II 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.
1.
Short title
This Act may be cited as the Comprehensive American Energy Security and Consumer Protection Act.
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.
<enum>I</enum><header>Federal Oil and Gas Leasing</header> <subtitle id="H09374931E0514689967ECA4EFD992C56"><enum>A</enum><header>Outer Continental Shelf Oil and Gas Leasing</header> <section display-inline="no-display-inline" id="H06E3EFEAA5654844904CC73FB76C081B"><enum>101.</enum><header>Prohibition on leasing</header> <subsection id="H46FE136F0B2B4987A500B1BD146E6B6E"><enum>(a)</enum><header>Prohibition</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="HF417F3E73BC941A2BE805607C7DDE51"><enum>(b)</enum><header>Treatment of areas in Gulf of Mexico</header><text display-inline="yes-display-inline">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).</text> </subsection></section><section id="H912D96E7925F459A9B6CE4F38F20A3D2"><enum>102.</enum><header>Opening of certain areas to oil and gas leasing</header> <subsection id="H5F196B3F78C3491BA8654300FCE7B400"><enum>(a)</enum><header>Leasing authorized</header><text>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—</text> <paragraph id="H24423C52EDA24F69B68C89D2ECAE4D11"><enum>(1)</enum><text>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</text> </paragraph><paragraph id="H005D1DA311CE413CB854FDD7F6C87557"><enum>(2)</enum><text>that was not otherwise available for oil and gas leasing, preleasing, and other related activities as of July 1, 2008.</text> </paragraph></subsection><subsection id="H3A0D89E84BA949A08EE7F6BAC176399F"><enum>(b)</enum><header>Inclusion in leasing program required</header><text>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).</text> </subsection><subsection id="H1E0D072257634BF9A2721313462E237E"><enum>(c)</enum><header>Requirement To conduct lease sales</header><text>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.</text> </subsection></section><section id="H5675F2B7E53545038DF5194C88003ECD"><enum>103.</enum><header>Coastal State roles and responsibilities</header> <subsection id="HCE805280E71A475F800058DCCC09F28D"><enum>(a)</enum><header>State approval of certain leasing required</header><text>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.</text> </subsection><subsection id="HD3ECF3F9B7984D24B68939389D7810C6"><enum>(b)</enum><header>Consultation with adjacent and neighboring States</header> <paragraph id="H8988C2FD6F8344B3BB8F6B00C5DABB5E"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph id="H259242C958B343DBB01947C8303B5B7E"><enum>(A)</enum><text>the size, timing, or location of a proposed lease sale; or</text> </subparagraph><subparagraph id="H1E5C68F668C640B39FC8A66EB5487173"><enum>(B)</enum><text>a proposed development and production plan.</text> </subparagraph></paragraph><paragraph id="H85E34D5DC11C42130067911FBB80032C"><enum>(2)</enum><header>Requirements</header><text>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).</text> </paragraph></subsection></section><section id="H2BE6929E2B1C4E36959836524E92D865"><enum>104.</enum><header>Protection of the environment and conservation of the natural resources of the Outer Continental Shelf</header><text display-inline="no-display-inline">The Secretary—</text> <paragraph id="HC8AD3C27AD94460A947E55AD7EE2D001"><enum>(1)</enum><text display-inline="yes-display-inline">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</text> </paragraph><paragraph id="H691E8C69B32A41F3BF7B64A814F4E24E"><enum>(2)</enum><text>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.</text> </paragraph></section><section id="H11A7D3D0F0E44ADDAB2720E4FD72A300"><enum>105.</enum><header>Limitations</header> <subsection id="HDE7FD757766C4D3900C5AC6600BCC33"><enum>(a)</enum><header>Compliance with memorandum</header><text>Any oil and gas leasing of areas of the Outer Continental Shelf shall be conducted in accordance with the document entitled <quote>Memorandum of Agreement between the Department of Defense and the Department of the Interior on Mutual Concerns On The Outer Continental Shelf</quote> 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.</text> </subsection><subsection id="H9AD4BBE5615A4B80B200371191E0A3BC"><enum>(b)</enum><header>National security</header><text>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)).</text> </subsection></section><section id="H752105C48A944B1582634D586F43CDB1"><enum>106.</enum><header>Prohibition on leasing in certain Federal protected areas</header> <subsection id="HD67856EB80CA46A20000B6C200D9B298"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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—</text> <paragraph id="HED658374DC284F99B8A23FAE31288769"><enum>(1)</enum><text>any marine national monument or national marine sanctuary; or</text> </paragraph><paragraph id="H8307321800C94613AA63AFDF712463D7"><enum>(2)</enum><text>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.</text> </paragraph></subsection><subsection id="H48BAC34235C848D4BF30975BB2CB819B"><enum>(b)</enum><header>Identification of coordinates of Georges Bank</header><text display-inline="yes-display-inline">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).</text> </subsection></section><section id="HB185B6C7BCF8480693944CDD11DF5D2"><enum>107.</enum><header>No effect on applicable law</header><text display-inline="no-display-inline">Except as otherwise specifically provided in this subtitle, nothing in this subtitle waives or modifies any applicable environmental or other law.</text> </section><section id="H0BA598C573AC40E3927CAC49DFAD169"><enum>108.</enum><header>Buy American requirements</header> <subsection id="H6093607818744DB1AD8C1323C65669F9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H4B0C8B31DB424764B1338E7FC938A240"><enum>(b)</enum><header>Safeguard for Extraordinary Ability</header><text display-inline="yes-display-inline">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 <quote>regulations which</quote> and inserting <quote>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</quote>.</text> </subsection></section><section id="H037FA45384DC4116BA4772D9F66C4D81"><enum>109.</enum><header>Small, woman-owned, and minority-owned businesses</header><text display-inline="no-display-inline">Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by adding at the end the following:</text> <quoted-block id="H6278F398C107449593AFA437B090A2C9" style="OLC"> <subsection id="H8F839CA8CEEA4B239385727005389CA2"><enum>(q)</enum><header>Opportunities for leasing</header><text display-inline="yes-display-inline">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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H9BF91A85AB4C428F90E6B1BE09F5CB1"><enum>110.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text> <paragraph display-inline="no-display-inline" id="HFADF87C90369439C8778EDBA4205C2A9"><enum>(1)</enum><header>Adjacent State</header><text>The term <quote>adjacent State</quote> 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.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4CC221351A904B7C938900E3B2243901"><enum>(2)</enum><header>coastal environment</header><text display-inline="yes-display-inline">The term <quote>coastal environment</quote> has the meaning given that term in the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).</text> </paragraph><paragraph commented="no" id="HAD539B516041463F89589DBFD105C5E6"><enum>(3)</enum><header>coastal zone</header><text display-inline="yes-display-inline">The term <quote>coastal zone</quote> has the meaning given that term in the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).</text> </paragraph><paragraph commented="no" id="HA7014E7FE6244595ABE2C69872D2F762"><enum>(4)</enum><header>Coastline</header><text display-inline="yes-display-inline">The term <quote>coastline</quote> has the meaning given the term <quote>coast line</quote> under section 2 of the Submerged Lands Act (43 U.S.C. 1301).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H97DB817FDE3E47FAA39500FF70F9A1CE"><enum>(5)</enum><header>human environment</header><text display-inline="yes-display-inline">The term <quote>human environment</quote> has the meaning given that term in the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).</text> </paragraph><paragraph commented="no" id="H4D8161C49F6E4DD98F3D29008FB13F6C"><enum>(6)</enum><header>marine environment</header><text>The term <quote>marine environment</quote> has the meaning given that term in the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).</text> </paragraph><paragraph id="HC7B42120595C40C5969F68AF8855B5D7"><enum>(7)</enum><header>Outer Continental Shelf</header><text>The term <quote>Outer Continental Shelf</quote> has the meaning given the term <quote>outer Continental Shelf</quote> under section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331).</text> </paragraph><paragraph id="H113EAEB7C40941DBAF093CAF12F3744B"><enum>(8)</enum><header>Seaward lateral boundary</header><text display-inline="yes-display-inline">The term <quote>seaward lateral boundary</quote> means a boundary drawn by the Minerals Management Service in the Federal Register notice of January 3, 2006 (vol 71, no. 1).</text> </paragraph><paragraph id="HC54D7AD33CF844909E56C7712CC0B396"><enum>(9)</enum><header>Secretary</header><text>The term <quote>Secretary</quote> means the Secretary of the Interior.</text> </paragraph></section></subtitle><subtitle id="HA5BF229C4FC345C7BCC74F41616D9741"><enum>B</enum><header>Diligent Development of Federal Oil and Gas Leases</header> <section id="HD6B539456DE74361AB350000989DF19C"><enum>121.</enum><header>Clarification</header><text display-inline="no-display-inline">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.</text> </section><section id="HD5A5FFB5392049AAAA3E137201F16500"><enum>122.</enum><header>Covered provisions</header><text display-inline="no-display-inline">The provisions referred to in section 121 are the following:</text> <paragraph id="HD6D655B61E52434CBFFB540400EEC9D9"><enum>(1)</enum><text>Section 17 of the Mineral Leasing Act (30 U.S.C. 226).</text> </paragraph><paragraph id="HE36407C75D264986A3F535898CD98769"><enum>(2)</enum><text>Section 107 of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a).</text> </paragraph><paragraph id="H936802931EF749378F29E3E2732853B1"><enum>(3)</enum><text>The Outer Continental Shelf Lands Act (43 11 U.S.C. 1331 et seq.).</text> </paragraph><paragraph id="H612723882A2F4D7093CD20AD082872B1"><enum>(4)</enum><text>The Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.).</text> </paragraph></section><section id="H48187E3E49C64738B8073410EB429243"><enum>123.</enum><header>Regulations</header><text display-inline="no-display-inline">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.</text> </section><section id="H8A3E3F78BEDD4D82B3FEBBB48457387"><enum>124.</enum><header>Resource estimates and leasing program management indicators</header> <subsection id="H2588F8EDCED143C5AC576DFE2C1BFBBD"><enum>(a)</enum><header>In general</header><text>The Secretary of the Interior shall annually collect and report to Congress—</text> <paragraph id="HCEFE634E6BC346E5B8909254BA100BE"><enum>(1)</enum><text>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—</text> <subparagraph id="H04905D7989CC4B5588F9093673F93100"><enum>(A)</enum><text>on which seismic exploration activity is occurring or has occurred;</text> </subparagraph><subparagraph id="H5CB728579FE340FD96D8D86199F7DF33"><enum>(B)</enum><text>on which permits to drill have been applied for, but not yet awarded;</text> </subparagraph><subparagraph id="HA1FC23CF1AE347CCABFEE4256F5DB144"><enum>(C)</enum><text>on which permits to drill have been approved, but no drilling has yet occurred;</text> </subparagraph><subparagraph id="H24D980FCEC0D4485BA0076B7DA9BA34"><enum>(D)</enum><text>on which wells have been drilled but no production has occurred; and</text> </subparagraph><subparagraph id="H7F1AC866FA71426D910094FE5C22CB9F"><enum>(E)</enum><text>on which production is occurring;</text> </subparagraph></paragraph><paragraph id="H493378D3DAB847B0AB98001F82EED5DD"><enum>(2)</enum><text>resource estimates for and the number of acres of Federal onshore and offshore lands, by State or offshore planning area—</text> <subparagraph id="H5B25D2CE40784A9BA48EE6C96384F8F4"><enum>(A)</enum><text>under lease, per year the lease was issued;</text> </subparagraph><subparagraph id="HC674A0D0257D41158F29C84D2586215D"><enum>(B)</enum><text>under lease and not producing, per year the lease was issued;</text> </subparagraph><subparagraph id="H07A004CB3167436E85ECAB5880C9E0B6"><enum>(C)</enum><text>under lease and drilled, but not producing, per year the lease was issued;</text> </subparagraph><subparagraph id="H0EE8D3911F864AB6B8673E8617A6B0A9"><enum>(D)</enum><text>offered for lease in a lease sale conducted during the previous year, but not leased; and</text> </subparagraph><subparagraph id="H4F4F1FDB08D94113B38301099CC0238F"><enum>(E)</enum><text>available for leasing but not under lease or offered for leasing in the previous year;</text> </subparagraph></paragraph><paragraph id="HFC94722D65B64D7DBAE20050A3FED5F0"><enum>(3)</enum><text>resource estimates for and the number of acres of unleased Federal onshore and offshore land available for oil and gas leasing;</text> </paragraph><paragraph id="H8B871AAECB074C1D858286C63000DFE1"><enum>(4)</enum><text>resource estimates for and the number of acres of areas of the Outer Continental Shelf—</text> <subparagraph id="HE76E162FE1AF4A79A0DA73278E265B61"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H1A82EC2F6D014404BB008C550276ACD"><enum>(B)</enum><text>available for oil and gas leasing but not included in the 5-year plan;</text> </subparagraph></paragraph><paragraph id="H307007FC4C7A46EBBBC1F94BD5CFD798"><enum>(5)</enum><text>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;</text> </paragraph><paragraph id="H525D07655B56437D89B33FA375E5D919"><enum>(6)</enum><text>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;</text> </paragraph><paragraph id="H7213A91DB1D94C119FF713A31814B1F6"><enum>(7)</enum><text>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</text> </paragraph><paragraph id="H0EED78FC405C4FD19924D6E9A4FFE0B1"><enum>(8)</enum><text>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.</text> </paragraph></subsection><subsection id="HF938DA00D26649F0AFF4821659FF5055"><enum>(b)</enum><header>Covered provisions</header><text>Subsection (a) shall apply with respect to leases and land eligible for leasing pursuant to—</text> <paragraph id="H3435D33B202445AA98BA4909CA9DE56"><enum>(1)</enum><text>section 17 of the Mineral Leasing Act (30 U.S.C. 226);</text> </paragraph><paragraph id="H48D3B332C9F34723B07EA4FCE7F13EA4"><enum>(2)</enum><text>the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.);</text> </paragraph><paragraph id="HE574F5D6EAE94767B8A000029877D8F6"><enum>(3)</enum><text>section 107 of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a); or</text> </paragraph><paragraph id="HEB2DE684EAC54DF7B5DEA07078CE68D6"><enum>(4)</enum><text>the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).</text> </paragraph></subsection></section></subtitle><subtitle id="H73AA8DF46E7545F6867343D0578995D2"><enum>C</enum><header>Royalties Under Offshore Oil and Gas Leases</header> <section display-inline="no-display-inline" id="H89803C30FE53487AAD8CBE81E7BFF041"><enum>131.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote>Royalty Relief for American Consumers Act of 2008</quote>.</text> </section><section id="H645446BFCB984DF1827EFADD31ECB1E6"><enum>132.</enum><header>Price thresholds for royalty suspension provisions</header><text display-inline="no-display-inline">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.</text> </section><section id="H0C2A754690BC4B91833555FDE0621299"><enum>133.</enum><header>Clarification of authority to impose price thresholds for certain lease sales</header><text display-inline="no-display-inline">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).</text> </section><section id="HA23722C5FB7A4C93B135D33751F5EF5"><enum>134.</enum><header>Eligibility for new leases and the transfer of leases; conservation of resources fees</header> <subsection id="H32319C81235C46F297B08032BAE4400"><enum>(a)</enum><header>Issuance of New Leases</header> <paragraph id="H2522238385F7445FBAA9752208A8B0AD"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph id="H91988AD9B7874240A4012400B764B429"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="HE25A1CBF1AE24258BEC215E22625DF6"><enum>(B)</enum><text>the person has—</text> <clause id="H7CC637E8DC294E7FBC1BE68D5C46EC3B"><enum>(i)</enum><text>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</text> </clause><clause id="H0F3D64C86B3343BE983896D178008B48"><enum>(ii)</enum><text>entered into an agreement with the Secretary under which the person is obligated to pay such fees.</text> </clause></subparagraph></paragraph><paragraph id="H43F4DDD43F494A3FA7FFED2360B2221C"><enum>(2)</enum><header>Persons described</header><text>A person referred to in paragraph (1) is a person that—</text> <subparagraph id="H296A4B2FD76149C0BF28AC617504BC4E"><enum>(A)</enum><text>is a lessee that—</text> <clause id="H45891D8EF484407AA90720D9C5C9A212"><enum>(i)</enum><text>holds a covered lease on the date on which the Secretary considers the issuance of the new lease; or</text> </clause><clause id="H86F265A8975D42F6AF2BBF1636A0BF29"><enum>(ii)</enum><text>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</text> </clause></subparagraph><subparagraph id="HDB41AB995A7A4C0BA034EEAF001376B8"><enum>(B)</enum><text>any other person or entity who has any direct or indirect interest in, or who derives any benefit from, a covered lease;</text> </subparagraph></paragraph><paragraph id="HE7318A2E05C94E86925F7D5E7FC423FE"><enum>(3)</enum><header>Multiple lessees</header> <subparagraph id="H19AC303E8AA940D2875C9CD756376B8C"><enum>(A)</enum><header>In general</header><text>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)).</text> </subparagraph><subparagraph id="H89FF6E4EC8B646E288A9E6AE6E29C4BD"><enum>(B)</enum><header>Treatment of share as covered lease</header><text>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.</text> </subparagraph></paragraph></subsection><subsection id="HD0FEA15A73004310BBBA7484C68FA2C1"><enum>(b)</enum><header>Conservation of Resources Fees</header> <paragraph id="H9B7580B5E1564F8A91A3D2DBC6FA0A3"><enum>(1)</enum><header>In general</header><text>Not later than 60 days after the date of enactment of this Act, the Secretary of the Interior by regulation shall establish—</text> <subparagraph id="HE30AF3899DAA4712B48B519CD567F0F3"><enum>(A)</enum><text>a conservation of resources fee for producing Federal oil and gas leases in the Gulf of Mexico; and</text> </subparagraph><subparagraph id="H57A64F7B83DE4698B368DAAD34E08E48"><enum>(B)</enum><text>a conservation of resources fee for nonproducing Federal oil and gas leases in the Gulf of Mexico.</text> </subparagraph></paragraph><paragraph id="HE2AB7960F330488594895B84667564F0"><enum>(2)</enum><header>Producing lease fee terms</header><text>The fee under paragraph (1)(A)—</text> <subparagraph id="HB7939C916EA84DB8AA338EAEE21C63D3"><enum>(A)</enum><text>subject to subparagraph (C), shall apply to covered leases that are producing leases;</text> </subparagraph><subparagraph id="HB3E3FBD661A54F1BB0B3A32698C832BE"><enum>(B)</enum><text>shall be set at $9 per barrel for oil and $1.25 per million Btu for gas, respectively, in 2005 dollars; and</text> </subparagraph><subparagraph id="H3E7F01F447334F64B96D859070D1C55E"><enum>(C)</enum><text>shall apply only to production of oil or gas occurring—</text> <clause id="H229CB94FB6FB4486A5C6DFE2C4A6C3B0"><enum>(i)</enum><text>in any calendar year in which the arithmetic average of the daily closing prices for light sweet crude oil on the New York Mercantile Exchange (NYMEX) exceeds $34.73 per barrel for oil and $4.34 per million Btu for gas in 2005 dollars; and</text> </clause><clause id="H9F893E087CFA4EA9ABFD00104540FF11"><enum>(ii)</enum><text>on or after October 1, 2006.</text> </clause></subparagraph></paragraph><paragraph id="HD81BDC33B6AE4E00B1C82C96F464B22"><enum>(3)</enum><header>Nonproducing lease fee terms</header><text>The fee under paragraph (1)(B)—</text> <subparagraph id="H75C8F957C1E54EDEBC3838DAA8D4E507"><enum>(A)</enum><text>subject to subparagraph (C), shall apply to leases that are nonproducing leases;</text> </subparagraph><subparagraph id="HBE01F4B728BF4F9BB8411FF3E5660510"><enum>(B)</enum><text>shall be set at $3.75 per acre per year in 2005 dollars; and</text> </subparagraph><subparagraph id="HBD8FF489000240A8B4D314BCEBA63B11"><enum>(C)</enum><text>shall apply on and after October 1, 2006.</text> </subparagraph></paragraph><paragraph id="H16FBE6C4EA16449B8600CAE6D8358B6F"><enum>(4)</enum><header>Treatment of receipts</header><text>Amounts received by the United States as fees under this subsection shall be treated as offsetting receipts.</text> </paragraph></subsection><subsection id="HE8E9876F785041688077EA494423DA42"><enum>(c)</enum><header>Transfers</header><text>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—</text> <paragraph id="H44325C46042049B6B8BAB956DB94A581"><enum>(1)</enum><text>the lessee or other person has—</text> <subparagraph id="HF3F3F6216C1E4CDFB298452E88D5C27B"><enum>(A)</enum><text>renegotiated all covered leases of the lessee or other person; and</text> </subparagraph><subparagraph id="H819B7FF6ADC64374A4EE5F37CAF5AA09"><enum>(B)</enum><text>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</text> </subparagraph></paragraph><paragraph id="H23D96250BF1441B7990917D1A3AAFFE1"><enum>(2)</enum><text>the lessee or other person has—</text> <subparagraph id="H18B15D0D75E8452AB03BC660914E1900"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H45DE8D0D0A8A48F2965D83AB4100EA48"><enum>(B)</enum><text>entered into an agreement with the Secretary under which the person is obligated to pay such fees.</text> </subparagraph></paragraph></subsection><subsection id="HB8A2265A27CD4EC08857EF550065626C"><enum>(d)</enum><header>Definitions</header><text>In this section—</text> <paragraph id="HAEC840DD5CE241AE87573942928D1E82"><enum>(1)</enum><header>Covered lease</header><text>The term <quote>covered lease</quote> means a lease for oil or gas production in the Gulf of Mexico that is—</text> <subparagraph id="H5B6D4787465A4E2AA54B52C8636CE64C"><enum>(A)</enum><text>in existence on the date of enactment of this Act;</text> </subparagraph><subparagraph id="H49D5F6BB349D49A789C8DD6E19B44B6F"><enum>(B)</enum><text>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</text> </subparagraph><subparagraph id="HD3E5FB08E71C41B8BAD592DCF6995E7"><enum>(C)</enum><text>not subject to limitations on royalty relief based on market price that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).</text> </subparagraph></paragraph><paragraph id="H599748861B1043CE80E96864C9DA3151"><enum>(2)</enum><header>Lessee</header><text>The term <quote>lessee</quote> includes any person or other entity that controls, is controlled by, or is in or under common control with, a lessee.</text> </paragraph><paragraph id="HCF89C21F71384180A25D7F2055C5A2D0"><enum>(3)</enum><header>Secretary</header><text>The term <quote>Secretary</quote> means the Secretary of the Interior.</text> </paragraph></subsection></section><section id="H62BECEC8616143FAA79948FF797D64FD"><enum>135.</enum><header>Strategic Energy Efficiency and Renewables Reserve</header> <subsection id="HD7AE9433420A4B4691B8F805DE07B25"><enum>(a)</enum><header>In General</header><text display-inline="yes-display-inline">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 <quote>Strategic Energy Efficiency and Renewables Reserve</quote>. The Strategic Energy Efficiency and Renewables Reserve shall be available to offset the cost of subsequent legislation—</text> <paragraph id="H229CED6B9AB348799FCDB7CBA0D13432"><enum>(1)</enum><text display-inline="yes-display-inline">to accelerate the use of clean domestic renewable energy resources and alternative fuels;</text> </paragraph><paragraph id="HA462382B31764723A2BAFF0E7216D9E"><enum>(2)</enum><text display-inline="yes-display-inline">to promote the utilization of energy-efficient products and practices and energy conservation;</text> </paragraph><paragraph id="H54F7A852244D41DF9362D3FBA162B5C4"><enum>(3)</enum><text display-inline="yes-display-inline">to increase research, development, and deployment of clean renewable energy and efficiency technologies;</text> </paragraph><paragraph id="H8283F233A11B44D9AA1C75EDC2B4FD38"><enum>(4)</enum><text>to provide increased assistance for low income home energy and weatherization programs;</text> </paragraph><paragraph id="HFA4D0759006E42F28F40EC9CF3DFBDF5"><enum>(5)</enum><text display-inline="yes-display-inline">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</text> </paragraph><paragraph id="H5583079F02BC4BD89479C77D07DA5388"><enum>(6)</enum><text display-inline="yes-display-inline">to increase research, development, and demonstration of carbon capture and sequestration technologies.</text> </paragraph></subsection><subsection id="H1D0FC0B7D5954F779011B708266FD85C"><enum>(b)</enum><header>Procedure for Adjustments</header> <paragraph id="H5BE5134EEFA447FA9B47FFE0B2B1690"><enum>(1)</enum><header>Budget committee chairman</header><text>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.</text> </paragraph><paragraph id="HD0C8DDC7052743BBB4ADC6F2CFF675E"><enum>(2)</enum><header>Matters to be adjusted</header><text>The adjustments referred to in paragraph (1) are to be made to—</text> <subparagraph id="HA1C4362DEA0944E69318FFD9442303D4"><enum>(A)</enum><text>the discretionary spending limits, if any, set forth in the appropriate concurrent resolution on the budget;</text> </subparagraph><subparagraph id="H6DCE124DC176490BB9051320AABC82DE"><enum>(B)</enum><text>the allocations made pursuant to the appropriate concurrent resolution on the budget pursuant to section 302(a) of Congressional Budget Act of 1974; and</text> </subparagraph><subparagraph id="H4F2E25EB1D8F498DA8E5285246CCECB2"><enum>(C)</enum><text>the budget aggregates contained in the appropriate concurrent resolution on the budget as required by section 301(a) of Congressional Budget Act of 1974.