[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6899 Placed on Calendar Senate (PCS)]
Calendar No. 118
110th CONGRESS
2d Session
H. R. 6899
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 18 (legislative day, September 17), 2008
Received and read the first time
November 18, 2008
Read the second time and placed on the calendar under authority of the
order of the Senate of November 17 (legislative day, September 17),
2008
_______________________________________________________________________
AN ACT
To advance the national security interests of the United States by
reducing its dependency on oil through renewable and clean, alternative
fuel technologies while building a bridge to the future through
expanded access to Federal oil and natural gas resources, revising the
relationship between the oil and gas industry and the consumers who own
those resources and deserve a fair return from the development of
publicly owned oil and gas, ending tax subsidies for large oil and gas
companies, and facilitating energy efficiencies in the building,
housing, and transportation sectors, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Comprehensive American Energy
Security and Consumer Protection Act''.
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--FEDERAL OIL AND GAS LEASING
Subtitle A--Outer Continental Shelf Oil and Gas Leasing
Sec. 101. Prohibition on leasing.
Sec. 102. Opening of certain areas to oil and gas leasing.
Sec. 103. Coastal State roles and responsibilities.
Sec. 104. Protection of the environment and conservation of the natural
resources of the Outer Continental Shelf.
Sec. 105. Limitations.
Sec. 106. Prohibition on leasing in certain Federal protected areas.
Sec. 107. No effect on applicable law.
Sec. 108. Buy American requirements.
Sec. 109. Small, woman-owned, and minority-owned businesses.
Sec. 110. Definitions.
Subtitle B--Diligent Development of Federal Oil and Gas Leases
Sec. 121. Clarification.
Sec. 122. Covered provisions.
Sec. 123. Regulations.
Sec. 124. Resource estimates and leasing program management indicators.
Subtitle C--Royalties Under Offshore Oil and Gas Leases
Sec. 131. Short title.
Sec. 132. Price thresholds for royalty suspension provisions.
Sec. 133. Clarification of authority to impose price thresholds for
certain lease sales.
Sec. 134. Eligibility for new leases and the transfer of leases;
conservation of resources fees.
Sec. 135. Strategic Energy Efficiency and Renewables Reserve.
Subtitle D--Accountability and Integrity in the Federal Energy Program
Sec. 141. Royalty in-kind.
Sec. 142. Fair return on production of Federal oil and gas resources.
Sec. 143. Royalty-in-kind ethics.
Sec. 144. Prohibition on certain gifts.
Sec. 145. Strengthening the ability of the Interior Department
Inspector General to secure cooperation.
Subtitle E--Federal Oil and Gas Royalty Reform
Sec. 151. Amendments to definitions.
Sec. 152. Interest.
Sec. 153. Obligation period.
Sec. 154. Tolling agreements and subpoenas.
Sec. 155. Liability for royalty payments.
Subtitle F--National Petroleum Reserve in Alaska
Sec. 161. Short title.
Sec. 162. Acceleration of lease sales for National Petroleum Reserve in
Alaska.
Sec. 163. National Petroleum Reserve in Alaska: pipeline construction.
Sec. 164. Alaska natural gas pipeline project facilitation.
Sec. 165. Project labor agreements and other pipeline requirements.
Sec. 166. Ban on export of Alaskan oil.
Subtitle G--Oil Shale
Sec. 171. Oil shale leasing.
TITLE II--CONSUMER ENERGY SUPPLY
Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Sale and replacement of oil from the Strategic Petroleum
Reserve.
TITLE III--PUBLIC TRANSPORTATION
Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Grants to improve public transportation services.
Sec. 304. Increased Federal share for Clean Air Act compliance.
Sec. 305. Transportation fringe benefits.
Sec. 306. Capital cost of contracting vanpool pilot program.
Sec. 307. National consumer awareness program.
Sec. 308. Exception to alternative fuel procurement requirement.
TITLE IV--GREATER ENERGY EFFICIENCY IN BUILDING CODES
Sec. 401. Greater energy efficiency in building codes.
TITLE V--FEDERAL RENEWABLE ELECTRICITY STANDARD
Sec. 501. Federal renewable electricity standard.
TITLE VI--GREEN RESOURCES FOR ENERGY EFFICIENT NEIGHBORHOODS
Sec. 601. Short title and table of contents.
Sec. 602. Definitions.
Sec. 603. Implementation of energy efficiency participation incentives
for HUD programs.
Sec. 604. Minimum HUD energy efficiency standards and standards for
additional credit.
Sec. 605. Energy efficiency and conservation demonstration program for
multifamily housing projects assisted with
project-based rental assistance.
Sec. 606. Additional credit for Fannie Mae and Freddie Mac housing
goals for energy efficient mortgages.
Sec. 607. Duty to serve underserved markets for energy-efficient and
location-efficient mortgages.
Sec. 608. Consideration of energy efficiency under FHA mortgage
insurance programs and Native American and
Native Hawaiian loan guarantee programs.
Sec. 609. Energy efficient mortgages education and outreach campaign.
Sec. 610. Collection of information on energy-efficient and location
efficient mortgages through Home Mortgage
Disclosure Act.
Sec. 611. Ensuring availability of homeowners insurance for homes not
connected to electricity grid.
Sec. 612. Mortgage incentives for energy-efficient multifamily housing.
Sec. 613. Energy efficiency certifications for housing with mortgages
insured by FHA.
Sec. 614. Assisted housing energy loan pilot program.
Sec. 615. Residential energy efficiency block grant program.
Sec. 616. Including sustainable development in comprehensive housing
affordability strategies.
Sec. 617. Grant program to increase sustainable low-income community
development capacity.
Sec. 618. Utilization of energy performance contracts in HOPE VI.
Sec. 619. HOPE VI green developments requirement.
Sec. 620. Consideration of energy-efficiency improvements in
appraisals.
Sec. 621. Assistance for Housing Assistance Council.
Sec. 622. Rural housing and economic development assistance.
Sec. 623. Loans to States and Indian tribes to carry out renewable
energy sources activities.
Sec. 624. Green banking centers.
Sec. 625. Public housing energy cost report.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Alternative fuel pumps.
Sec. 702. National Energy Center of Excellence.
Sec. 703. Sense of Congress regarding renewable biomass.
TITLE VIII--ENERGY TAX INCENTIVES
Sec. 800. Short title, etc.
Subtitle A--Energy Production Incentives
Part 1--Renewable Energy Incentives
Sec. 801. Renewable energy credit.
Sec. 802. Production credit for electricity produced from marine
renewables.
Sec. 803. Energy credit.
Sec. 804. Credit for residential energy efficient property.
Sec. 805. Special rule to implement FERC and State electric
restructuring policy.
Sec. 806. New clean renewable energy bonds.
Part 2--Carbon Mitigation Provisions
Sec. 811. Expansion and modification of advanced coal project
investment credit.
Sec. 812. Expansion and modification of coal gasification investment
credit.
Sec. 813. Temporary increase in coal excise tax.
Sec. 814. Special rules for refund of the coal excise tax to certain
coal producers and exporters.
Sec. 815. Carbon audit of the tax code.
Subtitle B--Transportation and Domestic Fuel Security Provisions
Sec. 821. Inclusion of cellulosic biofuel in bonus depreciation for
biomass ethanol plant property.
Sec. 822. Credits for biodiesel and renewable diesel.
Sec. 823. Clarification that credits for fuel are designed to provide
an incentive for United States production.
Sec. 824. Credit for new qualified plug-in electric drive motor
vehicles.
Sec. 825. Exclusion from heavy truck tax for idling reduction units and
advanced insulation.
Sec. 826. Restructuring of New York Liberty Zone tax credits.
Sec. 827. Transportation fringe benefit to bicycle commuters.
Sec. 828. Alternative fuel vehicle refueling property credit.
Sec. 829. Energy security bonds.
Sec. 830. Certain income and gains relating to alcohol fuels and
mixtures, biodiesel fuels and mixtures, and
alternative fuels and mixtures treated as
qualifying income for publicly traded
partnerships.
Subtitle C--Energy Conservation and Efficiency Provisions
Sec. 841. Qualified energy conservation bonds.
Sec. 842. Credit for nonbusiness energy property.
Sec. 843. Energy efficient commercial buildings deduction.
Sec. 844. Modifications of energy efficient appliance credit for
appliances produced after 2007.
Sec. 845. Accelerated recovery period for depreciation of smart meters
and smart grid systems.
Sec. 846. Qualified green building and sustainable design projects.
Subtitle D--Revenue Provisions
Sec. 851. Limitation of deduction for income attributable to domestic
production of oil, gas, or primary products
thereof.
Sec. 852. Clarification of determination of foreign oil and gas
extraction income.
Sec. 853. Time for payment of corporate estimated taxes.
TITLE I--FEDERAL OIL AND GAS LEASING
Subtitle A--Outer Continental Shelf Oil and Gas Leasing
SEC. 101. PROHIBITION ON LEASING.
(a) Prohibition.--The Outer Continental Shelf Lands Act (43 U.S.C.
1331 et seq.) notwithstanding, the Secretary shall not take nor
authorize any action related to oil and gas preleasing or leasing of
any area of the Outer Continental Shelf that was not available for oil
and gas leasing as of July 1, 2008, unless that action is expressly
authorized by this subtitle or a statute enacted by Congress after the
date of enactment of this Act.
(b) Treatment of Areas in Gulf of Mexico.--For purposes of this
subtitle, such action with respect to an area referred to in section
104(a) of the Gulf of Mexico Energy Security Act of 2006 (title I of
division C of Public Law 109-432; 42 U.S.C. 1331 note) taken or
authorized after the period referred to in that section shall be
treated as authorized by this subtitle, and such leasing of such area
shall be treated as authorized under section 102(a).
SEC. 102. OPENING OF CERTAIN AREAS TO OIL AND GAS LEASING.
(a) Leasing Authorized.--The Secretary may offer for oil and gas
leasing, preleasing, or other related activities, in accordance with
this section and the Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.) and subject to subsection (b) of this section, section 103 of
this Act, and section 307 of the Coastal Zone Management Act of 1972
(16 U.S.C. 1456), any area--
(1) that is in any Outer Continental Shelf Planning Area in
the Atlantic Ocean or Pacific Ocean that is located farther
than 50 miles from the coastline; and
(2) that was not otherwise available for oil and gas
leasing, preleasing, and other related activities as of July 1,
2008.
(b) Inclusion in Leasing Program Required.--An area may be offered
for lease under this section only if it has been included in an Outer
Continental Shelf leasing program approved by the Secretary in
accordance with section 18 of the Outer Continental Shelf Lands Act (43
U.S.C. 1344).
(c) Requirement To Conduct Lease Sales.--As soon as practicable,
consistent with subsection (b) and section 103(a), but not later than 3
years after the date of enactment of this Act, and as appropriate
thereafter, the Secretary shall conduct oil and gas lease sales under
the Outer Continental Shelf lands Act (43 U.S.C. 1331 et seq.) for
areas that are made available for leasing by this section.
SEC. 103. COASTAL STATE ROLES AND RESPONSIBILITIES.
(a) State Approval of Certain Leasing Required.--The Secretary may
not conduct any oil and gas leasing or preleasing activity in any area
made available for oil and gas leasing by section 102(a) that is
located within 100 miles from the coastline and within the seaward
lateral boundaries of an adjacent State, unless the adjacent State has
enacted a law approving of the issuance of such leasing by the
Secretary.
(b) Consultation With Adjacent and Neighboring States.--
(1) In general.--In addition to the consultation provided
for under section 19 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1345), the Governor of a State that has a coastline
within 100 miles of an area of the Outer Continental Shelf
being considered for oil and gas leasing and made available for
such leasing by section 102(a) may submit recommendations to
the Secretary with respect to--
(A) the size, timing, or location of a proposed
lease sale; or
(B) a proposed development and production plan.
(2) Requirements.--Subsections (b), (c), and (d) of section
19 of the Outer Continental Shelf Lands Act (43 U.S.C. 1345)
shall apply to the recommendations provided for in paragraph
(1).
SEC. 104. PROTECTION OF THE ENVIRONMENT AND CONSERVATION OF THE NATURAL
RESOURCES OF THE OUTER CONTINENTAL SHELF.
The Secretary--
(1) shall ensure that any activity under this subtitle is
carried out in a manner that provides for the protection of the
coastal environment, marine environment, and human environment
of State coastal zones and the Outer Continental Shelf; and
(2) shall review all Federal regulations that are otherwise
applicable to activities authorized by this subtitle to ensure
environmentally sound oil and gas operations on the Outer
Continental Shelf.
SEC. 105. LIMITATIONS.
(a) Compliance With Memorandum.--Any oil and gas leasing of areas
of the Outer Continental Shelf shall be conducted in accordance with
the document entitled ``Memorandum of Agreement between the Department
of Defense and the Department of the Interior on Mutual Concerns On The
Outer Continental Shelf'' and dated July 2, 1983, and such revisions
thereto as may be agreed to by the Secretary of Defense and the
Secretary of the Interior; except that no such revisions may be made
prior to January 21, 2009.
(b) National Security.--Notwithstanding subsection (a), the United
States reserves the right to designate by and through the Secretary of
Defense, with the approval of the President, national defense areas on
the Outer Continental Shelf pursuant to section 12(d) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1341(d)).
SEC. 106. PROHIBITION ON LEASING IN CERTAIN FEDERAL PROTECTED AREAS.
(a) In General.--Notwithstanding any other provision of this or any
other Federal law, no lease or other authorization may be issued by the
Federal Government that authorizes exploration, development, or
production of oil or natural gas in--
(1) any marine national monument or national marine
sanctuary; or
(2) the fishing grounds known as Georges Bank in the waters
of the United States, which is one of the largest and
historically important fishing grounds of the United States.
(b) Identification of Coordinates of Georges Bank.--The Secretary
of Commerce, after publication of public notice and an opportunity for
public comment, shall identify the specific coordinates that delineate
Georges Bank in the waters of the United States for purposes of
subsection (a).
SEC. 107. NO EFFECT ON APPLICABLE LAW.
Except as otherwise specifically provided in this subtitle, nothing
in this subtitle waives or modifies any applicable environmental or
other law.
SEC. 108. BUY AMERICAN REQUIREMENTS.
(a) In General.--It is the intent of Congress that this Act, among
other things, result in a healthy and growing American industrial,
manufacturing, transportation, and service sector employing the vast
talents of America's workforce to assist in the development of energy
from domestic sources. Moreover, the Congress intends to monitor the
deployment of personnel and material onshore and offshore to encourage
the development of American technology and manufacturing to enable
United States workers to benefit from this Act by good jobs and
careers, as well as the establishment of important industrial
facilities to support expanded access to American resources.
(b) Safeguard for Extraordinary Ability.--Section 30(a) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the
matter preceding paragraph (1) by striking ``regulations which'' and
inserting ``regulations that shall be supplemental and complimentary
with and under no circumstances a substitution for the provisions of
the Constitution and laws of the United States extended to the subsoil
and seabed of the outer Continental Shelf pursuant to section 4 of this
Act, except insofar as such laws would otherwise apply to individuals
who have extraordinary ability in the sciences, arts, education, or
business, which has been demonstrated by sustained national or
international acclaim, and that''.
SEC. 109. SMALL, WOMAN-OWNED, AND MINORITY-OWNED BUSINESSES.
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337)
is amended by adding at the end the following:
``(q) Opportunities for Leasing.--The Secretary shall establish
goals to ensure equal opportunity to bid on offshore leases for
qualified small, women-owned, and minority-owned exploration and
production companies and may implement, where appropriate, outreach
programs for qualified historically underutilized exploration and
production companies to participate in the bidding process for offshore
leases.''.
SEC. 110. DEFINITIONS.
In this subtitle:
(1) Adjacent state.--The term ``adjacent State'' means,
with respect to any program, plan, lease sale, leased tract, or
other activity, proposed, conducted, or approved in accordance
with the Outer Continental Shelf Lands Act (43U.S.C. 1331 et
seq.), the State, the laws of which are declared pursuant to
section 4(a)(2) of the Outer Continental Shelf Lands Act (43
U.S.C.1333(a)(2)) to be the law of the United States for the
portion of the Outer Continental Shelf on which the program,
plan, lease sale, leased tract, or activity is, or is proposed
to be, conducted.
(2) Coastal environment.--The term ``coastal environment''
has the meaning given that term in the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.).
(3) Coastal zone.--The term ``coastal zone'' has the
meaning given that term in the Outer Continental Shelf Lands
Act (43 U.S.C. 1331 et seq.).
(4) Coastline.--The term ``coastline'' has the meaning
given the term ``coast line'' under section 2 of the Submerged
Lands Act (43 U.S.C. 1301).
(5) Human environment.--The term ``human environment'' has
the meaning given that term in the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.).
(6) Marine environment.--The term ``marine environment''
has the meaning given that term in the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.).
(7) Outer continental shelf.--The term ``Outer Continental
Shelf'' has the meaning given the term ``outer Continental
Shelf'' under section 2 of the Outer Continental Shelf Lands
Act (43 U.S.C. 1331).
(8) Seaward lateral boundary.--The term ``seaward lateral
boundary'' means a boundary drawn by the Minerals Management
Service in the Federal Register notice of January 3, 2006 (vol
71, no. 1).
(9) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
Subtitle B--Diligent Development of Federal Oil and Gas Leases
SEC. 121. CLARIFICATION.
The lands subject to each lease that authorizes the exploration for
or development or production of oil or natural gas that is issued under
a provision of law described in section 122 shall be diligently
developed for such production by the person holding the lease in order
to ensure timely production from the lease.
SEC. 122. COVERED PROVISIONS.
The provisions referred to in section 121 are the following:
(1) Section 17 of the Mineral Leasing Act (30 U.S.C. 226).
(2) Section 107 of the Naval Petroleum Reserves Production
Act of 1976 (42 U.S.C. 6506a).
(3) The Outer Continental Shelf Lands Act (43 11 U.S.C.
1331 et seq.).
(4) The Mineral Leasing Act for Acquired Lands (30 U.S.C.
351 et seq.).
SEC. 123. REGULATIONS.
The Secretary shall issue regulations within 180 days after the
date of enactment of this Act that establish what constitutes
diligently developing for purposes of this subtitle.
SEC. 124. RESOURCE ESTIMATES AND LEASING PROGRAM MANAGEMENT INDICATORS.
(a) In General.--The Secretary of the Interior shall annually
collect and report to Congress--
(1) the number of leases and the number of acres of land
under Federal onshore oil and gas lease, per State and per year
the lease was issued--
(A) on which seismic exploration activity is
occurring or has occurred;
(B) on which permits to drill have been applied
for, but not yet awarded;
(C) on which permits to drill have been approved,
but no drilling has yet occurred;
(D) on which wells have been drilled but no
production has occurred; and
(E) on which production is occurring;
(2) resource estimates for and the number of acres of
Federal onshore and offshore lands, by State or offshore
planning area--
(A) under lease, per year the lease was issued;
(B) under lease and not producing, per year the
lease was issued;
(C) under lease and drilled, but not producing, per
year the lease was issued;
(D) offered for lease in a lease sale conducted
during the previous year, but not leased; and
(E) available for leasing but not under lease or
offered for leasing in the previous year;
(3) resource estimates for and the number of acres of
unleased Federal onshore and offshore land available for oil
and gas leasing;
(4) resource estimates for and the number of acres of areas
of the Outer Continental Shelf--
(A) included in proposed sale areas in the most
recent 5-year plan developed by the Secretary pursuant
to section 18 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1344); and
(B) available for oil and gas leasing but not
included in the 5-year plan;
(5) the number of leases and the number of acres of Federal
onshore land, per Bureau of Land Management field office,
offered in a lease sale conducted during the previous year,
including data on the number of protests filed and how many
lease tracts were withdrawn as a result of such protests, and
how many leases were offered and issued with stipulations as a
result of those protests, including the name of the entity or
entities filing the protests;
(6) the number of applications for permits to drill
received, approved, pending, and denied, in the previous year
per Bureau of Land Management and Minerals Management Service
field office;
(7) the number of environmental inspections conducted per
State and per Bureau of Land Management and Minerals Management
Service field office in the previous year; and
(8) the number of full time staff equivalent (FTEs) devoted
to permit processing and oversight per Bureau of Land
Management and Minerals Management Service field office.
(b) Covered Provisions.--Subsection (a) shall apply with respect to
leases and land eligible for leasing pursuant to--
(1) section 17 of the Mineral Leasing Act (30 U.S.C. 226);
(2) the Mineral Leasing Act for Acquired Lands (30 U.S.C.
351 et seq.);
(3) section 107 of the Naval Petroleum Reserves Production
Act of 1976 (42 U.S.C. 6506a); or
(4) the Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.).
Subtitle C--Royalties Under Offshore Oil and Gas Leases
SEC. 131. SHORT TITLE.
This subtitle may be cited as the ``Royalty Relief for American
Consumers Act of 2008''.
SEC. 132. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.
The Secretary of the Interior shall agree to a request by any
lessee to amend any oil and gas lease issued for any Gulf of Mexico
tract during the period of January 1, 1998, through December 31, 1999,
to incorporate price thresholds applicable to royalty suspension
provisions, that are equal to or less than the price thresholds
described in clauses (v) through (vii) of section 8(a)(3)(C) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). Any
amended lease shall impose the new or revised price thresholds
effective October 1, 2006. Existing lease provisions shall prevail
through September 30, 2006.
SEC. 133. CLARIFICATION OF AUTHORITY TO IMPOSE PRICE THRESHOLDS FOR
CERTAIN LEASE SALES.
Congress reaffirms the authority of the Secretary of the Interior
under section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(a)(1)(H)) to vary, based on the price of production from a
lease, the suspension of royalties under any lease subject to section
304 of the Outer Continental Shelf Deep Water Royalty Relief Act
(Public Law 104-58; 43 U.S.C. 1337 note).
SEC. 134. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES;
CONSERVATION OF RESOURCES FEES.
