110 HR 6544 IH: Clean Energy Tax Stimulus Act of 2008
U.S. House of Representatives
2008-07-17
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited
as the Relief Now on the Road to
Renewable Energy Act of 2008
.
(b)The table of
contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Title I—REFINERIES
Subtitle A—Tax Incentives
Sec. 101. Issuance of guidance.
Sec. 102. Tax-exempt financing of domestic use oil refinery
facilities.
Sec. 103. Designation and availability of Federal lands for oil
and natural gas refineries.
Subtitle B—Availability of Federal Lands
Sec. 111. Definitions.
Sec. 112. State participation and presidential
designation.
Sec. 113. Process coordination and rules of
procedure.
Sec. 114. Alternative uses of land.
Title II—Nuclear Energy
Sec. 201. Waste confidence.
Sec. 202. ASME Nuclear Certification credit.
Title III—Drilling
Subtitle A—Tax provisions
Sec. 301. Credit for producing fuel from nonconventional
sources to apply to gas produced onshore from formations more than 15,000 feet
deep.
Sec. 302. Tax credit for carbon dioxide captured from
industrial sources and used in enhanced oil and natural gas
recovery.
Subtitle B—Termination of congressional moratoria on oil and
gas development on the outer Continental Shelf
Sec. 311. Termination of laws prohibiting expenditures for oil
and natural gas leasing and preleasing activities regarding areas of the outer
continental shelf.
Subtitle C—Oil and gas development on the Coastal Plain of
Alaska
Sec. 321. Short title.
Sec. 322. Definitions.
Sec. 323. Leasing program for lands within the Coastal
Plain.
Sec. 324. Lease sales.
Sec. 325. Grant of leases by the Secretary.
Sec. 326. Lease terms and conditions.
Sec. 327. Coastal plain environmental protection.
Sec. 328. Expedited judicial review.
Sec. 329. Federal and State distribution of
revenues.
Sec. 330. Rights-of-way across the Coastal Plain.
Sec. 331. Conveyance.
Sec. 332. Local government impact aid and community service
assistance.
Title IV—Gas Price Tax Credit for Families and
Businesses
Sec. 401. Deduction for certain commuting expenses of
individuals.
Sec. 402. Tax credit for fuel expenses of truckers.
Title V—Coal-to-liquid fuel
Subtitle A—Coal to liquid fuel activities
Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Coal-to-liquid fuel loan guarantee
program.
Sec. 504. Coal-to-liquid facilities loan program.
Sec. 505. Location of coal-to-liquid manufacturing
facilities.
Sec. 506. Strategic Petroleum Reserve.
Sec. 507. Authorization to conduct research, development,
testing, and evaluation of assured domestic fuels.
Sec. 508. Coal-to-liquid long-term fuel procurement and
department of defense development.
Sec. 509. Report on emissions of Fischer-Tropsch products used
as transportation fuels.
Subtitle B—Amendments to the Internal Revenue Code of
1986
Sec. 511. Credit for investment in coal-to-liquid fuels
projects.
Sec. 512. Temporary expensing for equipment used in
coal-to-liquid fuels process.
Sec. 513. Extension of alternative fuel credit for fuel derived
from coal through the Fischer-Tropsch process.
Sec. 514. Modifications to enhanced oil recovery
credit.
Sec. 515. Allowance of enhanced oil, natural gas, and coalbed
methane recovery, and capture and sequestration credit against the alternative
minimum tax.
Title VI—Energy Efficient Tax Credit for Vehicles
Sec. 601. Credit for hybrids and plug-in hybrids.
Title VII—Extension and modification of tax
provisions
Sec. 700. Short title; etc.
Subtitle A—Extension of clean energy production
incentives
Sec. 701. Extension and modification of renewable energy
production tax credit.
Sec. 702. Extension and modification of solar energy and fuel
cell investment tax credit.
Sec. 703. Extension and modification of residential energy
efficient property credit.
Sec. 704. Extension and modification of credit for clean
renewable energy bonds.
Sec. 705. Extension of special rule to implement FERC
restructuring policy.
Sec. 706. Extension of wind production tax credit.
Subtitle B—Extension of incentives To improve energy
efficiency
Sec. 711. Extension and modification of credit for energy
efficiency improvements to existing homes.
Sec. 712. Extension and modification of tax credit for energy
efficient new homes.
Sec. 713. Extension and modification of energy efficient
commercial buildings deduction.
Sec. 714. Modification and extension of energy efficient
appliance credit for appliances produced after 2007.
Title VIII—Incentivizing the Extraction and Processing of Oil
Shale
Sec. 801. Incentives for extraction and processing of oil
shale.
Title IX—Land for Biofuel Production
Sec. 901. Lease of public lands for production of renewable
biomass for biofuels.
2.Congress finds the following:
(1)In recent months
gas prices across the country have risen to as much as over $4 per
gallon.
(2)High fuel costs
retard economic growth and diminish the quality of life for all
Americans.
(3)The trucking
industry is particularly hard hit by high fuel prices.
(4)The boutique fuel
requirement, under which certain regions require certain blends of gasoline,
contributes to the high price by impeding efficient transport of gasoline
across the country.
(5)Hidden taxes on
domestic oil companies are counterproductive and will inevitably be passed down
to the consumer, raising the price and making us more dependent on foreign oil
companies.
(6)Attempts to
address the issue of high gasoline costs by increasing government involvement
in the market through measures such as price controls will only lead to
shortages, rationing, and a return of gasoline lines.
(7)The Federal
regulations restricting drilling impose prohibitive costs on the development of
new sources of energy, artificially inflating the price of gas.
(8)It has been
estimated that oil shale deposits in Colorado, Utah, and Wyoming hold as little
as 1.8 trillion barrels of oil and as many as 8 trillion barrels.
(9)Federal gas taxes
increase the price of oil thus burdening American families, business, and
truckers.
(10)While oil
companies already have gas leases, the most promising areas for oil and gas
development are currently off limits (ANWR and the OCS).
(11)Allowing private
parties to delay, or even halt, the construction of new refineries through
litigation over the National Environmental Policy Act of 1969’s Environmental
Impact Statement requirement reduces the supply of gas thus raising gas
prices.
(12)Food sources
should not be used for the production of fuel, driving up food prices. Rather,
it is essential to designate specific land for biofuels while investing in
technology that can produce ethanol from nonfood sources.
(13)It is necessary
to invest in emission-free energy sources, such as wind and solar energy
technologies, to prepare for the future.
<enum>I</enum><header>REFINERIES</header>
<subtitle id="H496D7CD4514F461999CF11133C29C433"><enum>A</enum><header>Tax
Incentives</header>
<section id="HA659DA06BC004AD48B2DBDEEA9E6490"><enum>101.</enum><header>Issuance of
guidance</header><text display-inline="no-display-inline">The Secretary of the
Treasury shall, not later than 60 days after the date of the enactment of this
Act, prescribe the regulations described in paragraph (1) of section 179C(b) of
the Internal Revenue Code of 1986 (relating to election to expense certain
refineries).</text>
</section><section id="HA67215CA268940E1A0F4832369F523C9"><enum>102.</enum><header>Tax-exempt
financing of domestic use oil refinery facilities</header>
<subsection id="HD0CF5A8ECBB44479824F8D4D5CC9A9E7"><enum>(a)</enum><header>In
general</header>
<paragraph id="H55BEBC51662D458E90DD9229CC5D813B"><enum>(1)</enum><header>Treatment as
exempt facility bond</header><text>Subsection (a) of section 142 of the
Internal Revenue Code of 1986 (relating to exempt facility bond) is amended by
striking <quote>or</quote> at the end of paragraph (14), by striking the period
at the end of paragraph (15) and inserting <quote>, and</quote>, and by
inserting at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H716F325F68B64F8DB20548950366DA83" style="OLC">
<paragraph id="H3B0BA3EFD78E4AA7977C71B6D1C46976"><enum>(16)</enum><text>domestic use oil
refinery
facilities.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD7137AFE5E1E4E58A3AAAD38A68151DF"><enum>(2)</enum><header>Domestic use oil
refinery facilities</header><text>Section 142 of such Code is amended by adding
at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H064F798E2B684BA58025A8E781740073" style="OLC">
<subsection id="H7CECF07A3EA74653999FD4B2F6095414"><enum>(n)</enum><header>Domestic use oil
refinery facilities</header>
<paragraph id="H687051C1B82E4002894D271FC117E4BF"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (a)(16), the term
<term>domestic use oil refinery facility</term> means any facility in the
United States—</text>
<subparagraph id="HA688EBEB46414C75BE6B11E6D4361B68"><enum>(A)</enum><text>which processes
liquid fuel from crude oil, and</text>
</subparagraph><subparagraph id="H8DCECD092AA24B108C57B3752F796338"><enum>(B)</enum><text>all of the output
of which it is reasonably certain ultimate consumption will occur in the United
States.</text>
</subparagraph></paragraph><paragraph id="H8C6DD6ABBA854D28984591A1B0A213D"><enum>(2)</enum><header>Election to
terminate tax-exempt bond financing by certain refineries</header><text display-inline="yes-display-inline">In the case of a facility financed with
bonds which would cease to be tax-exempt by reason of the failure to meet the
domestic use requirement of this subsection, rules similar to the rules of
subsection (f)(4) shall apply for purposes of this
section.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H49DD16096CC344BC96BA85441FF5B899"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><section id="HCB0BA19D62BD4ECEBB66C0878288AF6F" section-type="subsequent-section"><enum>103.</enum><header>Designation and
availability of Federal lands for oil and natural gas refineries</header>
<subsection id="H220980E573884945881020C78C7BC3F5"><enum>(a)</enum><header>Designation</header><text>Within
18 months after the date of enactment of this Act, the President shall
designate at least ten sites on Federal lands that are suitable for the siting
of an oil refinery or natural gas refinery (or both).</text>
</subsection><subsection id="H66552863834E4828B167BC664CCF386B"><enum>(b)</enum><header>Availability of
lands</header><text>Within 24 months after the date of enactment of this Act,
the President shall make each site designated under subsection (a) available to
the private sector for construction of an oil refinery or natural gas refinery
(or both), as appropriate.</text>
</subsection></section></subtitle><subtitle id="H77E156B178AD4962A68B8EC86F556105"><enum>B</enum><header>Availability of
Federal Lands</header>
<section id="H3F6E829E579D420EA001FEE6FD3981CA" section-type="subsequent-section"><enum>111.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle—</text>
<paragraph id="HA8523011E1B84D63A909A252FA42EA63"><enum>(1)</enum><text>the term
<term>base closure law</term> means the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of <external-xref legal-doc="public-law" parsable-cite="pl/101/510">Public Law 101–510</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/10/2687">10 U.S.C. 2687</external-xref> note)
and title II of the Defense Authorization Amendments and Base Closure and
Realignment Act (<external-xref legal-doc="public-law" parsable-cite="pl/100/526">Public Law 100–526</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/10/2687">10 U.S.C. 2687</external-xref> note);</text>
</paragraph><paragraph id="HB1D4C3E2830A4F92BE4F142C318C29DD"><enum>(2)</enum><text>the term
<term>closed military installation</term> means a military installation closed
or approved for closure pursuant to a base closure law;</text>
</paragraph><paragraph id="H45CD9A99E0A44E5BB7E4263506E8ECAB"><enum>(3)</enum><text>the term
<quote>designated refinery</quote> means a refinery designated under section
112(a);</text>
</paragraph><paragraph id="HCF563C0B732348DC83006DBCD454575E"><enum>(4)</enum><text display-inline="yes-display-inline">the term <term>Federal refinery
authorization</term>—</text>
<subparagraph display-inline="no-display-inline" id="HF3479489BE014DAE989184024617B655"><enum>(A)</enum><text>means any
authorization required under Federal law, whether administered by a Federal or
State administrative agency or official, with respect to siting, construction,
expansion, or operation of a refinery; and</text>
</subparagraph><subparagraph id="HA884B83D0EB6445997E3F90637EFF300"><enum>(B)</enum><text>includes any
permits, special use authorizations, certifications, opinions, or other
approvals required under Federal law with respect to siting, construction,
expansion, or operation of a refinery;</text>
</subparagraph></paragraph><paragraph id="HCCC3AFBA393A46BB8BD9A8162E5470F0"><enum>(5)</enum><text>the term
<term>refinery</term> means—</text>
<subparagraph id="HB1176AB7153E44EBAEDB01687C4B8424"><enum>(A)</enum><text>a facility
designed and operated to receive, load, unload, store, transport, process, and
refine crude oil by any chemical or physical process, including distillation,
fluid catalytic cracking, hydrocracking, coking, alkylation, etherification,
polymerization, catalytic reforming, isomerization, hydrotreating, blending,
and any combination thereof, in order to produce gasoline or other fuel;
or</text>
</subparagraph><subparagraph id="H62FE988217B647D19FD01315C4A8B4D7"><enum>(B)</enum><text>a facility
designed and operated to receive, load, unload, store, transport, process, and
refine coal by any chemical or physical process, including liquefaction, in
order to produce gasoline, diesel, or other liquid fuel as its primary
output;</text>
</subparagraph></paragraph><paragraph id="HBCBE8612DEC14D5DA8CFFA279ECD1F41"><enum>(6)</enum><text>the term
<term>Secretary</term> means the Secretary of Energy; and</text>
</paragraph><paragraph id="HB46D57A6C2FA4AEC98650419881B43CE"><enum>(7)</enum><text>the term
<term>State</term> means a State, the District of Columbia, the Commonwealth of
Puerto Rico, and any other territory or possession of the United States.</text>
</paragraph></section><section id="H620FC7CD9BE245CA81004BD324DDF829"><enum>112.</enum><header>State
participation and presidential designation</header>
<subsection id="H02E5A620F80C4A488185F44DCAC3D977"><enum>(a)</enum><header>Designation
requirement</header><text>Not later than 90 days after the date of enactment of
this Act, the President shall designate no less than 3 closed military
installations, or portions thereof, subject to subsection (c)(2), that are
appropriate for the purposes of siting a refinery.</text>
</subsection><subsection id="HA1A3E67C5FCE407DBE35E9E62231E5CD"><enum>(b)</enum><header>Analysis of
refinery sites</header><text>In considering any site for possible designation
under subsection (a), the President shall conduct an analysis of—</text>
<paragraph id="H1A8050A1F914470AA37B5DCA6476537F"><enum>(1)</enum><text>the availability
of crude oil supplies to the site, including supplies from domestic production
of shale oil and tar sands and other strategic unconventional fuels;</text>
</paragraph><paragraph id="H808743D3827F48E5BD8408BDF9251C9E"><enum>(2)</enum><text>the distribution
of the Nation’s refined petroleum product demand;</text>
</paragraph><paragraph id="H6DFAD8E1C6BE42B0BE84E2A6BA59E463"><enum>(3)</enum><text>whether such site
is in close proximity to substantial pipeline infrastructure, including both
crude oil and refined petroleum product pipelines, and potential infrastructure
feasibility;</text>
</paragraph><paragraph id="H12E6642BA8FD44C4B53995E6DB9B74CB"><enum>(4)</enum><text>the need to
diversify the geographical location of the domestic refining capacity;</text>
</paragraph><paragraph id="HD129C79A6D8D41879F4019531F6EEE23"><enum>(5)</enum><text>the effect that
increased refined petroleum products from a refinery on that site may have on
the price and supply of gasoline to consumers;</text>
</paragraph><paragraph id="HB00716C9B28347BDADBF24E806FDA2F6"><enum>(6)</enum><text>the impact of
locating a refinery on the site on the readiness and operations of the Armed
Forces; and</text>
</paragraph><paragraph id="HB35521B17E21479498B7B69184D55C86"><enum>(7)</enum><text>such other factors
as the President considers appropriate.</text>
</paragraph></subsection><subsection id="H004F7C3B3BD94271B64F391E8BAA258B"><enum>(c)</enum><header>Sale or
disposal</header>
<paragraph id="HE7EF889DB3BD41A9835DF304D13E6885"><enum>(1)</enum><header>Designation</header><text>Except
as provided in paragraph (2), until the expiration of 2 years after the date of
enactment of this Act, the Federal Government shall not sell or otherwise
dispose of the military installations designated pursuant to subsection
(a).</text>
</paragraph><paragraph id="HEDACA8D2100547A68E372382080097BA"><enum>(2)</enum><header>Governor’s
objection</header><text>No site may be used for a refinery under this subtitle
if, not later than 60 days after designation of the site under subsection (a),
the Governor of the State in which the site is located transmits to the
President an objection to the designation, unless, not later than 60 days after
the President receives such objection, the Congress has by law overridden the
objection.</text>
</paragraph></subsection><subsection id="H7954C057D9EF4BC69F05A22544FC2DAF"><enum>(d)</enum><header>Redevelopment
authority</header><text>With respect to a closed military installation, or
portion thereof, designated by the President as a potentially suitable refinery
site pursuant to subsection (a)—</text>
<paragraph id="HF2AB68F3944D4ECA87038C61FC8569E"><enum>(1)</enum><text>the redevelopment
authority for the installation, in preparing or revising the redevelopment plan
for the installation, shall consider the feasibility and practicability of
siting a refinery on the installation; and</text>
</paragraph><paragraph id="H19D04D9EDF9546009E30A8D6F671E2F9"><enum>(2)</enum><text>the Secretary of
Defense, in managing and disposing of real property at the installation
pursuant to the base closure law applicable to the installation, shall give
substantial deference to the recommendations of the redevelopment authority, as
contained in the redevelopment plan for the installation, regarding the siting
of a refinery on the installation.</text>
</paragraph></subsection></section><section id="HB53EE620DE9B4CBE81164775342C8C42"><enum>113.</enum><header>Process
coordination and rules of procedure</header>
<subsection id="HBD01049B178D455D0007EA60C1D6FDF8"><enum>(a)</enum><header>Designation as
Lead Agency</header>
<paragraph id="H18BFCFC3E5C545009575874344BD8F93"><enum>(1)</enum><header>In
general</header><text>The Department of Energy shall act as the lead agency for
the purposes of coordinating all applicable Federal refinery authorizations and
related environmental reviews with respect to a designated refinery.</text>
</paragraph><paragraph id="H73CB3CF8DFC749FCAF5CFFFED91903D1"><enum>(2)</enum><header>Other
agencies</header><text>Each Federal and State agency or official required to
provide a Federal refinery authorization shall cooperate with the Secretary and
comply with the deadlines established by the Secretary.</text>
</paragraph></subsection><subsection id="H77340F368049454885AD45A69F44A4D7"><enum>(b)</enum><header>Schedule</header>
<paragraph id="H4B5075E9D6A24AF800BD38E9EB684EAA"><enum>(1)</enum><header>Secretary’s
authority to set schedule</header><text>The Secretary shall establish a
schedule for all Federal refinery authorizations with respect to a designated
refinery. In establishing the schedule, the Secretary shall—</text>
<subparagraph id="H65189A60990B433F97A7A29E440059D8"><enum>(A)</enum><text>ensure expeditious
completion of all such proceedings; and</text>
</subparagraph><subparagraph id="HCC753F9722FB452C00E3B00FA033532"><enum>(B)</enum><text>accommodate the
applicable schedules established by Federal law for such proceedings.</text>
</subparagraph></paragraph><paragraph id="H39FC0B7BCFAF4287BD3662EAB1D020DC"><enum>(2)</enum><header>Failure to meet
schedule</header><text>If a Federal or State administrative agency or official
does not complete a proceeding for an approval that is required for a Federal
refinery authorization in accordance with the schedule established by the
Secretary under this subsection, the applicant may pursue remedies under
subsection (d).</text>
</paragraph></subsection><subsection id="HC8FCCA5CF6F641D8B602F2E309F3406E"><enum>(c)</enum><header>Consolidated
Record</header><text>The Secretary shall, with the cooperation of Federal and
State administrative agencies and officials, maintain a complete consolidated
record of all decisions made or actions taken by the Secretary or by a Federal
administrative agency or officer (or State administrative agency or officer
acting under delegated Federal authority) with respect to any Federal refinery
authorization. Such record shall be the record for judicial review under
subsection (d) of decisions made or actions taken by Federal and State
administrative agencies and officials, except that, if the Court determines
that the record does not contain sufficient information, the Court may remand
the proceeding to the Secretary for further development of the consolidated
record.</text>
</subsection><subsection id="H675DA4FE6C47428FA07C7C00E98E751C"><enum>(d)</enum><header>Judicial
Review</header>
<paragraph id="HE1218DACDB534286B1D5DD7545FC294"><enum>(1)</enum><header>In
general</header><text>The United States Court of Appeals for the District of
Columbia shall have original and exclusive jurisdiction over any civil action
for the review of—</text>
<subparagraph id="HF2EEAF7CBA7C48F49351A086A525E14F"><enum>(A)</enum><text>an order or
action, related to a Federal refinery authorization, by a Federal or State
administrative agency or official; and</text>
</subparagraph><subparagraph id="H327557AE957A4F5289C2B517B3F75304"><enum>(B)</enum><text>an alleged failure
to act by a Federal or State administrative agency or official acting pursuant
to a Federal refinery authorization.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">The failure
of an agency or official to act on a Federal refinery authorization in
accordance with the Secretary’s schedule established pursuant to subsection (b)
shall be considered inconsistent with Federal law for the purposes of paragraph
(2) of this subsection.</continuation-text></paragraph><paragraph id="HBD33D849B21C497183A27BB9CD8138D"><enum>(2)</enum><header>Court
action</header><text>If the Court finds that an order or action described in
paragraph (1)(A) is inconsistent with the Federal law governing such Federal
refinery authorization, or that a failure to act as described in paragraph
(1)(B) has occurred, and the order, action, or failure to act would prevent the
siting, construction, expansion, or operation of the designated refinery, the
Court shall remand the proceeding to the agency or official to take appropriate
action consistent with the order of the Court. If the Court remands the order,
action, or failure to act to the Federal or State administrative agency or
official, the Court shall set a reasonable schedule and deadline for the agency
or official to act on remand.</text>
</paragraph><paragraph id="HFF2C3AC7FFAB46C4BBFE18C43532B069"><enum>(3)</enum><header>Secretary’s
action</header><text>For any civil action brought under this subsection, the
Secretary shall promptly file with the Court the consolidated record compiled
by the Secretary pursuant to subsection (c).</text>
</paragraph><paragraph id="HA85A068EEF244916B7165745AE36BB3"><enum>(4)</enum><header>Expedited
review</header><text>The Court shall set any civil action brought under this
subsection for expedited consideration.</text>