</text> </subparagraph></paragraph><paragraph id="HA6041EF903DD41A8B56F61007C23A7FA"><enum>(3)</enum><header>Amounts of adjustments</header><text>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.</text> </paragraph></subsection></section></subtitle><subtitle id="H41E5256D306B417C8C50236B64E38881"><enum>D</enum><header>Accountability and Integrity in the Federal Energy Program</header> <section id="H5C06EB1E34F34500005F75F806625F94"><enum>141.</enum><header>Royalty in-kind</header><text display-inline="no-display-inline">Section 342(d) of the Energy Policy Act of 2005 (42 U.S.C. 15902(d)) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HC77B55B9DC634E3480A34E12ED2781F5" style="OLC"> <subsection id="H3F71E572BBEA4410BEED00EBC7A4478F"><enum>(d)</enum><header>Benefit to the United States required</header><text display-inline="yes-display-inline">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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H767939CDC7154B3CAE00E07900FA7CED"><enum>142.</enum><header>Fair return on production of Federal oil and gas resources</header> <subsection id="HA9F1C3175D2A407EAC44A7385E711C6D"><enum>(a)</enum><header>Royalty Payments</header><text>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.</text> </subsection><subsection id="HD0A20ADEE57A4E01ABC4AB1136956653"><enum>(b)</enum><header>Recommendations for Legislative Action</header><text>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.</text> </subsection></section><section display-inline="no-display-inline" id="HF76079335E7A48B4003FD69E4000227D" section-type="subsequent-section"><enum>143.</enum><header>Royalty-in-kind ethics</header> <subsection id="H6446FDED91C84AE1A8A900CBB6AD89C3"><enum>(a)</enum><header>Gift ban</header> <paragraph id="H07F07007B40B49D6A3B491A5B08C800"><enum>(1)</enum><header>Prohibition</header><text>No employee of the Minerals Management Service may—</text> <subparagraph id="H1CA4C38177DE4671BC79B0A8A26CBE5B"><enum>(A)</enum><text>accept gifts of any value from any prohibited source; or</text> </subparagraph><subparagraph id="HED45CA07D4594543B2C73D247E11D6BC"><enum>(B)</enum><text>seek, accept, or hold employment with any prohibited source.</text> </subparagraph></paragraph><paragraph id="H9F51375611974009001C45F7E98782AA"><enum>(2)</enum><header>Penalty</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="H9DB7F5A4600A4BCCBD323E85A8102BBA"><enum>(b)</enum><header>Training</header><text>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.</text> </subsection><subsection id="HB18B98376AB0487A8EE5978264833CEB"><enum>(c)</enum><header>Code of ethics</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H57D1AAA1E7F341F0B878C486628C9B40"><enum>(d)</enum><header>Drug testing</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H733FA303DE79490A97EFE5631F378CFC"><enum>(e)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HBB0F11863BCD4766A812FE9ECD49C1D0"><enum>(1)</enum><header>Gift</header><text>The term <quote>gift</quote>—</text> <subparagraph id="H70E10FB596A9471D98AF3B07E7D34856"><enum>(A)</enum><text>includes any gratuity, favor, discount, entertainment, hospitality, loan, forbearance, or other item having monetary value; and</text> </subparagraph><subparagraph id="H68BAB8F9CA1A4FE88BD781000800C109"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H66878A74A48B40DA007009E3D28006B"><enum>(2)</enum><header>Prohibited source</header><text>The term <quote>prohibited source</quote> means, with respect to an employee, any person who—</text> <subparagraph id="H7CA76E90CE7D4F3E99DCB137AE879581"><enum>(A)</enum><text>is seeking official action by the Minerals Management Service;</text> </subparagraph><subparagraph id="H37766BBF32034C8BA66D081B138C0075"><enum>(B)</enum><text>does business or seeks to do business with the Minerals Management Service;</text> </subparagraph><subparagraph id="H92C2968B40CC4F2BA47936FE9654608D"><enum>(C)</enum><text>conducts activities regulated by the Minerals Management Service;</text> </subparagraph><subparagraph id="H1DA981E28C2D410BA8759BE5008455B5"><enum>(D)</enum><text>has interests that may be substantially affected by performance or nonperformance of the employee's official duties; or</text> </subparagraph><subparagraph id="H98D75BB8DEB348F2906B50014F1C3527"><enum>(E)</enum><text>is an organization a majority of whose members are described in any of subparagraphs (A) through (D).</text> </subparagraph></paragraph></subsection><subsection id="H3F9A6A72E9324A2FAFCF05A883902DB8"><enum>(f)</enum><header>Other ethics requirements apply</header><text>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.</text> </subsection></section><section id="HD5BF16782AFB41419351C6A3AF82D23F" section-type="subsequent-section"><enum>144.</enum><header>Prohibition on certain gifts</header><text display-inline="no-display-inline">Section 201 of title 18, United States Code, is amended—</text> <paragraph id="H6FA505020B2F4A85BF30E62351A07C10"><enum>(1)</enum><text>by redesignating subsections (d) and (e) as subsections (e) and (f); and</text> </paragraph><paragraph id="H2D7A01D813AC454DA8A3965C8B49225D"><enum>(2)</enum><text>by inserting after subsection (c) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HEB66C6C6EE434B04A7B92B20F7AD012B" style="OLC"> <subsection id="H9B209BE1336547F2B946198B43D542B7"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H0480A438D44640A1B191966EEFD6BC53"><enum>(1)</enum><text>Whoever—</text> <subparagraph id="H50FC940EF46347B1B105BD66DA34F29C"><enum>(A)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph id="H2E40B23BA8294919B14115D9EAE27F32"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph></paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text><paragraph id="H778C623F66FA4842B8FE720711C60B5" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>course of conduct</quote> means a series of acts over a period of time evidencing a continuity of purpose.</text> </paragraph><paragraph id="H76D22B00409C46B697F538A00281FE1" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H463DD38E8A0B452982A7B5D3AC702544"><enum>(A)</enum><text>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.</text> </subparagraph><subparagraph id="HB3FD91409B804B70998D948783F1FB31" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H3E8D4464EC924D4993035D7D936FDA68" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H214C33CF289D4D22BED8BDA3AB4ECE00"><enum>145.</enum><header>Strengthening the ability of the Interior Department Inspector General to secure cooperation</header><text display-inline="no-display-inline">The Inspector General Act of 1978 (5 U.S.C. App.) is amended by inserting after section 8K the following:</text> <quoted-block display-inline="no-display-inline" id="H8F149267605F4A00A1AB1E39A9C624E2" style="traditional"> <section id="HE9644425CFE24DFBB71B27C33FE6F276"><enum>8L.</enum><header>Special provisions concerning the Department of the Interior</header><text display-inline="yes-display-inline">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<italic>: Provided,</italic> that procedures other than subpoenas shall be used by the Inspector General to obtain documents, information, or testimony from Federal agencies.</text> </section><after-quoted-block>.</after-quoted-block></quoted-block> </section></subtitle><subtitle id="H8B286EA362394B76AC562438DA77E26B"><enum>E</enum><header>Federal Oil and Gas Royalty Reform</header> <section id="HA710C40E27EF478B9195394EF63B10A" section-type="subsequent-section"><enum>151.</enum><header>Amendments to definitions</header><text display-inline="no-display-inline">Section 3 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1702) is amended—</text> <paragraph id="H02E6795A4F8E41509F32DA25FDB033A8"><enum>(1)</enum><text>in paragraph (20)(A), by striking <quote>: <italic>Provided</italic>, That</quote> and all that follows through <quote>subject of the judicial proceeding</quote>;</text> </paragraph><paragraph id="H42CF3D3A6E7841CE98F5EC4CAC25E594"><enum>(2)</enum><text>in paragraph (20)(B), by striking <quote>(with written notice to the lessee who designated the designee)</quote>;</text> </paragraph><paragraph id="HC4D00F8D76B54950AEEA5CF309ADDAE6"><enum>(3)</enum><text>in paragraph (23)(A), by striking <quote>(with written notice to the lessee who designated the designee)</quote>;</text> </paragraph><paragraph id="HBAF5FED87FE74BD79E1F83FFED3434AD"><enum>(4)</enum><text>by amending paragraph (24) to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HA5AA3054D595423BA23BDC5EBFD915D7" style="OLC"> <paragraph id="H287C26DE847743E8ACA277BDC412CC69"><enum>(24)</enum><text display-inline="yes-display-inline"><term>designee</term> 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);</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H57FA2675A710437AA9AFD948F9E21D2D"><enum>(5)</enum><text>in paragraph (25)(B), by striking <quote>(subject to the provisions of section 102(a) of this Act)</quote>; and</text> </paragraph><paragraph id="H058922ED6576479F97346B949EBEE170"><enum>(6)</enum><text>in paragraph (26), by striking <quote>(with notice to the lessee who designated the designee)</quote>.</text> </paragraph></section><section id="HE0CD6C3FB09047FC83BF00E25B34DFF7"><enum>152.</enum><header>Interest</header> <subsection id="HB4117EBF93B94775BFBF37AB71B297CB"><enum>(a)</enum><header>Estimated payments; interest on amount of underpayment</header><text>Section 111(j) of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1721(j)) is amended by striking <quote>If the estimated payment exceeds the actual royalties due, interest is owed on the overpayment.</quote>.</text> </subsection><subsection id="H9CA7C60773204908A192AD454FE5CBD5"><enum>(b)</enum><header>Overpayments</header><text>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).</text> </subsection><subsection id="HA3E8DA0BE9FA4861AD54387D17C55355"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall be effective one year after the date of enactment of this Act.</text> </subsection></section><section id="HEF9001F8D6604A92874F1F3BF5C6B5A5"><enum>153.</enum><header>Obligation period</header><text display-inline="no-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="H9107FA9704674A0B96B150B0EE15A800" style="OLC"> <paragraph id="H6F7166DE40314B9A99257782CB413DB5"><enum>(3)</enum><header>Adjustments</header><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H7EE62565A0A54AA2A200848BDE8989A3"><enum>154.</enum><header>Tolling agreements and subpoenas</header> <subsection id="HE9540A656B1D4598A56BBFFF40C79EC6"><enum>(a)</enum><header>Tolling agreements</header><text>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 <quote>(with notice to the lessee who designated the designee)</quote>.</text> </subsection><subsection id="H128C9A242D3942179989396BA7CD7227"><enum>(b)</enum><header>Subpoenas</header><text>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 <quote>(with notice to the lessee who designated the designee, which notice shall not constitute a subpoena to the lessee)</quote>.</text> </subsection></section><section id="H8C1BA9E1C4A642418BB574E61689F157"><enum>155.</enum><header>Liability for royalty payments</header><text display-inline="no-display-inline">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:</text> <quoted-block id="H4D71BB0B217445F98D8299FEBFA51FEE" style="OLC"> <subsection id="H69C93B157817469D845EFEC991769342"><enum>(a)</enum><text>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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section></subtitle><subtitle id="H831DF9C8AEC243568B589F00068201D0"><enum>F</enum><header>National Petroleum Reserve in Alaska</header> <section id="H9D4BA6C181AC4309873BA3BF84DB5900"><enum>161.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote>Drill Responsibly in Leased Lands Act of 2008</quote>.</text> </section><section id="H3961811267694D65BEA7391C7B7DF7CD"><enum>162.</enum><header>Acceleration of lease sales for National Petroleum Reserve in Alaska</header><text display-inline="no-display-inline">Section 107(d) of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a(d)) is amended—</text> <paragraph id="HA99CBA4508FB4755827F02E800EF97D3"><enum>(1)</enum><text>by striking <quote>(d)</quote> and all that follows through <quote>; first lease sale</quote> and inserting the following:</text> <quoted-block id="H49F8BDA35C384435BA218CFAA542054B" style="OLC"> <subsection id="HAEB126C1B2174407807EBB360757C755"><enum>(d)</enum><header>Lease sales</header> <paragraph id="H105981CC3DF2487F856B152DF2B4ACB8"><enum>(1)</enum><header>First lease sale</header><text>The first lease sale</text> </paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="HBBD5631DF6D44F6C9C9C989725BC003B"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block id="HF1B10403FCE7402AAE92737754C7E238" style="OLC"> <paragraph id="HBEEE726280ED446CAE78DA44D9D61144"><enum>(2)</enum><header>Subsequent lease sales</header><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HB8FD95172A52443FAB94C93550B5384F"><enum>163.</enum><header>National Petroleum Reserve in Alaska: pipeline construction</header><text display-inline="no-display-inline">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.</text> </section><section id="HCFBB5569A23E4B8896C6BAB29F3326"><enum>164.</enum><header>Alaska natural gas pipeline project facilitation</header> <subsection id="H977B69E4831D458187F3225597680170"><enum>(a)</enum><header>Findings</header><text>Congress finds the following:</text> <paragraph id="H83DD2A8878D24B5AB118A3BB272EB888"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="HEAB3D6CBCD2F48D0A8B19400ECCB4E94"><enum>(2)</enum><text>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.</text> </paragraph></subsection><subsection id="H776267859AC94581B242000017B915D0"><enum>(b)</enum><header>Facilitation by President</header><text>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.</text> </subsection></section><section id="H7EF8E24882D94B699700306FD3414EE2"><enum>165.</enum><header>Project labor agreements and other pipeline requirements</header> <subsection id="H4E6B0AF646B64E4CA3DC6800BC9575B7"><enum>(a)</enum><header>Project Labor Agreements</header><text>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.</text> </subsection><subsection id="HBC9F912BD3E04018B83BED8666361D31"><enum>(b)</enum><header>Pipeline Maintenance</header><text>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.</text> </subsection></section><section id="H1E5B7588121C45B6BD0302E05951007C"><enum>166.</enum><header>Ban on export of Alaskan oil</header> <subsection id="HDC1541BCE4B84ED29B664577A8D98B4E"><enum>(a)</enum><header>Repeal of Provision Authorizing Exports</header><text>Section 28(s) of the Mineral Leasing Act (30 U.S.C. 185(s)) is repealed.</text> </subsection><subsection id="HEC0DA625CBA942A8823002529DCBE068"><enum>(b)</enum><header>Reimposition of Prohibition on Crude Oil Exports</header><text>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.</text> </subsection></section></subtitle><subtitle id="HF2498A7316CA40148579DCD1A048DC57"><enum>G</enum><header>Oil shale</header> <section id="H13D95E43FECB45F5AF8441BC8D04FE36"><enum>171.</enum><header>Oil shale leasing</header> <subsection id="H781BD9A7F3644FCDB51BA2C3E000DF62"><enum>(a)</enum><header>Repeal of restriction</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="HCD0DF01EBBF443CB85F8B19169343536"><enum>(b)</enum><header>Requirement that State approve of oil shale leasing</header><text display-inline="yes-display-inline">Section 369 of the Energy Policy Act of 2005 (42 U.S.C. 15927) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HE9A1EC8619844A81B53BC985C000067" style="OLC"> <subsection id="H0EDC71BA1EB74CAEA7133C31087B17A0"><enum>(t)</enum><header>Requirement that State approve of oil shale leasing</header><text display-inline="yes-display-inline">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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section></subtitle><enum>II</enum><header>Consumer Energy Supply</header> <section id="HF50EE1ECF3824FA49DC11D5462B654A3" section-type="subsequent-section"><enum>201.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Consumer Energy Supply Act of 2008</short-title></quote>.</text> </section><section display-inline="no-display-inline" id="H684F0D4409F940318DAB11BEECA903D" section-type="subsequent-section"><enum>202.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title—</text> <paragraph id="H19AA02B44F054B57B1D9D8500B0ABCD"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>light grade petroleum</term> means crude oil with an API gravity of 30 degrees or higher;</text> </paragraph><paragraph id="HC503F73525A44267A38882C859A30423"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>heavy grade petroleum</term> means crude oil with an API gravity of 26 degrees or lower; and</text> </paragraph><paragraph id="HE4F8D669790143898CB8284925CEE22"><enum>(3)</enum><text>the term <quote>Secretary</quote> means the Secretary of Energy.</text> </paragraph></section><section id="H0DEB02A42EA24779B09D0605BA567C14"><enum>203.</enum><header>Sale and replacement of oil from the Strategic Petroleum Reserve</header> <subsection id="HC9E77CEAE47F40EBBF479885DF7F3E52"><enum>(a)</enum><header>Initial petroleum sale and replacement</header><text display-inline="yes-display-inline">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—</text> <paragraph id="HFCA6D14AAC20426098A2DC9347E7396C"><enum>(1)</enum><text display-inline="yes-display-inline">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;</text> </paragraph><paragraph id="H0829E5A686344DE08F7853872130C5C3"><enum>(2)</enum><text>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</text> </paragraph><paragraph id="H75749AE505B943ADAD986549721159F0"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="HB4D9C94EE88F4DAB91F165A73C85E8BE"><enum>(b)</enum><header>Amounts and schedule</header><text display-inline="yes-display-inline">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—</text> <paragraph id="H913E5B2E8FF04C2FB389D7E24FC47C53"><enum>(1)</enum><text>shall commence no sooner than 6 months after the date of enactment of this Act;</text> </paragraph><paragraph id="H652EDD3437E245AC98313FDE3BFA5B6F"><enum>(2)</enum><text display-inline="yes-display-inline">shall be completed, at the discretion of the Secretary, not later than 5 years after the date of enactment of this Act;</text> </paragraph><paragraph id="H6DD1B6E48B7E473D81EADFD505C1EC6"><enum>(3)</enum><text>shall be carried out in a manner so as to maximize the monetary value to the Federal Government; and</text> </paragraph><paragraph id="H86BEC3812AD24BC381C1B6B640D34DB3"><enum>(4)</enum><text>shall be carried out using the receipts from the sales of light grade petroleum authorized under this section.</text> </paragraph></subsection><subsection id="H0195CD6C76634AA98E00E082D6F29055"><enum>(c)</enum><header>Deferrals</header><text display-inline="yes-display-inline">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.</text> </subsection></section><enum>III</enum><header>Public Transportation</header> <section id="HF06B1BC2C38548349612485E640030B" section-type="subsequent-section"><enum>301.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Saving Energy Through Public Transportation Act of 2008</short-title></quote>.</text> </section><section id="H96D030E195A34DE58E13B3CCD2A428A1"><enum>302.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text> <paragraph id="H4EBC5B0D6320438BBA088CEB25DCEB53"><enum>(1)</enum><text display-inline="yes-display-inline">In 2007, people in the United States took more than 10.3 billion trips using public transportation, the highest level in 50 years.</text> </paragraph><paragraph id="H416C73D0235B45E6816EB5E4599F3E7D"><enum>(2)</enum><text>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.</text> </paragraph><paragraph id="HFF3C44DB01254DB49E778B39BB76ED91"><enum>(3)</enum><text>Public transportation use saves fuel, reduces emissions, and saves money for the people of the United States.</text> </paragraph><paragraph id="H6FF180A10C1F417CB4E8C965CF375577"><enum>(4)</enum><text display-inline="yes-display-inline">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).</text> </paragraph><paragraph id="H27FA7F6DED3748D0988979AAE3ED4703"><enum>(5)</enum><text>Public transportation use in the United States is estimated to reduce carbon dioxide emissions by 37 million metric tons annually.</text> </paragraph><paragraph id="H3719FA3895194C5681069FEB2062442E"><enum>(6)</enum><text>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.</text> </paragraph><paragraph id="HCE2552A7466E4DC7BA7CE45FF2015DD9"><enum>(7)</enum><text>Public transportation use provides an affordable alternative to driving, as households that use public transportation save an average of $6,251 every year.</text> </paragraph><paragraph id="H565CC48C275F4085BAB7B285C5B4B93"><enum>(8)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph display-inline="no-display-inline" id="HE99A00ADDF3D4368885B3C66AAF5768F"><enum>(9)</enum><text display-inline="yes-display-inline">Public transportation stakeholders should engage and involve local communities in the education and promotion of the importance of utilizing public transportation.</text> </paragraph><paragraph id="HFB89D1424A334F20AC1BF5CB05C719C"><enum>(10)</enum><text>Increasing public transportation use is a national priority.</text> </paragraph></section><section commented="no" display-inline="no-display-inline" id="HCC9179E850E04DD5B1D898FAFBC2BFA7" section-type="subsequent-section"><enum>303.</enum><header>Grants to improve public transportation services</header> <subsection commented="no" id="HBD9CD42190904F62BA56CF8F19325118"><enum>(a)</enum><header>Authorizations of Appropriations</header> <paragraph commented="no" id="H7DD5862F917E4D8DAFCE9291C1CC15EE"><enum>(1)</enum><header>Urbanized area formula grants</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph commented="no" id="HA41FCBE4C02A48659572009C22AB5E35"><enum>(2)</enum><header>Formula grants for other than urbanized areas</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection commented="no" id="H43CCCE3F29E545709CAD619229007905"><enum>(b)</enum><header>Use of funds</header><text>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:</text> <paragraph commented="no" id="H126A7B3863AD470EBABC7C6214D15273"><enum>(1)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph commented="no" id="H9722BE71617E4F6DABD91761F257A463"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H5C8896FFDEBE464CA598FC4EC9CCE7EE"><enum>(3)</enum><text>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.</text> </paragraph><paragraph display-inline="no-display-inline" id="H3508F8B9F9024045BDFC3BD9C75FF914"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H864F68F8F4464CF70015BFF500ACB0F"><enum>(5)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection commented="no" id="HB14E36E912294FD8995E7F35F7DC512"><enum>(c)</enum><header>Federal Share</header><text>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.</text> </subsection><subsection commented="no" id="H34CC8FB00C1A41D982627315049C41A7"><enum>(d)</enum><header>Period of availability</header><text>Funds appropriated under this section shall remain available for a period of 2 fiscal years.</text> </subsection></section><section display-inline="no-display-inline" id="HE1AE6DDE9A214C15846E5784EC661E61" section-type="subsequent-section"><enum>304.</enum><header>Increased Federal share for Clean Air Act compliance</header><text display-inline="no-display-inline">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.</text> </section><section id="H9D6DEFE8A7064EE7006F33FAF4801264"><enum>305.</enum><header>Transportation fringe benefits</header> <subsection id="H3B6F505D9D1E40F290C689889EF8BBFC"><enum>(a)</enum><header>Requirement that agencies offer transit pass transportation fringe benefits to their employees nationwide</header> <paragraph id="HAE6712BE106442B79D40DC99B9EF5E6E"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph id="H258F0FA45C114C049B4FBA6E1D3DC400"><enum>(A)</enum><text>by striking <quote>Effective</quote> and all that follows through <quote>each covered agency</quote> and inserting <quote>Each agency</quote>; and</text> </subparagraph><subparagraph id="H8BDDA2A3EE0B4592B730578427333BA2"><enum>(B)</enum><text>by inserting <quote>at a location in an urbanized area of the United States that is served by fixed route public transportation</quote> before <quote>shall be offered</quote>.</text> </subparagraph></paragraph><paragraph id="HA3DCFE46409244B3A88160799C58BC29"><enum>(2)</enum><header>Conforming amendments</header><text>Section 3049(a) of such Act (5 U.S.C. 7905 note; 119 Stat. 1711) is amended—</text> <subparagraph id="HB2BBF316AEE54D34B1856C4B75FD8319"><enum>(A)</enum><text>in paragraph (3)—</text> <clause id="H8053101803B64F569F304D476EE1FB36"><enum>(i)</enum><text>by striking subparagraph (A); and</text> </clause><clause id="HA1E0B128603C48150015C671460496C3"><enum>(ii)</enum><text>by redesignating subparagraphs (B) through (F) as subparagraphs (A) through (E), respectively; and</text> </clause></subparagraph><subparagraph id="HAC7B95E0F9AE4FB39CBDF31C91BF2F43"><enum>(B)</enum><text>in paragraph (4) by striking <quote>a covered agency</quote> and inserting <quote>an agency</quote>.</text> </subparagraph></paragraph></subsection><subsection id="HB4F753511EC5492FBF8C3E7670F514CC"><enum>(b)</enum><header>Benefits described</header><text display-inline="yes-display-inline">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: <quote>, 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.</quote>.</text> </subsection><subsection id="H713080BE17F3487688667D328D96DA9"><enum>(c)</enum><header>Guidance</header><text>Section 3049(a) of such Act (5 U.S.C. 7905 note; 119 Stat. 1711) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H6A62BFC2DCA548BBA97C8EBE3098F205" style="OLC"> <paragraph id="HE7BCD574BB4742CFB6251534C303F5E6"><enum>(5)</enum><header>Guidance</header> <subparagraph id="H8F245B42CB0E4A34A1DBC8FB46A847C4"><enum>(A)</enum><header>Issuance</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H26905320AB694CE7A79C496DC1894B3E"><enum>(B)</enum><header>Uniform application</header> <clause id="H6F0D29471DAE4A17B60023A8336D95D7"><enum>(i)</enum><header>In general</header><text>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.</text> </clause><clause id="HAD804DAA43964728009E5C2C595CF1A0"><enum>(ii)</enum><header>Required information</header><text>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.