(a) Issuance of New Leases.--
(1) In general.--The Secretary shall not issue any new
lease that authorizes the production of oil or natural gas in
the Gulf of Mexico under the Outer Continental Shelf Lands Act
(43 U.S.C. 1331 et seq.) to a person described in paragraph (2)
unless--
(A) the person has renegotiated each covered lease
with respect to which the person is a lessee, to modify
the payment responsibilities of the person to include
price thresholds that are equal to or less than the
price thresholds described in clauses (v) through (vii)
of section 8(a)(3)(C) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(a)(3)(C)); or
(B) the person has--
(i) paid all fees established by the
Secretary under subsection (b) that are due
with respect to each covered lease for which
the person is a lessee; or
(ii) entered into an agreement with the
Secretary under which the person is obligated
to pay such fees.
(2) Persons described.--A person referred to in paragraph
(1) is a person that--
(A) is a lessee that--
(i) holds a covered lease on the date on
which the Secretary considers the issuance of
the new lease; or
(ii) was issued a covered lease before the
date of enactment of this Act, but transferred
the covered lease to another person or entity
(including a subsidiary or affiliate of the
lessee) after the date of enactment of this
Act; or
(B) any other person or entity who has any direct
or indirect interest in, or who derives any benefit
from, a covered lease;
(3) Multiple lessees.--
(A) In general.--For purposes of paragraph (1), if
there are multiple lessees that own a share of a
covered lease, the Secretary may implement separate
agreements with any lessee with a share of the covered
lease that modifies the payment responsibilities with
respect to the share of the lessee to include price
thresholds that are equal to or less than the price
thresholds described in clauses (v) through (vii) of
section 8(a)(3)(C) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(a)(3)(C)).
(B) Treatment of share as covered lease.--Beginning
on the effective date of an agreement under
subparagraph (A), any share subject to the agreement
shall not constitute a covered lease with respect to
any lessees that entered into the agreement.
(b) Conservation of Resources Fees.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, the Secretary of the Interior by
regulation shall establish--
(A) a conservation of resources fee for producing
Federal oil and gas leases in the Gulf of Mexico; and
(B) a conservation of resources fee for
nonproducing Federal oil and gas leases in the Gulf of
Mexico.
(2) Producing lease fee terms.--The fee under paragraph
(1)(A)--
(A) subject to subparagraph (C), shall apply to
covered leases that are producing leases;
(B) shall be set at $9 per barrel for oil and $1.25
per million Btu for gas, respectively, in 2005 dollars;
and
(C) shall apply only to production of oil or gas
occurring--
(i) in any calendar year in which the
arithmetic average of the daily closing prices
for light sweet crude oil on the New York
Mercantile Exchange (NYMEX) exceeds $34.73 per
barrel for oil and $4.34 per million Btu for
gas in 2005 dollars; and
(ii) on or after October 1, 2006.
(3) Nonproducing lease fee terms.--The fee under paragraph
(1)(B)--
(A) subject to subparagraph (C), shall apply to
leases that are nonproducing leases;
(B) shall be set at $3.75 per acre per year in 2005
dollars; and
(C) shall apply on and after October 1, 2006.
(4) Treatment of receipts.--Amounts received by the United
States as fees under this subsection shall be treated as
offsetting receipts.
(c) Transfers.--A lessee or any other person who has any direct or
indirect interest in, or who derives a benefit from, a lease shall not
be eligible to obtain by sale or other transfer (including through a
swap, spinoff, servicing, or other agreement) any covered lease, the
economic benefit of any covered lease, or any other lease for the
production of oil or natural gas in the Gulf of Mexico under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), unless--
(1) the lessee or other person has--
(A) renegotiated all covered leases of the lessee
or other person; and
(B) entered into an agreement with the Secretary to
modify the terms of all covered leases of the lessee or
other person to include limitations on royalty relief
based on market prices that are equal to or less than
the price thresholds described in clauses (v) through
(vii) of section 8(a)(3)(C) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); or
(2) the lessee or other person has--
(A) paid all fees established by the Secretary
under subsection (b) that are due with respect to each
covered lease for which the person is a lessee; or
(B) entered into an agreement with the Secretary
under which the person is obligated to pay such fees.
(d) Definitions.--In this section--
(1) Covered lease.--The term ``covered lease'' means a
lease for oil or gas production in the Gulf of Mexico that is--
(A) in existence on the date of enactment of this
Act;
(B) issued by the Department of the Interior under
section 304 of the Outer Continental Shelf Deep Water
Royalty Relief Act (43 U.S.C. 1337 note; Public Law
104-58); and
(C) not subject to limitations on royalty relief
based on market price that are equal to or less than
the price thresholds described in clauses (v) through
(vii) of section 8(a)(3)(C) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
(2) Lessee.--The term ``lessee'' includes any person or
other entity that controls, is controlled by, or is in or under
common control with, a lessee.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
SEC. 135. STRATEGIC ENERGY EFFICIENCY AND RENEWABLES RESERVE.
(a) In General.--For budgetary purposes, the net increase in
Federal receipts by reason of the enactment of this Act shall be held
in a separate account to be known as the ``Strategic Energy Efficiency
and Renewables Reserve''. The Strategic Energy Efficiency and
Renewables Reserve shall be available to offset the cost of subsequent
legislation--
(1) to accelerate the use of clean domestic renewable
energy resources and alternative fuels;
(2) to promote the utilization of energy-efficient products
and practices and energy conservation;
(3) to increase research, development, and deployment of
clean renewable energy and efficiency technologies;
(4) to provide increased assistance for low income home
energy and weatherization programs;
(5) to further the purposes set forth in section 1(b) of
the Land and Water Conservation Fund Act of 1965 (16 U.S.C.
460l-4); and
(6) to increase research, development, and demonstration of
carbon capture and sequestration technologies.
(b) Procedure for Adjustments.--
(1) Budget committee chairman.--After the reporting of a
bill or joint resolution, or the offering of an amendment
thereto or the submission of a conference report thereon,
providing funding for the purposes set forth in subsection (a)
in excess of the amounts provided for those purposes for fiscal
year 2007, the chairman of the Committee on the Budget of the
applicable House of Congress shall make the adjustments set
forth in paragraph (2) for the amount of new budget authority
and outlays in that measure and the outlays flowing from that
budget authority.
(2) Matters to be adjusted.--The adjustments referred to in
paragraph (1) are to be made to--
(A) the discretionary spending limits, if any, set
forth in the appropriate concurrent resolution on the
budget;
(B) the allocations made pursuant to the
appropriate concurrent resolution on the budget
pursuant to section 302(a) of Congressional Budget Act
of 1974; and
(C) the budget aggregates contained in the
appropriate concurrent resolution on the budget as
required by section 301(a) of Congressional Budget Act
of 1974.
(3) Amounts of adjustments.--The adjustments referred to in
paragraphs (1) and (2) shall not exceed the total of the
receipts over a 10-year period, as estimated by the
Congressional Budget Office upon the enactment of this Act.
Subtitle D--Accountability and Integrity in the Federal Energy Program
SEC. 141. ROYALTY IN-KIND.
Section 342(d) of the Energy Policy Act of 2005 (42 U.S.C.
15902(d)) is amended to read as follows:
``(d) Benefit to the United States Required.--The Secretary may
receive oil or gas royalties in-kind only if the Secretary determines
that receiving royalties in-kind provides benefits to the United States
that are greater than or equal to the benefits that would likely be
received if the royalties were taken in-value, and if the Secretary
determines that receiving royalties in-kind is consistent with the
fiduciary duties of the Secretary on behalf of the American people.''.
SEC. 142. FAIR RETURN ON PRODUCTION OF FEDERAL OIL AND GAS RESOURCES.
(a) Royalty Payments.--The Secretary of the Interior shall take all
steps necessary to ensure that lessees under leases for exploration,
development, and production of oil and natural gas on Federal lands,
including leases under the Mineral Leasing Act (30 U.S.C. 181 et seq.),
the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.), the
Outer Continental Shelf Lands Act (30 U.S.C. 1331 et seq.), and all
other mineral leasing laws, are making prompt, transparent, and
accurate royalty payments under such leases.
(b) Recommendations for Legislative Action.--In order to facilitate
implementation of subsection (a), the Secretary of the Interior shall,
within 180 days after the date of enactment of this Act and in
consultation with the affected States, prepare and transmit to Congress
recommendations for legislative action to improve the accurate
collection of Federal oil and gas royalties.
SEC. 143. ROYALTY-IN-KIND ETHICS.
(a) Gift Ban.--
(1) Prohibition.--No employee of the Minerals Management
Service may--
(A) accept gifts of any value from any prohibited
source; or
(B) seek, accept, or hold employment with any
prohibited source.
(2) Penalty.--Any person who violates paragraph (1) shall
be subject to such penalties as the Secretary of the Interior
considers appropriate, which may include suspension without pay
or termination.
(b) Training.--The Secretary of the Interior shall implement a
robust ethics training program for employees of the Royalty-In-Kind
division of the Minerals Management Service that is in addition to the
standard ethics training that such employees are already required to
attend. Such additional training program shall require written
certification by each such employee that the employee knows and
understands the ethics requirements by which the employee is bound.
(c) Code of Ethics.--The Secretary of the Interior shall
promulgate, within 180 days after the date of the enactment of this
Act, a code of ethics for all employees of the Minerals Management
Service. The code of ethics shall provide clear direction relating to
the obligations, prohibitions, and consequences of misconduct.
(d) Drug Testing.--The Secretary of the Interior shall, within 180
days after the date of the enactment of this Act, implement a random
drug testing program for the employees of the royalty-in-kind division
of the Minerals Management Service.
(e) Definitions.--In this section:
(1) Gift.--The term ``gift''--
(A) includes any gratuity, favor, discount,
entertainment, hospitality, loan, forbearance, or other
item having monetary value; and
(B) includes services as well as gifts of training,
transportation, local travel, lodgings and meals,
whether provided in-kind, by purchase of a ticket,
payment in advance, or reimbursement after the expense
has been incurred.
(2) Prohibited source.--The term ``prohibited source''
means, with respect to an employee, any person who--
(A) is seeking official action by the Minerals
Management Service;
(B) does business or seeks to do business with the
Minerals Management Service;
(C) conducts activities regulated by the Minerals
Management Service;
(D) has interests that may be substantially
affected by performance or nonperformance of the
employee's official duties; or
(E) is an organization a majority of whose members
are described in any of subparagraphs (A) through (D).
(f) Other Ethics Requirements Apply.--The prohibitions and
requirements under this section are to be in addition to any other
requirements that apply to employees of the Minerals Management
Service.
SEC. 144. PROHIBITION ON CERTAIN GIFTS.
Section 201 of title 18, United States Code, is amended--
(1) by redesignating subsections (d) and (e) as subsections
(e) and (f); and
(2) by inserting after subsection (c) the following new
subsection:
``(d)(1) Whoever--
``(A) seeking or holding one or more leases of
property from the United States, through the Minerals
Management Service of the Department of the Interior,
for purposes of oil or mineral extraction, knowingly
engages in a course of conduct that consists of
providing things of value to a public official of, or
person who has been selected to be a public official
of, the Minerals Management Service, because of the
official's or person's position in the Minerals
Management Service; or
``(B) being a public official of, or person who has
been selected to be a public official of, the Minerals
Management Service of the Department of the Interior,
knowingly engages in a course of conduct consisting of
receiving things of value, knowing that such things of
value were provided because of the official's or
person's position in the Minerals Management Service,
from a person seeking or holding one or more leases of
property from the United States, through the Minerals
Management Service, for purposes of oil or mineral
extraction;
shall be fined under this title, imprisoned for not more than two
years, or both, except that a corporation, partnership, or other
organization that violates subparagraph (A) shall be fined $25,000,000
and an amount equal to its gross revenues arising, during the period in
which the course of conduct described in subparagraph (A) occurred,
from the lease or leases described in that subparagraph.
``(2) For purposes of this subsection, the term `course of conduct'
means a series of acts over a period of time evidencing a continuity of
purpose.
``(3)(A) The Attorney General may bring a civil action in the
appropriate United States district court against any corporation,
partnership, or other organization that engages in conduct constituting
an offense under paragraph (1)(A) and, upon proof of such conduct by a
preponderance of the evidence, such corporation, partnership, or other
organization shall be subject to a civil penalty of not more than
$25,000,000 and an amount equal to its gross revenues arising, during
the period in which the course of conduct described in paragraph (1)(A)
occurred, from the lease or leases described in that paragraph.
``(B) If a corporation, partnership, or other organization is held
liable for a civil penalty under subparagraph (A) for a violation of
paragraph (1)(A), the United States may terminate the lease or leases
that were the subject to the violation, and the United States shall not
be liable for any damages to any party to such lease or leases by
reason of such termination.
``(C) The imposition of a civil penalty under this paragraph does
not preclude any other criminal or civil statutory, common law, or
administrative remedy that is available to the United States, or any
other person, under this section or any other law.''.
SEC. 145. STRENGTHENING THE ABILITY OF THE INTERIOR DEPARTMENT
INSPECTOR GENERAL TO SECURE COOPERATION.
The Inspector General Act of 1978 (5 U.S.C. App.) is amended by
inserting after section 8K the following:
``special provisions concerning the department of the interior
``Sec. 8L. Notwithstanding section 6(a)(4), the Inspector General
of the Department of the Interior may, in any inquiry or investigation
involving leases of property from the United States through the
Minerals Management Services for purposes of oil and mineral
extraction, require by subpoena the production of all information,
documents, reports, answers, records, accounts, papers, and other data
in any medium, including electronically stored information and tangible
things, and testimony necessary in the performance of the functions
assigned by this Act, which subpoena, in the case of contumacy or
refusal to obey, shall be enforceable by order of any appropriate
United States district court: Provided, that procedures other than
subpoenas shall be used by the Inspector General to obtain documents,
information, or testimony from Federal agencies.''.
Subtitle E--Federal Oil and Gas Royalty Reform
SEC. 151. AMENDMENTS TO DEFINITIONS.
Section 3 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1702) is amended--
(1) in paragraph (20)(A), by striking ``: Provided, That''
and all that follows through ``subject of the judicial
proceeding'';
(2) in paragraph (20)(B), by striking ``(with written
notice to the lessee who designated the designee)'';
(3) in paragraph (23)(A), by striking ``(with written
notice to the lessee who designated the designee)'';
(4) by amending paragraph (24) to read as follows:
``(24) `designee' means any person who pays, offsets, or
credits monies, makes adjustments, requests and receives
refunds, or submits reports with respect to payments a lessee
must make pursuant to section 102(a);'';
(5) in paragraph (25)(B), by striking ``(subject to the
provisions of section 102(a) of this Act)''; and
(6) in paragraph (26), by striking ``(with notice to the
lessee who designated the designee)''.
SEC. 152. INTEREST.
(a) Estimated Payments; Interest on Amount of Underpayment.--
Section 111(j) of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1721(j)) is amended by striking ``If the estimated
payment exceeds the actual royalties due, interest is owed on the
overpayment.''.
(b) Overpayments.--Section 111 of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1721) is amended by striking
subsections (h) and (i).
(c) Effective Date.--The amendments made by this section shall be
effective one year after the date of enactment of this Act.
SEC. 153. OBLIGATION PERIOD.
Section 115(c) of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1724(c)) is amended by adding at the end the following:
``(3) Adjustments.--In the case of an adjustment under
section 111A(a) (30 U.S.C. 1721a(a)) in which a recoupment by
the lessee results in an underpayment of an obligation, for
purposes of this Act the obligation becomes due on the date the
lessee or its designee makes the adjustment.''.
SEC. 154. TOLLING AGREEMENTS AND SUBPOENAS.
(a) Tolling Agreements.--Section 115(d)(1) of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1724(d)(1)) is amended by
striking ``(with notice to the lessee who designated the designee)''.
(b) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) is amended by
striking ``(with notice to the lessee who designated the designee,
which notice shall not constitute a subpoena to the lessee)''.
SEC. 155. LIABILITY FOR ROYALTY PAYMENTS.
Section 102(a) of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1712(a)) is amended to read as follows:
``(a) In order to increase receipts and achieve effective
collections of royalty and other payments, a lessee who is required to
make any royalty or other payment under a lease or under the mineral
leasing laws, shall make such payments in the time and manner as may be
specified by the Secretary or the applicable delegated State. Any
person who pays, offsets or credits monies, makes adjustments, requests
and receives refunds, or submits reports with respect to payments the
lessee must make is the lessee's designee under this Act.
Notwithstanding any other provision of this Act to the contrary, a
designee shall be liable for any payment obligation of any lessee on
whose behalf the designee pays royalty under the lease. The person
owning operating rights in a lease and a person owning legal record
title in a lease shall be liable for that person's pro rata share of
payment obligations under the lease.''.
Subtitle F--National Petroleum Reserve in Alaska
SEC. 161. SHORT TITLE.
This subtitle may be cited as the ``Drill Responsibly in Leased
Lands Act of 2008''.
SEC. 162. ACCELERATION OF LEASE SALES FOR NATIONAL PETROLEUM RESERVE IN
ALASKA.
Section 107(d) of the Naval Petroleum Reserves Production Act of
1976 (42 U.S.C. 6506a(d)) is amended--
(1) by striking ``(d)'' and all that follows through ``;
first lease sale'' and inserting the following:
``(d) Lease Sales.--
``(1) First lease sale.--The first lease sale''; and
(2) by adding at the end the following:
``(2) Subsequent lease sales.--The Secretary shall
accelerate, to the maximum extent practicable, competitive and
environmentally responsible leasing of oil and gas in the
Reserve in accordance with this Act and all applicable
environmental laws, including at least 1 lease sale during each
of calendar years 2009 through 2013.''.
SEC. 163. NATIONAL PETROLEUM RESERVE IN ALASKA: PIPELINE CONSTRUCTION.
The Federal Energy Regulatory Commission shall facilitate, in an
environmentally responsible manner and in coordination with the
Secretary of the Interior, the Secretary of Transportation, the
Secretary of Energy, and the State of Alaska, the construction of
pipelines necessary to transport oil and natural gas from or through
the National Petroleum Reserve in Alaska to existing transportation or
processing infrastructure on the North Slope of Alaska.
SEC. 164. ALASKA NATURAL GAS PIPELINE PROJECT FACILITATION.
(a) Findings.--Congress finds the following:
(1) Over 35 trillion cubic feet of natural gas reserves
have been discovered on Federal and State lands currently open
to oil and natural gas leasing on the North Slope of Alaska.
(2) These gas supplies could make a significant
contribution to meeting the energy needs of the United States,
but the lack of a natural gas transportation system has
prevented these natural gas reserves from reaching markets in
the lower 48 States.
(b) Facilitation by President.--The President shall, pursuant to
the Alaska Natural Gas Pipeline Act (division C of Public Law 108-324;
15 U.S.C. 720 et seq.) and other applicable law, coordinate with
producers of natural gas on the North Slope of Alaska, Federal
agencies, the State of Alaska, Canadian authorities, pipeline
companies, and other interested persons in order to facilitate
construction of a natural gas pipeline from Alaska to United States
markets as expeditiously as possible.
SEC. 165. PROJECT LABOR AGREEMENTS AND OTHER PIPELINE REQUIREMENTS.
(a) Project Labor Agreements.--The President, as a term and
condition of any permit required under Federal law for the pipelines
referred to in section 163 and 164, and in recognizing the Government's
interest in labor stability and in the ability of construction labor
and management to meet the particular needs and conditions of such
pipelines to be developed under such permits and the special concerns
of the holders of such permits, shall require that the operators of
such pipelines and their agents and contractors negotiate to obtain a
project labor agreement for the employment of laborers and mechanics on
production, maintenance, and construction for such pipelines.
(b) Pipeline Maintenance.--The Secretary of Transportation shall
require every pipeline operator authorized to transport oil and gas
produced under Federal oil and gas leases in Alaska through the Trans-
Alaska Pipeline, any pipeline constructed pursuant to section 163 or
164 of this Act, or any other federally approved pipeline transporting
oil and gas from the North Slope of Alaska, to certify to the Secretary
of Transportation annually that such pipeline is being fully maintained
and operated in an efficient manner. The Secretary of Transportation
shall assess appropriate civil penalties for violations of this
requirement in the same manner as civil penalties are assessed for
violations under section 60122(a)(1) of title 49, United States Code.
SEC. 166. BAN ON EXPORT OF ALASKAN OIL.
(a) Repeal of Provision Authorizing Exports.--Section 28(s) of the
Mineral Leasing Act (30 U.S.C. 185(s)) is repealed.
(b) Reimposition of Prohibition on Crude Oil Exports.--Upon the
effective date of this Act, subsection (d) of section 7 of the Export
Administration Act of 1979 (50 U.S.C. App. 2406(d)), shall be
effective, and any other provision of that Act (including sections 11
and 12) shall be effective to the extent necessary to carry out such
section 7(d), notwithstanding section 20 of that Act or any other
provision of law that would otherwise allow exports of oil to which
such section 7(d) applies.
Subtitle G--Oil Shale
SEC. 171. 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) Requirement That State Approve of 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) Requirement That State Approve of 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, unless the State has enacted a law approving of Federal oil
shale leasing in the State. Nothing in this subsection shall be
construed as preventing the Department of the Interior from preparing
an environmental impact statement under the existing authority under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
with respect to an individual lease sale proposed under the commercial
leasing program established under this section.''.
TITLE II--CONSUMER ENERGY SUPPLY
SEC. 201. SHORT TITLE.
This title may be cited as the ``Consumer Energy Supply Act of
2008''.
SEC. 202. DEFINITIONS.
In this title--
(1) the term ``light grade petroleum'' means crude oil with
an API gravity of 30 degrees or higher;
(2) the term ``heavy grade petroleum'' means crude oil with
an API gravity of 26 degrees or lower; and
(3) the term ``Secretary'' means the Secretary of Energy.
SEC. 203. SALE AND REPLACEMENT OF OIL FROM THE STRATEGIC PETROLEUM
RESERVE.
