DA54488FBD3E91B86"><enum>(iii)</enum><text>driving
conditions;</text>
</clause><clause id="H03CF711BBD364DE987368ECB383A053"><enum>(iv)</enum><text>climate
conditions; and</text>
</clause><clause id="H070F25DF3E5C45DF9B0872CC5F93E825"><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="H04FAC8FFC9FF47109E6837E5E4E9C1FD"><enum>(4)</enum><header>Pilot project
requirements</header>
<subparagraph id="H5CB8EBE07F5F4E9594BC71A950F234F"><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 2007 through fiscal year
2011.</text>
</subparagraph><subparagraph id="HEF3A96A5E02C49FC82F509FA7C303C46"><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="HE7B97F8431E54B409D6811FC4DB000A6"><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 electric
drive vehicles declines or the cost of converting a hybrid electric vehicle to
a plug-in electric drive vehicle declines.</text>
</paragraph></subsection><subsection id="H8C8F4C4D320147CC87A4FC559C52767"><enum>(d)</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="HB995DC809481493D8FC000F76229EAC"><enum>(e)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated to the
Secretary—</text>
<paragraph id="HA75F8944D806456E9921221505FBB5A5"><enum>(1)</enum><text>for carrying out
subsection (c), $100,000,000 for fiscal year 2008 and such sums as may be
necessary for each of the fiscal years 2009 through 2011; and</text>
</paragraph><paragraph id="H2173961F05D34ADE8D26C63DE08D5BB2"><enum>(2)</enum><text>for carrying out
subsection (d), $50,000,000 for fiscal year 2008 and such sums as may be
necessary for each of the fiscal years 2009 through 2011.</text>
</paragraph></subsection></section><enum>IV</enum><header>Reducing Consumer
Energy and Gasoline Costs</header>
<section id="H7D9530A8A9A348BE8D5F097837617E79"><enum>401.</enum><header>Refundable
employer credit for providing tax-free transit passes to employees</header>
<subsection id="H8D70F9735F3B4167B769E8EA06513129"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart C of part IV
of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to
refundable credits) is amended by inserting after section 35 the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="HF1089AB841474AF7B4DB48AC003CD700" style="OLC">
<section id="H8BC9BEDD1E814DDD00836B47C0966318"><enum>35A.</enum><header>Employers
providing tax-free transit passes to employees</header>
<subsection id="HECD4B7E3C665473CA62D7C6D3DB100DE"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of an
employer, there shall be allowed as a credit against the tax imposed by this
subtitle for the taxable year an amount equal to 50 percent of the amount paid
or incurred by the taxpayer during the taxable year—</text>
<paragraph id="H3534D84751E643CC001DB397062F5599"><enum>(1)</enum><text>for transit passes
provided to employees of such employer, and</text>
</paragraph><paragraph id="H27F8B67E170F4970B271E99CE78EC4CC"><enum>(2)</enum><text>as cash
reimbursements made to such employees for transit passes purchased by such
employees.</text>
</paragraph></subsection><subsection id="HBBCEF2D90D0D47209D909600009DA415"><enum>(b)</enum><header>Limitation to
tax-free transit passes</header><text>Subsection (a) shall apply to a transit
pass (or reimbursement) provided to an employee only to the extent that the
employer reasonably expects that the value of such pass (or the amount of such
reimbursement) is excludable from such employee’s income under section
132.</text>
</subsection><subsection id="H36AFC963CBBE46DABA9823021EC57946"><enum>(c)</enum><header>Exclusion of
nontaxpayers</header><text display-inline="yes-display-inline">Subsection (a)
shall not apply to any employer which is exempt from the tax imposed by this
chapter with respect to the activity in which the employee is performing
services for the employer.</text>
</subsection><subsection id="H3C4F91DAF5A240D497B519289800073C"><enum>(d)</enum><header>Definitions</header><text>Terms
used in this section shall have the respective meanings given such terms by
section
132.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF9C009D0D62F4B1D8609B58E00BA0943"><enum>(b)</enum><header>Denial of double
benefit</header><text display-inline="yes-display-inline">Section 280C of such
Code is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H73B99A01CCC746378ED9BD09DD18B00" style="OLC">
<subsection id="H04B6B7089D8C4B3DB2AE3D10EEDF36DD"><enum>(g)</enum><header>Employer credit
for providing tax-free transit passes to employees</header><text display-inline="yes-display-inline">No
deduction shall be allowed for that portion of the expenses (otherwise
allowable as a deduction) taken into account in determining the credit under
section 35A for the taxable year which is equal to the amount of the credit
allowable for such taxable year under section
35A(a).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H52A7F50264B74D5481E4B06C902F49F9"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for such subpart C is amended by
inserting after the item relating to section 35 the following new item:</text>
<toc regeneration="no-regeneration">
<toc-entry level="section"><quote>Sec. 35A. Employers providing
tax-free transit passes to employees.</quote>.</toc-entry>
</toc>
</subsection><subsection display-inline="no-display-inline" id="H055EE91B92AE4DA8A03C4B71CD2DC744"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to transit
passes provided after the date of the enactment of this Act in taxable years
ending after such date.</text>
</subsection></section><section id="H20931725E9E34A9AB43369C3094068BE"><enum>402.</enum><header>Reduction in
number of boutique fuels</header><text display-inline="no-display-inline">Section 211(c)(4)(C) of the Clean Air Act
(<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(c)(4)(C)</external-xref>) is amended as follows:</text>
<paragraph id="H39D9BB51341340BDB798BF6FF92E571F"><enum>(1)</enum><text display-inline="yes-display-inline">By redesignating the clause (v) added by
section 1541(b) of the Energy Policy Act of 2005 (<external-xref legal-doc="public-law" parsable-cite="pl/109/58">Public Law 109–58</external-xref>; 119 Stat.