</text> </clause><clause id="H1E75A27332D547188E26D88100281E00"><enum>(iii)</enum><header>Warning against false statements</header><text>Such an application shall contain a warning against making false statements in the application.</text> </clause></subparagraph><subparagraph id="HD3AB758E4F754E628FAF472C02282000"><enum>(C)</enum><header>Independent verification requirements</header><text>The guidance to be issued under subparagraph (A) shall contain independent verification requirements to ensure that, with respect to an employee of an agency—</text> <clause id="H10C179DE8A5F4C7FB8DB9DC4047B66DD"><enum>(i)</enum><text>the eligibility of the employee for benefits under the program is verified by an official of the agency;</text> </clause><clause id="H71B906B6D6FF44ACA781544DF7BA98FA"><enum>(ii)</enum><text>employee commuting costs are verified by an official of the agency; and</text> </clause><clause id="H1409EA9AD7D14ABB91AEF052D20000DD"><enum>(iii)</enum><text>records of the agency are checked to ensure that the employee is not receiving parking benefits from the agency.</text> </clause></subparagraph><subparagraph id="H2863F72624254972928DEE9D3D15EC5"><enum>(D)</enum><header>Program implementation requirements</header><text>The guidance to be issued under subparagraph (A) shall contain program implementation requirements applicable to each agency to ensure that—</text> <clause id="H5163A4E3302E4F7B80EF1C349F080084"><enum>(i)</enum><text>benefits provided by the agency under the program are adjusted in cases of employee travel, leave, or change of address;</text> </clause><clause id="H7C0161900CDF44BEAEF28DFB003875C3"><enum>(ii)</enum><text>removal from the program is included in the procedures of the agency relating to an employee separating from employment with the agency; and</text> </clause><clause id="H6D066111C17C45D5A37E5067FF0943B"><enum>(iii)</enum><text>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.</text> </clause></subparagraph><subparagraph id="HC347BC2D1BCD411A9C1B61AB000028E2"><enum>(E)</enum><header>Enforcement and penalties</header><text>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.</text> </subparagraph><subparagraph id="H3B75585618434A4794ECC4A2CEC850A7"><enum>(F)</enum><header>Periodic reviews</header><text>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:</text> <clause id="H46EC4319E4FF49489FBD1C921E2FA1C7"><enum>(i)</enum><text display-inline="yes-display-inline">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.</text> </clause><clause id="HB4699C7AC028414D8868C6EC18AB7500"><enum>(ii)</enum><text>Information on the total number of employees of the agency that are participating in the program.</text> </clause><clause id="H099F1E66DF5E4A8580206CB3FF67EECC"><enum>(iii)</enum><text>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.</text> </clause><clause id="HD93E27B897F24ACB9F33E5F251475685"><enum>(iv)</enum><text>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.</text> </clause><clause id="HD3BD75D21F084853A300CDEDAC4609E6"><enum>(v)</enum><text>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.</text> </clause><clause id="HFF3ADF746BFC480BA08833175F58DF01"><enum>(vi)</enum><text>Recommendations to increase program participation and thereby reduce single occupancy vehicle use by Federal employees nationwide.</text> </clause></subparagraph></paragraph><paragraph id="H2B415D01444A486DBC6CA5DC15E32FC0"><enum>(6)</enum><header>Reporting requirements</header><text display-inline="yes-display-inline">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).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H6185BB7F5F30459F946803002C4D00CC"><enum>(d)</enum><header>Effective date</header><text display-inline="yes-display-inline">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.</text> </subsection></section><section display-inline="no-display-inline" id="HED668E0815C04A91A9F3D594E3DF355" section-type="subsequent-section"><enum>306.</enum><header>Capital cost of contracting vanpool pilot program</header> <subsection id="HA1C5BC3D16794A97920000B388467988"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H2B21720459B14B4BB38804BB255C8270"><enum>(b)</enum><header>Pilot program</header> <paragraph id="H0B46E3AF3ED64926BE920558FA11E41"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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).</text> </paragraph><paragraph id="H77B2F70318BB4BC79B596D5748D262C6"><enum>(2)</enum><header>Conditions on acquisition of vans</header><text>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.</text> </paragraph></subsection><subsection id="HE3631BA6F3EC4C61A9C55D8E08F4EFB"><enum>(c)</enum><header>Program term</header><text display-inline="yes-display-inline">The Secretary may approve an application for a vanpool demonstration project for fiscal years 2008 through 2009.</text> </subsection><subsection id="H530B88E5923C429EA8CD02970889E5C9"><enum>(d)</enum><header>Report to Congress</header><text display-inline="yes-display-inline">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.</text> </subsection></section><section display-inline="no-display-inline" id="H2306A564855A440F806DF70B257485" section-type="subsequent-section"><enum>307.</enum><header>National consumer awareness program</header> <subsection id="H046C684446AB402DBD73DF2607F2398"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="HF6F309BE07154C62A21EB0C356C0E422"><enum>(b)</enum><header>Authorization of appropriations</header><text>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.</text> </subsection></section><section display-inline="no-display-inline" id="HA82E5C17837F4EC08C13BC96B8E1FEB0" section-type="subsequent-section"><enum>308.</enum><header>Exception to alternative fuel procurement requirement</header><text display-inline="no-display-inline">Section 526 of the Energy Independence and Security Act of 2007 (Public Law 110–140; 42 U.S. C. 17142) is amended—</text> <paragraph id="H07C115ABEFBF42BAA0525DE54740BB1B"><enum>(1)</enum><text>by striking <quote>No Federal agency</quote> and inserting <quote>(a) <header-in-text level="subsection" style="OLC">Requirement.—</header-in-text>Except as provided in subsection (b), no Federal agency</quote>; and</text> </paragraph><paragraph id="HD29E9C76B2DC4E47A9B6E50206EA69A8"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HAEC28B425CE34DD69E368CC44D393169" style="OLC"> <subsection id="HC2748C984A7941440056FBC097630D2"><enum>(b)</enum><header>Exception</header><text display-inline="yes-display-inline">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—</text> <paragraph id="HD2E17205DA2B46378B22AFCC00BC0018"><enum>(1)</enum><text>the contract does not specifically require the contractor to provide an alternative or synthetic fuel or fuel from a nonconventional petroleum source;</text> </paragraph><paragraph id="HAFEAF03A146A46BB8B92E8B3ACB50017"><enum>(2)</enum><text>the purpose of the contract is not to obtain an alternative or synthetic fuel or fuel from a nonconventional petroleum source; and</text> </paragraph><paragraph id="H73B53BBB8D074885850978C158C67589"><enum>(3)</enum><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><enum>IV</enum><header>Greater Energy Efficiency in Building Codes</header> <section id="HC9BBE7567E0544A497E03FD645B879B8" section-type="subsequent-section"><enum>401.</enum><header>Greater energy efficiency in building codes</header> <subsection id="HD9BB0A311AC44CFB9C4000D22B7B84E3"><enum>(a)</enum><header>In general</header><text>Section 304 of the Energy Conservation and Production Act (42 U.S.C. 6833) is amended to read as follows:</text> <quoted-block id="HF56A3F61AE17488B8B748582CE059545" style="OLC"> <section id="HB42C0DA78FA34DF89791FDF8708E3751"><enum>304.</enum><header>Updating State building energy efficiency codes</header> <subsection id="H6A0C324FD1B54FC58E9E1E92357958E0"><enum>(a)</enum><header>Updating National Model Building Energy Codes</header><paragraph commented="no" display-inline="yes-display-inline" id="H93D5E623B5D947EABFFB17558C5304B6"><enum>(1)</enum><text>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—</text> <subparagraph id="H2516D55E282842EEAA72B018521E11E1" indent="up1"><enum>(A)</enum><text>30 percent in editions of each model code or standard released in or after 2010; and</text> </subparagraph><subparagraph id="HC41EF01C0F064D49A600E860F42BD3F2" indent="up1"><enum>(B)</enum><text>50 percent in editions of each model code or standard released in or after 2020.</text> </subparagraph></paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text><paragraph id="H6F98BDA737534BDDACD9853174707280" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H059B811962B344CE00589CCC6B00FB48"><enum>(A)</enum><text>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—</text> <clause id="H632EA5AADBC44B708F6C5BF2D86B9469" indent="up1"><enum>(i)</enum><text>whether such revision will improve energy efficiency in buildings; and</text> </clause><clause id="H5C293BC1D6534FC08B8186BF842282F2" indent="up1"><enum>(ii)</enum><text>whether such revision will meet the targets under paragraph (1).</text> </clause></subparagraph><subparagraph id="H06E710C172274621AD0294B1928CB194" indent="up1"><enum>(B)</enum><text>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—</text> <clause id="H36978BBC05404FCFAB70542843C0587E"><enum>(i)</enum><text>shall achieve the maximum level of energy savings that is technologically feasible and life-cycle cost-effective;</text> </clause><clause id="HD3690D7E46D84F8383C9DDC9CD2CC709"><enum>(ii)</enum><text>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</text> </clause><clause id="HF56247CEBC6E416BBCF0AA1D05E1A5C2"><enum>(iii)</enum><text>shall serve as the baseline for the next determination under subparagraph (A)(i).</text> </clause></subparagraph><subparagraph id="H82CC52D99A1548B599F1A89E692819DC" indent="up1"><enum>(C)</enum><text>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.</text> </subparagraph></paragraph></subsection><subsection id="H5A1870032F8F41D89C368171A543E160"><enum>(b)</enum><header>State certification of building energy code updates</header><paragraph commented="no" display-inline="yes-display-inline" id="H6A1E10F925314920A3225B4820C5D6B9"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="H990010F215884BD89E32027528B55D5F" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HBEC925E8B57B4600AEB71EB2FEFF1406"><enum>(A)</enum><text>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.</text> </subparagraph><subparagraph id="H396842A6ED8848AFA7A9B8554903F992" indent="up1"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph></subsection><subsection id="H495CBF36DEB14595AE58D39BFA26B0DF"><enum>(c)</enum><header>State certification of compliance with building codes</header><paragraph commented="no" display-inline="yes-display-inline" id="H55B3FAA9228746ED873C8841013E1913"><enum>(1)</enum><text>Each State shall, not later than 3 years after a certification under subsection (b), certify that it has—</text> <subparagraph id="H44C2EE6FD6B949A4A91BC920EE98046C" indent="up1"><enum>(A)</enum><text>achieved compliance under paragraph (3) with the certified State building energy code or with the associated model code or standard; or</text> </subparagraph><subparagraph id="HB9AB3AA8CA964AD493512BABFD63A3D" indent="up1"><enum>(B)</enum><text>made significant progress under paragraph (4) toward achieving compliance with the certified State building energy code or with the associated model code or standard.</text> </subparagraph></paragraph><continuation-text continuation-text-level="subsection">If the State certifies progress toward achieving compliance, the State shall repeat the certification each year until it certifies that it has achieved compliance.</continuation-text><paragraph id="H0DEDE220530E40CC00E5E87FF9CF139C" indent="up1"><enum>(2)</enum><text>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.</text> </paragraph><paragraph id="H47967AE78A8D451A94F8A8015FDE89D2" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H85D18DB30C3A48DEA4233174F29FB200"><enum>(A)</enum><text>A State shall be considered to achieve compliance under paragraph (1) if—</text> <clause id="H9D3CE368066D4343BDCEB5E732D46B76" indent="up1"><enum>(i)</enum><text>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</text> </clause><clause id="HD3E04B8A71A842DFBCA3C664D4328CFF" indent="up1"><enum>(ii)</enum><text>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.</text> </clause></subparagraph><subparagraph id="HF62F5465F98448DCA610CAA4DA88BC00" indent="up1"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="HB0726B5ACC604F9EB104FA05BAF14353" indent="up1"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H9B140C10E7DB479EA735CA1F1C88443E"><enum>(A)</enum><text>A State shall be considered to have made significant progress toward achieving compliance for purposes of paragraph (1) if the State—</text> <clause id="H641E62912F9545819FA17CEED0676F5" indent="up1"><enum>(i)</enum><text>has developed and is implementing a plan for achieving compliance within 8 years, assuming continued adequate funding, including active training and enforcement programs;</text> </clause><clause id="HCDAFB567DFB34C70B5A25F4909E5FA4D" indent="up1"><enum>(ii)</enum><text>after one or more years of adequate funding, has demonstrated progress, in conformance with the plan described in clause (i), toward compliance;</text> </clause><clause id="H2F7A471381264F818031B5A7B1ACA223" indent="up1"><enum>(iii)</enum><text>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</text> </clause><clause id="H961DCC18052246F6B374D300E7BE1B51" indent="up1"><enum>(iv)</enum><text>has not had more than 8 years of adequate funding.</text> </clause></subparagraph><subparagraph id="HFEEAEFA35B8442C8B9B30D925588E23" indent="up1"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph></subsection><subsection id="HE9B80BB8E3FC494588A82987E5F5CAF5"><enum>(d)</enum><header>Failure To Meet Deadlines</header><paragraph commented="no" display-inline="yes-display-inline" id="H24F81D44E76845B7B316C480485B20B0"><enum>(1)</enum><text>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—</text> <subparagraph id="H93CFC2230A654B65A85D0086397748B6" indent="up1"><enum>(A)</enum><text>the status of the State with respect to meeting the requirements and submitting the certification; and</text> </subparagraph><subparagraph id="H4446F62A647B4516BC28C2C0F8DFE719" indent="up1"><enum>(B)</enum><text>a plan for meeting the requirements and submitting the certification.</text> </subparagraph></paragraph><paragraph id="HACA68618989E41D589CEEE267CE763D" indent="up1"><enum>(2)</enum><text>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.</text> </paragraph><paragraph id="H362780D1C41544CF809215958E5B87DF" indent="up1"><enum>(3)</enum><text>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.</text> </paragraph><paragraph id="HEC60D99C91004C03A75C98D4C28E1D85" indent="up1"><enum>(4)</enum><text>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.</text> </paragraph></subsection><subsection id="H73B1DEA3903744259DACC99E02EBA493"><enum>(e)</enum><header>Technical assistance</header><paragraph commented="no" display-inline="yes-display-inline" id="H3FF794B902004B1C96E355F3D586F86E"><enum>(1)</enum><text>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).</text> </paragraph><paragraph id="H3C1B1FDE1BA24C64BCA8B52C3C448120" indent="up1"><enum>(2)</enum><text>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.</text> </paragraph></subsection><subsection id="H96715F8C5CCE4170942DD52F30DA1C4E"><enum>(f)</enum><header>Availability of incentive funding</header><paragraph commented="no" display-inline="yes-display-inline" id="HBDAD1D84A3BF43D4A6D9039710F92B15"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="H22357EA00B4F495A9021C087301B6245" indent="up1"><enum>(2)</enum><text>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—</text> <subparagraph id="H1578DEA36BA849B9843E50B4B3FADA58"><enum>(A)</enum><text>to a State that has adopted and is implementing, on a Statewide basis—</text> <clause id="H5C9765C18A0247929FA91B76EC48DE82"><enum>(i)</enum><text>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</text> </clause><clause id="HBEFC05E4C9B54BFD8E57C900193017C4"><enum>(ii)</enum><text>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</text> </clause></subparagraph><subparagraph id="H9F30AD149DF6439389D559CBA26EE53B"><enum>(B)</enum><text>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).</text> </subparagraph></paragraph><paragraph id="H6A39B6949D5043FB86B3F6BA61007363" indent="up1"><enum>(3)</enum><text>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).</text> </paragraph><paragraph id="HB27BB65322664280896459E214456F78" indent="up1"><enum>(4)</enum><text>There are authorized to be appropriated to carry out this subsection—</text> <subparagraph id="H38B1FA7421A44E4496C001EDDD11E26"><enum>(A)</enum><text>$70,000,000 for each of fiscal years 2009 through 2013; and</text> </subparagraph><subparagraph id="H91D00430DDD34AD500141510435051CF"><enum>(B)</enum><text>such sums as are necessary for fiscal year 2014 and each fiscal year thereafter.</text> </subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H0F8A68CD58424E8DBD30535C2E98022F"><enum>(b)</enum><header>Definition</header><text>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:</text> <quoted-block id="H1717A91F875647759B973D7CD18621C7" style="OLC"> <paragraph id="HB30ABFEC25F54AA7B095F548B481CBA"><enum>(17)</enum><text>The term <quote>IECC</quote> means the International Energy Conservation Code.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><enum>V</enum><header>Federal Renewable Electricity Standard</header> <section id="HF9D3401A04994684A4A53DC65A8874F" section-type="subsequent-section"><enum>501.</enum><header>Federal renewable electricity standard</header> <subsection id="H4A9802E46556468FB50092499C9FAF51"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Title VI of the Public Utility Regulatory Policies Act of 1978 is amended by adding at the end the following:</text> <quoted-block id="H0026B9231C4C4188AE10E61EF91B9DFE"> <section id="HD6B2FF0CA4AF4A7081226B8B43C17118"><enum>610.</enum><header>Federal renewable electricity standard</header> <subsection id="H161440D989464B939C824032B7DAAEB"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H75E44B9557484359986B35F0EBEDB5C"><enum>(1)</enum><header>Biomass</header> <subparagraph id="HC7F74128EA1140A3A6D2D791D28EA98E"><enum>(A)</enum><header>In general</header><text>The term <term>biomass</term> means each of the following:</text> <clause id="H29B779F0DF644615009558B118FB306F"><enum>(i)</enum><text>Cellulosic (plant fiber) organic materials from a plant that is planted for the purpose of being used to produce energy.</text> </clause><clause id="H8FD310EB34134DC4839500F4E4717491"><enum>(ii)</enum><text>Nonhazardous, plant or algal matter that is derived from any of the following:</text> <subclause id="HEA5E3FFF0FF14C73934F696CEA14EB27"><enum>(I)</enum><text>An agricultural crop, crop byproduct or residue resource.</text> </subclause><subclause id="H0C5483949F374D37AEA6E66B77F51682"><enum>(II)</enum><text display-inline="yes-display-inline">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).</text> </subclause></clause><clause id="H43B6D9D29C1E43BCB1A465879346BA1C"><enum>(iii)</enum><text display-inline="yes-display-inline">Animal waste or animal byproducts.</text> </clause><clause id="H8752BC4A632449969DCB756883731CD3"><enum>(iv)</enum><text>Landfill methane.</text> </clause></subparagraph><subparagraph id="H6BE4BB65ABBC4308A61164208CA3CE00"><enum>(B)</enum><header>National forest lands and certain other public lands</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H0B462BA9ABEE42A284343B81F891E361"><enum>(C)</enum><header>Exclusion of certain Federal lands</header><text display-inline="yes-display-inline">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:</text> <clause id="HA3FCE5C1BBBE4445A27CD5ECEFB3445C"><enum>(i)</enum><text display-inline="yes-display-inline">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.</text> </clause><clause id="HA7ABA733205B47B7BCFEFD42C51626A3"><enum>(ii)</enum><text display-inline="yes-display-inline">Federal land on which the removal of vegetation is prohibited, including components of the National Wilderness Preservation System.</text> </clause><clause id="HCC357021E2474AF4905E4E8EDEF3E181"><enum>(iii)</enum><text display-inline="yes-display-inline">Wilderness Study Areas.</text> </clause><clause id="HAFE7E47CDEEE4863BE83EB399DCF8EBB"><enum>(iv)</enum><text display-inline="yes-display-inline">Inventoried roadless areas.</text> </clause><clause id="HB0DCFEAFEC3D4C23897EB565E8E05C2C"><enum>(v)</enum><text display-inline="yes-display-inline">Components of the National Landscape Conservation System.</text> </clause><clause id="H962F77911949446FBD58B47975474368"><enum>(vi)</enum><text display-inline="yes-display-inline">National Monuments.</text> </clause></subparagraph></paragraph><paragraph id="HD39D5D649AA74AE497F89060CCECCA21"><enum>(2)</enum><header>Eligible facility</header><text>The term <term>eligible facility</term> means—</text> <subparagraph id="H38FDBED00EC94362A274D1BE25B281F2"><enum>(A)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph id="H8ACC05BB84CA4BFB0019FF1E43AB99E0"><enum>(B)</enum><text display-inline="yes-display-inline">a repowering or cofiring increment.</text> </subparagraph></paragraph><paragraph id="H0E1DE6FFB7FE4D1E984C5E00098C62B2"><enum>(3)</enum><header>Existing facility</header><text>The term <term>existing facility</term> means a facility for the generation of electric energy from a renewable energy resource that is not an eligible facility.</text> </paragraph><paragraph id="H8BFE4F21F1C54745A0513906E0A32519"><enum>(4)</enum><header>Incremental hydropower</header><text display-inline="yes-display-inline">The term <term>incremental hydropower</term> 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.</text> </paragraph><paragraph id="HF1C529F23EC64E7DBBCB10AB5B8220AA"><enum>(5)</enum><header>Indian land</header><text>The term <term>Indian land</term> means—</text> <subparagraph id="H7285E6EC81AF4679838201D12600962F"><enum>(A)</enum><text>any land within the limits of any Indian reservation, pueblo, or rancheria;</text> </subparagraph><subparagraph id="H1DEB92202A644A39937D81F26939EA00"><enum>(B)</enum><text>any land not within the limits of any Indian reservation, pueblo, or rancheria title to which was on the date of enactment of this paragraph either held by the United States for the benefit of any Indian tribe or individual or held by any Indian tribe or individual subject to restriction by the United States against alienation;</text> </subparagraph><subparagraph id="HC1B9D2D5ECE74A70BB8281BA8EC40982"><enum>(C)</enum><text>any dependent Indian community; or</text> </subparagraph><subparagraph id="HF4AD2B7092FD47678890F4C7A9B2DD05"><enum>(D)</enum><text>any land conveyed to any Alaska Native corporation under the Alaska Native Claims Settlement Act.</text> </subparagraph></paragraph><paragraph id="H5C9489B6361C4AEE87503FE8F43694CE"><enum>(6)</enum><header>Indian tribe</header><text>The term <term>Indian tribe</term> means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (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.</text> </paragraph><paragraph id="HC3C3ED7F155B4FFC8D77EFDD6B2526AE"><enum>(7)</enum><header>Renewable energy</header><text>The term <term>renewable energy</term> means electric energy generated by a renewable energy resource.</text> </paragraph><paragraph id="H9259332AE4714280B7CA92FAAD2EB9E"><enum>(8)</enum><header>Renewable energy resource</header><text display-inline="yes-display-inline">The term <term>renewable energy resource</term> means solar, wind, ocean, tidal, geothermal energy, biomass, landfill gas, incremental hydropower, or hydrokinetic energy.</text> </paragraph><paragraph id="H39AFC00ED24941139BDDF982231260BC"><enum>(9)</enum><header>Repowering or cofiring increment</header><text>The term <term>repowering or cofiring increment</term> means—</text> <subparagraph id="H1D2D76C50D5343DC882BA0739ED3CD32"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="HA96666EFAE394AC000FA54536ECFCE5"><enum>(B)</enum><text>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</text> </subparagraph><subparagraph id="H7E4C108853D14429A3EBA2FDA3409D7F"><enum>(C)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph id="H9C75FE74009D45F5BF6D96DCA9393C6B"><enum>(10)</enum><header>Retail electric supplier</header><subparagraph commented="no" display-inline="yes-display-inline" id="HBECE558043B546B58B61C885187E903B"><enum>(A)</enum><text display-inline="yes-display-inline">The term <term>retail electric supplier</term> 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.</text> </subparagraph><subparagraph id="H007417846D594EED82822334F7003FA0" indent="up1"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H7751A1649AF34AE2A25EF2D4E58F1194"><enum>(11)</enum><header>Retail electric supplier’s base amount</header><text>The term <term>retail electric supplier’s base amount</term> 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—</text> <subparagraph id="HDC3C172E798F4A758C13E6FB2794F140"><enum>(A)</enum><text display-inline="yes-display-inline">electric energy that is not incremental hydropower generated by a hydroelectric facility; and</text> </subparagraph><subparagraph id="H15D66A21CA574487A0999B9675DDBF31"><enum>(B)</enum><text display-inline="yes-display-inline">electricity generated through the incineration of municipal solid waste.</text> </subparagraph></paragraph></subsection><subsection id="H6FC338E073AF404097002672DF00E8E"><enum>(b)</enum><header>Compliance</header><text display-inline="yes-display-inline">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:</text> <paragraph id="HAE4E7A6CA7BE48D4BB51A00E8D62FB"><enum>(1)</enum><text display-inline="yes-display-inline">Federal renewable energy credits issued under subsection (e).</text> </paragraph><paragraph id="H0E5341C07D244461BC95824C6F0072D5"><enum>(2)</enum><text display-inline="yes-display-inline">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).</text> </paragraph><paragraph id="HEBEEC10A38AD465F804807BD118979A4"><enum>(3)</enum><text display-inline="yes-display-inline">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).</text> </paragraph><paragraph id="H9FDD7C9676E6417CB7D7EFBAFF8527B2"><enum>(4)</enum><text>Alternative compliance payments pursuant to subsection (j).