(a) Initial Petroleum Sale and Replacement.--Notwithstanding
section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241),
the Secretary shall publish a plan not later than 15 days after the
date of enactment of this Act to--
(1) sell, in the amounts and on the schedule described in
subsection (b), light grade petroleum from the Strategic
Petroleum Reserve and acquire an equivalent volume of heavy
grade petroleum;
(2) deposit the cash proceeds from sales under paragraph
(1) into the SPR Petroleum Account established under section
167 of the Energy Policy and Conservation Act (42 U.S.C. 6247);
and
(3) from the cash proceeds deposited pursuant to paragraph
(2), withdraw the amount necessary to pay for the direct
administrative and operational costs of the sale and
acquisition.
(b) Amounts and Schedule.--The sale and acquisition described in
subsection (a) shall require the offer for sale of a total quantity of
70,000,000 barrels of light grade petroleum from the Strategic
Petroleum Reserve. The sale shall commence, whether or not a plan has
been published under subsection (a), not later than 30 days after the
date of enactment of this Act and be completed no more than six months
after the date of enactment of this Act, with at least 20,000,000
barrels to be offered for sale within the first 60 days after the date
of enactment of this Act. In no event shall the Secretary sell barrels
of oil under subsection (a) that would result in a Strategic Petroleum
Reserve that contains fewer than 90 percent of the total amount of
barrels in the Strategic Petroleum Reserve as of the date of enactment
of this Act. Heavy grade petroleum, to replace the quantities of light
grade petroleum sold under this section, shall be obtained through
acquisitions which--
(1) shall commence no sooner than 6 months after the date
of enactment of this Act;
(2) shall be completed, at the discretion of the Secretary,
not later than 5 years after the date of enactment of this Act;
(3) shall be carried out in a manner so as to maximize the
monetary value to the Federal Government; and
(4) shall be carried out using the receipts from the sales
of light grade petroleum authorized under this section.
(c) Deferrals.--The Secretary is encouraged to, when economically
beneficial and practical, grant requests to defer scheduled deliveries
of petroleum to the Reserve under subsection (a) if the deferral will
result in a premium paid in additional barrels of oil which will reduce
the cost of oil acquisition and increase the volume of oil delivered to
the Reserve or yield additional cash bonuses.
TITLE III--PUBLIC TRANSPORTATION
SEC. 301. SHORT TITLE.
This title may be cited as the ``Saving Energy Through Public
Transportation Act of 2008''.
SEC. 302. FINDINGS.
Congress finds the following:
(1) In 2007, people in the United States took more than
10.3 billion trips using public transportation, the highest
level in 50 years.
(2) Public transportation use in the United States is up 32
percent since 1995, a figure that is more than double the
growth rate of the Nation's population and is substantially
greater than the growth rate for vehicle miles traveled on the
Nation's highways for that same period.
(3) Public transportation use saves fuel, reduces
emissions, and saves money for the people of the United States.
(4) The direct petroleum savings attributable to public
transportation use is 1.4 billion gallons per year, and when
the secondary effects of transit availability on travel are
also taken into account, public transportation use saves the
United States the equivalent of 4.2 billion gallons of gasoline
per year (more than 11 million gallons of gasoline per day).
(5) Public transportation use in the United States is
estimated to reduce carbon dioxide emissions by 37 million
metric tons annually.
(6) An individual who commutes to work using a single
occupancy vehicle can reduce carbon dioxide emissions by 20
pounds per day (more than 4,800 pounds per year) by switching
to public transportation.
(7) Public transportation use provides an affordable
alternative to driving, as households that use public
transportation save an average of $6,251 every year.
(8) Although under existing laws Federal employees in the
National Capital Region receive transit benefits, transit
benefits should be available to all Federal employees in the
United States so that the Federal Government sets a leading
example of greater public transportation use.
(9) Public transportation stakeholders should engage and
involve local communities in the education and promotion of the
importance of utilizing public transportation.
(10) Increasing public transportation use is a national
priority.
SEC. 303. GRANTS TO IMPROVE PUBLIC TRANSPORTATION SERVICES.
(a) Authorizations of Appropriations.--
(1) Urbanized area formula grants.--In addition to amounts
allocated under section 5338(b)(2)(B) of title 49, United
States Code, to carry out section 5307 of such title, there is
authorized to be appropriated $750,000,000 for each of fiscal
years 2008 and 2009 to carry out such section 5307. Such funds
shall be apportioned, not later than 7 days after the date on
which the funds are appropriated, in accordance with section
5336 (other than subsections (i)(1) and (j)) of such title but
may not be combined or commingled with any other funds
apportioned under such section 5336.
(2) Formula grants for other than urbanized areas.--In
addition to amounts allocated under section 5338(b)(2)(G) of
title 49, United States Code, to carry out section 5311 of such
title, there is authorized to be appropriated $100,000,000 for
each of fiscal years 2008 and 2009 to carry out such section
5311. Such funds shall be apportioned, not later than 7 days
after the date on which the funds are appropriated, in
accordance with such section 5311 but may not be combined or
commingled with any other funds apportioned under such section
5311.
(b) Use of Funds.--Notwithstanding sections 5307 and 5311 of title
49, United States Code, the Secretary of Transportation may make grants
under such sections from amounts appropriated under subsection (a) only
for one or more of the following:
(1) If the recipient of the grant is reducing, or certifies
to the Secretary within the time the Secretary prescribes that,
during the term of the grant, the recipient will reduce one or
more fares the recipient charges for public transportation, or
in the case of subsection (f) of such section 5311, intercity
bus service, those operating costs of equipment and facilities
being used to provide the public transportation, or in the case
of subsection (f) of such section 5311, intercity bus service,
that the recipient is no longer able to pay from the revenues
derived from such fare or fares as a result of such reduction.
(2) If the recipient of the grant is expanding, or
certifies to the Secretary within the time the Secretary
prescribes that, during the term of the grant, the recipient
will expand public transportation service, or in the case of
subsection (f) of such section 5311, intercity bus service,
those operating and capital costs of equipment and facilities
being used to provide the public transportation service, or in
the case of subsection (f) of such section 5311, intercity bus
service, that the recipient incurs as a result of the expansion
of such service.
(3) To avoid increases in fares for public transportation,
or in the case of subsection (f) of such section 5311,
intercity bus service, or decreases in current public
transportation service, or in the case of subsection (f) of
such section 5311, intercity bus service, that would otherwise
result from an increase in costs to the public transportation
or intercity bus agency for transportation-related fuel or
meeting additional transportation-related equipment or facility
maintenance needs, if the recipient of the grant certifies to
the Secretary within the time the Secretary prescribes that,
during the term of the grant, the recipient will not increase
the fares that the recipient charges for public transportation,
or in the case of subsection (f) of such section 5311,
intercity bus service, or, will not decrease the public
transportation service, or in the case of subsection (f) of
such section 5311, intercity bus service, that the recipient
provides.
(4) If the recipient of the grant is acquiring, or
certifies to the Secretary within the time the Secretary
prescribes that, during the term of the grant, the recipient
will acquire, clean fuel or alternative fuel vehicle-related
equipment or facilities for the purpose of improving fuel
efficiency, the costs of acquiring the equipment or facilities.
(5) If the recipient of the grant is establishing or
expanding, or certifies to the Secretary within the time the
Secretary prescribes that, during the term of the grant, the
recipient will establish or expand, commuter matching services
to provide commuters with information and assistance about
alternatives to single occupancy vehicle use, those
administrative costs in establishing or expanding such
services.
(c) Federal Share.--Notwithstanding any other provision of law, the
Federal share of the costs for which a grant is made under this section
shall be 100 percent.
(d) Period of Availability.--Funds appropriated under this section
shall remain available for a period of 2 fiscal years.
SEC. 304. INCREASED FEDERAL SHARE FOR CLEAN AIR ACT COMPLIANCE.
Notwithstanding section 5323(i)(1) of title 49, United States Code,
a grant for a project to be assisted under chapter 53 of such title
during fiscal years 2008 and 2009 that involves acquiring clean fuel or
alternative fuel vehicle-related equipment or facilities for the
purposes of complying with or maintaining compliance with the Clean Air
Act (42 U.S.C. 7401 et seq.) shall be for 100 percent of the net
project cost of the equipment or facility attributable to compliance
with that Act unless the grant recipient requests a lower grant
percentage.
SEC. 305. TRANSPORTATION FRINGE BENEFITS.
(a) Requirement That Agencies Offer Transit Pass Transportation
Fringe Benefits to Their Employees Nationwide.--
(1) In general.--Section 3049(a)(1) of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users (5 U.S.C. 7905 note; 119 Stat. 1711) is
amended--
(A) by striking ``Effective'' and all that follows
through ``each covered agency'' and inserting ``Each
agency''; and
(B) by inserting ``at a location in an urbanized
area of the United States that is served by fixed route
public transportation'' before ``shall be offered''.
(2) Conforming amendments.--Section 3049(a) of such Act (5
U.S.C. 7905 note; 119 Stat. 1711) is amended--
(A) in paragraph (3)--
(i) by striking subparagraph (A); and
(ii) by redesignating subparagraphs (B)
through (F) as subparagraphs (A) through (E),
respectively; and
(B) in paragraph (4) by striking ``a covered
agency'' and inserting ``an agency''.
(b) Benefits Described.--Section 3049(a)(2) of such Act (5 U.S.C.
7905 note; 119 Stat. 1711) is amended by striking the period at the end
and inserting the following: ``, except that the maximum level of such
benefits shall be the maximum amount which may be excluded from gross
income for qualified parking as in effect for a month under section
132(f)(2)(B) of the Internal Revenue Code of 1986.''.
(c) Guidance.--Section 3049(a) of such Act (5 U.S.C. 7905 note; 119
Stat. 1711) is amended by adding at the end the following:
``(5) Guidance.--
``(A) Issuance.--Not later than 60 days after the
date of enactment of this paragraph, the Secretary of
Transportation shall issue guidance on nationwide
implementation of the transit pass transportation
fringe benefits program under this subsection.
``(B) Uniform application.--
``(i) In general.--The guidance to be
issued under subparagraph (A) shall contain a
uniform application for use by all Federal
employees applying for benefits from an agency
under the program.
``(ii) Required information.--As part of
such an application, an employee shall provide,
at a minimum, the employee's home and work
addresses, a breakdown of the employee's
commuting costs, and a certification of the
employee's eligibility for benefits under the
program.
``(iii) Warning against false statements.--
Such an application shall contain a warning
against making false statements in the
application.
``(C) Independent verification requirements.--The
guidance to be issued under subparagraph (A) shall
contain independent verification requirements to ensure
that, with respect to an employee of an agency--
``(i) the eligibility of the employee for
benefits under the program is verified by an
official of the agency;
``(ii) employee commuting costs are
verified by an official of the agency; and
``(iii) records of the agency are checked
to ensure that the employee is not receiving
parking benefits from the agency.
``(D) Program implementation requirements.--The
guidance to be issued under subparagraph (A) shall
contain program implementation requirements applicable
to each agency to ensure that--
``(i) benefits provided by the agency under
the program are adjusted in cases of employee
travel, leave, or change of address;
``(ii) removal from the program is included
in the procedures of the agency relating to an
employee separating from employment with the
agency; and
``(iii) benefits provided by the agency
under the program are made available using an
electronic format (rather than using paper fare
media) where such a format is available for
use.
``(E) Enforcement and penalties.--The guidance to
be issued under subparagraph (A) shall contain a
uniform administrative policy on enforcement and
penalties. Such policy shall be implemented by each
agency to ensure compliance with program requirements,
to prevent fraud and abuse, and, as appropriate, to
penalize employees who have abused or misused the
benefits provided under the program.
``(F) Periodic reviews.--The guidance to be issued
under subparagraph (A) shall require each agency, not
later than September 1 of the first fiscal year
beginning after the date of enactment of this
paragraph, and every 3 years thereafter, to develop and
submit to the Secretary a review of the agency's
implementation of the program. Each such review shall
contain, at a minimum, the following:
``(i) An assessment of the agency's
implementation of the guidance, including a
summary of the audits and investigations, if
any, of the program conducted by the Inspector
General of the agency.
``(ii) Information on the total number of
employees of the agency that are participating
in the program.
``(iii) Information on the total number of
single occupancy vehicles removed from the
roadway network as a result of participation by
employees of the agency in the program.
``(iv) Information on energy savings and
emissions reductions, including reductions in
greenhouse gas emissions, resulting from
reductions in single occupancy vehicle use by
employees of the agency that are participating
in the program.
``(v) Information on reduced congestion and
improved air quality resulting from reductions
in single occupancy vehicle use by employees of
the agency that are participating in the
program.
``(vi) Recommendations to increase program
participation and thereby reduce single
occupancy vehicle use by Federal employees
nationwide.
``(6) Reporting requirements.--Not later than September 30
of the first fiscal year beginning after the date of enactment
of this paragraph, and every 3 years thereafter, the Secretary
shall submit to the Committee on Transportation and
Infrastructure and the Committee on Oversight and Government
Reform of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate a report on
nationwide implementation of the transit pass transportation
fringe benefits program under this subsection, including a
summary of the information submitted by agencies pursuant to
paragraph (5)(F).''.
(d) Effective Date.--Except as otherwise specifically provided, the
amendments made by this section shall become effective on the first day
of the first fiscal year beginning after the date of enactment of this
Act.
SEC. 306. CAPITAL COST OF CONTRACTING VANPOOL PILOT PROGRAM.
(a) Establishment.--The Secretary of Transportation shall establish
and implement a pilot program to carry out vanpool demonstration
projects in not more than 3 urbanized areas and not more than 2 other
than urbanized areas.
(b) Pilot Program.--
(1) In general.--Notwithstanding section 5323(i) of title
49, United States Code, for each project selected for
participation in the pilot program, the Secretary shall allow
the non-Federal share provided by a recipient of assistance for
a capital project under chapter 53 of such title to include the
amounts described in paragraph (2).
(2) Conditions on acquisition of vans.--The amounts
referred to in paragraph (1) are any amounts expended by a
private provider of public transportation by vanpool for the
acquisition of vans to be used by such private provider in the
recipient's service area, excluding any amounts the provider
may have received in Federal, State, or local government
assistance for such acquisition, if the private provider enters
into a legally binding agreement with the recipient that
requires the private provider to use all revenues it receives
in providing public transportation in such service area, in
excess of its operating costs, for the purpose of acquiring
vans to be used by the private provider in such service area.
(c) Program Term.--The Secretary may approve an application for a
vanpool demonstration project for fiscal years 2008 through 2009.
(d) Report to Congress.--Not later than one year after the date of
enactment of this Act, the Secretary shall submit to the Committee on
Transportation and Infrastructure of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of the Senate a
report containing an assessment of the costs, benefits, and
efficiencies of the vanpool demonstration projects.
SEC. 307. NATIONAL CONSUMER AWARENESS PROGRAM.
(a) In General.--The Secretary of Transportation shall carry out a
national consumer awareness program to educate the public on the
environmental, energy, and economic benefits of public transportation
alternatives to the use of single occupancy vehicles.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $1,000,000 for fiscal year 2009.
Such sums shall remain available until expended.
SEC. 308. EXCEPTION TO ALTERNATIVE FUEL PROCUREMENT REQUIREMENT.
Section 526 of the Energy Independence and Security Act of 2007
(Public Law 110-140; 42 U.S. C. 17142) is amended--
(1) by striking ``No Federal agency'' and inserting ``(a)
Requirement.--Except as provided in subsection (b), no Federal
agency''; and
(2) by adding at the end the following:
``(b) Exception.--Subsection (a) does not prohibit a Federal agency
from entering into a contract to purchase a generally available fuel
that is not an alternative or synthetic fuel or predominantly produced
from a nonconventional petroleum source, if--
``(1) the contract does not specifically require the
contractor to provide an alternative or synthetic fuel or fuel
from a nonconventional petroleum source;
``(2) the purpose of the contract is not to obtain an
alternative or synthetic fuel or fuel from a nonconventional
petroleum source; and
``(3) the contract does not provide incentives for a
refinery upgrade or expansion to allow a refinery to use or
increase its use of fuel from a nonconventional petroleum
source.''.
TITLE IV--GREATER ENERGY EFFICIENCY IN BUILDING CODES
SEC. 401. GREATER ENERGY EFFICIENCY IN BUILDING CODES.
(a) In General.--Section 304 of the Energy Conservation and
Production Act (42 U.S.C. 6833) is amended to read as follows:
``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.
``(a) Updating National Model Building Energy Codes.--(1) The
Secretary shall support updating the national model building energy
codes and standards at least every three years to achieve overall
energy savings, compared to the 2006 IECC for residential buildings and
ASHRAE Standard 90.1-2004 for commercial buildings, of at least--
``(A) 30 percent in editions of each model code or standard
released in or after 2010; and
``(B) 50 percent in editions of each model code or standard
released in or after 2020.
Targets for specific years shall be set by the Secretary at least 3
years in advance of each target year, coordinated with the IECC and
ASHRAE Standard 90.1 cycles, at the maximum level of energy efficiency
that is technologically feasible and life-cycle cost effective.
``(2)(A) Whenever the provisions of the IECC or ASHRAE Standard
90.1 regarding building energy use are revised, the Secretary shall
make a preliminary determination not later than 90 days after the date
of the revision, and a final determination not later than 12 months
after the date of such revision, on--
``(i) whether such revision will improve energy efficiency
in buildings; and
``(ii) whether such revision will meet the targets under
paragraph (1).
``(B) If the Secretary makes a determination under subparagraph
(A)(ii) that a code or standard does not meet the targets under
paragraph (1), or if a national model code or standard is not updated
for more than three years, then the Secretary shall, within 12 months
after such determination, establish a modified code or standard that
meets such targets. Any such modified code or standard--
``(i) shall achieve the maximum level of energy savings
that is technologically feasible and life-cycle cost-effective;
``(ii) shall be based on the latest revision of the IECC or
ASHRAE Standard 90.1, including any amendments or additions
thereto, but may also consider other model codes or standards;
and
``(iii) shall serve as the baseline for the next
determination under subparagraph (A)(i).
``(C) The Secretary shall provide the opportunity for public
comment on targets, determinations, and modified codes and standards
under this subsection, and shall publish notice of targets,
determinations, and modified codes and standards under this subsection
in the Federal Register.
``(b) State Certification of Building Energy Code Updates.--(1) Not
later than 2 years after the date of enactment of this subsection, each
State shall certify to the Secretary that it has reviewed and updated
the provisions of its residential and commercial building codes
regarding energy efficiency. Such certification shall include a
demonstration that such State's code provisions meet or exceed the 2006
IECC for residential buildings and the ASHRAE Standard 90.1-2007 for
commercial buildings, or achieve equivalent or greater energy savings.
``(2)(A) If the Secretary makes an affirmative determination under
subsection (a)(2)(A)(i) or establishes a modified code or standard
under subsection (a)(2)(B), each State shall, within 2 years after such
determination or establishment, certify that it has reviewed and
updated the provisions of its building code regarding energy
efficiency. Such certification shall include a demonstration that such
State's code provisions meet or exceed the revised code or standard, or
achieve equivalent or greater energy savings.
``(B) If the Secretary fails to make a determination under
subsection (a)(2)(A)(i) by the date specified in subsection (a)(2), or
makes a negative determination, each State shall within 2 years after
the specified date or the date of the determination, certify that it
has reviewed the revised code or standard, and updated the provisions
of its building code regarding energy efficiency to meet or exceed any
provisions found to improve energy efficiency in buildings, or to
achieve equivalent or greater energy savings in other ways.
``(c) State Certification of Compliance With Building Codes.--(1)
Each State shall, not later than 3 years after a certification under
subsection (b), certify that it has--
``(A) achieved compliance under paragraph (3) with the
certified State building energy code or with the associated
model code or standard; or
``(B) made significant progress under paragraph (4) toward
achieving compliance with the certified State building energy
code or with the associated model code or standard.
If the State certifies progress toward achieving compliance, the State
shall repeat the certification each year until it certifies that it has
achieved compliance.
``(2) A certification under paragraph (1) shall include
documentation of the rate of compliance based on independent
inspections of a random sample of the new and renovated buildings
covered by the code in the preceding year, or based on an alternative
method that yields an accurate measure of compliance.
``(3)(A) A State shall be considered to achieve compliance under
paragraph (1) if--
``(i) at least 90 percent of new and renovated building
space covered by the code in the preceding year substantially
meets all the requirements of the code regarding energy
efficiency, or achieves an equivalent energy savings level; or
``(ii) the estimated excess energy use of new and renovated
buildings that did not meet the code in the preceding year,
compared to a baseline of comparable buildings that meet the
code, is not more than 5 percent of the estimated energy use of
all new and renovated buildings covered by the code in the
preceding year.
``(B) Only renovations with building permits are covered under this
paragraph. If the Secretary determines the percentage targets under
subparagraph (A) are not reasonably achievable for renovated
residential or commercial buildings, the Secretary may reduce the
targets for such renovated buildings to the highest achievable level.
``(4)(A) A State shall be considered to have made significant
progress toward achieving compliance for purposes of paragraph (1) if
the State--
``(i) has developed and is implementing a plan for
achieving compliance within 8 years, assuming continued
adequate funding, including active training and enforcement
programs;
``(ii) after one or more years of adequate funding, has
demonstrated progress, in conformance with the plan described
in clause (i), toward compliance;
``(iii) after five or more years of adequate funding, meets
the requirement in paragraph (3) substituting 80 percent for 90
percent or substituting 10 percent for 5 percent; and
``(iv) has not had more than 8 years of adequate funding.
``(B) Funding shall be considered adequate, for purposes of this
paragraph, when the Federal Government provides to the States at least
$50,000,000 in a year in funding and support for development and
implementation of State building energy codes, including for training
and enforcement.
``(d) Failure To Meet Deadlines.--(1) A State that has not made a
certification required under subsection (b) or (c) by the applicable
deadline shall submit to the Secretary a report on--
``(A) the status of the State with respect to meeting the
requirements and submitting the certification; and
``(B) a plan for meeting the requirements and submitting
the certification.
``(2) Any State for which the Secretary has not accepted a
certification by a deadline under subsection (b) or (c) of this section
is out of compliance with this section.