</paragraph><paragraph id="H4EF62F9F2D9C47E8864108B8000104B1"><enum>(5)</enum><header>Attorney’s
fees</header><text>In any action challenging a Federal refinery authorization
that has been granted, reasonable attorney’s fees and other expenses of
litigation shall be awarded to the prevailing party. This paragraph shall not
apply to any action seeking remedies for denial of a Federal refinery
authorization or failure to act on an application for a Federal refinery
authorization.</text>
</paragraph></subsection></section><section id="H31563982946742CA00EB6B0410762E5"><enum>114.</enum><header>Alternative uses
of land</header><text display-inline="no-display-inline">Any land designated
under section 112(a) that has not been used for an oil refinery within 10 years
after such designation shall be made available for leasing for renewable energy
development purposes, such as wind or solar energy installations or an ethanol
refinery.</text>
</section></subtitle><enum>II</enum><header>Nuclear
Energy</header>
<section id="H155AB786EE594D60AA4EB322B1DDE500"><enum>201.</enum><header>Waste
confidence</header><text display-inline="no-display-inline">The Nuclear
Regulatory Commission may not deny an application for a license, permit, or
other authorization under the Atomic Energy Act of 1954 on the grounds that
sufficient capacity does not exist, or will not become available on a timely
basis, for disposal of spent nuclear fuel or high-level radioactive waste from
the facility for which the license, permit, or other authorization is
sought.</text>
</section><section id="H25353C55DA334CB0B9482000F5A164BD"><enum>202.</enum><header>ASME Nuclear
Certification credit</header>
<subsection id="HFFB2BB6CA6314A0CA79D631D9E7DC535"><enum>(a)</enum><header>In
general</header><text>Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to business related credits) is amended
by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H62FF90CE98AE4A56A55BC3803D1C8843" style="OLC">
<section id="HF95663A3E9094C31AA3FAF2E3B9700E7"><enum>45Q.</enum><header>ASME Nuclear
Certification credit</header>
<subsection id="H8953A34F80A041E0862FFB57628746B6"><enum>(a)</enum><header>In
general</header><text>For purposes of section 38, the ASME Nuclear
Certification credit determined under this section for any taxable year is an
amount equal to 15 percent of the qualified nuclear expenditures paid or
incurred by the taxpayer.</text>
</subsection><subsection id="H0AFC591C40824CCFBE97A6F438D82BE5"><enum>(b)</enum><header>Qualified
nuclear expenditures</header><text>For purposes of this section, the term
<term>qualified nuclear expenditures</term> means any expenditure related
to—</text>
<paragraph id="H16D06316A0714F32BD31C69C1714F114"><enum>(1)</enum><text display-inline="yes-display-inline">obtaining a certification under the
American Society of Mechanical Engineers Nuclear Component Certification
program, or</text>
</paragraph><paragraph id="H8387B3098DAB46B7B912ACF8A097433"><enum>(2)</enum><text display-inline="yes-display-inline">increasing the taxpayer’s capacity to
construct, fabricate, assemble, or install components—</text>
<subparagraph id="HEB69A4232AAE4E709E973705B149A1AA"><enum>(A)</enum><text>for any facility
which uses nuclear energy to produce electricity, and</text>
</subparagraph><subparagraph id="HC5E7D97F52164DB18EADBBFE5ED4764"><enum>(B)</enum><text>with respect to the
construction, fabrication, assembly, or installation of which the taxpayer is
certified under such program.</text>
</subparagraph></paragraph></subsection><subsection id="H4D9B996FB725457098AEDCF95126676E"><enum>(c)</enum><header>Timing of
credit</header><text>The credit allowed under subsection (a) for any
expenditures shall be allowed—</text>
<paragraph commented="no" id="H78575CC88C694B4AB2EC7F789402C8E6"><enum>(1)</enum><text>in the case of a
qualified nuclear expenditure described in subsection (b)(1), for the taxable
year of such certification, and</text>
</paragraph><paragraph id="H53B686CC0D28473FB02465AA6F013F70"><enum>(2)</enum><text>in the case of any
other qualified nuclear expenditure, for the taxable year in which such
expenditure is paid or incurred.</text>
</paragraph></subsection><subsection id="HB07F14C1032746F2AEC1846FC224BF90"><enum>(d)</enum><header>Special
rules</header>
<paragraph id="H3ED0A84F65144D7C009630CFDFE95338"><enum>(1)</enum><header>Basis
adjustment</header><text display-inline="yes-display-inline">For purposes of
this subtitle, if a credit is allowed under this section for an expenditure,
the increase in basis which would result (but for this subsection) for such
expenditure shall be reduced by the amount of the credit allowed under this
section.</text>
</paragraph><paragraph id="HE8AD2E1F41DA4EE09C9BDDBFBA97DEC6"><enum>(2)</enum><header>Denial of double
benefit</header><text display-inline="yes-display-inline">No deduction shall be
allowed under this chapter for any amount taken into account in determining the
credit under this section.</text>
</paragraph></subsection><subsection id="H8C8B9D1D26CC4D8EB4BBCC5DBA00C51B"><enum>(e)</enum><header>Termination</header><text>This
section shall not apply to any expenditures paid or incurred in taxable years
beginning after December 31,
2019.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H335C5D7502214095A8C276ACFA43D209"><enum>(b)</enum><header>Conforming
amendments</header><paragraph commented="no" display-inline="yes-display-inline" id="HD23E87805A5C4961B4E200B82E5DA031"><enum>(1)</enum><text>Subsection (b) of
section 38 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 display-inline="no-display-inline" id="H66B57AAEB7CB4316B3669D965C6600FC" style="OLC">
<paragraph id="HA1201389E189483896C6302428054647"><enum>(34)</enum><text display-inline="yes-display-inline">the ASME Nuclear Certification credit
determined under section
45Q(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H952A3B665C714A439489E2F4586988FE" indent="up1"><enum>(2)</enum><text>Subsection (a) of section 1016
(relating to adjustments to basis) is amended by striking <quote>and</quote> at
the end of paragraph (36), by striking the period at the end of paragraph (37)
and inserting <quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H5457788AD8AD4746B816A6B36E002327" style="OLC">
<paragraph id="H48EC9DF6916B42289FE6153C0078AD21"><enum>(38)</enum><text>to the extent
provided in section
45Q(e)(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HA521C3FF04AB4FFABAB0D87B332848C5"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code (relating to other credits) is amended
by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H50C13EAB133C45E489B8C84BE41CD719" style="OLC">
<toc container-level="quoted-block-container" idref="H22EBAEDB5C5F4065A5B2821397C0D17" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H93EAF3F9E45D4747BF6F7194951D0034" level="section">Sec. 45R. Credit for carbon dioxide captured from industrial
sources and used as a tertiary injectant in enhanced oil and natural gas
recovery.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HEB981162ECD44A77A4547919FC7EE903"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
expenditures paid or incurred in taxable years beginning after December 31,
2007.</text>
</subsection></section><enum>III</enum><header>Drilling</header>
<subtitle id="H1C16283500BC4DE391048B6DA5920081"><enum>A</enum><header>Tax
provisions</header>
<section id="H912AF0BB4C104828AC636E5E8D589BEA"><enum>301.</enum><header>Credit for
producing fuel from nonconventional sources to apply to gas produced onshore
from formations more than 15,000 feet deep</header>
<subsection id="HB3DB507F59B64CB7AE746B0121A75776"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
<external-xref legal-doc="usc" parsable-cite="usc/26/45K">section 45K(c)(1)</external-xref> of the Internal Revenue Code of 1986 is amended by striking
<quote>or</quote> at the end of clause (i), by striking <quote>and</quote> at
the end of clause (ii) and inserting <quote>or</quote>, and by inserting after
clause (ii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H13F5B4223AE44CC3AE84331B28917CE8" style="OLC">
<clause id="H7438871557FE43B8A0E1F3542C9B873"><enum>(iii)</enum><text display-inline="yes-display-inline">an onshore well from a formation more than
15,000 feet deep,
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0C1D9CCE105640CFA4D8D6EC35B92236"><enum>(b)</enum><header>Eligible deep
gas wells</header><text>Section 45K of such Code is amended by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HD09CAA4F7314478387F8007899A7DFEA" style="OLC">
<subsection id="HAB8C692E3FB743F78F5CDAC8BFE53200"><enum>(h)</enum><header>Eligible deep
gas wells</header><text display-inline="yes-display-inline">In the case of a
well producing qualified fuel described in subsection (c)(1)(B)(iii)—</text>
<paragraph id="H0EAEB2170B4445F78829BC88B0722ED"><enum>(1)</enum><text display-inline="yes-display-inline">for purposes of subsection (e)(1)(A), such
well shall be treated as drilled before January 1, 1993, if such well is
drilled after the date of the enactment of this subsection, and</text>
</paragraph><paragraph id="H1A447CB907B24AF500A21744D8AD1C86"><enum>(2)</enum><text display-inline="yes-display-inline">subsection (e)(2) shall not
apply.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H753D30DB025B4B1380CCB1BEF5D86EE"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years ending after the date of the
enactment of this Act.</text>
</subsection></section><section id="HB887051599B44F1096211D389E3E538C" section-type="subsequent-section"><enum>302.</enum><header>Tax credit for
carbon dioxide captured from industrial sources and used in enhanced oil and
natural gas recovery</header>
<subsection id="HFA4ABD5BBD644432B810342610074D2E"><enum>(a)</enum><header>In
general</header><text>Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to business credits), as amended by
this Act, is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H22EBAEDB5C5F4065A5B2821397C0D17" style="OLC">
<section id="H93EAF3F9E45D4747BF6F7194951D0034"><enum>45R.</enum><header>Credit for
carbon dioxide captured from industrial sources and used as a tertiary
injectant in enhanced oil and natural gas recovery</header>
<subsection id="H2E8AF898BD2F487B00F0BB8229E65DC0"><enum>(a)</enum><header>General
rule</header><text display-inline="yes-display-inline">For purposes of section
38, the captured carbon dioxide tertiary injectant credit for any taxable year
is an amount equal to the product of—</text>
<paragraph id="H7072C8E349164AF1A785BE6671330766"><enum>(1)</enum><text>the credit amount,
and</text>
</paragraph><paragraph id="HF4350B9F0978494980BE8990A96088E1"><enum>(2)</enum><text>the qualified
carbon dioxide captured from industrial sources and used as a tertiary
injectant in qualified enhanced oil and natural gas recovery which is
attributable to the taxpayer.</text>
</paragraph></subsection><subsection id="HDC5931F2609549E3AA4C86961B0960A2"><enum>(b)</enum><header>Credit
amount</header><text>For purposes of this section—</text>
<paragraph id="H39FD2C7927A04BC1B5016EBFF9C2785"><enum>(1)</enum><header>In
general</header><text>The credit amount is $0.75 per 1,000 standard cubic
feet.</text>
</paragraph><paragraph id="H62F0584EA7DA4CFA8BDCEA1103406BC"><enum>(2)</enum><header>Inflation
adjustment</header><text display-inline="yes-display-inline">In the case of any
taxable year beginning in a calendar year after 2007, there shall be
substituted for the $0.75 amount under paragraph (1) an amount equal to the
product of—</text>
<subparagraph id="HE72F7B9C549B4CD39B00782128408FE8"><enum>(A)</enum><text display-inline="yes-display-inline">$0.75, multiplied by</text>
</subparagraph><subparagraph id="HED04235D0ADF44D1A38CA9440323C460"><enum>(B)</enum><text>the inflation
adjustment factor for such calendar year determined under section 43(b)(3)(B)
for such calendar year, determined by substituting <quote>2006</quote> for
<quote>1990</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H4E7259925A7E4B498B04E6BBFF8B33DC"><enum>(c)</enum><header>Qualified carbon
dioxide</header><text>For purposes of this section—</text>
<paragraph id="HF5D3ED2C233A42778E58FA72AACB2D8D"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified carbon dioxide</term> means
carbon dioxide captured from an anthropogenic source that—</text>
<subparagraph id="H25DC6785B28A4AD885B200996106EEEC"><enum>(A)</enum><text>would otherwise be
released into the atmosphere as industrial emission of greenhouse gas,</text>
</subparagraph><subparagraph id="HA852ADDA800B4E3DAE8E85F968627307"><enum>(B)</enum><text>is measurable at
the source of capture,</text>
</subparagraph><subparagraph id="HF4C1E39D9F694AE88B4DAA70BF395900"><enum>(C)</enum><text>is compressed,
treated, and transported via pipeline,</text>
</subparagraph><subparagraph id="H31F59D4415604D7899DA77A42F10079E"><enum>(D)</enum><text>is sold as a
tertiary injectant in qualified enhanced oil and natural gas recovery,
and</text>
</subparagraph><subparagraph id="HA11CF34FEB494980A98800D2BF6A327"><enum>(E)</enum><text>is permanently
sequestered in geological formations as a result of the enhanced oil and
natural gas recovery process.</text>
</subparagraph></paragraph><paragraph id="H83729627C9B44217B8A547C5607C23E"><enum>(2)</enum><header>Anthropogenic
source</header><text display-inline="yes-display-inline">An anthropogenic
source of carbon dioxide is an industrial source, including any of the
following types of plants, and facilities related to such plant—</text>
<subparagraph id="H4C6C5D21A0F84EB0896CB303EC5F8626"><enum>(A)</enum><text display-inline="yes-display-inline">a coal and natural gas fired electrical
generating power station,</text>
</subparagraph><subparagraph id="H79E96BED58AF4A0AA44E7D8982DA6C72"><enum>(B)</enum><text display-inline="yes-display-inline">a natural gas processing and treating
plant,</text>
</subparagraph><subparagraph id="H5BCF53C8E1064BCAB66435360002B96D"><enum>(C)</enum><text display-inline="yes-display-inline">an ethanol plant,</text>
</subparagraph><subparagraph id="H0530FE7ACD3E49BDBB6C6DD07D9B8363"><enum>(D)</enum><text display-inline="yes-display-inline">a fertilizer plant, and</text>
</subparagraph><subparagraph id="H3549A5F6EFCA47F586B49C3270D5041C"><enum>(E)</enum><text>a chemical
plant.</text>
</subparagraph></paragraph><paragraph id="HF7778A05FAAF4E7A8ED0B533BFC11AF"><enum>(3)</enum><header>Definitions</header>
<subparagraph id="H3E6FFEB549A64D4D9D504F7CA92F49A2"><enum>(A)</enum><header>Qualified
enhanced oil and natural gas recovery</header><text>The term <term>qualified
enhanced oil and natural gas recovery</term> has the meaning given such term by
section 43(c)(2).</text>
</subparagraph><subparagraph id="HA559238F0CA14780A7E18DBA97A0C007"><enum>(B)</enum><header>Tertiary
injectant</header><text>The term <term>tertiary injectant</term> has the same
meaning as when used within section 193(b)(1).</text>
</subparagraph></paragraph></subsection><subsection id="H6442418EC0A64C97AFE28F0079F7B000"><enum>(d)</enum><header>Other
definitions and special rules</header><text>For purposes of this
section—</text>
<paragraph id="H1D9097BC07C941CAA23D48D3EDC4C9DC"><enum>(1)</enum><header>Only carbon
dioxide captured within the United States taken into
account</header><text>Sales shall be taken into account under this section only
with respect to qualified carbon dioxide of which is within—</text>
<subparagraph id="H8FECE0D9023945608B09E7DE86BFCB"><enum>(A)</enum><text>the United States
(within the meaning of section 638(1)), or</text>
</subparagraph><subparagraph id="HBA7BACFB93294DCB85593FA000361473"><enum>(B)</enum><text>a possession of
the United States (within the meaning of section 638(2)).</text>
</subparagraph></paragraph><paragraph id="H44DB2545FD4049299FEFD400D0CB38DB"><enum>(2)</enum><header>Recycled carbon
dioxide</header><text>The term <term>qualified carbon dioxide</term> includes
the initial deposit of captured carbon dioxide used as a tertiary injectant.
Such term does not include carbon dioxide that is re-captured, recycled, and
re-injected as part of the enhanced oil and natural gas recovery
process.</text>
</paragraph><paragraph id="HFD0A93CD36DE4D86BD0460F7747D43E6"><enum>(3)</enum><header>Credit
attributable to taxpayer</header><text>Any credit under this section shall be
attributable to the person that captures, treats, compresses, transports and
sells the carbon dioxide for use as a tertiary injectant in enhanced oil and
natural gas recovery, except to the extent provided in regulations prescribed
by the
Secretary.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H2189E5B0D3D44D6096AD6D83B777A4ED"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 38(b) of such Code (relating to general
business credit), as amended by this Act, is amended by striking
<quote>plus</quote> at the end of paragraph (33), by striking the period at the
end of paragraph (34) and inserting <quote>, plus</quote>, and by adding at the
end of following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H53D61B6429BD43C18F53A7005FB6A5AC" style="OLC">
<paragraph id="HC4B1C36695FA4153B714A2E025E8C8BA"><enum>(35)</enum><text display-inline="yes-display-inline">the captured carbon dioxide tertiary
injectant credit determined under section
45R(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H58990026757D47D58B0092B355DD7B9E"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code (relating to other credits) is amended
by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H13A35869F14C4217AC964F846400DB2C" style="OLC">
<toc container-level="quoted-block-container" idref="H22EBAEDB5C5F4065A5B2821397C0D17" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H93EAF3F9E45D4747BF6F7194951D0034" level="section">Sec. 45R. Credit for carbon dioxide captured from industrial
sources and used as a tertiary injectant in enhanced oil and natural gas
recovery.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF10643948C574EB08C3B8488C702783E"><enum>(d)</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></subtitle><subtitle id="H8F6C41B474C74EC1A315E6668D7B65B7"><enum>B</enum><header>Termination of
congressional moratoria on oil and gas development on the outer Continental
Shelf</header>
<section id="H135FA97D9B214CF8BC4C89C5D0616926"><enum>311.</enum><header>Termination of
laws prohibiting expenditures for oil and natural gas leasing and preleasing
activities regarding areas of the outer continental shelf</header><text display-inline="no-display-inline">All provisions of existing Federal law
prohibiting the spending of appropriated funds to conduct oil and natural gas
leasing and preleasing activities for any area of the Outer Continental Shelf
shall have no force or effect.</text>
</section></subtitle><subtitle id="HF64000F2E4414F12B60601009B88E950"><enum>C</enum><header>Oil and gas
development on the Coastal Plain of Alaska</header>
<section display-inline="no-display-inline" id="H55F1336B5A754033A78531CFCC12D942" section-type="subsequent-section"><enum>321.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>American-Made Energy and
Good Jobs Act</short-title></quote>.</text>
</section><section id="HD3EA631A9ACF4F34B10089EB3BC3D49F"><enum>322.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="H7A8771C91FE14DC6ACC546D150C2D0B7"><enum>(1)</enum><header>Coastal
Plain</header><text>The term <term>Coastal Plain</term> means that area
described in appendix I to part 37 of title 50, Code of Federal
Regulations.</text>
</paragraph><paragraph id="HEDDA9A26936346A0B7DCA0816DBF45AC"><enum>(2)</enum><header>Secretary</header><text>The
term <term>Secretary</term>, except as otherwise provided, means the Secretary
of the Interior or the Secretary’s designee.</text>
</paragraph></section><section id="H7D28F8A4DF074318A6D1BD8813ED1455"><enum>323.</enum><header>Leasing program
for lands within the Coastal Plain</header>
<subsection id="HB40168C111844F908921C6D86ED0087"><enum>(a)</enum><header>In
general</header><text>The Secretary shall take such actions as are
necessary—</text>
<paragraph id="H9B8AB86C944842A2A7C6BD977D7F7CFD"><enum>(1)</enum><text>to establish and
implement, in accordance with this subtitle and acting through the Director of
the Bureau of Land Management in consultation with the Director of the United
States Fish and Wildlife Service, a competitive oil and gas leasing program
that will result in an environmentally sound program for the exploration,
development, and production of the oil and gas resources of the Coastal Plain;
and</text>
</paragraph><paragraph id="H4330AA1A62C34A0DB2B773C5BC56D8B"><enum>(2)</enum><text>to
administer the provisions of this subtitle through regulations, lease terms,
conditions, restrictions, prohibitions, stipulations, and other provisions that
ensure the oil and gas exploration, development, and production activities on
the Coastal Plain will result in no significant adverse effect on fish and
wildlife, their habitat, subsistence resources, and the environment, including,
in furtherance of this goal, by requiring the application of the best
commercially available technology for oil and gas exploration, development, and
production to all exploration, development, and production operations under
this subtitle in a manner that ensures the receipt of fair market value by the
public for the mineral resources to be leased.</text>
</paragraph></subsection><subsection id="H57A0170BFB6C44D6AE8243A7F8D23F31"><enum>(b)</enum><header>Repeal</header>
<paragraph id="HF677F46C009A459A9DB42490B4F7E0CD"><enum>(1)</enum><header>Repeal</header><text>Section
1003 of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C.
3143) is repealed.</text>
</paragraph><paragraph id="HE068813C7EAC4E318F4F9BD67F847682"><enum>(2)</enum><header>Conforming
amendment</header><text>The table of contents in section 1 of such Act is
amended by striking the item relating to section 1003.</text>
</paragraph></subsection><subsection id="H565B507F37744C7EAF1CA60000E687FE"><enum>(c)</enum><header>Compliance with
requirements under certain other laws</header>
<paragraph id="H9670FE55ED574E83857787F9DE9CDD6B"><enum>(1)</enum><header>Compatibility</header><text>For
purposes of the National Wildlife Refuge System Administration Act of 1966 (16
U.S.C. 668dd et seq.), the oil and gas leasing program and activities
authorized by this section in the Coastal Plain are deemed to be compatible
with the purposes for which the Arctic National Wildlife Refuge was
established, and no further findings or decisions are required to implement
this determination.</text>
</paragraph><paragraph id="H5449D5BDBC7247798FF3C2898DD642E0"><enum>(2)</enum><header>Adequacy of the
Department of the Interior’s legislative environmental impact
statement</header><text>The <quote>Final Legislative Environmental Impact
Statement</quote> (April 1987) on the Coastal Plain prepared pursuant to
section 1002 of the Alaska National Interest Lands Conservation Act of 1980 (16
U.S.C. 3142) and section 102(2)(C) of the National Environmental Policy Act of
1969 (<external-xref legal-doc="usc" parsable-cite="usc/42/4332">42 U.S.C. 4332(2)(C)</external-xref>) is deemed to satisfy the requirements under the
National Environmental Policy Act of 1969 that apply with respect to prelease
activities, including actions authorized to be taken by the Secretary to
develop and promulgate the regulations for the establishment of a leasing
program authorized by this subtitle before the conduct of the first lease
sale.</text>
</paragraph><paragraph id="H59C8F261068C4E4FA281933664B5A5BD"><enum>(3)</enum><header>Compliance with
NEPA for other actions</header><text>Before conducting the first lease sale
under this subtitle, the Secretary shall prepare an environmental impact
statement under the National Environmental Policy Act of 1969 with respect to
the actions authorized by this Act that are not referred to in paragraph (2).
