[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6817 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6817

 To increase domestic energy production and diversify America's energy 
                               portfolio.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 1, 2008

 Mr. Matheson (for himself, Mr. Doyle, Mr. Altmire, Mr. Melancon, Mr. 
  Donnelly, and Mr. Tanner) introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
   Committees on Natural Resources, Energy and Commerce, Science and 
Technology, and Agriculture, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To increase domestic energy production and diversify America's energy 
                               portfolio.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fulfilling U.S. Energy Leadership 
Act of 2008''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                        TITLE I--PRODUCTION: OCS

Sec. 101. Inventory and leasing of Outer Continental Shelf oil and 
                            natural gas resources.
Sec. 102. Conforming amendments to moratoria on use of appropriations.
Sec. 103. Disposition of royalties.
Sec. 104. Reports on due diligence in development of leases.
Sec. 105. Limitations.
                     TITLE II--UNCONVENTIONAL FUELS

Sec. 201. Standby loans for qualifying coal-to-liquids projects.
Sec. 202. Oil shale leasing.
   TITLE III--STUDY OF ENERGY TRANSMISSION BARRIERS AND OPPORTUNITIES

Sec. 301. Study required.
          TITLE IV--NEXT GENERATION ENERGY AND EFFICIENCY FUND

Sec. 401. Next Generation Energy and Efficiency Fund.
    TITLE V--ADDRESSING TRANSPARENCY AND DATA SHARING IN SPECULATION

Sec. 501. Commission authority over traders.
Sec. 502. Speculative limits and transparency for off-shore oil 
                            trading.
Sec. 503. Additional commission employees for improved enforcement.
Sec. 504. Study of international regulation of energy commodity 
                            markets.
Sec. 505. Index traders and swap dealers.
Sec. 506. Disaggregation of index funds and other data in energy 
                            markets.
                        TITLE VI--NUCLEAR ENERGY

Sec. 601. Study of impact on greenhouse gas reductions.
Sec. 602. Study of possible cost reductions.
Sec. 603. Authorization for Nuclear Power 2010 Program.
Sec. 604. Establishment of Interagency Working Group.
Sec. 605. Nuclear energy workforce.
                    TITLE VII--ENERGY TAX INCENTIVES

Sec. 700. Reference.
                Subtitle A--Energy Production Incentives

                  Part 1--Renewable Energy Incentives

Sec. 701. Renewable energy credit.
Sec. 702. Production credit for electricity produced from marine 
                            renewables.
Sec. 703. Energy credit.
Sec. 704. Credit for residential energy efficient property.
Sec. 705. Special rule to implement FERC and State electric 
                            restructuring policy.
Sec. 706. New clean renewable energy bonds.
                  Part 2--Carbon Mitigation Provisions

Sec. 711. Expansion and modification of advanced coal project 
                            investment credit.
Sec. 712. Expansion and modification of coal gasification investment 
                            credit.
Sec. 713. Temporary increase in coal excise tax.
Sec. 714. Special rules for refund of the coal excise tax to certain 
                            coal producers and exporters.
Sec. 715. Carbon audit of the tax code.
    Subtitle B--Transportation and Domestic Fuel Security Provisions

Sec. 721. Inclusion of cellulosic biofuel in bonus depreciation for 
                            biomass ethanol plant property.
Sec. 722. Credits for biodiesel and renewable diesel.
Sec. 723. Clarification that credits for fuel are designed to provide 
                            an incentive for United States production.
Sec. 724. Credit for new qualified plug-in electric drive motor 
                            vehicles.
Sec. 725. Exclusion from heavy truck tax for idling reduction units and 
                            advanced insulation.
Sec. 726. Restructuring of New York Liberty Zone tax credits.
Sec. 727. Transportation fringe benefit to bicycle commuters.
Sec. 728. Alternative fuel vehicle refueling property credit.
       Subtitle C--Energy Conservation and Efficiency Provisions

Sec. 731. Qualified energy conservation bonds.
Sec. 732. Credit for nonbusiness energy property.
Sec. 733. Energy efficient commercial buildings deduction.
Sec. 734. Modifications of energy efficient appliance credit for 
                            appliances produced after 2007.
Sec. 735. Accelerated recovery period for depreciation of smart meters 
                            and smart grid systems.
Sec. 736. Qualified green building and sustainable design projects.
                     Subtitle D--Revenue Provision

Sec. 741. Delay in application of worldwide allocation of interest.

                        TITLE I--PRODUCTION: OCS

SEC. 101. INVENTORY AND LEASING OF OUTER CONTINENTAL SHELF OIL AND 
              NATURAL GAS RESOURCES.

    (a) Inventory.--
            (1) In general.--Except as otherwise provided in subsection 
        (c), the Secretary of the Interior (in this section referred to 
        as the ``Secretary'') may conduct an inventory in accordance 
        with this subsection of oil and natural gas resources beneath 
        the waters of the Outer Continental Shelf (as defined in 
        section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1331)), other than beneath such waters located in the Gulf of 
        Mexico.
            (2) Best technology available.--In conducting the 
        inventory, the Secretary shall use the best technology 
        available to obtain accurate resource estimates.
            (3) Reports.--The Secretary shall submit to Congress and 
        the requesting Governor a report on any inventory conducted 
        under this section.
    (b) Leasing.--Except as otherwise provided in subsection (c), the 
Secretary shall offer for oil and natural gas leasing pursuant to the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) by as soon 
as practicable after the date of enactment of this Act all areas for 
which an inventory has been conducted under subsection (a).
    (c) Limitations.--The Secretary may not under this section--
            (1) conduct an inventory under this section or any offshore 
        oil and natural gas preleasing, leasing, or related activities 
        for any area of the Outer Continental Shelf located within 50 
        miles of the coastline;
            (2) conduct an inventory under this section or any offshore 
        oil and natural gas preleasing, leasing, or related activities 
        for any area of the Outer Continental Shelf located more than 
        50 miles and less than 100 miles from the coastline of a State, 
        if the State has enacted a statute that objects to conduct of 
        the inventory in that area.

SEC. 102. CONFORMING AMENDMENTS TO MORATORIA ON USE OF APPROPRIATIONS.

    The Department of the Interior, Environment, and Related Agencies 
Appropriations Act, 2008 (division F of Public Law 110-161) is 
amended--
            (1) in section 104 (121 Stat. 2118) by striking ``the areas 
        of northern, central, and southern California; the North 
        Atlantic; Washington and Oregon; and''; and
            (2) by striking 105 (121 Stat. 2118).

SEC. 103. DISPOSITION OF ROYALTIES.

    Notwithstanding any other provision of law, of amounts received by 
the United States as royalties under any oil and gas lease of an area 
of the Outer Continental Shelf issued after the date of the enactment 
of this Act under this title--
            (1) 50 percent shall be deposited--
                    (A) during the 10-year period beginning on the 
                first date amounts are received by the United States as 
                royalties under a lease issued under this title, into 
                the Next Generation Energy and Efficiency Fund 
                established by title IV; and
                    (B) after such period, into the general fund of the 
                Treasury;
            (2) 37.5 percent shall be paid, in equal amounts, to the 
        States that are affected States (as that term is defined in 
        section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1331) with respect to the lease tract; and
            (3) 12.5 percent shall be available to provide financial 
        assistance to States in accordance with section 6 of the Land 
        and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8), 
        which shall be considered income to the Land and Water 
        Conservation Fund for purposes of section 2 of that Act (16 
        U.S.C. 460l-5).

SEC. 104. REPORTS ON DUE DILIGENCE IN DEVELOPMENT OF LEASES.

    The Secretary of the Interior shall issue regulations that require 
that the holder of a Federal oil and gas lease for the Outer 
Continental Shelf shall periodically submit a report to the Secretary 
describing the actions that have been taken under the lease that 
demonstrate due diligence in the development of oil and gas resources 
under the lease.

SEC. 105. LIMITATIONS.

    Noting in this Act shall be considered to affect--
            (1) any restriction on drilling for natural gas or oil, or 
        on the expenditure of funds for leasing Federal lands for such 
        drilling, in any of the Great Lakes; or
            (2) any regulations governing drilling for natural gas or 
        oil on the Outer Continental Shelf.

                     TITLE II--UNCONVENTIONAL FUELS

SEC. 201. STANDBY LOANS FOR QUALIFYING COAL-TO-LIQUIDS PROJECTS.

    Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is 
amended by adding at the end the following new subsection:
    ``(k) Standby Loans for Qualifying CTL Projects.--
            ``(1) Definitions.--For purposes of this subsection:
                    ``(A) Cap price.--The term `cap price' means a 
                market price specified in the standby loan agreement 
                above which the project is required to make payments to 
                the United States.
                    ``(B) Full term.--The term `full term' means the 
                full term of a standby loan agreement, as specified in 
                the agreement, which shall not exceed the lesser of 30 
                years or 90 percent of the projected useful life of the 
                project (as determined by the Secretary).
                    ``(C) Market price.--The term `market price' means 
                the average quarterly price of a petroleum price index 
                specified in the standby loan agreement.
                    ``(D) Minimum price.--The term `minimum price' 
                means a market price specified in the standby loan 
                agreement below which the United States is obligated to 
                make disbursements to the project.
                    ``(E) Output.--The term `output' means some or all 
                of the liquid or gaseous transportation fuels produced 
                from the project, as specified in the loan agreement.
                    ``(F) Primary term.--The term `primary term' means 
                the initial term of a standby loan agreement, as 
                specified in the agreement, which shall not exceed the 
                lesser of 20 years or 75 percent of the projected 
                useful life of the project (as determined by the 
                Secretary).
                    ``(G) Qualifying ctl project.--The term `qualifying 
                CTL project' means--
                            ``(i) a commercial-scale project that 
                        converts coal to one or more liquid or gaseous 
                        transportation fuels; or
                            ``(ii) not more than one project at a 
                        facility that converts petroleum refinery waste 
                        products, including petroleum coke, into one or 
                        more liquids or gaseous transportation fuels,
                that demonstrates the capture, and sequestration or 
                disposal or use of, the carbon dioxide produced in the 
                conversion process, and that, on the basis of a carbon 
                dioxide sequestration plan prepared by the applicant, 
                is certified by the Administrator of the Environmental 
                Protection Agency, in consultation with the Secretary, 
                as producing fuel with life cycle carbon dioxide 
                emissions at or below the average life cycle carbon 
                dioxide emissions for the same type of fuel produced at 
                traditional petroleum based facilities with similar 
                annual capacities.
                    ``(H) Standby loan agreement.--The term `standby 
                loan agreement' means a loan agreement entered into 
                under paragraph (2).
            ``(2) Standby loans.--
                    ``(A) Loan authority.--The Secretary may enter into 
                standby loan agreements with not more than six 
                qualifying CTL projects, at least one of which shall be 
                a project jointly or in part owned by two or more small 
                coal producers. Such an agreement--
                            ``(i) shall provide that the Secretary will 
                        make a direct loan (within the meaning of 
                        section 502(1) of the Federal Credit Reform Act 
                        of 1990) to the qualifying CTL project; and
                            ``(ii) shall set a cap price and a minimum 
                        price for the primary term of the agreement.
                    ``(B) Loan disbursements.--Such a loan shall be 
                disbursed during the primary term of such agreement 
                whenever the market price falls below the minimum 
                price. The amount of such disbursements in any calendar 
                quarter shall be equal to the excess of the minimum 
                price over the market price, times the output of the 
                project (but not more than a total level of 
                disbursements specified in the agreement).
                    ``(C) Loan repayments.--The Secretary shall 
                establish terms and conditions, including interest 
                rates and amortization schedules, for the repayment of 
                such loan within the full term of the agreement, 
                subject to the following limitations:
                            ``(i) If in any calendar quarter during the 
                        primary term of the agreement the market price 
                        is less than the cap price, the project may 
                        elect to defer some or all of its repayment 
                        obligations due in that quarter. Any unpaid 
                        obligations will continue to accrue interest.
                            ``(ii) If in any calendar quarter during 
                        the primary term of the agreement the market 
                        price is greater than the cap price, the 
                        project shall meet its scheduled repayment 
                        obligation plus deferred repayment obligations, 
                        but shall not be required to pay in that 
                        quarter an amount that is more than the excess 
                        of the market price over the cap price, times 
                        the output of the project.
                            ``(iii) At the end of the primary term of 
                        the agreement, the cumulative amount of any 
                        deferred repayment obligations, together with 
                        accrued interest, shall be amortized (with 
                        interest) over the remainder of the full term 
                        of the agreement.
            ``(3) Profit-sharing.--The Secretary is authorized to enter 
        into a profit-sharing agreement with the project at the time 
        the standby loan agreement is executed. Under such an 
        agreement, if the market price exceeds the cap price in a 
        calendar quarter, a profit-sharing payment shall be made for 
        that quarter, in an amount equal to--
                    ``(A) the excess of the market price over the cap 
                price, times the output of the project; less
                    ``(B) any loan repayments made for the calendar 
                quarter.
            ``(4) Compliance with federal credit reform act.--
                    ``(A) Upfront payment of cost of loan.--No standby 
                loan agreement may be entered into under this 
                subsection unless the project makes a payment to the 
                United States that the Office of Management and Budget 
                determines is equal to the cost of such loan 
                (determined under 502(5)(B) of the Federal Credit 
                Reform Act of 1990). Such payment shall be made at the 
                time the standby loan agreement is executed.
                    ``(B) Minimization of risk to the government.--In 
                making the determination of the cost of the loan for 
                purposes of setting the payment for a standby loan 
                under subparagraph (A), the Secretary and the Office of 
                Management and Budget shall take into consideration the 
                extent to which the minimum price and the cap price 
                reflect historical patterns of volatility in actual oil 
                prices relative to projections of future oil prices, 
                based upon publicly available data from the Energy 
                Information Administration, and employing statistical 
                methods and analyses that are appropriate for the 
                analysis of volatility in energy prices.
                    ``(C) Treatment of payments.--The value to the 
                United States of a payment under subparagraph (A) and 
                any profit-sharing payments under paragraph (3) shall 
                be taken into account for purposes of section 
                502(5)(B)(iii) of the Federal Credit Reform Act of 1990 
                in determining the cost to the Federal Government of a 
                standby loan made under this subsection. If a standby 
                loan has no cost to the Federal Government, the 
                requirements of section 504(b) of such Act shall be 
                deemed to be satisfied.
            ``(5) Other provisions.--
                    ``(A) No double benefit.--A project receiving a 
                loan under this subsection may not, during the primary 
                term of the loan agreement, receive a Federal loan 
                guarantee under subsection (a) of this section, or 
                under other laws.
                    ``(B) Subrogation, etc.--Subsections (g)(2) 
                (relating to subrogation), (h) (relating to fees), and 
                (j) (relating to full faith and credit) shall apply to 
                standby loans under this subsection to the same extent 
                they apply to loan guarantees.''.