1106) as clause (vi).</text>
</paragraph><paragraph id="HD4C6DF8E0C294D1BADE1694751C340D8"><enum>(2)</enum><text>In clause (vi) (as
so redesignated)—</text>
<subparagraph id="H8AC4B53E15674E439E2D64997930D071"><enum>(A)</enum><text>in subclause (I)
by striking <quote>approved under this paragraph as of September 1, 2004, in
all State implementation plans</quote> and by inserting in lieu there of
<quote>set forth on the list published under subclause (II) (or on the revised
list referred to in subclause (III) if the list has been revised)
</quote>;</text>
</subparagraph><subparagraph id="H5601CBDAD01E4C01BFDEDD0072A9F600"><enum>(B)</enum><text>by amending
subclause (III) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HFAD60003C4534088B69F673368DF9CB" style="OLC">
<subclause id="HAF66385A158C4B599454C8FD75BFB735" indent="up2"><enum>(III)</enum><text display-inline="yes-display-inline">The Administrator shall, after notice and
opportunity for comment, remove a fuel from the list published under subclause
(II) if the Administrator determines that such fuel has ceased to be included
in any State implementation plan or is identical to a Federal fuel control or
prohibition promulgated and implemented by the Administrator. The Administrator
shall publish a revised list reflecting the reduction in the number of
fuels.</text>
</subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H37D580BB53CB4439937B32FD1601802D"><enum>(C)</enum><text>by amending
subclause (IV) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H5A67237D844F467984BB025F20687359" style="OLC">
<subclause id="H286358AD209A4C219F36CFF11E3B03F5" indent="down1"><enum>(IV)</enum><text display-inline="yes-display-inline">Subclause (I) shall not limit the
Administrator's authority to approve a control or prohibition respecting any
new fuel under this paragraph in a State implementation plan or revision to a
State implementation plan if such new fuel completely replaces a fuel on the
list published under subclause (II) (or the revised list referred to in
subclause (III) if the list has been revised) and if the Administrator, after
consultation with the Secretary of Energy, publishes in the Federal Register
after notice and comment a finding that, in the Administrator's judgment, such
control or prohibition respecting such new fuel will not cause fuel supply or
distribution interruptions or have a significant adverse impact on fuel
producibility in the affected area or contiguous
areas.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><section commented="no" id="H8D0DF01977F945FBAE72039FB042D3CF" section-type="subsequent-section"><enum>403.</enum><header>Green schools grant
program</header>
<subsection commented="no" id="H3D8C2BFA554E479A925D4FB81431D3C9"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">From the amounts appropriated under
subsection (c), the Administrator of the Environmental Protection Agency shall
establish a program to make grants of not more than $10,000 to local
educational agencies that meet the matching-funds requirement in subsection (b)
for each green school construction and improvement project.</text>
</subsection><subsection commented="no" id="H3BBAFA296BB8473F845632E69672FFEC"><enum>(b)</enum><header>Matching
funds</header><text display-inline="yes-display-inline">To be eligible to
receive a grant under subsection (a), a local educational agency shall fund at
least 50 percent of the costs of the project described in subsection (a) with
non-Federal sources.</text>
</subsection><subsection id="HC2F64E4C0A4D4FA29F3E4C4D4E6D7ED2"><enum>(c)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated to the
Administrator of the Environmental Protection Agency for carrying out this
section, $5,000,000 for each of the fiscal years 2009 through 2013.</text>
</subsection><subsection commented="no" id="HE69BAEAF37F44B79AFB9BFAED4EFC8B"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph commented="no" id="H7927AEB0EDB64FCCA9B845ACF28128E9"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>green school construction
and improvements</term> means construction methods, systems, technologies, or
facility improvements that create a healthy learning environment while saving
natural resources and money, including—</text>
<subparagraph commented="no" id="H6DDFEA426C8B4125B5B74ED78889334"><enum>(A)</enum><text>sustainable site
improvements;</text>
</subparagraph><subparagraph commented="no" id="HF180BB0A029D44C88B742FFDF27006C"><enum>(B)</enum><text>water conservation