</text> </paragraph></subsection><subsection id="HF4A584167403449EABB09E84F4191CD4"><enum>(c)</enum><header>Required annual percentage</header><text>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:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork"> <tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="297pts" min-data-value="250"></colspec><colspec coldef="fig" colname="column2" colwidth="96pts" min-data-value="5"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold><?xm-replace_text {Table Head Entry}?></bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>Required annual</bold></entry> </row> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>Calendar Years</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>percentage</bold></entry> </row> </thead> <tbody> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">2010</entry><entry align="right" colname="column2" rowsep="0">2.75</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">2011</entry><entry align="right" colname="column2" rowsep="0">2.75</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">2012</entry><entry align="right" colname="column2" rowsep="0">3.75</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="column2" rowsep="0">4.5</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">2014</entry><entry align="right" colname="column2" rowsep="0">5.5</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">2015</entry><entry align="right" colname="column2" rowsep="0">6.5</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">2016</entry><entry align="right" colname="column2" rowsep="0">7.5</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">2017</entry><entry align="right" colname="column2" rowsep="0">8.25</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">2018</entry><entry align="right" colname="column2" rowsep="0">10.25</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">2019</entry><entry align="right" colname="column2" rowsep="0">12.25</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">2020 and thereafter through 2039</entry><entry align="right" colname="column2" rowsep="0">15</entry> </row> </tbody> </tgroup> </table> </subsection><subsection id="H4FD14AB7DAAF428C80E339B61247AF4C"><enum>(d)</enum><header>Renewable energy and energy efficiency credits</header><paragraph commented="no" display-inline="yes-display-inline" id="H75B5DD0A5B5D436096D312D75CB44D55"><enum>(1)</enum><text>A retail electric supplier may satisfy the requirements of subsection (b)(1) through the submission of Federal renewable energy credits—</text> <subparagraph id="H64BE32B98F9C489BB15314B3B9DC87D5" indent="up1"><enum>(A)</enum><text>issued to the retail electric supplier under subsection (e);</text> </subparagraph><subparagraph id="H89D7D2E37BE1482BAD90DC58E19FE323" indent="up1"><enum>(B)</enum><text>obtained by purchase or exchange under subsection (f) or (g); or</text> </subparagraph><subparagraph id="HA67A5C95E0F24BC894A674C259116D55" indent="up1"><enum>(C)</enum><text>borrowed under subsection (h).</text> </subparagraph></paragraph><paragraph id="H4B4FD617E7004A13892B6FB9B5DF4F61" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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).</text> </paragraph><paragraph id="H42F8EE8191F14D00A40000A88B322277" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="H80DD02C04B884809AF56FC5CF5D8E28"><enum>(e)</enum><header>Issuance of Federal renewable energy credits</header><paragraph commented="no" display-inline="yes-display-inline" id="H64356DF7DBF84ECAB6F64B03EDA47B"><enum>(1)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="HD4D5CFE8316D43FDBCFD1FBF78F32365" indent="up1"><enum>(2)</enum><text>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—</text> <subparagraph id="H69D255F247FC482C8D5342F5737B93D"><enum>(A)</enum><text>the type of renewable energy resource used to produce the electricity;</text> </subparagraph><subparagraph id="H4DC63983A1EF4090AE2CA092FB4E2098"><enum>(B)</enum><text>the location where the electric energy was produced; and</text> </subparagraph><subparagraph id="HE7426D91608B4600B7EAC7F14D13E463"><enum>(C)</enum><text>any other information the Secretary determines appropriate.</text> </subparagraph></paragraph><paragraph id="HB0B79B64DFF44A67B6EC0C62C1FA608" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H3B29F910369643CAA9D2F27068211176"><enum>(A)</enum><text>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.</text> </subparagraph><subparagraph id="HA4F519A0675A45D491D2A934E7CD4540" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H404C00AD0FFC47E7A3CF13FE9F197E30" indent="up1"><enum>(C)</enum><text>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.</text> </subparagraph><subparagraph id="HBE809F73EA5E4661A76EC257945EF19C" indent="up1"><enum>(D)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H9C0B53E76F67429C886E3EA57164B24B" indent="up1"><enum>(E)</enum><text display-inline="yes-display-inline">In the case of an on-site eligible facility on Indian land no more than 3 credits per kilowatt hour may be issued.</text> </subparagraph><subparagraph id="H303EBFB4EDC04B74BB639B002C1DD706" indent="up1"><enum>(F)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H40D9F41220EC4258959239DEA49F1EB9" indent="up1"><enum>(G)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H5845D9E6B007465B9565354145E457DF" indent="up1"><enum>(H)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph></subsection><subsection id="H81192480DD4B4E3BB547C20082166C8B"><enum>(f)</enum><header>Existing facilities</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H5E24A6556DB64DBCA689A3F5123F23CD"><enum>(g)</enum><header>Renewable energy credit trading</header><paragraph commented="no" display-inline="yes-display-inline" id="H75689D2C4CAF46CFAC4D15CC43E73C3C"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="H27F40A526AA14A8AB200CF3236743E25" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="HC519B88BCA2244D7A981D4BA84417C7" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="HCB8F6EFE10B34D7682EAEB007206ED97"><enum>(h)</enum><header>Renewable energy credit borrowing</header><text>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—</text> <paragraph id="H93CC4095B78942B3A0448699D53E01B4"><enum>(1)</enum><text display-inline="yes-display-inline">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</text> </paragraph><paragraph id="H58B64ADCCCD04FEC8EE446B3FFA506B"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection><subsection id="HA00FE69E6A48439E82BEF4BA9D20455D"><enum>(i)</enum><header>Energy efficiency credits</header> <paragraph id="H72045CFF57E647C58775FB9B6E344EE"><enum>(1)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this subsection—</text> <subparagraph id="HF3549349BE9646C9B193BA3CAC4A684"><enum>(A)</enum><header>Customer facility savings</header><text display-inline="yes-display-inline">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—</text> <clause id="H35A64D8967F6401C80399689F09040BD"><enum>(i)</enum><text display-inline="yes-display-inline">consumption at the facility during a base year;</text> </clause><clause id="H03C2BBF8DBCB483588B7A27FADA03325"><enum>(ii)</enum><text display-inline="yes-display-inline">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</text> </clause><clause id="H378603F864594D979214BF7AD78D600"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case of a new facility, consumption at a reference facility.</text> </clause></subparagraph><subparagraph id="H2C1B33392DAF4E178F9F28E9946F245E"><enum>(B)</enum><header>Electricity savings</header><text display-inline="yes-display-inline">The term ‘electricity savings’ means—</text> <clause id="H219BB084EEC740560059E8F597B42A3"><enum>(i)</enum><text display-inline="yes-display-inline">customer facility savings of electricity consumption adjusted to reflect any associated increase in fuel consumption at the facility;</text> </clause><clause id="H6EA2F52393F1438782AF897C8C1DD88C"><enum>(ii)</enum><text display-inline="yes-display-inline">reductions in distribution system losses of electricity achieved by a retail electricity distributor, as compared to losses during the base years;</text> </clause><clause id="H8AC1A395E3B940F7B606CFFA155465D7"><enum>(iii)</enum><text display-inline="yes-display-inline">the output of new combined heat and power systems, to the extent provided under paragraph (5); and</text> </clause><clause id="HDDE3E708116A44B09358D4009CA3F995"><enum>(iv)</enum><text display-inline="yes-display-inline">recycled energy savings.</text> </clause></subparagraph><subparagraph id="H37FB7A25855C40F298D1B0C25FCC0089"><enum>(C)</enum><header>Qualifying electricity savings</header><text display-inline="yes-display-inline">The term ‘qualifying electricity savings’ means electricity savings that meet the measurement and verification requirements of paragraph (4).</text> </subparagraph><subparagraph id="HFDC5D93EF818434DBF7849CA15443304"><enum>(D)</enum><header>Recycled energy savings</header><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph id="H8C41F8235FE641D2B0D215453960313D"><enum>(2)</enum><header>Petition</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="HCE1381B77C394176B900642997777EBC"><enum>(3)</enum><header>Issuance of credits</header><subparagraph commented="no" display-inline="yes-display-inline" id="HF126440CA06D4996B2806B189C1B8DFC"><enum>(A)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="HC05781D4B25C40BCAF275C09F635D7D3" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">In accordance with regulations promulgated by the Secretary, the Secretary shall issue credits for—</text> <clause id="H30A9C3904B0C4BB09738ADEEF16F13AB"><enum>(i)</enum><text display-inline="yes-display-inline">qualified electricity savings achieved by a retail electric supplier in a calendar year; and</text> </clause><clause id="H70D8AB5E64D242EAA04DE8E572B62EE1"><enum>(ii)</enum><text display-inline="yes-display-inline">qualified electricity savings achieved by other entities if—</text> <subclause id="H822D5BB032FA424D87589145ECB998A8"><enum>(I)</enum><text display-inline="yes-display-inline">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</text> </subclause><subclause id="H2F1C6F9F49DA48E3BE3C63D1900906E5"><enum>(II)</enum><text display-inline="yes-display-inline">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).</text> </subclause></clause></subparagraph></paragraph><paragraph id="H0EADFC8DE4AB4A27B596EBF2B6E1377"><enum>(4)</enum><header>Measurement and verification of electricity savings</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="HCC1BD276B1EC4927B75C297DA8532842"><enum>(A)</enum><text display-inline="yes-display-inline">procedures and standards for defining and measuring electricity savings that will be eligible to receive credits under paragraph (3), which shall—</text> <clause id="H0375EEA5BA4A4E91A6D7D98172E981F"><enum>(i)</enum><text display-inline="yes-display-inline">specify the types of energy efficiency and energy conservation that will be eligible for the credits;</text> </clause><clause id="H601A7D7603E64255BA01D8AD36B65803"><enum>(ii)</enum><text display-inline="yes-display-inline">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;</text> </clause><clause id="H4F61C1D1AFB944C9BAD013AB2D2BEE76"><enum>(iii)</enum><text display-inline="yes-display-inline">account for the useful life of electricity savings measures;</text> </clause><clause id="HAF6E62400E4E4415827FCAA383F892DB"><enum>(iv)</enum><text display-inline="yes-display-inline">include specified electricity savings values for specific, commonly-used efficiency measures;</text> </clause><clause id="HA9D1F0C5749E4D3B9F86DA5B295F7C47"><enum>(v)</enum><text display-inline="yes-display-inline">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</text> </clause><clause id="H45281C019DD24781B6DA4F977CDB96FF"><enum>(vi)</enum><text display-inline="yes-display-inline">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;</text> </clause></subparagraph><subparagraph id="H84F68DBA421848AAAC2898268D866353"><enum>(B)</enum><text display-inline="yes-display-inline">procedures and standards for third-party verification of reported electricity savings; and</text> </subparagraph><subparagraph id="HCEC7E268647C419D811DFB3D821814E"><enum>(C)</enum><text display-inline="yes-display-inline">such requirements for information, reports, and access to facilities as may be necessary to carry out this subsection.</text> </subparagraph></paragraph><paragraph id="H3DE569FE690142B5905FBDD76F98D1C4"><enum>(5)</enum><header>Combined heat and power</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="H43A424688A624EBA8BB8CF19D6C97E0"><enum>(j)</enum><header>Enforcement</header><text display-inline="yes-display-inline">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).</text> </subsection><subsection id="H4CF2443804114341B56F05B5342141EC"><enum>(k)</enum><header>Alternative compliance payments</header><text display-inline="yes-display-inline">The Secretary shall accept payment equal to the lesser of:</text> <paragraph id="H1BA4EF683F68481F841961A56F44DF56"><enum>(1)</enum><text display-inline="yes-display-inline">200 percent of the average market value of Federal renewable energy credits and Federal energy efficiency credits for the applicable compliance period; or</text> </paragraph><paragraph id="HB625B077EBA84453891B2BE0F8813BF"><enum>(2)</enum><text display-inline="yes-display-inline">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,</text> </paragraph><continuation-text continuation-text-level="subsection">as a means of compliance under subsection (b)(4)</continuation-text></subsection><subsection id="H8C3E405647AE431ABEA2ABB4EB303D95"><enum>(l)</enum><header>Information collection</header><text>The Secretary may collect the information necessary to verify and audit—</text> <paragraph id="HD541962340FF46099275151E45C277AB"><enum>(1)</enum><text display-inline="yes-display-inline">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);</text> </paragraph><paragraph id="H0604966FA88743CA8B021E8BF20089AD"><enum>(2)</enum><text display-inline="yes-display-inline">annual electricity savings achieved pursuant to subsection (i);</text> </paragraph><paragraph id="HEB20CFB801774CE48FC5BFE845685572"><enum>(3)</enum><text>the validity of Federal renewable energy credits submitted for compliance by a retail electric supplier to the Secretary; and</text> </paragraph><paragraph id="H1B5D8419486642BA946710E8AA374F00"><enum>(4)</enum><text>the quantity of electricity sales of all retail electric suppliers.</text> </paragraph></subsection><subsection id="HE36FB515DF2E401A8688BDE171BFE2E9"><enum>(m)</enum><header>Environmental savings clause</header><text>Incremental hydropower shall be subject to all applicable environmental laws and licensing and regulatory requirements.</text> </subsection><subsection id="HB41F4461EFFB4FDEAC8823884C697F25"><enum>(n)</enum><header>State programs</header><paragraph commented="no" display-inline="yes-display-inline" id="H331E515B09DB44F4AEDBEF6E1EEDFFB"><enum>(1)</enum><text display-inline="yes-display-inline">Nothing in this section diminishes any authority of a State or political subdivision of a State to—</text> <subparagraph id="HFAAFF8060712477A88A492AA888F5F00" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph id="H960B8F6364B74F4B973FC3121898002D" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">regulate the acquisition and disposition of Federal renewable energy credits and Federal energy efficiency credits by retail electric suppliers.</text> </subparagraph><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph><paragraph id="H98D3B6A19E8C48D994D5935DE3DA4DB3" indent="up1"><enum>(2)</enum><text>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.</text> </paragraph></subsection><subsection id="HBD4909523BB941A1B89B8FC98EA6CE73"><enum>(o)</enum><header>Recovery of costs</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="HCC48698169E94650A576AFDDC8FBE2E"><enum>(p)</enum><header>Program review</header><text>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—</text> <paragraph id="HD10BBAF76B784E069ED0142077EFB028"><enum>(1)</enum><text>the effectiveness of the program in increasing the market penetration and lowering the cost of the eligible renewable energy and energy efficiency technologies;</text> </paragraph><paragraph id="HDE388DD2B08A4015922212E73057AA30"><enum>(2)</enum><text>the opportunities for any additional technologies and sources of renewable energy and energy efficiency emerging since enactment of this section;</text> </paragraph><paragraph id="H228D3818AB42404D8C03A389681B001F"><enum>(3)</enum><text>the impact on the regional diversity and reliability of supply sources, including the power quality benefits of distributed generation;</text> </paragraph><paragraph id="H7B54B618022A441C8DC46432FCEBAD9F"><enum>(4)</enum><text>the regional resource development relative to renewable potential and reasons for any under investment in renewable resources; and</text> </paragraph><paragraph id="HEE557270B0D442A5AA4B7D59E9B4BF1E"><enum>(5)</enum><text>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.</text> </paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection><subsection id="H6B6B8C7D02BD45C0A5DABA124F5EA87"><enum>(q)</enum><header>State renewable energy and energy efficiency account program</header><paragraph commented="no" display-inline="yes-display-inline" id="H4FD63ADF6F5D42D7A3BB3D7772B5DF6"><enum>(1)</enum><text display-inline="yes-display-inline">There is established in the Treasury a State renewable energy and energy efficiency account program.</text> </paragraph><paragraph id="H183A6AC7D7884033B269D12F27F05F9B" indent="up1"><enum>(2)</enum><text>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.</text> </paragraph><paragraph id="HB0411EC9DA7149EDA8B18EAF97A9D524" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H87E2EC25E98E44168DD6000063C65474" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H10DA072A95734F4585ED60D109EE3000"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for such title is amended by adding the following new item at the end:</text> <quoted-block display-inline="no-display-inline" id="H99AB00030BDC48439BD003F5CAB96725" style="OLC"> <toc container-level="quoted-block-container" idref="H0026B9231C4C4188AE10E61EF91B9DFE" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry idref="HD6B2FF0CA4AF4A7081226B8B43C17118" level="section">Sec. 610. Federal renewable electricity standard.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC34A7C2B05B84FCF9292DF6827B0CB7"><enum>(c)</enum><header>Sunset</header><text>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.</text> </subsection></section><enum>VI</enum><header>GREEN Resources for Energy Efficient Neighborhoods</header> <section id="H6C6650E2E41843B9969236AF32EF3641" section-type="subsequent-section"><enum>601.</enum><header>Short title and table of contents</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Green Resources for Energy Efficient Neighborhoods Act of 2008</short-title></quote> or the <quote><short-title>GREEN Act of 2008</short-title></quote> .</text> </section><section display-inline="no-display-inline" id="H3A1C338D5BD64DDA8DD23D088DA4CBF1" section-type="subsequent-section"><enum>602.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title, the following definitions shall apply:</text> <paragraph id="H2E9C3EBD88544B65ACB237BBF54FF9C1"><enum>(1)</enum><header>Green building standards</header><text>The term <quote>green building standards</quote> 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.</text> </paragraph><paragraph id="HE8F96C9294174D6B9792800004140015"><enum>(2)</enum><header>HUD</header><text>The term <quote>HUD</quote> means the Department of Housing and Urban Development.</text> </paragraph><paragraph id="H2B55CE004DE746EEA20025F1D80045EA"><enum>(3)</enum><header>HUD assistance</header><text>The term <quote>HUD assistance</quote> means financial assistance that is awarded, competitively or noncompetitively, allocated by formula, or provided by HUD through loan insurance or guarantee.</text> </paragraph><paragraph id="HF6FA998945F34221A19FBBF2F8FA5307"><enum>(4)</enum><header>Nonresidential structure</header><text>The term <quote>nonresidential structures</quote> 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.</text> </paragraph><paragraph id="H9D0AB9AD38084A6CB2E31904AB04C514"><enum>(5)</enum><header>Secretary</header><text>The term <quote>Secretary</quote>, unless otherwise specified, means the Secretary of Housing and Urban Development.</text> </paragraph></section><section id="H904CC6C7809B4B058B5FD3ED2A4EDAF"><enum>603.</enum><header>Implementation of energy efficiency participation incentives for HUD programs</header> <subsection id="HB8133E05EA6148EE98AF72461BB2F5C2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H38F7F2EEA52C4CD595557C77E8666FA3"><enum>(b)</enum><header>Requirement for appropriation of funds</header><text>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.</text> </subsection></section><section id="H9BEA01EEF1584AF69175E4B00A86EB9"><enum>604.</enum><header>Minimum HUD energy efficiency standards and standards for additional credit</header> <subsection id="H03B172DFCDF943A5B973C82B47546C8C"><enum>(a)</enum><header>Minimum HUD standard</header> <paragraph id="H917F008662414E3185928E498ED00768"><enum>(1)</enum><header>Residential structures</header><text display-inline="yes-display-inline">A residential single family or multifamily structure shall be considered to comply with the energy efficiency requirements under this subsection if—</text> <subparagraph id="HBD5119776BF34DB496FD4C8248D20707"><enum>(A)</enum><text display-inline="yes-display-inline">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);</text> </subparagraph><subparagraph id="HE8E49082C2D54259815B22B8F73774F"><enum>(B)</enum><text display-inline="yes-display-inline">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);</text> </subparagraph><subparagraph id="HAAA49070E84B4B40B59886EEB58C40D"><enum>(C)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph id="HBC9C3B7ACEA749E8808585B806C6D9F"><enum>(D)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph><paragraph id="HFB9B0FD499884600B859855F8DF200EF"><enum>(2)</enum><header>Nonresidential structures</header><text display-inline="yes-display-inline">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).</text> </paragraph></subsection><subsection id="H6376035B24B44488BBCB3A500D8295B"><enum>(b)</enum><header>Additional credit for compliance with enhanced energy efficiency standards</header> <paragraph id="HE9F0186A6F4348A999B5F1F1D6DB50F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H5A279F14A3E940E6A12649441E334C8E"><enum>(2)</enum><header>Energy efficiency and conservation standards</header><text>The energy efficiency and conservation standards under this paragraph are as follows:</text> <subparagraph id="H6BB35479E26B4728B18F1E7E389DF04B"><enum>(A)</enum><header>Residential structures</header><text>With respect to residential structures:</text> <clause id="H0BF4D948FA7447CEA61C40E157653C91"><enum>(i)</enum><header>New construction</header><text display-inline="yes-display-inline">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);</text> </clause><clause id="H00CB406B342E45718F6677070232E466"><enum>(ii)</enum><header>Existing structures</header><text>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).</text> </clause></subparagraph><subparagraph id="HCD1EDB8CFC384E91A2F452B266F842ED"><enum>(B)</enum><header>Nonresidential structures</header><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph id="HE0BCD750126145E4BC57CB24E7D4719B"><enum>(3)</enum><header>Green building standards</header><text>The green building standards under this paragraph are as follows:</text> <subparagraph commented="no" id="H69BBF2763A7741E69BFEA4CB5C388CF0"><enum>(A)</enum><text>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).</text> </subparagraph><subparagraph commented="no" id="H01D161FAB8104E6093FE962992A620CA"><enum>(B)</enum><text display-inline="yes-display-inline">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).</text> </subparagraph><subparagraph id="HB162E481D3FC4B27B802172CA28B5934"><enum>(C)</enum><text>The Green Globes assessment and rating system of the Green Buildings Initiative.</text> </subparagraph><subparagraph id="H75E720F2025F4FDA8BE364F639336B67"><enum>(D)</enum><text display-inline="yes-display-inline">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).</text> </subparagraph><subparagraph display-inline="no-display-inline" id="HCC81D3B9B9BD4F0886DB63A57039722F"><enum>(E)</enum><text display-inline="yes-display-inline">The National Green Building Standard, but such standard shall apply for purposes of this paragraph only—</text> <clause id="H103AF9AC8EDD4E7D927D87EA2BAD7418"><enum>(i)</enum><text>if such standard is ratified under the American National Standards Institute process;</text> </clause><clause id="HBCE0BCC9703B4DF09BFCC26B434B00A"><enum>(ii)</enum><text>upon expiration of the 180-day period beginning upon such ratification; and</text> </clause><clause id="H26A8DEF08DA3442384E643ED10B2DD6C"><enum>(iii)</enum><text>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.</text> </clause></subparagraph><subparagraph id="H5EB9224A8AAC46AFA8E2BDA67BF545D0"><enum>(F)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph id="H6726C6DD392A4D7097792C3F4090C349"><enum>(4)</enum><header>Green building</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>green building</quote> 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.</text> </paragraph><paragraph id="H82D333A9189D42688885E63E46405524"><enum>(5)</enum><header>Energy audits</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H78D5016B84EA45C49C595BD3E650D093"><enum>(c)</enum><header>Applicability and updating of standards</header> <paragraph id="H09C5CBEEADE1424E9762DE173FE229D7"><enum>(1)</enum><header>Applicability</header><text>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.</text> </paragraph><paragraph id="HC1604B4E30EA40DB8FA88001D6154B5"><enum>(2)</enum><header>Updating</header><text display-inline="yes-display-inline">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).</text> </paragraph></subsection></section><section id="HC9BD37172F1D4AD1B73676FD7353E427" section-type="subsequent-section"><enum>605.