SEC. 202. OIL SHALE LEASING.

    (a) Repeal of Restriction.--Section 433 of the Department of the 
Interior, Environment, and Related Agencies Appropriations Act, 2008 
(division F of Public Law 110-161; 121 Stat. 2152) is repealed.
    (b) State Authority To Prohibit Oil Shale Leasing.--Section 369 of 
the Energy Policy Act of 2005 (42 U.S.C. 15927) is amended by adding at 
the end the following:
    ``(t) State Authority To Prohibit Oil Shale Leasing.--No lease may 
be issued under this section, section 21 of the Mineral Leasing Act (30 
U.S.C. 241), or any other law, for exploration, research, development, 
or production of oil shale on lands located in a State, if the State 
has enacted a law prohibiting Federal oil shale leasing in the 
State.''.

   TITLE III--STUDY OF ENERGY TRANSMISSION BARRIERS AND OPPORTUNITIES

SEC. 301. STUDY REQUIRED.

    Not later than 2 years after the date of enactment of this Act, the 
Secretary of the Interior shall complete a study of--
            (1) barriers to additional access to Federal lands for 
        transmission of energy;
            (2) the need for energy transmission corridors on public 
        lands to address identified congestion or constraints; and
            (3) efficiencies and improvements that may be made to 
        existing infrastructure for transmission of energy on Federal 
        lands, in lieu of construction of new infrastructure.

          TITLE IV--NEXT GENERATION ENERGY AND EFFICIENCY FUND

SEC. 401. NEXT GENERATION ENERGY AND EFFICIENCY FUND.

    (a) Establishment.--There is hereby established in the Treasury of 
the United States the ``Next Generation Energy and Efficiency Fund'' 
(in this section referred to as ``the Fund'').
    (b) Administration.--The Secretary of Energy shall be responsible 
for administering the Fund for the purpose of carrying out this 
section.
    (c) Contents.--The Fund shall consist of amounts deposited into the 
Fund under section 103(1)(A). Such deposits shall cease after 
$40,000,000,000 has been deposited, or 10 years of deposits have been 
made, whichever occurs first.
    (d) Purpose.--The Fund shall be used for the purpose of research 
and development of technologies that will significantly decrease 
America's reliance on traditional fossil fuels and increase energy 
efficiencies, including wind energy, solar energy, marine and 
hydrokinetic energy, geothermal energy, hydrogen energy, vehicle energy 
efficiency and environmental performance, industrial processes energy 
efficiencies, building and lighting energy efficiencies, smart grid 
technology, and energy storage systems to support electric drive 
vehicles.
    (e) Identification of Programs.--Not later than 18 months after the 
date of enactment of this Act, the Secretary of Energy shall identify 
programs of the Department of Energy described in subsection (d) for 
funding from the Fund, including the Advanced Research Projects Agency-
Energy.
    (f) Availability of Fund.--After the Secretary of Energy has 
completed the identification of programs under subsection (e), amounts 
in the Fund shall be available, without further appropriation, for 
carrying out such programs.

    TITLE V--ADDRESSING TRANSPARENCY AND DATA SHARING IN SPECULATION

SEC. 501. COMMISSION AUTHORITY OVER TRADERS.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is amended by 
adding at the end the following:
    ``(e) Commission Authority Over Traders.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section or any determination made by the Commission to 
        grant relief from the requirements of subsection (a) to become 
        a designated contract market, derivatives transaction execution 
        facility, or other registered entity, in the case of a person 
        located within the United States, or otherwise subject to the 
        jurisdiction of the Commission, trading on a foreign board of 
        trade, exchange, or market located outside the United States 
        (including the territories and/or possessions of the United 
        States), the Commission shall have authority under this Act--
                    ``(A) to apply and enforce section 9, including 
                provisions relating to manipulation or attempted 
                manipulation, the making of false statements, and 
                willful violations of this Act;
                    ``(B) to require or direct the person to limit, 
                reduce, or liquidate any position to prevent or reduce 
                the threat of price manipulation, excessive 
                speculation, price distortion, or disruption of 
                delivery or the cash settlement process; and
                    ``(C) to apply such recordkeeping requirements as 
                the Commission determines are necessary.
            ``(2) Consultation.--Prior to the issuance of any order 
        under paragraph (1) to reduce a position on a foreign board of 
        trade, exchange, or market located outside the United States 
        (including the territories and possessions of the United 
        States), the Commission shall consult with the foreign board of 
        trade, exchange, or market and the appropriate regulatory 
        authority.
            ``(3) Administration.--Nothing in this subsection limits 
        any of the otherwise applicable authorities of the 
        Commission.''.

SEC. 502. SPECULATIVE LIMITS AND TRANSPARENCY FOR OFF-SHORE OIL 
              TRADING.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by 
section 501 of this Act, is amended by adding at the end the following:
    ``(f) Foreign Boards of Trade.--
            ``(1) In general.--In the case of any foreign board of 
        trade for which the Commission has granted or is considering an 
        application to grant a board of trade located outside of the 
        United States relief from the requirement of subsection (a) to 
        become a designated contract market, derivatives transaction 
        execution facility, or other registered entity, with respect to 
        an energy commodity that is physically delivered in the United 
        States, prior to continuing to or initially granting the 
        relief, the Commission shall determine that the foreign board 
        of trade--
                    ``(A) applies comparable principles or requirements 
                regarding the daily publication of trading information 
                and position limits or accountability levels for 
                speculators as apply to a designated contract market, 
                derivatives transaction execution facility, or other 
                registered entity trading energy commodities physically 
                delivered in the United States; and
                    ``(B) provides such information to the Commission 
                regarding the extent of speculative and nonspeculative 
                trading in the energy commodity that is comparable to 
                the information the Commission determines necessary to 
                publish a Commitment of Traders report for a designated 
                contract market, derivatives transaction execution 
                facility, or other registered entity trading energy 
                commodities physically delivered in the United States.
            ``(2) Existing foreign boards of trade.--During the period 
        beginning 1 year after the date of enactment of this subsection 
        and ending 18 months after the date of enactment of this 
        subsection, the Commission shall determine whether to continue 
        to grant relief in accordance with paragraph (1) to any foreign 
        board of trade for which the Commission granted relief prior to 
        the date of enactment of this subsection.''.

SEC. 503. ADDITIONAL COMMISSION EMPLOYEES FOR IMPROVED ENFORCEMENT.

    Section 2(a)(7) of the Commodity Exchange Act (7 U.S.C. 2(a)(7)) is 
amended by adding at the end the following:
                    ``(D) Additional employees.--As soon as practicable 
                after the date of enactment of this subparagraph, the 
                Commission shall appoint at least 100 full-time 
                employees (in addition to the employees employed by the 
                Commission as of the date of the enactment of this 
                subparagraph)--
                            ``(i) to increase the public transparency 
                        of operations in energy futures markets;
                            ``(ii) to improve the enforcement of this 
                        Act in those markets; and
                            ``(iii) to carry out such other duties as 
                        are prescribed by the Commission.''.

SEC. 504. STUDY OF INTERNATIONAL REGULATION OF ENERGY COMMODITY 
              MARKETS.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the international regime for regulating the trading 
of energy commodity futures and derivatives.
    (b) Analysis.--The study shall include an analysis of, at a 
minimum--
            (1) key common features and differences among countries in 
        the regulation of energy commodity trading, including with 
        respect to market oversight and enforcement;
            (2) agreements and practices for sharing market and trading 
        data;
            (3) the use of position limits or thresholds to detect and 
        prevent price manipulation, excessive speculation, or other 
        unfair trading practices;
            (4) practices regarding the identification of commercial 
        and noncommercial trading and the extent of market speculation; 
        and
            (5) agreements and practices for facilitating international 
        cooperation on market oversight, compliance, and enforcement.
    (c) Report.--Not later than 120 days after the date of enactment of 
this Act, the Comptroller General shall submit to the appropriate 
committees of Congress a report that--
            (1) describes the results of the study; and
            (2) provides recommendations to improve openness, 
        transparency, and other necessary elements of a properly 
        functioning market in a manner that protects consumers in the 
        United States from the effects of excessive speculation and 
        energy price volatility.

SEC. 505. INDEX TRADERS AND SWAP DEALERS.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by 
sections 501 and 502 of this Act, is amended by adding at the end the 
following:
    ``(g) Index Traders and Swap Dealers.--Not later than 60 days after 
the date of the enactment of this subsection, the Commission shall--
            ``(1) routinely require detailed reporting from index 
        traders and swap dealers in markets under the jurisdiction of 
        the Commission;
            ``(2) reclassify the types of traders for regulatory and 
        reporting purposes to distinguish between index traders and 
        swaps dealers; and
            ``(3) review the trading practices for index traders in 
        markets under the jurisdiction of the Commission--
                    ``(A) to ensure that index trading is not adversely 
                impacting the price discovery process; and
                    ``(B) to determine whether different practices or 
                regulations should be implemented.''.

SEC. 506. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN ENERGY 
              MARKETS.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by 
sections 501, 502, and 505 of this Act, is amended by adding at the end 
the following:
    ``(h) Disaggregation of Index Funds and Data in Energy Markets.--
The Commission shall disaggregate and make public monthly--
            ``(1) the number of positions and total value of index 
        funds and other passive, long-only positions in energy markets; 
        and
            ``(2) data on speculative positions relative to bona fide 
        physical hedgers in those markets.''.

                        TITLE VI--NUCLEAR ENERGY

SEC. 601. STUDY OF IMPACT ON GREENHOUSE GAS REDUCTIONS.

    Not later than 18 months after the date of the enactment of this 
Act, the Secretary of Energy shall study and report to the Congress on 
the effect that expanding nuclear energy production would have on 
reducing greenhouse gases.

SEC. 602. STUDY OF POSSIBLE COST REDUCTIONS.

    Not later than 18 months after the date of the enactment of this 
Act, the Secretary of Energy shall study and report to the Congress on 
the effect that expanding nuclear energy production would have on 
reducing the cost of an average kilowatt hour to commercial power 
customers.

SEC. 603. AUTHORIZATION FOR NUCLEAR POWER 2010 PROGRAM.

    Section 952 of the Energy Policy Act of 2005 (42 U.S.C. 16272) is 
amended by striking subsection (c) and inserting the following:
    ``(c) Nuclear Power 2010 Program.--
            ``(1) In general.--The Secretary shall carry out a Nuclear 
        Power 2010 Program to position the United States to commence 
        construction of new nuclear power plants by not later than--
                    ``(A) calendar year 2010; or
                    ``(B) such first calendar year after calendar year 
                2010 as is practicable.
            ``(2) Scope of program.--The Nuclear Power 2010 Program 
        shall support the objectives of--
                    ``(A) demonstrating the licensing process for new 
                nuclear power plants, including the Nuclear Regulatory 
                Commission process for obtaining--
                            ``(i) early site permits;
                            ``(ii) combined construction or operating 
                        licenses; and
                            ``(iii) design certifications; and
                    ``(B) conducting first-of-a-kind design and 
                engineering work on at least 2 advanced nuclear reactor 
                designs sufficient to bring those designs to a state of 
                design completion sufficient to allow development of 
                firm cost estimates.
            ``(3) Cost-sharing.--The Nuclear Power 2010 Program shall 
        be carried out through the use of cost-sharing with the private 
        sector.
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry out the 
        Nuclear Power 2010 Program--
                    ``(A) $182,800,000 for fiscal year 2009;
                    ``(B) $159,600,000 for fiscal year 2010;
                    ``(C) $135,600,000 for fiscal year 2011;
                    ``(D) $46,900,000 for fiscal year 2012; and
                    ``(E) $2,200,000 for fiscal year 2013.''.

SEC. 604. ESTABLISHMENT OF INTERAGENCY WORKING GROUP.

    (a) Purposes.--The purposes of this section are--
            (1) to increase the competitiveness of the United States 
        nuclear energy products and services industries;
            (2) to identify the stimulus or incentives necessary to 
        cause United States manufacturers of nuclear energy products to 
        expand manufacturing capacity;
            (3) to facilitate the export of United States nuclear 
        energy products and services;
            (4) to reduce the trade deficit of the United States 
        through the export of United States nuclear energy products and 
        services;
            (5) to retain and create nuclear energy manufacturing and 
        related service jobs in the United States;
            (6) to integrate the objectives described in paragraphs (1) 
        through (5), in a manner consistent with the interests of the 
        United States, into the foreign policy of the United States; 
        and
            (7) to authorize funds for increasing United States 
        capacity to manufacture nuclear energy products and supply 
        nuclear energy services.
    (b) Establishment.--
            (1) In general.--There is established an interagency 
        working group (referred to in this section as the ``Working 
        Group'') that, in consultation with representative industry 
        organizations and manufacturers of nuclear energy products, 
        shall make recommendations to coordinate the actions and 
        programs of the Federal Government in order to promote 
        increasing domestic manufacturing capacity and export of 
        domestic nuclear energy products and services.
            (2) Composition.--The Working Group shall be composed of--
                    (A) the Secretary (or a designee), who shall serve 
                as Chairperson of the Working Group; and
                    (B) representatives, appointed by the head of each 
                applicable agency or department, of--
                            (i) the Department of Energy;
                            (ii) the Department of Commerce;
                            (iii) the Department of Defense;
                            (iv) the Department of the Treasury;
                            (v) the Department of State;
                            (vi) the Environmental Protection Agency;
                            (vii) the United States Agency for 
                        International Development;
                            (viii) the Export-Import Bank of the United 
                        States;
                            (ix) the Trade and Development Agency;
                            (x) the Small Business Administration;
                            (xi) the Office of the United States Trade 
                        Representative; and
                            (xii) other Federal agencies, as determined 
                        by the President.
    (c) Duties of Working Group.--The Working Group shall--
            (1) not later than 180 days after the date of enactment of 
        this Act, identify the actions necessary to promote the safe 
        development and application in foreign countries of nuclear 
        energy products and services--
                    (A) to increase electricity generation from nuclear 
                energy sources through development of new generation 
                facilities;
                    (B) to improve the efficiency, safety, and 
                reliability of existing nuclear generating facilities 
                through modifications; and
                    (C) enhance the safe treatment, handling, storage, 
                and disposal of used nuclear fuel;
            (2) not later than 180 days after the date of enactment of 
        this Act, identify--
                    (A) mechanisms (including tax stimuli for 
                investment, loans and loan guarantees, and grants) 
                necessary for United States companies to increase--
                            (i) the capacity of the companies to 
                        produce or provide nuclear energy products and 
                        services; and
                            (ii) exports of nuclear energy products and 
                        services; and
                    (B) administrative or legislative initiatives that 
                are necessary--
                            (i) to encourage United States companies to 
                        increase the manufacturing capacity of the 
                        companies for nuclear energy products;
                            (ii) to provide technical and financial 
                        assistance and support to small and mid-sized 
                        businesses to establish quality assurance 
                        programs in accordance with domestic and 
                        international nuclear quality assurance code 
                        requirements;
                            (iii) to encourage, through financial 
                        incentives, private sector capital investment 
                        to expand manufacturing capacity; and
                            (iv) to provide technical assistance and 
                        financial incentives to small and mid-sized 
                        businesses to develop the workforce necessary 
                        to increase manufacturing capacity and meet 
                        domestic and international nuclear quality 
                        assurance code requirements;
            (3) not later than 270 days after the date of enactment of 
        this Act, submit to Congress a report that describes the 
        findings of the Working Group under paragraphs (1) and (2), 
        including recommendations for new legislative authority, as 
        necessary; and
            (4) encourage the agencies represented by membership in the 
        Working Group--
                    (A) to provide technical training and education for 
                international development personnel and local users in 
                other countries;
                    (B) to provide financial and technical assistance 
                to nonprofit institutions that support the marketing 
                and export efforts of domestic companies that provide 
                nuclear energy products and services;
                    (C) to develop nuclear energy projects in foreign 
                countries;
                    (D) to provide technical assistance and training 
                materials to loan officers of the World Bank, 
                international lending institutions, commercial and 
                energy attaches at embassies of the United States, and 
                other appropriate personnel in order to provide 
                information about nuclear energy products and services 
                to foreign governments or other potential project 
                sponsors;
                    (E) to support, through financial incentives, 
                private sector efforts to commercialize and export 
                nuclear energy products and services in accordance with 
                the subsidy codes of the World Trade Organization; and
                    (F) to augment budgets for trade and development 
                programs in order to support prefeasibility or 
                feasibility studies for projects that use nuclear 
                energy products and services.
    (d) Personnel and Service Matters.--The Secretary and the heads of 
agencies represented by membership in the Working Group shall detail 
such personnel and furnish such services to the Working Group, with or 
without reimbursement, as are necessary to carry out the functions of 
the Working Group.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $20,000,000 for 
each of fiscal years 2009 and 2010.