``(3) In any State that is out of compliance with this section, a
local government may be in compliance with this section by meeting the
certification requirements under subsections (b) and (c) of this
section.
``(4) The Secretary shall annually submit to Congress, and publish
in the Federal Register, a report on the status of national model
building energy codes and standards, the status of code adoption and
compliance in the States, and implementation of this section. The
report shall include estimates of impacts of past action under this
section and potential impacts of further action on lifetime energy use
by buildings and resulting energy costs to individuals and businesses.
``(e) Technical Assistance.--(1) The Secretary shall on a timely
basis provide technical assistance to model code-setting and standard
development organizations. This assistance shall include technical
assistance as requested by the organizations in evaluating code or
standards proposals or revisions, building energy analysis and design
tools, building demonstrations, and design assistance and training. The
Secretary shall submit code and standard amendment proposals, with
supporting evidence, sufficient to enable the national model building
energy codes and standards to meet the targets in subsection (a)(1).
``(2) The Secretary shall provide technical assistance to States to
implement the requirements of this section, including procedures for
States to demonstrate that their code provisions achieve equivalent or
greater energy savings than the national model codes and standards, and
to improve and implement State residential and commercial building
energy efficiency codes or to otherwise promote the design and
construction of energy efficient buildings.
``(f) Availability of Incentive Funding.--(1) The Secretary shall
provide incentive funding to States to implement the requirements of
this section, and to improve and implement State residential and
commercial building energy efficiency codes, including increasing and
verifying compliance with such codes. In determining whether, and in
what amount, to provide incentive funding under this subsection, the
Secretary shall consider the actions proposed by the State to implement
the requirements of this section, to improve and implement residential
and commercial building energy efficiency codes, and to promote
building energy efficiency through the use of such codes.
``(2) Additional funding shall be provided under this subsection
for implementation of a plan to achieve and document at least a 90
percent rate of compliance with residential and commercial building
energy efficiency codes, based on energy performance--
``(A) to a State that has adopted and is implementing, on a
Statewide basis--
``(i) a residential building energy efficiency code
that meets or exceeds the requirements of the 2006
IECC, or any succeeding version of that code that has
received an affirmative determination from the
Secretary under subsection (a)(2)(A)(i); and
``(ii) a commercial building energy efficiency code
that meets or exceeds the requirements of the ASHRAE
Standard 90.1-2007, or any succeeding version of that
standard that has received an affirmative determination
from the Secretary under subsection (a)(2)(A)(i); or
``(B) in a State in which there is no Statewide energy code
for either residential buildings or commercial buildings, or
where State codes fail to comply with subparagraph (A), to a
local government that has adopted and is implementing
residential and commercial building energy efficiency codes, as
described in subparagraph (A).
``(3) Of the amounts made available under this subsection, the
Secretary may use amounts required, not exceeding $500,000 for each
State, to train State and local officials to implement codes described
in paragraph (2).
``(4) There are authorized to be appropriated to carry out this
subsection--
``(A) $70,000,000 for each of fiscal years 2009 through
2013; and
``(B) such sums as are necessary for fiscal year 2014 and
each fiscal year thereafter.''.
(b) Definition.--Section 303 of the Energy Conservation and
Production Act (42 U.S.C. 6832) is amended by adding at the end the
following new paragraph:
``(17) The term `IECC' means the International Energy
Conservation Code.''.
TITLE V--FEDERAL RENEWABLE ELECTRICITY STANDARD
SEC. 501. FEDERAL RENEWABLE ELECTRICITY STANDARD.
(a) In General.--Title VI of the Public Utility Regulatory Policies
Act of 1978 is amended by adding at the end the following:
``SEC. 610. FEDERAL RENEWABLE ELECTRICITY STANDARD.
``(a) Definitions.--For purposes of this section:
``(1) Biomass.--
``(A) In general.--The term `biomass' means each of
the following:
``(i) Cellulosic (plant fiber) organic
materials from a plant that is planted for the
purpose of being used to produce energy.
``(ii) Nonhazardous, plant or algal matter
that is derived from any of the following:
``(I) An agricultural crop, crop
byproduct or residue resource.
``(II) Waste such as landscape or
right-of-way trimmings (but not
including municipal solid waste,
recyclable postconsumer waste paper,
painted, treated, or pressurized wood,
wood contaminated with plastic or
metals).
``(iii) Animal waste or animal byproducts.
``(iv) Landfill methane.
``(B) National forest lands and certain other
public lands.--With respect to organic material removed
from National Forest System lands or from public lands
administered by the Secretary of the Interior, the term
`biomass' covers only organic material from (i)
ecological forest restoration; (ii) pre-commercial
thinnings; (iii) brush; (iv) mill residues; and (v)
slash.
``(C) Exclusion of certain federal lands.--
Notwithstanding subparagraph (B), material or matter
that would otherwise qualify as biomass are not
included in the term biomass if they are located on the
following Federal lands:
``(i) Federal land containing old growth
forest or late successional forest unless the
Secretary of the Interior or the Secretary of
Agriculture determines that the removal of
organic material from such land is appropriate
for the applicable forest type and maximizes
the retention of late-successional and large
and old growth trees, late-successional and old
growth forest structure, and late-successional
and old growth forest composition.
``(ii) Federal land on which the removal of
vegetation is prohibited, including components
of the National Wilderness Preservation System.
``(iii) Wilderness Study Areas.
``(iv) Inventoried roadless areas.
``(v) Components of the National Landscape
Conservation System.
``(vi) National Monuments.
``(2) Eligible facility.--The term `eligible facility'
means--
``(A) a facility for the generation of electric
energy from a renewable energy resource that is placed
in service on or after January 1, 2001; or
``(B) a repowering or cofiring increment.
``(3) Existing facility.--The term `existing facility'
means a facility for the generation of electric energy from a
renewable energy resource that is not an eligible facility.
``(4) Incremental hydropower.--The term `incremental
hydropower' means additional generation that is achieved from
increased efficiency or additions of capacity made on or after
January 1, 2001, or the effective date of an existing
applicable State renewable portfolio standard program at a
hydroelectric facility that was placed in service before that
date.
``(5) Indian land.--The term `Indian land' means--
``(A) any land within the limits of any Indian
reservation, pueblo, or rancheria;
``(B) any land not within the limits of any Indian
reservation, pueblo, or rancheria title to which was on
the date of enactment of this paragraph either held by
the United States for the benefit of any Indian tribe
or individual or held by any Indian tribe or individual
subject to restriction by the United States against
alienation;
``(C) any dependent Indian community; or
``(D) any land conveyed to any Alaska Native
corporation under the Alaska Native Claims Settlement
Act.
``(6) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, nation, or other organized group or
community, including any Alaskan Native village or regional or
village corporation as defined in or established pursuant to
the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), which is recognized as eligible for the special programs
and services provided by the United States to Indians because
of their status as Indians.
``(7) Renewable energy.--The term `renewable energy' means
electric energy generated by a renewable energy resource.
``(8) Renewable energy resource.--The term `renewable
energy resource' means solar, wind, ocean, tidal, geothermal
energy, biomass, landfill gas, incremental hydropower, or
hydrokinetic energy.
``(9) Repowering or cofiring increment.--The term
`repowering or cofiring increment' means--
``(A) the additional generation from a modification
that is placed in service on or after January 1, 2001,
to expand electricity production at a facility used to
generate electric energy from a renewable energy
resource;
``(B) the additional generation above the average
generation in the 3 years preceding the date of
enactment of this section at a facility used to
generate electric energy from a renewable energy
resource or to cofire biomass that was placed in
service before the date of enactment of this section:
or
``(C) the portion of the electric generation from a
facility placed in service on or after January 1, 2001,
or a modification to a facility placed in service
before the date of enactment of this section made on or
after January 1, 2001, associated with cofiring
biomass.
``(10) Retail electric supplier.--(A) The term `retail
electric supplier' means a person that sells electric energy to
electric consumers (other than consumers in Hawaii) that sold
not less than 1,000,000 megawatt-hours of electric energy to
electric consumers for purposes other than resale during the
preceding calendar year. For purposes of this section, a person
that sells electric energy to electric consumers that, in
combination with the sales of any affiliate organized after the
date of enactment of this section, sells not less that
1,000,000 megawatt hours of electric energy to consumers for
purposes other than resale shall qualify as a retail electric
supplier. For purposes of this paragraph, sales by any person
to a parent company or to other affiliates of such person shall
not be treated as sales to electric consumers.
``(B) Such term does not include the United States, a State
or any political subdivision of a State, or any agency,
authority, or instrumentality of any one or more of the
foregoing, or a rural electric cooperative, except that a
political subdivision of a State, or an agency, authority, or
instrumentality of the United States, a State or a political
subdivision of a State, or a rural electric cooperative that
sells electric energy to electric consumers or any other entity
that sells electric energy to electric consumers that would not
otherwise qualify as a retail electric supplier shall be deemed
a retail electric supplier if such entity notifies the
Secretary that it voluntarily agrees to participate in the
Federal renewable electricity standard program.
``(11) Retail electric supplier's base amount.--The term
`retail electric supplier's base amount' means the total amount
of electric energy sold by the retail electric supplier,
expressed in terms of kilowatt hours, to electric customers for
purposes other than resale during the most recent calendar year
for which information is available, excluding--
``(A) electric energy that is not incremental
hydropower generated by a hydroelectric facility; and
``(B) electricity generated through the
incineration of municipal solid waste.
``(b) Compliance.--For each calendar year beginning in calendar
year 2010, each retail electric supplier shall meet the requirements of
subsection (c) by submitting to the Secretary, not later than April 1
of the following calendar year, one or more of the following:
``(1) Federal renewable energy credits issued under
subsection (e).
``(2) Federal energy efficiency credits issued under
subsection (i), except that Federal energy efficiency credits
may not be used to meet more than 27 percent of the
requirements of subsection (c) in any calendar year. Energy
efficiency credits may only be used for compliance in a State
where the Governor has petitioned the Secretary pursuant to
subjection (i)(2).
``(3) Certification of the renewable energy generated and
electricity savings pursuant to the funds associated with State
compliance payments as specified in subsection (e)(3)(G).
``(4) Alternative compliance payments pursuant to
subsection (j).
``(c) Required Annual Percentage.--For calendar years 2010 through
2039, the required annual percentage of the retail electric supplier's
base amount that shall be generated from renewable energy resources, or
otherwise credited towards such percentage requirement pursuant to
subsection (d), shall be the percentage specified in the following
table:
Required annual
``Calendar Years percentage
2010................................................... 2.75
2011................................................... 2.75
2012................................................... 3.75
2013................................................... 4.5
2014................................................... 5.5
2015................................................... 6.5
2016................................................... 7.5
2017................................................... 8.25
2018................................................... 10.25
2019................................................... 12.25
2020 and thereafter through 2039....................... 15
``(d) Renewable Energy and Energy Efficiency Credits.--(1) A retail
electric supplier may satisfy the requirements of subsection (b)(1)
through the submission of Federal renewable energy credits--
``(A) issued to the retail electric supplier under
subsection (e);
``(B) obtained by purchase or exchange under subsection (f)
or (g); or
``(C) borrowed under subsection (h).
``(2) A retail electric supplier may satisfy the requirements of
subsection (b)(2) through the submission of Federal energy efficiency
credits issued to the retail electric supplier obtained by purchase or
exchange pursuant to subsection (i).
``(3) A Federal renewable energy credit may be counted toward
compliance with subsection (b)(1) only once. A Federal energy
efficiency credit may be counted toward compliance with subsection
(b)(2) only once.
``(e) Issuance of Federal Renewable Energy Credits.--(1) The
Secretary shall establish by rule, not later than 1 year after the date
of enactment of this section, a program to verify and issue Federal
renewable energy credits to generators of renewable energy, track their
sale, exchange, and retirement and to enforce the requirements of this
section. To the extent possible, in establishing such program, the
Secretary shall rely upon existing and emerging State or regional
tracking systems that issue and track non-Federal renewable energy
credits.
``(2) An entity that generates electric energy through the use of a
renewable energy resource may apply to the Secretary for the issuance
of renewable energy credits. The applicant must demonstrate that the
electric energy will be transmitted onto the grid or, in the case of a
generation offset, that the electric energy offset would have otherwise
been consumed on site. The application shall indicate--
``(A) the type of renewable energy resource used to produce
the electricity;
``(B) the location where the electric energy was produced;
and
``(C) any other information the Secretary determines
appropriate.
``(3)(A) Except as provided in subparagraphs (B), (C), and (D), the
Secretary shall issue to a generator of electric energy one Federal
renewable energy credit for each kilowatt hour of electric energy
generated by the use of a renewable energy resource at an eligible
facility.
``(B) For purpose of compliance with this section, Federal
renewable energy credits for incremental hydropower shall be based, on
the increase in average annual generation resulting from the efficiency
improvements or capacity additions. The incremental generation shall be
calculated using the same water flow information used to determine a
historic average annual generation baseline for the hydroelectric
facility and certified by the Secretary or the Federal Energy
Regulatory Commission. The calculation of the Federal renewable energy
credits for incremental hydropower shall not be based on any
operational changes at the hydroelectric facility not directly
associated with the efficiency improvements or capacity additions.
``(C) The Secretary shall issue 2 renewable energy credits for each
kilowatt hour of electric energy generated and supplied to the grid in
that calendar year through the use of a renewable energy resource at an
eligible facility located on Indian land. For purposes of this
paragraph, renewable energy generated by biomass cofired with other
fuels is eligible for two credits only if the biomass was grown on such
land.
``(D) For electric energy generated by a renewable energy resource
at an on-site eligible facility no larger than one megawatt in capacity
and used to offset part or all of the customer's requirements for
electric energy, the Secretary shall issue 3 renewable energy credits
to such customer for each kilowatt hour generated.
``(E) In the case of an on-site eligible facility on Indian land no
more than 3 credits per kilowatt hour may be issued.
``(F) If both a renewable energy resource and a non-renewable
energy resource are used to generate the electric energy, the Secretary
shall issue the Federal renewable energy credits based on the
proportion of the renewable energy resources used.
``(G) When a generator has sold electric energy generated through
the use of a renewable energy resource to a retail electric supplier
under a contract for power from an existing facility, and the contract
has not determined ownership of the Federal renewable energy credits
associated with such generation, the Secretary shall issue such Federal
renewable energy credits to the retail electric supplier for the
duration of the contract.
``(H) Payments made by a retail electricity supplier, directly or
indirectly, to a State for compliance with a State renewable portfolio
standard program, or for an alternative compliance mechanism, shall be
valued at one credit per kilowatt hour for the purpose of subsection
(b)(2) based on the amount of electric energy generation from renewable
resources and electricity savings up to 27 percent of the utility's
requirement that results from those payments.
``(f) Existing Facilities.--The Secretary shall ensure that a
retail electric supplier that acquires Federal renewable energy credits
associated with the generation of renewable energy from an existing
facility may use such credits for purpose of its compliance with
subsection (b)(1). Such credits may not be sold, exchanged, or
transferred for the purpose of compliance by another retail electric
supplier.
``(g) Renewable Energy Credit Trading.--(1) A Federal renewable
energy credit, may be sold, transferred, or exchanged by the entity to
whom issued or by any other entity who acquires the Federal renewable
energy credit, except for those renewable energy credits from existing
facilities. A Federal renewable energy credit for any year that is not
submitted to satisfy the minimum renewable generation requirement of
subsection (c) for that year may be carried forward for use pursuant to
subsection (b)(1) within the next 3 years.
``(2) A federally owned or cooperatively owned utility, or a State
or subdivision thereof, that is not a retail electric supplier that
generates electric energy by the use of a renewable energy resource at
an eligible facility may only sell, transfer or exchange a Federal
renewable energy credit to a cooperatively owned utility or an agency,
authority, or instrumentality of a State or political subdivision of a
State that is a retail electric supplier that has acquired the electric
energy associated with the credit.
``(3) The Secretary may delegate to an appropriate market-making
entity the administration of a national tradeable renewable energy
credit market and a national energy efficiency credit market for
purposes of creating a transparent national market for the sale or
trade of renewable energy credits and a transparent national market for
the sale or trade of Federal energy efficiency credits.
``(h) Renewable Energy Credit Borrowing.--At any time before the
end of calendar year 2012, a retail electric supplier that has reason
to believe it will not be able to fully comply with subsection (b)
may--
``(1) submit a plan to the Secretary demonstrating that the
retail electric supplier will earn sufficient Federal renewable
energy credits and Federal energy efficiency credits within the
next 3 calendar years which, when taken into account, will
enable the retail electric supplier to meet the requirements of
subsection (b) for calendar year 2012 and the subsequent
calendar years involved; and
``(2) upon the approval of the plan by the Secretary, apply
Federal renewable energy credits and Federal energy efficiency
credits that the plan demonstrates will be earned within the
next 3 calendar years to meet the requirements of subsection
(b) for each calendar year involved.
The retail electric supplier must repay all of the borrowed Federal
renewable energy credits and Federal energy efficiency credits by
submitting an equivalent number of Federal renewable energy credits and
Federal energy efficiency credits, in addition to those otherwise
required under subsection (b), by calendar year 2020 or any earlier
deadlines specified in the approved plan. Failure to repay the borrowed
Federal renewable energy credits and Federal energy efficiency credits
shall subject the retail electric supplier to civil penalties under
subsection (i) for violation of the requirements of subsection (b) for
each calendar year involved.
``(i) Energy Efficiency Credits.--
``(1) Definitions.--In this subsection--
``(A) Customer facility savings.--The term
`customer facility savings' means a reduction in end-
use electricity at a facility of an end-use consumer of
electricity served by a retail electric supplier, as
compared to--
``(i) consumption at the facility during a
base year;
``(ii) in the case of new equipment
(regardless of whether the new equipment
replaces existing equipment at the end of the
useful life of the existing equipment),
consumption by the new equipment of average
efficiency; or
``(iii) in the case of a new facility,
consumption at a reference facility.
``(B) Electricity savings.--The term `electricity
savings' means--
``(i) customer facility savings of
electricity consumption adjusted to reflect any
associated increase in fuel consumption at the
facility;
``(ii) reductions in distribution system
losses of electricity achieved by a retail
electricity distributor, as compared to losses
during the base years;
``(iii) the output of new combined heat and
power systems, to the extent provided under
paragraph (5); and
``(iv) recycled energy savings.
``(C) Qualifying electricity savings.--The term
`qualifying electricity savings' means electricity
savings that meet the measurement and verification
requirements of paragraph (4).
``(D) Recycled energy savings.--The term `recycled
energy savings' means a reduction in electricity
consumption that is attributable to electrical or
mechanical power, or both, produced by modifying an
industrial or commercial system that was in operation
before July 1, 2007, in order to recapture energy that
would otherwise be wasted.
``(2) Petition.--The Governor of a State may petition the
Secretary to allow up to 27 percent of the requirements of a
retail electric supplier under subsection (c) in the State to
be met by submitting Federal energy efficiency credits issued
pursuant to this subsection.
``(3) Issuance of credits.--(A) Upon petition by the
Governor, the Secretary shall issue energy efficiency credits
for electricity savings described in subparagraph (B) achieved
in States described in paragraph (2) in accordance with this
subsection.
``(B) In accordance with regulations promulgated by the
Secretary, the Secretary shall issue credits for--
``(i) qualified electricity savings achieved by a
retail electric supplier in a calendar year; and
``(ii) qualified electricity savings achieved by
other entities if--
``(I) the measures used to achieve the
qualifying electricity savings were installed
or placed in operation by the entity seeking
the credit or the designated agent of the
entity; and
``(II) no retail electric supplier paid a
substantial portion of the cost of achieving
the qualified electricity savings (unless the
retail electric supplier has waived any
entitlement to the credit).
``(4) Measurement and verification of electricity
savings.--Not later than June 30, 2009, the Secretary shall
promulgate regulations regarding the measurement and
verification of electricity savings under this subsection,
including regulations covering--
``(A) procedures and standards for defining and
measuring electricity savings that will be eligible to
receive credits under paragraph (3), which shall--
``(i) specify the types of energy
efficiency and energy conservation that will be
eligible for the credits;
``(ii) require that energy consumption for
customer facilities or portions of facilities
in the applicable base and current years be
adjusted, as appropriate, to account for
changes in weather, level of production, and
building area;
``(iii) account for the useful life of
electricity savings measures;
``(iv) include specified electricity
savings values for specific, commonly-used
efficiency measures;
``(v) specify the extent to which
electricity savings attributable to measures
carried out before the date of enactment of
this section are eligible to receive credits
under this subsection; and
``(vi) exclude electricity savings that (I)
are not properly attributable to measures
carried out by the entity seeking the credit;
or (II) have already been credited under this
section to another entity;
``(B) procedures and standards for third-party
verification of reported electricity savings; and
``(C) such requirements for information, reports,
and access to facilities as may be necessary to carry
out this subsection.
``(5) Combined heat and power.--Under regulations
promulgated by the Secretary, the increment of electricity
output of a new combined heat and power system that is
attributable to the higher efficiency of the combined system
(as compared to the efficiency of separate production of the
electric and thermal outputs), shall be considered electricity
savings under this subsection.
``(j) Enforcement.--A retail electric supplier that does not comply
with subsection (b) shall be liable for the payment of a civil penalty.
That penalty shall be calculated on the basis of the number of
kilowatt-hours represented by the retail electric supplier's failure to
comply with subsection (b), multiplied by the lesser of 4.5 cents
(adjusted for inflation for such calendar year, based on the Gross
Domestic Product Implicit Price Deflator) or 300 percent of the average
market value of Federal renewable energy credits and energy efficiency
credits for the compliance period. Any such penalty shall be due and
payable without demand to the Secretary as provided in the regulations
issued under subsection (e).