Notwithstanding any other law, the Secretary is not required to identify
nonleasing alternative courses of action or to analyze the environmental
effects of such courses of action. The Secretary shall only identify a
preferred action for such leasing and a single leasing alternative, and analyze
the environmental effects and potential mitigation measures for those two
alternatives. The identification of the preferred action and related analysis
for the first lease sale under this subtitle shall be completed within 18
months after the date of enactment of this Act. The Secretary shall only
consider public comments that specifically address the Secretary’s preferred
action and that are filed within 20 days after publication of an environmental
analysis. Notwithstanding any other law, compliance with this paragraph is
deemed to satisfy all requirements for the analysis and consideration of the
environmental effects of proposed leasing under this subtitle.</text>
</paragraph></subsection><subsection id="H7A2864BF0A854888B8E160B890417514"><enum>(d)</enum><header>Relationship to
State and local authority</header><text>Nothing in this subtitle shall be
considered to expand or limit State and local regulatory authority.</text>
</subsection><subsection id="H4E5522C415894591974061CA042311E3"><enum>(e)</enum><header>Special
areas</header>
<paragraph id="H39D931F03EB941D39E06BAB2D862FD7"><enum>(1)</enum><header>In
general</header><text>The Secretary, after consultation with the State of
Alaska, the city of Kaktovik, and the North Slope Borough, may designate up to
a total of 45,000 acres of the Coastal Plain as a Special Area if the Secretary
determines that the Special Area is of such unique character and interest so as
to require special management and regulatory protection. The Secretary shall
designate as such a Special Area the Sadlerochit Spring area, comprising
approximately 4,000 acres.</text>
</paragraph><paragraph id="H166974CC9D10407181EBC821094FDE16"><enum>(2)</enum><header>Management</header><text>Each
such Special Area shall be managed so as to protect and preserve the area’s
unique and diverse character including its fish, wildlife, and subsistence
resource values.</text>
</paragraph><paragraph id="H46B367DE06D24B42878D22A2B2FCC8D4"><enum>(3)</enum><header>Exclusion from
leasing or surface occupancy</header><text>The Secretary may exclude any
Special Area from leasing. If the Secretary leases a Special Area, or any part
thereof, for purposes of oil and gas exploration, development, production, and
related activities, there shall be no surface occupancy of the lands comprising
the Special Area.</text>
</paragraph><paragraph id="HDB59D1A4CF0947C3BB774098DE207599"><enum>(4)</enum><header>Directional
drilling</header><text>Notwithstanding the other provisions of this subsection,
the Secretary may lease all or a portion of a Special Area under terms that
permit the use of horizontal drilling technology from sites on leases located
outside the Special Area.</text>
</paragraph></subsection><subsection id="HAFC4379AB438468AA218CF6B63EE9D00"><enum>(f)</enum><header>Limitation on
closed areas</header><text>The Secretary’s sole authority to close lands within
the Coastal Plain to oil and gas leasing and to exploration, development, and
production is that set forth in this subtitle.</text>
</subsection><subsection id="H2B937A83ECCA4585B20000FF512CBEFA"><enum>(g)</enum><header>Regulations</header>
<paragraph id="H921C057326F24D3085DC12A237EB7FC2"><enum>(1)</enum><header>In
general</header><text>The Secretary shall prescribe such regulations as may be
necessary to carry out this subtitle, including rules and regulations relating
to protection of the fish and wildlife, their habitat, subsistence resources,
and environment of the Coastal Plain, by no later than 15 months after the date
of enactment of this Act.</text>
</paragraph><paragraph id="H090D62C066D84A8A9BCA55DE45B331C5"><enum>(2)</enum><header>Revision of
regulations</header><text>The Secretary shall periodically review and, if
appropriate, revise the rules and regulations issued under subsection (a) to
reflect any significant biological, environmental, or engineering data that
come to the Secretary’s attention.</text>
</paragraph></subsection></section><section id="HA712CD617233412498B16292203FCD79"><enum>324.</enum><header>Lease
sales</header>
<subsection id="H9451FC5ED7764DADBAAE89E15E6F1C38"><enum>(a)</enum><header>In
general</header><text>Lands may be leased pursuant to this subtitle to any
person qualified to obtain a lease for deposits of oil and gas under the
Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/181">30 U.S.C. 181 et seq.</external-xref>).</text>
</subsection><subsection id="HC3D6EE0AE14945ABB306003F0558BF58"><enum>(b)</enum><header>Procedures</header><text>The
Secretary shall, by regulation, establish procedures for—</text>
<paragraph id="HF799442EE4EC480CBE7729795F75F52C"><enum>(1)</enum><text>receipt and
consideration of sealed nominations for any area in the Coastal Plain for
inclusion in, or exclusion (as provided in subsection (c)) from, a lease
sale;</text>
</paragraph><paragraph id="HC962D11854344B70B25F0977DB1A178"><enum>(2)</enum><text>the holding of
lease sales after such nomination process; and</text>
</paragraph><paragraph id="H11385ACADF184261AD1745AA65AF198F"><enum>(3)</enum><text>public notice of
and comment on designation of areas to be included in, or excluded from, a
lease sale.</text>
</paragraph></subsection><subsection id="HC2E76DBD16194C4FB90094A48BD9E37B"><enum>(c)</enum><header>Lease sale
bids</header><text>Bidding for leases under this subtitle shall be by sealed
competitive cash bonus bids.</text>
</subsection><subsection id="H979624E97B324ADF8EAF68005BE4FEA5"><enum>(d)</enum><header>Acreage minimum
in first sale</header><text>In the first lease sale under this subtitle, the
Secretary shall offer for lease those tracts the Secretary considers to have
the greatest potential for the discovery of hydrocarbons, taking into
consideration nominations received pursuant to subsection (b)(1), but in no
case less than 200,000 acres.</text>
</subsection><subsection id="H087FF063C6F049938F18EEC1CEC5565B"><enum>(e)</enum><header>Timing of lease
sales</header><text>The Secretary shall—</text>
<paragraph id="HFF219BCEAFF44FBB988C1F5BBC745C67"><enum>(1)</enum><text>conduct the first
lease sale under this subtitle within 22 months after the date of the enactment
of this Act; and</text>
</paragraph><paragraph id="HF61F58AF343D41269F8FFB015638BF66"><enum>(2)</enum><text>conduct additional
sales so long as sufficient interest in development exists to warrant, in the
Secretary’s judgment, the conduct of such sales.</text>
</paragraph></subsection></section><section id="HAE24492F5A1242E7BB4E0088AD748B48"><enum>325.</enum><header>Grant of leases
by the Secretary</header>
<subsection id="H3A207D00DE984DD392D8BA768FD900A"><enum>(a)</enum><header>In
general</header><text>The Secretary may grant to the highest responsible
qualified bidder in a lease sale conducted pursuant to section 424 any lands to
be leased on the Coastal Plain upon payment by the lessee of such bonus as may
be accepted by the Secretary.</text>
</subsection><subsection id="H05301F074D2A494084171D9834CDAEF0"><enum>(b)</enum><header>Subsequent
transfers</header><text>No lease issued under this subtitle may be sold,
exchanged, assigned, sublet, or otherwise transferred except with the approval
of the Secretary. Prior to any such approval the Secretary shall consult with,
and give due consideration to the views of, the Attorney General.</text>
</subsection></section><section id="H9EB02A1E388043349739C0C9CBF701F1"><enum>326.</enum><header>Lease terms and
conditions</header><text display-inline="no-display-inline">An oil or gas lease
issued pursuant to this subtitle shall—</text>
<paragraph id="HAF446BE155A941D0B80067B82C50A94B"><enum>(1)</enum><text>provide for the
payment of a royalty of not less than 12½ percent in amount or value of the
production removed or sold from the lease, as determined by the Secretary under
the regulations applicable to other Federal oil and gas leases;</text>
</paragraph><paragraph id="HB7022E9FA4744690A1DD94749BDA7F34"><enum>(2)</enum><text>require that the
lessee of lands within the Coastal Plain shall be fully responsible and liable
for the reclamation of lands within the Coastal Plain and any other Federal
lands that are adversely affected in connection with exploration, development,
production, or transportation activities conducted under the lease and within
the Coastal Plain by the lessee or by any of the subcontractors or agents of
the lessee;</text>
</paragraph><paragraph id="H738565ED6E754C95829BCCC044AAC5E0"><enum>(3)</enum><text>provide that the
lessee may not delegate or convey, by contract or otherwise, the reclamation
responsibility and liability to another person without the express written
approval of the Secretary;</text>
</paragraph><paragraph id="HE3FA5F98F6F3463E8D2C314C642B6DB3"><enum>(4)</enum><text>provide that the
standard of reclamation for lands required to be reclaimed under this subtitle
shall be, as nearly as practicable, a condition capable of supporting the uses
which the lands were capable of supporting prior to any exploration,
development, or production activities, or upon application by the lessee, to a
higher or better use as approved by the Secretary;</text>
</paragraph><paragraph id="H78047A216C5A40C896EC17CCBC008BDE"><enum>(5)</enum><text>include
requirements and restrictions to provide for reasonable protection of fish and
wildlife, their habitat, subsistence resources, and the environment as
determined by the Secretary;</text>
</paragraph><paragraph id="H7EE5925DF326428ABCA8C12EF4C74CB8"><enum>(6)</enum><text>prohibit the
export of oil produced under the lease; and</text>
</paragraph><paragraph id="HA3EB36D0051640078FA60290D6A2AE7"><enum>(7)</enum><text>contain such other
provisions as the Secretary determines necessary to ensure compliance with the
provisions of this subtitle and the regulations issued under this
subtitle.</text>
</paragraph></section><section id="H30C7F338C6A54C6AAA69D0BC23F1FCD5"><enum>327.</enum><header>Coastal plain
environmental protection</header>
<subsection id="H98EEC4E7BB1F415681198E4067311256"><enum>(a)</enum><header>No significant
adverse effect standard To govern authorized Coastal Plain
activities</header><text>The Secretary shall, consistent with the requirements
of section 423, administer the provisions of this subtitle through regulations,
lease terms, conditions, restrictions, prohibitions, stipulations, and other
provisions that—</text>
<paragraph id="H9195E3F640AB48EDB300A2BFE3217EC"><enum>(1)</enum><text>ensure the oil and
gas exploration, development, and production activities on the Coastal Plain
will result in no significant adverse effect on fish and wildlife, their
habitat, and the environment;</text>
</paragraph><paragraph id="H1EAD61D689FE462CAA028CDA3157F227"><enum>(2)</enum><text>require the
application of the best commercially available technology for oil and gas
exploration, development, and production on all new exploration, development,
and production operations; and</text>
</paragraph><paragraph id="H13E0A98B25484F2D8186F7D85CD2A839"><enum>(3)</enum><text>ensure that the
maximum amount of surface acreage covered by production and support facilities,
including airstrips and any areas covered by gravel berms or piers for support
of pipelines, does not exceed 2,000 acres on the Coastal Plain.</text>
</paragraph></subsection><subsection id="H8404A8E19301417391FB287F36E112E7"><enum>(b)</enum><header>Site-specific
assessment and mitigation</header><text>The Secretary shall also require, with
respect to any proposed drilling and related activities, that—</text>
<paragraph id="HE0DE2E35D6C64791B670BFB85E6BFC10"><enum>(1)</enum><text>a
site-specific analysis be made of the probable effects, if any, that the
drilling or related activities will have on fish and wildlife, their habitat,
subsistence resources, and the environment;</text>
</paragraph><paragraph id="HABDC750491264EE5B7655484FFCF32A4"><enum>(2)</enum><text>a
plan be implemented to avoid, minimize, and mitigate (in that order and to the
extent practicable) any significant adverse effect identified under paragraph
(1); and</text>
</paragraph><paragraph id="H1276A944B8A240C585E88BD8C44D1884"><enum>(3)</enum><text>the development of
the plan shall occur after consultation with the agency or agencies having
jurisdiction over matters mitigated by the plan.</text>
</paragraph></subsection><subsection id="H52C1062739BD4384957B8B64778381B5"><enum>(c)</enum><header>Regulations To
protect coastal plain fish and wildlife resources, subsistence users, and the
environment</header><text>Before implementing the leasing program authorized by
this subtitle, the Secretary shall prepare and promulgate regulations, lease
terms, conditions, restrictions, prohibitions, stipulations, and other measures
designed to ensure that the activities undertaken on the Coastal Plain under
this subtitle are conducted in a manner consistent with the purposes and
environmental requirements of this subtitle.</text>
</subsection><subsection id="H5093293CF20E4EA5A14CD255BD290079"><enum>(d)</enum><header>Compliance with
Federal and State environmental laws and other requirements</header><text>The
proposed regulations, lease terms, conditions, restrictions, prohibitions, and
stipulations for the leasing program under this subtitle shall require
compliance with all applicable provisions of Federal and State environmental
law, and shall also require the following:</text>
<paragraph id="H44F7E7B3DC804BACA2A000FA42464BB4"><enum>(1)</enum><text>Standards at least
as effective as the safety and environmental mitigation measures set forth in
items 1 through 29 at pages 167 through 169 of the <quote>Final Legislative
Environmental Impact Statement</quote> (April 1987) on the Coastal
Plain.</text>
</paragraph><paragraph id="HF670E31B5AF641C88E52D71C32C51B9B"><enum>(2)</enum><text>Seasonal
limitations on exploration, development, and related activities, where
necessary, to avoid significant adverse effects during periods of concentrated
fish and wildlife breeding, denning, nesting, spawning, and migration.</text>
</paragraph><paragraph id="H31A1AC26895D424EBA65CFF1DB51DBE"><enum>(3)</enum><text>Design safety and
construction standards for all pipelines and any access and service roads,
that—</text>
<subparagraph id="HDC05C14F990048D5BA9720E68812042F"><enum>(A)</enum><text>minimize, to the
maximum extent possible, adverse effects upon the passage of migratory species
such as caribou; and</text>
</subparagraph><subparagraph id="H63FE164C875D47F1B398D8002541A7CE"><enum>(B)</enum><text>minimize adverse
effects upon the flow of surface water by requiring the use of culverts,
bridges, and other structural devices.</text>
</subparagraph></paragraph><paragraph id="H8B7B3E9D64054B2EB1B726861871C763"><enum>(4)</enum><text>Prohibitions on
general public access and use on all pipeline access and service roads.</text>
</paragraph><paragraph id="H7EB0D58187904590BFB877E4D53C77F"><enum>(5)</enum><text>Stringent
reclamation and rehabilitation requirements, consistent with the standards set
forth in this subtitle, requiring the removal from the Coastal Plain of all oil
and gas development and production facilities, structures, and equipment upon
completion of oil and gas production operations, except that the Secretary may
exempt from the requirements of this paragraph those facilities, structures, or
equipment that the Secretary determines would assist in the management of the
Arctic National Wildlife Refuge and that are donated to the United States for
that purpose.</text>
</paragraph><paragraph id="H1129F581E0BA4DE99FC061BE8EC51815"><enum>(6)</enum><text>Appropriate
prohibitions or restrictions on access by all modes of transportation.</text>
</paragraph><paragraph id="H7CB702807A5446479025D29CE6FFC1DB"><enum>(7)</enum><text>Appropriate
prohibitions or restrictions on sand and gravel extraction.</text>
</paragraph><paragraph id="H95B7035553DE4354A623CA4BD16CC196"><enum>(8)</enum><text>Consolidation of
facility siting.</text>
</paragraph><paragraph id="H56FAEED5F0C847B5B7B9A561B6900379"><enum>(9)</enum><text>Appropriate
prohibitions or restrictions on use of explosives.</text>
</paragraph><paragraph id="H50FE03F7778343C992E87D6200FA3E47"><enum>(10)</enum><text>Avoidance, to the
extent practicable, of springs, streams, and river system; the protection of
natural surface drainage patterns, wetlands, and riparian habitats; and the
regulation of methods or techniques for developing or transporting adequate
supplies of water for exploratory drilling.</text>
</paragraph><paragraph id="HBC11EB69EBDE4C16AE8109A4F499C42C"><enum>(11)</enum><text>Avoidance or
minimization of air traffic-related disturbance to fish and wildlife.</text>
</paragraph><paragraph id="H928F4423AD1C4B7887C93B579BE0ADE5"><enum>(12)</enum><text>Treatment and
disposal of hazardous and toxic wastes, solid wastes, reserve pit fluids,
drilling muds and cuttings, and domestic wastewater, including an annual waste
management report, a hazardous materials tracking system, and a prohibition on
chlorinated solvents, in accordance with applicable Federal and State
environmental law.</text>
</paragraph><paragraph id="H2BC367C287314902A973A3B248EEDA00"><enum>(13)</enum><text>Fuel storage and
oil spill contingency planning.</text>
</paragraph><paragraph id="H8F4D77BDB40F4235B25D238F4CEE728"><enum>(14)</enum><text>Research,
monitoring, and reporting requirements.</text>
</paragraph><paragraph id="H186E8CB58C1E4522B1EB08A425234304"><enum>(15)</enum><text>Field crew
environmental briefings.</text>
</paragraph><paragraph id="H45629249F2C242D680289FAFD3966FD1"><enum>(16)</enum><text>Avoidance of
significant adverse effects upon subsistence hunting, fishing, and trapping by
subsistence users.</text>
</paragraph><paragraph id="H12454948BAD54B70BCDF9524A2C159E"><enum>(17)</enum><text>Compliance with
applicable air and water quality standards.</text>
</paragraph><paragraph id="H507E7E65BDED474FAF3ED9A6D5505DF5"><enum>(18)</enum><text>Appropriate
seasonal and safety zone designations around well sites, within which
subsistence hunting and trapping shall be limited.</text>
</paragraph><paragraph id="HDEB365DDB126428485681F4BE0C91054"><enum>(19)</enum><text>Reasonable
stipulations for protection of cultural and archeological resources.</text>
</paragraph><paragraph id="HB35101A3DB564D289771BBD1B55DF17B"><enum>(20)</enum><text>All other
protective environmental stipulations, restrictions, terms, and conditions
deemed necessary by the Secretary.</text>
</paragraph></subsection><subsection id="H23A10CB8459249EFBDCAE8F127308B7B"><enum>(e)</enum><header>Considerations</header><text>In
preparing and promulgating regulations, lease terms, conditions, restrictions,
prohibitions, and stipulations under this section, the Secretary shall consider
the following:</text>
<paragraph id="H297B8007DFEF4CC5932EA0443B81E11F"><enum>(1)</enum><text>The stipulations
and conditions that govern the National Petroleum Reserve-Alaska leasing
program, as set forth in the 1999 Northeast National Petroleum Reserve-Alaska
Final Integrated Activity Plan/Environmental Impact Statement.</text>
</paragraph><paragraph id="H68BDDF6D734541DA8613650000E6A374"><enum>(2)</enum><text>The environmental
protection standards that governed the initial Coastal Plain seismic
exploration program under parts 37.31 to 37.33 of title 50, Code of Federal
Regulations.</text>
</paragraph><paragraph id="HD70B624CE2104F1C872BA4A2FE2B9588"><enum>(3)</enum><text>The land use
stipulations for exploratory drilling on the KIC–ASRC private lands that are
set forth in Appendix 2 of the August 9, 1983, agreement between Arctic Slope
Regional Corporation and the United States.</text>
</paragraph></subsection><subsection id="H57382A183E99486B8E1568C04259B793"><enum>(f)</enum><header>Facility
consolidation planning</header>
<paragraph id="H12856E9D58214E40B3E976F334A9E8C9"><enum>(1)</enum><header>In
general</header><text>The Secretary shall, after providing for public notice
and comment, prepare and update periodically a plan to govern, guide, and
direct the siting and construction of facilities for the exploration,
development, production, and transportation of Coastal Plain oil and gas
resources.</text>
</paragraph><paragraph id="H99546FBB059241F084CFF0E3752FD400"><enum>(2)</enum><header>Objectives</header><text>The
plan shall have the following objectives:</text>
<subparagraph id="H1264496885544CF0A9DA956F0871C155"><enum>(A)</enum><text>Avoiding
unnecessary duplication of facilities and activities.</text>
</subparagraph><subparagraph id="H4403623E742649C69BEB46F268B12B2"><enum>(B)</enum><text>Encouraging
consolidation of common facilities and activities.</text>
</subparagraph><subparagraph id="HA7C1369657E14A6B832FB4A091E5A817"><enum>(C)</enum><text>Locating or
confining facilities and activities to areas that will minimize impact on fish
and wildlife, their habitat, and the environment.</text>
</subparagraph><subparagraph id="HD1D8632EB1C743D783E723145DC4BAC5"><enum>(D)</enum><text>Utilizing existing
facilities wherever practicable.</text>
</subparagraph><subparagraph id="HF2C38D3A7E5545BDBAE5E9FCA5521634"><enum>(E)</enum><text>Enhancing
compatibility between wildlife values and development activities.</text>
</subparagraph></paragraph></subsection><subsection id="HB756AE7A17424005897CBC70ED046C32"><enum>(g)</enum><header>Access to public
lands</header><text>The Secretary shall—</text>
<paragraph id="HA90E0BC76BDA433CAA00FEA544CB23DE"><enum>(1)</enum><text>manage public
lands in the Coastal Plain subject to subsections (a) and (b) of section 811 of
the Alaska National Interest Lands Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/16/3121">16 U.S.C. 3121</external-xref>);
and</text>
</paragraph><paragraph id="H083AAAB5449F4C3D91AF994D16E3EDF0"><enum>(2)</enum><text>ensure that local
residents shall have reasonable access to public lands in the Coastal Plain for
traditional uses.</text>
</paragraph></subsection></section><section id="H09854F97AC3349B49D05B711ECCBAEF2"><enum>328.</enum><header>Expedited
judicial review</header>
<subsection id="HC5C1F2E0CC65448BB2E773468076094B"><enum>(a)</enum><header>Filing of
complaint</header>
<paragraph id="H3A8759410C084C8A9C703D660597DD23"><enum>(1)</enum><header>Deadline</header><text>Subject
to paragraph (2), any complaint seeking judicial review of any provision of
this Act or any action of the Secretary under this subtitle shall be
filed—</text>
<subparagraph id="H1BF685E4A2044C57AD6FCF36A86B25E9"><enum>(A)</enum><text>except as provided
in subparagraph (B), within the 90-day period beginning on the date of the
action being challenged; or</text>
</subparagraph><subparagraph id="HA18DA0D7ED2D4DC38CE8222608107120"><enum>(B)</enum><text>in the case of a
complaint based solely on grounds arising after such period, within 90 days
after the complainant knew or reasonably should have known of the grounds for
the complaint.</text>
</subparagraph></paragraph><paragraph id="H19ACDBC56D144142962D58DEA0857D58"><enum>(2)</enum><header>Venue</header><text>Any
complaint seeking judicial review of any provision of this subtitle or any
action of the Secretary under this subtitle may be filed only in the United
States Court of Appeals for the District of Columbia.</text>
</paragraph><paragraph id="HE6C725B1651F4FCFB7DD2363A29F539D"><enum>(3)</enum><header>Limitation on
scope of certain review</header><text>Judicial review of a Secretarial decision
to conduct a lease sale under this subtitle, including the environmental
analysis thereof, shall be limited to whether the Secretary has complied with
the terms of this subtitle and shall be based upon the administrative record of
that decision. The Secretary’s identification of a preferred course of action
to enable leasing to proceed and the Secretary’s analysis of environmental
effects under this subtitle shall be presumed to be correct unless shown
otherwise by clear and convincing evidence to the contrary.</text>
</paragraph></subsection><subsection id="HADB8F699AA9A4B3584A61E60D7A12E57"><enum>(b)</enum><header>Limitation on
other review</header><text>Actions of the Secretary with respect to which
review could have been obtained under this section shall not be subject to
judicial review in any civil or criminal proceeding for enforcement.</text>
</subsection></section><section id="H77106E7C59CA4BC88C8DE93E0137AB49"><enum>329.</enum><header>Federal and
State distribution of revenues</header>
<subsection id="H557BA9BA051345F6A44280D009736CB3"><enum>(a)</enum><header>In
general</header><text>Notwithstanding any other provision of law, of the amount
of adjusted bonus, rental, and royalty revenues from Federal oil and gas
leasing and operations authorized under this subtitle—</text>
<paragraph id="H4A3354340AC34C5C9DFA99F5692EA700"><enum>(1)</enum><text>25 percent shall
be paid to the State of Alaska; and</text>
</paragraph><paragraph id="HAB60C0F0C9DD407CA6CC93A13E5DC06C"><enum>(2)</enum><text>except as provided
in section 432(d), the balance shall be deposited into the Treasury as
miscellaneous receipts.</text>
</paragraph></subsection><subsection id="HE1CB6C4E990A48609D79B1B4913CAFB7"><enum>(b)</enum><header>Payments to
Alaska</header><text>Payments to the State of Alaska under this section shall
be made semiannually.</text>
</subsection></section><section id="HCF520418802D404CB426016006C71F47"><enum>330.</enum><header>Rights-of-way
across the Coastal Plain</header>
<subsection id="H16CA9BFD6BB142319EA964C55000A273"><enum>(a)</enum><header>In
general</header><text>The Secretary shall issue rights-of-way and easements
across the Coastal Plain for the transportation of oil and gas—</text>
<paragraph id="HA5F1C5FBED244B9D82068299949172F1"><enum>(1)</enum><text>except as provided
in paragraph (2), under section 28 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/185">30 U.S.C. 185</external-xref>),
without regard to title XI of the Alaska National Interest Lands Conservation
Act (<external-xref legal-doc="usc" parsable-cite="usc/30/3161">30 U.S.C. 3161 et seq.</external-xref>); and</text>
</paragraph><paragraph id="H5209865B178E456494B0ECD8E5F72D40"><enum>(2)</enum><text>under title XI of
the Alaska National Interest Lands Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/30/3161">30 U.S.C. 3161 et seq.</external-xref>),
for access authorized by sections 1110 and 1111 of that Act (16 U.S.C. 3170 and
3171).</text>
</paragraph></subsection><subsection id="HAECCDC8D8C88491E009FB410E300265F"><enum>(b)</enum><header>Terms and
conditions</header><text>The Secretary shall include in any right-of-way or
easement issued under subsection (a) such terms and conditions as may be
necessary to ensure that transportation of oil and gas does not result in a
significant adverse effect on the fish and wildlife, subsistence resources,
their habitat, and the environment of the Coastal Plain, including requirements
that facilities be sited or designed so as to avoid unnecessary duplication of
roads and pipelines.</text>
</subsection><subsection id="H1ACB4945C3AA4EAFBA5BB5002E50A82E"><enum>(c)</enum><header>Regulations</header><text>The
Secretary shall include in regulations under section 423(g) provisions granting
rights-of-way and easements described in subsection (a) of this section.</text>
</subsection></section><section id="HB06DCB36C15E4A1093055E3786E223D7"><enum>331.</enum><header>Conveyance</header><text display-inline="no-display-inline">In order to maximize Federal revenues by
removing clouds on title to lands and clarifying land ownership patterns within
the Coastal Plain, the Secretary, notwithstanding the provisions of section
1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 U.S.C.