</enum><header>Energy efficiency and conservation demonstration program for multifamily housing projects assisted with project-based rental assistance</header> <subsection id="H5709EBE271D84C279C486BB69B9CCCEB"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H84269AE0E16E410B9D22682BFF565F79"><enum>(b)</enum><header>Goals</header><text display-inline="yes-display-inline">The demonstration program under this section shall be carried out in a manner that—</text> <paragraph id="H1C46A3771FA14536BB78B0173752CB92"><enum>(1)</enum><text>protects the financial interests of the Federal Government;</text> </paragraph><paragraph id="H498A115423844BEEB31891CB6FEC5054"><enum>(2)</enum><text>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;</text> </paragraph><paragraph id="HDE47969F1C9046F9917951353C5FADD5"><enum>(3)</enum><text>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;</text> </paragraph><paragraph id="H71AAC06E0EB04B4793C4B3141B8CFF0"><enum>(4)</enum><text>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;</text> </paragraph><paragraph id="H8578A491349F42E09C00BC9FC489133B"><enum>(5)</enum><text display-inline="yes-display-inline">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;</text> </paragraph><paragraph id="HBC0F4E82C1944727905D746B2400B71E"><enum>(6)</enum><text>tests the efficacy of a variety of energy efficiency measures for multifamily housing projects of various sizes and in various geographic locations;</text> </paragraph><paragraph id="HE7B2EE6B8DAB4B29911171E74DEC2048"><enum>(7)</enum><text>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</text> </paragraph><paragraph id="H4CF1AFC5DCB544F1A237E7EF009A3CD"><enum>(8)</enum><text>creates a database of energy efficiency and conservation, and renewable energy, techniques, energy savings management practices, and energy efficiency and conservation financing vehicles.</text> </paragraph></subsection><subsection id="H026B984C9D49465E8F9000D0A466919E"><enum>(c)</enum><header>Approaches</header><text display-inline="yes-display-inline">In carrying out the demonstration program under this section, the Secretary may—</text> <paragraph id="H10B7706E37FE4E75968020CE92E5878C"><enum>(1)</enum><text display-inline="yes-display-inline">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;</text> </paragraph><paragraph id="H6A56C8DE40F740FEA9F93379A87C9411"><enum>(2)</enum><text display-inline="yes-display-inline">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.);</text> </paragraph><paragraph id="HFFDD24E1FB014512AE5359458B976EFD"><enum>(3)</enum><text display-inline="yes-display-inline">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;</text> </paragraph><paragraph id="H0929875668A349C500C31E3C3BD1EF4B"><enum>(4)</enum><text>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</text> </paragraph><paragraph id="H51432E541FF74E84AA9DD3402F88332B"><enum>(5)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="HD23E60E13E194C368FEF9653ADF0CF2E"><enum>(d)</enum><header>Requirement</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="HD4D2D31D6D7B4CFB97AB022280DBF2A4"><enum>(e)</enum><header>Selection</header> <paragraph id="H962C42EE617F4783B52F6B8C6DC44C11"><enum>(1)</enum><header>Scope</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H7A6D41FAE8F248BEBCBF08A7FB71C705"><enum>(2)</enum><header>Priority</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="H165EFEF029514081AC5BE245E6072D00"><enum>(f)</enum><header>Use of existing partnerships</header><text display-inline="yes-display-inline">To the extent feasible, the Secretary shall—</text> <paragraph id="HEC54020861654ADB8C1CF12BC246D79F"><enum>(1)</enum><text display-inline="yes-display-inline">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</text> </paragraph><paragraph id="H33B0A00CB79945578920C58C3D736E63"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="H9F0F8E55101B4E72A47E88E700071346"><enum>(g)</enum><header>Reports</header> <paragraph id="H8BE817192C914BD6A411C6A32D48896B"><enum>(1)</enum><header>Annual</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H477B3D2718A649618B9E0014BC00A2B9"><enum>(2)</enum><header>Final</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="H5677EE268EB1440FB23E00C2398F4DF9"><enum>(A)</enum><text>shall assess the potential for expanding the demonstration program on a nationwide basis; and</text> </subparagraph><subparagraph id="HF23E1CCBB9604C53A7F300E5F51D9674"><enum>(B)</enum><text>shall include descriptions of—</text> <clause id="HC8ECC34585604540A373C0E08CC4182"><enum>(i)</enum><text>the size of each multifamily housing project for which assistance was provided under the program;</text> </clause><clause id="HA89CEBCC842F4F1FB78286BA2F499949"><enum>(ii)</enum><text>the geographic location of each project assisted, by State and region;</text> </clause><clause id="HC45C612A370449B5B7C42D5599F07BAE"><enum>(iii)</enum><text>the criteria used to select the projects for which assistance is provided under the program;</text> </clause><clause id="HF13968894F8D42489E24F682C386D01E"><enum>(iv)</enum><text>the energy efficiency and conservation measures and financing sources used for each project that is assisted under the program;</text> </clause><clause id="H4A8DAE2976C145F18B8B055F73501D11"><enum>(v)</enum><text display-inline="yes-display-inline">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;</text> </clause><clause id="HB2CA473F017E49EA97C68F3D1E2F2B96"><enum>(vi)</enum><text>the average length of the term of the such assistance provided under the program for a project;</text> </clause><clause id="HA8495C5EA91A43319DCD4CEB0200C335"><enum>(vii)</enum><text>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;</text> </clause><clause id="H2420B8A7E0024A0681DE18DCDE3537F"><enum>(viii)</enum><text>the functions performed in connection with the implementation of the demonstration program that were transferred or contracted out to any third parties;</text> </clause><clause id="H0084DE9D768F48E697007D163E2CDDF"><enum>(ix)</enum><text>an evaluation of the overall successes and failures of the demonstration program; and</text> </clause><clause id="HE82BB19A29D1489FA36CD2F9341FCA3D"><enum>(x)</enum><text>recommendations for any actions to be taken as a result of the such successes and failures.</text> </clause></subparagraph></paragraph><paragraph id="HB5E98855641F4D88B6BADF666F385C4B"><enum>(3)</enum><header>Contents</header><text>Each annual report pursuant to paragraph (1) and the final report pursuant to paragraph (2) shall include—</text> <subparagraph id="HE07530C0F82841C892B849D6E246A761"><enum>(A)</enum><text>a description of the status of each multifamily housing project selected for participation in the demonstration program under this section; and</text> </subparagraph><subparagraph id="H4090ACDD53604A2EB6118E2C997273D0"><enum>(B)</enum><text>findings from the program and recommendations for any legislative actions.</text> </subparagraph></paragraph></subsection><subsection id="H377977E62AFC4FE6B66567C837BED59"><enum>(h)</enum><header>Covered multifamily assistance program</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>covered multifamily assistance program</quote> means—</text> <paragraph id="H885ECAD0CE7C4275AFABC519725279C5"><enum>(1)</enum><text display-inline="yes-display-inline">the program under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) for project-based rental assistance;</text> </paragraph><paragraph id="H5F7EB266D9F14DA600C1A354391E64F3"><enum>(2)</enum><text>the program under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for assistance for supportive housing for the elderly;</text> </paragraph><paragraph id="HED2D77CD027B4142BF009D8FF9957E4"><enum>(3)</enum><text>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</text> </paragraph><paragraph id="HA366D700C67A4184989FE201120769FC"><enum>(4)</enum><text>the program for assistance under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4111).</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H6615B079482B4FE29B557FA0FF8153BB"><enum>(i)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H7482A6651E664807994B90649692D139"><enum>(j)</enum><header>Regulations</header><text display-inline="yes-display-inline">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.</text> </subsection></section><section id="H6FDB17ECCD3344FBAA2225755E40091C"><enum>606.</enum><header>Additional credit for Fannie Mae and Freddie Mac housing goals for energy efficient mortgages</header><text display-inline="no-display-inline">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—</text> <paragraph id="H6BD1D82DBE3B4CCF877D8138F5303801"><enum>(1)</enum><text>in paragraph (2), by striking <quote>paragraph (5)</quote> and inserting <quote>paragraphs (5) and (6)</quote>; and</text> </paragraph><paragraph id="H5D220820B6E84715A294C7F4E200756F"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block id="HDD906B6273D2461795089831464F60F9" style="OLC"> <paragraph id="HAF5CE0A5596D4C6CB1001EFAE5007624"><enum>(6)</enum><header>Additional credit</header> <subparagraph id="HAF83BFEA11BE46F4B36635D655E58700"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In assigning credit toward achievement under this section of the housing goals for mortgage purchase activities of the enterprises, the Director shall assign—</text> <clause id="HEE25AD8D1CA94A33BBB1E400FEDEAB15"><enum>(i)</enum><text display-inline="yes-display-inline">more than 125 percent credit, for such purchases that both—</text> <subclause id="H222BB561A531484DBB7EE8E8DA97C845"><enum>(I)</enum><text>comply with the requirements of such goals; and</text> </subclause><subclause id="H12A981F17F304183B04C4FB9FE9317E3"><enum>(II)</enum><text>support housing that meets the energy efficiency standards under section 604(a) of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2008</short-title>; and</text> </subclause></clause><clause id="H338F2C6A50244E21B73192E53271DA2F"><enum>(ii)</enum><text display-inline="yes-display-inline">credit in addition to credit under clause (i), for purchases that both—</text> <subclause id="H8D824C31567E450387A9BA02AABBADD2"><enum>(I)</enum><text>comply with the requirements of such goals, and</text> </subclause><subclause id="H6AFF0386D89F409698AC452E132C047D"><enum>(II)</enum><text>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,</text> </subclause><continuation-text continuation-text-level="clause">and such additional credit shall be given based on the extent to which the housing supported with such purchases complies with such standards.</continuation-text></clause></subparagraph><subparagraph id="H964C912185C64AA5BD3321D0EF30728B"><enum>(B)</enum><header>Treatment of additional credit</header><text>The availability of additional credit under this paragraph shall not be used to increase any housing goal, subgoal, or target established under this subpart.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="HBF70F93A2E30429897B27F7B00C9AE13" section-type="subsequent-section"><enum>607.</enum><header>Duty to serve underserved markets for energy-efficient and location-efficient mortgages</header><text display-inline="no-display-inline">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—</text> <paragraph id="H36BEE057D9654D64B6E862DA3683BD76"><enum>(1)</enum><text>in subsection (a)(1), by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HF9097EC9856748488764661827F6DC29" style="OLC"> <subparagraph commented="no" id="HD9AAD85BF5254A60A707F966EDDD0038"><enum>(D)</enum><header>Markets for energy-efficient and location-efficient mortgages</header> <clause commented="no" id="HAE5BEF20E28A41128EE224C3E02284B"><enum>(i)</enum><header>Duty</header><text>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.</text> </clause><clause commented="no" id="HCCB3CBBFD15D47BB8FE940A360DD1C9E"><enum>(ii)</enum><header>Authority to suspend</header><text display-inline="yes-display-inline">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.</text> </clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="HCB8ECAF27B964F65B37FEA3483D0C9AE"><enum>(2)</enum><text>by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H39D102022912402E9FD1D164C60F8CE" style="OLC"> <subsection id="H08F57D1585B04D1198D072BDD523FB00"><enum>(e)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following definitions shall apply:</text> <paragraph id="HAD3BD0CB4E7741AC9DD0108CBF92008D"><enum>(1)</enum><header>Energy-efficient mortgage</header><text>The term <quote>energy efficient mortgage</quote> 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.</text> </paragraph><paragraph id="H7F7A802EBB684C4D804186072905CF52"><enum>(2)</enum><header>Location-efficient mortgage</header><text display-inline="yes-display-inline">The term <quote>location efficient mortgage</quote> means a mortgage loan under which—</text> <subparagraph id="HA09999A638354994B5496152C6F2FD1F"><enum>(A)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph id="HDE3CDE9090FD418BA4A3B97F22AF08D8"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="H2DF67F06AE2E4220A495E3B23706E0D0" section-type="subsequent-section"><enum>608.</enum><header>Consideration of energy efficiency under FHA mortgage insurance programs and Native American and Native Hawaiian loan guarantee programs</header> <subsection id="H4AF3C73C1603440F802CC7272121BF65"><enum>(a)</enum><header>FHA mortgage insurance</header> <paragraph id="H6F67CAB6E38B40A48FBC3EBFFFA349D"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Title V of the National Housing Act is amended by adding after section 542 (12 U.S.C. 1735f–20) the following new section:</text> <quoted-block display-inline="no-display-inline" id="H317AC14443A24BF7A4AB7F22F8460074" style="OLC"> <section id="HAA96B5E5B22943B68EA8AB0270361324"><enum>543.</enum><header>Consideration of energy efficiency</header> <subsection id="H70FE71EED7DE43DCB6FD00B1912F1EE1"><enum>(a)</enum><header>Underwriting standards</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H43EDDA2C9E4C4F34B38BBA79003B85A"><enum>(b)</enum><header>Goal</header><text>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.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HDA7974A0A4234577B4AFC4D811E77BC4"><enum>(2)</enum><header>Reporting on defaults</header><text>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:</text> <quoted-block display-inline="no-display-inline" id="H055EC9F8238745E7866D5E6D7CD4652D" style="OLC"> <paragraph id="HEADA8512727A416795A33D7D83F265BD"><enum>(3)</enum><text display-inline="yes-display-inline">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 <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2008</short-title> 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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection display-inline="no-display-inline" id="HEA0416559F1D4A718B3E8138B55CB983"><enum>(b)</enum><header>Indian housing loan guarantees</header> <paragraph id="HF4C0B42BB0A148C49D01B90846E200AC"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Section 184 of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a) is amended—</text> <subparagraph id="HE67582AC0B25451589809E9976F6FF88"><enum>(A)</enum><text>by redesignating subsection (l) as subsection (m); and</text> </subparagraph><subparagraph id="H6E6FC397404B4DBFB88FD319B8EC7720"><enum>(B)</enum><text>by inserting after subsection (k) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H3F56253273554B698E6B922B698C997D" style="OLC"> <subsection id="H51BDC1B7C4AF4DEE8F49008B64FD0055"><enum>(l)</enum><header>Consideration of energy efficiency</header><text display-inline="yes-display-inline">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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="HE41B58B7A5E543639B57B1BECD89747B"><enum>(2)</enum><header>Reporting on defaults</header><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="HF2F04C8B70C844E681064E09D7333E7" style="OLC"> <paragraph id="H0534A39D70624D300068C723E87B886F"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection display-inline="no-display-inline" id="HEDCA2D93CDA749AFAAF336B99746C600"><enum>(c)</enum><header>Native Hawaiian housing loan guarantees</header> <paragraph id="HFFF6C7DDB94A4BB2A36320971EA72333"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="HF4AE12E739C746F483E7108106EDC8D" style="OLC"> <subsection id="H7D41888613C044FA8542DFFA092721C4"><enum>(m)</enum><header>Energy-efficient housing requirement</header><text display-inline="yes-display-inline">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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H5F9389DD31434D99B6F25C9E4ECF249D"><enum>(2)</enum><header>Reporting on defaults</header><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="HB64C3F1042C54A26A556001E0394823C" style="OLC"> <paragraph id="H7CFBB57144F44397B4786CBA5CBACD00"><enum>(5)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="HF772B793674B4920AEB05CC3538EF721"><enum>609.</enum><header>Energy efficient mortgages education and outreach campaign</header><text display-inline="no-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="H21647E2174D947F5930000D825E80009" style="OLC"> <subsection id="H22313D497E274BC2B60076CDFEECA94"><enum>(g)</enum><header>Education and outreach campaign</header> <paragraph id="H3EA2D4BA7B8C46B4BB7ECA87C1DD23C"><enum>(1)</enum><header>Development of energy-efficient mortgage outreach program</header> <subparagraph id="H26EEB39BBA0B4B01B2A08D743B4B8774"><enum>(A)</enum><header>Commission</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="HC9CA0EDEDB864786BA9D595BCD681EFB"><enum>(B)</enum><header>Report</header><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph id="H1AA34655ADBF42568978E12B781509F1"><enum>(2)</enum><header>Implementation</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H59B34E4C2AC94C69B695D74B66115C98"><enum>(3)</enum><header>Renewable energy home product expos</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H28A19DF00D4B4700B44ED1ACBFB24700"><enum>(4)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H823CE8E65B394CBFA6ECC820A200FC55"><enum>610.</enum><header>Collection of information on energy-efficient and location efficient mortgages through Home Mortgage Disclosure Act</header> <subsection id="HCC01B904378A4A7B80DA7D09E515C4FA"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 304(b) of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(b)) is amended—</text> <paragraph id="HC583854D77E94441B7F08EB000C28E56"><enum>(1)</enum><text>in paragraph (3), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="HD80C77319A0449B4B345E8AEA1C04"><enum>(2)</enum><text>in paragraph (4), by striking the period at the end and inserting a semicolon; and</text> </paragraph><paragraph id="H01A988A5FD12427AA2511ECAF3F7D344"><enum>(3)</enum><text>by adding at the end the following new paragraphs:</text> <quoted-block display-inline="no-display-inline" id="HC1F9134945B24EFD8C04BC615F156CD4" style="OLC"> <paragraph id="H6F37F7829FE241CBB357BBC1972EB106"><enum>(5)</enum><text display-inline="yes-display-inline">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</text> </paragraph><paragraph id="H6D733E1750B04D9DBD6CBFEC17EA48E4"><enum>(6)</enum><text display-inline="yes-display-inline">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).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H86F60BD7921B440796BA768FB71CF676"><enum>(b)</enum><header>Applicability</header><text>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.</text> </subsection></section><section id="HB3432AF2B1634C359FC1574DEDE6436"><enum>611.</enum><header>Ensuring availability of homeowners insurance for homes not connected to electricity grid</header> <subsection id="H802D561B626148A5BA0943C69C26C92E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H61C29D1F5EA44CEE857BB51D3B79A635"><enum>(b)</enum><header>Consideration of actuarial risk</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="HE43A6BDE1AF043C99148CB07C48E7CEA"><enum>(c)</enum><header>Insuring homes and related property in Indian areas</header><text>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.</text> </subsection><subsection id="H7F0637ECDFFC4D7C00185251F9D20987"><enum>(d)</enum><header>Covered structure</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>covered structure</quote> means a residential structure that—</text> <paragraph id="H2FC247FEA9724886B0EA9380AD990045"><enum>(1)</enum><text>consists of one to four dwelling units;</text> </paragraph><paragraph id="H2DD2D60BD0D04391AB4019BC78301F77"><enum>(2)</enum><text>is provided power, heat, or electricity from renewable energy sources (such as solar, wind, geothermal, or biomass) or a fuel cell; and</text> </paragraph><paragraph id="H168C516241B040159EBD7B50E7FB6C6B"><enum>(3)</enum><text>is not connected to any wholesale or retail electrical power grid.</text> </paragraph></subsection></section><section id="HFDADF398DA4C4EC98D3F2D3267D421CE"><enum>612.</enum><header>Mortgage incentives for energy-efficient multifamily housing</header> <subsection id="H1F2B85C0915B4A5EB13800E9E02904DC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H43296F3174F64F679600EC1CE7B1A564"><enum>(b)</enum><header>Incentives</header><text display-inline="yes-display-inline">Such incentives may include, for any such multifamily housing that complies with the energy efficiency standards under section 604(a)—</text> <paragraph id="H9653743FA5844806B6A967A7B0006F86"><enum>(1)</enum><text>providing a discount on the chargeable premiums for the mortgage insurance for such housing from the amount otherwise chargeable for such mortgage insurance;</text> </paragraph><paragraph id="HEF020CA7A7A54B6B80E371EE42347993"><enum>(2)</enum><text display-inline="yes-display-inline">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</text> </paragraph><paragraph id="H839C1D78477F4E90AF613BBD3C73D4F6"><enum>(3)</enum><text>reducing the amount that the owner of such multifamily housing meeting the standards referred to in subsection (a) is required to contribute.</text> </paragraph></subsection></section><section id="H5F5F8F5FBDF64E768145B9FB52E07184"><enum>613.</enum><header>Energy efficiency certifications for housing with mortgages insured by FHA</header><text display-inline="no-display-inline">Section 526 of the National Housing Act (12 U.S.C. 1735f–4(a)) is amended—</text> <paragraph id="HAE88442CB9FC4A2E97654F6299ACA9"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="HA136FF5444604EA39EAF307900E446A4"><enum>(A)</enum><text>by striking <quote>, other than manufactured homes,</quote> each place such term appears;</text> </subparagraph><subparagraph id="H907FAE2D3F3C441BBBA4A408C0FC5E8F"><enum>(B)</enum><text>by inserting after the period at the end the following: <quote>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.</quote>;</text> </subparagraph><subparagraph id="H7CB612A3545B4C3391D6083D9D05C812"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting <quote>(1)</quote> after <quote>(a)</quote>; and</text> </subparagraph><subparagraph id="H875B92DC7F804ED5B400E6FDBBCFFE4E"><enum>(D)</enum><text>by adding at the end the following new paragraphs:</text> <quoted-block id="HE35EFE5698A5430ABBF283FFC89FE1C5" style="OLC"> <paragraph id="H350B52196E8D478FA5AEA4E8006BA079" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="HD66C2D2CC1DE4EA8008BB1D885C71300" indent="up1"><enum>(3)</enum><text>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.</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" id="H8244E1F4DF0748AA8630619091832CCA"><enum>(2)</enum><text>in subsection (b), by striking <quote>, other than a manufactured home,</quote>.</text> </paragraph></section><section id="H2586EAA5CEE94E86854B7333642D3CCB"><enum>614.</enum><header>Assisted housing energy loan pilot program</header> <subsection id="HFFD59FAB0C5A45B9A2D1A5EC48871CC"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="HB01A2785101F4DAEBC317C6FBBFEF06D"><enum>(b)</enum><header>Loans</header><text display-inline="yes-display-inline">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—</text> <paragraph id="H03E38D303B3A4AD0AD33E0404CCE66A8"><enum>(1)</enum><text display-inline="yes-display-inline">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;</text> </paragraph><paragraph id="H8FD486507D9849649EDA9B5D3E9CB5AE"><enum>(2)</enum><text>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;</text> </paragraph><paragraph id="H510F00F141444F40B222EF3671A1DF8F"><enum>(3)</enum><text>be secured by a mortgage subordinate to the mortgage for the project that is insured under the National Housing Act; and</text> </paragraph><paragraph id="HDB35DDD6A7234539AFD67EB6CFEDD4E5"><enum>(4)</enum><text>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.</text> </paragraph></subsection><subsection id="H793373C574E548A990C82CC8CC5CD9DC"><enum>(c)</enum><header>Underwriting standards</header><text>The Secretary shall establish underwriting requirements for loans made under the pilot program under this section, which shall—</text> <paragraph id="H3B116F698D43402F9D78C01F6C5805A8"><enum>(1)</enum><text>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;</text> </paragraph><paragraph id="H56CA46EC80744464AC59D4816B70EEC6"><enum>(2)</enum><text>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</text> </paragraph><paragraph id="H414A8028B016493B89744C215F7D16D7"><enum>(3)</enum><text>include such energy, audit, property, financial, ownership, and approval requirements as the Secretary considers appropriate.</text> </paragraph></subsection><subsection id="H6BFC586850ED4CD5B352CE55C00321C"><enum>(d)</enum><header>Treatment of savings</header><text>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.</text> </subsection><subsection id="H07859376F8E342368B386425A81EA6C1"><enum>(e)</enum><header>Covered assisted housing projects</header><text>For purposes of this section, the term <quote>covered assisted housing project</quote> means a housing project that—</text> <paragraph id="H4EE72C075B4C4DE9B5BCA9692564A6E3"><enum>(1)</enum><text>is financed by a loan or mortgage that is—</text> <subparagraph id="H1A70EF0C28A44083A75024FB183BA5B8"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H0170BAE9B0D54915ACCDC8D2DA7F383"><enum>(B)</enum><text>insured or assisted under section 236 of the National Housing Act (12 U.S.C. 1715z–1);</text> </subparagraph></paragraph><paragraph id="H1BAC9C460D684B89A617D13936E78820"><enum>(2)</enum><text>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</text> </paragraph><paragraph id="H8292F750943B4DE59CB83E6B00BEEFCD"><enum>(3)</enum><text>is not a housing project owned or held by the Secretary, or subject to a mortgage held by the Secretary.