``(k) Alternative Compliance Payments.--The Secretary shall accept
payment equal to the lesser of:
``(1) 200 percent of the average market value of Federal
renewable energy credits and Federal energy efficiency credits
for the applicable compliance period; or
``(2) 2.5 cents per kilowatt hour adjusted on January 1 of
each year following calendar year 2006 based on the Gross
Domestic Product Implicit Price Deflator,
as a means of compliance under subsection (b)(4)
``(l) Information Collection.--The Secretary may collect the
information necessary to verify and audit--
``(1) the annual renewable energy generation of any retail
electric supplier, Federal renewable energy credits submitted
by a retail electric supplier pursuant to subsection (b)(1) and
Federal energy efficiency credits submitted by a retail
electric supplier pursuant to subsection (b)(2);
``(2) annual electricity savings achieved pursuant to
subsection (i);
``(3) the validity of Federal renewable energy credits
submitted for compliance by a retail electric supplier to the
Secretary; and
``(4) the quantity of electricity sales of all retail
electric suppliers.
``(m) Environmental Savings Clause.--Incremental hydropower shall
be subject to all applicable environmental laws and licensing and
regulatory requirements.
``(n) State Programs.--(1) Nothing in this section diminishes any
authority of a State or political subdivision of a State to--
``(A) adopt or enforce any law or regulation respecting
renewable energy or energy efficiency, including but not
limited to programs that exceed the required amount of
renewable energy or energy efficiency under this section, or
``(B) regulate the acquisition and disposition of Federal
renewable energy credits and Federal energy efficiency credits
by retail electric suppliers.
No law or regulation referred to in subparagraph (A) shall
relieve any person of any requirement otherwise applicable
under this section. The Secretary, in consultation with States
having renewable energy programs and energy efficiency
programs, shall preserve the integrity of such State programs,
including programs that exceed the required amount of renewable
energy and energy efficiency under this section, and shall
facilitate coordination between the Federal program and State
programs.
``(2) In the rule establishing the program under this section, the
Secretary shall incorporate common elements of existing renewable
energy and energy efficiency programs, including State programs, to
ensure administrative ease, market transparency, and effective
enforcement. The Secretary shall work with the States to minimize
administrative burdens and costs to retail electric suppliers.
``(o) Recovery of Costs.--An electric utility whose sales of
electric energy are subject to rate regulation, including any utility
whose rates are regulated by the Commission and any State regulated
electric utility, shall not be denied the opportunity to recover the
full amount of the prudently incurred incremental cost of renewable
energy and energy efficiency obtained to comply with the requirements
of subsection (b). For purposes of this subsection, the definitions in
section 3 of this Act shall apply to the terms electric utility, State
regulated electric utility, State agency, Commission, and State
regulatory authority.
``(p) Program Review.--The Secretary shall enter into a contract
with the National Academy of Sciences to conduct a comprehensive
evaluation of all aspects of the program established under this
section, within 8 years of enactment of this section. The study shall
include an evaluation of--
``(1) the effectiveness of the program in increasing the
market penetration and lowering the cost of the eligible
renewable energy and energy efficiency technologies;
``(2) the opportunities for any additional technologies and
sources of renewable energy and energy efficiency emerging
since enactment of this section;
``(3) the impact on the regional diversity and reliability
of supply sources, including the power quality benefits of
distributed generation;
``(4) the regional resource development relative to
renewable potential and reasons for any under investment in
renewable resources; and
``(5) the net cost/benefit of the renewable electricity
standard to the national and State economies, including retail
power costs, economic development benefits of investment,
avoided costs related to environmental and congestion
mitigation investments that would otherwise have been required,
impact on natural gas demand and price, effectiveness of green
marketing programs at reducing the cost of renewable resources.
The Secretary shall transmit the results of the evaluation and any
recommendations for modifications and improvements to the program to
Congress not later than January 1, 2016.
``(q) State Renewable Energy and Energy Efficiency Account
Program.--(1) There is established in the Treasury a State renewable
energy and energy efficiency account program.
``(2) All money collected by the Secretary from the alternative
compliance payments under subsection (k) shall be deposited into the
State renewable energy and energy efficiency account established
pursuant to this subsection.
``(3) Proceeds deposited in the State renewable energy and energy
efficiency account shall be used by the Secretary, subject to annual
appropriations, for a program to provide grants to the State agency
responsible for administering a fund to promote renewable energy
generation and energy efficiency for customers of the State, or an
alternative agency designated by the State, or if no such agency
exists, to the State agency developing State energy conservation plans
under section 363 of the Energy Policy and Conservation Act (42 U.S.C.
6322) for the purposes of promoting renewable energy production and
providing energy assistance and weatherization services to low-income
consumers.
``(4) The Secretary may issue guidelines and criteria for grants
awarded under this subsection. At least 75 percent of the funds
provided to each State shall be used for promoting renewable energy
production and energy efficiency through grants, production incentives
or other state-approved funding mechanisms. The funds shall be
allocated to the States on the basis of retail electric sales subject
to the Renewable electricity Standard under this section or through
voluntary participation. State agencies receiving grants under this
section shall maintain such records and evidence of compliance as the
Secretary may require.''.
(b) Table of Contents.--The table of contents for such title is
amended by adding the following new item at the end:
``Sec. 610. Federal renewable electricity standard.''.
(c) Sunset.--Section 610 of such title and the item relating to
such section 610 in the table of contents for such title are each
repealed as of December 31, 2039.
TITLE VI--GREEN RESOURCES FOR ENERGY EFFICIENT NEIGHBORHOODS
SEC. 601. SHORT TITLE AND TABLE OF CONTENTS.
This title may be cited as the ``Green Resources for Energy
Efficient Neighborhoods Act of 2008'' or the ``GREEN Act of 2008''.
SEC. 602. DEFINITIONS.
For purposes of this title, the following definitions shall apply:
(1) Green building standards.--The term ``green building
standards'' means standards to require use of sustainable
design principles to reduce the use of nonrenewable resources,
encourage energy-efficient construction and rehabilitation and
the use of renewable energy resources, minimize the impact of
development on the environment, and improve indoor air quality.
(2) HUD.--The term ``HUD'' means the Department of Housing
and Urban Development.
(3) HUD assistance.--The term ``HUD assistance'' means
financial assistance that is awarded, competitively or
noncompetitively, allocated by formula, or provided by HUD
through loan insurance or guarantee.
(4) Nonresidential structure.--The term ``nonresidential
structures'' means only nonresidential structures that are
appurtenant to single family or multifamily housing residential
structures, or those that are funded by the Secretary of
Housing and Urban Development through the HUD Community
Development Block Grant program.
(5) Secretary.--The term ``Secretary'', unless otherwise
specified, means the Secretary of Housing and Urban
Development.
SEC. 603. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION INCENTIVES
FOR HUD PROGRAMS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall issue such regulations as
may be necessary to establish annual energy efficiency participation
incentives to encourage participants in programs administered by the
Secretary, including recipients under programs for which HUD assistance
is provided, to achieve substantial improvements in energy efficiency.
(b) Requirement for Appropriation of Funds.--The requirement under
subsection (a) for the Secretary to provide annual energy efficiency
participation incentives pursuant to the provisions of this title shall
be subject to the annual appropriation of necessary funds.
SEC. 604. MINIMUM HUD ENERGY EFFICIENCY STANDARDS AND STANDARDS FOR
ADDITIONAL CREDIT.
(a) Minimum HUD Standard.--
(1) Residential structures.--A residential single family or
multifamily structure shall be considered to comply with the
energy efficiency requirements under this subsection if--
(A) the structure complies with the applicable
provisions of the American Society of Heating,
Refrigerating, and Air-Conditioning Engineers Standard
90.1-2007, as such standard or successor standard is in
effect for purposes of this section pursuant subsection
(c);
(B) the structure complies with the applicable
provisions of the 2006 International Energy
Conservation Code, as such standard or successor
standard is in effect for purposes of this section
pursuant subsection (c);
(C) in the case only of an existing structure,
where determined cost effective, the structure has
undergone rehabilitation or improvements, completed
after the date of the enactment of this Act, and the
energy consumption for the structure has been reduced
by at least 20 percent from the previous level of
consumption, as determined in accordance with energy
audits performed both before and after any
rehabilitation or improvements undertaken to reduce
such consumption; or
(D) the structure complies with the applicable
provisions of such other energy efficiency
requirements, standards, checklists, or ratings systems
as the Secretary may adopt and apply by regulation, as
may be necessary, for purposes of this section for
specific types of residential single family or
multifamily structures or otherwise, except that the
Secretary shall make a determination regarding whether
to adopt and apply any such requirements, standards,
checklists, or rating system for purposes of this
section not later than the expiration of the 180-day
period beginning upon the date of receipt of any
written request, made in such form as the Secretary
shall provide, for such adoption and application.
In addition to compliance with any of subparagraphs (A) through
(D), the Secretary shall by regulation require, for any newly
constructed residential single family or multifamily structure
to be considered to comply with the energy efficiency
requirements under this subsection, that the structure have
appropriate electrical outlets with the facility and capacity
to recharge a standard electric passenger vehicle, including an
electric hybrid vehicle, where such vehicle would normally be
parked.
(2) Nonresidential structures.--For purposes of this
section, the Secretary shall identify and adopt by regulation,
as may be necessary, energy efficiency requirements, standards,
checklists, or rating systems applicable to nonresidential
structures that are constructed or rehabilitated with HUD
assistance. A nonresidential structure shall be considered to
comply with the energy efficiency requirements under this
subsection if the structure complies with the applicable
provisions of any such energy efficiency requirements,
standards, checklist, or rating systems identified and adopted
by the Secretary pursuant to this paragraph, as such standards
are in effect for purposes of this section pursuant to
subsection (c).
(b) Additional Credit for Compliance With Enhanced Energy
Efficiency Standards.--
(1) In general.--In addition to compliance with the energy
efficiency requirements under subsection (a), a residential or
nonresidential structure shall be considered to comply with the
enhanced energy efficiency and conservation standards or the
green building standards under this subsection, to the extent
that such structure complies with the applicable provisions of
the standards under paragraph (2) or (3), respectively (as such
standards are in effect for purposes of this section, pursuant
to subsection (c)), in a manner that is not required for
compliance with the energy efficiency requirements under
subsection (a) and subject to the Secretary's determination of
which standards are applicable to which structures.
(2) Energy efficiency and conservation standards.--The
energy efficiency and conservation standards under this
paragraph are as follows:
(A) Residential structures.--With respect to
residential structures:
(i) New construction.--For new
construction, the Energy Star standards
established by the Environmental Protection
Agency, as such standards are in effect for
purposes of this subsection pursuant to
subsection (c);
(ii) Existing structures.--For existing
structures, a reduction in energy consumption
from the previous level of consumption for the
structure, as determined in accordance with
energy audits performed both before and after
any rehabilitation or improvements undertaken
to reduce such consumption, that exceeds the
reduction necessary for compliance with the
energy efficiency requirement under subsection
(a)(1)(C).
(B) Nonresidential structures.--With respect to
nonresidential structures, such energy efficiency and
conservation requirements, standards, checklists, or
rating systems for nonresidential structures as the
Secretary shall identify and adopt by regulation, as
may be necessary, for purposes of this paragraph.
(3) Green building standards.--The green building standards
under this paragraph are as follows:
(A) The national Green Communities criteria
checklist for residential construction that provides
criteria for the design, development, and operation of
affordable housing, as such checklist or successor
checklist is in effect for purposes of this section
pursuant to subsection (c).
(B) The gold certification level for the LEED for
New Construction rating system, the LEED for Homes
rating system, the LEED for Core and Shell rating
system, as applicable, as such systems or successor
systems are in effect for purposes of this section
pursuant to subsection (c).
(C) The Green Globes assessment and rating system
of the Green Buildings Initiative.
(D) For manufactured housing, energy star rating
with respect to fixtures, appliances, and equipment in
such housing, as such standard or successor standard is
in effect for purposes of this section pursuant to
subsection (c).
(E) The National Green Building Standard, but such
standard shall apply for purposes of this paragraph
only--
(i) if such standard is ratified under the
American National Standards Institute process;
(ii) upon expiration of the 180-day period
beginning upon such ratification; and
(iii) if, during such 180-day period, the
Secretary of Housing and Urban Development does
not reject the applicability of such standard
for purposes of this paragraph.
(F) Any other requirements, standards, checklists,
or rating systems for green building or sustainability
as the Secretary may identify and adopt by regulation,
as may be necessary for purposes of this paragraph,
except that the Secretary shall make a determination
regarding whether to adopt and apply any such
requirements, standards, checklist, or rating system
for purposes of this section not later than the
expiration of the 180-day period beginning upon date of
receipt of any written request, made in such form as
the Secretary shall provide, for such adoption and
application.
(4) Green building.--For purposes of this subsection, the
term ``green building'' means, with respect to standards for
structures, standards to require use of sustainable design
principles to reduce the use of nonrenewable resources,
minimize the impact of development on the environment, and to
improve indoor air quality.
(5) Energy audits.--The Secretary shall establish standards
and requirements for energy audits for purposes of paragraph
(2)(A)(ii) and, in establishing such standards, may consult
with any advisory committees established pursuant to section
605(c)(2) of this title.
(c) Applicability and Updating of Standards.--
(1) Applicability.--Except as provided in paragraph (2),
the requirements, standards, checklists, and rating systems
referred to in subsections (a) and (b) that are in effect for
purposes of this section are such requirements, standards,
checklists, and systems are as in existence upon the date of
the enactment of this Act.
(2) Updating.--For purposes of this section, the Secretary
may adopt and apply by regulation, as may be necessary, future
amendments and supplements to, and editions of, the
requirements, standards, checklists, and rating systems
referred to in subsections (a) and (b).
SEC. 605. ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION PROGRAM FOR
MULTIFAMILY HOUSING PROJECTS ASSISTED WITH PROJECT-BASED
RENTAL ASSISTANCE.
(a) Authority.--For multifamily housing projects for which project-
based rental assistance is provided under a covered multifamily
assistance program, the Secretary shall, subject to the availability of
amounts provided in advance in appropriation Acts, carry out a program
to demonstrate the effectiveness of funding a portion of the costs of
meeting the enhanced energy efficiency standards under section 604(b).
At the discretion of the Secretary, the demonstration program may
include incentives for housing that is assisted with Indian housing
block grants provided pursuant to the Native American Housing
Assistance and Self-Determination Act of 1996, but only to the extent
that such inclusion does not violate such Act, its regulations, and the
goal of such Act of tribal self-determination.
(b) Goals.--The demonstration program under this section shall be
carried out in a manner that--
(1) protects the financial interests of the Federal
Government;
(2) reduces the proportion of funds provided by the Federal
Government and by owners and residents of multifamily housing
projects that are used for costs of utilities for the projects;
(3) encourages energy efficiency and conservation by owners
and residents of multifamily housing projects and installation
of renewable energy improvements, such as improvements
providing for use of solar, wind, geothermal, or biomass energy
sources;
(4) creates incentives for project owners to carry out such
energy efficiency renovations and improvements by allowing a
portion of the savings in operating costs resulting from such
renovations and improvements to be retained by the project
owner, notwithstanding otherwise applicable limitations on
dividends;
(5) promotes the installation, in existing residential
buildings, of energy-efficient and cost-effective improvements
and renewable energy improvements, such as improvements
providing for use of solar, wind, geothermal, or biomass energy
sources;
(6) tests the efficacy of a variety of energy efficiency
measures for multifamily housing projects of various sizes and
in various geographic locations;
(7) tests methods for addressing the various, and often
competing, incentives that impede owners and residents of
multifamily housing projects from working together to achieve
energy efficiency or conservation; and
(8) creates a database of energy efficiency and
conservation, and renewable energy, techniques, energy savings
management practices, and energy efficiency and conservation
financing vehicles.
(c) Approaches.--In carrying out the demonstration program under
this section, the Secretary may--
(1) enter into agreements with the Building America Program
of the Department of Energy and other consensus committees
under which such programs, partnerships, or committees assume
some or all of the functions, obligations, and benefits of the
Secretary with respect to energy savings;
(2) establish advisory committees to advise the Secretary
and any such third party partners on technological and other
developments in the area of energy efficiency and the creation
of an energy efficiency and conservation credit facility and
other financing opportunities, which committees shall include
representatives of homebuilders, realtors, architects,
nonprofit housing organizations, environmental protection
organizations, renewable energy organizations, and advocacy
organizations for the elderly and persons with disabilities;
any advisory committees established pursuant to this paragraph
shall not be subject to the Federal Advisory Committee Act (5
U.S.C. App.);
(3) approve, for a period not to exceed 10 years,
additional adjustments in the maximum monthly rents or
additional project rental assistance, or additional Indian
housing block grant funds under the Native American Housing
Assistance and Self-Determination Act of 1996, as applicable,
for dwelling units in multifamily housing projects that are
provided project-based rental assistance under a covered
multifamily assistance program, in such amounts as may be
necessary to amortize a portion of the cost of energy
efficiency and conservation measures for such projects;
(4) develop a competitive process for the award of such
additional assistance for multifamily housing projects seeking
to implement energy efficiency, renewable energy sources, or
conservation measures; and
(5) waive or modify any existing statutory or regulatory
provision that would otherwise impair the implementation or
effectiveness of the demonstration program under this section,
including provisions relating to methods for rent adjustments,
comparability standards, maximum rent schedules, and utility
allowances; notwithstanding the preceding provisions of this
paragraph, the Secretary may not waive any statutory
requirement relating to fair housing, nondiscrimination, labor
standards, or the environment, except pursuant to existing
authority to waive non-statutory environmental and other
applicable requirements.
(d) Requirement.--During the 4-year period beginning 12 months
after the date of the enactment of this Act, the Secretary shall carry
out demonstration programs under this section with respect to not fewer
than 50,000 dwelling units.
(e) Selection.--
(1) Scope.--In order to provide a broad and representative
profile for use in designing a program which can become
operational and effective nationwide, the Secretary shall carry
out the demonstration program under this section with respect
to dwelling units located in a wide variety of geographic areas
and project types assisted by the various covered multifamily
assistance programs and using a variety of energy efficiency
and conservation and funding techniques to reflect differences
in climate, types of dwelling units and technical and
scientific methodologies, and financing options. The Secretary
shall ensure that the geographic areas included in the
demonstration program include dwelling units on Indian lands
(as such term is defined in section 2601 of the Energy Policy
Act of 1992 (25 U.S.C. 3501), to the extent that dwelling units
on Indian land have the type of residential structures that are
the focus of the demonstration program.
(2) Priority.--The Secretary shall provide priority for
selection for participation in the program under this section
based on the extent to which, as a result of assistance
provided, the project will comply with the energy efficiency
standards under subsection (a), (b), or (c) of section 604 of
this title.
(f) Use of Existing Partnerships.--To the extent feasible, the
Secretary shall--
(1) utilize the Partnership for Advancing Technology in
Housing of the Department of Housing and Urban Development to
assist in carrying out the requirements of this section and to
provide education and outreach regarding the demonstration
program authorized under this section; and
(2) consult with the Secretary of Energy, the Administrator
of the Environmental Protection Agency, and the Secretary of
the Army regarding utilizing the Building America Program of
the Department of Energy, the Energy Star Program, and the Army
Corps of Engineers, respectively, to determine the manner in
which they might assist in carrying out the goals of this
section and providing education and outreach regarding the
demonstration program authorized under this section.
(g) Reports.--
(1) Annual.--Not later than the expiration of the 2-year
beginning upon the date of the enactment of this Act, and for
each year thereafter during the term of the demonstration
program, the Secretary shall submit a report to the Congress
annually that describes and assesses the demonstration program
under this section.
(2) Final.--Not later than six months after the expiration
of the 4-year period described in subsection (d), the Secretary
shall submit a final report to the Congress assessing the
demonstration program, which--
(A) shall assess the potential for expanding the
demonstration program on a nationwide basis; and
(B) shall include descriptions of--
(i) the size of each multifamily housing
project for which assistance was provided under
the program;
(ii) the geographic location of each
project assisted, by State and region;
(iii) the criteria used to select the
projects for which assistance is provided under
the program;
(iv) the energy efficiency and conservation
measures and financing sources used for each
project that is assisted under the program;
(v) the difference, before and during
participation in the demonstration program, in
the amount of the monthly assistance payments
under the covered multifamily assistance
program for each project assisted under the
program;
(vi) the average length of the term of the
such assistance provided under the program for
a project;
(vii) the aggregate amount of savings
generated by the demonstration program and the
amount of savings expected to be generated by
the program over time on a per-unit and
aggregate program basis;
(viii) the functions performed in
connection with the implementation of the
demonstration program that were transferred or
contracted out to any third parties;
(ix) an evaluation of the overall successes
and failures of the demonstration program; and
(x) recommendations for any actions to be
taken as a result of the such successes and
failures.
(3) Contents.--Each annual report pursuant to paragraph (1)
and the final report pursuant to paragraph (2) shall include--
(A) a description of the status of each multifamily
housing project selected for participation in the
demonstration program under this section; and
(B) findings from the program and recommendations
for any legislative actions.
(h) Covered Multifamily Assistance Program.--For purposes of this
section, the term ``covered multifamily assistance program'' means--
(1) the program under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) for project-based rental
assistance;
(2) the program under section 202 of the Housing Act of
1959 (12 U.S.C. 1701q) for assistance for supportive housing
for the elderly;
(3) the program under section 811 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013) for supportive
housing for persons with disabilities; and
(4) the program for assistance under the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4111).
(i) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for each fiscal year
in which the demonstration program under this section is carried out.
(j) Regulations.--Not later than the expiration of the 180-day
period beginning on the date of the enactment of this Act, the
Secretary shall issue any regulations necessary to carry out this
section.
SEC. 606. ADDITIONAL CREDIT FOR FANNIE MAE AND FREDDIE MAC HOUSING
GOALS FOR ENERGY EFFICIENT MORTGAGES.