3192(h)(2)), shall convey—</text>
<paragraph id="H4C63C468ED1B42EB89719DA1BA009B99"><enum>(1)</enum><text>to the Kaktovik
Inupiat Corporation the surface estate of the lands described in paragraph 1 of
Public Land Order 6959, to the extent necessary to fulfill the Corporation’s
entitlement under sections 12 and 14 of the Alaska Native Claims Settlement Act
(43 U.S.C. 1611 and 1613) in accordance with the terms and conditions of the
Agreement between the Department of the Interior, the United States Fish and
Wildlife Service, the Bureau of Land Management, and the Kaktovik Inupiat
Corporation effective January 22, 1993; and</text>
</paragraph><paragraph id="HE732200429CA4F1A00C6DD00065DC8C"><enum>(2)</enum><text>to
the Arctic Slope Regional Corporation the remaining subsurface estate to which
it is entitled pursuant to the August 9, 1983, agreement between the Arctic
Slope Regional Corporation and the United States of America.</text>
</paragraph></section><section id="HEE9FBD17B28B450DBCA6E19C6F54DDE1"><enum>332.</enum><header>Local
government impact aid and community service assistance</header>
<subsection id="H60A7E21181F6427A8BA8223C00F06739"><enum>(a)</enum><header>Financial
assistance authorized</header>
<paragraph id="HAC0DBE512BC24D55BF87AB9EEDEDFC89"><enum>(1)</enum><header>In
general</header><text>The Secretary may use amounts available from the Coastal
Plain Local Government Impact Aid Assistance Fund established by subsection (d)
to provide timely financial assistance to entities that are eligible under
paragraph (2) and that are directly impacted by the exploration for or
production of oil and gas on the Coastal Plain under this subtitle.</text>
</paragraph><paragraph id="HCFF02C1C92FF4546AF87F8A37E06D858"><enum>(2)</enum><header>Eligible
entities</header><text>The North Slope Borough, the City of Kaktovik, and any
other borough, municipal subdivision, village, or other community in the State
of Alaska that is directly impacted by exploration for, or the production of,
oil or gas on the Coastal Plain under this Act, as determined by the Secretary,
shall be eligible for financial assistance under this section.</text>
</paragraph></subsection><subsection id="H981140DAE19C49A1ADF1D7E36CCE95FA"><enum>(b)</enum><header>Use of
assistance</header><text>Financial assistance under this section may be used
only for—</text>
<paragraph id="HFA6F7C29DFCC4AE8A753F0205849B66B"><enum>(1)</enum><text>planning for
mitigation of the potential effects of oil and gas exploration and development
on environmental, social, cultural, recreational, and subsistence
values;</text>
</paragraph><paragraph id="H23F2B387B0F7467DB52E674894FE0016"><enum>(2)</enum><text>implementing
mitigation plans and maintaining mitigation projects;</text>
</paragraph><paragraph id="H5E5C9DA0F9B04139BB39C2D1149AD14"><enum>(3)</enum><text>developing,
carrying out, and maintaining projects and programs that provide new or
expanded public facilities and services to address needs and problems
associated with such effects, including fire-fighting, police, water, waste
treatment, medivac, and medical services; and</text>
</paragraph><paragraph id="HBC4094297987496385A0A39191D09E9"><enum>(4)</enum><text>establishment of a
coordination office, by the north slope borough, in the City of Kaktovik, which
shall—</text>
<subparagraph id="HBCC836827566434C8286BE045CAE4636"><enum>(A)</enum><text>coordinate with
and advise developers on local conditions, impact, and history of the areas
utilized for development; and</text>
</subparagraph><subparagraph id="H3A1E06BC1ABB4B818541A5CC50C7A3B7"><enum>(B)</enum><text>provide to the
Committee on Resources of the House of Representatives and the Committee on
Energy and Natural Resources of the Senate an annual report on the status of
coordination between developers and the communities affected by
development.</text>
</subparagraph></paragraph></subsection><subsection id="HBF04EBF08B0046A2BFCAFB074C949D0"><enum>(c)</enum><header>Application</header>
<paragraph id="H779DE35E02F54FB48459A675B1AA4DDB"><enum>(1)</enum><header>In
general</header><text>Any community that is eligible for assistance under this
section may submit an application for such assistance to the Secretary, in such
form and under such procedures as the Secretary may prescribe by
regulation.</text>
</paragraph><paragraph id="HF3ABAECE4E114101A740EFB0B86100CA"><enum>(2)</enum><header>North Slope
Borough communities</header><text>A community located in the North Slope
Borough may apply for assistance under this section either directly to the
Secretary or through the North Slope Borough</text>
</paragraph><paragraph id="H277B75B64F1940AA009EB4D463EAB893"><enum>(3)</enum><header>Application
assistance</header><text>The Secretary shall work closely with and assist the
North Slope Borough and other communities eligible for assistance under this
section in developing and submitting applications for assistance under this
section.</text>
</paragraph></subsection><subsection id="H9D462564571F4EDE872E6EB58C656FFE"><enum>(d)</enum><header>Establishment of
fund</header>
<paragraph id="H804BB7C66C0C4193ADD5F423E93DD59C"><enum>(1)</enum><header>In
general</header><text>There is established in the Treasury the Coastal Plain
Local Government Impact Aid Assistance Fund.</text>
</paragraph><paragraph id="HC8BAC75353FC48CF922D80007E1DFFD4"><enum>(2)</enum><header>Use</header><text>Amounts
in the fund may be used only for providing financial assistance under this
section.</text>
</paragraph><paragraph id="H5DFFB61F2D1A47DC0021A9B6763B1C5E"><enum>(3)</enum><header>Deposits</header><text>Subject
to paragraph (4), there shall be deposited into the fund amounts received by
the United States as revenues derived from rents, bonuses, and royalties from
Federal leases and lease sales authorized under this subtitle.</text>
</paragraph><paragraph id="H51797FC3EDC64544A779DB345E550917"><enum>(4)</enum><header>Limitation on
deposits</header><text>The total amount in the fund may not exceed
$11,000,000.</text>
</paragraph><paragraph id="H8F5D7334AB75496497EDF16484AE4D86"><enum>(5)</enum><header>Investment of
balances</header><text>The Secretary of the Treasury shall invest amounts in
the fund in interest bearing government securities.</text>
</paragraph></subsection><subsection id="H75CDCFB95CD44FA19C2C7F3F509492E5"><enum>(e)</enum><header>Authorization of
appropriations</header><text>To provide financial assistance under this section
there is authorized to be appropriated to the Secretary from the Coastal Plain
Local Government Impact Aid Assistance Fund $5,000,000 for each fiscal
year.</text>
</subsection></section></subtitle><enum>IV</enum><header>Gas
Price Tax Credit for Families and Businesses</header>
<section id="H57753A9F2E0C4DB8A586CF3227BFCFEB" section-type="subsequent-section"><enum>401.</enum><header>Deduction for
certain commuting expenses of individuals</header>
<subsection id="H53CB036CAE1947F3B4F9C40028262469"><enum>(a)</enum><header>In
general</header><text>Part VII of subchapter B of chapter 1 of the Internal
Revenue Code of 1986 (relating to additional itemized deductions) is amended by
redesignating section 224 as section 225 and by inserting after section 223 the
following new section:</text>
<quoted-block id="HD4747348F31C4EB894BB8C62082F52F9">
<section id="HD1E0AA9111AC4E62BA42C7FD76CA026"><enum>224.</enum><header>Certain
commuting expenses</header>
<subsection id="H6E83E4B9B9B848C99B7BA600A3CC003B"><enum>(a)</enum><header>In
general</header><text>In the case of an individual, there shall be allowed as a
deduction an amount equal to the applicable percentage of the amount paid or
incurred by the taxpayer during the taxable year for qualified commuting
expenses of the taxpayer, his spouse, and dependents.</text>
</subsection><subsection id="H9208FC94D9C74340A9E6601D4E3F84C"><enum>(b)</enum><header>Applicable
percentage</header><text>For purposes of this section—</text>
<paragraph id="HF104E6C5CCFB4DE3B9622B51BDAB2D84"><enum>(1)</enum><header>In
general</header><text>The term <quote>applicable percentage</quote> means, with
respect to the expenses of any individual in connection with a round-trip
commute of a certain number of miles, the percentage determined in accordance
with the following table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Entry: 2 text, bold hds" table-type="Leaderwork">
<tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.10.12"><colspec coldef="txt" colname="column1" colwidth="253pts" min-data-value="190" rowsep="0"></colspec><colspec coldef="fig" colname="column2" colwidth="72pts" min-data-value="13" rowsep="0"></colspec>
<thead>
<row><entry colname="column1" morerows="0" namest="column1"><bold>In the case of a</bold></entry><entry colname="column2" morerows="0" namest="column2"><bold>The applicable</bold></entry>
</row>
<row><entry colname="column1" morerows="0" namest="column1"><bold> round-trip commute of:</bold></entry><entry colname="column2" morerows="0" namest="column2"><bold>percentage
is:</bold></entry>
</row>
</thead>
<tbody>
<row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">Less than 10 miles</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">10 percent</entry>
</row>
<row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">At least 10 miles, but not greater
than 15 miles</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">30 percent</entry>
</row>
<row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">At least 15 miles, but not greater
than 25 miles</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">50 percent</entry>
</row>
<row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">At least 25 miles</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">75 percent.</entry>
</row>
</tbody>
</tgroup>
</table>
</paragraph><paragraph id="H08A7D18099E54B9B8DBE8E5658ADD4DF"><enum>(2)</enum><header>Special rule for
high gas mileage vehicles and carpoolers</header><text>Notwithstanding
paragraph (1), the applicable percentage shall be 100 percent with respect to
any round-trip commute which is made—</text>
<subparagraph id="H1430673C402C451F92931873F1908161"><enum>(A)</enum><text>in a motor vehicle
which has a gasoline equivalent fuel efficiency of more than 40 miles per
gallon, or</text>
</subparagraph><subparagraph id="H4D7E0F1592664007A75117EB0073B7DA"><enum>(B)</enum><text>in a motor vehicle
while carrying carpooling passengers.</text>
</subparagraph></paragraph></subsection><subsection id="H3F5777D0FF944D768B74D355A61FEA3B"><enum>(c)</enum><header>Definitions
related to commuting</header><text>For purposes of this section—</text>
<paragraph id="H6E1EE9674E924560B46D562EB8D3B4A6"><enum>(1)</enum><header>Qualified
commuting expenses</header><text>The term <term>qualified commuting
expenses</term> means reasonable expenses paid or incurred for transportation
in connection with travel between an individual’s residence and place of
employment.</text>
</paragraph><paragraph id="H726C0768332548148D8106FE2DED52C3"><enum>(2)</enum><header>Round-trip
commute</header><text>The term <quote>round trip commute</quote> means the
reasonable driving distance from an individual’s residence to such individual’s
place of employment and back to such
residence.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H469AB4D9791D45E39DEE1BB441FCA100"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for part VII of subchapter B of
chapter 1 of such Code is amended by redesignating the item relating to section
224 as an item relating to section 225 and inserting before such item the
following new item:</text>
<quoted-block display-inline="no-display-inline" id="H9B75FCAE72BA49558D75DDC5733B5400" style="OLC">
<toc container-level="quoted-block-container" idref="HD4747348F31C4EB894BB8C62082F52F9" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HD1E0AA9111AC4E62BA42C7FD76CA026" level="section">Sec. 224. Certain commuting
expenses.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFEFA8EE13B214904A891F61FE768A57D"><enum>(c)</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 id="H7A95A0CFC3DC463BAC520055B4595161"><enum>402.</enum><header>Tax credit for
fuel expenses of truckers</header>
<subsection id="H78829CD386384B04B5EEEF00D2672039"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart D of part IV
of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to
business credits), as amended by this Act, is amended by adding at the end the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="HBA3E547F104D401195A005D549C9D0FE" style="OLC">
<section id="H708818241E09429986A9EB432002EC5"><enum>45S.</enum><header>Credit for fuel
expenses of truckers</header>
<subsection id="H6AA30D58743145BE9F4ECF9CC856AF8C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
section 38, the trucker fuel expense credit for any taxable year is an amount
equal to 25 percent of the aggregate amount paid or incurred by the taxpayer
for diesel fuel used by the taxpayer in the ordinary course of the trade or
business of transporting goods by truck.</text>
</subsection><subsection id="H3B73AC06C46946B68695C641594003D"><enum>(b)</enum><header>Limitation</header><text>The
credit determined under subsection (a) shall not exceed $2,500 with respect to
any taxpayer for any taxable year.</text>
</subsection><subsection id="H2C74EDB23F0A4A04A40014345FE98C46"><enum>(c)</enum><header>Special
rules</header><text>For purposes of this section—</text>
<paragraph id="HC2ADC6609F9D4464826F4C38AE5EE05"><enum>(1)</enum><header>Aggregation
rules</header><text display-inline="yes-display-inline">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 one person.</text>
</paragraph><paragraph id="HDC395FA148704213B5F0E0B9D672C14E"><enum>(2)</enum><header>Denial of double
benefit</header><text>No deduction or credit shall be allowed under any other
provision of this chapter with respect to the amount of the credit determined
under this
section.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H7BEBC62E2A264F0C9B21031977C97027"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 38(b) of such Code (relating to general
business credit), as amended by this Act, is amended by striking
<quote>plus</quote> at the end of paragraph (34), by striking the period at the
end of paragraph (35) and inserting <quote>, plus</quote>, and by adding at the
end of following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H6F74BBFC1349448CBEDAD1F6E8D1BFA6" style="OLC">
<paragraph id="H74490BB8CFB040B7B004F2E29E3CE9C0"><enum>(36)</enum><text display-inline="yes-display-inline">the trucker fuel expense credit determined
under section
45S(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1EDDD36B7D8C4EE290531D71C5754980"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code (relating to other credits) is amended
by adding at the end the following new section:</text>
</subsection><subsection id="H685647CE313E471C96EE5B00BB174058"><enum>(d)</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><enum>V</enum><header>Coal-to-liquid
fuel</header>
<subtitle id="HE78E9FC25D714B08BBF0CCCE1BE1893D"><enum>A</enum><header>Coal to liquid
fuel activities</header>
<section display-inline="no-display-inline" id="H5AEEAE4F2DF4485C9C6D19D8EFF56CB" section-type="subsequent-section"><enum>501.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Coal-to-Liquid Fuel
Promotion Act of 2008</short-title></quote>.</text>
</section><section id="H3FC0CAED8C5346CE8108DC55A4C768AC"><enum>502.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="H187816FD555E4DD6899DC815CE4EC6EC"><enum>(1)</enum><header>Coal-to-liquid</header><text>The
term <term>coal-to-liquid</term> means—</text>
<subparagraph id="H1BF25A06BBBD4630002978942682D400"><enum>(A)</enum><text>with respect to a
process or technology, the use of a feedstock, the majority of which is the
coal resources of the United States, using the class of reactions known as
Fischer-Tropsch, to produce synthetic fuel suitable for transportation;
and</text>
</subparagraph><subparagraph id="HD9E59856F8284D67A9337FEA276076C7"><enum>(B)</enum><text>with respect to a
facility, the portion of a facility related to producing the inputs to the
Fischer-Tropsch process, the Fischer-Tropsch process, finished fuel production,
or the capture, transportation, or sequestration of byproducts of the use of a
feedstock that is primarily domestic coal at the Fischer-Tropsch facility,
including carbon emissions.</text>
</subparagraph></paragraph><paragraph id="H8D90E2DE20F344368643C5E87EF3A429"><enum>(2)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Energy.</text>
</paragraph></section><section id="HF1B0D5D1DBC04B96B9EC240063007D00"><enum>503.</enum><header>Coal-to-liquid
fuel loan guarantee program</header>
<subsection id="H62A5F63A54F14066BA7DF48944DE9D38"><enum>(a)</enum><header>Eligible
projects</header><text>Section 1703(b) of the Energy Policy Act of 2005 (42
U.S.C. 16513(b)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H69AF024FD2604C36A6EA2082307F7C5F" style="OLC">
<paragraph id="H4EAAEE3B82304C5F864ED710E9FBF505"><enum>(11)</enum><text>Large-scale
coal-to-liquid facilities (as defined in section 502 of the
<short-title>Coal-to-Liquid Fuel Promotion Act of
2008</short-title>) that use a feedstock, the majority of which is the coal
resources of the United States, to produce not less than 10,000 barrels a day
of liquid transportation
fuel.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H44958FA58F70409196A15D408F39C15"><enum>(b)</enum><header>Authorization of
appropriations</header><text>Section 1704 of the Energy Policy Act of 2005 (42
U.S.C. 16514) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9A3171552788416EA16B8F614D5D9300" style="OLC">
<subsection id="H7708FDE190124E8F8FD37BC8C635BB8C"><enum>(c)</enum><header>Coal-to-liquid
projects</header>
<paragraph id="H541D88EF99AE4EB9BB6D655C77D7B7F6"><enum>(1)</enum><header>In
general</header><text>There are authorized to be appropriated such sums as are
necessary to provide the cost of guarantees for projects involving large-scale
coal-to-liquid facilities under section 1703(b)(11).</text>
</paragraph><paragraph id="H7BCE6D4F308048A2BF552F45DE87E583"><enum>(2)</enum><header>Alternative
Funding</header><text>If no appropriations are made available under paragraph
(1), an eligible applicant may elect to provide payment to the Secretary, to be
delivered if and at the time the application is approved, in the amount of the
estimated cost of the loan guarantee to the Federal Government, as determined
by the Secretary.</text>
</paragraph><paragraph id="H07D9ED89C10E4F149EDA78211DD097FD"><enum>(3)</enum><header>Limitations</header>
<subparagraph id="HB4B9044A65704354A644FBA1ADCA3213"><enum>(A)</enum><header>In
general</header><text>No loan guarantees shall be provided under this title for
projects described in paragraph (1) after (as determined by the
Secretary)—</text>
<clause id="H65DF34675DD5468EA763C1425000F911"><enum>(i)</enum><text>the tenth such
loan guarantee is issued under this title; or</text>
</clause><clause id="H9AEEEAE1A0544E449971882EC6C1FDC2"><enum>(ii)</enum><text>production
capacity covered by such loan guarantees reaches 100,000 barrels per day of
coal-to-liquid fuel.</text>
</clause></subparagraph><subparagraph id="H74AF233AE6BF456EB1441BEEC7E60005"><enum>(B)</enum><header>Individual
projects</header>
<clause id="HD56144F1370643ADAF2956E8485D27DC"><enum>(i)</enum><header>In
general</header><text>A loan guarantee may be provided under this title for any
large-scale coal-to-liquid facility described in paragraph (1) that produces no
more than 20,000 barrels of coal-to-liquid fuel per day.</text>
</clause><clause id="HA372096F4586464EB4DE44413606ED8D"><enum>(ii)</enum><header>Non-Federal
funding requirement</header><text>To be eligible for a loan guarantee under
this title, a large-scale coal-to-liquid facility described in paragraph (1)
that produces more than 20,000 barrels per day of coal-to-liquid fuel shall be
eligible to receive a loan guarantee for the proportion of the cost of the
facility that represents 20,000 barrels of coal-to-liquid fuel per day of
production.</text>
</clause></subparagraph></paragraph><paragraph id="H1E2A8481D9E047DEB2CD98C289C09CC0"><enum>(4)</enum><header>Requirements</header>
<subparagraph id="H9C2ABAD93FB14F8C00AE1787C46C28C6"><enum>(A)</enum><header>Guidelines</header><text>Not
later than 180 days after the date of enactment of this subsection, the
Secretary shall publish guidelines for the coal-to-liquids loan guarantee
application process.</text>
</subparagraph><subparagraph id="HE101613090AB4B6A91A850244246492E"><enum>(B)</enum><header>Applications</header><text>Not
later than 1 year after the date of enactment of this subsection, the Secretary
shall begin to accept applications for coal-to-liquid loan guarantees under
this subsection.</text>
</subparagraph><subparagraph id="H638C52A6753242B2A592EF3D444DCC2E"><enum>(C)</enum><header>Deadline</header><text>Not
later than 1 year from the date of acceptance of an application under
subparagraph (B), the Secretary shall evaluate the application and make final
determinations under this subsection.</text>
</subparagraph></paragraph><paragraph id="HC778A63A515C44B3A200A5AA4CE31E4"><enum>(5)</enum><header>Reports to
Congress</header><text>The Secretary shall submit to the Committee on Energy
and Natural Resources of the Senate and the Committee on Energy and Commerce of
the House of Representatives a report describing the status of the program
under this subsection not later than each of—</text>
<subparagraph id="HCD62FAAEC6944261BD8E1E56F0F37CB"><enum>(A)</enum><text>180 days after the
date of enactment of this subsection;</text>
</subparagraph><subparagraph id="HC3A371FE5EF94129AF6FACFBF87CE887"><enum>(B)</enum><text>1 year after the
date of enactment of this subsection; and</text>
</subparagraph><subparagraph id="H4E342A2095EC4EE48C5B6420572B8104"><enum>(C)</enum><text>the dates on which
the Secretary approves the first and fifth applications for coal-to-liquid loan
guarantees under this
subsection.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H46D8DEBA892649CC8FFF1CC2B5A49E6D"><enum>504.</enum><header>Coal-to-liquid
facilities loan program</header>
<subsection id="H4B756EF991924D3CBFC6814EA4E3F54E"><enum>(a)</enum><header>Definition of
eligible recipient</header><text>In this section, the term <term>eligible
recipient</term> means an individual, organization, or other entity that owns,
operates, or plans to construct a coal-to-liquid facility that will produce at
least 10,000 barrels per day of coal-to-liquid fuel.</text>
</subsection><subsection id="H1942FACA1A1E4594B11C006E79587C18"><enum>(b)</enum><header>Establishment</header><text>The
Secretary shall establish a program under which the Secretary shall provide
loans, in a total amount not to exceed $20,000,000, for use by eligible
recipients to pay the Federal share of the cost of obtaining any services
necessary for the planning, permitting, and construction of a coal-to-liquid
facility.</text>
</subsection><subsection id="HA931081977664500AC78C1C7AC5F4E38"><enum>(c)</enum><header>Application</header><text>To
be eligible to receive a loan under subsection (b), the eligible recipient
shall submit to the Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.</text>
</subsection><subsection id="H8BC4D888D30748FF8F753D6959600067"><enum>(d)</enum><header>Non-Federal
match</header><text>To be eligible to receive a loan under this section, an
eligible recipient shall use non-Federal funds to provide a dollar-for-dollar
match of the amount of the loan.</text>
</subsection><subsection id="HE4E02EA4E16F4F50B6217986FE2136D"><enum>(e)</enum><header>Repayment of
loan</header>
<paragraph id="H43CDEA137AE94A1F008CDAED63004983"><enum>(1)</enum><header>In
general</header><text>To be eligible to receive a loan under this section, an
eligible recipient shall agree to repay the original amount of the loan to the
Secretary not later than 5 years after the date of the receipt of the
loan.</text>
</paragraph><paragraph id="HE15C4E62FA1E4331BF29006358BAC99"><enum>(2)</enum><header>Source of
funds</header><text>Repayment of a loan under paragraph (1) may be made from
any financing or assistance received for the construction of a coal-to-liquid
facility described in subsection (a), including a loan guarantee provided under
section 1703(b)(11) of the Energy Policy Act of 2005 (42 U.S.C.