strategies or systems;</text>
</subparagraph><subparagraph commented="no" id="HDFBA394B2A0F44B08970BAB032B8D4A9"><enum>(C)</enum><text>energy
conservation strategies or systems;</text>
</subparagraph><subparagraph commented="no" id="H11446139784D4B8BB06B96003E552F81"><enum>(D)</enum><text>sustainable
materials, including low-emitting, reused, recycled, regionally harvested, and
rapidly renewable materials; and</text>
</subparagraph><subparagraph commented="no" id="H6536349DE02A4D92A024E0F0911279D"><enum>(E)</enum><text>strategies or
systems that improve indoor environmental quality, including improvements to
acoustics, ventilation, thermal comfort, daylighting, and mold prevention;
and</text>
</subparagraph></paragraph><paragraph commented="no" id="H2628F086775940F5BA18134EE28492B0"><enum>(2)</enum><text>the term
<term>local educational agency</term> has the meaning given that term in
section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H8F343583F2324D88872CD9DF92EEC774" section-type="subsequent-section"><enum>404.</enum><header>Extension and
greening of qualified zone academy bonds</header>
<subsection display-inline="no-display-inline" id="H7F70C84F5DEC4ED998E0A80661A799B3"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Paragraph (1) of 1397E(e) of the Internal
Revenue Code of 1986 (relating to limitation on amount of bonds designated) is
amended by striking <quote>1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005,
2006, and 2007</quote> and inserting <quote>each of calendar years 1998 through
2012</quote>.</text>
</subsection><subsection id="HB90FC443E3C040728275161608F9ABAA"><enum>(b)</enum><header>Greening</header><text>Paragraph
(5) of section 1397E(d) of such Code (defining qualified purpose) is amended by
adding at the end the following new sentence:</text>
<quoted-block display-inline="no-display-inline" id="HA4BDEA384F5141CA9766B3C5DA42C79" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">In the
case of bonds issued after the date of the enactment of this sentence, any
rehabilitation, repair, or provision of equipment shall be treated as a
qualified purpose only if such rehabilitation, repair, or provision, as the
case may be, is described in section 403(d) of the
<short-title>Apollo Energy Independence Act of
2008</short-title>, as in effect on such
date.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H18881A3195C14072B22D96396282B000"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
subsection (a) shall apply to obligations issued after December 31,
2007.</text>
</subsection></section><section commented="no" id="HCC7325682AC349AF89F0661034A4678E"><enum>405.</enum><header>Study on the
reduction of energy costs in public schools</header>
<subsection commented="no" id="H940AABC3D0EF4FC88D987B02706F6DF1"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">Not later than 3 months after the date of
enactment of this Act, the Secretary of Energy, in consultation with the
Secretary of Education, shall conduct a study to evaluate the daily and
seasonal energy costs in public schools and how such schools can best utilize
the public school calendar to reduce such energy costs.</text>
</subsection><subsection commented="no" id="H81C3D09C5851475CAEB373CC20BBD47F"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 2 years after the
commencement of the study required by subsection (a), the Secretary of Energy,
in consultation with the Secretary of Education, shall submit a report to each
House of Congress containing the results of such study and recommendations
regarding—</text>
<paragraph commented="no" id="HFA534D238ED8478BAC18763172C150DA"><enum>(1)</enum><text>the optimal time
public schools in each State should start and end the school day based on the
geographic locations of, and average monthly temperatures and other climate
factors in the areas surrounding, such schools; and</text>
</paragraph><paragraph commented="no" id="H1A089A1D9D62446FB0B23C5514737F77"><enum>(2)</enum><text>the optimal school
calendar for public schools in each State to reduce the energy costs of such
schools by at least 5 percent each calendar year.</text>
</paragraph></subsection><subsection commented="no" id="H5D74A2274C2E44BFB67DB16F001500B0"><enum>(c)</enum><header>Authorization of
Appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to the Secretary of Energy for carrying out this
section, $500,000 for fiscal year 2009, and such sums as are necessary for each
fiscal year thereafter.</text>