SEC. 605. NUCLEAR ENERGY WORKFORCE.

    Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is 
amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(d) Workforce Training.--
            ``(1) In general.--The Secretary of Labor, in cooperation 
        with the Secretary of Energy, shall promulgate regulations to 
        implement a program to provide workforce training to meet the 
        high demand for workers skilled in the nuclear utility and 
        nuclear energy products and services industries.
            ``(2) Consultation.--In carrying out this subsection, the 
        Secretary of Labor shall consult with representatives of the 
        nuclear utility and nuclear energy products and services 
        industries, and organized labor, concerning skills that are 
        needed in those industries.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary of Labor, in 
        coordination with the Secretary of Education and the Secretary 
        of Energy, to carry out this subsection $20,000,000 for each of 
        fiscal years 2009 through 2012.''.

                    TITLE VII--ENERGY TAX INCENTIVES

SEC. 700. REFERENCE.

    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.

                Subtitle A--Energy Production Incentives

                  PART 1--RENEWABLE ENERGY INCENTIVES

SEC. 701. RENEWABLE ENERGY CREDIT.

    (a) Extension of Credit.--
            (1) 1-year extension for wind facilities.--Paragraph (1) of 
        section 45(d) is amended by striking ``January 1, 2009'' and 
        inserting ``January 1, 2010''.
            (2) 3-year extension for certain other facilities.--Each of 
        the following provisions of section 45(d) is amended by 
        striking ``January 1, 2009'' and inserting ``January 1, 2012'':
                    (A) Clauses (i) and (ii) of paragraph (2)(A).
                    (B) Clauses (i)(I) and (ii) of paragraph (3)(A).
                    (C) Paragraph (4).
                    (D) Paragraph (5).
                    (E) Paragraph (6).
                    (F) Paragraph (7).
                    (G) Subparagraphs (A) and (B) of paragraph (9).
    (b) Modification of Credit Phaseout.--
            (1) Repeal of phaseout.--Subsection (b) of section 45 is 
        amended--
                    (A) by striking paragraph (1), and
                    (B) by striking ``the 8 cent amount in paragraph 
                (1),'' in paragraph (2) thereof.
            (2) Limitation based on investment in facility.--Subsection 
        (b) of section 45 is amended by inserting before paragraph (2) 
        the following new paragraph:
            ``(1) Limitation based on investment in facility.--
                    ``(A) In general.--In the case of any qualified 
                facility originally placed in service after December 
                31, 2009, the amount of the credit determined under 
                subsection (a) for any taxable year with respect to 
                electricity produced at such facility shall not exceed 
                the product of--
                            ``(i) the applicable percentage with 
                        respect to such facility, multiplied by
                            ``(ii) the eligible basis of such facility.
                    ``(B) Carryforward of unused limitation and excess 
                credit.--
                            ``(i) Unused limitation.--If the limitation 
                        imposed under subparagraph (A) with respect to 
                        any facility for any taxable year exceeds the 
                        prelimitation credit for such facility for such 
                        taxable year, the limitation imposed under 
                        subparagraph (A) with respect to such facility 
                        for the succeeding taxable year shall be 
                        increased by the amount of such excess.
                            ``(ii) Excess credit.--If the prelimitation 
                        credit with respect to any facility for any 
                        taxable year exceeds the limitation imposed 
                        under subparagraph (A) with respect to such 
                        facility for such taxable year, the credit 
                        determined under subsection (a) with respect to 
                        such facility for the succeeding taxable year 
                        (determined before the application of 
                        subparagraph (A) for such succeeding taxable 
                        year) shall be increased by the amount of such 
                        excess. With respect to any facility, no amount 
                        may be carried forward under this clause to any 
                        taxable year beginning after the 10-year period 
                        described in subsection (a)(2)(A)(ii) with 
                        respect to such facility.
                            ``(iii) Prelimitation credit.--The term 
                        `prelimitation credit' with respect to any 
                        facility for a taxable year means the credit 
                        determined under subsection (a) with respect to 
                        such facility for such taxable year, determined 
                        without regard to subparagraph (A) and after 
                        taking into account any increase for such 
                        taxable year under clause (ii).
                    ``(C) Applicable percentage.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `applicable 
                        percentage' means, with respect to any 
                        facility, the appropriate percentage prescribed 
                        by the Secretary for the month in which such 
                        facility is originally placed in service.
                            ``(ii) Method of prescribing applicable 
                        percentages.--The applicable percentages 
                        prescribed by the Secretary for any month under 
                        clause (i) shall be percentages which yield 
                        over a 10-year period amounts of limitation 
                        under subparagraph (A) which have a present 
                        value equal to 35 percent of the eligible basis 
                        of the facility.
                            ``(iii) Method of discounting.--The present 
                        value under clause (ii) shall be determined--
                                    ``(I) as of the last day of the 1st 
                                year of the 10-year period referred to 
                                in clause (ii),
                                    ``(II) by using a discount rate 
                                equal to the greater of 110 percent of 
                                the Federal long-term rate as in effect 
                                under section 1274(d) for the month 
                                preceding the month for which the 
                                applicable percentage is being 
                                prescribed, or 4.5 percent, and
                                    ``(III) by taking into account the 
                                limitation under subparagraph (A) for 
                                any year on the last day of such year.
                    ``(D) Eligible basis.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `eligible 
                        basis' means, with respect to any facility, the 
                        sum of--
                                    ``(I) the basis of such facility 
                                determined as of the time that such 
                                facility is originally placed in 
                                service, and
                                    ``(II) the portion of the basis of 
                                any shared qualified property which is 
                                properly allocable to such facility 
                                under clause (ii).
                            ``(ii) Rules for allocation.--For purposes 
                        of subclause (II) of clause (i), the basis of 
                        shared qualified property shall be allocated 
                        among all qualified facilities which are 
                        projected to be placed in service and which 
                        require utilization of such property in 
                        proportion to projected generation from such 
                        facilities.
                            ``(iii) Shared qualified property.--For 
                        purposes of this paragraph, the term `shared 
                        qualified property' means, with respect to any 
                        facility, any property described in section 
                        168(e)(3)(B)(vi)--
                                    ``(I) which a qualified facility 
                                will require for utilization of such 
                                facility, and
                                    ``(II) which is not a qualified 
                                facility.
                            ``(iv) Special rule relating to geothermal 
                        facilities.--In the case of any qualified 
                        facility using geothermal energy to produce 
                        electricity, the basis of such facility for 
                        purposes of this paragraph shall be determined 
                        as though intangible drilling and development 
                        costs described in section 263(c) were 
                        capitalized rather than expensed.
                    ``(E) Special rule for first and last year of 
                credit period.--In the case of any taxable year any 
                portion of which is not within the 10-year period 
                described in subsection (a)(2)(A)(ii) with respect to 
                any facility, the amount of the limitation under 
                subparagraph (A) with respect to such facility shall be 
                reduced by an amount which bears the same ratio to the 
                amount of such limitation (determined without regard to 
                this subparagraph) as such portion of the taxable year 
                which is not within such period bears to the entire 
                taxable year.
                    ``(F) Election to treat all facilities placed in 
                service in a year as 1 facility.--At the election of 
                the taxpayer, all qualified facilities which are part 
                of the same project and which are placed in service 
                during the same calendar year shall be treated for 
                purposes of this section as 1 facility which is placed 
                in service at the mid-point of such year or the first 
                day of the following calendar year.''.
    (c) Trash Facility Clarification.--Paragraph (7) of section 45(d) 
is amended--
            (1) by striking ``facility which burns'' and inserting 
        ``facility (other than a facility described in paragraph (6)) 
        which uses'', and
            (2) by striking ``combustion''.
    (d) Expansion of Biomass Facilities.--
            (1) Open-loop biomass facilities.--Paragraph (3) of section 
        45(d) is amended by redesignating subparagraph (B) as 
        subparagraph (C) and by inserting after subparagraph (A) the 
        following new subparagraph:
                    ``(B) Expansion of facility.--Such term shall 
                include a new unit placed in service after the date of 
                the enactment of this subparagraph in connection with a 
                facility described in subparagraph (A), but only to the 
                extent of the increased amount of electricity produced 
                at the facility by reason of such new unit.''.
            (2) Closed-loop biomass facilities.--Paragraph (2) of 
        section 45(d) is amended by redesignating subparagraph (B) as 
        subparagraph (C) and inserting after subparagraph (A) the 
        following new subparagraph:
                    ``(B) Expansion of facility.--Such term shall 
                include a new unit placed in service after the date of 
                the enactment of this subparagraph in connection with a 
                facility described in subparagraph (A)(i), but only to 
                the extent of the increased amount of electricity 
                produced at the facility by reason of such new unit.''.
    (e) Sales of Net Electricity to Regulated Public Utilities Treated 
as Sales to Unrelated Persons.--Paragraph (4) of section 45(e) is 
amended by adding at the end the following new sentence: ``The net 
amount of electricity sold by any taxpayer to a regulated public 
utility (as defined in section 7701(a)(33)) shall be treated as sold to 
an unrelated person.''.
    (f) Modification of Rules for Hydropower Production.--Subparagraph 
(C) of section 45(c)(8) is amended to read as follows:
                    ``(C) Nonhydroelectric dam.--For purposes of 
                subparagraph (A), a facility is described in this 
                subparagraph if--
                            ``(i) the hydroelectric project installed 
                        on the nonhydroelectric dam is licensed by the 
                        Federal Energy Regulatory Commission and meets 
                        all other applicable environmental, licensing, 
                        and regulatory requirements,
                            ``(ii) the nonhydroelectric dam was placed 
                        in service before the date of the enactment of 
                        this paragraph and operated for flood control, 
                        navigation, or water supply purposes and did 
                        not produce hydroelectric power on the date of 
                        the enactment of this paragraph, and
                            ``(iii) the hydroelectric project is 
                        operated so that the water surface elevation at 
                        any given location and time that would have 
                        occurred in the absence of the hydroelectric 
                        project is maintained, subject to any license 
                        requirements imposed under applicable law that 
                        change the water surface elevation for the 
                        purpose of improving environmental quality of 
                        the affected waterway.
                The Secretary, in consultation with the Federal Energy 
                Regulatory Commission, shall certify if a hydroelectric 
                project licensed at a nonhydroelectric dam meets the 
                criteria in clause (iii). Nothing in this section shall 
                affect the standards under which the Federal Energy 
                Regulatory Commission issues licenses for and regulates 
                hydropower projects under part I of the Federal Power 
                Act.''.
    (g) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        property originally placed in service after December 31, 2008.
            (2) Repeal of credit phaseout.--The amendments made by 
        subsection (b)(1) shall apply to taxable years ending after 
        December 31, 2008.
            (3) Limitation based on investment in facility.--The 
        amendment made by subsection (b)(2) shall apply to property 
        originally placed in service after December 31, 2009.
            (4) Trash facility clarification; sales to related 
        regulated public utilities.--The amendments made by subsections 
        (c) and (e) shall apply to electricity produced and sold after 
        the date of the enactment of this Act.
            (5) Expansion of biomass facilities.--The amendments made 
        by subsection (d) shall apply to property placed in service 
        after the date of the enactment of this Act.

SEC. 702. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE 
              RENEWABLES.

    (a) In General.--Paragraph (1) of section 45(c) is amended by 
striking ``and'' at the end of subparagraph (G), by striking the period 
at the end of subparagraph (H) and inserting ``, and'', and by adding 
at the end the following new subparagraph:
                    ``(I) marine and hydrokinetic renewable energy.''.
    (b) Marine Renewables.--Subsection (c) of section 45 is amended by 
adding at the end the following new paragraph:
            ``(10) Marine and hydrokinetic renewable energy.--
                    ``(A) In general.--The term `marine and 
                hydrokinetic renewable energy' means energy derived 
                from--
                            ``(i) waves, tides, and currents in oceans, 
                        estuaries, and tidal areas,
                            ``(ii) free flowing water in rivers, lakes, 
                        and streams,
                            ``(iii) 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
                            ``(iv) differentials in ocean temperature 
                        (ocean thermal energy conversion).
                    ``(B) Exceptions.--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.''.
    (c) Definition of Facility.--Subsection (d) of section 45 is 
amended by adding at the end the following new paragraph:
            ``(11) Marine and hydrokinetic renewable energy 
        facilities.--In the case of a facility producing electricity 
        from marine and hydrokinetic renewable energy, the term 
        `qualified facility' means any facility owned by the taxpayer--
                    ``(A) which has a nameplate capacity rating of at 
                least 150 kilowatts, and
                    ``(B) which is originally placed in service on or 
                after the date of the enactment of this paragraph and 
                before January 1, 2012.''.
    (d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is amended 
by striking ``or (9)'' and inserting ``(9), or (11)''.
    (e) Coordination With Small Irrigation Power.--Paragraph (5) of 
section 45(d), as amended by section 701, is amended by striking 
``January 1, 2012'' and inserting ``the date of the enactment of 
paragraph (11)''.
    (f) Effective Date.--The amendments made by this section shall 
apply to electricity produced and sold after the date of the enactment 
of this Act, in taxable years ending after such date.