16513(b)(11)).</text>
</paragraph></subsection><subsection id="HDF6AF4E38F6C459897DC2BF7B07CDF23"><enum>(f)</enum><header>Requirements</header>
<paragraph id="H5910E02EB0DA4067913766C5B885F1E4"><enum>(1)</enum><header>Guidelines</header><text>Not
later than 180 days after the date of enactment of this Act, the Secretary
shall publish guidelines for the coal-to-liquids loan application
process.</text>
</paragraph><paragraph id="H813C1C7EAC424A7ABFC2131817F24E79"><enum>(2)</enum><header>Applications</header><text>Not
later than 1 year after the date of enactment of this Act, the Secretary shall
begin to accept applications for coal-to-liquid loans under this
section.</text>
</paragraph></subsection><subsection id="H3D739A77D41D414DA6DD8C519CE7F16C"><enum>(g)</enum><header>Reports to
Congress</header><text>Not later than each of 180 days and 1 year after the
date of enactment of this Act, the Secretary shall submit to the Committee on
Energy and Natural Resources of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report describing the status of the
program under this section.</text>
</subsection><subsection id="H13B3367874FC4E398DBA83DC2644B709"><enum>(h)</enum><header>Authorization of
appropriations</header><text>There is authorized to be appropriated to carry
out this section $200,000,000, to remain available until expended.</text>
</subsection></section><section id="HEE57DB55DF0E4CF9A443EAF3A4F12808"><enum>505.</enum><header>Location of
coal-to-liquid manufacturing facilities</header><text display-inline="no-display-inline">The Secretary, in coordination with the head
of any affected agency, shall promulgate such regulations as the Secretary
determines to be necessary to support the development on Federal land
(including land of the Department of Energy, military bases, and military
installations closed or realigned under the defense base closure and
realignment) of coal-to-liquid manufacturing facilities and associated
infrastructure, including the capture, transportation, or sequestration of
carbon dioxide.</text>
</section><section id="H8E30C45928C140758BDFA3FB6614293D"><enum>506.</enum><header>Strategic
Petroleum Reserve</header>
<subsection id="H0910CF231F9643B6AEB60067E9B00005"><enum>(a)</enum><header>Development,
operation, and maintenance of Reserve</header><text display-inline="yes-display-inline">Section 159 of the Energy Policy and
Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6239">42 U.S.C. 6239</external-xref>) is amended—</text>
<paragraph id="H2A7C272F5D5541CDB9661E8126006D7D"><enum>(1)</enum><text>by redesignating
subsections (f), (g), (j), (k), and (l) as subsections (a), (b), (e), (f), and
(g), respectively; and</text>
</paragraph><paragraph id="H5F8757D0534C405300EF8393C563B8F2"><enum>(2)</enum><text>by inserting after
subsection (b) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="H49FD604B30E8439B813B26B12FA5B878" style="OLC">
<subsection id="HA9AD9FA5335B4313007EE32F38AC0047"><enum>(c)</enum><header>Study of
maintaining coal-to-liquid products in Reserve</header><text>Not later than 1
year after the date of enactment of the <short-title>Coal-to-Liquid Fuel Promotion Act of 2008</short-title>,
the Secretary and the Secretary of Defense shall—</text>
<paragraph id="H39BA7F4EEF4745FDAF3BA261576B355E"><enum>(1)</enum><text>conduct a study of
the feasibility and suitability of maintaining coal-to-liquid products in the
Reserve; and</text>
</paragraph><paragraph id="H0EA2B7F015694A7600B9A05494924BFD"><enum>(2)</enum><text>submit to the
Committee on Energy and Natural Resources and the Committee on Armed Services
of the Senate and the Committee on Energy and Commerce and the Committee on
Armed Services of the House of Representatives a report describing the results
of the study.</text>
</paragraph></subsection><subsection id="HDBFBE23DB5064A4DB7F2F3034CC138B"><enum>(d)</enum><header>Construction of
storage facilities</header><text>As soon as practicable after the date of
enactment of the <short-title>Coal-to-Liquid Fuel
Promotion Act of 2008</short-title>, the Secretary may construct 1 or more
storage facilities in the vicinity of pipeline infrastructure and at least 1
military
base.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF0AB84F7555F44598F1003ABCBEB4826"><enum>(b)</enum><header>Petroleum
products for storage in Reserve</header><text display-inline="yes-display-inline">Section 160 of the Energy Policy and
Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6240">42 U.S.C. 6240</external-xref>) is amended—</text>
<paragraph id="H86994561C77A443CA9C682A381FD6C7D"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="HCA6B08BA5D5C4FB6B30026970900B954"><enum>(A)</enum><text>in paragraph (1),
by inserting a semicolon at the end;</text>
</subparagraph><subparagraph id="H2358006C8B0F4968B8C1171194E4D0BB"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="H121E7871AC0745A79B6F96851DEF9D94"><enum>(C)</enum><text>in paragraph (3),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="HF06FEAE986DC40CCBF85C37E13FD7460"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HEF31E5AB01D948429080B4002F1942DE" style="OLC">
<paragraph id="H971FFA86E04143A98D9365D8C3DDA99"><enum>(4)</enum><text>coal-to-liquid
products (as defined in section 502 of the <short-title>Coal-to-Liquid Fuel Promotion Act of 2008</short-title>),
as the Secretary determines to be appropriate, in a quantity not to exceed 20
percent of the total quantity of petroleum and petroleum products in the
Reserve.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HAEC7F8EF8D3E46C78075417CEFCAB602"><enum>(2)</enum><text>in subsection (b),
by redesignating paragraphs (3) through (5) as paragraphs (2) through (4),
respectively; and</text>
</paragraph><paragraph id="H8E8C2697416D4487BC3C61DDDE206F99"><enum>(3)</enum><text>by redesignating
subsections (f) and (h) as subsections (d) and (e), respectively.</text>
</paragraph></subsection><subsection id="H23BBC8FDE08C4F16AE884F6546D0FC07"><enum>(c)</enum><header>Conforming
amendments</header><text>Section 167 of the Energy Policy and Conservation Act
(<external-xref legal-doc="usc" parsable-cite="usc/42/6247">42 U.S.C. 6247</external-xref>) is amended—</text>
<paragraph id="H6DEC8AAB61614B918E271B1786DE3B4"><enum>(1)</enum><text>in
subsection (b)—</text>
<subparagraph id="H5C808E9D1C92457FA2307EF94561989C"><enum>(A)</enum><text>by redesignating
paragraphs (2) and (3) as paragraphs (1) and (2), respectively; and</text>
</subparagraph><subparagraph id="H78FF66D123DC4D9FB6284E0070851BDD"><enum>(B)</enum><text>in paragraph (2)
(as redesignated by subparagraph (A)), by striking <quote>section
160(f)</quote> and inserting <quote>section 160(e)</quote>; and</text>
</subparagraph></paragraph><paragraph id="H02C8B8D5EFCC4D07B0AACE8B612830E6"><enum>(2)</enum><text>in subsection (d),
in the matter preceding paragraph (1), by striking <quote>section
160(f)</quote> and inserting <quote>section 160(e)</quote>.</text>
</paragraph></subsection></section><section id="H9EB6EB8A2DC64056A66B79114E302022"><enum>507.</enum><header>Authorization
to conduct research, development, testing, and evaluation of assured domestic
fuels</header><text display-inline="no-display-inline">Of the amount authorized
to be appropriated for the Air Force for research, development, testing, and
evaluation, $10,000,000 may be made available for the Air Force Research
Laboratory to continue support efforts to test, qualify, and procure synthetic
fuels developed from coal for aviation jet use.</text>
</section><section id="HBD494FD1FEE6461091536BAFFFF5469"><enum>508.</enum><header>Coal-to-liquid
long-term fuel procurement and department of defense development</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/10/2398a">Section 2398a</external-xref> of title 10, United States
Code is amended—</text>
<paragraph id="H3CE5B34F171142C7BECFAD92DDBD8FA1"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph id="H7AFAB34FF2A344F29BAF3295ACB7E1F7"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>The Secretary</quote>
and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HE6B0CAC77FCC43739643AC79D8CAB84" style="OLC">
<paragraph id="H791F13FD44714F2195871C79C970D50"><enum>(1)</enum><header>In
general</header><text>The Secretary</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H19FA8C7039D54932A5ABC128EAE72332"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H4AB9496FED574CED89F975003E623B44" style="OLC">
<paragraph id="H62447A79729541CD86002C6582380007"><enum>(2)</enum><header>Coal-to-liquid
production facilities</header>
<subparagraph id="H6DCA2341FED24285B0B38BADD1B3195"><enum>(A)</enum><header>In
general</header><text>The Secretary of Defense may enter into contracts or
other agreements with private companies or other entities to develop and
operate coal-to-liquid facilities (as defined in section 502 of the
<short-title>Coal-to-Liquid Fuel Promotion Act of
2008</short-title>) on or near military installations.</text>
</subparagraph><subparagraph id="HCF37E91F91724443AF5B50D0026DEC60"><enum>(B)</enum><header>Considerations</header><text>In
entering into contracts and other agreements under subparagraph (A), the
Secretary shall consider land availability, testing opportunities, and
proximity to raw
materials.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HD3B83DF647BF4CEBB2041DC3699E4FA2"><enum>(2)</enum><text>in subsection
(d)—</text>
<subparagraph id="H26FC958A803342A884991472FB2930F9"><enum>(A)</enum><text>by striking
<quote>Subject to applicable provisions of law, any</quote> and inserting
<quote>Any</quote>; and</text>
</subparagraph><subparagraph id="HC5E1B012A7684C9388DB5948FC59A5FC"><enum>(B)</enum><text>by striking
<quote>1 or more years</quote> and inserting <quote>up to 25 years</quote>;
and</text>
</subparagraph></paragraph><paragraph id="H2A4135B63D174752B2C7216E95A0DAF5"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H4617C08504054BB391160718AA52B4D" style="OLC">
<subsection id="H0DE4FB48AE0E4681BB9702271553CE76"><enum>(f)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated such sums
as are necessary to carry out this
section.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HBE8EEE65C67B4E05A44F52C4ACE45FBA"><enum>509.</enum><header>Report on
emissions of Fischer-Tropsch products used as transportation fuels</header>
<subsection id="H70E72275798842B000AF0002F063B8A4"><enum>(a)</enum><header>In
general</header><text>In cooperation with the Administrator of the
Environmental Protection Agency, the Secretary of Defense, the Administrator of
the Federal Aviation Administration, and the Secretary of Health and Human
Services, the Secretary shall—</text>
<paragraph id="H55860251D7C74745851B5D875D1B7224"><enum>(1)</enum><text>carry out a
research and demonstration program to evaluate the emissions of the use of
Fischer-Tropsch fuel for transportation, including diesel and jet fuel;</text>
</paragraph><paragraph id="H80191091B17042E2A72D022CDCCC1DA7"><enum>(2)</enum><text>evaluate the
effect of using Fischer-Tropsch transportation fuel on land and air engine
exhaust emissions; and</text>
</paragraph><paragraph id="H82A7A88EA9424597A7B1EF79BF736C9C"><enum>(3)</enum><text>in accordance with
subsection (e), submit to Congress a report on the effect on air quality and
public health of using Fischer-Tropsch fuel in the transportation
sector.</text>
</paragraph></subsection><subsection id="H0B14B80AC8A34BAC92C11FADB649D84C"><enum>(b)</enum><header>Guidance and
technical support</header><text>The Secretary shall issue any guidance or
technical support documents necessary to facilitate the effective use of
Fischer-Tropsch fuel and blends under this section.</text>
</subsection><subsection id="H818E466300F44DF2A15551368F9E0210"><enum>(c)</enum><header>Facilities</header><text>For
the purpose of evaluating the emissions of Fischer-Tropsch transportation
fuels, the Secretary shall—</text>
<paragraph id="H3F08F829EEE149F88DFAAF60CF8EEFF2"><enum>(1)</enum><text>support the use
and capital modification of existing facilities and the construction of new
facilities at the research centers designated in section 417 of the Energy
Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15977">42 U.S.C. 15977</external-xref>); and</text>
</paragraph><paragraph id="HAED15E377230435BBDF3E32362F104E1"><enum>(2)</enum><text>engage those
research centers in the evaluation and preparation of the report required under
subsection (a)(3).</text>
</paragraph></subsection><subsection id="H33F4A223C4C04760AE32D257FDB314FB"><enum>(d)</enum><header>Requirements</header><text>The
program described in subsection (a)(1) shall consider—</text>
<paragraph id="HE94889D3B17C4176AC8D00009673DD97"><enum>(1)</enum><text>the use of neat
(100 percent) Fischer-Tropsch fuel and blends of Fischer-Tropsch fuels with
conventional crude oil-derived fuel for heavy-duty and light-duty diesel
engines and the aviation sector; and</text>
</paragraph><paragraph id="H244E229FEB1B4F0B9F61FBACC0E1F771"><enum>(2)</enum><text>the production
costs associated with domestic production of those fuels and prices for
consumers.</text>
</paragraph></subsection><subsection id="HD9EC41C3A07140E9B326D3BF83DB6B62"><enum>(e)</enum><header>Reports</header><text>The
Secretary shall submit to the Committee on Energy and Natural Resources of the
Senate and the Committee on Energy and Commerce of the House of
Representatives—</text>
<paragraph id="H331A3F1C2A9A4785BDD9548EC0DA977E"><enum>(1)</enum><text>not later than 180
days after the date of enactment of this Act, an interim report on actions
taken to carry out this section; and</text>
</paragraph><paragraph id="H3DD2E1210B5B4D8C8391431D65598608"><enum>(2)</enum><text>not later than 1
year after the date of enactment of this Act, a final report on actions taken
to carry out this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD1778F77546F4D18B735744D4BE51CFE"><enum>(f)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated such sums
as are necessary to carry out this section.</text>
</subsection></section></subtitle><subtitle id="H926AAFD802FA4E2CB51983AAEEB37FB7"><enum>B</enum><header>Amendments to the
Internal Revenue Code of 1986</header>
<section id="HB978665EA95F44BB9BF8A2201ED33DBF"><enum>511.</enum><header>Credit for
investment in coal-to-liquid fuels projects</header>
<subsection id="H455306B0A0334942A7FF68BE5CBADC4B"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/46">Section 46</external-xref> of the Internal Revenue Code of 1986 (relating
to amount of credit) is amended by striking <quote>and</quote> at the end of
paragraph (3), by striking the period at the end of paragraph (4) and inserting
<quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block id="H770DE80ABEC44BB89E302EB128EF00F5">
<paragraph id="HB291712B6CB8497181F8EECC708C5049"><enum>(5)</enum><text>the qualifying
coal-to-liquid fuels project
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDE845E3689DD4D5F8BED68B03E3445B3"><enum>(b)</enum><header>Amount of
credit</header><text>Subpart E of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to rules for computing investment
credit) is amended by inserting after section 48B the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H0694378F6F3B450280C5D463E7A7B699" style="OLC">
<section id="H15FD7799CA3B4E0EBCE933C561CF4C70"><enum>48C.</enum><header>Qualifying
coal-to-liquid fuels project credit</header>
<subsection id="H49E73038149844EDBE2B007015948585"><enum>(a)</enum><header>In
general</header><text>For purposes of section 46, the qualifying coal-to-liquid
fuels project credit for any taxable year is an amount equal to 20 percent of
the qualified investment for such taxable year.</text>
</subsection><subsection id="H485AB15BBF0743EAB975EAD545C4AA90"><enum>(b)</enum><header>Qualified
investment</header>
<paragraph id="H63EED3E189BA424E816EE3E29C3226ED"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (a), the qualified investment
for any taxable year is the basis of property placed in service by the taxpayer
during such taxable year which is part of a qualifying coal-to-liquid fuels
project—</text>
<subparagraph id="HE622A1F012554076AE04CA7B4BF1CD"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H79D707DEB67847729DB0695B097DF3F7"><enum>(i)</enum><text>the construction,
reconstruction, or erection of which is completed by the taxpayer, or</text>
</clause><clause id="H0889B0B8035244F7B4BF40E38F7EEBA5" indent="up1"><enum>(ii)</enum><text>which is acquired by the taxpayer
if the original use of such property commences with the taxpayer, and</text>
</clause></subparagraph><subparagraph id="H36DE654DD2974B9BA9A9A2F654B800C6"><enum>(B)</enum><text>with respect to
which depreciation (or amortization in lieu of depreciation) is
allowable.</text>
</subparagraph></paragraph><paragraph id="HE6A4E0DB7ECA45ADB358F1FFAD888C5C"><enum>(2)</enum><header>Applicable
rules</header><text>For purposes of this section, rules similar to the rules of
subsection (a)(4) and (b) of section 48 shall apply.</text>
</paragraph></subsection><subsection id="H1A0E2B4579C54A7000701022D5BDAC7F"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="HC43F53E2E53D4247B9064442E3F6D3B"><enum>(1)</enum><header>Qualifying
coal-to-liquid fuels project</header><text>The term <term>qualifying
coal-to-liquid fuels project</term> means any domestic project which—</text>
<subparagraph id="HB9955043295B42F58D2B3C7D50DAD399"><enum>(A)</enum><text>employs the class
of reactions known as Fischer-Tropsch to produce at least 10,000 barrels per
day of transportation grade liquid fuels from a feedstock that is primarily
domestic coal (including any property which allows for the capture,
transportation, or sequestration of by-products resulting from such process,
including carbon emissions), and</text>
</subparagraph><subparagraph id="H1697E067FF014C578C178CC10691462D"><enum>(B)</enum><text>any portion of the
qualified investment in which is certified under the qualifying coal-to-liquid
program as eligible for credit under this section in an amount (not to exceed
$200,000,000) determined by the Secretary.</text>
</subparagraph></paragraph><paragraph id="HBD513F306DC54A718D7441554D556700"><enum>(2)</enum><header>Coal</header><text>The
term <term>coal</term> means any carbonized or semicarbonized matter, including
peat.</text>
</paragraph></subsection><subsection id="H56CF577FA7DA4546B800A56A2003E7D"><enum>(d)</enum><header>Qualifying
coal-to-liquid fuels project program</header>
<paragraph id="HC4B1237E52BB44AA8B329086DCD286D"><enum>(1)</enum><header>In
general</header><text>The Secretary, in consultation with the Secretary of
Energy, shall establish a qualifying coal-to-liquid fuels project program to
consider and award certifications for qualified investment eligible for credits
under this section to 10 qualifying coal-to-liquid fuels project sponsors under
this section. The total qualified investment which may be awarded eligibility
for credit under the program shall not exceed $2,000,000,000.</text>
</paragraph><paragraph id="HADCDF58048B94CAE95BC5CEC774392D4"><enum>(2)</enum><header>Period of
issuance</header><text>A certificate of eligibility under paragraph (1) may be
issued only during the 10-fiscal year period beginning on October 1,
2007.</text>
</paragraph><paragraph id="H2D562E40563E467E8E0034C2B1CF3CAB"><enum>(3)</enum><header>Selection
criteria</header><text>The Secretary shall not make a competitive certification
award for qualified investment for credit eligibility under this section unless
the recipient has documented to the satisfaction of the Secretary that—</text>
<subparagraph id="HCBDF7190EBD44AFFA66F222547215113"><enum>(A)</enum><text>the proposal of
the award recipient is financially viable,</text>
</subparagraph><subparagraph id="H804E172AB1FA4D648910184C947EF52D"><enum>(B)</enum><text>the recipient will
provide sufficient information to the Secretary for the Secretary to ensure
that the qualified investment is spent efficiently and effectively,</text>
</subparagraph><subparagraph id="H84E3C38CC09846B7AC97BB4671094C8E"><enum>(C)</enum><text>the fuels
identified with respect to the gasification technology for such project will
comprise at least 90 percent of the fuels required by the project for the
production of transportation grade liquid fuels,</text>
</subparagraph><subparagraph id="HD390567802BE4048A6BB3CCF2C31D27"><enum>(D)</enum><text>the award
recipient’s project team is competent in the planning and construction of coal
gasification facilities and familiar with operation of the Fischer-Tropsch
process, with preference given to those recipients with experience which
demonstrates successful and reliable operations of such process, and</text>
</subparagraph><subparagraph id="HC9715EF593F9446292D2DC9E78D4776"><enum>(E)</enum><text>the award recipient
has met other criteria established and published by the Secretary.</text>
</subparagraph></paragraph></subsection><subsection id="HC873583798F443FF835C8402BF854300"><enum>(e)</enum><header>Denial of double
benefit</header><text>No deduction or other credit shall be allowed with
respect to the basis of any property taken into account in determining the
credit allowed under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H682D6D6DA3D74709AB2700A5794554D8"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="HFBACA85A46E247CBBF4B104C4FE0C96E"><enum>(1)</enum><text>Section
49(a)(1)(C) of the Internal Revenue Code of 1986 is amended by striking
<quote>and</quote> at the end of clause (iii), by striking the period at the
end of clause (iv) and inserting <quote>, and</quote>, and by adding after
clause (iv) the following new clause:</text>
<quoted-block id="HEE01794829744A2C83CF6B00B5B5587C">
<clause id="HEA93105B134B40F8A279B6C73DED9ED9"><enum>(v)</enum><text>the basis of any
property which is part of a qualifying coal-to-liquid fuels project under
section
48C.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HC971BB8FC8464DD8A6058C44CE356C24"><enum>(2)</enum><text>The table of
sections for subpart E of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 48B the following new
item:</text>
<quoted-block id="HBF25C5F5DF12415D9C13428BD3C8EC9B" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 48C. Qualifying coal-to-liquid fuels
project
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBD1B12B5B7124CF590CDB3FCE71B8628"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after the date of the enactment of this Act, under rules similar to the rules
of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day
before the date of the enactment of the Revenue Reconciliation Act of
1990).</text>
</subsection></section><section id="H870D11B1E8734D1EB42EC188F9FB006F"><enum>512.</enum><header>Temporary
expensing for equipment used in coal-to-liquid fuels process</header>
<subsection id="H21A3B50D6813427ABF26CCE2FF8989E8"><enum>(a)</enum><header>In
general</header><text>Part VI of subchapter B of chapter 1 of the Internal
Revenue Code of 1986 is amended by inserting after section 179E the following
new section:</text>
<quoted-block id="H70A9E84E0815409AB33F3CDA35F26864">
<section id="H648A0ABD7B47466BA801E40BCB919D7"><enum>179F.</enum><header>Election to
expense certain coal-to-liquid fuels facilities</header>
<subsection id="H0A2003FC17414339AE37F37B8000E12E"><enum>(a)</enum><header>Treatment as
expenses</header><text>A taxpayer may elect to treat the cost of any qualified
coal-to-liquid fuels process property as an expense which is not chargeable to
capital account. Any cost so treated shall be allowed as a deduction for the
taxable year in which the expense is incurred.</text>
</subsection><subsection id="H36361BCC05B54F02A65B608299D33E82"><enum>(b)</enum><header>Election</header>
<paragraph id="HE588DF2FB22942848B60E00030A4800"><enum>(1)</enum><header>In
general</header><text>An election under this section for any taxable year shall
be made on the taxpayer’s return of the tax imposed by this chapter for the
taxable year. Such election shall be made in such manner as the Secretary may
by regulations prescribe.</text>
</paragraph><paragraph id="H9BB49BEBCA914CE9AB214B56B3729E00"><enum>(2)</enum><header>Election
irrevocable</header><text>Any election made under this section may not be
revoked except with the consent of the Secretary.</text>
</paragraph></subsection><subsection id="H0D312BEDC4724C5E997E9D5FC6773CA7"><enum>(c)</enum><header>Qualified
coal-to-liquid fuels process property</header><text>The term <term>qualified
coal-to-liquid fuels process property</term> means any property located in the
United States—</text>
<paragraph id="H793E912E43A147D592B290FB00194F30"><enum>(1)</enum><text>which employs the
Fischer-Tropsch process to produce transportation grade liquid fuels from a
feedstock that is primarily domestic coal (including any property which allows
for the capture, transportation, or sequestration of by-products resulting from
such process, including carbon emissions),</text>
</paragraph><paragraph id="HFC347B7933764F29B1501469A433CE1F"><enum>(2)</enum><text>the original use
of which commences with the taxpayer,</text>
</paragraph><paragraph id="HD8DB8489A4914B6900814EE288530887"><enum>(3)</enum><text>the construction
of which—</text>
<subparagraph id="HB73942FAA1D14A6B9F9953A345EE2E96"><enum>(A)</enum><text>except as provided
in subparagraph (B), is subject to a binding construction contract entered into
after the date of the enactment of this section and before January 1, 2011, but
only if there was no written binding construction contract entered into on or
before such date of enactment, or</text>
</subparagraph><subparagraph id="HC83723041682499DB0AEC43E7B94D013"><enum>(B)</enum><text>in the case of
self-constructed property, began after the date of the enactment of this
section and before January 1, 2011, and</text>
</subparagraph></paragraph><paragraph id="HF1549998EDA24E4E875CD5B42BBD14D5"><enum>(4)</enum><text>which is placed in
service by the taxpayer after the date of the enactment of this section and
before January 1, 2016.</text>
</paragraph></subsection><subsection id="HC9B19CE18CFF40AFA37E5B6E9612D2A0"><enum>(d)</enum><header>Election To
allocate deduction to cooperative owner</header><text>If—</text>
<paragraph id="H0F1BFAE09BD04609B76606D9A3478D8E"><enum>(1)</enum><text>a taxpayer to
which subsection (a) applies is an organization to which part I of subchapter T
applies, and</text>
</paragraph><paragraph id="H199558EB880949F2834294BACCC82EE2"><enum>(2)</enum><text>one or more
persons directly holding an ownership interest in the taxpayer are
organizations to which part I of subchapter T apply,</text>
</paragraph><continuation-text continuation-text-level="subsection">the
taxpayer may elect to allocate all or a portion of the deduction allowable
under subsection (a) to such persons. Such allocation shall be equal to the
person’s ratable share of the total amount allocated, determined on the basis
of the person’s ownership interest in the taxpayer. The taxable income of the
taxpayer shall not be reduced under section 1382 by reason of any amount to
which the preceding sentence applies.</continuation-text></subsection><subsection id="HEF43A41152EC4F5CAB18F8EC2B1FF907"><enum>(e)</enum><header>Basis
reduction</header>
<paragraph id="H5372D4610D9340FC9CF0E087005EF853"><enum>(1)</enum><header>In
general</header><text>For purposes of this title, if a deduction is allowed