</text> </paragraph></subsection></section><section id="H368C8A5C06134BE8B1EEB6BE5778A452"><enum>615.</enum><header>Residential energy efficiency block grant program</header><text display-inline="no-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="H0251991EF9424E2B9700F122A8CD3F3D" style="OLC"> <section id="HDCD0B205611142BE9404171E24B548F4"><enum>123.</enum><header>Residential energy efficiency block grant program</header> <subsection id="H72C49D347A7F44AD9C9FA310AD099042"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="HF41B26F5CE1843ECB4512FF77BB16D1E"><enum>(b)</enum><header>Allocations</header> <paragraph id="H8718B0BE3510454EB6D4DF2E046D27B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H9CDDA78DB7E446FAA7AE2DD66BE2AB45"><enum>(2)</enum><header>Set aside for Indian tribes</header><text>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.</text> </paragraph></subsection><subsection id="HE38064889B554C7DB6918EFB267D4924"><enum>(c)</enum><header>Grant amounts</header> <paragraph id="HAF1FFFE6596741EABDEEAE2579310B"><enum>(1)</enum><header>Entitlement communities</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H0B37FA42B83646F2B20598C047490057"><enum>(2)</enum><header>States</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H5606ABEF4B1D4B50A3B99EBA1FB2232C"><enum>(3)</enum><header>Indian tribes</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H43780846848E4C718C7D8D34C93CA00"><enum>(4)</enum><header>Insular areas</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="HB44EA65524844C4EAAAA525DAA94EDF9"><enum>(d)</enum><header>Statement of activities</header> <paragraph id="H415659F0396748868E1D13F318CC2E2B"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H8A5F7D23674D458D897192F16B835372"><enum>(2)</enum><header>Public participation</header><text>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.</text> </paragraph></subsection><subsection id="H509CE79CD512423B97007917CA9DF781"><enum>(e)</enum><header>Eligible activities</header> <paragraph id="H737979189D8C47059FA8E964FEBDE7F"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">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 <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2008</short-title>, including such activities to provide energy for such housing from renewable sources, such as wind, waves, solar, biomass, and geothermal sources.</text> </paragraph><paragraph commented="no" id="H2473ED302CF242A083D637D5F179B2D"><enum>(2)</enum><header>Preference for compliance beyond minimum requirements</header><text>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.</text> </paragraph></subsection><subsection id="H6EB71BB0A0E54B96BBF82DA585063159"><enum>(f)</enum><header>Reports</header><text>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).</text> </subsection><subsection id="H8CDA65CAFA32440BACEB898CEF1E6E19"><enum>(g)</enum><header>Applicability of CDBG provisions</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H4F61D3E1C23546AF966F523D29691848"><enum>(h)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">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.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HE6D51DC9C8E2497BAF9F2E5B004C4900"><enum>616.</enum><header>Including sustainable development in comprehensive housing affordability strategies</header><text display-inline="no-display-inline">Section 105(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12705(b)) is amended—</text> <paragraph id="H684AD4B75B0E4F52AD5C2E6956447FD3"><enum>(1)</enum><text>by striking <quote>and</quote> at the end of paragraph (19);</text> </paragraph><paragraph id="H527253CF166447C5B126EDA87B5DD1B1"><enum>(2)</enum><text>by striking the period at the end of paragraph (20) and inserting <quote>; and</quote>;</text> </paragraph><paragraph id="HABFED1A5D2164114A2ED14474CDAD4B"><enum>(3)</enum><text>and by inserting after paragraph (20) the following:</text> <quoted-block display-inline="no-display-inline" id="H44E49A130E614688BFF21B1FFD8CA1B" style="OLC"> <paragraph id="H50F347C3D5C243748726766271645362"><enum>(21)</enum><text>describe the jurisdiction’s strategies to encourage sustainable development for affordable housing, including single-family and multifamily housing, as measured by—</text> <subparagraph id="HD3E59AAEEA194198A614E7393446C921"><enum>(A)</enum><text display-inline="yes-display-inline">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 <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2008</short-title> and with the enhanced energy efficiency and conservation standards, and the green building standards, under section 604(b) of such Act;</text> </subparagraph><subparagraph id="H1846E399A38B4E9EAC2D3C595543771C"><enum>(B)</enum><text>increased conservation, recycling, and reuse of resources;</text> </subparagraph><subparagraph id="HED74DE404891486A9300A074C87642DA"><enum>(C)</enum><text>more effective use of existing infrastructure;</text> </subparagraph><subparagraph id="H0AB5549C65EE466286DA8235A7C2124C"><enum>(D)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph id="H4BE725F641B74FCB86231BA63090FF43"><enum>(E)</enum><text>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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H2950D671DD0B4CD1BF83E0DA6CD67F6E"><enum>617.</enum><header>Grant program to increase sustainable low-income community development capacity</header> <subsection id="H7E591D549909414FA6D9F04F08A0A352"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary may make grants to nonprofit organizations to use for any of the following purposes:</text> <paragraph id="H9F3BDBDC7C2244589595F81E018D8424"><enum>(1)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H98243ABB990B4365A0966CCD3BDDC866"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H6B178F00735F4EF2853F038344139E94"><enum>(3)</enum><text>Such other purposes as the Secretary determines are in accordance with the purposes of this subsection.</text> </paragraph></subsection><subsection id="H062265C6C4CC4A0E8DD7F63468A8CF69"><enum>(b)</enum><header>Application requirement</header><text>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.</text> </subsection><subsection display-inline="no-display-inline" id="HCCF3F5AB4AB549598DE624DBE92D5C5B"><enum>(c)</enum><header>Award of contracts</header><text display-inline="yes-display-inline">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).</text> </subsection><subsection commented="no" id="HF11DF70160834A658BA411719BDA538D"><enum>(d)</enum><header>Matching requirement</header><text>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.</text> </subsection><subsection id="H4AAC80FDDDF84460A51EAB15BC290954"><enum>(e)</enum><header>Definitions</header><text>For purposes of this section, the following definitions shall apply:</text> <paragraph id="H56876CC3C16A4EA6B82C4851EF6581A"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>nonprofit organization</term> has the meaning given such term in section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704).</text> </paragraph><paragraph id="HFD111705A48142B58740B4735B4C3700"><enum>(2)</enum><text>The term <term>eligible community development organization</term> means—</text> <subparagraph id="H1108E454C9B74402B9551137FB5EB861"><enum>(A)</enum><text display-inline="yes-display-inline">a unit of general local government (as defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704));</text> </subparagraph><subparagraph id="HD84552F71D2A468698C2D58F15D2F369"><enum>(B)</enum><text display-inline="yes-display-inline">a community housing development organization (as defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704));</text> </subparagraph><subparagraph id="H7D36E3EAC1D74F708D58E4DE9577CB5B"><enum>(C)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph id="H3887AA970AF64D6C9459414D165B7318"><enum>(D)</enum><text display-inline="yes-display-inline">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)).</text> </subparagraph></paragraph><paragraph id="HC02FF4C751CA4F5EB34FA9A530969F21"><enum>(3)</enum><text>The term <term>low-income community</term> 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—</text> <subparagraph id="H1BD90A0EAE9F43F4A04E2B6E55DACECA"><enum>(A)</enum><text>the median gross income for such year for the area in which such census tract is located; or</text> </subparagraph><subparagraph id="H199B4423E48046B0B076B9328FCF258C"><enum>(B)</enum><text>the median gross income for such year for the State in which such census tract is located.</text> </subparagraph></paragraph></subsection><subsection id="HA66F0C9E22D64C23B5E600E3DA857397"><enum>(f)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">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.</text> </subsection></section><section commented="no" id="HEFF5E72120D34E07AB5E48828000F94"><enum>618.</enum><header>Utilization of energy performance contracts in HOPE VI</header><text display-inline="no-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="HDAD504FA1DAA4B23ABF9689C1400BDCE" style="OLC"> <paragraph commented="no" id="HAF5A3F95E1164CA197BC72CA070FA7F"><enum>(3)</enum><header>Energy performance contracts</header> <subparagraph commented="no" id="H890676C4B3C646EBB28EEB6F9EB7E628"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph commented="no" id="H75FF0D70B0D142D3B735F18ECE9CA2FF"><enum>(B)</enum><header>Third party contracts</header><text>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.</text> </subparagraph><subparagraph commented="no" id="HFE169E33B38246ABB2347357B1EB9BA5"><enum>(C)</enum><header>Term of contract</header><text>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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H1B98E500A25F491483E014C941CFE529"><enum>619.</enum><header>HOPE VI green developments requirement</header> <subsection id="H1BB4FDBCDD90481CB9003EF1F5CF4370"><enum>(a)</enum><header>Mandatory component</header><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="H7488E203E3F743D7847CF2002B4968D6" style="OLC"> <paragraph id="H62285D1F630A48D5BA61DDEBAF40A1F3"><enum>(4)</enum><header>Green developments requirement</header> <subparagraph id="H3CF227B7B0FC409D8B0000D35C18DE83"><enum>(A)</enum><header>Requirement</header><text display-inline="yes-display-inline">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:</text> <clause id="H8749D62DB90248AE8EF61F1154007500"><enum>(i)</enum><header>Green communities criteria checklist</header><text>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:</text> <subclause id="H0ACD84D8ADDF43D580BB953000553716"><enum>(I)</enum><text>The proposed plan shall comply with all items of the national Green Communities criteria checklist for residential construction that are identified as mandatory.</text> </subclause><subclause id="HCB2BAA49D2EB409D8EC481E902F7FC7"><enum>(II)</enum><text>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—</text> <item id="HA7CAAF314FA942DBBFDD683982EE5013"><enum>(aa)</enum><text>25 points, in the case of any proposed plan (or portion thereof) consisting of new construction; and</text> </item><item id="H9180FB42F5E440128E97E309C3AD0000"><enum>(bb)</enum><text>20 points, in the case of any proposed plan (or portion thereof) consisting of rehabilitation.</text> </item></subclause></clause><clause id="H9145A4041F134CD0A4B2C083005800F5"><enum>(ii)</enum><header>Green buildings certification system</header><text>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.</text> </clause></subparagraph><subparagraph id="HE568CDDAFF774F47AB714BC67873D942"><enum>(B)</enum><header>Verification</header> <clause id="H01F5F1FD20C842729CA53ED525372E00"><enum>(i)</enum><header>In general</header><text>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.</text> </clause><clause id="H395DCCFD5C3E4E4682DE485C6C57FFAB"><enum>(ii)</enum><header>Timing</header><text>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:</text> <subclause id="H7F11C1E6BEF94A7FBDAC5A84F2CC67C"><enum>(I)</enum><text>Not later than 6 months after execution of the grant agreement under this section for the grantee.</text> </subclause><subclause id="H20E5BC1EE09248649DCC9F91395F42F"><enum>(II)</enum><text>Upon completion of the revitalization plan of the grantee.</text> </subclause></clause></subparagraph><subparagraph id="H316F38D12D66412E818D41B0856BD8BA"><enum>(C)</enum><header>Identification of green buildings rating systems and levels</header> <clause id="H8679814E3A764D63A351ACE85400DA69"><enum>(i)</enum><header>In general</header><text>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.</text> </clause><clause id="H1CB4E11F7BF24A2A9DAF3BA24D29895D"><enum>(ii)</enum><header>Criteria</header><text>In identifying the green rating systems and levels, the Secretary shall take into consideration—</text> <subclause id="H633AF9E7320F4FE695502CE989CB04C0"><enum>(I)</enum><text>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;</text> </subclause><subclause id="HD7D1DA2B8D794DB19C42069FFADB3C06"><enum>(II)</enum><text>the ability of the applicable ratings system organizations to collect and reflect public comment;</text> </subclause><subclause id="H67285BAC54E24A7096D8B93DA3BECD"><enum>(III)</enum><text>the ability of the standards to be developed and revised through a consensus-based process;</text> </subclause><subclause id="H9942B44641EA4AC783F75C678E523FC2"><enum>(IV)</enum><text display-inline="yes-display-inline">An evaluation of the robustness of the criteria for a high-performance green building, which shall give credit for promoting—</text> <item id="H8E919AF18ADF4DE0A242C9625961661F"><enum>(aa)</enum><text>efficient and sustainable use of water, energy, and other natural resources;</text> </item><item id="HD590A0124D3049C8827C4335470013B9"><enum>(bb)</enum><text>use of renewable energy sources;</text> </item><item id="H351D83F4036B459FB1A2C155FB83B4A6"><enum>(cc)</enum><text display-inline="yes-display-inline">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</text> </item><item id="HE75E0CCE63224AA1A101E184FF2740FD"><enum>(dd)</enum><text>such other criteria as the Secretary determines to be appropriate; and</text> </item></subclause><subclause id="H22C108AD6F7C490A8C5CC0D5C1D45730"><enum>(V)</enum><text>national recognition within the building industry.</text> </subclause></clause><clause id="HAFAD1E4515E1425FBC007E066C7D8F88"><enum>(iii)</enum><header>5-year evaluation</header><text>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).</text> </clause></subparagraph><subparagraph id="H531B4EF5F2E244D095CB607E60C3FF3D"><enum>(D)</enum><header>Applicability and updating of standards</header> <clause id="H2DECC4E3F14040ABBBBB1943BB456487"><enum>(i)</enum><header>Applicability</header><text>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 <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2008</short-title>.</text> </clause><clause id="HA84ED30439A64E539D2F1D5E0040A795"><enum>(ii)</enum><header>Updating</header><text>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).</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H9BEF0FB128CA4497BFFA1C13DF473F54"><enum>(b)</enum><header>Selection criteria; graded component</header><text>Section 24(e)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is amended—</text> <paragraph id="H0B3B8FC641F5436DB7369C709EEE2517"><enum>(1)</enum><text>in subparagraph (K), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="HEFB640B5CC6345959DD45D5E0000CAE5"><enum>(2)</enum><text>by redesignating subparagraph (L) as subparagraph (M); and</text> </paragraph><paragraph id="HFE55CF38AB7F4C4FBC51ED9D642FE701"><enum>(3)</enum><text>by inserting after subparagraph (K) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HE2A4E5ECDF274124BD225DFCB658C95" style="OLC"> <subparagraph id="H6FDDD522C0434AE0B157A7815B3BE881"><enum>(L)</enum><text display-inline="yes-display-inline">the extent to which the proposed revitalization plan—</text> <clause id="H9B5C608CF2454449AA1DDED17FBCDF8B"><enum>(i)</enum><text>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</text> </clause><clause id="HCAAD14BBEFF34B9000FDEBF5D00407F"><enum>(ii)</enum><text>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</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="H9F05C91CC2B643219E7242FFB552E78F"><enum>620.</enum><header>Consideration of energy-efficiency improvements in appraisals</header> <subsection id="HDE04E3FCB9984FC5A5007F13A6A79683"><enum>(a)</enum><header>Appraisals in connection with federally related transactions</header> <paragraph id="H83CA93042E2748E2BC97CDF0A9613711"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Section 1110 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3339) is amended—</text> <subparagraph id="H396703DD6DB849EA857BB1804118001E"><enum>(A)</enum><text>in paragraph (1), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph id="HF0BD1DCCB0CF4EAE8B660900CFAD5F28"><enum>(B)</enum><text>by redesignating paragraph (2) as paragraph (3); and</text> </subparagraph><subparagraph id="H057248975D76413DA563FED3E74D5CCE"><enum>(C)</enum><text>by inserting after paragraph (1) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H811DCDBA7B524BF90066F1A799FB7433" style="OLC"> <paragraph id="H9CE486434A994E7AB97C2017E800718D"><enum>(2)</enum><text display-inline="yes-display-inline">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</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H37B2B92B6D6D4D96BC539C28C6004937"><enum>(2)</enum><header>Revision of appraisal standards</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="HC31623A5157A4242846037CBF9502BE0"><enum>(b)</enum><header>Appraiser certification and licensing requirements</header><text display-inline="yes-display-inline">Section 1116 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3345) is amended—</text> <paragraph id="H3379C200F21A4EF8A6E3F080C0B05FA7"><enum>(1)</enum><text>in subsection (a), by inserting before the period at the end the following: <quote>, 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</quote>;</text> </paragraph><paragraph id="H9FFDF333CD7047F18CE2F73F008E84BA"><enum>(2)</enum><text>in subsection (c), by inserting before the period at the end the following: <quote>, 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</quote>;</text> </paragraph><paragraph commented="no" id="H93B7DB3F90F3420B8D90A26700E83508"><enum>(3)</enum><text>in subsection (e), by striking <quote>The</quote> and inserting <quote>Except as provided in subsection (f), the</quote>; and</text> </paragraph><paragraph id="H26CBB4C93CD94054BAAF8508481233BF"><enum>(4)</enum><text>by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H753D8BE644FB4E72ADEB0003FF498CAB" style="OLC"> <subsection id="H56208B785734456788D40642D0CF36E0"><enum>(f)</enum><header>Requirements for appraisers regarding energy-efficiency features</header><text display-inline="yes-display-inline">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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H3486ABED61AD4C91932227FFA9EDB382"><enum>(c)</enum><header>Guidelines for appraising photovoltaic measures and training of appraisers</header><text>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:</text> <quoted-block display-inline="no-display-inline" id="H31AFA24C095849B6BF6CD633C825504B" style="OLC"> <subsection id="H9B220B97B719453FAA9591E28F278728"><enum>(g)</enum><header>Guidelines for appraising photovoltaic measures and training of appraisers</header><text display-inline="yes-display-inline">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—</text> <paragraph id="HA22B882EE1484F30870070799D43F491"><enum>(1)</enum><text>appraising off- and on-grid photovoltaic measures for compliance with the appraisal standards prescribed pursuant to section 1110(2);</text> </paragraph><paragraph id="H6365B3A2AEE04FC1A959BAB0008BB2E"><enum>(2)</enum><text>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</text> </paragraph><paragraph id="H8F3351718F244C5C994600118BEB1F5C"><enum>(3)</enum><text>training of appraisers to meet the requirements established pursuant to paragraph (2) of this subsection.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HAE2505ABB3B74BEB00EACB30F38BAA68"><enum>621.</enum><header>Assistance for Housing Assistance Council</header><text display-inline="no-display-inline">The Secretary shall require the Housing Assistance Council—</text> <paragraph id="H68E744587CD94524BEFA9BBF05524F57"><enum>(1)</enum><text>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</text> </paragraph><paragraph id="H2DC65C7F712A4570BFDBD481974D6813"><enum>(2)</enum><text>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.</text> </paragraph></section><section id="HDC32B37616D94BDFBDDAA953F35754D5"><enum>622.</enum><header>Rural housing and economic development assistance</header><text display-inline="no-display-inline">The Secretary shall—</text> <paragraph id="HBE3373A4964546CD9EB98308F9A276EA"><enum>(1)</enum><text display-inline="yes-display-inline">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</text> </paragraph><paragraph id="HE5709C53A5004A35BDD846FA0155C414"><enum>(2)</enum><text>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.</text> </paragraph></section><section id="H46CB31F1F3BC49468FEF3544C866DA00"><enum>623.</enum><header>Loans to States and Indian tribes to carry out renewable energy sources activities</header> <subsection id="H358BDBAE82C64CF988D2B0EB655ED69"><enum>(a)</enum><header>Establishment of Fund</header><text>There is established in the Treasury of the United States a fund, to be known as the <quote>Alternative Energy Sources State Loan Fund</quote>.</text> </subsection><subsection id="H7AE839D533B847DA83233F41497B303F"><enum>(b)</enum><header>Expenditures</header> <paragraph id="H9F1360AE2BB146E68C9389AB00420876"><enum>(1)</enum><header>In general</header><text>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).</text> </paragraph><paragraph id="HED9A246C183048D685D5D190DE0066BF"><enum>(2)</enum><header>Administrative expenses</header><text>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.</text> </paragraph></subsection><subsection id="H3E0E24075DAF42B8B71E849BF7FE0389"><enum>(c)</enum><header>Loans to States and Indian tribes</header> <paragraph id="H0518230BC59D4E82808BDAFEFBCA1DC"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="H034BC1F6FB50477AA87333713B47D89F"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph><subparagraph id="H3CFEBE45721B4BDF00945D00A49DD84"><enum>(B)</enum><text>energy efficiency and energy conserving improvements and features for such structures; or</text> </subparagraph><subparagraph id="H9F20641D2DA14DF9B21BC2201F1B00C7"><enum>(C)</enum><text>infrastructure related to the delivery of electricity and hot water for structures lacking such amenities.</text> </subparagraph></paragraph><paragraph id="H0E170DF9C12942B6B284A06C5CD934E9"><enum>(2)</enum><header>Eligibility</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="HC327C6F8BDCF49C391236DC2B8C06680"><enum>(3)</enum><header>Criteria for approval</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="H4B47AB35A770485400CB45F0E4A7CECF"><enum>(A)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph id="H0554A36AC6E94F0BA5B3266F3C7E9F8"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph id="HD64634B0E1F748B69DF4245E73E92C04"><enum>(4)</enum><header>Preference</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H2CE7BE80098946B289A9D6CAAE119C85"><enum>(5)</enum><header>Maximum amount</header><text>The aggregate outstanding principal amount from loans under this subsection to any single State or Indian tribe may not exceed $500,000,000.</text> </paragraph><paragraph id="H6BF65F476DEA488387315F97BCB64048"><enum>(6)</enum><header>Loan terms</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H627497CE72C94506BA3D106437D63087"><enum>(7)</enum><header>Loan repayment</header><text display-inline="yes-display-inline">The Secretary shall require full repayment of each loan made under this section.</text> </paragraph></subsection><subsection id="HF019B2E0DA38447FB9246CF7231071CA"><enum>(d)</enum><header>Investment of Amounts</header> <paragraph id="HFB874D78CF1F4CEAAC7F8D38C8D9CF00"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph commented="no" id="H764A1595A09A47EA922B1216D79ECA15"><enum>(2)</enum><header>Obligations of United States</header><text>Investments may be made only in interest-bearing obligations of the United States.</text> </paragraph></subsection><subsection id="H678A7BDD59D24D3DADD1663787E2956B"><enum>(e)</enum><header>Reports</header> <paragraph id="H31FB5F7DC09943D09CF84BCF6419B26"><enum>(1)</enum><header>Reports to Secretary</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H3FDA9846ABBB4AA698753B30B1AAE636"><enum>(2)</enum><header>Report to Congress</header><text>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.</text> </paragraph></subsection><subsection id="H02A4487A279E4AF9004520AE9255DB18"><enum>(f)</enum><header>Authorization of Appropriations</header><text>There is authorized to be appropriated to the Fund $5,000,000,000.</text> </subsection><subsection id="H08AF3C4DFD4A4B419EE12ED3B668687D"><enum>(g)</enum><header>Definitions</header><text>For purposes of this section, the following definitions shall apply:</text> <paragraph id="HEC427C827780483DB77F42A2F3347EF5"><enum>(1)</enum><header>Indian tribe</header><text display-inline="yes-display-inline">The term <quote>Indian tribe</quote> 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).</text> </paragraph><paragraph id="HA97143E011A344A7A4E5616879E89B01"><enum>(2)</enum><header>State</header><text>The term <quote>State</quote> 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.</text> </paragraph></subsection></section><section id="H8DAFA378F5DC44589F53D5833C6CF0F4"><enum>624.