SEC. 703. ENERGY CREDIT.

    (a) Extension of Credit.--
            (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
        (3)(A)(ii) of section 48(a) are each amended by striking 
        ``January 1, 2009'' and inserting ``January 1, 2015''.
            (2) Fuel cell property.--Subparagraph (E) of section 
        48(c)(1) is amended by striking ``December 31, 2008'' and 
        inserting ``December 31, 2014''.
            (3) Microturbine property.--Subparagraph (E) of section 
        48(c)(2) is amended by striking ``December 31, 2008'' and 
        inserting ``December 31, 2014''.
    (b) Allowance of Energy Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) is amended by striking ``and'' at 
the end of clause (iii), by redesignating clause (iv) as clause (v), 
and by inserting after clause (iii) the following new clause:
                            ``(iv) the credit determined under section 
                        46 to the extent that such credit is 
                        attributable to the energy credit determined 
                        under section 48, and''.
    (c) Energy Credit for Combined Heat and Power System Property.--
            (1) In general.--Section 48(a)(3)(A) (defining energy 
        property) is amended by striking ``or'' at the end of clause 
        (iii), by inserting ``or'' at the end of clause (iv), and by 
        adding at the end the following new clause:
                            ``(v) combined heat and power system 
                        property,''.
            (2) Combined heat and power system property.--Section 48 is 
        amended by adding at the end the following new subsection:
    ``(d) Combined Heat and Power System Property.--For purposes of 
subsection (a)(3)(A)(v)--
            ``(1) Combined heat and power system property.--The term 
        `combined heat and power system property' means property 
        comprising a system--
                    ``(A) which uses the same energy source for the 
                simultaneous or sequential generation of electrical 
                power, mechanical shaft power, or both, in combination 
                with the generation of steam or other forms of useful 
                thermal energy (including heating and cooling 
                applications),
                    ``(B) which produces--
                            ``(i) at least 20 percent of its total 
                        useful energy in the form of thermal energy 
                        which is not used to produce electrical or 
                        mechanical power (or combination thereof), and
                            ``(ii) at least 20 percent of its total 
                        useful energy in the form of electrical or 
                        mechanical power (or combination thereof),
                    ``(C) the energy efficiency percentage of which 
                exceeds 60 percent, and
                    ``(D) which is placed in service before January 1, 
                2015.
            ``(2) Limitation.--
                    ``(A) In general.--In the case of combined heat and 
                power system property with an electrical capacity in 
                excess of the applicable capacity placed in service 
                during the taxable year, the credit under subsection 
                (a)(1) (determined without regard to this paragraph) 
                for such year shall be equal to the amount which bears 
                the same ratio to such credit as the applicable 
                capacity bears to the capacity of such property.
                    ``(B) Applicable capacity.--For purposes of 
                subparagraph (A), the term `applicable capacity' means 
                15 megawatts or a mechanical energy capacity of more 
                than 20,000 horsepower or an equivalent combination of 
                electrical and mechanical energy capacities.
                    ``(C) Maximum capacity.--The term `combined heat 
                and power system property' shall not include any 
                property comprising a system if such system has a 
                capacity in excess of 50 megawatts or a mechanical 
                energy capacity in excess of 67,000 horsepower or an 
                equivalent combination of electrical and mechanical 
                energy capacities.
            ``(3) Special rules.--
                    ``(A) Energy efficiency percentage.--For purposes 
                of this subsection, the energy efficiency percentage of 
                a system is the fraction--
                            ``(i) the numerator of which is the total 
                        useful electrical, thermal, and mechanical 
                        power produced by the system at normal 
                        operating rates, and expected to be consumed in 
                        its normal application, and
                            ``(ii) the denominator of which is the 
                        lower heating value of the fuel sources for the 
                        system.
                    ``(B) Determinations made on btu basis.--The energy 
                efficiency percentage and the percentages under 
                paragraph (1)(B) shall be determined on a Btu basis.
                    ``(C) Input and output property not included.--The 
                term `combined heat and power system property' does not 
                include property used to transport the energy source to 
                the facility or to distribute energy produced by the 
                facility.
            ``(4) Systems using biomass.--If a system is designed to 
        use biomass (within the meaning of paragraphs (2) and (3) of 
        section 45(c) without regard to the last sentence of paragraph 
        (3)(A)) for at least 90 percent of the energy source--
                    ``(A) paragraph (1)(C) shall not apply, but
                    ``(B) the amount of credit determined under 
                subsection (a) with respect to such system shall not 
                exceed the amount which bears the same ratio to such 
                amount of credit (determined without regard to this 
                paragraph) as the energy efficiency percentage of such 
                system bears to 60 percent.''.
    (d) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking ``$500'' 
and inserting ``$1,500''.
    (e) Public Utility Property Taken Into Account.--
            (1) In general.--Paragraph (3) of section 48(a) is amended 
        by striking the second sentence thereof.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of section 48(c) is amended by 
                striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
                    (B) Paragraph (2) of section 48(c) is amended by 
                striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
    (f) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall take 
        effect on the date of the enactment of this Act.
            (2) Allowance against alternative minimum tax.--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.
            (3) Combined heat and power and fuel cell property.--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 section 48(m) of the Internal Revenue Code of 1986 (as in 
        effect on the day before the date of the enactment of the 
        Revenue Reconciliation Act of 1990).
            (4)  Public utility property.--The amendments made by 
        subsection (e) shall apply to periods after February 13, 2008, 
        in taxable years ending after such date, under rules similar to 
        the rules of section 48(m) of the Internal Revenue Code of 1986 
        (as in effect on the day before the date of the enactment of 
        the Revenue Reconciliation Act of 1990).

SEC. 704. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

    (a) Extension.--Section 25D(g) is amended by striking ``December 
31, 2008'' and inserting ``December 31, 2014''.
    (b) Maximum Credit for Solar Electric Property.--
            (1) In general.--Section 25D(b)(1)(A) is amended by 
        striking ``$2,000'' and inserting ``$4,000''.
            (2) Conforming amendment.--Section 25D(e)(4)(A)(i) is 
        amended by striking ``$6,667'' and inserting ``$13,333''.
    (c) Credit for Residential Wind Property.--
            (1) In general.--Section 25D(a) is amended by striking 
        ``and'' at the end of paragraph (2), by striking the period at 
        the end of paragraph (3) and inserting ``, and'', and by adding 
        at the end the following new paragraph:
            ``(4) 30 percent of the qualified small wind energy 
        property expenditures made by the taxpayer during such year.''.
            (2) Limitation.--Section 25D(b)(1) is amended by striking 
        ``and'' at the end of subparagraph (B), by striking the period 
        at the end of subparagraph (C) and inserting ``, and'', and by 
        adding at the end the following new subparagraph:
                    ``(D) $500 with respect to each half kilowatt of 
                capacity (not to exceed $4,000) of wind turbines for 
                which qualified small wind energy property expenditures 
                are made.''.
            (3) Qualified small wind energy property expenditures.--
                    (A) In general.--Section 25D(d) is amended by 
                adding at the end the following new paragraph:
            ``(4) Qualified small wind energy property expenditure.--
        The term `qualified small wind energy property expenditure' 
        means an expenditure for property which uses a wind turbine to 
        generate electricity for use in connection with a dwelling unit 
        located in the United States and used as a residence by the 
        taxpayer.''.
                    (B) No double benefit.--Section 45(d)(1) is amended 
                by adding at the end the following new sentence: ``Such 
                term shall not include any facility with respect to 
                which any qualified small wind energy property 
                expenditure (as defined in subsection (d)(4) of section 
                25D) is taken into account in determining the credit 
                under such section.''.
            (4) Maximum expenditures in case of joint occupancy.--
        Section 25D(e)(4)(A) is amended by striking ``and'' at the end 
        of clause (ii), by striking the period at the end of clause 
        (iii) and inserting ``, and'', and by adding at the end the 
        following new clause:
                            ``(iv) $1,667 in the case of each half 
                        kilowatt of capacity (not to exceed $13,333) of 
                        wind turbines for which qualified small wind 
                        energy property expenditures are made.''.
    (d) Credit for Geothermal Heat pump Systems.--
            (1) In general.--Section 25D(a), as amended by subsection 
        (c), is amended by striking ``and'' at the end of paragraph 
        (3), by striking the period at the end of paragraph (4) and 
        inserting ``, and'', and by adding at the end the following new 
        paragraph:
            ``(5) 30 percent of the qualified geothermal heat pump 
        property expenditures made by the taxpayer during such year.''.
            (2) Limitation.--Section 25D(b)(1), as amended by 
        subsection (c), is amended by striking ``and'' at the end of 
        subparagraph (C), by striking the period at the end of 
        subparagraph (D) and inserting ``, and'', and by adding at the 
        end the following new subparagraph:
                    ``(E) $2,000 with respect to any qualified 
                geothermal heat pump property expenditures.''.
            (3) Qualified geothermal heat pump property expenditure.--
        Section 25D(d), as amended by subsection (c), is amended by 
        adding at the end the following new paragraph:
            ``(5) Qualified geothermal heat pump property 
        expenditure.--
                    ``(A) In general.--The term `qualified geothermal 
                heat pump property expenditure' means an expenditure 
                for qualified geothermal heat pump property installed 
                on or in connection with a dwelling unit located in the 
                United States and used as a residence by the taxpayer.
                    ``(B) Qualified geothermal heat pump property.--The 
                term `qualified geothermal heat pump property' means 
                any equipment which--
                            ``(i) uses the ground or ground water as a 
                        thermal energy source to heat the dwelling unit 
                        referred to in subparagraph (A) or as a thermal 
                        energy sink to cool such dwelling unit, and
                            ``(ii) meets the requirements of the Energy 
                        Star program which are in effect at the time 
                        that the expenditure for such equipment is 
                        made.''.
            (4) Maximum expenditures in case of joint occupancy.--
        Section 25D(e)(4)(A), as amended by subsection (c), is amended 
        by striking ``and'' at the end of clause (iii), by striking the 
        period at the end of clause (iv) and inserting ``, and'', and 
        by adding at the end the following new clause:
                            ``(v) $6,667 in the case of any qualified 
                        geothermal heat pump property expenditures.''.
    (e) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Subsection (c) of section 25D is amended 
        to read as follows:
    ``(c) Limitation Based on Amount of Tax; Carryforward of Unused 
Credit.--
            ``(1) Limitation based on amount of tax.--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--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.
            ``(2) Carryforward of unused credit.--
                    ``(A) Rule for years in which all personal credits 
                allowed against regular and alternative minimum tax.--
                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.
                    ``(B) Rule for other years.--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.''.
            (2) Conforming amendments.--
                    (A) Section 23(b)(4)(B) is amended by inserting 
                ``and section 25D'' after ``this section''.
                    (B) Section 24(b)(3)(B) is amended by striking 
                ``and 25B'' and inserting ``, 25B, and 25D''.
                    (C) Section 25B(g)(2) is amended by striking 
                ``section 23'' and inserting ``sections 23 and 25D''.
                    (D) Section 26(a)(1) is amended by striking ``and 
                25B'' and inserting ``25B, and 25D''.
    (f) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2007.
            (2) Application of egtrra sunset.--The amendments made by 
        subparagraphs (A) and (B) of subsection (e)(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.

SEC. 705. SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC 
              RESTRUCTURING POLICY.

    (a) Extension for Qualified Electric Utilities.--
            (1) In general.--Paragraph (3) of section 451(i) is amended 
        by inserting ``(before January 1, 2010, in the case of a 
        qualified electric utility)'' after ``January 1, 2008''.
            (2) Qualified electric utility.--Subsection (i) of section 
        451 is amended by redesignating paragraphs (6) through (10) as 
        paragraphs (7) through (11), respectively, and by inserting 
        after paragraph (5) the following new paragraph:
            ``(6) Qualified electric utility.--For purposes of this 
        subsection, the term `qualified electric utility' means a 
        person that, as of the date of the qualifying electric 
        transmission transaction, is vertically integrated, in that it 
        is both--
                    ``(A) a transmitting utility (as defined in section 
                3(23) of the Federal Power Act (16 U.S.C. 796(23))) 
                with respect to the transmission facilities to which 
                the election under this subsection applies, and
                    ``(B) an electric utility (as defined in section 
                3(22) of the Federal Power Act (16 U.S.C. 796(22))).''.
    (b) Extension of Period for Transfer of Operational Control 
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is amended by 
striking ``December 31, 2007'' and inserting ``the date which is 4 
years after the close of the taxable year in which the transaction 
occurs''.
    (c) Property Located Outside the United States Not Treated as 
Exempt Utility Property.--Paragraph (5) of section 451(i) is amended by 
adding at the end the following new subparagraph:
                    ``(C) Exception for property located outside the 
                united states.--The term `exempt utility property' 
                shall not include any property which is located outside 
                the United States.''.
    (d) Effective Dates.--
            (1) Extension.--The amendments made by subsection (a) shall 
        apply to transactions after December 31, 2007.
            (2) Transfers of operational control.--The amendment made 
        by subsection (b) shall take effect as if included in section 
        909 of the American Jobs Creation Act of 2004.
            (3) Exception for property located outside the united 
        states.--The amendment made by subsection (c) shall apply to 
        transactions after the date of the enactment of this Act.

SEC. 706. NEW CLEAN RENEWABLE ENERGY BONDS.

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

``SEC. 54C. NEW CLEAN RENEWABLE ENERGY BONDS.