</subsection><subsection commented="no" id="HAD979F921D254D95B9363F1FC9032000"><enum>(d)</enum><header>Definition</header><text>For
purposes of this section, the term <term>public school</term> has the meaning
given such term in section 5145 of the Elementary and Secondary Education Act
of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7217d">20 U.S.C. 7217d</external-xref>).</text>
</subsection></section><section id="HCF77BF0CED0A424A972E3CAE818E9C1"><enum>406.</enum><header>Ethanol</header>
<subsection id="H352D4A1E015F492EBE9EB4DC8161F500"><enum>(a)</enum><header>In
general</header><text>Subchapter II of chapter 99 of the Harmonized Tariff
Schedule of the United States is amended by inserting in numerical sequence the
following new heading:</text>
<quoted-block display-inline="no-display-inline" id="H2EA018DD11B74960801D0082D9BAE996" style="OLC">
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="none" line-rules="hor-ver" rowsep="0" rule-weights="0.0.0.0.4.17" table-template-name="Duty Suspension, 8 Column" table-type="">
<tgroup block-style="1" cols="8" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.7.9"><colspec coldef="txt-no-ldr-no-spread" colname="column1" colwidth="8pts" min-data-value="8"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colwidth="35pts" min-data-value="35"></colspec><colspec coldef="txt" colname="column3" colwidth="86pts" min-data-value="60"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column4" colwidth="25pts" min-data-value="25"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column5" colwidth="38pts" min-data-value="38"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column6" colsep="1" colwidth="38pts" min-data-value="38"></colspec><colspec coldef="txt-no-spread" colname="column7" colwidth="38pts" min-data-value="38"></colspec><colspec align="justify" coldef="fig" colname="column8" colwidth="12pts" min-data-value="3"></colspec>
<tbody>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0" valign="top">9902.05.40</entry><entry align="left" colname="column3" leader-modify="force-ldr-bottom" rowsep="0" valign="bottom">Ethyl alcohol (provided for in subheadings 2207.10.60 and
2207.20) or any mixture containing such ethyl alcohol (provided for in heading
2710 or 3824) if such ethyl alcohol or mixture is to be used as a fuel or in
producing a mixture of gasoline and alcohol, a mixture of a special fuel and
alcohol, or any other mixture to be used as fuel (including motor fuel provided
for in subheading 2710.11.15, 2710.19.15 or 2710.19.21), or is suitable for any
such uses </entry><entry align="left" colname="column4" leader-modify="clr-ldr" rowsep="0" valign="bottom">Free</entry><entry align="left" colname="column5" leader-modify="clr-ldr" rowsep="0" valign="bottom">Free</entry><entry align="left" colname="column6" leader-modify="clr-ldr" rowsep="0" valign="bottom">Free</entry><entry align="left" colname="column7" leader-modify="force-ldr-bottom" rowsep="0" valign="bottom">On or before 12/31/2010</entry><entry align="right" colname="column8" leader-modify="clr-ldr" rowsep="0" valign="bottom"></entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF9D51CB469E949A0AEF044B2B945A91"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) applies with respect to
goods entered, or withdrawn from warehouse for consumption, on or after the
15th day after the date of the enactment of this Act.</text>
</subsection><subsection id="HF1A62D16F0774BE98C02FF9931479F00"><enum>(c)</enum><header>Effect on
heading 9901.00.50</header><text display-inline="yes-display-inline">During the
period beginning on the effective date under subsection (b) and ending on
December 31, 2010, heading 9901.00.50 of the Harmonized Tariff Schedule of the
United States is not effective.</text>
</subsection></section><enum>V</enum><header>Offsets</header>
<section commented="no" id="H557659188A944312B8B400078B27BFB6"><enum>501.</enum><header>FY09
cost</header>
<subsection commented="no" id="H866C41E9AB7C4E6EB690F1F1E63E0066"><enum>(a)</enum><header>Moratorium on
consideration of earmarks</header>
<paragraph commented="no" id="H69964D824D734093984105DFC9A9C000"><enum>(1)</enum><header>In the
House</header><text>In the 110th Congress, it shall not be in order to consider
a bill, joint resolution, amendment, or conference report containing a
congressional earmark, limited tax benefit, or limited tariff benefit (as such
terms are defined by clause 9 of rule XXI of the Rules of the House of
Representatives).</text>