under this section with respect to any qualified coal-to-liquid fuels process
property, the basis of such property shall be reduced by the amount of the
deduction so allowed.</text>
</paragraph><paragraph id="H8D1D35E5675A4891BF77BE1E05D6B0F8"><enum>(2)</enum><header>Ordinary income
recapture</header><text>For purposes of section 1245, the amount of the
deduction allowable under subsection (a) with respect to any property which is
of a character subject to the allowance for depreciation shall be treated as a
deduction allowed for depreciation under section 167.</text>
</paragraph></subsection><subsection id="H79B1945BEAE34DCAB9D800AF45AD43E9"><enum>(f)</enum><header>Application with
other deductions and credits</header>
<paragraph id="HC1D29CFC08D1414697F607D45B47FAD1"><enum>(1)</enum><header>Other
deductions</header><text>No deduction shall be allowed under any other
provision of this chapter with respect to any expenditure with respect to which
a deduction is allowed under subsection (a) to the taxpayer.</text>
</paragraph><paragraph id="H453399D3E18646C8AC7C9697117C90E8"><enum>(2)</enum><header>Credits</header><text>No
credit shall be allowed under section 38 with respect to any amount for which a
deduction is allowed under subsection (a).</text>
</paragraph></subsection><subsection id="H037F4886D82A4C4DA2156C8CD8D13C86"><enum>(g)</enum><header>Reporting</header><text>No
deduction shall be allowed under subsection (a) to any taxpayer for any taxable
year unless such taxpayer files with the Secretary a report containing such
information with respect to the operation of the property of the taxpayer as
the Secretary shall
require.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H45D614DC3F3847E09F00EBCA9EAF2BFF"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HE22B603B22594D34960050D35708AC41"><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 display-inline="no-display-inline" id="H6DC1AD0ED5224D809B958878D7F37563" style="OLC">
<paragraph id="HEA78735ED84C44A100D5A41D00F508C8"><enum>(38)</enum><text>to the extent
provided in section
179F(e)(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9FE7E9F509F349B583D2E526B55CD1F"><enum>(2)</enum><text>Section 1245(a) of
such Code is amended by inserting <quote>179F,</quote> after
<quote>179D,</quote> both places it appears in paragraphs (2)(C) and
(3)(C).</text>
</paragraph><paragraph id="H0EFCEF1CD0D54FC99F402795292F0323"><enum>(3)</enum><text>Section 263(a)(1)
of such Code is amended by striking <quote>or</quote> at the end of
subparagraph (J), by striking the period at the end of subparagraph (K) and
inserting <quote>, or</quote>, and by inserting after subparagraph (K) the
following new subparagraph:</text>
<quoted-block id="H81623474707A4E54B91FDE8046A4E2D1">
<subparagraph id="H6A3FD799C5594C149D7219B1CA73B696"><enum>(L)</enum><text>expenditures for
which a deduction is allowed under section
179F.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HDA612AD8F9594AAFA313C0ABCD8107F6"><enum>(4)</enum><text>Section
312(k)(3)(B) of such Code is amended by striking <quote>or 179E</quote> each
place it appears in the heading and text and inserting <quote>179E, or
179F</quote>.</text>
</paragraph><paragraph id="H7B5C09A1B4324227993597D51FECEE8F"><enum>(5)</enum><text>The table of
sections for part VI of subchapter B of chapter 1 of such Code is amended by
inserting after the item relating to section 179E the following new
item:</text>
<quoted-block id="HCF582FA58ED0442BB627F57856510000" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 179F. Election to expense certain
coal-to-liquid fuels
facilities.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3A6D51AD851F4254004CA539C0413745"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
properties placed in service after the date of the enactment of this
Act.</text>
</subsection></section><section id="H8AB904A646B3483EA590B74807A5A090"><enum>513.</enum><header>Extension of
alternative fuel credit for fuel derived from coal through the Fischer-Tropsch
process</header>
<subsection id="H6B5AE0447985427B89B3FF1CC3B7D874"><enum>(a)</enum><header>Alternative fuel
credit</header><text display-inline="yes-display-inline">Paragraph (4) of
<external-xref legal-doc="usc" parsable-cite="usc/26/6426">section 6426(d)</external-xref> of the Internal Revenue Code of 1986 is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H89EC8753C6784E1A9760A2B6052D19D0" style="OLC">
<paragraph id="H05A7A02EBDA94813BB69DAF12CAC6152"><enum>(4)</enum><header>Termination</header><text>This
subsection shall not apply to—</text>
<subparagraph id="HFCA3EA37C2654924906332E015F64177"><enum>(A)</enum><text>any sale or use
involving liquid fuel derived from a feedstock that is primarily domestic coal
(including peat) through the Fischer-Tropsch process for any period after
September 30, 2020,</text>
</subparagraph><subparagraph id="H0E4C5D8F2CBB46FBA4D4E02911E1D2F8"><enum>(B)</enum><text>any sale or use
involving liquified hydrogen for any period after September 30, 2014,
and</text>
</subparagraph><subparagraph id="H96B2A22006244189AB3B48B4D2236CA2"><enum>(C)</enum><text>any other sale or
use for any period after September 30,
2009.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7F1E18BA1221490CB65EDA92B641E116"><enum>(b)</enum><header>Payments</header>
<paragraph id="HD9A65E65B9284351B75EAFA400D2A5F6"><enum>(1)</enum><header>In
general</header><text>Paragraph (5) of section 6427(e) of the Internal Revenue
Code of 1986 is amended by striking <quote>and</quote> and the end of
subparagraph (C), by striking the period at the end of subparagraph (D) and
inserting <quote>, and</quote>, and by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H6309239C381E4F4C8090DE415FF4114B" style="OLC">
<subparagraph id="H877327ED6219466E00E3E07B068CF35D"><enum>(E)</enum><text>any alternative
fuel or alternative fuel mixture (as so defined) involving liquid fuel derived
from coal (including peat) through the Fischer-Tropsch process sold or used
after September 30,
2020.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB2FA7045652F468EB665F419708D31EE"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 6427(e)(5)(C) of such Code is amended by
striking <quote>subparagraph (D)</quote> and inserting <quote>subparagraphs (D)
and (E)</quote>.</text>
</paragraph></subsection></section><section id="HA446E4E5B08A4D368488EEA7A963E0E8"><enum>514.</enum><header>Modifications
to enhanced oil recovery credit</header>
<subsection id="H2D1551AEE0B246278CCBF0C8055D4EF1"><enum>(a)</enum><header>Enhanced credit
for carbon dioxide injections</header><text>Section 43 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H9160EE5EDD22415BAC19ECA863968765" style="OLC">
<subsection id="H6C14E56F049D4FC197EAB0783B801ECA"><enum>(f)</enum><header>Enhanced credit
for projects using qualified carbon dioxide</header>
<paragraph id="H2226822D55664BCA99B659C7C7790247"><enum>(1)</enum><header>In
general</header><text>For purposes of this section—</text>
<subparagraph id="HB760172229064E8594A0D019F2616200"><enum>(A)</enum><text>the term
<term>qualified project</term> includes a project described in paragraph (2),
and</text>
</subparagraph><subparagraph id="HBD8CD2FB26474589A100D30740075DB1"><enum>(B)</enum><text>in the case of a
project described in paragraph (2), subsection (a) shall be applied by
substituting <quote>50 percent</quote> for <quote>15 percent</quote>.</text>
</subparagraph></paragraph><paragraph id="H8815734E08424CC48EA3F2F68628792"><enum>(2)</enum><header>Projects
described</header><text>A project is described in this paragraph if it begins
or is substantially expanded after December 31, 2007, and</text>
<subparagraph id="H30ED2BFC639C4083A726F6D0CBF882CE"><enum>(A)</enum><text>uses qualified
carbon dioxide in an enhanced oil, natural gas, or coalbed methane recovery
method, which involves flooding or injection, or</text>
</subparagraph><subparagraph id="H31250060AD8C43CF8E5E98EE39937869"><enum>(B)</enum><text>enables the
capture or sequestration of qualified carbon dioxide.</text>
</subparagraph></paragraph><paragraph id="HED62DCCB0D25422E876D371CA836EA06"><enum>(3)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<subparagraph id="H5909BBFED35D4CB400E925C426506B4D"><enum>(A)</enum><header>Enhanced oil
recovery</header><text>The term <term>enhanced oil recovery</term> means
recovery of oil by injecting or flooding with qualified carbon dioxide.</text>
</subparagraph><subparagraph id="H1D9B898736CD4C6596FC312C8EB43ED"><enum>(B)</enum><header>Enhanced natural
gas recovery</header><text>The term <term>enhanced natural gas recovery</term>
means recovery of natural gas by injecting or flooding with qualified carbon
dioxide.</text>
</subparagraph><subparagraph id="HA10452ACACDD4378B5058400E0E6D254"><enum>(C)</enum><header>Enhanced coalbed
methane recovery</header><text>The term <term>enhanced coalbed methane
recovery</term> means recovery of coalbed methane by injecting or flooding with
qualified carbon dioxide.</text>
</subparagraph><subparagraph id="HD4A77A42675048ED807E08C7DBF4D3D"><enum>(D)</enum><header>Qualified carbon
dioxide</header><text>The term <term>qualified carbon dioxide</term> means
carbon dioxide which is produced from the gasification and subsequent
refinement of a feedstock which is primarily domestic coal, at a facility which
produces coal-to-liquid fuel.</text>
</subparagraph><subparagraph id="H9921E0DA41F84BF0A4168C322C688BA6"><enum>(E)</enum><header>Capture or
sequestration</header><text>The term <term>capture or sequestration</term>
means any equipment or facility necessary to—</text>
<clause id="HC97CDC9EDCD7402FB15D003EB817282"><enum>(i)</enum><text>capture or separate
qualified carbon dioxide from other emissions,</text>
</clause><clause id="HDD78762497C84488A7A008E9CD41B41"><enum>(ii)</enum><text>transport
qualified carbon dioxide, or</text>
</clause><clause id="HE2210C1510A141A5B62FC861C3B40045"><enum>(iii)</enum><text>process and use
qualified carbon dioxide in a qualified project.</text>
</clause></subparagraph></paragraph><paragraph id="H928C49FF26504015A76E1B09288ECB00"><enum>(4)</enum><header>Termination</header><text>This
subsection shall not apply to costs paid or incurred for any qualified project
after December 31,
2020.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H76488E4A2EE0425B8315E4449D018504"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HBC3F05E1A71145A1ACF89D3EE148C553"><enum>(1)</enum><text>Section 43 of the
Internal Revenue Code of 1986 is amended—</text>
<subparagraph id="H668957A49E15416D938652A2D89D9EF2"><enum>(A)</enum><text>by striking
<quote>enhanced oil recovery credit</quote> in subsection (a) and inserting
<quote>enhanced oil, natural gas, and coalbed methane recovery, and capture and
sequestration credit</quote>,</text>
</subparagraph><subparagraph id="HB3E5F8245CD54E81AC00E38188005915"><enum>(B)</enum><text>by striking
<quote>qualified enhanced oil recovery costs</quote> each place it appears and
inserting <quote>qualified costs</quote>,</text>
</subparagraph><subparagraph id="HA586925DE06C4706B1FB75B583B54534"><enum>(C)</enum><text>by striking
<quote>qualified enhanced oil recovery project</quote> each place it appears
and inserting <quote>qualified project</quote>, and</text>
</subparagraph><subparagraph id="H0908C2839B844A3FA77579BFCE838328"><enum>(D)</enum><text>by striking the
heading and inserting:</text>
<quoted-block display-inline="no-display-inline" id="HDE1FA8D24EA640A2AFBD1F58B5130CF" style="OLC">
<section id="H3131C61F8DEF42DD9BE3EAF9E69A95B"><enum>43.</enum><header>Enhanced oil,
natural gas, and coalbed methane recovery, and capture and sequestration
credit</header>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HE69CFF5014874FBDB0433D3F9F48A08B"><enum>(2)</enum><text>The item in the
table of sections for subpart D of part IV of subchapter A of chapter 1 of such
Code relating to section 43 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0C950A72B64F4A7D86F9C8974FF3EF1" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 43. Enhanced oil, natural
gas, and coalbed methane recovery, and capture and sequestration
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H47FA17089F264CD9995DF70011ECD247"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to costs
paid or incurred in taxable years ending after December 31, 2007.</text>
</subsection></section><section id="HCD35F3B07746498A8494159F007D5341"><enum>515.</enum><header>Allowance of
enhanced oil, natural gas, and coalbed methane recovery, and capture and
sequestration credit against the alternative minimum tax</header>
<subsection id="H05A5E24A348B48229230086F51FA5F50"><enum>(a)</enum><header>In
general</header><text>Subsection (c) of section 38 of the Internal Revenue Code
of 1986 (relating to limitation based on amount of tax) is amended by
redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively,
and by inserting after paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H6DE8D080612646E5BF9E37E4FB13606C" style="OLC">
<paragraph id="HFED3BF1175424CC2A2DDAB5FA20510AC"><enum>(4)</enum><header>Special rules
for enhanced oil, natural gas, and coalbed methane recovery, and capture and
sequestration credit</header><text>In the case of the enhanced oil, natural
gas, and coalbed methane recovery, and capture and sequestration credit
determined under section 43—</text>
<subparagraph id="HE7BFA0FA82244B7EAECB003CD5AFA475"><enum>(A)</enum><text>this section and
section 39 shall be applied separately with respect to such credit, and</text>
</subparagraph><subparagraph id="HD48ECA4A27D64E38A2112700AA230079"><enum>(B)</enum><text>in applying
paragraph (1) to such credit—</text>
<clause id="H51B5ED48D1A342C500B11049033900A5"><enum>(i)</enum><text>the tentative
minimum tax shall be treated as being zero, and</text>
</clause><clause id="H8EBE1B112DF14EFBB945CFF0E84E2206"><enum>(ii)</enum><text>the limitation
under paragraph (1) (as modified by clause (i)) shall be reduced by the credit
allowed under subsection (a) for the taxable year (other than the enhanced oil,
natural gas, and coalbed methane recovery, and capture and sequestration credit
and the specified
credits).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8C1EC46C9B8341C08D1138CE00211AD"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H6FFAE31B54A94D1BA1F0D5CD89FE3D22"><enum>(1)</enum><text>Section
38(c)(2)(A)(ii)(II) of such Code is amended by inserting <quote>the enhanced
oil, natural gas, and coalbed methane recovery, and capture and sequestration
credit,</quote> after <quote>employee credit,</quote>.</text>
</paragraph><paragraph id="HB85F8D0C8C3D4A21A1D5D316FCCAACE8"><enum>(2)</enum><text>Section
38(c)(3)(A)(ii)(II) of such Code is amended by inserting <quote>, the enhanced
oil, natural gas, coalbed methane recovery, capture and sequestration
credit,</quote> after <quote>employee credit</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5167B035A9A2465CA1CC31CAF57E23AD"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years ending after December 31, 2007.</text>
</subsection></section></subtitle><enum>VI</enum><header>Energy Efficient
Tax Credit for Vehicles</header>
<section display-inline="no-display-inline" id="H371E8860AA8D40648F002081884CFEC8" section-type="subsequent-section"><enum>601.</enum><header>Credit for hybrids
and plug-in hybrids</header>
<subsection id="H9C64C7ED8E5A4BE5BD961FBBDE005005"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of section 30B(d)(2) of the Internal
Revenue Code of 1986 (relating to credit amount for passenger automobiles and
light trucks) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H6618C19470424858B06CF34EF8CA8630" style="OLC">
<subparagraph id="H6CCEFB107F144E43A5B13934ECE1C668"><enum>(A)</enum><header>Credit amount
for passenger automobiles and light trucks</header>
<clause id="H20D801F3D11B42B1AB04E4FA983BCCE"><enum>(i)</enum><header>In
general</header><text>In the case of a new qualified hybrid motor vehicle
(other than a new qualified plug-in hybrid motor 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 determined under this paragraph is the sum
of the amounts determined under subclauses (I), (II), and (III).</text>
<subclause id="HA9E9883DF7914B24B6B37EAFE8A9BCAC"><enum>(I)</enum><header>Fuel
economy</header><text>The amount determined under this subclause is the amount
which would be determined under subsection (c)(2)(A) if such vehicle were a
vehicle referred to in such subsection.</text>
</subclause><subclause id="H63ECA72E2DFF4D2800004797BF1600A"><enum>(II)</enum><header>Conservation
credit</header><text>The amount determined under this subclause is the amount
which would be determined under subsection (c)(2)(B) if such vehicle were a
vehicle referred to in such subsection.</text>
</subclause><subclause id="H62C30294A60948469298FC1D1BD48903"><enum>(III)</enum><header>Domestic
acquisition</header><text>In the case of a vehicle acquired for use or lease by
the taxpayer from a domestic corporation, $1,000.</text>
</subclause></clause><clause id="H7F37D2C4CFDF4A0D8B904E0051081763"><enum>(ii)</enum><header>New qualified
plug-in hybrid motor vehicles</header><text>In the case of a new qualified
plug-in hybrid motor 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 determined under this paragraph is the sum of the amounts determined
under subclauses (I), (II), (III), and (IV).</text>
<subclause id="HC4E3043DF4FF4F439778A2DE53C04300"><enum>(I)</enum><header>Base
amount</header><text>The amount determined under this subclause is
$3,000.</text>
</subclause><subclause id="H5DED57C0D2284E71AFAEF99B50558E7D"><enum>(II)</enum><header>Flexible
fuel</header><text display-inline="yes-display-inline">In the case of a vehicle
which is warrantied by its manufacturer to operate on a fuel described in
section 30C(c)(1)(A), the amount determined under this subclause is
$150.</text>
</subclause><subclause id="H41DDEEA4303740FBAF008C00EA1CABE1"><enum>(III)</enum><header>Power of
traction battery</header><text display-inline="yes-display-inline">In the case
of vehicle which draws propulsion energy from a traction battery of not less
than 5 kWh, the amount determined under this subclause is $500, plus $250 for
each kWh that such battery exceeds 5 kWh. The amount determined under this
subclause shall not exceed $3,000.</text>
</subclause><subclause id="H63E3646CC37B43FC95899B0002A15065"><enum>(IV)</enum><header>Domestic
acquisition</header><text>In the case of a vehicle acquired for use or lease by
the taxpayer from a domestic corporation,
$1,000.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0A7163C11C2347E2A0FFC3B76F588CF3"><enum>(b)</enum><header>New qualified
plug-In hybrid motor vehicle</header><text>Subsection (d) of section 30B of
such Code is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H982AADE104D940F6AFCE004EEBF2A24D" style="OLC">
<paragraph id="HA645AED19E43464FAC05DF00E8D900E2"><enum>(4)</enum><header>New qualified
plug-in hybrid motor vehicle</header><text>For purposes of this subsection, the
term <term>new qualified plug-in hybrid motor vehicle</term> means any new
qualified hybrid motor vehicle which—</text>
<subparagraph id="HBC9D22EB28AB4849AF70798329E41F00"><enum>(A)</enum><text>meets or exceeds
the Bin 5 Tier II emission standard established in regulations prescribed by
the Administrator of the Environmental Protection Agency under section 202(i)
of the Clean Air Act for that make and model year vehicle,</text>
</subparagraph><subparagraph id="HD617109BC37D4D4EB25C4FFAA0451963"><enum>(B)</enum><text>draws propulsion
energy from a traction battery of not less than 4 kWh, and</text>
</subparagraph><subparagraph id="H60D835AC425F4E198473A0E27BCD5E53"><enum>(C)</enum><text>is equipped with a
means of recharging its rechargeable energy storage system from an external
source of
electricity.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD4FE0298C4734E57BC42324CCD128659"><enum>(c)</enum><header>Application of
limitation on number of hybrids eligible for credit</header>
<paragraph id="H712F5C61420F4B1F8600F9AED7AAC5D1"><enum>(1)</enum><header>In
general</header><text>Subsection (f) of section 30B of such Code is amended by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H014F74C80CE54BA894CE8771B7618F50" style="OLC">
<paragraph id="H4E689DA724804D6B8556FE0037C038B"><enum>(6)</enum><header>Separate
application to new qualified plug-in hybrid motor vehicles</header><text>In the
case of a new qualified plug-in hybrid motor vehicle, this subsection shall be
applied—</text>
<subparagraph id="H633E1325E67347EC00AF4E44032E8556"><enum>(A)</enum><text>separately with
respect to such vehicles by treating only new qualified plug-in hybrid motor
vehicles as qualified vehicles,</text>
</subparagraph><subparagraph id="HE3925B08C2BB4F738FB8EB4C9E463FAA"><enum>(B)</enum><text>by substituting
<quote>100,000</quote> for <quote>60,000</quote> in paragraph (2), and</text>
</subparagraph><subparagraph id="HC1C5F5BD8F694C8EBAC485745925A54B"><enum>(C)</enum><text>by substituting
<quote>the date of the enactment of paragraph (6)</quote> for <quote>December
31, 2005</quote> in paragraph
(2).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HDBD11E0DBF7748D0AEA2D532430290FF"><enum>(2)</enum><header>Conforming
amendment</header><text>Paragraph (5) of section 30B(f) of such Code is amended
by inserting <quote>other than a new qualified plug-in hybrid motor
vehicle</quote> after <quote>subsection (d)(2)(A)</quote>.</text>
</paragraph></subsection><subsection id="H34A2ED639DEE442DB1AD521DC7DB0837"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act, in taxable years
ending after such date.</text>
</subsection></section><enum>VII</enum><header>Extension and
modification of tax provisions</header>
<section id="H4DC8A3C24732401F9400486DC1F11C05" section-type="subsequent-section"><enum>700.</enum><header>Short title;
etc</header>
<subsection id="H514543E651D747C7881DE88194E1D51D"><enum>(a)</enum><header>Short
title</header><text display-inline="yes-display-inline">This title may be cited
as the <quote><short-title>Clean Energy Tax Stimulus Act
of 2008 </short-title></quote>.</text>
</subsection><subsection id="H198C1867A9674433B7D72DF26B0029D1"><enum>(b)</enum><header>Amendment of
1986 Code</header><text>Except as otherwise expressly provided, whenever in
this title 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.</text>
</subsection></section><subtitle id="H3F508B7E0345495EA39F006C838EC369"><enum>A</enum><header>Extension of clean
energy production incentives</header>
<section id="HECDB4C20BF2245CE84A2378EAE1044CC"><enum>701.</enum><header>Extension and
modification of renewable energy production tax credit</header>
<subsection id="HCF0A2CCDFF964813A05481743E5255B2"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Each of the following
provisions of section 45(d) (relating to qualified facilities) is amended by
striking <quote>January 1, 2009</quote> and inserting <quote>January 1,
2010</quote>:</text>
<paragraph id="H8B000AE9AA5B44759517FA1CBD6D43E0"><enum>(1)</enum><text>Paragraph
(1).</text>
</paragraph><paragraph id="H3BADC57C1F734662B98955D0102273B6"><enum>(2)</enum><text>Clauses (i) and
(ii) of paragraph (2)(A).</text>
</paragraph><paragraph id="HD3BB103B29614F769409AE2D5B00E2D5"><enum>(3)</enum><text>Clauses (i)(I) and
(ii) of paragraph (3)(A).</text>
</paragraph><paragraph id="HBFFB4232257C4F5F00BC2937D8913EB5"><enum>(4)</enum><text>Paragraph
(4).</text>
</paragraph><paragraph id="H04267E8473B440CAB02D1D2E00E683CF"><enum>(5)</enum><text>Paragraph
(5).</text>
</paragraph><paragraph id="H788FD4A24D4D49BEBC382CC861B755FF"><enum>(6)</enum><text>Paragraph
(6).</text>
</paragraph><paragraph id="H4861DB90BF6844F88284E246807D818E"><enum>(7)</enum><text>Paragraph
(7).</text>
</paragraph><paragraph id="H313121EAD73F4E8A94023C5E89644F78"><enum>(8)</enum><text>Paragraph
(8).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H79CC5B38599347E7ABF81D87DC6BDCE1"><enum>(9)</enum><text>Subparagraphs (A)
and (B) of paragraph (9).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HEABF79A3CD1E4294885E29A6BFEF8D53"><enum>(b)</enum><header>Production
credit for electricity produced from marine renewables</header>
<paragraph id="H71A794D311DB4EA2AF37FEC673478CAA"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 45(c) (relating to resources) 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="H71CAA5F74BD54E39B593ACA4A3393923" style="OLC">
<subparagraph id="H46511CD6BD554CDEB0009D7F703D4471"><enum>(I)</enum><text display-inline="yes-display-inline">marine and hydrokinetic renewable
energy.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H77AA0FC407CD4666BCF88C55AC02128"><enum>(2)</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="H1F7EA13647854473AC9669909898AFCF" style="OLC">
<paragraph commented="no" id="H37CBB4CB362145B896A1114715A4AC86"><enum>(10)</enum><header>Marine and
hydrokinetic renewable energy</header>
<subparagraph id="H8C2600976D5948B090083E3481E9D81F"><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="H753400B969C14E36B1C990411498A513"><enum>(i)</enum><text>waves, tides, and
currents in oceans, estuaries, and tidal areas,</text>
</clause><clause id="H93B3F477CB974A509638E60046003EC3"><enum>(ii)</enum><text>free flowing
water in rivers, lakes, and streams,</text>
</clause><clause id="H7D5FE4E7611E409BA800D8A0EC8B2475"><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="H0E4853C604364543A19529806D64A670"><enum>(iv)</enum><text>differentials in
ocean temperature (ocean thermal energy conversion).</text>
</clause></subparagraph><subparagraph id="H224E76F3640749468400028E93128DDE"><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>
</paragraph><paragraph id="HE4138BEB3F2A4A6D99E8CEC4D733190"><enum>(3)</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="HF28E5D7A6FDE4ADC9CF1F5DFC3001F00" style="OLC">
<paragraph id="H63100B7DBCE349BB9616C75272A87305"><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="H9514E8AD54A84A33AD81626316C5FA7B"><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="H05111A15C17E4ED8A833E9117732474D"><enum>(B)</enum><text>which is
originally placed in service on or after the date of the enactment of this
paragraph and before January 1,
2010.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H061924B1DE3A4D87841E501F20F7C18"><enum>(4)</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>
</paragraph><paragraph commented="no" id="H5FBC938DE8A54278A728015BFC7E14D1"><enum>(5)</enum><header>Coordination
with small irrigation power</header><text>Paragraph (5) of section 45(d), as
amended by subsection (a), is amended by striking <quote>January 1,
2010</quote> and inserting <quote>the date of the enactment of paragraph
(11)</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H178B787F940E451583CD148214390324"><enum>(c)</enum><header>Sales of
electricity to regulated public utilities treated as sales to unrelated
persons</header><text>Section 45(e)(4) (relating to related persons) is amended
by adding at the end the following new sentence: <quote>A taxpayer shall be
treated as selling electricity to an unrelated person if such electricity is
sold to a regulated public utility (as defined in section
7701(a)(33).</quote>.</text>
</subsection><subsection id="H4AC1AEE614F5430A86ABECEFB4E1F750"><enum>(d)</enum><header>Trash facility