    ``(a) New Clean Renewable Energy Bond.--For purposes of this 
subpart, the term `new clean renewable energy bond' means any bond 
issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for capital expenditures incurred by 
        public power providers or cooperative electric companies for 
        one or more qualified renewable energy facilities,
            ``(2) the bond is issued by a qualified issuer, and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Reduced Credit Amount.--The annual credit determined under 
section 54A(b) with respect to any new clean renewable energy bond 
shall be 70 percent of the amount so determined without regard to this 
subsection.
    ``(c) Limitation on Amount of Bonds Designated.--
            ``(1) In general.--The maximum aggregate face amount of 
        bonds which may be designated under subsection (a) by any 
        issuer shall not exceed the limitation amount allocated under 
        this subsection to such issuer.
            ``(2) National limitation on amount of bonds designated.--
        There is a national new clean renewable energy bond limitation 
        of $2,000,000,000 which shall be allocated by the Secretary as 
        provided in paragraph (3), except that--
                    ``(A) not more than 33\1/3\ percent thereof may be 
                allocated to qualified projects of public power 
                providers,
                    ``(B) not more than 33\1/3\ percent thereof may be 
                allocated to qualified projects of governmental bodies, 
                and
                    ``(C) not more than 33\1/3\ percent thereof may be 
                allocated to qualified projects of cooperative electric 
                companies.
            ``(3) Method of allocation.--
                    ``(A) Allocation among public power providers.--
                After the Secretary determines the qualified projects 
                of public power providers which are appropriate for 
                receiving an allocation of the national new clean 
                renewable energy bond limitation, the Secretary shall, 
                to the maximum extent practicable, make allocations 
                among such projects in such manner that the amount 
                allocated to each such project bears the same ratio to 
                the cost of such project as the limitation under 
                paragraph (2)(A) bears to the cost of all such 
                projects.
                    ``(B) Allocation among governmental bodies and 
                cooperative electric companies.--The Secretary shall 
                make allocations of the amount of the national new 
                clean renewable energy bond limitation described in 
                paragraphs (2)(B) and (2)(C) among qualified projects 
                of governmental bodies and cooperative electric 
                companies, respectively, in such manner as the 
                Secretary determines appropriate.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified renewable energy facility.--The term 
        `qualified renewable energy facility' means a qualified 
        facility (as determined under section 45(d) without regard to 
        paragraphs (8) and (10) thereof and to any placed in service 
        date) owned by a public power provider, a governmental body, or 
        a cooperative electric company.
            ``(2) Public power provider.--The term `public power 
        provider' 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).
            ``(3) Governmental body.--The term `governmental body' 
        means any State or Indian tribal government, or any political 
        subdivision thereof.
            ``(4) Cooperative electric company.--The term `cooperative 
        electric company' means a mutual or cooperative electric 
        company described in section 501(c)(12) or section 
        1381(a)(2)(C).
            ``(5) Clean renewable energy bond lender.--The term `clean 
        renewable energy bond lender' means a lender which is a 
        cooperative which is owned by, or has outstanding loans to, 100 
        or more cooperative electric companies and is in existence on 
        February 1, 2002, and shall include any affiliated entity which 
        is controlled by such lender.
            ``(6) Qualified issuer.--The term `qualified issuer' means 
        a public power provider, a cooperative electric company, a 
        governmental body, a clean renewable energy bond lender, or a 
        not-for-profit electric utility which has received a loan or 
        loan guarantee under the Rural Electrification Act.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d) is amended to read as 
        follows:
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means--
                    ``(A) a qualified forestry conservation bond, or
                    ``(B) a new clean renewable energy bond,
        which is part of an issue that meets requirements of paragraphs 
        (2), (3), (4), (5), and (6).''.
            (2) Subparagraph (C) of section 54A(d)(2) is amended to 
        read as follows:
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means--
                            ``(i) in the case of a qualified forestry 
                        conservation bond, a purpose specified in 
                        section 54B(e), and
                            ``(ii) in the case of a new clean renewable 
                        energy bond, a purpose specified in section 
                        54C(a)(1).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``SEC. 54C. QUALIFIED CLEAN RENEWABLE ENERGY BONDS.''.

    (c) Reporting.--Subsection (d) of section 6049 is amended by adding 
at the end the following new paragraph:
            ``(9) Reporting of credit on qualified tax credit bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54A and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54A(e)(1)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
    (d) Application of Certain Labor Standards on Projects Financed 
Under Tax Credit Bonds.--Subchapter IV of chapter 31 of title 40, 
United States Code, shall apply to projects financed with the proceeds 
of any tax credit bond (as defined in section 54A of the Internal 
Revenue Code of 1986).
    (e) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

                  PART 2--CARBON MITIGATION PROVISIONS

SEC. 711. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT 
              INVESTMENT CREDIT.

    (a) Modification of Credit Amount.--Section 48A(a) is amended by 
striking ``and'' at the end of paragraph (1), by striking the period at 
the end of paragraph (2) and inserting ``, and'', and by adding at the 
end the following new paragraph:
            ``(3) 30 percent of the qualified investment for such 
        taxable year in the case of projects described in clause (iii) 
        of subsection (d)(3)(B).''.
    (b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A) is 
amended by striking ``$1,300,000,000'' and inserting 
``$2,550,000,000''.
    (c) Authorization of Additional Projects.--
            (1) In general.--Subparagraph (B) of section 48A(d)(3) is 
        amended to read as follows:
                    ``(B) Particular projects.--Of the dollar amount in 
                subparagraph (A), the Secretary is authorized to 
                certify--
                            ``(i) $800,000,000 for integrated 
                        gasification combined cycle projects the 
                        application for which is submitted during the 
                        period described in paragraph (2)(A)(i),
                            ``(ii) $500,000,000 for projects which use 
                        other advanced coal-based generation 
                        technologies the application for which is 
                        submitted during the period described in 
                        paragraph (2)(A)(i), and
                            ``(iii) $1,250,000,000 for advanced coal-
                        based generation technology projects the 
                        application for which is submitted during the 
                        period described in paragraph (2)(A)(ii).''.
            (2) Application period for additional projects.--
        Subparagraph (A) of section 48A(d)(2) is amended to read as 
        follows:
                    ``(A) Application period.--Each applicant for 
                certification under this paragraph shall submit an 
                application meeting the requirements of subparagraph 
                (B). An applicant may only submit an application--
                            ``(i) for an allocation from the dollar 
                        amount specified in clause (i) or (ii) of 
                        paragraph (3)(B) during the 3-year period 
                        beginning on the date the Secretary establishes 
                        the program under paragraph (1), and
                            ``(ii) for an allocation from the dollar 
                        amount specified in paragraph (3)(B)(iii) 
                        during the 3-year period beginning at the 
                        earlier of the termination of the period 
                        described in clause (i) or the date prescribed 
                        by the Secretary.''.
            (3) Capture and sequestration of carbon dioxide emissions 
        requirement.--
                    (A) In general.--Section 48A(e)(1) is amended by 
                striking ``and'' at the end of subparagraph (E), by 
                striking the period at the end of subparagraph (F) and 
                inserting ``; and'', and by adding at the end the 
                following new subparagraph:
                    ``(G) in the case of any project the application 
                for which is submitted during the period described in 
                subsection (d)(2)(A)(ii), the project includes 
                equipment which separates and sequesters at least 65 
                percent (70 percent in the case of an application for 
                reallocated credits under subsection (d)(4)) of such 
                project's total carbon dioxide emissions.''.
                    (B) Highest priority for projects which sequester 
                carbon dioxide emissions.--Section 48A(e)(3) is amended 
                by striking ``and'' at the end of subparagraph 
                (A)(iii), by striking the period at the end of 
                subparagraph (B)(iii) and inserting ``, and'', and by 
                adding at the end the following new subparagraph:
                    ``(C) give highest priority to projects with the 
                greatest separation and sequestration percentage of 
                total carbon dioxide emissions.''.
                    (C) Recapture of credit for failure to sequester.--
                Section 48A is amended by adding at the end the 
                following new subsection:
    ``(h) Recapture of Credit for Failure To Sequester.--The Secretary 
shall provide for recapturing the benefit of any credit allowable under 
subsection (a) with respect to any project which fails to attain or 
maintain the separation and sequestration requirements of subsection 
(e)(1)(G).''.
            (4) Additional priority for research partnerships.--Section 
        48A(e)(3)(B), as amended by paragraph (3)(B), is amended--
                    (A) by striking ``and'' at the end of clause (ii),
                    (B) by redesignating clause (iii) as clause (iv), 
                and
                    (C) by inserting after clause (ii) the following 
                new clause:
                            ``(iii) applicant participants who have a 
                        research partnership with an eligible 
                        educational institution (as defined in section 
                        529(e)(5)), and''.
            (5) Clerical amendment.--Section 48A(e)(3) is amended by 
        striking ``integrated gasification combined cycle'' in the 
        heading and inserting ``certain''.
    (d) Competitive Certification Awards Modification Authority.--
Section 48A, as amended by subsection (c)(3), is amended by adding at 
the end the following new subsection:
    ``(i) Competitive Certification Awards Modification Authority.--In 
implementing this section or section 48B, the Secretary is directed to 
modify the terms of any competitive certification award and any 
associated closing agreement where such modification--
            ``(1) is consistent with the objectives of such section,
            ``(2) is requested by the recipient of the competitive 
        certification award, and
            ``(3) involves moving the project site to improve the 
        potential to capture and sequester carbon dioxide emissions, 
        reduce costs of transporting feedstock, and serve a broader 
        customer base,
unless the Secretary determines that the dollar amount of tax credits 
available to the taxpayer under such section would increase as a result 
of the modification or such modification would result in such project 
not being originally certified. In considering any such modification, 
the Secretary shall consult with other relevant Federal agencies, 
including the Department of Energy.''.
    (e) Disclosure of Allocations.--Section 48A(d) is amended by adding 
at the end the following new paragraph:
            ``(5) Disclosure of allocations.--The Secretary shall, upon 
        making a certification under this subsection or section 48B(d), 
        publicly disclose the identity of the applicant and the amount 
        of the credit certified with respect to such applicant.''.
    (f) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        credits the application for which is submitted during the 
        period described in section 48A(d)(2)(A)(ii) of the Internal 
        Revenue Code of 1986 and which are allocated or reallocated 
        after the date of the enactment of this Act.
            (2) Competitive certification awards modification 
        authority.--The amendment made by subsection (d) shall take 
        effect on the date of the enactment of this Act and is 
        applicable to all competitive certification awards entered into 
        under section 48A or 48B of the Internal Revenue Code of 1986, 
        whether such awards were issued before, on, or after such date 
        of enactment.
            (3) Disclosure of allocations.--The amendment made by 
        subsection (e) shall apply to certifications made after the 
        date of the enactment of this Act.
            (4) Clerical amendment.--The amendment made by subsection 
        (c)(5) shall take effect as if included in the amendment made 
        by section 1307(b) of the Energy Tax Incentives Act of 2005.

SEC. 712. EXPANSION AND MODIFICATION OF COAL GASIFICATION INVESTMENT 
              CREDIT.

    (a) Modification of Credit Amount.--Section 48B(a) is amended by 
inserting ``(30 percent in the case of credits allocated under 
subsection (d)(1)(B))'' after ``20 percent''.
    (b) Expansion of Aggregate Credits.--Section 48B(d)(1) is amended 
by striking ``shall not exceed $350,000,000'' and all that follows and 
inserting ``shall not exceed--
                    ``(A) $350,000,000, plus
                    ``(B) $250,000,000 for qualifying gasification 
                projects that include equipment which separates and 
                sequesters at least 75 percent of such project's total 
                carbon dioxide emissions.''.
    (c) Recapture of Credit for Failure To Sequester.--Section 48B is 
amended by adding at the end the following new subsection:
    ``(f) Recapture of Credit for Failure To Sequester.--The Secretary 
shall provide for recapturing the benefit of any credit allowable under 
subsection (a) with respect to any project which fails to attain or 
maintain the separation and sequestration requirements for such project 
under subsection (d)(1).''.
    (d) Selection Priorities.--Section 48B(d) is amended by adding at 
the end the following new paragraph:
            ``(4) Selection priorities.--In determining which 
        qualifying gasification projects to certify under this section, 
        the Secretary shall--
                    ``(A) give highest priority to projects with the 
                greatest separation and sequestration percentage of 
                total carbon dioxide emissions, and
                    ``(B) give high priority to applicant participants 
                who have a research partnership with an eligible 
                educational institution (as defined in section 
                529(e)(5)).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to credits described in section 48B(d)(1)(B) of the Internal 
Revenue Code of 1986 which are allocated or reallocated after the date 
of the enactment of this Act.

SEC. 713. TEMPORARY INCREASE IN COAL EXCISE TAX.

    Paragraph (2) of section 4121(e) is amended--
            (1) by striking ``January 1, 2014'' in subparagraph (A) and 
        inserting ``December 31, 2018'', and
            (2) by striking ``January 1 after 1981'' in subparagraph 
        (B) and inserting ``December 31 after 2007''.

SEC. 714. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO CERTAIN 
              COAL PRODUCERS AND EXPORTERS.