</enum><header>Green banking centers</header> <subsection id="H11E01A14CC504F9099503E1F9BD6EEB6"><enum>(a)</enum><header>Insured depository institutions</header><text display-inline="yes-display-inline">Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HB8DD3F15C9874FFCA400FB2800700021" style="OLC"> <subsection id="H3034A69568C54F85BC79D3514E97AE9D"><enum>(x)</enum><header><quote>Green banking</quote> centers</header> <paragraph id="H9098381AEC1C4BFD94003BFB559BB3A0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Federal banking agencies shall prescribe guidelines encouraging the establishment and maintenance of <quote>green banking</quote> 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—</text> <subparagraph id="H7CB1DCCE85004F598BDB62AFB79D08CA"><enum>(A)</enum><text>obtaining an home energy rating or audit for the residence for which such mortgage or loan is sought;</text> </subparagraph><subparagraph id="H6CDA92462E1A46B68BCA43192F788EE6"><enum>(B)</enum><text display-inline="yes-display-inline">obtaining financing for cost-effective energy-saving improvements to such property; and</text> </subparagraph><subparagraph id="HF59B7ADA47EE4C6E9404A14EE1885306"><enum>(C)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph id="H494B818A16404EB39F235603437B15F9"><enum>(2)</enum><header>Information and referrals</header><text>The information made available to consumers under paragraph (1) may include—</text> <subparagraph id="H7410866B21314DD3BE70488E466E2248"><enum>(A)</enum><text display-inline="yes-display-inline">information on obtaining a home energy rating and contact information on qualified energy raters in the area of the residence;</text> </subparagraph><subparagraph id="HF3974CE863E846549BB7FA50A21B7990"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph><subparagraph id="H12F3CBACAE964503A4E2381F626EACFB"><enum>(C)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph><subparagraph id="HF313E16368B24A4B8BA4C4B134C7F4E5"><enum>(D)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph><subparagraph id="H48A1A88CB7B54647AF004444CD7853F4"><enum>(E)</enum><text display-inline="yes-display-inline">information about, and contact information for, the Office of Efficiency and Renewable Energy at the Department of Energy, including the weatherization assistance program;</text> </subparagraph><subparagraph id="HADF700D81F7748AFA5B0C1DFA0AFE4BD"><enum>(F)</enum><text display-inline="yes-display-inline">information about, and contact information for, the Energy Star Program of the Environmental Protection Agency;</text> </subparagraph><subparagraph id="HF0C0D535EF1049CB9C00000067DB496E"><enum>(G)</enum><text>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</text> </subparagraph><subparagraph id="H261F0B4A9C964774AD741267226BB97B"><enum>(H)</enum><text>such other information as the agencies or the insured depository institution may determine to be appropriate or useful.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H85E6B9AA53E54A9E94061CA5D7896968"><enum>(b)</enum><header>Insured credit unions</header><text>Section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H336F9A4880194409977CFCDF1E81FAB" style="OLC"> <subsection id="H7B1B2E4007A54294A44FA4618B67A472"><enum>(x)</enum><header><quote>Green banking</quote> centers</header> <paragraph id="HD872B9BBFF6E420FAD850082A70071CF"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Board shall prescribe guidelines encouraging the establishment and maintenance of <quote>green banking</quote> 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—</text> <subparagraph id="H74B075E3029C4DEA86134D37B86BE237"><enum>(A)</enum><text>obtaining an home energy rating or audit for the residence for which such mortgage or loan is sought;</text> </subparagraph><subparagraph id="H98651037BD4740E2879401318298A607"><enum>(B)</enum><text display-inline="yes-display-inline">obtaining financing for cost-effective energy-saving improvements to such property; and</text> </subparagraph><subparagraph id="H238CA0DFD66F453484584172E279976E"><enum>(C)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph id="H710BA0E0584B470692B7C8F70080C00"><enum>(2)</enum><header>Information and referrals</header><text>The information made available to members under paragraph (1) may include—</text> <subparagraph id="H66E8A878A13D49888B008196D9E366D"><enum>(A)</enum><text display-inline="yes-display-inline">information on obtaining a home energy rating and contact information on qualified energy raters in the area of the residence;</text> </subparagraph><subparagraph id="HAE5A3B6B1539448EA98F8864987436D5"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph><subparagraph id="H8C31CAF3C8C84615BA0200A12DF596DC"><enum>(C)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph><subparagraph id="H9998374F57CA4C06A81DC32C800FB95"><enum>(D)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph><subparagraph id="H0D4BDFE772164C0990FC46FA3DA7B304"><enum>(E)</enum><text display-inline="yes-display-inline">information about, and contact information for, the Office of Efficiency and Renewable Energy at the Department of Energy, including the weatherization assistance program;</text> </subparagraph><subparagraph id="H701424C68FF7414C9F827420A819B931"><enum>(F)</enum><text>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</text> </subparagraph><subparagraph id="HF292C577D21B4805B0F6F715362C422E"><enum>(G)</enum><text>such other information as the Board or the insured credit union may determine to be appropriate or useful.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H3E69575DE98D441B8C004FA123E5B9FB"><enum>625.</enum><header>Public housing energy cost report</header> <subsection id="H0333AD8555F149AB9DE56BA371E976E5"><enum>(a)</enum><header>Collection of information by HUD</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="HFE93B819673543D28BEC719D19761CC7"><enum>(b)</enum><header>Report</header><text>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).</text> </subsection></section><enum>VII</enum><header>Miscellaneous provisions</header> <section id="HBBCAA33637A8473E9554419F5C07B097"><enum>701.</enum><header>Alternative fuel pumps</header> <subsection id="H1791FC67F3E140CCBA2FD2ECE0A72E33"><enum>(a)</enum><header>Requirement</header><text display-inline="yes-display-inline">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) .</text> </subsection><subsection id="H281497A5A5A94C9BA5549E0084345458"><enum>(b)</enum><header>Penalty</header><text>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.</text> </subsection><subsection id="HD30014975AE04EC38CF6F346ACBF3D97"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H81260B35ACD24FE1B924ABACBB7E5E97"><enum>(1)</enum><text>The term <quote>major integrated oil company</quote> has the meaning given that term in section 167(h)(5)(B) of the Internal Revenue Code of 1986.</text> </paragraph><paragraph id="H40D4AAC3AB9A4BE7A78780C3AF854CBD"><enum>(2)</enum><text>The term <quote>alternative fuel pump</quote> means a fuel pump that dispenses as a fuel for automotive purposes—</text> <subparagraph id="HA5DE7E1AD86C43ACA2214E002ED8C2D2"><enum>(A)</enum><text>natural gas;</text> </subparagraph><subparagraph id="H8BCCA42633CC44549C369600FFD9415F"><enum>(B)</enum><text display-inline="yes-display-inline">any fuel at least 85 percent of the volume of which consists of ethanol;</text> </subparagraph><subparagraph id="H63233D1418A840AEB3B4698F65462171"><enum>(C)</enum><text>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</text> </subparagraph><subparagraph id="H117D78219158428C829FFCD1C0D1D7C2"><enum>(D)</enum><text>hydrogen.</text> </subparagraph></paragraph></subsection><subsection id="H6291D25AD1534D37A3364F7D3214AE90"><enum>(d)</enum><header>Regulations</header><text>The Secretary of Energy shall promulgate such regulations as may be necessary to carry out this section.</text> </subsection></section><section id="HA9AC682CE37442E280860871E5133FE2"><enum>702.</enum><header>National Energy Center of Excellence</header> <subsection id="H2D4E2A8379C84CB0A3539227CF3D0024"><enum>(a)</enum><header>Establishment</header><text>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.</text> </subsection><subsection id="H6DE872FB365946638C5D80F958E2C68C"><enum>(b)</enum><header>Consortium</header><text>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.</text> </subsection><subsection id="H204779EADD3F4392875D2D9348A2FA54"><enum>(c)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $25,000,000 for each of the fiscal years 2009 through 2013.</text> </subsection></section><section display-inline="no-display-inline" id="HE7A8BC718AF746AB87C9D3A9EA4FB156" section-type="subsequent-section"><enum>703.</enum><header>Sense of Congress regarding renewable biomass</header><text display-inline="no-display-inline">It is the sense of Congress that—</text> <paragraph id="H2156256A1E034D27A5927900265EA2F9"><enum>(1)</enum><text>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;</text> </paragraph><paragraph id="H79FE4A108EFC4B86A66DB9B246000038"><enum>(2)</enum><text>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;</text> </paragraph><paragraph id="H4CE356245DF24D6F858224BA0074D424"><enum>(3)</enum><text>Congress recognizes that renewable fuels are important to our climate and energy security strategy, as well as the rural communities they support; and</text> </paragraph><paragraph id="H25D26FD015214D3EB6A68C4693623D5C"><enum>(4)</enum><text>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.</text> </paragraph></section><enum>VIII</enum><header>Energy Tax Incentives</header> <section id="H749E4F7EF4024B6B868903923DF9FEE4" section-type="subsequent-section"><enum>800.</enum><header>Short title, etc</header> <subsection id="HC44958F46C834C1F90A9EC008BE1327F"><enum>(a)</enum><header>Short title</header><text display-inline="yes-display-inline">This title may be cited as the <quote><short-title>Energy Tax Incentives Act of 2008</short-title></quote>.</text> </subsection><subsection id="H1E0DCA59BD0C49BCA8B3C322DCC11518"><enum>(b)</enum><header>Reference</header><text display-inline="yes-display-inline">Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.</text> </subsection></section><subtitle id="H959716C624374928A417313937C6DCCF"><enum>A</enum><header>Energy production incentives</header> <part id="H1A01F8970D1144A3BA0003DAC648CCEC"><enum>1</enum><header>Renewable energy incentives</header> <section id="HF5B8D37FEDA34FB3BFCBCC9B05E1FD50"><enum>801.</enum><header>Renewable energy credit</header> <subsection id="H4FC3912CF9F940049E85B26FE630BFF5"><enum>(a)</enum><header>Extension of credit</header> <paragraph id="H408B2A0B1D2C4B909D8B4395F84E851D"><enum>(1)</enum><header>1-year extension for wind facilities</header><text>Paragraph (1) of section 45(d) is amended by striking <quote>January 1, 2009</quote> and inserting <quote>January 1, 2010</quote>.</text> </paragraph><paragraph id="H16A274115574453A8179F0AF457FF525"><enum>(2)</enum><header>3-year extension for certain other facilities</header><text>Each of the following provisions of section 45(d) is amended by striking <quote>January 1, 2009</quote> and inserting <quote>January 1, 2012</quote>:</text> <subparagraph id="H600009ACFF8344BB97763D9B60F4449B"><enum>(A)</enum><text>Clauses (i) and (ii) of paragraph (2)(A).</text> </subparagraph><subparagraph id="HB085772FBB3945439BB1391601CDAC61"><enum>(B)</enum><text>Clauses (i)(I) and (ii) of paragraph (3)(A).</text> </subparagraph><subparagraph id="H0468E8636EE54FBFAF4559ACF4A8CFEC"><enum>(C)</enum><text>Paragraph (4).</text> </subparagraph><subparagraph id="HF626DBCFE2C946E49CFBD8DC5DFB66"><enum>(D)</enum><text>Paragraph (5).</text> </subparagraph><subparagraph id="H6CB322EED83245BB9CB84467E1F015F9"><enum>(E)</enum><text>Paragraph (6).</text> </subparagraph><subparagraph id="H8BC79267500744308F86567C75E2835E"><enum>(F)</enum><text>Paragraph (7).</text> </subparagraph><subparagraph id="HFA63AD00ED574043001902B19B3D40C1"><enum>(G)</enum><text>Subparagraphs (A) and (B) of paragraph (9).</text> </subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H0FD74AD872354C9AB21544FD1FD05E29"><enum>(b)</enum><header>Modification of Credit Phaseout</header> <paragraph id="H7A3EF96E8D7547DFBE15D0EFA0C3E85E"><enum>(1)</enum><header>Repeal of phaseout</header><text>Subsection (b) of section 45 is amended—</text> <subparagraph id="HBF8C56AB43EE44A8A8B3B844233BDDCE"><enum>(A)</enum><text>by striking paragraph (1), and</text> </subparagraph><subparagraph id="H6DED31FCC16A4ED8A421B18F0566F8FA"><enum>(B)</enum><text>by striking <quote>the 8 cent amount in paragraph (1),</quote> in paragraph (2) thereof.</text> </subparagraph></paragraph><paragraph id="H8B2F462F988C45ACA85276ED889493D9"><enum>(2)</enum><header>Limitation based on investment in facility</header><text>Subsection (b) of section 45 is amended by inserting before paragraph (2) the following new paragraph:</text> <quoted-block id="H5A42B405EA374A75A399381DD000153D" style="OLC"> <paragraph id="HA3A722C524DE49F0841739DE4BC5C5B"><enum>(1)</enum><header>Limitation based on investment in facility</header> <subparagraph id="H9ED27C23845B40A9A94705B2D4AF59DF"><enum>(A)</enum><header>In general</header><text>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—</text> <clause id="H34099AD84BC84161A75389505369D558"><enum>(i)</enum><text>the applicable percentage with respect to such facility, multiplied by</text> </clause><clause id="H1312C61495E14C48A73970F1CE4215B0"><enum>(ii)</enum><text>the eligible basis of such facility.</text> </clause></subparagraph><subparagraph id="H6CA8B74705E8469CB00290ED6CFBFA00"><enum>(B)</enum><header>Carryforward of unused limitation and excess credit</header> <clause id="HB03A59F1076E45FE935CAAC7A238D56B"><enum>(i)</enum><header>Unused limitation</header><text>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.</text> </clause><clause id="H11F5BCC7DB084A66AC8D8DBD9367F9E3"><enum>(ii)</enum><header>Excess credit</header><text>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.</text> </clause><clause id="H956DCDCDC38F47C4881800F811F97076"><enum>(iii)</enum><header>Prelimitation credit</header><text>The term <quote>prelimitation credit</quote> 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).</text> </clause></subparagraph><subparagraph id="H35AC88735CF3479CBE45DD768DA5BD85"><enum>(C)</enum><header>Applicable percentage</header><text>For purposes of this paragraph—</text> <clause id="H3899A02C2567403395BABB5B33F2FB88"><enum>(i)</enum><header>In general</header><text>The term <quote>applicable percentage</quote> 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.</text> </clause><clause id="H413F49FDE4524E3FA6BFA908FEA0580"><enum>(ii)</enum><header>Method of prescribing applicable percentage</header><text>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.</text> </clause><clause id="H3D787E328C744B37B879E700FB73E642"><enum>(iii)</enum><header>Method of discounting</header><text>The present value under clause (ii) shall be determined—</text> <subclause id="HF6E15379F951430586A398DFEBCBAB33"><enum>(I)</enum><text>as of the last day of the 1st year of the 10-year period referred to in clause (ii),</text> </subclause><subclause id="HB0216D5EB53442AEA100DAFB00366765"><enum>(II)</enum><text>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</text> </subclause><subclause id="H76892E180EB64160A449C79D38BBED58"><enum>(III)</enum><text>by taking into account the limitation under subparagraph (A) for any year on the last day of such year.</text> </subclause></clause></subparagraph><subparagraph id="H0694E979B57941CE8CEB871E375BA953"><enum>(D)</enum><header>Eligible basis</header><text>For purposes of this paragraph—</text> <clause id="HE1FFCD10EF034EB5B5431D1490A7AC2D"><enum>(i)</enum><header>In general</header><text>The term <quote>eligible basis</quote> means, with respect to any facility, the sum of—</text> <subclause id="H35597CB325084804B88DC84190756829"><enum>(I)</enum><text>the basis of such facility determined as of the time that such facility is originally placed in service, and</text> </subclause><subclause id="H0B3D7772472E4E5EB47E005D121DF648"><enum>(II)</enum><text>the portion of the basis of any shared qualified property which is properly allocable to such facility under clause (ii).</text> </subclause></clause><clause id="HC30473EFD30F468E8626FBDBC1FF8E00"><enum>(ii)</enum><header>Rules for allocation</header><text>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.</text> </clause><clause id="HC3968E9C37CA4420828D98C16E9F02A3"><enum>(iii)</enum><header>Shared qualified property</header><text>For purposes of this paragraph, the term <quote>shared qualified property</quote> means, with respect to any facility, any property described in section 168(e)(3)(B)(vi)—</text> <subclause id="HA6687FD6739F4972BAE48626F6A008FD"><enum>(I)</enum><text>which a qualified facility will require for utilization of such facility, and</text> </subclause><subclause id="H88B71ADEB4194C91BD2830A1DFED983D"><enum>(II)</enum><text>which is not a qualified facility.</text> </subclause></clause><clause id="H3FA0C950597E40B3BD218870ED5E9D3"><enum>(iv)</enum><header>Special rule relating to geothermal facilities</header><text>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.</text> </clause></subparagraph><subparagraph id="HD812F70CD9024181A56DD779F9F3A043"><enum>(E)</enum><header>Special rule for first and last year of credit period</header><text>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.</text> </subparagraph><subparagraph id="H4C4D8D0121ED4E8D00998C883F7796D2"><enum>(F)</enum><header>Election to treat all facilities placed in service in a year as 1 facility</header><text>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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H476494DC5E6D4580AFB9EB9986DC0072"><enum>(c)</enum><header>Trash facility clarification</header><text>Paragraph (7) of section 45(d) is amended—</text> <paragraph id="HA37CCC95FA7A41ECA2852CE3C7532348"><enum>(1)</enum><text>by striking <quote>facility which burns</quote> and inserting <quote>facility (other than a facility described in paragraph (6)) which uses</quote>, and</text> </paragraph><paragraph id="H8ED0309E307C428FA70432AEFB5CBBE7"><enum>(2)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">combustion</header-in-text></quote>.</text> </paragraph></subsection><subsection id="H07D6363C5AC44FB2A3DA000832472DD4"><enum>(d)</enum><header>Expansion of biomass facilities</header> <paragraph id="H890B7E8916FB45C3BA275FB1E6F2D4D5"><enum>(1)</enum><header>Open-loop biomass facilities</header><text>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:</text> <quoted-block display-inline="no-display-inline" id="H228C113DD20545CEA258105846FB368B" style="OLC"> <subparagraph id="HCD005058237F41CDABE9006488C593E2"><enum>(B)</enum><header>Expansion of facility</header><text display-inline="yes-display-inline">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.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H3CBCFD44D2724E6FA85166E01D972BDC"><enum>(2)</enum><header>Closed-loop biomass facilities</header><text>Paragraph (2) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H6ED3C2BAF89D41CC952EA3A6059B003F" style="OLC"> <subparagraph id="H449C633CB48D44848EE1098CA113798E"><enum>(B)</enum><header>Expansion of facility</header><text display-inline="yes-display-inline">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.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H1AFA9279257E471EA4FA6D5CD5BDC2C0"><enum>(e)</enum><header>Modification of rules for hydropower production</header><text>Subparagraph (C) of section 45(c)(8) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HBAA105C356854E4C8D585D58185443D6" style="OLC"> <subparagraph id="HEEC543CC96A34F02AD9CF3F7EDFB2193"><enum>(C)</enum><header>Nonhydroelectric dam</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), a facility is described in this subparagraph if—</text> <clause id="H4B793D8D4B254719BFDFB07683581821"><enum>(i)</enum><text>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,</text> </clause><clause id="H74A03C87E965471C92F0AD1CF2DDBFE"><enum>(ii)</enum><text>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</text> </clause><clause id="H2A5925AC88B34F7D8000433B6197E6B6"><enum>(iii)</enum><text>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.</text> </clause><continuation-text continuation-text-level="subparagraph">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.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H4E059ADBE4714A7AADC418FE87689F00"><enum>(f)</enum><header>Effective date</header> <paragraph id="H4368E79DCA9B4161A1EA23CA3BB04BBE"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="HEB92AC9CB7634EB29ECB2990C72C2790"><enum>(2)</enum><header>Repeal of credit phaseout</header><text>The amendments made by subsection (b)(1) shall apply to taxable years ending after December 31, 2008.</text> </paragraph><paragraph id="HAD49E983E5DA45C78F00C9CF00DD7457"><enum>(3)</enum><header>Limitation based on investment in facility</header><text>The amendment made by subsection (b)(2) shall apply to property originally placed in service after December 31, 2009.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA74FD1D7071F458B837CE341CC0040F8"><enum>(4)</enum><header>Trash facility clarification</header><text>The amendments made by subsection (c) shall apply to electricity produced and sold after the date of the enactment of this Act.</text> </paragraph><paragraph id="H463C066835C7497C8D56875D838EF2C6"><enum>(5)</enum><header>Expansion of biomass facilities</header><text>The amendments made by subsection (d) shall apply to property placed in service after the date of the enactment of this Act.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H43A82BB52CE44DE59340373CD5F13EC" section-type="subsequent-section"><enum>802.</enum><header>Production credit for electricity produced from marine renewables</header> <subsection id="H80D7F97C2A5E4FF693CBCEB470ED7900"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of section 45(c) is amended by striking <quote>and</quote> at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H735D4280D77C4329A937FA54F677B159" style="OLC"> <subparagraph id="HD6CA416F205D4F24001D86AE962FECC8"><enum>(I)</enum><text display-inline="yes-display-inline">marine and hydrokinetic renewable energy.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="H1F4B53C19B284015AA253F76BC004FFE"><enum>(b)</enum><header>Marine renewables</header><text>Subsection (c) of section 45 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H07459AC166874ACF99D6383360D7D706" style="OLC"> <paragraph commented="no" id="H70D0ECB69D704C9EA0267618A200E82F"><enum>(10)</enum><header>Marine and hydrokinetic renewable energy</header> <subparagraph id="H1D30DEEA3C584EC3A66C4006CD85A744"><enum>(A)</enum><header>In general</header><text>The term <term>marine and hydrokinetic renewable energy</term> means energy derived from—</text> <clause display-inline="no-display-inline" id="HB796DC5DAB3B4CC9801D48A4AD66CA6"><enum>(i)</enum><text>waves, tides, and currents in oceans, estuaries, and tidal areas,</text> </clause><clause id="HBB80972CFE3F4CFFBC4535D681E73609"><enum>(ii)</enum><text>free flowing water in rivers, lakes, and streams,</text> </clause><clause id="H6C86E564BEE04987A3DF7D89001666AC"><enum>(iii)</enum><text>free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, or</text> </clause><clause id="H6A00443DE51D4C2EBBF99EFA7DFA74B"><enum>(iv)</enum><text>differentials in ocean temperature (ocean thermal energy conversion).</text> </clause></subparagraph><subparagraph id="H3470C032AD354966AD9C92A05775E679"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph (A)(iii)), or impoundment for electric power production purposes.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HBC3B7A53E8C1458A876E3942C8FF5D67"><enum>(c)</enum><header>Definition of facility</header><text>Subsection (d) of section 45 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HBD8D187A504047C99B7B042F2024D555" style="OLC"> <paragraph id="H0EF9786FDA1345DA8DEDB354EC1D1E57"><enum>(11)</enum><header>Marine and hydrokinetic renewable energy facilities</header><text display-inline="yes-display-inline">In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term <term>qualified facility</term> means any facility owned by the taxpayer—</text> <subparagraph id="HD58143BBB3F149DE9DB4BD3E7FAB2E42"><enum>(A)</enum><text display-inline="yes-display-inline">which has a nameplate capacity rating of at least 150 kilowatts, and</text> </subparagraph><subparagraph id="HAEF4026DD2994094A5B0C612BA5F3760"><enum>(B)</enum><text>which is originally placed in service on or after the date of the enactment of this paragraph and before January 1, 2012.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H5122A0B423CD40B095FED8006785EB65"><enum>(d)</enum><header>Credit rate</header><text>Subparagraph (A) of section 45(b)(4) is amended by striking <quote>or (9)</quote> and inserting <quote>(9), or (11)</quote>.</text> </subsection><subsection commented="no" id="H3F0860F298F64095A66D00972F926B28"><enum>(e)</enum><header>Coordination with small irrigation power</header><text>Paragraph (5) of section 45(d), as amended by section 801, is amended by striking <quote>January 1, 2012</quote> and inserting <quote>the date of the enactment of paragraph (11)</quote>.</text> </subsection><subsection id="HA96F33763DD14472B75ECA2BB259894D"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.</text> </subsection></section><section display-inline="no-display-inline" id="H9702172F959047A98DA4EC49FB10F641"><enum>803.</enum><header>Energy credit</header> <subsection id="H257EAF2D4828485DAFC71E3B00110232"><enum>(a)</enum><header>Extension of credit</header> <paragraph id="H935AA995324A452CBB05FD5F07DD12C3"><enum>(1)</enum><header>Solar energy property</header><text>Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) are each amended by striking <quote>January 1, 2009</quote> and inserting <quote>January 1, 2017</quote>.</text> </paragraph><paragraph id="H519AF4BCF2B74304A769FE3217826CFD"><enum>(2)</enum><header>Fuel cell property</header><text>Subparagraph (E) of section 48(c)(1) is amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2016</quote>.</text> </paragraph><paragraph commented="no" id="H6E7EFCAFB88C419A8610EECB9E36ADA3"><enum>(3)</enum><header>Microturbine property</header><text>Subparagraph (E) of section 48(c)(2) is amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2016</quote>.