clarification</header><text>Paragraph (7) of section 45(d) is amended—</text>
<paragraph id="H15D3CFE14E8F489891CC6D13F9265210"><enum>(1)</enum><text>by striking
<quote>facility which burns</quote> and inserting <quote>facility (other than a
facility described in paragraph (6)) which uses</quote>, and</text>
</paragraph><paragraph id="H2628440871054ABEAA9E13C888417F25"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">combustion</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H1D4E7515843A40139C616ED2A265B87"><enum>(e)</enum><header>Effective
dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9DE5874C6EE6430381C820B08B506B43"><enum>(1)</enum><header>Extension</header><text>The
amendments made by subsection (a) shall apply to property originally placed in
service after December 31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H054A6D39A51D49B78E00102738559D94"><enum>(2)</enum><header>Modifications</header><text>The
amendments made by subsections (b) and (c) shall apply to electricity produced
and sold after the date of the enactment of this Act, in taxable years ending
after such date.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A116CDC184B4C699749D2FB616C18B1"><enum>(3)</enum><header>Trash facility
clarification</header><text>The amendments made by subsection (d) shall apply
to electricity produced and sold before, on, or after December 31, 2007.</text>
</paragraph></subsection></section><section id="HC5594D13BB75437AA6EF6FB8F54E8EB9"><enum>702.</enum><header>Extension and
modification of solar energy and fuel cell investment tax credit</header>
<subsection id="HB956D6FD033E4C8580D0004206E85935"><enum>(a)</enum><header>Extension of
credit</header>
<paragraph id="H698132083E804F4B8E96829639E5F550"><enum>(1)</enum><header>Solar energy
property</header><text>Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a)
(relating to energy credit) are each amended by striking <quote>January 1,
2009</quote> and inserting <quote>January 1, 2017</quote>.</text>
</paragraph><paragraph id="H7852D222BACA48B1AB83FD68F926F36"><enum>(2)</enum><header>Fuel cell
property</header><text>Subparagraph (E) of section 48(c)(1) (relating to
qualified fuel cell property) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2016</quote>.</text>
</paragraph><paragraph id="H0D96C4A99FA6466882F394E7F74406D1"><enum>(3)</enum><header>Qualified
microturbine property</header><text>Subparagraph (E) of section 48(c)(2)
(relating to qualified microturbine property) is amended by striking
<quote>December 31, 2008</quote> and inserting <quote>December 31,
2016</quote>.</text>
</paragraph></subsection><subsection id="H572D6A49A39B4CD58E7D7F69B8F76074"><enum>(b)</enum><header>Allowance of
energy credit against alternative minimum tax</header><text>Subparagraph (B) of
section 38(c)(4) (relating to specified credits) is amended by striking
<quote>and</quote> at the end of clause (iii), by striking the period at the
end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end
the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H8572BED0EB2A4C16BA51F2C126A24257" style="OLC">
<clause id="H1D1E28CC0CE34529B7A9FAEB5D004EFA"><enum>(v)</enum><text>the credit
determined under section 46 to the extent that such credit is attributable to
the energy credit determined under section
48.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H34EA72023C994FCBB530CFC9EA00C574"><enum>(c)</enum><header>Repeal of dollar
per kilowatt limitation for fuel cell property</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA07488BBC58A45D9AA82B23351940082"><enum>(1)</enum><header>In
general</header><text>Section 48(c)(1) (relating to qualified fuel cell), as
amended by subsection (a)(2), is amended by striking subparagraph (B) and by
redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and
(D), respectively.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1651AAC5F2C3483F9C227400B2DD70ED"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 48(a)(1) is amended by striking
<quote>paragraphs (1)(B) and (2)(B) of subsection (c)</quote> and inserting
<quote>subsection (c)(2)(B)</quote>.</text>
</paragraph></subsection><subsection id="H3F88D27701E64B85AFC89695C1DFD2F"><enum>(d)</enum><header>Public electric
utility property taken into account</header>
<paragraph id="HAA4872B4B8CC4C4B9CAB1E1C6D9523E1"><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="H0E9FDEADBE7C4C039356E9A7D3E11A0"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H3640826A58094363843C8D3D8FDC5051"><enum>(A)</enum><text>Paragraph (1) of
section 48(c), as amended by this section, is amended by striking subparagraph
(C) and redesignating subparagraph (D) as subparagraph (C).</text>
</subparagraph><subparagraph id="H276AD6C6C07B4FEBBF420322B6005E6B"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 48(c), as amended
by subsection (a)(3), is amended by striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).</text>
</subparagraph></paragraph></subsection><subsection id="HFB316B6275F6450E9DEF3300D62762C3"><enum>(e)</enum><header>Effective
dates</header>
<paragraph id="HC5D94C50FB3E4DA190CAF25D776E3E8C"><enum>(1)</enum><header>Extension</header><text>The
amendments made by subsection (a) shall take effect on the date of the
enactment of this Act.</text>
</paragraph><paragraph id="HE25B72B9A7914A2C9140F7A1443B93D9"><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="H7A75D89865D244038020A4D800E2ECF7"><enum>(3)</enum><header>Fuel cell
property and public electric utility 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></subsection></section><section display-inline="no-display-inline" id="H2EAE82BB506541BAB84F914109823430" section-type="subsequent-section"><enum>703.</enum><header>Extension and
modification of residential energy efficient property credit</header>
<subsection id="HDCEED9D9780B4776B5CA2E6503695D22"><enum>(a)</enum><header>Extension</header><text>Section
25D(g) (relating to termination) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4AD0F1E654BD49F6A9EFE4E8D01B00AD"><enum>(b)</enum><header>No dollar
limitation for credit for solar electric property</header>
<paragraph commented="no" display-inline="no-display-inline" id="H547E1495612C411B8F025F00DE50B813"><enum>(1)</enum><header>In
general</header><text>Section 25D(b)(1) (relating to maximum credit) is amended
by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1A880340302146DA00CDEFF1D3B836A"><enum>(2)</enum><header>Conforming
amendments</header><text>Section 25D(e)(4) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5EDCED8CA0C64176B9D387B16088B00"><enum>(A)</enum><text>by striking clause
(i) in subparagraph (A),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB4B1085005F54184842141063821AA6E"><enum>(B)</enum><text>by redesignating
clauses (ii) and (iii) in subparagraph (A) as clauses (i) and (ii),
respectively, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H99956E33D4BE4B888F69004F6614B33D"><enum>(C)</enum><text>by striking
<quote>, (2),</quote> in subparagraph (C).</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H32EC793DA8C347C0A5A8CD22E26B4259"><enum>(c)</enum><header>Credit allowed
against alternative minimum tax</header>
<paragraph commented="no" id="H25D7829B15C1440688D2C94B3B3C6F98"><enum>(1)</enum><header>In
general</header><text>Subsection (c) of section 25D is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H9C1EC6603696498DB91FF07B8554A2D" style="OLC">
<subsection commented="no" id="H41E37329CBA44040B8459CD796EC2663"><enum>(c)</enum><header>Limitation based
on amount of tax; carryforward of unused credit</header>
<paragraph commented="no" id="HB9D839FDE22E43D188C13E579C65E5A7"><enum>(1)</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 the
taxable year shall not exceed the excess of—</text>
<subparagraph commented="no" id="H8FA88A68A90749DC84B7E2424797DA2E"><enum>(A)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</subparagraph><subparagraph commented="no" id="HAF126292FDF946CD8E4878A1E1C7FCD0"><enum>(B)</enum><text>the sum of the
credits allowable under this subpart (other than this section) and section 27
for the taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" id="H3E3DD30684DC40E1A5724B6549024F6F"><enum>(2)</enum><header>Carryforward of
unused credit</header>
<subparagraph commented="no" id="HA8D65736329E43B1A1CEAFAECFFAC6"><enum>(A)</enum><header>Rule for years in
which all personal credits allowed against regular and alternative minimum
tax</header><text display-inline="yes-display-inline">In the case of a taxable
year to which section 26(a)(2) applies, if the credit allowable under
subsection (a) exceeds the limitation imposed by section 26(a)(2) for such
taxable year reduced by the sum of the credits allowable under this subpart
(other than this section), such excess shall be carried to the succeeding
taxable year and added to the credit allowable under subsection (a) for such
succeeding taxable year.</text>
</subparagraph><subparagraph commented="no" id="H5CEB4C66DD58409BB5BCCF225E79CF1D"><enum>(B)</enum><header>Rule for other
years</header><text>In the case of a taxable year to which section 26(a)(2)
does not apply, if the credit allowable under subsection (a) exceeds the
limitation imposed by paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit allowable under
subsection (a) for such succeeding taxable
year.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H5B034B54B7944FD99DEE042DAB1DCD51"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="HB1327A7738F04C65A369B8E2212E772"><enum>(A)</enum><text>Section 23(b)(4)(B)
is amended by inserting <quote>and section 25D</quote> after <quote>this
section</quote>.</text>
</subparagraph><subparagraph commented="no" id="HACCFFADDF47D4994005CD3C67FCCB3C"><enum>(B)</enum><text>Section 24(b)(3)(B)
is amended by striking <quote>and 25B</quote> and inserting <quote>, 25B, and
25D</quote>.</text>
</subparagraph><subparagraph commented="no" id="H225C07C403B3402FA33D49451E55BF1F"><enum>(C)</enum><text>Section 25B(g)(2)
is amended by striking <quote>section 23</quote> and inserting <quote>sections
23 and 25D</quote>.</text>
</subparagraph><subparagraph commented="no" id="H5BA6E755AC5147EFA84E67F5102491FD"><enum>(D)</enum><text>Section 26(a)(1)
is amended by striking <quote>and 25B</quote> and inserting <quote>25B, and
25D</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H2DDC961213B94204BFF33396FC9016D5"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="H19F0432F62C5488F92840729FA88AB15"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
taxable years beginning after December 31, 2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBAE62D06588A4EB1B79C56A49B874BAD"><enum>(2)</enum><header>Application of
EGTRRA sunset</header><text>The amendments made by subparagraphs (A) and (B) of
subsection (c)(2) shall be subject to title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 in the same manner as the provisions of such
Act to which such amendments relate.</text>
</paragraph></subsection></section><section id="HA91A3862739245C5A66F98373900F502"><enum>704.</enum><header>Extension and
modification of credit for clean renewable energy bonds</header>
<subsection id="H4758D578CE4140968E88E9CBDD001606"><enum>(a)</enum><header>Extension</header><text>Section
54(m) (relating to termination) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection id="H504F10F74A35417788C184C91B38D60"><enum>(b)</enum><header>Increase in
national limitation</header><text>Section 54(f) (relating to limitation on
amount of bonds designated) is amended—</text>
<paragraph id="H04B81680C9BA424A86E9B0D4F28471C5"><enum>(1)</enum><text>by inserting
<quote>, and for the period beginning after the date of the enactment of the
<short-title>Clean Energy Tax Stimulus Act of 2008
</short-title> and ending before January 1, 2010, $400,000,000</quote> after
<quote>$1,200,000,000</quote> in paragraph (1),</text>
</paragraph><paragraph id="H4F99AC9B621940EC99DCE37EC403843B"><enum>(2)</enum><text>by striking
<quote>$750,000,000 of the</quote> in paragraph (2) and inserting
<quote>$750,000,000 of the $1,200,000,000</quote>, and</text>
</paragraph><paragraph id="HAE9BF8F0E1C64A54852645CA4C26CFAC"><enum>(3)</enum><text>by striking
<quote>bodies</quote> in paragraph (2) and inserting <quote>bodies, and except
that the Secretary may not allocate more than <fraction>1/3</fraction> of the
$400,000,000 national clean renewable energy bond limitation to finance
qualified projects of qualified borrowers which are public power providers nor
more than <fraction>1/3</fraction> of such limitation to finance qualified
projects of qualified borrowers which are mutual or cooperative electric
companies described in section 501(c)(12) or section
1381(a)(2)(C)</quote>.</text>
</paragraph></subsection><subsection id="H96887FD68C8B44F89DB948B939F44D06"><enum>(c)</enum><header>Public power
providers defined</header><text>Section 54(j) is amended—</text>
<paragraph id="H5122F43C8B354ECEB127D4D8ED4E4273"><enum>(1)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBD5BE6B1168143C288ABC5A200EF4E74" style="OLC">
<paragraph id="H112A039E0282420DB52F9DB100E39EF0"><enum>(6)</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><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HAACADA001408432C9522513F2D9C103B"><enum>(2)</enum><text>by inserting
<quote><header-in-text level="subsection" style="OLC">; public power
provider</header-in-text></quote> before the period at the end of the
heading.</text>
</paragraph></subsection><subsection id="HE7AF0CE395C0458F82240005996032AC"><enum>(d)</enum><header>Technical
amendment</header><text>The third sentence of section 54(e)(2) is amended by
striking <quote>subsection (l)(6)</quote> and inserting <quote>subsection
(l)(5)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF3A3C96778764763BEFEADCAAB096830"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H86549D13A298451B009DC3BFF03B4815"><enum>705.</enum><header>Extension of
special rule to implement FERC restructuring policy</header>
<subsection commented="no" display-inline="no-display-inline" id="HBC0EBDCA22184DCD8EBB0C4D8B23C93"><enum>(a)</enum><header>Qualifying
electric transmission transaction</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7C72071A6A064C3A9BBE11935E79352C"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 451(i)(3)
(defining qualifying electric transmission transaction) is amended by striking
<quote>January 1, 2008</quote> and inserting <quote>January 1,
2010</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF3CC5C638BFC450DA349F3BB8315D8E9"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to
transactions after December 31, 2007.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC6D7A446AC3A40C7AAA13E44092D4857"><enum>(b)</enum><header>Independent
transmission company</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE2B6CBF017354B939CEF41D757210028"><enum>(1)</enum><header>In
general</header><text>Section 451(i)(4)(B)(ii) (defining independent
transmission company) is amended by striking <quote>December 31, 2007</quote>
and inserting <quote>the date which is 2 years after the date of such
transaction</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0F1821A900454E3398BBE826B602F52B"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall take effect as
if included in the amendments made by section 909 of the American Jobs Creation
Act of 2004.</text>
</paragraph></subsection></section><section id="H528532F37A9C4C37A4388EB1E34506A5"><enum>706.</enum><header>Extension of
wind production tax credit</header>
<subsection id="H7970847A71674025A5CF4B8EA2002933"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 45(d), as amended by this Act,
is amended by striking <quote>2010</quote> and inserting
<quote>2019</quote>.</text>
</subsection><subsection id="H883C8099A1494F549BCEA3BA7CE315C"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
originally placed in service on or after January 1, 2009.</text>
</subsection></section></subtitle><subtitle id="H369B348EC32B46DA833D102471D2288C"><enum>B</enum><header>Extension of
incentives To improve energy efficiency</header>
<section display-inline="no-display-inline" id="H93644089AECD4E9DA09662D8E36C03F9" section-type="subsequent-section"><enum>711.</enum><header>Extension and
modification of credit for energy efficiency improvements to existing
homes</header>
<subsection commented="no" id="HBB518A736C5243A59D83148B1393FBD4"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Section 25C(g)
(relating to termination) is amended by striking <quote>December 31,
2007</quote> and inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection id="H202BC623B3124E2586E537D1DEE2FE4B"><enum>(b)</enum><header>Qualified
biomass fuel property</header>
<paragraph id="HA1A22CAD8BF846FD9FC6CAC12DFF7711"><enum>(1)</enum><header>In
general</header><text>Section 25C(d)(3) is amended—</text>
<subparagraph id="HA0E160A6C3284A85A62F76DC53807F26"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (D),</text>
</subparagraph><subparagraph id="H024540B880F34EF8BD8F8DAFF72872E1"><enum>(B)</enum><text>by striking the
period at the end of subparagraph (E) and inserting <quote>, and</quote>,
and</text>
</subparagraph><subparagraph id="H81AB764C6FAC4DDBA6D5FA4913E0E88C"><enum>(C)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block act-name="" id="H1309FCFA2F644388892B21C7BA8238F9" style="OLC">
<subparagraph id="H6C48C55BF7104350ADA65341BBA1A1F"><enum>(F)</enum><text>a stove which uses
the burning of biomass fuel to heat a dwelling unit located in the United
States and used as a residence by the taxpayer, or to heat water for use in
such a dwelling unit, and which has a thermal efficiency rating of at least 75
percent.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H54CCAF99E97F4E7500ECAB148EB92292"><enum>(2)</enum><header>Biomass
fuel</header><text>Section 25C(d) (relating to residential energy property
expenditures) is amended by adding at the end the following new
paragraph:</text>
<quoted-block act-name="" id="H4BA300D60C65417B9D9C2989B13410D5" style="OLC">
<paragraph id="H9E0F0651FDF74442B8CC835B0072CA15"><enum>(6)</enum><header>Biomass
fuel</header><text>The term <term>biomass fuel</term> means any plant-derived
fuel available on a renewable or recurring basis, including agricultural crops
and trees, wood and wood waste and residues (including wood pellets), plants
(including aquatic plants), grasses, residues, and
fibers.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HC391B35812FB4573AB90303EB9A9F219"><enum>(c)</enum><header>Modifications of
standards for energy-efficient building property</header>
<paragraph id="H4F07AD14F518465882396159DE68C0D8"><enum>(1)</enum><header>Electric heat
pumps</header><text>Subparagraph (B) of section 25C(d)(3) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H9BB3CDD486E24371A3A5BCF0EE288079" style="OLC">
<subparagraph id="HED8149064879418B98DD74AACB009650"><enum>(A)</enum><text>an electric heat
pump which achieves the highest efficiency tier established by the Consortium
for Energy Efficiency, as in effect on January 1,
2008.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H345799FFC0354228002D6D9685E73898"><enum>(2)</enum><header>Central air
conditioners</header><text>Section 25C(d)(3)(D) is amended by striking
<quote>2006</quote> and inserting <quote>2008</quote>.</text>
</paragraph><paragraph id="HF137751C6E714C469FC6533D00878015"><enum>(3)</enum><header>Water
Heaters</header><text>Subparagraph (E) of section 25C(d) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H0E625FE52AD641ED85A6EA5B00DC3707" style="OLC">
<subparagraph id="H1FF14BC1068A4B838FA5FD17B77BF501"><enum>(E)</enum><text>a natural gas,
propane, or oil water heater which has either an energy factor of at least 0.80
or a thermal efficiency of at least 90
percent.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1110ACBB03224421864D32976D385F12"><enum>(4)</enum><header>Oil furnaces and
hot water boilers</header><text>Paragraph (4) of section 25C(d) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HFC494708BEF94004A94F9D2016DCE83F" style="OLC">
<paragraph id="H6C77F5CFC15A4EBCAAADED3D894D54AA"><enum>(4)</enum><header>Qualified
natural gas, propane, and oil furnaces and hot water boilers</header>
<subparagraph id="HA057DCF3A9B74BC2A24D9FA8D7792573"><enum>(A)</enum><header>Qualified
natural gas furnace</header><text>The term <term>qualified natural gas
furnace</term> means any natural gas furnace which achieves an annual fuel
utilization efficiency rate of not less than 95.</text>
</subparagraph><subparagraph id="HED6558B1C8E247F486D567A1DBB5A5DE"><enum>(B)</enum><header>Qualified
natural gas hot water boiler</header><text>The term <term>qualified natural gas
hot water boiler</term> means any natural gas hot water boiler which achieves
an annual fuel utilization efficiency rate of not less than 90.</text>
</subparagraph><subparagraph id="H2991A7B28C5245C5B4985F6213DBFE93"><enum>(C)</enum><header>Qualified
propane furnace</header><text>The term <term>qualified propane furnace</term>
means any propane furnace which achieves an annual fuel utilization efficiency
rate of not less than 95.</text>
</subparagraph><subparagraph id="H766BDA383EB1449190BF024DF0CB3E99"><enum>(D)</enum><header>Qualified
propane hot water boiler</header><text>The term <term>qualified propane hot
water boiler</term> means any propane hot water boiler which achieves an annual
fuel utilization efficiency rate of not less than 90.</text>
</subparagraph><subparagraph id="H10330E78158D4E89BB89DBCEFF70DB47"><enum>(E)</enum><header>Qualified oil
furnaces</header><text>The term <term>qualified oil furnace</term> means any
oil furnace which achieves an annual fuel utilization efficiency rate of not
less than 90.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H025AF9FE79224D13B2CA6E41193750BD"><enum>(F)</enum><header>Qualified oil
hot water boiler</header><text>The term <term>qualified oil hot water
boiler</term> means any oil hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than
90.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3CD6FD43D18F409585D527141929AB10"><enum>(d)</enum><header>Effective
date</header><text>The amendments made this section shall apply to expenditures
made after December 31, 2007.</text>
</subsection></section><section commented="no" id="HEC2681415B4B4C90BB006F4BDA2EF4E2"><enum>712.</enum><header>Extension and
modification of tax credit for energy efficient new homes</header>
<subsection commented="no" id="H96A41CE0DCAD43AAB55EB2BB7586634D"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Subsection (g) of
section 45L (relating to termination) is amended by striking <quote>December
31, 2008</quote> and inserting <quote>December 31, 2010</quote>.</text>
</subsection><subsection id="H3E4B151385E545B2AAE6E06038E136D2"><enum>(b)</enum><header>Allowance for
contractor's personal residence</header><text>Subparagraph (B) of section
45L(a)(1) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HCE8682257D594E0DB34984D5BFB48092" style="OLC">
<subparagraph id="HF6A706CF70BD41BA8D72A382A003F33B"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HF260705124004354A672BC7500708B20"><enum>(i)</enum><text>acquired by a person
from such eligible contractor and used by any person as a residence during the
taxable year, or</text>
</clause><clause id="H3046F87D70804AF7A9F1ABB11297F734" indent="up1"><enum>(ii)</enum><text>used by such eligible contractor
as a residence during the taxable
year.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0ECEA203B20E4221860842D3839665EF"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to homes
acquired after December 31, 2008.</text>
</subsection></section><section commented="no" id="H541D25598CF84C789C5BCE37229281E1"><enum>713.</enum><header>Extension and
modification of energy efficient commercial buildings deduction</header>
<subsection commented="no" id="H52BB9CB8158D4E47B769F960C60655AA"><enum>(a)</enum><header>Extension</header><text>Section
179D(h) (relating to termination) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" id="HCBC2969052F04CEC972FD6850071606E"><enum>(b)</enum><header>Adjustment of
maximum deduction amount</header>
<paragraph commented="no" id="H850DC10C360D4A28B8FB2E1B2DBD7DB7"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 179D(b)(1) (relating to
maximum amount of deduction) is amended by striking <quote>$1.80</quote> and
inserting <quote>$2.25</quote>.</text>
</paragraph><paragraph id="HA0C57680C72F4B5BAC8B68F028240EC"><enum>(2)</enum><header>Partial
allowance</header><text>Paragraph (1) of section 179D(d) is amended—</text>
<subparagraph id="H8EA721E6DA1C48B687582EA3A7E84200"><enum>(A)</enum><text>by striking
<quote>$.60</quote> and inserting <quote>$0.75</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4F50E2EA41CA4CBDBE94F02DB8CB5C76"><enum>(B)</enum><text>by striking
<quote>$1.80</quote> and inserting <quote>$2.25</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF600E19B82354C43006279C8D62FCD58"><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 display-inline="no-display-inline" id="HB0C9AB34D91D41B1A84CE3CF28D2AFB4" section-type="subsequent-section"><enum>714.</enum><header>Modification and
extension of energy efficient appliance credit for appliances produced after
2007</header>
<subsection id="H4917ECF7D9A24547985E794933BC94B9"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 45M (relating to applicable
amount) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H9D920CBEAFC247DC963B7E32E5C9C4FA" style="OLC">
<subsection id="H1643A6DA8E8D4FFE97C806827B485070"><enum>(b)</enum><header>Applicable
amount</header><text>For purposes of subsection (a)—</text>
<paragraph id="HE470B4917C0B4AC59990978802CBA3E1"><enum>(1)</enum><header>Dishwashers</header><text>The
applicable amount is—</text>
<subparagraph id="H68A3973D384E45168DA1BD66B3B4E439"><enum>(A)</enum><text>$45 in the case of
a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses
no more than 324 kilowatt hours per year and 5.8 gallons per cycle, and</text>
</subparagraph><subparagraph id="HDB28D1FF73C346D7AEAB8773C3B800EB"><enum>(B)</enum><text>$75 in the case of
a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and
which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle
(5.5 gallons per cycle for dishwashers designed for greater than 12 place
settings).</text>
</subparagraph></paragraph><paragraph id="H6185AE192A7349C200DB59172BF05524"><enum>(2)</enum><header>Clothes
washers</header><text>The applicable amount is—</text>
<subparagraph id="H915BC8A98A7C42CAB88397C5DF006046"><enum>(A)</enum><text>$75 in the case of
a residential top-loading clothes washer manufactured in calendar year 2008
which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0
water consumption factor,</text>
</subparagraph><subparagraph id="H63DF392411DD4AA5BFCAE116B5B74C08"><enum>(B)</enum><text>$125 in the case
of a residential top-loading clothes washer manufactured in calendar year 2008
or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed
a 7.5 water consumption factor,</text>
</subparagraph><subparagraph id="HF4229736E3E547248778F3C0F766DF77"><enum>(C)</enum><text>$150 in the case
of a residential or commercial clothes washer manufactured in calendar year
2008, 2009, or 2010 which meets or exceeds 2.0 modified energy factor and does