    (a) Refund.--
            (1) Coal producers.--
                    (A) In general.--Notwithstanding subsections (a)(1) 
                and (c) of section 6416 and section 6511 of the 
                Internal Revenue Code of 1986, if--
                            (i) a coal producer establishes that such 
                        coal producer, or a party related to such coal 
                        producer, exported coal produced by such coal 
                        producer to a foreign country or shipped coal 
                        produced by such coal producer to a possession 
                        of the United States, or caused such coal to be 
                        exported or shipped, the export or shipment of 
                        which was other than through an exporter who 
                        meets the requirements of paragraph (2),
                            (ii) such coal producer filed an excise tax 
                        return on or after October 1, 1990, and on or 
                        before the date of the enactment of this Act, 
                        and
                            (iii) such coal producer files a claim for 
                        refund with the Secretary not later than the 
                        close of the 30-day period beginning on the 
                        date of the enactment of this Act,
                then the Secretary shall pay to such coal producer an 
                amount equal to the tax paid under section 4121 of such 
                Code on such coal exported or shipped by the coal 
                producer or a party related to such coal producer, or 
                caused by the coal producer or a party related to such 
                coal producer to be exported or shipped.
                    (B) Special rules for certain taxpayers.--For 
                purposes of this section--
                            (i) In general.--If a coal producer or a 
                        party related to a coal producer has received a 
                        judgment described in clause (iii), such coal 
                        producer shall be deemed to have established 
                        the export of coal to a foreign country or 
                        shipment of coal to a possession of the United 
                        States under subparagraph (A)(i).
                            (ii) Amount of payment.--If a taxpayer 
                        described in clause (i) is entitled to a 
                        payment under subparagraph (A), the amount of 
                        such payment shall be reduced by any amount 
                        paid pursuant to the judgment described in 
                        clause (iii).
                            (iii) Judgment described.--A judgment is 
                        described in this subparagraph if such 
                        judgment--
                                    (I) is made by a court of competent 
                                jurisdiction within the United States,
                                    (II) relates to the 
                                constitutionality of any tax paid on 
                                exported coal under section 4121 of the 
                                Internal Revenue Code of 1986, and
                                    (III) is in favor of the coal 
                                producer or the party related to the 
                                coal producer.
            (2) Exporters.--Notwithstanding subsections (a)(1) and (c) 
        of section 6416 and section 6511 of the Internal Revenue Code 
        of 1986, and a judgment described in paragraph (1)(B)(iii) of 
        this subsection, if--
                    (A) an exporter establishes that such exporter 
                exported coal to a foreign country or shipped coal to a 
                possession of the United States, or caused such coal to 
                be so exported or shipped,
                    (B) such exporter filed a tax return on or after 
                October 1, 1990, and on or before the date of the 
                enactment of this Act, and
                    (C) such exporter files a claim for refund with the 
                Secretary not later than the close of the 30-day period 
                beginning on the date of the enactment of this Act,
        then the Secretary shall pay to such exporter an amount equal 
        to $0.825 per ton of such coal exported by the exporter or 
        caused to be exported or shipped, or caused to be exported or 
        shipped, by the exporter.
    (b) Limitations.--Subsection (a) shall not apply with respect to 
exported coal if a settlement with the Federal Government has been made 
with and accepted by, the coal producer, a party related to such coal 
producer, or the exporter, of such coal, as of the date that the claim 
is filed under this section with respect to such exported coal. For 
purposes of this subsection, the term ``settlement with the Federal 
Government'' shall not include any settlement or stipulation entered 
into as of the date of the enactment of this Act, the terms of which 
contemplate a judgment concerning which any party has reserved the 
right to file an appeal, or has filed an appeal.
    (c) Subsequent Refund Prohibited.--No refund shall be made under 
this section to the extent that a credit or refund of such tax on such 
exported or shipped coal has been paid to any person.
    (d) Definitions.--For purposes of this section--
            (1) Coal producer.--The term ``coal producer'' means the 
        person in whom is vested ownership of the coal immediately 
        after the coal is severed from the ground, without regard to 
        the existence of any contractual arrangement for the sale or 
        other disposition of the coal or the payment of any royalties 
        between the producer and third parties. The term includes any 
        person who extracts coal from coal waste refuse piles or from 
        the silt waste product which results from the wet washing (or 
        similar processing) of coal.
            (2) Exporter.--The term ``exporter'' means a person, other 
        than a coal producer, who does not have a contract, fee 
        arrangement, or any other agreement with a producer or seller 
        of such coal to export or ship such coal to a third party on 
        behalf of the producer or seller of such coal and--
                    (A) is indicated in the shipper's export 
                declaration or other documentation as the exporter of 
                record, or
                    (B) actually exported such coal to a foreign 
                country or shipped such coal to a possession of the 
                United States, or caused such coal to be so exported or 
                shipped.
            (3) Related party.--The term ``a party related to such coal 
        producer'' means a person who--
                    (A) is related to such coal producer through any 
                degree of common management, stock ownership, or voting 
                control,
                    (B) is related (within the meaning of section 
                144(a)(3) of the Internal Revenue Code of 1986) to such 
                coal producer, or
                    (C) has a contract, fee arrangement, or any other 
                agreement with such coal producer to sell such coal to 
                a third party on behalf of such coal producer.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Treasury or the Secretary's designee.
    (e) Timing of Refund.--With respect to any claim for refund filed 
pursuant to this section, the Secretary shall determine whether the 
requirements of this section are met not later than 180 days after such 
claim is filed. If the Secretary determines that the requirements of 
this section are met, the claim for refund shall be paid not later than 
180 days after the Secretary makes such determination.
    (f) Interest.--Any refund paid pursuant to this section shall be 
paid by the Secretary with interest from the date of overpayment 
determined by using the overpayment rate and method under section 6621 
of the Internal Revenue Code of 1986.
    (g) Denial of Double Benefit.--The payment under subsection (a) 
with respect to any coal shall not exceed--
            (1) in the case of a payment to a coal producer, the amount 
        of tax paid under section 4121 of the Internal Revenue Code of 
        1986 with respect to such coal by such coal producer or a party 
        related to such coal producer, and
            (2) in the case of a payment to an exporter, an amount 
        equal to $0.825 per ton with respect to such coal exported by 
        the exporter or caused to be exported by the exporter.
    (h) Application of Section.--This section applies only to claims on 
coal exported or shipped on or after October 1, 1990, through the date 
of the enactment of this Act.
    (i) Standing Not Conferred.--
            (1) Exporters.--With respect to exporters, this section 
        shall not confer standing upon an exporter to commence, or 
        intervene in, any judicial or administrative proceeding 
        concerning a claim for refund by a coal producer of any Federal 
        or State tax, fee, or royalty paid by the coal producer.
            (2) Coal producers.--With respect to coal producers, this 
        section shall not confer standing upon a coal producer to 
        commence, or intervene in, any judicial or administrative 
        proceeding concerning a claim for refund by an exporter of any 
        Federal or State tax, fee, or royalty paid by the producer and 
        alleged to have been passed on to an exporter.

SEC. 715. CARBON AUDIT OF THE TAX CODE.

    (a) Study.--The Secretary of the Treasury shall enter into an 
agreement with the National Academy of Sciences to undertake a 
comprehensive review of the Internal Revenue Code of 1986 to identify 
the types of and specific tax provisions that have the largest effects 
on carbon and other greenhouse gas emissions and to estimate the 
magnitude of those effects.
    (b) Report.--Not later than 2 years after the date of enactment of 
this Act, the National Academy of Sciences shall submit to Congress a 
report containing the results of study authorized under this section.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,500,000 for the period of 
fiscal years 2008 and 2009.

    Subtitle B--Transportation and Domestic Fuel Security Provisions

SEC. 721. INCLUSION OF CELLULOSIC BIOFUEL IN BONUS DEPRECIATION FOR 
              BIOMASS ETHANOL PLANT PROPERTY.

    (a) In General.--Paragraph (3) of section 168(l) is amended to read 
as follows:
            ``(3) Cellulosic biofuel.--The term `cellulosic biofuel' 
        means any liquid fuel which is produced from any 
        lignocellulosic or hemicellulosic matter that is available on a 
        renewable or recurring basis.''.
    (b) Conforming Amendments.--Subsection (l) of section 168 is 
amended--
            (1) by striking ``cellulosic biomass ethanol'' each place 
        it appears and inserting ``cellulosic biofuel'',
            (2) by striking ``Cellulosic Biomass Ethanol'' in the 
        heading of such subsection and inserting ``Cellulosic 
        Biofuel'', and
            (3) by striking ``cellulosic biomass ethanol'' in the 
        heading of paragraph (2) thereof and inserting ``cellulosic 
        biofuel''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 722. CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are 
each amended by striking ``December 31, 2008'' and inserting ``December 
31, 2009''.
    (b) Increase in Rate of Credit.--
            (1) Income tax credit.--Paragraphs (1)(A) and (2)(A) of 
        section 40A(b) are each amended by striking ``50 cents'' and 
        inserting ``$1.00''.
            (2) Excise tax credit.--Paragraph (2) of section 6426(c) is 
        amended to read as follows:
            ``(2) Applicable amount.--For purposes of this subsection, 
        the applicable amount is $1.00.''.
            (3) Conforming amendments.--
                    (A) Subsection (b) of section 40A is amended by 
                striking paragraph (3) and by redesignating paragraphs 
                (4) and (5) as paragraphs (3) and (4), respectively.
                    (B) Paragraph (2) of section 40A(f) is amended to 
                read as follows:
            ``(2) Exception.--Subsection (b)(4) shall not apply with 
        respect to renewable diesel.''.
                    (C) Paragraphs (2) and (3) of section 40A(e) are 
                each amended by striking ``subsection (b)(5)(C)'' and 
                inserting ``subsection (b)(4)(C)''.
                    (D) Clause (ii) of section 40A(d)(3)(C) is amended 
                by striking ``subsection (b)(5)(B)'' and inserting 
                ``subsection (b)(4)(B)''.
    (c) Uniform Treatment of Diesel Produced From Biomass.--Paragraph 
(3) of section 40A(f) is amended--
            (1) by striking ``diesel fuel'' and inserting ``liquid 
        fuel'',
            (2) by striking ``using a thermal depolymerization 
        process'', and
            (3) by striking ``or D396'' in subparagraph (B) and 
        inserting ``, D396, or other equivalent standard approved by 
        the Secretary''.
    (d) Coproduction of Renewable Diesel With Petroleum Feedstock.--
            (1) In general.--Paragraph (3) of section 40A(f) (defining 
        renewable diesel) is amended by adding at the end the following 
        flush sentence:
        ``Such term does not include any fuel derived from coprocessing 
        biomass with a feedstock which is not biomass. For purposes of 
        this paragraph, the term `biomass' has the meaning given such 
        term by section 45K(c)(3).''.
            (2) Conforming amendment.--Paragraph (3) of section 40A(f) 
        is amended by striking ``(as defined in section 45K(c)(3))''.
    (e) Eligibility of Certain Aviation Fuel.--Paragraph (3) of section 
40A(f) (defining renewable diesel) is amended by adding at the end the 
following: ``The term `renewable diesel' also means fuel derived from 
biomass which meets the requirements of a Department of Defense 
specification for military jet fuel or an American Society of Testing 
and Materials specification for aviation turbine fuel.''
    (f) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        fuel produced, and sold or used, after December 31, 2008.
            (2) Coproduction of renewable diesel with petroleum 
        feedstock.--The amendments made by subsection (c) shall apply 
        to fuel produced, and sold or used, after February 13, 2008.

SEC. 723. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO PROVIDE 
              AN INCENTIVE FOR UNITED STATES PRODUCTION.

    (a) Alcohol Fuels Credit.--Subsection (d) of section 40 is amended 
by adding at the end the following new paragraph:
            ``(6) Limitation to alcohol with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any alcohol which is produced outside the United 
        States for use as a fuel outside the United States. For 
        purposes of this paragraph, the term `United States' includes 
        any possession of the United States.''.
    (b) Biodiesel Fuels Credit.--Subsection (d) of section 40A is 
amended by adding at the end the following new paragraph:
            ``(5) Limitation to biodiesel with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any biodiesel which is produced outside the United 
        States for use as a fuel outside the United States. For 
        purposes of this paragraph, the term `United States' includes 
        any possession of the United States.''.
    (c) Excise Tax Credit.--
            (1) In general.--Section 6426 is amended by adding at the 
        end the following new subsection:
    ``(i) Limitation to Fuels With Connection to the United States.--
            ``(1) Alcohol.--No credit shall be determined under this 
        section with respect to any alcohol which is produced outside 
        the United States for use as a fuel outside the United States.
            ``(2) Biodiesel and alternative fuels.--No credit shall be 
        determined under this section with respect to any biodiesel or 
        alternative fuel which is produced outside the United States 
        for use as a fuel outside the United States.
For purposes of this subsection, the term `United States' includes any 
possession of the United States.''.
            (2) Conforming amendment.--Subsection (e) of section 6427 
        is amended by redesignating paragraph (5) as paragraph (6) and 
        by inserting after paragraph (4) the following new paragraph:
            ``(5) Limitation to fuels with connection to the united 
        states.--No amount shall be payable under paragraph (1) or (2) 
        with respect to any mixture or alternative fuel if credit is 
        not allowed with respect to such mixture or alternative fuel by 
        reason of section 6426(i).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to claims for credit or payment made on or after May 15, 2008.

SEC. 724. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
              VEHICLES.

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

``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of the credit amounts determined under subsection (b) 
with respect to each new qualified plug-in electric drive motor vehicle 
placed in service by the taxpayer during the taxable year.
    ``(b) Per Vehicle Dollar Limitation.--
            ``(1) In general.--The amount determined under this 
        subsection with respect to any new qualified plug-in electric 
        drive motor vehicle is the sum of the amounts determined under 
        paragraphs (2) and (3) with respect to such vehicle.
            ``(2) Base amount.--The amount determined under this 
        paragraph is $3,000.
            ``(3) Battery capacity.--In the case of a vehicle which 
        draws propulsion energy from a battery with not less than 5 
        kilowatt hours of capacity, the amount determined under this 
        paragraph is $200, plus $200 for each kilowatt hour of capacity 
        in excess of 5 kilowatt hours. The amount determined under this 
        paragraph shall not exceed $2,000.
    ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this title, the 
                credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1)) 
                shall be treated as a credit allowable under subpart A 
                for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subsection (a) for 
                any taxable year (determined after application of 
                paragraph (1)) shall not exceed the excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section and 
                        sections 23 and 25D) and section 27 for the 
                        taxable year.
    ``(d) New Qualified Plug-In Electric Drive Motor Vehicle.--For 
purposes of this section--
            ``(1) In general.--The term `new qualified plug-in electric 
        drive motor vehicle' means a motor vehicle (as defined in 
        section 30(c)(2))--
                    ``(A) the original use of which commences with the 
                taxpayer,
                    ``(B) which is acquired for use or lease by the 
                taxpayer and not for resale,
                    ``(C) which is made by a manufacturer,
                    ``(D) which has a gross vehicle weight rating of 
                less than 14,000 pounds,
                    ``(E) which has received a certificate of 
                conformity under the Clean Air Act and 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, 
                and
                    ``(F) which is propelled to a significant extent by 
                an electric motor which draws electricity from a 
                battery which--
                            ``(i) has a capacity of not less than 4 
                        kilowatt hours, and
                            ``(ii) is capable of being recharged from 
                        an external source of electricity.
            ``(2) Exception.--The term `new qualified plug-in electric 
        drive motor vehicle' shall not include any vehicle which is not 
        a passenger automobile or light truck if such vehicle has a 
        gross vehicle weight rating of less than 8,500 pounds.
            ``(3) Other terms.--The terms `passenger automobile', 
        `light truck', and `manufacturer' have the meanings given such 
        terms in regulations prescribed by the Administrator of the 
        Environmental Protection Agency for purposes of the 
        administration of title II of the Clean Air Act (42 U.S.C. 7521 
        et seq.).
            ``(4) Battery capacity.--The term `capacity' means, with 
        respect to any battery, the quantity of electricity which the 
        battery is capable of storing, expressed in kilowatt hours, as 
        measured from a 100 percent state of charge to a 0 percent 
        state of charge.
    ``(e) Limitation on Number of New Qualified Plug-In Electric Drive 
Motor Vehicles Eligible for Credit.--
            ``(1) In general.--In the case of a new qualified plug-in 
        electric drive motor vehicle sold during the phaseout period, 
        only the applicable percentage of the credit otherwise 
        allowable under subsection (a) shall be allowed.
            ``(2) Phaseout period.--For purposes of this subsection, 
        the phaseout period is the period beginning with the second 
        calendar quarter following the calendar quarter which includes 
        the first date on which the number of new qualified plug-in 
        electric drive motor vehicles manufactured by the manufacturer 
        of the vehicle referred to in paragraph (1) sold for use in the 
        United States after the date of the enactment of this section, 
        is at least 60,000.
            ``(3) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage is--
                    ``(A) 50 percent for the first 2 calendar quarters 
                of the phaseout period,
                    ``(B) 25 percent for the 3d and 4th calendar 
                quarters of the phaseout period, and
                    ``(C) 0 percent for each calendar quarter 
                thereafter.
            ``(4) Controlled groups.--Rules similar to the rules of 
        section 30B(f)(4) shall apply for purposes of this subsection.
    ``(f) Special Rules.--
            ``(1) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit (determined without regard to 
        subsection (c)).
            ``(2) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit.
            ``(3) Property used outside united states, etc., not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b)(1) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(4) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects to not have this section apply to such vehicle.
            ``(5) Property used by tax-exempt entity; interaction with 
        air quality and motor vehicle safety standards.--Rules similar 
        to the rules of paragraphs (6) and (10) of section 30B(h) shall 
        apply for purposes of this section.''.
    (b) Coordination With Alternative Motor Vehicle Credit.--Section 
30B(d)(3) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Exclusion of plug-in vehicles.--Any vehicle 
                with respect to which a credit is allowable under 
                section 30D (determined without regard to subsection 
                (c) thereof) shall not be taken into account under this 
                section.''.
    (c) Credit Made Part of General Business Credit.--Section 38(b) is 
amended--
            (1) by striking ``and'' each place it appears at the end of 
        any paragraph,
            (2) by striking ``plus'' each place it appears at the end 
        of any paragraph,
            (3) by striking the period at the end of paragraph (31) and 
        inserting ``, plus'', and
            (4) by adding at the end the following new paragraph:
            ``(32) the portion of the new qualified plug-in electric 
        drive motor vehicle credit to which section 30D(c)(1) 
        applies.''.
    (d) Conforming Amendments.--
            (1)(A) Section 24(b)(3)(B), as amended by section 704, is 
        amended by striking ``and 25D'' and inserting ``25D, and 30D''.
            (B) Section 25(e)(1)(C)(ii) is amended by inserting 
        ``30D,'' after ``25D,''.
            (C) Section 25B(g)(2), as amended by section 704, is 
        amended by striking ``and 25D'' and inserting ``, 25D, and 
        30D''.
            (D) Section 26(a)(1), as amended by section 704, is amended 
        by striking ``and 25D'' and inserting ``25D, and 30D''.
            (E) Section 1400C(d)(2) is amended by striking ``and 25D'' 
        and inserting ``25D, and 30D''.
            (2) Section 1016(a) is amended by striking ``and'' at the 
        end of paragraph (35), by striking the period at the end of 
        paragraph (36) and inserting ``, and'', and by adding at the 
        end the following new paragraph:
            ``(37) to the extent provided in section 30D(f)(1).''.
            (3) Section 6501(m) is amended by inserting ``30D(f)(4),'' 
        after ``30C(e)(5),''.
            (4) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 30D. New qualified plug-in electric drive motor vehicles.''.
    (e) Treatment of Alternative Motor Vehicle Credit as a Personal 
Credit.--
            (1) In general.--Paragraph (2) of section 30B(g) is amended 
        to read as follows:
            ``(2) Personal credit.--The credit allowed under subsection 
        (a) for any taxable year (after application of paragraph (1)) 
        shall be treated as a credit allowable under subpart A for such 
        taxable year.''.
            (2) Conforming amendments.--
                    (A) Subparagraph (A) of section 30C(d)(2) is 
                amended by striking ``sections 27, 30, and 30B'' and 
                inserting ``sections 27 and 30''.
                    (B) Paragraph (3) of section 55(c) is amended by 
                striking ``30B(g)(2),''.
    (f) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years beginning after December 31, 2008.
            (2) Treatment of alternative motor vehicle credit as 
        personal credit.--The amendments made by subsection (e) shall 
        apply to taxable years beginning after December 31, 2007.
    (g) Application of EGTRRA Sunset.--The amendment made by subsection 
(d)(1)(A) shall be subject to title IX of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 in the same manner as the provision 
of such Act to which such amendment relates.