</paragraph><paragraph commented="no" id="H9934B5D7219A43B1854898C556120876"><enum>(2)</enum><header>Definition</header><text>For
purposes of this subsection, the term <term>earmark</term> shall include
congressional earmarks, congressionally directed spending items, limited tax
benefits, or limited tariff benefits as those terms are defined by clause 9 of
rule XXI of the Rules of the House of Representatives and rule XLIV of the
Standing Rules of the Senate. Nothing in this subsection shall confine the
study of the joint select committee or otherwise limit its
recommendations.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0EA0DEC26547415DA32F1937BF7903DC"><enum>(b)</enum><header>Revision of
concurrent resolution on the budget</header>
<paragraph commented="no" id="H2AD29CD2F5A646F1B766BBFD965E0065"><enum>(1)</enum><text>Upon the enactment
of this Act, the chairmen of the Committees on the Budget of the House and the
Senate shall reduce the allocation of new budget authority and the outlays
flowing therefrom to the Committees on Appropriations of the House and the
Senate set forth pursuant to section 302(a) of the Congressional Budget Act of
1974 for fiscal year 2009 by $14.8 billion.</text>
</paragraph><paragraph commented="no" id="HE6F28DD376994AF5898B09E2B493F88"><enum>(2)</enum><text>The chairmen of the
Committees on the Budget of the House and the Senate shall make any other
necessary and conforming adjustments in the concurrent resolution on the budget
for fiscal year 2009.</text>
</paragraph></subsection></section><section id="H064C9E07190E4180A3E93D27F854C6E"><enum>502.</enum><header>Conservation of
resources fees</header>
<subsection id="H48F79B71480D4B4BBBC6F63FB5A905A9"><enum>(a)</enum><header>Establishment of
Fees</header>
<paragraph id="H1ADF8BC19E3E4B7A930266C6C9F5E93"><enum>(1)</enum><header>In
general</header><text>Not later than 60 days after the date of enactment of
this Act, the Secretary of the Interior by regulation shall establish—</text>
<subparagraph id="H34BD027CE698480696EB00AA6FE06F38"><enum>(A)</enum><text>a conservation of
resources fee for producing Federal oil and gas leases in the Gulf of Mexico;
and</text>
</subparagraph><subparagraph id="H1CEC115BFEEE47C8BFEDDD7BA2EF11E0"><enum>(B)</enum><text>a conservation of
resources fee for nonproducing Federal oil and gas leases in the Gulf of
Mexico.</text>
</subparagraph></paragraph><paragraph id="H9D30CF9AAFA74092B2D3CC35F8338061"><enum>(2)</enum><header>Producing lease
fee terms</header><text>The fee under paragraph (1)(A)—</text>
<subparagraph id="H950974F67B7E4762BD765D2E55EFFA8C"><enum>(A)</enum><text>subject to
subparagraph (C), shall apply to covered leases that are producing
leases;</text>
</subparagraph><subparagraph id="H0864743946844B10A85107471620D751"><enum>(B)</enum><text>shall be set at $9
per barrel for oil and $1.25 per million Btu for gas, respectively, in 2005
dollars; and</text>
</subparagraph><subparagraph id="H35C4D40C0E0A4C77B095D2A854C23EB9"><enum>(C)</enum><text>shall apply only
to production of oil or gas occurring—</text>
<clause id="H898546585ED1410700BACD25D2F90621"><enum>(i)</enum><text>in
any calendar year in which the arithmetic average of the daily closing prices
for light sweet crude oil on the New York Mercantile Exchange (NYMEX) exceeds
$34.73 per barrel for oil and $4.34 per million Btu for gas in 2005 dollars;
and</text>
</clause><clause id="H3D382017BCCD4F92AF2DC7B74BCD882"><enum>(ii)</enum><text>on
or after October 1, 2006.</text>
</clause></subparagraph></paragraph><paragraph id="H93A3734876804DFF9027C391B63343A8"><enum>(3)</enum><header>Nonproducing
lease fee terms</header><text>The fee under paragraph (1)(B)—</text>
<subparagraph id="H02A10F9DC1354AFBAA811425B0B38FB4"><enum>(A)</enum><text>subject to
subparagraph (C), shall apply to leases that are nonproducing leases;</text>
</subparagraph><subparagraph id="HF20D311F8234413A95DACE2EA3461FAB"><enum>(B)</enum><text>shall be set at
$3.75 per acre per year in 2005 dollars; and</text>
</subparagraph><subparagraph id="H25342C99B5E04FFA80914FB0D25488D"><enum>(C)</enum><text>shall apply on and
after October 1, 2006.</text>
</subparagraph></paragraph><paragraph id="H5421706F85F14423AD05B659C0CEFAB9"><enum>(4)</enum><header>Treatment of
receipts</header><text>Amounts received by the United States as fees under this
subsection shall be treated as offsetting receipts.</text>
</paragraph></subsection><subsection id="HEB71FA6D09284AE8839D07BF8460F9F3"><enum>(b)</enum><header>Covered Lease