not exceed a 6.0 water consumption factor, and</text>
</subparagraph><subparagraph id="H46E9116BB3F24C9E005DC6332449D98D"><enum>(D)</enum><text>$250 in the case
of a residential or commercial clothes washer manufactured in calendar year
2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does
not exceed a 4.5 water consumption factor.</text>
</subparagraph></paragraph><paragraph id="H89087345B4AB4B9D86A106529EB148B0"><enum>(3)</enum><header>Refrigerators</header><text>The
applicable amount is—</text>
<subparagraph id="H587BFDD384D841F58677CDD2C6DE2EC0"><enum>(A)</enum><text>$50 in the case of
a refrigerator which is manufactured in calendar year 2008, and consumes at
least 20 percent but not more than 22.9 percent less kilowatt hours per year
than the 2001 energy conservation standards,</text>
</subparagraph><subparagraph id="HF163313BA0984BE10070882B7E1DA06B"><enum>(B)</enum><text>$75 in the case of
a refrigerator which is manufactured in calendar year 2008 or 2009, and
consumes at least 23 percent but no more than 24.9 percent less kilowatt hours
per year than the 2001 energy conservation standards,</text>
</subparagraph><subparagraph id="H8756490139AD4935A6AAF79847BF2324"><enum>(C)</enum><text>$100 in the case
of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010,
and consumes at least 25 percent but not more than 29.9 percent less kilowatt
hours per year than the 2001 energy conservation standards, and</text>
</subparagraph><subparagraph id="HEF6098633707472CBD075C37DD8672F5"><enum>(D)</enum><text>$200 in the case
of a refrigerator manufactured in calendar year 2008, 2009, or 2010 and which
consumes at least 30 percent less energy than the 2001 energy conservation
standards.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC7703C3C6DE64A22A6E0345E58023FF9"><enum>(b)</enum><header>Eligible
production</header>
<paragraph id="H9440C642476A4A8FABE5AC00F4F99BE8"><enum>(1)</enum><header>Similar
treatment for all appliances</header><text>Subsection (c) of section 45M
(relating to eligible production) is amended—</text>
<subparagraph id="H1EAEF8CCCA2F416480F6E0B42F3BDABE"><enum>(A)</enum><text>by striking
paragraph (2),</text>
</subparagraph><subparagraph id="H64951113CA32496ABAA1F5CDC49CAD3"><enum>(B)</enum><text>by striking
<quote>(1) <header-in-text level="paragraph" style="OLC">In
general</header-in-text></quote> and all that follows through <quote>the
eligible</quote> and inserting <quote>The eligible</quote>, and</text>
</subparagraph><subparagraph id="H5EFFAB5980B14486003038DA01FA8FA8"><enum>(C)</enum><text>by moving the text
of such subsection in line with the subsection heading and redesignating
subparagraphs (A) and (B) as paragraphs (1) and (2), respectively.</text>
</subparagraph></paragraph><paragraph id="H74F3270C02844D7A84FB659FEB7D33D2"><enum>(2)</enum><header>Modification of
base period</header><text>Paragraph (2) of section 45M(c), as amended by
paragraph (1) of this section, is amended by striking <quote>3-calendar
year</quote> and inserting <quote>2-calendar year</quote>.</text>
</paragraph></subsection><subsection id="H78DE5141FE8244D6A21676BD949F047D"><enum>(c)</enum><header>Types of energy
efficient appliances</header><text>Subsection (d) of section 45M (defining
types of energy efficient appliances) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H68B4EA41E25643F3AFDEE9E5A2DD0799" style="OLC">
<subsection id="H3205C4B2850248FD94FDF3D600002153"><enum>(d)</enum><header>Types of energy
efficient appliance</header><text display-inline="yes-display-inline">For
purposes of this section, the types of energy efficient appliances are—</text>
<paragraph id="H44C90DB478ED49B69FDBFE2EC311E637"><enum>(1)</enum><text>dishwashers
described in subsection (b)(1),</text>
</paragraph><paragraph id="H98663CFEB2E740AD93F46F11156FA00"><enum>(2)</enum><text>clothes washers
described in subsection (b)(2), and</text>
</paragraph><paragraph id="H870C9293C11F4C27B39C2900BBBE2D3C"><enum>(3)</enum><text>refrigerators
described in subsection
(b)(3).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H31D23379D50943D100A66E5897AD581E"><enum>(d)</enum><header>Aggregate credit
amount allowed</header>
<paragraph id="H7BB34A5239B6423C87647658E7FE94F3"><enum>(1)</enum><header>Increase in
limit</header><text>Paragraph (1) of section 45M(e) (relating to aggregate
credit amount allowed) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H111C8DEA5DCB4006BA492F8FD6931732" style="OLC">
<paragraph id="H6399E1666B334C5CBD3138E3E5714440"><enum>(1)</enum><header>Aggregate credit
amount allowed</header><text display-inline="yes-display-inline">The aggregate
amount of credit allowed under subsection (a) with respect to a taxpayer for
any taxable year shall not exceed $75,000,000 reduced by the amount of the
credit allowed under subsection (a) to the taxpayer (or any predecessor) for
all prior taxable years beginning after December 31,
2007.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9197A258C74E46F38D74D5D8DC2BBE3B"><enum>(2)</enum><header>Exception for
certain refrigerator and clothes washers</header><text>Paragraph (2) of section
45M(e) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HB4B055BF82094292B318C0EE4F7DD7F" style="OLC">
<paragraph id="H1C35BD36F1724755BAAF5FFFC5DC146"><enum>(2)</enum><header>Amount allowed
for certain refrigerators and clothes washers</header><text display-inline="yes-display-inline">Refrigerators described in subsection
(b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be
taken into account under paragraph
(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4C0B7EB6F594411C83AADEF733087CBB"><enum>(e)</enum><header>Qualified energy
efficient appliances</header>
<paragraph id="HD8EBD2EACA744D7F864BD99608DFABBF"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 45M(f) (defining qualified
energy efficient appliance) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HFD3B27B68E194462B4BCAF006DD37935" style="OLC">
<paragraph id="H1C6E2C1AEF1840FCB1D930A1EE247BFD"><enum>(1)</enum><header>Qualified energy
efficient appliance</header><text display-inline="yes-display-inline">The term
<term>qualified energy efficient appliance</term> means—</text>
<subparagraph id="HDCD45AD1830049138BD653B7F01DBAB3"><enum>(A)</enum><text display-inline="yes-display-inline">any dishwasher described in subsection
(b)(1),</text>
</subparagraph><subparagraph id="HB02FCDA599CE41DF96C56465EB97B9D2"><enum>(B)</enum><text>any clothes washer
described in subsection (b)(2), and</text>
</subparagraph><subparagraph id="H7B46B68AA4E0485C9FB0F8D270C038E"><enum>(C)</enum><text>any refrigerator
described in subsection
(b)(3).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H4640C629A0A64763A5E6D4EB9229C3C0"><enum>(2)</enum><header>Clothes
washer</header><text>Section 45M(f)(3) (defining clothes washer) is amended by
inserting <quote>commercial</quote> before <quote>residential</quote> the
second place it appears.</text>
</paragraph><paragraph id="HFAFD3A2B35A84E22A6E527843C53EC41"><enum>(3)</enum><header>Top-loading
clothes washer</header><text>Subsection (f) of section 45M (relating to
definitions) is amended by redesignating paragraphs (4), (5), (6), and (7) as
paragraphs (5), (6), (7), and (8), respectively, and by inserting after
paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HA0D1DABCEDEF4C9EA1DE14EE15C5E7D" style="OLC">
<paragraph id="H1142432325CA41FC80125657CC64A9EE"><enum>(4)</enum><header>Top-loading
clothes washer</header><text display-inline="yes-display-inline">The term
<term>top-loading clothes washer</term> means a clothes washer which has the
clothes container compartment access located on the top of the machine and
which operates on a vertical
axis.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8AD3F4565F1446EEA3DD00B751CD80D0"><enum>(4)</enum><header>Replacement of
energy factor</header><text>Section 45M(f)(6), as redesignated by paragraph
(3), is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H2B56EBFCCBD34EBDA2441BD4C7E0E0F6" style="OLC">
<paragraph id="H8F2EC755F26345A38E792D553BA651C5"><enum>(6)</enum><header>Modified energy
factor</header><text display-inline="yes-display-inline">The term
<term>modified energy factor</term> means the modified energy factor
established by the Department of Energy for compliance with the Federal energy
conservation
standard.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8CCEEE1A1261442BA741BE95AF2D086F"><enum>(5)</enum><header>Gallons per
cycle; water consumption factor</header><text>Section 45M(f) (relating to
definitions), as amended by paragraph (3), is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HFD95F492DA834A0384071D2CD1940851" style="OLC">
<paragraph id="HD18E77710F65461497FA2B4BFD01EDF1"><enum>(9)</enum><header>Gallons per
cycle</header><text display-inline="yes-display-inline">The term <term>gallons
per cycle</term> means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of a
dishwasher.</text>
</paragraph><paragraph id="H81CFB284CCB14820863ECC10533E12ED"><enum>(10)</enum><header>Water
consumption factor</header><text display-inline="yes-display-inline">The term
<term>water consumption factor</term> means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water consumption divided by the
cubic foot (or liter) capacity of the clothes
washer.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H330B38EA716A4FBBB5157F791391FFF"><enum>(f)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to appliances produced after December 31, 2007.</text>
</subsection></section></subtitle><enum>VIII</enum><header>Incentivizing
the Extraction and Processing of Oil Shale</header>
<section display-inline="no-display-inline" id="HB253AEE5898440779C8FF38E86746552"><enum>801.</enum><header>Incentives for
extraction and processing of oil shale</header>
<subsection display-inline="no-display-inline" id="H328783A2FDA345599306BF3D1E7790F6"><enum>(a)</enum><header>Investment tax
credit for extraction and processing of oil shale using in-situ conversion
technology</header>
<paragraph id="HBACC0DB2AB65433785ED438760A7D3F9"><enum>(1)</enum><header>In
general</header><text>Subpart E of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986, as amended by this Act, is amended by inserting
after section 48C the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H7FF8C02851B34D5C9C86918838A36FF3" style="OLC">
<section id="HB80555BA75B340F98668A7F3BD6CE270"><enum>48D.</enum><header>Oil shale
extraction and processing facility</header>
<subsection id="H6B3353D3643B439B993FB51016C5EE30"><enum>(a)</enum><header>General
rule</header><text display-inline="yes-display-inline">For purposes of section
46, the oil shale extraction and processing credit for any taxable year is 30
percent of the cost of any qualified oil shale extraction and processing
property.</text>
</subsection><subsection id="H0D3544F623DC43CDA7CBF4C73146D069"><enum>(b)</enum><header>Qualified oil
shale extraction and processing property</header><text display-inline="yes-display-inline">The term <term>qualified oil shale
extraction and processing property</term> means property of a character subject
to the allowance for depreciation—</text>
<paragraph id="H2F85340FAD17461F8F381C1D92CEDD54"><enum>(1)</enum><text display-inline="yes-display-inline">which is used in the United States solely
to extract and process oil shale using in-situ conversion technology,</text>
</paragraph><paragraph id="HDEB7169A2D7D409FB416E943150BE17"><enum>(2)</enum><text>the original use of
which commences with the taxpayer after the date of the enactment of this
section,</text>
</paragraph><paragraph id="H285724D4D98B483385FEA546FB00D098"><enum>(3)</enum><text>which is acquired
by the taxpayer by purchase (as defined in section 179(d)) after the date of
the enactment of this subsection, but only if no written binding contract for
the acquisition was in effect on or before the date of the enactment of this
subsection, and</text>
</paragraph><paragraph id="HDA5874C1C64045BCACB34099133F72F9"><enum>(4)</enum><text>which is placed in
service by the taxpayer before January 1, 2019.</text>
</paragraph></subsection><subsection id="HE570162AA75C4120883CAFE8927348E4"><enum>(c)</enum><header>Special rule for
certain subsidized property</header><text>For purposes of this section, rules
similar to the rules of section 48(a)(4) shall apply.</text>
</subsection><subsection id="HE15E93CF1CCE426F8589CE4DBBC71200"><enum>(d)</enum><header>Denial of double
benefit</header><text>A deduction or credit shall not be allowed under any
other provision of this chapter for the cost taken into account under
subsection
(a).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H16F0D0AE69FB44A3BD6D06C9A72C888F"><enum>(2)</enum><header>Credit treated
as part of investment credit</header><text display-inline="yes-display-inline">Section 46, as amended by this Act, is
amended by striking <quote>and</quote> at the end of paragraph (5), by striking
the period at the end of paragraph (6) and inserting <quote>, and</quote>, and
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC646B3A5CAA4474A98567B92AC3C4035" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H0280DD227234478496329DFE6662A8AD"><enum>(7)</enum><text display-inline="yes-display-inline">the oil shale extraction and processing
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H38E5FFDB4005446697EC02F43685A28E"><enum>(3)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H28226B5D27AE435AB3DE22E4A878D6E2"><enum>(A)</enum><text display-inline="yes-display-inline">Section 49(a)(1)(C), as amended by this
Act, is amended by striking <quote>and</quote> at the end of clause (v), by
striking the period at the end of clause (vi) and inserting <quote>,
and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HBE9967F48EF94AC3ACCFB141CBE1598F" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H7809B75E892F4B499700655C60CE1C06"><enum>(vii)</enum><text display-inline="yes-display-inline">the basis of any qualified oil shale
extraction and processing
property.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC5BDFCACB6FF4AA1B2384B1DA51F217B"><enum>(B)</enum><text display-inline="yes-display-inline">The table of sections for subpart E of part
IV of subchapter A of chapter 1, as amended by this Act, is amended by
inserting after the item relating to section 48C the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H51F85923A6FA42CCB836150057864D97" style="OLC">
<toc container-level="quoted-block-container" idref="H7FF8C02851B34D5C9C86918838A36FF3" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HB80555BA75B340F98668A7F3BD6CE270" level="section">Sec. 48D. Oil shale extraction and processing
facility.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="HCC03C81C41504F96B680521419B06D9C"><enum>(b)</enum><header>Expensing oil
shale extraction and processing property</header><text>Part VI of subchapter B
of chapter 1 of such Code is amended by inserting after section 179F the
following new section:</text>
<quoted-block id="HBDBC6DEF3B634BE6905F63F3BBB0884D">
<section id="HF1A2724C7F92479F9353F27995AF74C2"><enum>179G.</enum><header>Election to
expense certain oil shale extraction and processing property</header>
<subsection id="H7E87C0D77FC346348F50C870EA8521BA"><enum>(a)</enum><header>Treatment as
expenses</header><text display-inline="yes-display-inline">A taxpayer may elect
to treat the cost of any qualified oil shale extraction and processing property
as an expense which is not chargeable to capital account. Any cost so treated
shall be allowed as a deduction for the taxable year in which the expense is
incurred.</text>
</subsection><subsection id="H8E95BD7A5EFB4EC58FB4004B1587CFE"><enum>(b)</enum><header>Election</header>
<paragraph id="H6C452EE82AB94BF7935B9C8C997EFCE1"><enum>(1)</enum><header>In
general</header><text>An election under this section for any taxable year shall
be made on the taxpayer’s return of the tax imposed by this chapter for the
taxable year. Such election shall be made in such manner as the Secretary may
by regulations prescribe.</text>
</paragraph><paragraph id="H9B8106703C154D0D8FECF265AFC474A1"><enum>(2)</enum><header>Election
irrevocable</header><text>Any election made under this section may not be
revoked except with the consent of the Secretary.</text>
</paragraph></subsection><subsection id="HB8DA46558FF544D0AE19E515C5794841"><enum>(c)</enum><header>Qualified oil
shale extraction and processing property</header><text>For purposes of this
section—</text>
<paragraph id="H114482AC5E714D89A9AC5E40CCD1273F"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>qualified oil shale
extraction and processing property</term> means any property located in the
United States—</text>
<subparagraph id="H5C988B19ECE542FA9393CE71CE7513A2"><enum>(A)</enum><text>the original use
of which commences with the taxpayer and which original use is solely to
extract or process oil shale, and</text>
</subparagraph><subparagraph id="H82B284F3C3A24E6EAFFF00945E35FD1F"><enum>(B)</enum><text>which is placed in
service by the taxpayer after the date of the enactment of this section and
before January 1, 2019.</text>
</subparagraph></paragraph></subsection><subsection id="H17EDE01295324F5A8FB4ED13D9371BDB"><enum>(d)</enum><header>Election To
allocate deduction to cooperative owner</header><text>If—</text>
<paragraph id="HD19C17206885482DA9E031A9D5104DAD"><enum>(1)</enum><text>a taxpayer to
which subsection (a) applies is an organization to which part I of subchapter T
applies, and</text>
</paragraph><paragraph id="H0390136A7FC84C5884C692B8C4DEF400"><enum>(2)</enum><text>one or more
persons directly holding an ownership interest in the taxpayer are
organizations to which part I of subchapter T apply,</text>
</paragraph><continuation-text continuation-text-level="subsection">the
taxpayer may elect to allocate all or a portion of the deduction allowable
under subsection (a) to such persons. Such allocation shall be equal to the
person’s ratable share of the total amount allocated, determined on the basis
of the person’s ownership interest in the taxpayer. The taxable income of the
taxpayer shall not be reduced under section 1382 by reason of any amount to
which the preceding sentence applies.</continuation-text></subsection><subsection id="H828B8ECB149C44FF91797C9DDB6EE7B"><enum>(e)</enum><header>Basis
reduction</header>
<paragraph id="H63EB301DE3704274A39442007BD6006C"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of this
title, if a deduction is allowed under this section with respect to any
qualified oil shale extraction and processing property, the basis of such
property shall be reduced by the amount of the deduction so allowed.</text>
</paragraph><paragraph id="H5080FF97B5A44976B47CE27607F674A0"><enum>(2)</enum><header>Ordinary income
recapture</header><text>For purposes of section 1245, the amount of the
deduction allowable under subsection (a) with respect to any property which is
of a character subject to the allowance for depreciation shall be treated as a
deduction allowed for depreciation under section 167.</text>
</paragraph></subsection><subsection id="H730A09FE7F1047009D1E5C31E32D5EAA"><enum>(f)</enum><header>Application with
other deductions and credits</header>
<paragraph id="H8CB2A25BA1C74FD785D2F7A5FC72C345"><enum>(1)</enum><header>Other
deductions</header><text>No deduction shall be allowed under any other
provision of this chapter with respect to any expenditure with respect to which
a deduction is allowed under subsection (a) to the taxpayer.</text>
</paragraph><paragraph id="H539975C99B274212AB5EE5526301EDD4"><enum>(2)</enum><header>Credits</header><text>No
credit shall be allowed under section 38 with respect to any amount for which a
deduction is allowed under subsection (a).</text>
</paragraph></subsection><subsection id="H49D607B5BA124CA8979BF29F7395BBD"><enum>(g)</enum><header>Reporting</header><text>No
deduction shall be allowed under subsection (a) to any taxpayer for any taxable
year unless such taxpayer files with the Secretary a report containing such
information with respect to the operation of the property of the taxpayer as
the Secretary shall
require.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H635CCE80B7974475BDA4F5288BADB64"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="HA519275741FA4AC4867D97313943523F"><enum>(1)</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 display-inline="no-display-inline" id="HC9E22871371F4D58B1FAB041F48FBDC" style="OLC">
<paragraph id="H2F3B992471CB4264872894B0355CD532"><enum>(39)</enum><text>to the extent
provided in section
179G(e)(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HDF75A2EC75884BF195AF063DDA3DCDE8"><enum>(2)</enum><text>Section 1245(a) of
such Code is amended by inserting <quote>179G,</quote> after
<quote>179F,</quote> both places it appears in paragraphs (2)(C) and
(3)(C).</text>
</paragraph><paragraph id="HC8851ADD6B6B4206B1F85127B99200D1"><enum>(3)</enum><text>Section 263(a)(1)
of such Code is amended by striking <quote>or</quote> at the end of
subparagraph (L), by striking the period at the end of subparagraph (M) and
inserting <quote>, or</quote>, and by inserting after subparagraph (M) the
following new subparagraph:</text>
<quoted-block id="H63D8D2EA0D734C0AA7B1006544B000BE">
<subparagraph id="H2215BB159E37423CB77696C9643708B4"><enum>(N)</enum><text>expenditures for
which a deduction is allowed under section
179G.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9E80C6C4E0084C73B9DF6952BCEB7F2"><enum>(4)</enum><text>Section
312(k)(3)(B) of such Code is amended by striking <quote>or 179F</quote> each
place it appears in the heading and text and inserting <quote>179F, or
179G</quote>.</text>
</paragraph><paragraph id="H73580FDD669546F496A00636005C8BAA"><enum>(5)</enum><text>The table of
sections for part VI of subchapter B of chapter 1 of such Code is amended by
inserting after the item relating to section 179F the following new
item:</text>
<quoted-block id="H9F38F882DEB04A16B2EA3783673D761" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 179G. Election to expense certain oil
shale extraction and processing
property.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF52D415DF9714C819D8621DC56060068"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
properties placed in service after the date of the enactment of this
Act.</text>
</subsection></section><enum>IX</enum><header>Land
for Biofuel Production</header>
<section id="H753AD75392D44401AF7EDE7EC5BC9DCB" section-type="subsequent-section"><enum>901.</enum><header>Lease of public
lands for production of renewable biomass for biofuels</header><text display-inline="no-display-inline">Title II of the Federal Land Policy and
Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1711">43 U.S.C. 1711 et seq.</external-xref>) is amended by adding at the end
the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HA8227948C79C459DABAA0001EE5E0000" style="OLC">
<section id="H9BEB75D798C74D8E8600D16572599765"><enum>215.</enum><header>Lease of public
lands for production of renewable biomass for biofuels</header>
<subsection id="HDE8F8A69382C4A878E109700D0007135"><enum>(a)</enum><header>Authority To
lease lands</header><text display-inline="yes-display-inline">The Secretary may
lease a tract of the public lands under this Act where, as a result of land use
planning required under section 202 of this Act, the Secretary determines
that—</text>
<paragraph id="HD9F34A23D8574473853FB9435D723081"><enum>(1)</enum><text>the tract is
suitable for agricultural production; and</text>
</paragraph><paragraph id="HC686CCA5FD454C07A89DDE9E405C731F"><enum>(2)</enum><text display-inline="yes-display-inline">the lessee of the tract will use the tract
for the production of renewable biomass to be used in the production of
biofuels.</text>
</paragraph></subsection><subsection id="HE881BC01978D4EAE95D8F3F411043EEE"><enum>(b)</enum><header>Exclusion of
certain public lands</header><text>This section does not apply with respect to
the following land:</text>
<paragraph id="H348BF4C1A2334FD19F1D8B9C457DA8F0"><enum>(1)</enum><text display-inline="yes-display-inline">Land in a unit of the National Wilderness
Preservation System.</text>
</paragraph><paragraph id="H98D3295DB33943C39B04CC913FE99482"><enum>(2)</enum><text>Land included in
the National Wild and Scenic Rivers Systems.</text>
</paragraph><paragraph id="HFFE4E2378D8B4A3A85B713C1B7E7DAE6"><enum>(3)</enum><text>Land included in
the National System of Trails.</text>
</paragraph><paragraph id="H10EBD370F0A04D3E8199ADC9D361298F"><enum>(4)</enum><text>Land designated as
a National Monument.</text>
</paragraph><paragraph id="H0DC32EE31852498C849D99DFC4277771"><enum>(5)</enum><text display-inline="yes-display-inline">Land regarding which other public
objectives and values, including recreation and scenic values, outweigh the
benefit of using the land for the production of renewable biomass for biofuels,
as determined by the Secretary.</text>
</paragraph></subsection><subsection id="HED0F64A78DBC4BA5A83069CD9CC6DFCF"><enum>(c)</enum><header>Consideration</header><text display-inline="yes-display-inline">The lease of public lands under this
section shall be made at a rental rate determined by the Secretary to be
appropriate to promote the production of renewable biomass for biofuels.</text>
</subsection><subsection id="H49605BCDF36747BDAF722549B8C249F4"><enum>(d)</enum><header>Competitive
bidding</header>
<paragraph id="H2819496E24DC4A79008D34FB128FDCBE"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The lease of public
lands under this section shall be conducted under competitive bidding
procedures to be established by the Secretary.</text>
</paragraph><paragraph id="HA9CBE2CB3D5A438CB03300EE9ECB3079"><enum>(2)</enum><header>Modification</header><text display-inline="yes-display-inline">The Secretary may lease public lands under
this section with modified competitive bidding or without competitive
bidding—</text>
<subparagraph id="H287C9163D55B4BC595D237D8DA426F2F"><enum>(A)</enum><text>to assure an
equitable distribution of land among potential renters; or</text>
</subparagraph><subparagraph id="H572ED7D455D64C638977582EFE8DC066"><enum>(B)</enum><text>to encourage
farmers who are using other lands to produce feed grains for biofuels
production to return the other lands to crop production for food or feed
use.</text>
</subparagraph></paragraph></subsection><subsection id="H2CD1D46CB70949AEB757F356709F161F"><enum>(e)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="HFC704166E01848E3945FC440651F5624"><enum>(1)</enum><header>Biofuel</header><text display-inline="yes-display-inline">The term <quote>biofuel</quote> means a
fuel derived from renewable biomass.</text>
</paragraph><paragraph id="H4D0C8E72E07D4DC300600751CA43451"><enum>(2)</enum><header>Renewable
biomass</header><text display-inline="yes-display-inline">The term
<quote>renewable biomass</quote> means—</text>
<subparagraph id="H53FF2B4F9AC841CF91FCAC64C9A8E54E"><enum>(A)</enum><text>renewable plant
material, including feed grains and other agricultural commodities (other than
trees); and</text>
</subparagraph><subparagraph id="HBBF04A7F51BF4DF6B17C595809172B76"><enum>(B)</enum><text>crop residue and
other vegetative waste material (other than wood waste and wood
residues).</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section>