Section 1336(a) of the Housing and Community Development Act of
1992 (12 U.S.C. 4566(a)), as amended by the Federal Housing Finance
Regulatory Reform Act of 2008 (Public Law 110-289; 122 Stat. 2654), is
amended--
(1) in paragraph (2), by striking ``paragraph (5)'' and
inserting ``paragraphs (5) and (6)''; and
(2) by adding at the end the following new paragraph:
``(6) Additional credit.--
``(A) In general.--In assigning credit toward
achievement under this section of the housing goals for
mortgage purchase activities of the enterprises, the
Director shall assign--
``(i) more than 125 percent credit, for
such purchases that both--
``(I) comply with the requirements
of such goals; and
``(II) support housing that meets
the energy efficiency standards under
section 604(a) of the Green Resources
for Energy Efficient Neighborhoods Act
of 2008; and
``(ii) credit in addition to credit under
clause (i), for purchases that both--
``(I) comply with the requirements
of such goals, and
``(II) support housing that
complies with the enhanced energy
efficiency and conservation standards,
or the green building standards, under
section 604(b) of such Act, or both,
and such additional credit shall be given based
on the extent to which the housing supported
with such purchases complies with such
standards.
``(B) Treatment of additional credit.--The
availability of additional credit under this paragraph
shall not be used to increase any housing goal,
subgoal, or target established under this subpart.''.
SEC. 607. DUTY TO SERVE UNDERSERVED MARKETS FOR ENERGY-EFFICIENT AND
LOCATION-EFFICIENT MORTGAGES.
Section 1335 of Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (12 U.S.C. 4565), as amended by the Federal
Housing Finance Regulatory Reform Act of 2008 (Public Law 110-289; 122
Stat. 2654), is amended--
(1) in subsection (a)(1), by adding at the end the
following new subparagraph:
``(D) Markets for energy-efficient and location-
efficient mortgages.--
``(i) Duty.--Subject to clause (ii), the
enterprise shall develop loan products and
flexible underwriting guidelines to facilitate
a secondary market for energy-efficient and
location-efficient mortgages on housing for
very low-, low-, and moderate income families,
and for second and junior mortgages made for
purposes of energy efficiency or renewable
energy improvements, or both.
``(ii) Authority to suspend.--
Notwithstanding any other provision of this
section, the Director may suspend the
applicability of the requirement under clause
(i) with respect to an enterprise, for such
period as is necessary, if the Director
determines that exigent circumstances exist and
such suspension is appropriate to ensure the
safety and soundness of the portfolio holdings
of the enterprise.'';
(2) by adding at the end the following new subsection:
``(e) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Energy-efficient mortgage.--The term `energy
efficient mortgage' means a mortgage loan under which the
income of the borrower, for purposes of qualification for such
loan, is considered to be increased by not less than $1 for
each $1 of savings projected to be realized by the borrower as
a result of cost-effective energy saving design, construction
or improvements (including use of renewable energy sources,
such as solar, geothermal, biomass, and wind, super-insulation,
energy-saving windows, insulating glass and film, and radiant
barrier) for the home for which the loan is made.
``(2) Location-efficient mortgage.--The term `location
efficient mortgage' means a mortgage loan under which--
``(A) the income of the borrower, for purposes of
qualification for such loan, is considered to be
increased by not less than $1 for each $1 of savings
projected to be realized by the borrower because the
location of the home for which loan is made will result
in decreased transportation costs for the household of
the borrower; or
``(B) the sum of the principal, interest, taxes,
and insurance due under the mortgage loan is decreased
by not less than $1 for each $1 of savings projected to
be realized by the borrower because the location of the
home for which loan is made will result in decreased
transportation costs for the household of the
borrower.''.
SEC. 608. CONSIDERATION OF ENERGY EFFICIENCY UNDER FHA MORTGAGE
INSURANCE PROGRAMS AND NATIVE AMERICAN AND NATIVE
HAWAIIAN LOAN GUARANTEE PROGRAMS.
(a) FHA Mortgage Insurance.--
(1) Requirement.--Title V of the National Housing Act is
amended by adding after section 542 (12 U.S.C. 1735f-20) the
following new section:
``SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.
``(a) Underwriting Standards.--The Secretary shall establish a
method to consider, in its underwriting standards for mortgages on
single-family housing meeting the energy efficiency standards under
section 604(a) of the Green Resources for Energy Efficient
Neighborhoods Act of 2008 that are insured under this Act, the impact
that savings on utility costs has on the income of the mortgagor.
``(b) Goal.--It is the sense of the Congress that, in carrying out
this Act, the Secretary should endeavor to insure mortgages on single-
family housing meeting the energy efficiency standards under section
604(a) of the Green Resources for Energy Efficient Neighborhoods Act of
2008 such that at least 50,000 such mortgages are insured during the
period beginning upon the date of the enactment of such Act and ending
on December 31, 2012.''.
(2) Reporting on defaults.--Section 540(b) of the National
Housing Act (12 U.S.C. 1735f-18(b)) is amended by adding at the
end the following new paragraph:
``(3) With respect to each collection period that commences
after December 31, 2011, the total number of mortgages on
single-family housing meeting the energy efficiency standards
under section 604(a) of the Green Resources for Energy
Efficient Neighborhoods Act of 2008 that are insured by the
Secretary during the applicable collection period, the number
of defaults and foreclosures occurring on such mortgages during
such period, the percentage of the total of such mortgages
insured during such period on which defaults and foreclosure
occurred, and the rate for such period of defaults and
foreclosures on such mortgages compared to the overall rate for
such period of defaults and foreclosures on mortgages for
single-family housing insured under this Act by the
Secretary.''.
(b) Indian Housing Loan Guarantees.--
(1) Requirement.--Section 184 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
(A) by redesignating subsection (l) as subsection
(m); and
(B) by inserting after subsection (k) the following
new subsection:
``(l) Consideration of Energy Efficiency.--The Secretary shall
establish a method to consider, in its underwriting standards for loans
for single-family housing meeting the energy efficiency standards under
section 604(a) of the Green Resources for Energy Efficient
Neighborhoods Act of 2008 that are guaranteed under this section, the
impact that savings on utility costs has on the income of the
borrower.''.
(2) Reporting on defaults.--Section 540(b) of the National
Housing Act (12 U.S.C. 1735f-18(b)), as amended by subsection
(a)(2) of this section, is further amended by adding at the end
the following new paragraph:
``(4) With respect to each collection period that commences
after December 31, 2011, the total number of loans guaranteed
under section 184 of the Housing and Community Development Act
of 1992 (12 U.S.C. 1715z-13a) on single-family housing meeting
the enhanced energy efficiency standards under section 604(a)
of the Green Resources for Energy Efficient Neighborhoods Act
of 2008 that are guaranteed by the Secretary during the
applicable collection period, the number of defaults and
foreclosures occurring on such loans during such period, the
percentage of the total of such loans guaranteed during such
period on which defaults and foreclosure occurred, and the rate
for such period of defaults and foreclosures on such loans
compared to the overall rate for such period of defaults and
foreclosures on loans for single-family housing guaranteed
under such section 184 by the Secretary.''.
(c) Native Hawaiian Housing Loan Guarantees.--
(1) Requirement.--Section 184A of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13b) is amended by
inserting after subsection (l) the following new subsection:
``(m) Energy-Efficient Housing Requirement.--The Secretary shall
establish a method to consider, in its underwriting standards for loans
for single-family housing meeting the energy efficiency standards under
section 604(a) of the Green Resources for Energy Efficient
Neighborhoods Act of 2008 that are guaranteed under this section, the
impact that savings on utility costs has on the income of the
borrower.''.
(2) Reporting on defaults.--Section 540(b) of the National
Housing Act (12 U.S.C. 1735f-18(b)), as amended by the
preceding provisions of this section, is further amended by
adding at the end the following new paragraph:
``(5) With respect to each collection period that commences
after December 31, 2011, the total number of loans guaranteed
under section 184A of the Housing and Community Development Act
of 1992 (12 U.S.C. 1715z-13b) on single-family housing meeting
the enhanced energy efficiency standards under section 604(a)
of the Green Resources for Energy Efficient Neighborhoods Act
of 2008 that are guaranteed by the Secretary during the
applicable collection period, the number of defaults and
foreclosures occurring on such loans during such period, the
percentage of the total of such loans guaranteed during such
period on which defaults and foreclosure occurred, and the rate
for such period of defaults and foreclosures on such loans
compared to the overall rate for such period of defaults and
foreclosures on loans for single-family housing guaranteed
under such section 184A by the Secretary.''.
SEC. 609. ENERGY EFFICIENT MORTGAGES EDUCATION AND OUTREACH CAMPAIGN.
Section 106 of the Energy Policy Act of 1992 (12 U.S.C. 1701z-16)
is amended by adding at the end the following new subsection:
``(g) Education and Outreach Campaign.--
``(1) Development of energy-efficient mortgage outreach
program.--
``(A) Commission.--The Secretary, in consultation
and coordination with the Secretary of Energy, the
Secretary of Education, the Secretary of Agriculture,
and the Administrator of the Environmental Protection
Agency, shall establish a commission to develop and
recommend model mortgage products and underwriting
guidelines that provide market-based incentives to
prospective home buyers, lenders, and sellers to
incorporate energy efficiency upgrades in new mortgage
loan transactions.
``(B) Report.--Not later than 24 months after the
date of the enactment of the Green Resources for Energy
Efficient Neighborhoods Act of 2008, the Secretary
shall provide a written report to the Congress on the
results of work of the commission established pursuant
to subparagraph (A) and that identifies model mortgage
products and underwriting guidelines that may encourage
energy efficiency.
``(2) Implementation.--After submission of the report under
paragraph (1)(B), the Secretary, in consultation and
coordination with the Secretary of Energy, the Secretary of
Education, and the Administrator of the Environmental
Protection Agency, shall carry out a public awareness,
education, and outreach campaign based on the findings of the
commission established pursuant to paragraph (1) to inform and
educate residential lenders and prospective borrowers regarding
the availability, benefits, advantages, and terms of energy
efficient mortgages made available pursuant to this section,
energy efficient mortgages that meet the requirements of
section 1335 of the Housing and Community Development Act of
1992 (42 U.S.C. 4565), and other mortgages, including mortgages
for multifamily housing, that have energy improvement features
and to publicize such availability, benefits, advantages, and
terms. Such actions may include entering into a contract with
an appropriate entity to publicize and market such mortgages
through appropriate media.
``(3) Renewable energy home product expos.--The Congress
hereby encourages the Secretary of Housing and Urban
Development to work with appropriate entities to organize and
hold renewable energy expositions that provide an opportunity
for the public to view and learn about renewable energy
products for the home that are currently on the market.
``(4) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $5,000,000 for each of fiscal years 2009 through
2012.''.
SEC. 610. COLLECTION OF INFORMATION ON ENERGY-EFFICIENT AND LOCATION
EFFICIENT MORTGAGES THROUGH HOME MORTGAGE DISCLOSURE ACT.
(a) In General.--Section 304(b) of the Home Mortgage Disclosure Act
of 1975 (12 U.S.C. 2803(b)) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(5) the number and dollar amount of mortgage loans for
single-family housing and for multifamily housing that are
energy-efficient mortgages (as such term is defined in section
1335 of Housing and Community Development Act of 1992); and
``(6) the number and dollar amount of mortgage loans for
single-family housing and for multifamily housing that are
location-efficient mortgages (as such term is defined in
section 1335 of Housing and Community Development Act of
1992).''.
(b) Applicability.--The amendment made by subsection (a) shall
apply with respect to the first calendar year that begins after the
expiration of the 30-day period beginning on the date of the enactment
of this Act.
SEC. 611. ENSURING AVAILABILITY OF HOMEOWNERS INSURANCE FOR HOMES NOT
CONNECTED TO ELECTRICITY GRID.
(a) In General.--In the case of any covered structure (as such term
is defined in subsection (d)), it shall be unlawful for any insurer to
deny homeowners insurance coverage for the structure, or to otherwise
discriminate in the issuance, cancellation, amount of such coverage, or
conditions of such coverage for the structure, based solely and without
any additional actuarial risks upon the fact that the structure is not
connected to, or able to receive electricity service from, any
wholesale or retail electric power provider.
(b) Consideration of Actuarial Risk.--Subsection (a) may not be
construed to prevent any insurer from charging rates for homeowners
insurance coverage for a structure that are based on a good faith
actuarial analysis of the risk associated with the structure not being
connected to, or able to receive electricity service from, any
wholesale or retail electric power provide. Any good faith analysis of
such risk shall include analysis of the manner in which electric power
for the structure is provided.
(c) Insuring Homes and Related Property in Indian Areas.--
Notwithstanding any other provision of law, covered structures located
in Indian areas (as such term is defined in section 4 of the Native
American Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4103)) and constructed or maintained using assistance, loan
guarantees, or other authority under the Native American Housing
Assistance and Self-Determination Act of 1996 may be insured by any
tribally owned self-insurance risk pool approved by the Secretary of
Housing and Urban Development.
(d) Covered Structure.--For purposes of this section, the term
``covered structure'' means a residential structure that--
(1) consists of one to four dwelling units;
(2) is provided power, heat, or electricity from renewable
energy sources (such as solar, wind, geothermal, or biomass) or
a fuel cell; and
(3) is not connected to any wholesale or retail electrical
power grid.
SEC. 612. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT MULTIFAMILY HOUSING.
(a) In General.--The Secretary of Housing and Urban Development
shall establish incentives for increasing the energy efficiency of
multifamily housing that is subject to a mortgage to be insured under
title II of the National Housing Act (12 U.S.C. 1707 et seq.) so that
the housing meets the energy efficiency standards under section 604(a)
of this title and incentives to encourage compliance of such housing
with the energy efficiency and conservation standards, and the green
building standards, under section 604(b) of this title, to the extent
that such incentives are based on the impact that savings on utility
costs has on the operating costs of the housing, as determined by the
Secretary.
(b) Incentives.--Such incentives may include, for any such
multifamily housing that complies with the energy efficiency standards
under section 604(a)--
(1) providing a discount on the chargeable premiums for the
mortgage insurance for such housing from the amount otherwise
chargeable for such mortgage insurance;
(2) allowing mortgages to exceed the dollar amount limits
otherwise applicable under law to the extent such additional
amounts are used to finance improvements or measures designed
to meet the standards referred to in subsection (a); and
(3) reducing the amount that the owner of such multifamily
housing meeting the standards referred to in subsection (a) is
required to contribute.
SEC. 613. ENERGY EFFICIENCY CERTIFICATIONS FOR HOUSING WITH MORTGAGES
INSURED BY FHA.
Section 526 of the National Housing Act (12 U.S.C. 1735f-4(a)) is
amended--
(1) in subsection (a)--
(A) by striking ``, other than manufactured
homes,'' each place such term appears;
(B) by inserting after the period at the end the
following: ``The energy performance requirements
developed and established by the Secretary under this
section for manufactured homes shall require energy
star rating for wall fixtures, appliances, and
equipment in such housing.'';
(C) by inserting ``(1)'' after ``(a)''; and
(D) by adding at the end the following new
paragraphs:
``(2) The Secretary shall require, with respect to any single- or
multi-family residential housing subject to a mortgage insured under
this Act, that any approval or certification of the housing for meeting
any energy efficiency or conservation criteria, standards, or
requirements pursuant to this title and any approval or certification
required pursuant to this title with respect to energy conserving
improvements or any renewable energy sources, such as wind, solar
energy geothermal, or biomass, shall be conducted only by an individual
certified by a home energy rating system provider who has been
accredited to conduct such ratings by the Home Energy Ratings System
Council, the Residential Energy Services Network, or such other
appropriate national organization, as the Secretary may provide, or by
licensed professional architect or engineer. If any organization makes
a request to the Secretary for approval to accredit individuals to
conduct energy efficiency or conservation ratings, the Secretary shall
review and approve or disapprove such request not later than the
expiration of the 6-month period beginning upon receipt of such
request.
``(3) The Secretary shall periodically examine the method used to
conduct inspections for compliance with the requirements under this
section, analyze various other approaches for conducting such
inspections, and review the costs and benefits of the current method
compared with other methods.''; and
(2) in subsection (b), by striking ``, other than a
manufactured home,''.
SEC. 614. ASSISTED HOUSING ENERGY LOAN PILOT PROGRAM.
(a) Authority.--Not later than the expiration of the 12-month
period beginning on the date of the enactment of this Act, the
Secretary shall develop and implement a pilot program under this
section to facilitate the financing of cost-effective capital
improvements for covered assisted housing projects to improve the
energy efficiency and conservation of such projects.
(b) Loans.--The pilot program under this section shall involve not
less than three and not more than five lenders, and shall provide for a
privately financed loan to be made for a covered assisted housing
project, which shall--
(1) finance capital improvements for the project that meet
such requirements as the Secretary shall establish, and may
involve contracts with third parties to perform such capital
improvements, including the design of such improvements by
licensed professional architects or engineers;
(2) have a term to maturity of not more than 20 years,
which shall be based upon the duration necessary to realize
cost savings sufficient to repay the loan;
(3) be secured by a mortgage subordinate to the mortgage
for the project that is insured under the National Housing Act;
and
(4) provide for a reduction in the remaining principal
obligation under the loan based on the actual resulting cost
savings realized from the capital improvements financed with
the loan.
(c) Underwriting Standards.--The Secretary shall establish
underwriting requirements for loans made under the pilot program under
this section, which shall--
(1) require the cost savings projected to be realized from
the capital improvements financed with the loan, during the
term of the loan, to exceed the costs of repaying the loan;
(2) allow the designer or contractor involved in designing
capital improvements to be financed with a loan under the
program to carry out such capital improvements; and
(3) include such energy, audit, property, financial,
ownership, and approval requirements as the Secretary considers
appropriate.
(d) Treatment of Savings.--The pilot program under this section
shall provide that the project owner shall receive the full financial
benefit from any reduction in the cost of utilities resulting from
capital improvements financed with a loan made under the program.
(e) Covered Assisted Housing Projects.--For purposes of this
section, the term ``covered assisted housing project'' means a housing
project that--
(1) is financed by a loan or mortgage that is--
(A) insured by the Secretary under subsection
(d)(3) or (d)(4) of section 221 of the National Housing
Act (12 U.S.C. 1715l), and bears interest at a rate
determined under the proviso of section 221(d)(5) of
such Act; or
(B) insured or assisted under section 236 of the
National Housing Act (12 U.S.C. 1715z-1);
(2) at the time a loan under this section is made, is
provided project-based rental assistance under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) for 50
percent or more of the dwelling units in the project; and
(3) is not a housing project owned or held by the
Secretary, or subject to a mortgage held by the Secretary.
SEC. 615. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.
Title I of the Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.) is amended by adding at the end the following new
section:
``SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.
``(a) In General.--To the extent amounts are made available for
grants under this section, the Secretary shall make grants under this
section to States, metropolitan cities and urban counties, Indian
tribes, and insular areas to carry out energy efficiency improvements
in new and existing single-family and multifamily housing.
``(b) Allocations.--
``(1) In general.--Of the total amount made available for
each fiscal year for grants under this section that remains
after reserving amounts pursuant to paragraph (2), the
Secretary shall allocate for insular areas, for metropolitan
cities and urban counties, and for States, an amount that bears
the same ratio to such total amount as the amount allocated for
such fiscal year under section 106 for Indian tribes, for
insular areas, for metropolitan cities and urban counties, and
for States, respectively, bears to the total amount made
available for such fiscal year for grants under section 106.
``(2) Set aside for indian tribes.--Of the total amount
made available for each fiscal year for grants under this
section, the Secretary shall allocate not less than one percent
to Indian tribes.
``(c) Grant Amounts.--
``(1) Entitlement communities.--From the amounts allocated
pursuant to subsection (b) for metropolitan cities and urban
counties for each fiscal year, the Secretary shall make a grant
for such fiscal year to each metropolitan city and urban county
that complies with the requirement under subsection (d), in the
amount that bears the same ratio such total amount so allocated
as the amount of the grant for such fiscal year under section
106 for such metropolitan city or urban county bears to the
aggregate amount of all grants for such fiscal year under
section 106 for all metropolitan cities and urban counties.
``(2) States.--From the amounts allocated pursuant to
subsection (b) for States for each fiscal year, the Secretary
shall make a grant for such fiscal year to each State that
complies with the requirement under subsection (d), in the
amount that bears the same ratio such total amount so allocated
as the amount of the grant for such fiscal year under section
106 for such State bears to the aggregate amount of all grants
for such fiscal year under section 106 for all States. Grant
amounts received by a State shall be used only for eligible
activities under subsection (e) carried out in nonentitlement
areas of the State.
``(3) Indian tribes.--From the amounts allocated pursuant
to subsection (b) for Indian tribes, the Secretary shall make
grants to Indian tribes that comply with the requirement under
subsection (d) on the basis of a competition conducted pursuant
to specific criteria, as the Secretary shall establish by
regulation, for the selection of Indian tribes to receive such
amount.
``(4) Insular areas.--From the amounts allocated pursuant
to subsection (b) for insular areas, the Secretary shall make a
grant to each insular area that complies with the requirement
under subsection (d) on the basis of the ratio of the
population of the insular area to the aggregate population of
all insular areas. In determining the distribution of amounts
to insular areas, the Secretary may also include other
statistical criteria as data become available from the Bureau
of Census of the Department of Labor, but only if such criteria
are set forth by regulation issued after notice and an
opportunity for comment.
``(d) Statement of Activities.--
``(1) Requirement.--Before receipt the receipt in any
fiscal year of a grant under subsection (c) by any grantee, the
grantee shall have prepared a final statement of housing energy
efficiency objectives and projected use of funds as the
Secretary shall require and shall have provided the Secretary
with such certifications regarding such objectives and use as
the Secretary may require. In the case of metropolitan cities,
urban counties, units of general local government, and insular
areas receiving grants, the statement of projected use of funds
shall consist of proposed housing energy efficiency activities.
In the case of States receiving grants, the statement of
projected use of funds shall consist of the method by which the
States will distribute funds to units of general local
government.
``(2) Public participation.--The Secretary may establish
requirements to ensure the public availability of information
regarding projected use of grant amounts and public
participation in determining such projected use.
``(e) Eligible Activities.--
``(1) Requirement.--Amounts from a grant under this section
may be used only to carry out activities for single-family or
multifamily housing that are designed to improve the energy
efficiency of the housing so that the housing complies with the
energy efficiency standard under section 604(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2008,
including such activities to provide energy for such housing
from renewable sources, such as wind, waves, solar, biomass,
and geothermal sources.