Defined</header><text>In this section the term <term>covered lease</term> means
a lease for oil or gas production in the Gulf of Mexico that is—</text>
<paragraph id="H26D7F2FA0E65408DAC4776B8B370037"><enum>(1)</enum><text>in
existence on the date of enactment of this Act;</text>
</paragraph><paragraph id="H40A42EE5332F4FDA9134006CE25DB627"><enum>(2)</enum><text>issued by the
Department of the Interior under section 304 of the Outer Continental Shelf
Deep Water Royalty Relief Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/104/58">Public Law 104–58</external-xref>);
and</text>
</paragraph><paragraph id="H9A1DA10064A342569055F7E2BC776897"><enum>(3)</enum><text>not subject to
limitations on royalty relief based on market price that are equal to or less
than the price thresholds described in clauses (v) through (vii) of section
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)).</text>
</paragraph></subsection><subsection id="HDBDB78B11AC146EB91FB6D8FC8EC86C1"><enum>(c)</enum><header>Royalty
Suspension Provisions</header><text>The Secretary of the Interior shall agree
to a request by any lessee to amend any lease issued for Central and Western
Gulf of Mexico tracts during the period of January 1, 1998, through December
31, 1999, to incorporate price thresholds applicable to royalty suspension
provisions, or amend existing price thresholds, in the amount of $34.73 per
barrel (2005 dollars) for oil and for natural gas of $4.34 per million Btu
(2005 dollars).</text>
</subsection></section><section id="H6BFE49CA554E4088BD276D6FFF43494F" section-type="subsequent-section"><enum>503.</enum><header>Reduction in payment
acres for direct and counter-cyclical payments under Department of Agriculture
commodity programs</header>
<subsection id="H7E10CB83C317401FAEFBE23DBE59BCB"><enum>(a)</enum><header>Program
crops</header><text display-inline="yes-display-inline">Section 1001(11) of the
Food, Conservation, and Energy Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/8702">7 U.S.C. 8702(11)</external-xref>) is
amended—</text>
<paragraph id="H593B377BF6DE4E869676E1C00A0009"><enum>(1)</enum><text>in
subparagraph (A), by striking <quote>85 percent</quote> and inserting <quote>84
percent</quote>; and</text>
</paragraph><paragraph id="H481DE679D9F14B4682E3621015BAFA1B"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking
<quote>83.3 percent</quote> and inserting <quote>82.3 percent</quote>.</text>
</paragraph></subsection><subsection id="H866565B5788B42918EC85686488EB3F3"><enum>(b)</enum><header>Peanuts</header><text>Section
1301(5) of the Food, Conservation, and Energy Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/8751">7 U.S.C. 8751(5)</external-xref>) is
amended—</text>
<paragraph id="H2F6E42C330D8492CA1C8691EE0B14903"><enum>(1)</enum><text>in subparagraph
(A), by striking <quote>85 percent</quote> and inserting <quote>84
percent</quote>; and</text>
</paragraph><paragraph id="HA3644AA8C44146939412D13C4887EE97"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking
<quote>83.3 percent</quote> and inserting <quote>82.3 percent</quote>.</text>
</paragraph></subsection></section><section id="HB4A2FD93C07942079517E9FDDF8C6BA8"><enum>504.</enum><header>Reduction in
maximum amount of direct, counter-cyclical, and ACRE payments paid to producers
under Department of Agriculture commodity programs</header>
<subsection id="HCF13948FC5964FB794E78300E0942071"><enum>(a)</enum><header>Program
crops</header><text display-inline="yes-display-inline">Section 1001(b) of the
Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/7/1308">7 U.S.C. 1308(b)</external-xref>) is amended—</text>
<paragraph id="H50FF1627EC464B42AC915D46AEE3981B"><enum>(1)</enum><text>in paragraph
(1)(A), by striking <quote>$40,000</quote> and inserting
<quote>$20,000</quote>;</text>
</paragraph><paragraph id="HAF0D4379D9AB4884A38FE745F6E9DBA7"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>$65,000</quote> and inserting <quote>$32,500</quote>; and</text>
</paragraph><paragraph id="H4C633EEB0FB84797AE6ECFD263F1F3E3"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (3)(A), by striking
<quote>$65,000</quote> and inserting <quote>$32,500</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HB348F0A92CD34A2A86EC2499C3E99B04"><enum>(b)</enum><header>Peanuts</header><text display-inline="yes-display-inline">Section 1001(c) of the Food Security Act of
1985 (<external-xref legal-doc="usc" parsable-cite="usc/7/1308">7 U.S.C. 1308(b)</external-xref>) is amended—</text>