SEC. 725. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION UNITS AND 
              ADVANCED INSULATION.

    (a) In General.--Section 4053 is amended by adding at the end the 
following new paragraphs:
            ``(9) Idling reduction device.--Any device or system of 
        devices which--
                    ``(A) is designed to provide to a vehicle those 
                services (such as heat, air conditioning, or 
                electricity) that would otherwise require the operation 
                of the main drive engine while the vehicle is 
                temporarily parked or remains stationary using one or 
                more devices affixed to a tractor, and
                    ``(B) is certified by the Secretary of Energy, in 
                consultation with the Administrator of the 
                Environmental Protection Agency and the Secretary of 
                Transportation, to reduce idling of such vehicle at a 
                motor vehicle rest stop or other location where such 
                vehicles are temporarily parked or remain stationary.
            ``(10) Advanced insulation.--Any insulation that has an R 
        value of not less than R35 per inch.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales or installations after the date of the enactment of this Act.

SEC. 726. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.

    (a) In General.--Part I of subchapter Y of chapter 1 is amended by 
redesignating section 1400L as section 1400K and by adding at the end 
the following new section:

``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.

    ``(a) In General.--In the case of a New York Liberty Zone 
governmental unit, there shall be allowed as a credit against any taxes 
imposed for any payroll period by section 3402 for which such 
governmental unit is liable under section 3403 an amount equal to so 
much of the portion of the qualifying project expenditure amount 
allocated under subsection (b)(3) to such governmental unit for the 
calendar year as is allocated by such governmental unit to such period 
under subsection (b)(4).
    ``(b) Qualifying Project Expenditure Amount.--For purposes of this 
section--
            ``(1) In general.--The term `qualifying project expenditure 
        amount' means, with respect to any calendar year, the sum of--
                    ``(A) the total expenditures paid or incurred 
                during such calendar year by all New York Liberty Zone 
                governmental units and the Port Authority of New York 
                and New Jersey for any portion of qualifying projects 
                located wholly within the City of New York, New York, 
                and
                    ``(B) any such expenditures--
                            ``(i) paid or incurred in any preceding 
                        calendar year which begins after the date of 
                        enactment of this section, and
                            ``(ii) not previously allocated under 
                        paragraph (3).
            ``(2) Qualifying project.--The term `qualifying project' 
        means any transportation infrastructure project, including 
        highways, mass transit systems, railroads, airports, ports, and 
        waterways, in or connecting with the New York Liberty Zone (as 
        defined in section 1400K(h)), which is designated as a 
        qualifying project under this section jointly by the Governor 
        of the State of New York and the Mayor of the City of New York, 
        New York.
            ``(3) General allocation.--
                    ``(A) In general.--The Governor of the State of New 
                York and the Mayor of the City of New York, New York, 
                shall jointly allocate to each New York Liberty Zone 
                governmental unit the portion of the qualifying project 
                expenditure amount which may be taken into account by 
                such governmental unit under subsection (a) for any 
                calendar year in the credit period.
                    ``(B) Aggregate limit.--The aggregate amount which 
                may be allocated under subparagraph (A) for all 
                calendar years in the credit period shall not exceed 
                $2,000,000,000.
                    ``(C) Annual limit.--The aggregate amount which may 
                be allocated under subparagraph (A) for any calendar 
                year in the credit period shall not exceed the sum of--
                            ``(i) $115,000,000 ($425,000,000 in the 
                        case of the last 2 years in the credit period), 
                        plus
                            ``(ii) the aggregate amount authorized to 
                        be allocated under this paragraph for all 
                        preceding calendar years in the credit period 
                        which was not so allocated.
                    ``(D) Unallocated amounts at end of credit 
                period.--If, as of the close of the credit period, the 
                amount under subparagraph (B) exceeds the aggregate 
                amount allocated under subparagraph (A) for all 
                calendar years in the credit period, the Governor of 
                the State of New York and the Mayor of the City of New 
                York, New York, may jointly allocate to New York 
                Liberty Zone governmental units for any calendar year 
                in the 5-year period following the credit period an 
                amount equal to--
                            ``(i) the lesser of--
                                    ``(I) such excess, or
                                    ``(II) the qualifying project 
                                expenditure amount for such calendar 
                                year, reduced by
                            ``(ii) the aggregate amount allocated under 
                        this subparagraph for all preceding calendar 
                        years.
            ``(4) Allocation to payroll periods.--Each New York Liberty 
        Zone governmental unit which has been allocated a portion of 
        the qualifying project expenditure amount under paragraph (3) 
        for a calendar year may allocate such portion to payroll 
        periods beginning in such calendar year as such governmental 
        unit determines appropriate.
    ``(c) Carryover of Unused Allocations.--
            ``(1) In general.--Except as provided in paragraph (2), if 
        the amount allocated under subsection (b)(3) to a New York 
        Liberty Zone governmental unit for any calendar year exceeds 
        the aggregate taxes imposed by section 3402 for which such 
        governmental unit is liable under section 3403 for periods 
        beginning in such year, such excess shall be carried to the 
        succeeding calendar year and added to the allocation of such 
        governmental unit for such succeeding calendar year.
            ``(2) Reallocation.--If a New York Liberty Zone 
        governmental unit does not use an amount allocated to it under 
        subsection (b)(3) within the time prescribed by the Governor of 
        the State of New York and the Mayor of the City of New York, 
        New York, then such amount shall after such time be treated for 
        purposes of subsection (b)(3) in the same manner as if it had 
        never been allocated.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Credit period.--The term `credit period' means the 
        12-year period beginning on January 1, 2009.
            ``(2) New york liberty zone governmental unit.--The term 
        `New York Liberty Zone governmental unit' means--
                    ``(A) the State of New York,
                    ``(B) the City of New York, New York, and
                    ``(C) any agency or instrumentality of such State 
                or City.
            ``(3) Treatment of funds.--Any expenditure for a qualifying 
        project taken into account for purposes of the credit under 
        this section shall be considered State and local funds for the 
        purpose of any Federal program.
            ``(4) Treatment of credit amounts for purposes of 
        withholding taxes.--For purposes of this title, a New York 
        Liberty Zone governmental unit shall be treated as having paid 
        to the Secretary, on the day on which wages are paid to 
        employees, an amount equal to the amount of the credit allowed 
        to such entity under subsection (a) with respect to such wages, 
        but only if such governmental unit deducts and withholds wages 
        for such payroll period under section 3401 (relating to wage 
        withholding).
    ``(e) Reporting.--The Governor of the State of New York and the 
Mayor of the City of New York, New York, shall jointly submit to the 
Secretary an annual report--
            ``(1) which certifies--
                    ``(A) the qualifying project expenditure amount for 
                the calendar year, and
                    ``(B) the amount allocated to each New York Liberty 
                Zone governmental unit under subsection (b)(3) for the 
                calendar year, and
            ``(2) includes such other information as the Secretary may 
        require to carry out this section.
    ``(f) Guidance.--The Secretary may prescribe such guidance as may 
be necessary or appropriate to ensure compliance with the purposes of 
this section.''.
    (b) Termination of Special Allowance and Expensing.--Subparagraph 
(A) of section 1400K(b)(2), as redesignated by subsection (a), is 
amended by striking the parenthetical therein and inserting ``(in the 
case of nonresidential real property and residential rental property, 
the date of the enactment of the Renewable Energy and Job Creation Act 
of 2008 or, if acquired pursuant to a binding contract in effect on 
such enactment date, December 31, 2009)''.
    (c) Conforming Amendments.--
            (1) Section 38(c)(3)(B) is amended by striking ``section 
        1400L(a)'' and inserting ``section 1400K(a)''.
            (2) Section 168(k)(2)(D)(ii) is amended by striking 
        ``section 1400L(c)(2)'' and inserting ``section 1400K(c)(2)''.
            (3) The table of sections for part I of subchapter Y of 
        chapter 1 is amended by redesignating the item relating to 
        section 1400L as an item relating to section 1400K and by 
        inserting after such item the following new item:

``Sec. 1400L. New York Liberty Zone tax credits.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 727. TRANSPORTATION FRINGE BENEFIT TO BICYCLE COMMUTERS.

    (a) In General.--Paragraph (1) of section 132(f) is amended by 
adding at the end the following:
                    ``(D) Any qualified bicycle commuting 
                reimbursement.''.
    (b) Limitation on Exclusion.--Paragraph (2) of section 132(f) is 
amended by striking ``and'' at the end of subparagraph (A), by striking 
the period at the end of subparagraph (B) and inserting ``, and'', and 
by adding at the end the following new subparagraph:
                    ``(C) the applicable annual limitation in the case 
                of any qualified bicycle commuting reimbursement.''.
    (c) Definitions.--Paragraph (5) of section 132(f) is amended by 
adding at the end the following:
                    ``(F) Definitions related to bicycle commuting 
                reimbursement.--
                            ``(i) Qualified bicycle commuting 
                        reimbursement.--The term `qualified bicycle 
                        commuting reimbursement' means, with respect to 
                        any calendar year, any employer reimbursement 
                        during the 15-month period beginning with the 
                        first day of such calendar year for reasonable 
                        expenses incurred by the employee during such 
                        calendar year for the purchase of a bicycle and 
                        bicycle improvements, repair, and storage, if 
                        such bicycle is regularly used for travel 
                        between the employee's residence and place of 
                        employment.
                            ``(ii) Applicable annual limitation.--The 
                        term `applicable annual limitation' means, with 
                        respect to any employee for any calendar year, 
                        the product of $20 multiplied by the number of 
                        qualified bicycle commuting months during such 
                        year.
                            ``(iii) Qualified bicycle commuting 
                        month.--The term `qualified bicycle commuting 
                        month' means, with respect to any employee, any 
                        month during which such employee--
                                    ``(I) regularly uses the bicycle 
                                for a substantial portion of the travel 
                                between the employee's residence and 
                                place of employment, and
                                    ``(II) does not receive any benefit 
                                described in subparagraph (A), (B), or 
                                (C) of paragraph (1).''.
    (d) Constructive Receipt of Benefit.--Paragraph (4) of section 
132(f) is amended by inserting ``(other than a qualified bicycle 
commuting reimbursement)'' after ``qualified transportation fringe''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 728. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

    (a) Increase in Credit Amount.--Section 30C is amended--
            (1) by striking ``30 percent'' in subsection (a) and 
        inserting ``50 percent'', and
            (2) by striking ``$30,000'' in subsection (b)(1) and 
        inserting ``$50,000''.
    (b) Extension of Credit.--Paragraph (2) of section 30C(g) is 
amended by striking ``December 31, 2009'' and inserting ``December 31, 
2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

       Subtitle C--Energy Conservation and Efficiency Provisions

SEC. 731. QUALIFIED ENERGY CONSERVATION BONDS.

    (a) In General.--Subpart I of part IV of subchapter A of chapter 1, 
as added by section 706, is amended by adding at the end the following 
new section:

``SEC. 54D. QUALIFIED ENERGY CONSERVATION BONDS.