``(2) Preference for compliance beyond minimum
requirements.--In selecting activities to be funded with
amounts from a grant under this section, a grantee shall give
more preference to activities based on the extent to which the
activities will result in compliance by the housing with the
enhanced energy efficiency and conservation standards, and the
green building standards, under section 604(b) of such Act.
``(f) Reports.--Each grantee of a grant under this section for a
fiscal year shall submit to the Secretary, at a time determined by the
Secretary, a performance and evaluation report concerning the use of
grant amounts, which shall contain an assessment by the grantee of the
relationship of such use to the objectives identified in the grantees
statement under subsection (d).
``(g) Applicability of CDBG Provisions.--Sections 109, 110, and 111
of the Housing and Community Development Act of 1974 (42 U.S.C. 5309,
5310, 5311) shall apply to assistance received under this section to
the same extent and in the same manner that such sections apply to
assistance received under title I of such Act.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated for grants under this section $2,500,000,000 for fiscal
year 2009 and such sums as may be necessary for each fiscal year
thereafter.''.
SEC. 616. INCLUDING SUSTAINABLE DEVELOPMENT IN COMPREHENSIVE HOUSING
AFFORDABILITY STRATEGIES.
Section 105(b) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12705(b)) is amended--
(1) by striking ``and'' at the end of paragraph (19);
(2) by striking the period at the end of paragraph (20) and
inserting ``; and'';
(3) and by inserting after paragraph (20) the following:
``(21) describe the jurisdiction's strategies to encourage
sustainable development for affordable housing, including
single-family and multifamily housing, as measured by--
``(A) greater energy efficiency and use of
renewable energy sources, including any strategies
regarding compliance with the energy efficiency
requirements under section 604(a) of the Green
Resources for Energy Efficient Neighborhoods Act of
2008 and with the enhanced energy efficiency and
conservation standards, and the green building
standards, under section 604(b) of such Act;
``(B) increased conservation, recycling, and reuse
of resources;
``(C) more effective use of existing
infrastructure;
``(D) use of building materials and methods that
are healthier for residents of the housing, including
use of building materials that are free of added known
carcinogens that are classified as Group 1 Known
Carcinogens by the International Agency for Research on
Cancer; and
``(E) such other criteria as the Secretary
determines, in consultation with the Secretary of
Energy, the Secretary of Agriculture, and the
Administrator of the Environmental Protection Agency,
are in accordance with the purposes of this
paragraph.''.
SEC. 617. GRANT PROGRAM TO INCREASE SUSTAINABLE LOW-INCOME COMMUNITY
DEVELOPMENT CAPACITY.
(a) In General.--The Secretary may make grants to nonprofit
organizations to use for any of the following purposes:
(1) Training, educating, supporting, or advising an
eligible community development organization or qualified youth
service and conservation corps in improving energy efficiency,
resource conservation and reuse, design strategies to maximize
energy efficiency, installing or constructing renewable energy
improvements (such as wind, wave, solar, biomass, and
geothermal energy sources), and effective use of existing
infrastructure in affordable housing and economic development
activities in low-income communities, taking into consideration
energy efficiency requirements under section 604(a) of this
title and with the enhanced energy efficiency and conservation
standards, and the green building standards, under section
604(b) of this title.
(2) Providing loans, grants, or predevelopment assistance
to eligible community development organizations or qualified
youth service and conservation corps to carry out energy
efficiency improvements that comply with the energy efficiency
requirements under section 604(a) of this title, resource
conservation and reuse, and effective use of existing
infrastructure in affordable housing and economic development
activities in low-income communities. In providing assistance
under this paragraph, the Secretary shall give more preference
to activities based on the extent to which the activities will
result in compliance with the enhanced energy efficiency and
conservation standards, and the green building standards, under
section 604(b) of this title.
(3) Such other purposes as the Secretary determines are in
accordance with the purposes of this subsection.
(b) Application Requirement.--To be eligible for a grant under this
section, a nonprofit organization shall prepare and submit to the
Secretary an application at such time, in such manner, and containing
such information as the Secretary may require.
(c) Award of Contracts.--Contracts for architectural or engineering
services funded with amounts from grants made under this section shall
be awarded in accordance with chapter 11 of title 40, United States
Code (relating to selection of architects and engineers).
(d) Matching Requirement.--A grant made under this section may not
exceed the amount that the nonprofit organization receiving the grant
certifies, to the Secretary, will be provided (in cash or in kind) from
non-governmental sources to carry out the purposes for which the grant
is made.
(e) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) The term ``nonprofit organization'' has the meaning
given such term in section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704).
(2) The term ``eligible community development
organization'' means--
(A) a unit of general local government (as defined
in section 104 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12704));
(B) a community housing development organization
(as defined in section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704));
(C) an Indian tribe or tribally designated housing
entity (as such terms are defined in section 4 of the
Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103)); or
(D) a public housing agency, as such term is
defined in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437(b)).
(3) The term ``low-income community'' means a census tract
in which 50 percent or more of the households have an income
which is less than 80 percent of the greater of--
(A) the median gross income for such year for the
area in which such census tract is located; or
(B) the median gross income for such year for the
State in which such census tract is located.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $10,000,000 for
each of fiscal years 2008 through 2012.
SEC. 618. UTILIZATION OF ENERGY PERFORMANCE CONTRACTS IN HOPE VI.
Section 24(d) of the United States Housing Act of 1937 (42 U.S.C.
1437v(d)) is amended by adding at the end the following new paragraph:
``(3) Energy performance contracts.--
``(A) In general.--The Secretary shall provide that
a public housing agency shall receive the full
financial benefit, as determined by the Secretary, from
any reduction in the cost of utilities resulting from
any contract with a third party to undertake energy
conservation improvements in connection with a
revitalization plan under this section.
``(B) Third party contracts.--Contracts described
in subparagraph (A) may include contracts for equipment
conversions to less costly utility sources, projects
with resident-paid utilities, and adjustments to frozen
base year consumption, including systems repaired to
meet applicable building and safety codes and
adjustments for occupancy rates increased by
rehabilitation.
``(C) Term of contract.--The total term of a
contract described in subparagraph (A) shall not exceed
20 years to allow longer payback periods for retrofits,
including windows, heating system replacements, wall
insulation, site-based generation, advanced energy
savings technologies, including renewable energy
generation, and other such retrofits.''.
SEC. 619. HOPE VI GREEN DEVELOPMENTS REQUIREMENT.
(a) Mandatory Component.--Section 24(e) of the United States
Housing Act of 1937 (42 U.S.C. 1437v(e)) is amended by adding at the
end the following new paragraph:
``(4) Green developments requirement.--
``(A) Requirement.--The Secretary may not make a
grant under this section to an applicant unless the
proposed revitalization plan of the applicant to be
carried out with such grant amounts meets the following
requirements:
``(i) Green communities criteria
checklist.--All residential construction under
the proposed plan complies with the national
Green Communities criteria checklist for
residential construction that provides criteria
for the design, development, and operation of
affordable housing, as such checklist is in
effect for purposes of this paragraph pursuant
to subparagraph (D) at the date of the
application for the grant, or any substantially
equivalent standard or standards as determined
by the Secretary, as follows:
``(I) The proposed plan shall
comply with all items of the national
Green Communities criteria checklist
for residential construction that are
identified as mandatory.
``(II) The proposed plan shall
comply with such other nonmandatory
items of such national Green
Communities criteria checklist so as to
result in a cumulative number of points
attributable to such nonmandatory items
under such checklist of not less than--
``(aa) 25 points, in the
case of any proposed plan (or
portion thereof) consisting of
new construction; and
``(bb) 20 points, in the
case of any proposed plan (or
portion thereof) consisting of
rehabilitation.
``(ii) Green buildings certification
system.--All non-residential construction under
the proposed plan complies with all minimum
required levels of the green building rating
systems and levels identified by the Secretary
pursuant to subparagraph (C), as such systems
and levels are in effect for purposes of this
paragraph pursuant to subparagraph (D) at the
time of the application for the grant.
``(B) Verification.--
``(i) In general.--The Secretary shall
verify, or provide for verification, sufficient
to ensure that each proposed revitalization
plan carried out with amounts from a grant
under this section complies with the
requirements under subparagraph (A) and that
the revitalization plan is carried out in
accordance with such requirements and plan.
``(ii) Timing.--In providing for such
verification, the Secretary shall establish
procedures to ensure such compliance with
respect to each grantee, and shall report to
the Congress with respect to the compliance of
each grantee, at each of the following times:
``(I) Not later than 6 months after
execution of the grant agreement under
this section for the grantee.
``(II) Upon completion of the
revitalization plan of the grantee.
``(C) Identification of green buildings rating
systems and levels.--
``(i) In general.--For purposes of this
paragraph, the Secretary shall identify rating
systems and levels for green buildings that the
Secretary determines to be the most likely to
encourage a comprehensive and environmentally-
sound approach to ratings and standards for
green buildings. The identification of the
ratings systems and levels shall be based on
the criteria specified in clause (ii), shall
identify the highest levels the Secretary
determines are appropriate above the minimum
levels required under the systems selected.
Within 90 days of the completion of each study
required by clause (iii), the Secretary shall
review and update the rating systems and
levels, or identify alternative systems and
levels for purposes of this paragraph, taking
into account the conclusions of such study.
``(ii) Criteria.--In identifying the green
rating systems and levels, the Secretary shall
take into consideration--
``(I) the ability and availability
of assessors and auditors to
independently verify the criteria and
measurement of metrics at the scale
necessary to implement this paragraph;
``(II) the ability of the
applicable ratings system organizations
to collect and reflect public comment;
``(III) the ability of the
standards to be developed and revised
through a consensus-based process;
``(IV) An evaluation of the
robustness of the criteria for a high-
performance green building, which shall
give credit for promoting--
``(aa) efficient and
sustainable use of water,
energy, and other natural
resources;
``(bb) use of renewable
energy sources;
``(cc) improved indoor and
outdoor environmental quality
through enhanced indoor and
outdoor air quality, thermal
comfort, acoustics, outdoor
noise pollution, day lighting,
pollutant source control,
sustainable landscaping, and
use of building system controls
and low- or no-emission
materials, including preference
for materials with no added
carcinogens that are classified
as Group 1 Known Carcinogens by
the International Agency for
Research on Cancer; and
``(dd) such other criteria
as the Secretary determines to
be appropriate; and
``(V) national recognition within
the building industry.
``(iii) 5-year evaluation.--At least once
every five years, the Secretary shall conduct a
study to evaluate and compare available third-
party green building rating systems and levels,
taking into account the criteria listed in
clause (ii).
``(D) Applicability and updating of standards.--
``(i) Applicability.--Except as provided in
clause (ii) of this subparagraph, the national
Green Communities criteria checklist and green
building rating systems and levels referred to
in clauses (i) and (ii) of subparagraph (A)
that are in effect for purposes of this
paragraph are such checklist systems, and
levels as in existence upon the date of the
enactment of the Green Resources for Energy
Efficient Neighborhoods Act of 2008.
``(ii) Updating.--The Secretary may, by
regulation, adopt and apply, for purposes of
this paragraph, future amendments and
supplements to, and editions of, the national
Green Communities criteria checklist, any
standard or standards that the Secretary has
determined to be substantially equivalent to
such checklist, and the green building ratings
systems and levels identified by the Secretary
pursuant to subparagraph (C).''.
(b) Selection Criteria; Graded Component.--Section 24(e)(2) of the
United States Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is amended--
(1) in subparagraph (K), by striking ``and'' at the end;
(2) by redesignating subparagraph (L) as subparagraph (M);
and
(3) by inserting after subparagraph (K) the following new
subparagraph:
``(L) the extent to which the proposed
revitalization plan--
``(i) in the case of residential
construction, complies with the nonmandatory
items of the national Green Communities
criteria checklist identified in paragraph
(4)(A)(i), or any substantially equivalent
standard or standards as determined by the
Secretary, but only to the extent such
compliance exceeds the compliance necessary to
accumulate the number of points required under
such paragraph; and
``(ii) in the case of non-residential
construction, complies with the components of
the green building rating systems and levels
identified by the Secretary pursuant to
paragraph (4)(C), but only to the extent such
compliance exceeds the minimum level required
under such systems and levels; and''.
SEC. 620. CONSIDERATION OF ENERGY-EFFICIENCY IMPROVEMENTS IN
APPRAISALS.
(a) Appraisals in Connection With Federally Related Transactions.--
(1) Requirement.--Section 1110 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3339) is amended--
(A) in paragraph (1), by striking ``and'' at the
end;
(B) by redesignating paragraph (2) as paragraph
(3); and
(C) by inserting after paragraph (1) the following
new paragraph:
``(2) that such appraisals be performed in accordance with
appraisal standards that require, in determining the value of a
property, consideration of any renewable energy sources for, or
energy-efficiency or energy-conserving improvements or features
of, the property; and''.
(2) Revision of appraisal standards.--Each Federal
financial institutions regulatory agency shall, not later than
6 months after the date of the enactment of this Act, revise
its standards for the performance of real estate appraisals in
connection with federally related transactions under the
jurisdiction of the agency to comply with the requirement under
the amendments made by paragraph (1) of this subsection.
(b) Appraiser Certification and Licensing Requirements.--Section
1116 of the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 (12 U.S.C. 3345) is amended--
(1) in subsection (a), by inserting before the period at
the end the following: ``, and meets the requirements
established pursuant to subsection (f) for qualifications
regarding consideration of any renewable energy sources for, or
energy-efficiency or energy-conserving improvements or features
of, the property'';
(2) in subsection (c), by inserting before the period at
the end the following: ``, which shall include compliance with
the requirements established pursuant to subsection (f)
regarding consideration of any renewable energy sources for, or
energy-efficiency or energy-conserving improvements or features
of, the property'';
(3) in subsection (e), by striking ``The'' and inserting
``Except as provided in subsection (f), the''; and
(4) by adding at the end the following new subsection:
``(f) Requirements for Appraisers Regarding Energy-Efficiency
Features.--The Appraisal Subcommittee shall establish requirements for
State certification of State certified real estate appraisers and for
State licensing of State licensed appraisers, to ensure that appraisers
consider and are qualified to consider, in determining the value of a
property, any renewable energy sources for, or energy-efficiency or
energy-conserving improvements or features of, the property.''.
(c) Guidelines for Appraising Photovoltaic Measures and Training of
Appraisers.--Section 1122 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is amended by
adding at the end the following new subsection:
``(g) Guidelines for Appraising Photovoltaic Measures and Training
of Appraisers.--The Appraisal Subcommittee shall, in consultation with
the Secretary of Housing and Urban Development, the Federal National
Mortgage Association, and the Federal Home Loan Mortgage Corporation,
establish specific guidelines for--
``(1) appraising off- and on-grid photovoltaic measures for
compliance with the appraisal standards prescribed pursuant to
section 1110(2);
``(2) requirements under section 1116(f) for certification
of State certified real estate appraisers and for State
licensing of State licensed appraisers, to ensure that
appraisers consider, and are qualified to consider, such
photovoltaic measures in determining the value of a property;
and
``(3) training of appraisers to meet the requirements
established pursuant to paragraph (2) of this subsection.''.
SEC. 621. ASSISTANCE FOR HOUSING ASSISTANCE COUNCIL.
The Secretary shall require the Housing Assistance Council--
(1) to encourage each organization that receives assistance
from the Council with any amounts made available from the
Secretary to provide that any structures and buildings
developed or assisted under projects, programs, and activities
funded with such amounts complies with the enhanced energy
efficiency requirements under section 604(a) of this title; and
(2) to establish incentives to encourage each such
organization to provide that any such structures and buildings
comply with the energy efficiency and conservation standards,
and the green building standards, under section 604(b) of this
title.
SEC. 622. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE.
The Secretary shall--
(1) encourage each tribe, agency, organization,
corporation, and other entity that receives any assistance from
the Office of Rural Housing and Economic Development of the
Department of Housing and Urban Development to provide that any
structures and buildings developed or assisted under activities
funded with such amounts complies with the energy efficiency
requirements under section 604(a) of this title; and
(2) establish incentives to encourage each such tribe,
agency, organization, corporation, and other entity to provide
that any such structures and buildings comply with the enhanced
energy efficiency and conservation standards, and the green
building standards, under section 604(b) of this title.
SEC. 623. LOANS TO STATES AND INDIAN TRIBES TO CARRY OUT RENEWABLE
ENERGY SOURCES ACTIVITIES.
(a) Establishment of Fund.--There is established in the Treasury of
the United States a fund, to be known as the ``Alternative Energy
Sources State Loan Fund''.
(b) Expenditures.--
(1) In general.--Subject to paragraph (2), on request by
the Secretary, the Secretary of the Treasury shall transfer
from the Fund to the Secretary such amounts as the Secretary
determines are necessary to provide loans under subsection
(c)(1).
(2) Administrative expenses.--Of the amounts in the Fund,
not more than 5 percent shall be available for each fiscal year
to pay the administrative expenses of the Department of Housing
and Urban Development to carry out this section.
(c) Loans to States and Indian Tribes.--
(1) In general.--The Secretary shall use amounts in the
Fund to provide loans to States and Indian tribes to provide
incentives to owners of single-family and multifamily housing,
commercial properties, and public buildings to provide--
(A) renewable energy sources for such structures,
such as wind, wave, solar, biomass, or geothermal
energy sources, including incentives to companies and
business to change their source of energy to such
renewable energy sources and for changing the sources
of energy for public buildings to such renewable energy
sources;
(B) energy efficiency and energy conserving
improvements and features for such structures; or
(C) infrastructure related to the delivery of
electricity and hot water for structures lacking such
amenities.
(2) Eligibility.--To be eligible to receive a loan under
this subsection, a State or Indian tribe, directly or through
an appropriate State or tribal agency, shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(3) Criteria for approval.--The Secretary may approve an
application of a State or Indian tribe under paragraph (2) only
if the Secretary determines that the State or tribe will use
the funds from the loan under this subsection to carry out a
program to provide incentives described in paragraph (1) that--
(A) requires that any such renewable energy
sources, and energy efficiency and energy conserving
improvements and features, developed pursuant to
assistance under the program result in compliance of
the structure so improved with the energy efficiency
requirements under section 604(a) of this title; and
(B) includes such compliance and audit requirements
as the Secretary determines are necessary to ensure
that the program is operated in a sound and effective
manner.
(4) Preference.--In making loans during each fiscal year,
the Secretary shall give preference to States and Indian tribes
that have not previously received a loan under this subsection.
(5) Maximum amount.--The aggregate outstanding principal
amount from loans under this subsection to any single State or
Indian tribe may not exceed $500,000,000.
(6) Loan terms.--Each loan under this subsection shall have
a term to maturity of not more than 10 years and shall bear
interest at annual rate, determined by the Secretary, that
shall not exceed interest rate charged by the Federal Reserve
Bank of New York to commercial banks and other depository
institutions for very short-term loans under the primary credit
program, as most recently published in the Federal Reserve
Statistical Release on selected interest rates (daily or
weekly), and commonly referred to as the H.15 release,
preceding the date of a determination for purposes of applying
this paragraph.
(7) Loan repayment.--The Secretary shall require full
repayment of each loan made under this section.
(d) Investment of Amounts.--
(1) In general.--The Secretary of the Treasury shall invest
such amounts in the Fund that are not, in the judgment of the
Secretary of the Treasury, required to meet needs for current
withdrawals.
(2) Obligations of united states.--Investments may be made
only in interest-bearing obligations of the United States.
(e) Reports.--
(1) Reports to secretary.--For each year during the term of
a loan made under subsection (c), the State or Indian tribe
that received the loan shall submit to the Secretary a report
describing the State or tribal alternative energy sources
program for which the loan was made and the activities
conducted under the program using the loan funds during that
year.
(2) Report to congress.--Not later than September 30 of
each year that loans made under subsection (c) are outstanding,
the Secretary shall submit a report to the Congress describing
the total amount of such loans provided under subsection (c) to
each eligible State and Indian tribe during the fiscal year
ending on such date, and an evaluation on effectiveness of the
Fund.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to the Fund $5,000,000,000.
(g) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Indian tribe.--The term ``Indian tribe'' has the
meaning given such term in section 4 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4103).
(2) State.--The term ``State'' means each of the several
States, the Commonwealth of Puerto Rico, the District of
Columbia, the Commonwealth of the Northern Mariana Islands,
Guam, the Virgin Islands, American Samoa, the Trust Territories
of the Pacific, or any other possession of the United States.
SEC. 624. GREEN BANKING CENTERS.
(a) Insured Depository Institutions.--Section 8 of the Federal
Deposit Insurance Act (12 U.S.C. 1818) is amended by adding at the end
the following new subsection:
``(x) `Green Banking' Centers.--
``(1) In general.--The Federal banking agencies shall
prescribe guidelines encouraging the establishment and
maintenance of `green banking' centers by insured depository
institutions to provide any consumer who seeks information on
obtaining a mortgage, home improvement loan, or home equity
loan with additional information on--
``(A) obtaining an home energy rating or audit for
the residence for which such mortgage or loan is
sought;
``(B) obtaining financing for cost-effective
energy-saving improvements to such property; and
``(C) obtaining beneficial terms for any mortgage
or loan, or qualifying for a larger mortgage or loan,
secured by a residence which meets or will meet energy-
efficiency standards.
``(2) Information and referrals.--The information made
available to consumers under paragraph (1) may include--
``(A) information on obtaining a home energy rating
and contact information on qualified energy raters in
the area of the residence;
``(B) information on the secondary market
guidelines that permit lenders to provide more
favorable terms by allowing lenders to increase the
ratio on debt-to-income requirements or to use the
projected utility savings as a compensating factor;
``(C) information including eligibility information
about, and contact information for, any conservation or
renewable energy programs, grants, or loans offered by
the Secretary of Housing and Urban Development,
including the Energy Efficient Mortgage Program;
``(D) information including eligibility information
about, and contact information for, any conservation or
renewable energy programs, grants, or loans offered for
qualified military personal, reservists, and veterans
by the Secretary of Veterans Affairs;
``(E) information about, and contact information
for, the Office of Efficiency and Renewable Energy at
the Department of Energy, including the weatherization
assistance program;
``(F) information about, and contact information
for, the Energy Star Program of the Environmental
Protection Agency;
``(G) information from, and contact information
for, the Federal Citizen Information Center of the
General Services Administration on energy efficient
mortgages and loans, home energy rating systems, and
the availability of energy efficient mortgage
information from a variety of Federal agencies; and
``(H) such other information as the agencies or the
insured depository institution may determine to be
appropriate or useful.''.