<paragraph id="HEF729BA78D6E44F4BC5757719135ACC1"><enum>(1)</enum><text>in paragraph
(1)(A), by striking <quote>$40,000</quote> and inserting
<quote>$20,000</quote>;</text>
</paragraph><paragraph id="HABEBE2419B6E4769A104C84B65932E82"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>$65,000</quote> and inserting <quote>$32,500</quote>; and</text>
</paragraph><paragraph id="H7B40ECFF0CD24BFBA5E2B29BF800D3C5"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (3)(A), by striking
<quote>$65,000</quote> and inserting <quote>$32,500</quote>.</text>
</paragraph></subsection></section><section id="H2D21E87D556A4FEA9DDE97890562C83"><enum>505.</enum><header>Consolidation of
military exchange stores system</header>
<subsection id="H330B3EAA28CC454BB0ACCB952BD42E67"><enum>(a)</enum><header>Consolidation</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/10/2487">Section 2487(b)</external-xref> of title 10, United States
Code, is amended—</text>
<paragraph id="HBEA5A010CC324F14B5C2578DA20031EE"><enum>(1)</enum><text>by redesignating
paragraph (2) as paragraph (3); and</text>
</paragraph><paragraph id="H061BAA4F9CB4404DAC1682BBC0D1B7C"><enum>(2)</enum><text>by
inserting after paragraph (1) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H7C88991C30F948D6825619D29CE14420" style="OLC">
<paragraph id="HCAB591A2EEE84032A900526461C04133" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Not later than two years after the date of
the enactment of the <short-title>Apollo Energy
Independence Act of 2008</short-title>, the Secretary of Defense shall complete
the consolidation of the exchange stores system, including the Army and Air
Force Exchange Service, the Navy Exchange Service Command, and Marine Corps
exchanges, into a single administrative entity to improve efficiencies and
enhance customer
service.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HE98F7E996BE140CF9724A25DD77F36FD"><enum>(b)</enum><header>Operating
costs</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/2491">Section 2491(b)</external-xref> of title 10, United States Code, is amended
by adding at the end the following new sentence: <quote>Following consolidation
of the exchange stores system, as required by section 2487(b) of this title,
all operating costs of the exchange stores system shall be covered by sales
revenues generated by the system or other nonappropriated fund
instrumentalities of the Department of Defense.</quote>.</text>
</subsection></section><section id="H41995A1FEDE34B6AA9FD209E8C0438E4"><enum>506.</enum><header>Revised pricing
structure for depot-level activities of the Department of Defense</header>
<subsection id="H08D57221713344BCB81E00E5548723E2"><enum>(a)</enum><header>Pricing
policy</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/146">Chapter 146</external-xref> of title 10, United States Code, is amended by
inserting after section 2470 the following new section:</text>
<quoted-block id="H0A280A97B67C4B6EACAB39BE95A4AEBD" style="USC">
<section id="HEFCA3948CE974BF5904BF609CC244513"><enum>2471.</enum><header>Depot-level
activities of the Department of Defense: pricing policy for services
rendered</header><text display-inline="no-display-inline">A depot-level
activity of the Department of Defense may charge only for the incremental cost
of repairs provided by the depot-level activity instead of including charges
for components (called depot-level repairables) for labor, materials, and
transportation and a share of the fixed costs of overhead. Fixed costs,
including overhead, shall be covered by an annual flat fee to
customers.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0D3073FFC4FB4CA6AACCE26E436917FC"><enum>(b)</enum><header>Clerical
Amendment</header><text>The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 2470 the following
new item:</text>
<quoted-block id="H3B781D8BC32F42D58DFAA0B0C29B949" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">2471. Depot-level activities of the
Department of Defense: pricing policy for services
rendered.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" id="H3B90ACD678264A32A73BEE2D6C0723BA"><enum>507.</enum><header>Restrict
Universal Service Fund support to 2 connections per household</header>
<subsection commented="no" id="HA2B960E0F3144098B5912FAF29C022C1"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 254(c) of the
Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/254">47 U.S.C. 254(c)</external-xref>) is amended by adding at the end