    ``(a) Qualified Energy Conservation Bond.--For purposes of this 
subchapter, the term `qualified energy conservation bond' means any 
bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for one or more qualified conservation 
        purposes,
            ``(2) the bond is issued by a State or local government, 
        and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Reduced Credit Amount.--The annual credit determined under 
section 54A(b) with respect to any qualified energy conservation bond 
shall be 70 percent of the amount so determined without regard to this 
subsection.
    ``(c) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) by any issuer shall not exceed the limitation amount allocated to 
such issuer under subsection (e).
    ``(d) National Limitation on Amount of Bonds Designated.--There is 
a national qualified energy conservation bond limitation of 
$3,000,000,000.
    ``(e) Allocations.--
            ``(1) In general.--The limitation applicable under 
        subsection (d) shall be allocated by the Secretary among the 
        States in proportion to the population of the States.
            ``(2) Allocations to largest local governments.--
                    ``(A) In general.--In the case of any State in 
                which there is a large local government, each such 
                local government shall be allocated a portion of such 
                State's allocation which bears the same ratio to the 
                State's allocation (determined without regard to this 
                subparagraph) as the population of such large local 
                government bears to the population of such State.
                    ``(B) Allocation of unused limitation to state.--
                The amount allocated under this subsection to a large 
                local government may be reallocated by such local 
                government to the State in which such local government 
                is located.
                    ``(C) Large local government.--For purposes of this 
                section, the term `large local government' means any 
                municipality or county if such municipality or county 
                has a population of 100,000 or more.
            ``(3) Allocation to issuers; restriction on private 
        activity bonds.--Any allocation under this subsection to a 
        State or large local government shall be allocated by such 
        State or large local government to issuers within the State in 
        a manner that results in not less than 70 percent of the 
        allocation to such State or large local government being used 
        to designate bonds which are not private activity bonds.
    ``(f) Qualified Conservation Purpose.--For purposes of this 
section--
            ``(1) In general.--The term `qualified conservation 
        purpose' means any of the following:
                    ``(A) Capital expenditures incurred for purposes 
                of--
                            ``(i) reducing energy consumption in 
                        publicly-owned buildings by at least 20 
                        percent,
                            ``(ii) implementing green community 
                        programs,
                            ``(iii) rural development involving the 
                        production of electricity from renewable energy 
                        resources, or
                            ``(iv) any qualified facility (as 
                        determined under section 45(d) without regard 
                        to paragraphs (8) and (10) thereof and without 
                        regard to any placed in service date).
                    ``(B) Expenditures with respect to research 
                facilities, and research grants, to support research 
                in--
                            ``(i) development of cellulosic ethanol or 
                        other nonfossil fuels,
                            ``(ii) technologies for the capture and 
                        sequestration of carbon dioxide produced 
                        through the use of fossil fuels,
                            ``(iii) increasing the efficiency of 
                        existing technologies for producing nonfossil 
                        fuels,
                            ``(iv) automobile battery technologies and 
                        other technologies to reduce fossil fuel 
                        consumption in transportation, or
                            ``(v) technologies to reduce energy use in 
                        buildings.
                    ``(C) Mass commuting facilities and related 
                facilities that reduce the consumption of energy, 
                including expenditures to reduce pollution from 
                vehicles used for mass commuting.
                    ``(D) Demonstration projects designed to promote 
                the commercialization of--
                            ``(i) green building technology,
                            ``(ii) conversion of agricultural waste for 
                        use in the production of fuel or otherwise,
                            ``(iii) advanced battery manufacturing 
                        technologies,
                            ``(iv) technologies to reduce peak use of 
                        electricity, or
                            ``(v) technologies for the capture and 
                        sequestration of carbon dioxide emitted from 
                        combusting fossil fuels in order to produce 
                        electricity.
                    ``(E) Public education campaigns to promote energy 
                efficiency.
            ``(2) Special rules for private activity bonds.--For 
        purposes of this section, in the case of any private activity 
        bond, the term `qualified conservation purposes' shall not 
        include any expenditure which is not a capital expenditure.
    ``(g) Population.--
            ``(1) In general.--The population of any State or local 
        government shall be determined for purposes of this section as 
        provided in section 146(j) for the calendar year which includes 
        the date of the enactment of this section.
            ``(2) Special rule for counties.--In determining the 
        population of any county for purposes of this section, any 
        population of such county which is taken into account in 
        determining the population of any municipality which is a large 
        local government shall not be taken into account in determining 
        the population of such county.
    ``(h) Application to Indian Tribal Governments.--An Indian tribal 
government shall be treated for purposes of this section in the same 
manner as a large local government, except that--
            ``(1) an Indian tribal government shall be treated for 
        purposes of subsection (e) as located within a State to the 
        extent of so much of the population of such government as 
        resides within such State, and
            ``(2) any bond issued by an Indian tribal government shall 
        be treated as a qualified energy conservation bond only if 
        issued as part of an issue the available project proceeds of 
        which are used for purposes for which such Indian tribal 
        government could issue bonds to which section 103(a) 
        applies.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d), as added by section 
        706, is amended to read as follows:
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means--
                    ``(A) a qualified forestry conservation bond,
                    ``(B) a new clean renewable energy bond, or
                    ``(C) a qualified energy conservation bond,
        which is part of an issue that meets requirements of paragraphs 
        (2), (3), (4), (5), and (6).''.
            (2) Subparagraph (C) of section 54A(d)(2), as added by 
        section 706, is amended to read as follows:
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means--
                            ``(i) in the case of a qualified forestry 
                        conservation bond, a purpose specified in 
                        section 54B(e),
                            ``(ii) in the case of a new clean renewable 
                        energy bond, a purpose specified in section 
                        54C(a)(1), and
                            ``(iii) in the case of a qualified energy 
                        conservation bond, a purpose specified in 
                        section 54D(a)(1).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 54D. Qualified energy conservation bonds.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 732. CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    (a) Extension of Credit.--Section 25C(g) is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2008''.
    (b) Qualified Biomass Fuel Property.--
            (1) In general.--Section 25C(d)(3) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (D),
                    (B) by striking the period at the end of 
                subparagraph (E) and inserting ``, and'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(F) 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.''.
            (2) Biomass fuel.--Section 25C(d) is amended by adding at 
        the end the following new paragraph:
            ``(6) Biomass fuel.--The term `biomass fuel' 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.''.
    (c) Coordination With Credit for Qualified Geothermal Heat Pump 
Property Expenditures.--
            (1) In general.--Paragraph (3) of section 25C(d), as 
        amended by subsection (b), is amended by striking subparagraph 
        (C) and by redesignating subparagraphs (D), (E), and (F) as 
        subparagraphs (C), (D), and (E), respectively.
            (2) Conforming amendment.--Subparagraph (C) of section 
        25C(d)(2) is amended to read as follows:
                    ``(C) Requirements and standards for air 
                conditioners and heat pumps.--The standards and 
                requirements prescribed by the Secretary under 
                subparagraph (B) with respect to the energy efficiency 
                ratio (EER) for central air conditioners and electric 
                heat pumps--
                            ``(i) shall require measurements to be 
                        based on published data which is tested by 
                        manufacturers at 95 degrees Fahrenheit, and
                            ``(ii) may be based on the certified data 
                        of the Air Conditioning and Refrigeration 
                        Institute that are prepared in partnership with 
                        the Consortium for Energy Efficiency.''.
    (d) Effective Date.--The amendments made this section shall apply 
to expenditures made after December 31, 2007.

SEC. 733. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    Subsection (h) of section 179D is amended by striking ``December 
31, 2008'' and inserting ``December 31, 2013''.

SEC. 734. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR 
              APPLIANCES PRODUCED AFTER 2007.

    (a) In General.--Subsection (b) of section 45M is amended to read 
as follows:
    ``(b) Applicable Amount.--For purposes of subsection (a)--
            ``(1) Dishwashers.--The applicable amount is--
                    ``(A) $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
                    ``(B) $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).
            ``(2) Clothes washers.--The applicable amount is--
                    ``(A) $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,
                    ``(B) $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,
                    ``(C) $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
                    ``(D) $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.
            ``(3) Refrigerators.--The applicable amount is--
                    ``(A) $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,
                    ``(B) $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,
                    ``(C) $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
                    ``(D) $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.''.
    (b) Eligible Production.--
            (1) Similar treatment for all appliances.--Subsection (c) 
        of section 45M is amended--
                    (A) by striking paragraph (2),
                    (B) by striking ``(1) In general'' and all that 
                follows through ``the eligible'' and inserting ``The 
                eligible'',
                    (C) by moving the text of such subsection in line 
                with the subsection heading, and
                    (D) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively, and by moving 
                such paragraphs 2 ems to the left.
            (2) Modification of base period.--Paragraph (2) of section 
        45M(c), as amended by paragraph (1), is amended by striking 
        ``3-calendar year'' and inserting ``2-calendar year''.
    (c) Types of Energy Efficient Appliances.--Subsection (d) of 
section 45M (defining types of energy efficient appliances) is amended 
to read as follows:
    ``(d) Types of Energy Efficient Appliance.--For purposes of this 
section, the types of energy efficient appliances are--
            ``(1) dishwashers described in subsection (b)(1),
            ``(2) clothes washers described in subsection (b)(2), and
            ``(3) refrigerators described in subsection (b)(3).''.
    (d) Aggregate Credit Amount Allowed.--
            (1) Increase in limit.--Paragraph (1) of section 45M(e) is 
        amended to read as follows:
            ``(1) Aggregate credit amount allowed.--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.''.
            (2) Exception for certain refrigerator and clothes 
        washers.--Paragraph (2) of section 45M(e) is amended to read as 
        follows:
            ``(2) Amount allowed for certain refrigerators and clothes 
        washers.--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).''.
    (e) Qualified Energy Efficient Appliances.--
            (1) In general.--Paragraph (1) of section 45M(f) (defining 
        qualified energy efficient appliance) is amended to read as 
        follows:
            ``(1) Qualified energy efficient appliance.--The term 
        `qualified energy efficient appliance' means--
                    ``(A) any dishwasher described in subsection 
                (b)(1),
                    ``(B) any clothes washer described in subsection 
                (b)(2), and
                    ``(C) any refrigerator described in subsection 
                (b)(3).''.
            (2) Clothes washer.--Section 45M(f)(3) is amended by 
        inserting ``commercial'' before ``residential'' the second 
        place it appears.
            (3) Top-loading clothes washer.--Subsection (f) of section 
        45M 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:
            ``(4) Top-loading clothes washer.--The term `top-loading 
        clothes washer' 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.''.
            (4) Replacement of energy factor.--Section 45M(f)(6), as 
        redesignated by paragraph (3), is amended to read as follows:
            ``(6) Modified energy factor.--The term `modified energy 
        factor' means the modified energy factor established by the 
        Department of Energy for compliance with the Federal energy 
        conservation standard.''.
            (5) Gallons per cycle; water consumption factor.--Section 
        45M(f), as amended by paragraph (3), is amended by adding at 
        the end the following:
            ``(9) Gallons per cycle.--The term `gallons per cycle' 
        means, with respect to a dishwasher, the amount of water, 
        expressed in gallons, required to complete a normal cycle of a 
        dishwasher.
            ``(10) Water consumption factor.--The term `water 
        consumption factor' 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.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2007.

SEC. 735. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS 
              AND SMART GRID SYSTEMS.

    (a) In General.--Section 168(e)(3)(D) is amended by striking 
``and'' at the end of clause (i), by striking the period at the end of 
clause (ii) and inserting a comma, and by inserting after clause (ii) 
the following new clauses:
                            ``(iii) any qualified smart electric meter, 
                        and
                            ``(iv) any qualified smart electric grid 
                        system.''.
    (b) Definitions.--Section 168(i) is amended by inserting at the end 
the following new paragraph:
            ``(18) Qualified smart electric meters.--
                    ``(A) In general.--The term `qualified smart 
                electric meter' means any smart electric meter which is 
                placed in service by a taxpayer who is a supplier of 
                electric energy or a provider of electric energy 
                services.
                    ``(B) Smart electric meter.--For purposes of 
                subparagraph (A), the term `smart electric meter' means 
                any time-based meter and related communication 
                equipment which is capable of being used by the 
                taxpayer as part of a system that--
                            ``(i) measures and records electricity 
                        usage data on a time-differentiated basis in at 
                        least 24 separate time segments per day,
                            ``(ii) provides for the exchange of 
                        information between supplier or provider and 
                        the customer's electric meter in support of 
                        time-based rates or other forms of demand 
                        response,
                            ``(iii) provides data to such supplier or 
                        provider so that the supplier or provider can 
                        provide energy usage information to customers 
                        electronically, and
                            ``(iv) provides net metering.
            ``(19) Qualified smart electric grid systems.--
                    ``(A) In general.--The term `qualified smart 
                electric grid system' means any smart grid property 
                used as part of a system for electric distribution grid 
                communications, monitoring, and management placed in 
                service by a taxpayer who is a supplier of electric 
                energy or a provider of electric energy services.
                    ``(B) Smart grid property.--For the purposes of 
                subparagraph (A), the term `smart grid property' means 
                electronics and related equipment that is capable of--
                            ``(i) sensing, collecting, and monitoring 
                        data of or from all portions of a utility's 
                        electric distribution grid,
                            ``(ii) providing real-time, two-way 
                        communications to monitor or manage such grid, 
                        and
                            ``(iii) providing real time analysis of and 
                        event prediction based upon collected data that 
                        can be used to improve electric distribution 
                        system reliability, quality, and 
                        performance.''.
    (c) Continued Application of 150 Percent Declining Balance 
Method.--Paragraph (2) of section 168(b) is amended by striking ``or'' 
at the end of subparagraph (B), by redesignating subparagraph (C) as 
subparagraph (D), and by inserting after subparagraph (B) the following 
new subparagraph:
                    ``(C) any property (other than property described 
                in paragraph (3)) which is a qualified smart electric 
                meter or qualified smart electric grid system, or''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 736. QUALIFIED GREEN BUILDING AND SUSTAINABLE DESIGN PROJECTS.

    (a) In General.--Paragraph (8) of section 142(l) is amended by 
striking ``September 30, 2009'' and inserting ``September 30, 2012''.
    (b) Treatment of Current Refunding Bonds.--Paragraph (9) of section 
142(l) is amended by striking ``October 1, 2009'' and inserting 
``October 1, 2012''.
    (c) Accountability.--The second sentence of section 701(d) of the 
American Jobs Creation Act of 2004 is amended by striking ``issuance,'' 
and inserting ``issuance of the last issue with respect to such 
project,''.

                     Subtitle D--Revenue Provision

SEC. 741. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF INTEREST.

    (a) In General.--Paragraph (6) of section 864(f), as amended by the 
Housing Assistance Tax Act of 2008, is amended by striking ``December 
31, 2010'' and inserting ``December 31, 2018''.
    (b) Conforming Amendment.--Paragraph (5)(D) of section 864(f) is 
amended by striking ``December 31, 2008'' and inserting ``December 31, 
2018''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
                                 <all>