(b) Insured Credit Unions.--Section 206 of the Federal Credit Union
Act (12 U.S.C. 1786) is amended by adding at the end the following new
subsection:
``(x) `Green Banking' Centers.--
``(1) In general.--The Board shall prescribe guidelines
encouraging the establishment and maintenance of `green
banking' centers by insured credit unions to provide any member
who seeks information on obtaining a mortgage, home improvement
loan, or home equity loan with additional information on--
``(A) obtaining an home energy rating or audit for
the residence for which such mortgage or loan is
sought;
``(B) obtaining financing for cost-effective
energy-saving improvements to such property; and
``(C) obtaining beneficial terms for any mortgage
or loan, or qualifying for a larger mortgage or loan,
secured by a residence which meets or will meet energy-
efficiency standards.
``(2) Information and referrals.--The information made
available to members under paragraph (1) may include--
``(A) information on obtaining a home energy rating
and contact information on qualified energy raters in
the area of the residence;
``(B) information on the secondary market
guidelines that permit lenders to provide more
favorable terms by allowing lenders to increase the
ratio on debt-to-income requirements or to use the
projected utility savings as a compensating factor;
``(C) information including eligibility information
about, and contact information for, any conservation or
renewable energy programs, grants, or loans offered by
the Secretary of Housing and Urban Development,
including the Energy Efficient Mortgage Program;
``(D) information including eligibility information
about, and contact information for, any conservation or
renewable energy programs, grants, or loans offered for
qualified military personal, reservists, and veterans
by the Secretary of Veterans Affairs;
``(E) information about, and contact information
for, the Office of Efficiency and Renewable Energy at
the Department of Energy, including the weatherization
assistance program;
``(F) information from, and contact information
for, the Federal Citizen Information Center of the
General Services Administration on energy efficient
mortgages and loans, home energy rating systems, and
the availability of energy efficient mortgage
information from a variety of Federal agencies; and
``(G) such other information as the Board or the
insured credit union may determine to be appropriate or
useful.''.
SEC. 625. PUBLIC HOUSING ENERGY COST REPORT.
(a) Collection of Information by HUD.--The Secretary of Housing and
Urban Development shall obtain from each public housing agency, by such
time as may be necessary to comply with the reporting requirement under
subsection (b), information regarding the energy costs for public
housing administered or operated by the agency. For each public housing
agency, such information shall include the monthly energy costs
associated with each separate building and development of the agency,
for the most recently completed 12-month period for which such
information is available, and such other information as the Secretary
determines is appropriate in determining which public housing buildings
and developments are most in need of repairs and improvements to reduce
energy needs and costs and become more energy efficient.
(b) Report.--Not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act, the Secretary of
Housing and Urban Development shall submit a report to the Congress
setting forth the information collected pursuant to subsection (a).
TITLE VII--MISCELLANEOUS PROVISIONS
SEC. 701. ALTERNATIVE FUEL PUMPS.
(a) Requirement.--Not later than January 1, 2018, each retail
automotive fueling station owned by a major integrated oil company
shall have at least 1 alternative fuel pump (and necessary
infrastructure and storage facilities) available to dispense for
automotive purposes a fuel referred to in subparagraph (A), (B), (C),
or (D) of subsection (c)(2) .
(b) Penalty.--A major integrated oil company that has failed to
comply with subsection (a) as of January 1 of any calendar year
beginning with 2018 shall be liable for a civil penalty in the amount
of $100,000 for each automotive fueling station owned by such company
that is not in compliance. Any such penalty may be assessed and
collected by the Secretary of Energy by order. The Secretary may bring
an action in the appropriate United States District court to require
the payment of civil penalties imposed under this subsection, and such
court shall have jurisdiction to enforce any order of the Secretary
under this subsection.
(c) Definitions.--For purposes of this section:
(1) The term ``major integrated oil company'' has the
meaning given that term in section 167(h)(5)(B) of the Internal
Revenue Code of 1986.
(2) The term ``alternative fuel pump'' means a fuel pump
that dispenses as a fuel for automotive purposes--
(A) natural gas;
(B) any fuel at least 85 percent of the volume of
which consists of ethanol;
(C) any mixture of biodiesel and diesel or
renewable diesel (as defined in regulations under
section 211(o) of the Clean Air Act), determined
without regard to any use of kerosene and containing at
least 20 percent biodiesel or renewable diesel; or
(D) hydrogen.
(d) Regulations.--The Secretary of Energy shall promulgate such
regulations as may be necessary to carry out this section.
SEC. 702. NATIONAL ENERGY CENTER OF EXCELLENCE.
(a) Establishment.--The Secretary of Energy shall award a grant on
a competitive basis to one consortium of institutions of higher
education (as such term is defined in section 102 of the Higher
Education Act of 1965) for the establishment of a National Energy
Center of Excellence to conduct research and education activities in
geological and geothermal sciences, renewable energy and energy
efficiency (including energy technology using clean coal, solar, wind,
oil, natural gas, hydroelectric, biofuels, ethanol, and other energy
alternatives), and energy conservation, including a special emphasis on
environmentally safe energy.
(b) Consortium.--The consortium shall include at least two
institutions of higher education, one of which must be eligible to
receive assistance under part A or B of title III or title V of the
Higher Education Act of 1965.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $25,000,000 for each of the
fiscal years 2009 through 2013.
SEC. 703. SENSE OF CONGRESS REGARDING RENEWABLE BIOMASS.
It is the sense of Congress that--
(1) in order to fulfill the commitment of the United States
to energy security and independence, the current definition of
renewable biomass in the Renewable Fuel Standard (RFS) could be
improved;
(2) in order to meet the United States' energy challenges
in an environmentally responsible way, the RFS should be as
inclusive as possible to better reflect the realities of our
Nation's resources, to encourage investment, and to help us
meet the congressional mandate for advanced biofuels;
(3) Congress recognizes that renewable fuels are important
to our climate and energy security strategy, as well as the
rural communities they support; and
(4) cellulosic biofuels can and should be produced from a
highly diverse array of feedstocks, allowing every region of
the country to be a potential producer of this fuel.
TITLE VIII--ENERGY TAX INCENTIVES
SEC. 800. SHORT TITLE, ETC.
(a) Short Title.--This title may be cited as the ``Energy Tax
Incentives Act of 2008''.
(b) 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. 801. 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
percentage.--The applicable percentage
prescribed by the Secretary for any month under
clause (i) shall be the percentage which yields
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 originally placed in
service during the same calendar year shall be treated
for purposes of this section as 1 facility which is
originally 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) 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.''.
(f) 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.--The amendments made by
subsection (c) 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. 802. 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 801, 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. 803. 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, 2017''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2016''.
(3) Microturbine property.--Subparagraph (E) of section
48(c)(2) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2016''.
(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 clauses (v) and (vi) as
clauses (vi) and (vii), respectively, and by inserting after clause
(iv) the following new clause:
``(v) 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,
2017.
``(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. 804. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) is amended by striking ``December
31, 2008'' and inserting ``December 31, 2016''.
(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. 805. 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. 806. 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 $1,750,000,000 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. New clean renewable energy bonds.''.
(c) 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) other than qualified forestry conservation bonds
(as defined in section 54B of such Code).
(d) 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. 811. 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
``$2,250,000,000''.
(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) $950,000,000 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:
``(i) 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) 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.''.
(e) 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) Disclosure of allocations.--The amendment made by
subsection (d) shall apply to certifications made after the
date of the enactment of this Act.
(3) 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. 812. 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) $150,000,000 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. 813. 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. 814. 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. 815. 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 2009 and 2010.
Subtitle B--Transportation and Domestic Fuel Security Provisions
SEC. 821. 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. 822. 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.--Subsection (f) of
section 40A (relating to renewable diesel) is amended by adding at the
end the following new paragraph:
``(4) Certain aviation fuel.--
``(A) In general.--Except as provided in the last
three sentences of paragraph (3), the term `renewable
diesel' shall include 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.
``(B) Application of mixture credits.--In the case
of fuel which is treated as renewable diesel solely by
reason of subparagraph (A), subsection (b)(1) and
section 6426(c) shall be applied with respect to such
fuel by treating kerosene as though it were diesel
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. 823. 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:
``(7) 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. 824. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLES.
(a) In General.--Section 30 is amended to read as follows:
``SEC. 30. 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--
``(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) Motor vehicle.--The term `motor vehicle' means any
vehicle which is manufactured primarily for use on public
streets, roads, and highways (not including a vehicle operated
exclusively on a rail or rails) and which has at least 4
wheels.
``(4) 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.).
``(5) 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 30 (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 by striking ``plus'' at the end of paragraph (32), by striking
the period at the end of paragraph (33) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(34) the portion of the new qualified plug-in electric
drive motor vehicle credit to which section 30(c)(1)
applies.''.
(d) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by section 804, is
amended by striking ``and 25D'' and inserting ``25D, and 30''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting ``30,''
after ``25D,''.
(C) Section 25B(g)(2), as amended by section 804, is
amended by striking ``and 25D'' and inserting ``, 25D, and
30''.
(D) Section 26(a)(1), as amended by section 804, is amended
by striking ``and 25D'' and inserting ``25D, and 30''.
(E) Section 1400C(d)(2) is amended by striking ``and 25D''
and inserting ``25D, and 30''.
(2) Section 30B(h)(1) is amended by striking ``section
30(c)(2)'' and inserting ``section 30(d)(3)''.
(3)(A) Section 53(d)(1)(B) is amended by striking clause
(iii) and redesignating clause (iv) as clause (iii).
(B) Subclause (II) of section 53(d)(1)(B)(iii), as so
redesignated, is amended by striking ``increased in the manner
provided in clause (iii)''.
(4) Section 55(c)(3) is amended by striking ``30(b)(3),''.
(5) Section 1016(a)(25) is amended by striking ``section
30(d)(1)'' and inserting ``section 30(f)(1)''.
(6) Section 6501(m) is amended by striking ``section
30(d)(4)'' and inserting ``section 30(f)(4)''.
(7) The item in the table of sections for subpart B of part
IV of subchapter A of chapter 1 is amended to read as follows:
``Sec. 30. 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 ``section 27''.
(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. 825. 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 determined by the Administrator of the
Environmental Protection Agency, in consultation with
the Secretary of Energy 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. 826. 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 Energy Tax Incentives 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. 827. 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. 828. 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'',
(2) by striking ``$30,000'' in subsection (b)(1) and
inserting ``$50,000'', and
(3) by striking ``$1,000'' in subsection (b)(2) and
inserting ``$2,000''.
(b) Extension of Credit.--Subsection (g) of section 30C is
amended--
(1) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3) and inserting before paragraph (2) (as so
redesignated) the following new paragraph:
``(1) in the case of property relating to natural gas,
compressed natural gas, or liquified natural gas, and which is
not of a character subject to an allowance for depreciation,
December 31, 2017,'', and
(2) by striking ``December 31, 2009'' in paragraph (3) (as
so redesignated) 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.
SEC. 829. ENERGY SECURITY BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1,
as amended by sections 806 and 841, is amended by adding at the end the
following new section:
``SEC. 54E. ENERGY SECURITY BONDS.
``(a) Energy Security Bond.--For purposes of this subchapter, the
term `energy security 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 qualified purposes,
``(2) the bond is issued by a qualified issuer,
``(3) the issuer designates such bond for purposes of this
section, and
``(4) repayments of principal and applicable interest on
financing provided by the issue are used not later than the
close of the 3-month period beginning on the date the repayment
(or complete repayment) is received--
``(A) to redeem bonds which are part of the issue,
or
``(B) for any qualified purpose.
For purposes of paragraph (4), the term `applicable interest' means so
much of the interest on any loan as exceeds the amount payable at a 1
percent rate.
``(b) Qualified Purpose.--For purposes of this section--
``(1) In general.--The term `qualified purpose' means the
making of grants and low-interest loans for the purpose of
placing in service natural gas refueling property at retail
motor fuel stations located in the United States.
``(2) Limitation on loans.--Such term shall not include--
``(A) any loan of more than $200,000 for property
located at any one retail motor fuel station, and
``(B) any loan for more than 50 percent of the cost
of such property and its installation.
``(3) Natural gas refueling property.--The term `natural
gas refueling property' means qualified clean-fuel refueling
property (as defined in section 179A(d)) which is described in
section 179A(d)(3) with respect to natural gas fuel.
``(4) Low-interest loan.--The term `low-interest loan'
means any loan the rate of interest on which does not exceed
the applicable Federal rate in effect under section 1288(b)(1)
determined as of the issuance of the loan.
``(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 energy security bond limitation of $1,750,000,000.
``(e) Allocation.--
``(1) In general.--The Secretary shall make allocations of
the amount of the national energy security bond limitation
under subsection (d) among qualified issuers in such manner as
the Secretary determines appropriate.
``(2) Reservation for property in metropolitan area.--50
percent of the national energy security bond limitation under
subsection (d) may be allocated only for loans to provide
natural gas refueling property located in metropolitan
statistical areas (within the meaning of section 143(k)(2)(B)).
``(3) Percentage of stations receiving loans.--In making
allocations under paragraph (1), the Secretary shall attempt to
ensure that at least 10 percent of the retail motor fuel
stations in the United States received loans from the proceeds
of energy security bonds.
``(f) Qualified Issuer.--For purposes of this section, the term
`qualified issuer' means any State or any political subdivision or
instrumentality thereof.
``(g) Termination.--This section shall not apply with respect to
any bond issued after December 31, 2017.''.
(b) Coordination With Refueling Property Credit.--Subsection (e) of
section 30C of such Code is amended by adding at the end the following
new paragraph:
``(6) Coordination with energy security bonds.--The cost
otherwise taken into account under this section with respect to
any property shall be reduced by the portion of such cost which
is financed by any loan provided from the proceeds of any
energy security bond (as defined in section 54E).''.
(c) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as amended by sections
806 and 841, is amended by striking ``or'' at the end of
subparagraph (B), by adding ``or'' at the end of subparagraph
(C), and by inserting after subparagraph (C) the following new
subparagraph:
``(D) an energy security bond,''.
(2) Subparagraph (C) of section 54A(d)(2), as amended by
sections 806 and 841, 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) in the case of an energy security
bond, a purpose specified in section 54E(b).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1, as amended by sections 806 and 841,
is amended by adding at the end the following new item:
``Sec. 54E. Energy security bonds.''.
(d) Effective Date.--The amendments made by this section shall
apply to obligations issued after December 31, 2008.
SEC. 830. CERTAIN INCOME AND GAINS RELATING TO ALCOHOL FUELS AND
MIXTURES, BIODIESEL FUELS AND MIXTURES, AND ALTERNATIVE
FUELS AND MIXTURES TREATED AS QUALIFYING INCOME FOR
PUBLICLY TRADED PARTNERSHIPS.
(a) In General.--Subparagraph (E) of section 7704(d)(1) is amended
by inserting ``, or the transportation or storage of any fuel described
in subsection (b), (c), (d), or (e) of section 6426, or any alcohol
fuel defined in section 6426(b)(4)(A) or any biodiesel fuel as defined
in section 40A(d)(1)'' after ``timber)''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
Subtitle C--Energy Conservation and Efficiency Provisions
SEC. 841. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1,
as amended by section 806, 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
$2,625,000,000.
``(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 amended by section
806, is amended by striking ``or'' at the end of subparagraph
(A), by adding ``or'' at the end of subparagraph (B), and by
inserting after subparagraph (B) the following new
subparagraph:
``(C) a qualified energy conservation bond,''.
(2) Subparagraph (C) of section 54A(d)(2), as amended by
section 806, is amended by striking ``and'' at the end of
clause (i), by striking the period at the end of clause (ii)
and inserting ``and'', and by adding at the end the following
new clause:
``(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, as amended by section 806, 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. 842. 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. 843. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
Subsection (h) of section 179D is amended by striking ``December
31, 2008'' and inserting ``December 31, 2013''.
SEC. 844. 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. 845. 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. 846. 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 Provisions
SEC. 851. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC
PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS THEREOF.
(a) Denial of Deduction for Specified Oil Companies for Income
Attributable to Domestic Production of Oil, Gas, or Primary Products
Thereof.--Subparagraph (B) of section 199(c)(4) (relating to
exceptions) is amended by striking ``or'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting ``, or'',
and by inserting after clause (iii) the following new clause:
``(iv) in the case of any specified oil
company (as defined in subsection (d)(9)), the
production, refining, processing,
transportation, or distribution of oil, gas, or
any primary product thereof.''.
(b) Limitation on Oil Related Qualified Production Activities
Income for Taxpayers Other Than Specified Oil Companies.--
(1) In general.--Section 199(d) is amended by redesignating
paragraph (9) as paragraph (10) and by inserting after
paragraph (8) the following new paragraph:
``(9) Special rule for taxpayers with oil related qualified
production activities income.--
``(A) In general.--If a taxpayer (other than a
specified oil company) has oil related qualified
production activities income for any taxable year
beginning after 2009, the amount otherwise allowable as
a deduction under subsection (a) shall be reduced by 3
percent of the least of--
``(i) the oil related qualified production
activities income of the taxpayer for the
taxable year,
``(ii) the qualified production activities
income of the taxpayer for the taxable year, or
``(iii) taxable income (determined without
regard to this section).
``(B) Oil related qualified production activities
income.--For purposes of this section, the term `oil
related qualified production activities income' means
for any taxable year the qualified production
activities income which is attributable to the
production, refining, processing, transportation, or
distribution of oil, gas, or any primary product
thereof during such taxable year.
``(C) Specified oil company.--For purposes of this
section, the term `specified oil company' means--
``(i) any major integrated oil company (as
defined in section 167(h)(5)(B)), and
``(ii) any entity in which a foreign
government holds (directly or indirectly)--
``(I) any interest which (by value
or voting interest) is 50 percent or
more of the total of such interests in
such entity, or
``(II) any other interest which
provides the foreign government with
effective control of such entity.
``(D) Primary product.--For purposes of this
section, the term `primary product' has the same
meaning as when used in section 927(a)(2)(C), as in
effect before its repeal.''.
(2) Conforming amendment.--Section 199(d)(2) (relating to
application to individuals) is amended by striking ``subsection
(a)(1)(B)'' and inserting ``subsections (a)(1)(B) and
(d)(9)(A)(iii)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 852. CLARIFICATION OF DETERMINATION OF FOREIGN OIL AND GAS
EXTRACTION INCOME.
(a) In General.--Paragraph (1) of section 907(c) is amended by
redesignating subparagraph (B) as subparagraph (C), by striking ``or''
at the end of subparagraph (A), and by inserting after subparagraph (A)
the following new subparagraph:
``(B) so much of any transportation of such
minerals as occurs before the fair market value event,
or''.
(b) Fair Market Value Event.--Subsection (c) of section 907 is
amended by adding at the end the following new paragraph:
``(6) Fair market value event.--For purposes of this
section, the term `fair market value event' means, with respect
to any mineral, the first point in time at which such mineral--
``(A) has a fair market value which can be
determined on the basis of a transfer, which is an
arm's length transaction, of such mineral from the
taxpayer to a person who is not related (within the
meaning of section 482) to such taxpayer, or
``(B) is at a location at which the fair market
value is readily ascertainable by reason of
transactions among unrelated third parties with respect
to the same mineral (taking into account source,
location, quality, and chemical composition).''.
(c) Special Rule for Certain Petroleum Taxes.--Subsection (c) of
section 907, as amended by subsection (b), is amended to by adding at
the end the following new paragraph:
``(7) Oil and gas taxes.--In the case of any tax imposed by
a foreign country which is limited in its application to
taxpayers engaged in oil or gas activities--
``(A) the term `oil and gas extraction taxes' shall
include such tax,
``(B) the term `foreign oil and gas extraction
income' shall include any taxable income which is taken
into account in determining such tax (or is directly
attributable to the activity to which such tax
relates), and
``(C) the term `foreign oil related income' shall
not include any taxable income which is treated as
foreign oil and gas extraction income under
subparagraph (B).''.
(d) Conforming Amendments.--
(1) Subparagraph (C) of section 907(c)(1), as redesignated
by this section, is amended by inserting ``or used by the
taxpayer in the activity described in subparagraph (B)'' before
the period at the end.
(2) Subparagraph (B) of section 907(c)(2) is amended to
read as follows:
``(B) so much of the transportation of such
minerals or primary products as is not taken into
account under paragraph (1)(B),''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 853. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
In the case of a corporation--
(1) to which paragraph (1) of section 401 of the Tax
Increase Prevention and Reconciliation Act of 2005 applies, and
(2) which had any significant income for the preceding
taxable year referred to in such paragraph from extraction,
production, processing, refining, transportation, distribution,
or retail sale, of any fuel or electricity,
the percentage under subparagraph (C) of such paragraph (as in effect
on the date of the enactment of this Act) is increased by 40 percentage
points.
Passed the House of Representatives September 16, 2008.
Attest:
LORRAINE C. MILLER,
Clerk.
Calendar No. 118
110th CONGRESS
2d Session
H. R. 6899
_______________________________________________________________________
AN ACT
To advance the national security interests of the United States by
reducing its dependency on oil through renewable and clean, alternative
fuel technologies while building a bridge to the future through
expanded access to Federal oil and natural gas resources, revising the
relationship between the oil and gas industry and the consumers who own
those resources and deserve a fair return from the development of
publicly owned oil and gas, ending tax subsidies for large oil and gas
companies, and facilitating energy efficiencies in the building,
housing, and transportation sectors, and for other purposes.
_______________________________________________________________________
November 18, 2008
Read the second time and placed on the calendar