the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H91BEB88109DF4AA7BF14EA0559609CA7" style="OLC">
<paragraph commented="no" id="H6730F6ACD3E042F4B3AC0446513DA67B"><enum>(4)</enum><header>Exception</header><text display-inline="yes-display-inline">In carrying out paragraph (1), the
Commission shall promulgate regulations to specifically exclude the receipt of
universal service support by any eligible telecommunications carrier where such
support would provide for more than 2 connections per
household.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H53DC454AEB8C4747A2927F119C407854"><enum>(b)</enum><header>Disposition of
savings</header>
<paragraph commented="no" id="HD416005F3EBA4AA9898FD31D9D69E6C2"><enum>(1)</enum><header>Savings
calculation</header><text>The Commission shall direct the Administrator to
determine the amount of the net savings resulting from the implementation of
section 254(c)(4) of the Communications Act of 1934 (as added by subsection
(a)).</text>
</paragraph><paragraph commented="no" id="H6D0ECE8E91A746A7A2F77FFA402EA01"><enum>(2)</enum><header>Remission to the
Treasury</header><text>The Commission shall direct the Administrator to remit
to the Treasury of the United States an amount equivalent to the amount
determined under paragraph (1).</text>
</paragraph><paragraph commented="no" id="H077C6EEC63A549138669D53DDA91499B"><enum>(3)</enum><header>No
recalculation</header><text>The Commission shall direct the Administrator to
not make any adjustment to the amount of universal service support contributed
by telecommunications carriers under section 254(d) of the Communications Act
of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/254">47 U.S.C. 254(d)</external-xref>) to take into account the cost savings resulting from
section 254(c)(4) of such Act.</text>
</paragraph></subsection><subsection commented="no" id="H79ACC94F41A445B3B100BB98B53C91BF"><enum>(c)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph commented="no" id="H034032FADEB44904A34E168014344374"><enum>(1)</enum><header>Administrator</header><text>The
term <term>Administrator</term> means the Administrator designated by the
Commission to administer Federal universal service support programs pursuant to
section 254 of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/254">47 U.S.C. 254</external-xref>).</text>
</paragraph><paragraph commented="no" id="H0018CA1A340D485BBB644FC9647E5E54"><enum>(2)</enum><header>Commission</header><text>The
term <term>Commission</term> means the Federal Communications
Commission.</text>
</paragraph></subsection></section><section commented="no" id="HC1B0046F4239422785934CFCEEE5B41D"><enum>508.</enum><header>Improve
Treasury payment transaction integrity</header><text display-inline="no-display-inline">Section 1113(k)(1) of the Right to Financial
Privacy Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3413">12 U.S.C. 3413(k)(1)</external-xref>) is amended by inserting <quote>or
for purposes of tracing or recovering improper payments and collections by the
Secretary of the Treasury</quote> before the period at the end.</text>
</section><section commented="no" id="H5F4F2A29B9A84A2ABCBF4EFECAF962DA"><enum>509.</enum><header>Modernize
Treasury cash investment practices</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/31/323">Section 323</external-xref> of title 31, United States Code,
is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H506987198EC94E30ADC6C3DBD42EA7A7" style="OLC">
<subsection commented="no" id="H355C227E368B4CE300DDDD65AD75D3FF"><enum>(d)</enum><header>Repurchase
market investments</header><text display-inline="yes-display-inline">In
addition to the investments authorized under subsection (a), the Secretary may
invest any part of the operating cash of the Treasury in repurchase
transactions with acceptable parties in the repurchase
market.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H0435AC5D142D491E8B8258CBEAB88D36" section-type="subsequent-section"><enum>510.</enum><header>Food Safety and
Inspection Service user fees</header><text display-inline="no-display-inline">The Secretary of Agriculture shall establish
and collect user fees for inspection services provided under the Federal Meat
Inspection Act (<external-xref legal-doc="usc" parsable-cite="usc/21/601">21 U.S.C. 601 et seq.</external-xref>), the Poultry Products Inspection Act (21
U.S.C. 451 et seq.), and the Egg Products Inspection Act (21 U.S.C. 1031 et
seq.).</text>
</section>