</text> </paragraph></subsection><subsection id="HE8D26B644D204958B8B7EDE0B47837B3"><enum>(b)</enum><header>Allowance of energy credit against alternative minimum tax</header><text>Subparagraph (B) of section 38(c)(4) is amended by striking <quote>and</quote> at the end of clause (iii), by redesignating clauses (v) and (vi) as clauses (vi) and (vii), respectively, and by inserting after clause (iv) the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H26B26DCAB3574B9AA98264001E03AD07" style="OLC"> <clause id="H38EA3B246AEF4BEA9059D200597036C1"><enum>(v)</enum><text>the credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48, and</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="H183FC125FE3443AFB6F5160085E2F0FA"><enum>(c)</enum><header>Energy credit for combined heat and power system property</header> <paragraph id="H50F3D99FE38F49E0B6DC7C83A9BD5DF"><enum>(1)</enum><header>In general</header><text>Section 48(a)(3)(A) (defining energy property) is amended by striking <quote>or</quote> at the end of clause (iii), by inserting <quote>or</quote> at the end of clause (iv), and by adding at the end the following new clause:</text> <quoted-block id="H9857BA2245A44A8B98A1024089F35B87" style="OLC"> <clause id="H57E411178BA8480F8820A82431E0679E"><enum>(v)</enum><text>combined heat and power system property,</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HA82EBBC68D794DDB901011CAEEC8A961"><enum>(2)</enum><header>Combined Heat and Power System Property</header><text>Section 48 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HAA83D786003248C4A94600003DC8B221" style="OLC"> <subsection id="HD4AC2C76AC6C4F42005242028C39F900"><enum>(d)</enum><header>Combined Heat and Power System Property</header><text>For purposes of subsection (a)(3)(A)(v)—</text> <paragraph id="HE02DFDC532554EAB91B427F5B9889EB3"><enum>(1)</enum><header>Combined heat and power system property</header><text>The term <term>combined heat and power system property</term> means property comprising a system—</text> <subparagraph id="H74A72B5AE98D44538C3942D209388D38"><enum>(A)</enum><text>which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications),</text> </subparagraph><subparagraph id="H0B711FFA904242B99B08F8FEE351DEF6"><enum>(B)</enum><text>which produces—</text> <clause id="H3613A46F15CE46019E521BC9000099F3"><enum>(i)</enum><text>at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof), and</text> </clause><clause id="H350F1ED1187347C7B80587EEF0DED7DE"><enum>(ii)</enum><text>at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof),</text> </clause></subparagraph><subparagraph id="H5BD5E4697AE84E409E95E1F7D296635"><enum>(C)</enum><text>the energy efficiency percentage of which exceeds 60 percent, and</text> </subparagraph><subparagraph id="HC3B6C0F1ACA147C08FB9E45CC88E2C9E"><enum>(D)</enum><text>which is placed in service before January 1, 2017.</text> </subparagraph></paragraph><paragraph id="HD5BCC732AFA949469FCAF7382970751"><enum>(2)</enum><header>Limitation</header> <subparagraph id="HD161E5ED13494868ABD16B562F525810"><enum>(A)</enum><header>In general</header><text>In the case of combined heat and power system property with an electrical capacity in excess of the applicable capacity placed in service during the taxable year, the credit under subsection (a)(1) (determined without regard to this paragraph) for such year shall be equal to the amount which bears the same ratio to such credit as the applicable capacity bears to the capacity of such property.</text> </subparagraph><subparagraph id="HF916F305CF524A959B67BFBE249098D4"><enum>(B)</enum><header>Applicable capacity</header><text>For purposes of subparagraph (A), the term <term>applicable capacity</term> means 15 megawatts or a mechanical energy capacity of more than 20,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.</text> </subparagraph><subparagraph id="HE1C2374B118B4A54AE23459FBB4F7BE"><enum>(C)</enum><header>Maximum capacity</header><text>The term <term>combined heat and power system property</term> shall not include any property comprising a system if such system has a capacity in excess of 50 megawatts or a mechanical energy capacity in excess of 67,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.</text> </subparagraph></paragraph><paragraph id="HDBB00706497149BE00ECD7AB93C3C963"><enum>(3)</enum><header>Special rules</header> <subparagraph id="HA13ADA4E0E3748D0A7BB313C47271750"><enum>(A)</enum><header>Energy efficiency percentage</header><text>For purposes of this subsection, the energy efficiency percentage of a system is the fraction—</text> <clause id="H47BC64B92EDC40A4ADB5F53C94987DDF"><enum>(i)</enum><text>the numerator of which is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates, and expected to be consumed in its normal application, and</text> </clause><clause id="H542C6D9C2D0544889B8E666E314F3CCF"><enum>(ii)</enum><text>the denominator of which is the lower heating value of the fuel sources for the system.</text> </clause></subparagraph><subparagraph id="H24B4B43F3ABC480E913114A083C6AFA3"><enum>(B)</enum><header>Determinations made on btu basis</header><text>The energy efficiency percentage and the percentages under paragraph (1)(B) shall be determined on a Btu basis.</text> </subparagraph><subparagraph id="HDE4D652C486E4C0AAD563F63E4CEED85"><enum>(C)</enum><header>Input and output property not included</header><text>The term <term>combined heat and power system property</term> does not include property used to transport the energy source to the facility or to distribute energy produced by the facility.</text> </subparagraph></paragraph><paragraph id="H21997B3EAD2D4EBF8145226263820289"><enum>(4)</enum><header>Systems using biomass</header><text>If a system is designed to use biomass (within the meaning of paragraphs (2) and (3) of section 45(c) without regard to the last sentence of paragraph (3)(A)) for at least 90 percent of the energy source—</text> <subparagraph id="HE5E308C1B5694284848287BC55B17170"><enum>(A)</enum><text>paragraph (1)(C) shall not apply, but</text> </subparagraph><subparagraph id="HB959A44D382D4FA1A2E8FA90266BAE04"><enum>(B)</enum><text>the amount of credit determined under subsection (a) with respect to such system shall not exceed the amount which bears the same ratio to such amount of credit (determined without regard to this paragraph) as the energy efficiency percentage of such system bears to 60 percent.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HFDE92E0D8133409BA826AB87809B3491"><enum>(d)</enum><header>Increase of credit limitation for fuel cell property</header><text>Subparagraph (B) of section 48(c)(1) is amended by striking <quote>$500</quote> and inserting <quote>$1,500</quote>.</text> </subsection><subsection id="H03C76F95F9A64449A411D16EF50D2CD"><enum>(e)</enum><header>Public utility property taken into account</header> <paragraph id="HA5F723C6FCD842FD9700F2111CB844F4"><enum>(1)</enum><header>In general</header><text>Paragraph (3) of section 48(a) is amended by striking the second sentence thereof.</text> </paragraph><paragraph id="H8FFE9957FD3E4F3F856245E893ECE0F9"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="HD269EB1250864C658768F2C3005ED8C"><enum>(A)</enum><text>Paragraph (1) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).</text> </subparagraph><subparagraph id="HABF9E6DDC7924FE290ACF94D402D3985"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).</text> </subparagraph></paragraph></subsection><subsection id="H0EA49EC16BD44FCD8393007C624CCB0"><enum>(f)</enum><header>Effective date</header> <paragraph id="H13A0CFACD7C84991965FD58661B12F48"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act.</text> </paragraph><paragraph id="H946492A4B2F74B81B73FA6ABBD276CD6"><enum>(2)</enum><header>Allowance against alternative minimum tax</header><text>The amendments made by subsection (b) shall apply to credits determined under section 46 of the Internal Revenue Code of 1986 in taxable years beginning after the date of the enactment of this Act and to carrybacks of such credits.</text> </paragraph><paragraph id="H4EB29AA346B543A2A73917CC70ABDE2D"><enum>(3)</enum><header>Combined heat and power and fuel cell property</header><text>The amendments made by subsections (c) and (d) shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of 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).</text> </paragraph><paragraph id="H052A5E33B20F44CC89F48F3200ABBD35"><enum>(4)</enum><header> Public utility property</header><text display-inline="yes-display-inline">The amendments made by subsection (e) shall apply to periods after February 13, 2008, in taxable years ending after such date, under rules similar to the rules of 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).</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H66067041F12E40E5A61F360127F4994D" section-type="subsequent-section"><enum>804.</enum><header>Credit for residential energy efficient property</header> <subsection id="H543F1828A78249EB893B8D893EF3E500"><enum>(a)</enum><header>Extension</header><text>Section 25D(g) is amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2016</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HBC699724CB1542D2961283F3555C48DD"><enum>(b)</enum><header>Maximum credit for solar electric property</header> <paragraph commented="no" display-inline="no-display-inline" id="H3AFD415E3B954CFD9FA656A636751BD3"><enum>(1)</enum><header>In general</header><text>Section 25D(b)(1)(A) is amended by striking <quote>$2,000</quote> and inserting <quote>$4,000</quote>.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6B3C598519A14772AAF9499B8D4B502F"><enum>(2)</enum><header>Conforming amendment</header><text>Section 25D(e)(4)(A)(i) is amended by striking <quote>$6,667</quote> and inserting <quote>$13,333</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H118DABC515CB4546B1CD76EBBA55D36B"><enum>(c)</enum><header>Credit for residential wind property</header> <paragraph commented="no" id="HA28D962B85B44024BDA8C19EFB99A960"><enum>(1)</enum><header>In general</header><text>Section 25D(a) is amended by striking <quote>and</quote> at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H1EF20350466045DCAFDF71A42856332B" style="OLC"> <paragraph id="HF4B6DF2E28AF481EAACDD398589807B5"><enum>(4)</enum><text>30 percent of the qualified small wind energy property expenditures made by the taxpayer during such year.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="HE8FF33C0B60D4A088090ECBC059BC2C1"><enum>(2)</enum><header>Limitation</header><text>Section 25D(b)(1) is amended by striking <quote>and</quote> at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H621278C448C84E7D8720B086B1E1D13" style="OLC"> <subparagraph id="H1E8AD70EB1CA44A4AA95C79F73139745"><enum>(D)</enum><text>$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.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="H801FC90642F94BBD97224D1F9CB4F8F0"><enum>(3)</enum><header>Qualified small wind energy property expenditures</header> <subparagraph commented="no" id="HF12359A50C874084A480FE6613103041"><enum>(A)</enum><header>In general</header><text>Section 25D(d) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H92B108B60DF54C32935DEF75BF502B53" style="OLC"> <paragraph id="HCA8E1C66798340AE9C3EAF5B9B0536BB"><enum>(4)</enum><header>Qualified small wind energy property expenditure</header><text>The term <term>qualified small wind energy property expenditure</term> 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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph commented="no" id="H22B1BC0C9AA840A0B9138DE5757757C9"><enum>(B)</enum><header>No double benefit</header><text>Section 45(d)(1) is amended by adding at the end the following new sentence: <quote>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.</quote>.</text> </subparagraph></paragraph><paragraph commented="no" id="H9CAD8FBBA2DF4BE7816BBE52CFA9DA"><enum>(4)</enum><header>Maximum expenditures in case of joint occupancy</header><text>Section 25D(e)(4)(A) is amended by striking <quote>and</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H88FD1BAF663A4578801007ECB787B70" style="OLC"> <clause commented="no" id="H04B52B8DABD946F5850064D070EE6512"><enum>(iv)</enum><text>$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.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HDBF01094DD0243AA8300009E2FAF3C46"><enum>(d)</enum><header>Credit for geothermal heat pump systems</header> <paragraph commented="no" id="H173FB088DC3F4486B49673ADEC15428D"><enum>(1)</enum><header>In general</header><text>Section 25D(a), as amended by subsection (c), is amended by striking <quote>and</quote> at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HFB12F90EC9054EDF96098952A58BF3A2" style="OLC"> <paragraph id="H1E15E5949E8D4E90BE7F63D25C9EADC5"><enum>(5)</enum><text>30 percent of the qualified geothermal heat pump property expenditures made by the taxpayer during such year.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="HBFF690C4C1474E2AA76FEAC03CC837E9"><enum>(2)</enum><header>Limitation</header><text>Section 25D(b)(1), as amended by subsection (c), is amended by striking <quote>and</quote> at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HFF8E4F022F1F47BF827FE102E853530" style="OLC"> <subparagraph id="H56266E49A0C24B59AB1EA72EBCECC561"><enum>(E)</enum><text>$2,000 with respect to any qualified geothermal heat pump property expenditures.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="H3842FD5DC4EA446482ECBA26DBDC6C5C"><enum>(3)</enum><header>Qualified geothermal heat pump property expenditure</header><text>Section 25D(d), as amended by subsection (c), is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HF0F940ACDEF24B8F001CFDB4F7110001" style="OLC"> <paragraph id="HE8C120C732D741FD85CA1F9D1353BF14"><enum>(5)</enum><header>Qualified geothermal heat pump property expenditure</header> <subparagraph id="HB2C4134975C34959BEF0350138055D2C"><enum>(A)</enum><header>In general</header><text>The term <term>qualified geothermal heat pump property expenditure</term> 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.</text> </subparagraph><subparagraph id="HC757621752A3469A9947FD5E5CA49BB0"><enum>(B)</enum><header>Qualified geothermal heat pump property</header><text>The term <quote>qualified geothermal heat pump property</quote> means any equipment which—</text> <clause id="HDCB1D05A58A34CD000ECA9B3849892"><enum>(i)</enum><text display-inline="yes-display-inline">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</text> </clause><clause id="HFFCFF418920545429B8CD1692DD02B9C"><enum>(ii)</enum><text display-inline="yes-display-inline">meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="H0776C97EDEC54FACBD66BB86F27CF71"><enum>(4)</enum><header>Maximum expenditures in case of joint occupancy</header><text>Section 25D(e)(4)(A), as amended by subsection (c), is amended by striking <quote>and</quote> at the end of clause (iii), by striking the period at the end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H030659F1ABBF4F2E908C88E745C8B6B" style="OLC"> <clause commented="no" id="H4F879BF5F7C84F99BFEFD795DF392D07"><enum>(v)</enum><text>$6,667 in the case of any qualified geothermal heat pump property expenditures.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="H3E85B4ED967448FEB4744DBF2D4C537F"><enum>(e)</enum><header>Credit allowed against alternative minimum tax</header> <paragraph commented="no" id="H42F55580943D4944AA7300D9A8344F2D"><enum>(1)</enum><header>In general</header><text>Subsection (c) of section 25D is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HF9A0701F71154DB6A5A757E1A1F5D789" style="OLC"> <subsection commented="no" id="H7E94482FA8CF4A88983C15FC6FEB499E"><enum>(c)</enum><header>Limitation based on amount of tax; carryforward of unused credit</header> <paragraph commented="no" id="H897163C2198C47338C5C2B00E7C3233"><enum>(1)</enum><header>Limitation based on amount of tax</header><text>In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of—</text> <subparagraph commented="no" id="HC34D8F62EB594EC8AE1B95ACE0D300F3"><enum>(A)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text> </subparagraph><subparagraph commented="no" id="HDA5E62CF5B984E2B9672705EF786444D"><enum>(B)</enum><text>the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.</text> </subparagraph></paragraph><paragraph commented="no" id="H8DC0F522214D4FC09E9F483EE905E770"><enum>(2)</enum><header>Carryforward of unused credit</header> <subparagraph commented="no" id="H671444B9D048438AACE6B4024034D04D"><enum>(A)</enum><header>Rule for years in which all personal credits allowed against regular and alternative minimum tax</header><text display-inline="yes-display-inline">In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.</text> </subparagraph><subparagraph commented="no" id="H0989A30EB6C14D799B772CE6532EE279"><enum>(B)</enum><header>Rule for other years</header><text>In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="H5466E66441DE4F30A60000144730BE10"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph commented="no" id="H0A2255B2B55146A99FC906FB7301F330"><enum>(A)</enum><text>Section 23(b)(4)(B) is amended by inserting <quote>and section 25D</quote> after <quote>this section</quote>.</text> </subparagraph><subparagraph commented="no" id="HB0DAA927039A467187DE78A1986150C3"><enum>(B)</enum><text>Section 24(b)(3)(B) is amended by striking <quote>and 25B</quote> and inserting <quote>, 25B, and 25D</quote>.</text> </subparagraph><subparagraph commented="no" id="HCA0303DFDC994EB58866472E00F9953C"><enum>(C)</enum><text>Section 25B(g)(2) is amended by striking <quote>section 23</quote> and inserting <quote>sections 23 and 25D</quote>.</text> </subparagraph><subparagraph commented="no" id="H83D3BBC1F00946A1A4CFA897212E0006"><enum>(D)</enum><text>Section 26(a)(1) is amended by striking <quote>and 25B</quote> and inserting <quote>25B, and 25D</quote>.</text> </subparagraph></paragraph></subsection><subsection id="H640DFC9D64514FB1B30049E1058E3D3"><enum>(f)</enum><header>Effective date</header> <paragraph id="HE9082909FEC14466BA6453A9C77467D7"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2007.</text> </paragraph><paragraph id="H25E82E9835874A80BF04659950C2A8FE"><enum>(2)</enum><header>Application of EGTRRA sunset</header><text>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.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H681D9A3FA713420DB77DA06673F81C81" section-type="subsequent-section"><enum>805.</enum><header>Special rule to implement FERC and State electric restructuring policy</header> <subsection id="HAA66CB43FB31453DA6767326AE9FD84F"><enum>(a)</enum><header>Extension for qualified electric utilities</header> <paragraph id="H63743DFB9BBD4EA895EF1D830000A85F"><enum>(1)</enum><header>In general</header><text>Paragraph (3) of section 451(i) is amended by inserting <quote>(before January 1, 2010, in the case of a qualified electric utility)</quote> after <quote>January 1, 2008</quote>.</text> </paragraph><paragraph id="HED4F4B0EEB2E45BC8CB800FC355905DF"><enum>(2)</enum><header>Qualified electric utility</header><text>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:</text> <quoted-block id="H1E89F299683E4DB19101D4B8992F097" style="OLC"> <paragraph id="HD7B2196B815D473CB94004BADB6C36E"><enum>(6)</enum><header>Qualified electric utility</header><text>For purposes of this subsection, the term <quote>qualified electric utility</quote> means a person that, as of the date of the qualifying electric transmission transaction, is vertically integrated, in that it is both—</text> <subparagraph id="HA0464ED752434FA29D5EF5B14CC02C7F"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H3CC0BAE710FC42F7A5FEE580AC9F4E09"><enum>(B)</enum><text>an electric utility (as defined in section 3(22) of the Federal Power Act (16 U.S.C. 796(22))).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H8E463F0E44034913B6C6EA6C253688"><enum>(b)</enum><header>Extension of period for transfer of operational control authorized by FERC</header><text>Clause (ii) of section 451(i)(4)(B) is amended by striking <quote>December 31, 2007</quote> and inserting <quote>the date which is 4 years after the close of the taxable year in which the transaction occurs</quote>.</text> </subsection><subsection id="HD01F170A35B648E493B71D4E82FBC5B7"><enum>(c)</enum><header>Property located outside the united states not treated as exempt utility property</header><text>Paragraph (5) of section 451(i) is amended by adding at the end the following new subparagraph:</text> <quoted-block id="H530500828DA341F40000811E21F0E737" style="OLC"> <subparagraph id="H7D9A0B856DD14D7E866045149FA100DE"><enum>(C)</enum><header>Exception for property located outside the united states</header><text>The term <quote>exempt utility property</quote> shall not include any property which is located outside the United States.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H59640BAE4CFF4540936CEE56E9716975"><enum>(d)</enum><header>Effective Dates</header> <paragraph id="H1EE37D1CAD034A96AA2529C380685800"><enum>(1)</enum><header>Extension</header><text>The amendments made by subsection (a) shall apply to transactions after December 31, 2007.</text> </paragraph><paragraph id="H14D3E16FE99442BD8FAD41001E196B2E"><enum>(2)</enum><header>Transfers of operational control</header><text>The amendment made by subsection (b) shall take effect as if included in section 909 of the American Jobs Creation Act of 2004.</text> </paragraph><paragraph id="H84D74DBC1E4A4BAAAFA019BF2371E99C"><enum>(3)</enum><header>Exception for property located outside the united states</header><text>The amendment made by subsection (c) shall apply to transactions after the date of the enactment of this Act.</text> </paragraph></subsection></section><section id="HF840BA2D7C4E488885BAABA92BDBC17C"><enum>806.</enum><header>New clean renewable energy bonds</header> <subsection id="HD482DB7C83CE4E259DC2CE8B1D4C8861"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="H2A00EAA91DB246869780711994B6C2D6" style="OLC"> <section display-inline="no-display-inline" id="HE51F349BBAFB469BBE7E8C70976C63DB" section-type="subsequent-section"><enum>54C.</enum><header>New clean renewable energy bonds</header> <subsection id="HA1C63277A3DF4203A8A6C18B2204E3"><enum>(a)</enum><header>New clean renewable energy bond</header><text>For purposes of this subpart, the term <term>new clean renewable energy bond</term> means any bond issued as part of an issue if—</text> <paragraph id="HBEC8685D50D14ECA9663EF33D9057B8F"><enum>(1)</enum><text>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,</text> </paragraph><paragraph id="H43ADA3DEA190447C852F7957D1233414"><enum>(2)</enum><text>the bond is issued by a qualified issuer, and</text> </paragraph><paragraph id="HD7AA5C40BDBB4A9800B77FE33488F8B8"><enum>(3)</enum><text>the issuer designates such bond for purposes of this section.</text> </paragraph></subsection><subsection id="H3B1534E58E3945BEA3F0A4B1CF874B0"><enum>(b)</enum><header>Reduced credit amount</header><text>The annual credit determined under section 54A(b) with respect to any new clean renewable energy bond shall be 70 percent of the amount so determined without regard to this subsection.</text> </subsection><subsection display-inline="no-display-inline" id="H95CBECC787894636AE83AC21FC45FBF7"><enum>(c)</enum><header>Limitation on amount of bonds designated</header> <paragraph id="HA7EF88CCB74A4A369C36EBBA73A16C3"><enum>(1)</enum><header>In general</header><text>The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated under this subsection to such issuer.</text> </paragraph><paragraph id="H75433857BE4740529C437C10D493E0A2"><enum>(2)</enum><header>National limitation on amount of bonds designated</header><text>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—</text> <subparagraph id="H01C34099A6D94BA185A196B7D18EA746"><enum>(A)</enum><text>not more than 33<fraction>1/3</fraction> percent thereof may be allocated to qualified projects of public power providers,</text> </subparagraph><subparagraph id="H3A05777C8EBC4BC788891196B2041D9"><enum>(B)</enum><text>not more than 33<fraction>1/3</fraction> percent thereof may be allocated to qualified projects of governmental bodies, and</text> </subparagraph><subparagraph id="H835EB318127A443DAA5368A473418E00"><enum>(C)</enum><text>not more than 33<fraction>1/3</fraction> percent thereof may be allocated to qualified projects of cooperative electric companies.</text> </subparagraph></paragraph><paragraph id="H91A4A449890642CA879D00AD842800F2"><enum>(3)</enum><header>Method of allocation</header> <subparagraph id="HD8441CC5F2014A1EBA55A6CFA02E2412"><enum>(A)</enum><header>Allocation among public power providers</header><text>After the Secretary determines the qualified projects of public power providers which are appropriate for receiving an allocation of the national new clean renewable energy bond limitation, the Secretary shall, to the maximum extent practicable, make allocations among such projects in such manner that the amount allocated to each such project bears the same ratio to the cost of such project as the limitation under paragraph (2)(A) bears to the cost of all such projects.</text> </subparagraph><subparagraph id="H09A8EF5C2AF2453AAABC1F59AAAAE140"><enum>(B)</enum><header>Allocation among governmental bodies and cooperative electric companies</header><text>The Secretary shall make allocations of the amount of the national new clean renewable energy bond limitation described in paragraphs (2)(B) and (2)(C) among qualified projects of governmental bodies and cooperative electric companies, respectively, in such manner as the Secretary determines appropriate.</text> </subparagraph></paragraph></subsection><subsection id="H5CB4A57F3C314E7BA2006122002C59EB"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="HCA805CA2BCEC4704B060538C89BE36DC"><enum>(1)</enum><header>Qualified renewable energy facility</header><text>The term <term>qualified renewable energy facility</term> means a qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and to any placed in service date) owned by a public power provider, a governmental body, or a cooperative electric company.</text> </paragraph><paragraph id="HE9BEF03EB5774EE0A7CDADCFCCD259A3"><enum>(2)</enum><header>Public power provider</header><text display-inline="yes-display-inline">The term <term>public power provider</term> means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on the date of the enactment of this paragraph).</text> </paragraph><paragraph display-inline="no-display-inline" id="H020D61A241C64E09B988680996809945"><enum>(3)</enum><header>Governmental body</header><text>The term <term>governmental body</term> means any State or Indian tribal government, or any political subdivision thereof.</text> </paragraph><paragraph id="H6EF9444BD732423AA4410031C7D00026"><enum>(4)</enum><header>Cooperative electric company</header><text display-inline="yes-display-inline">The term <term>cooperative electric company</term> means a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C).</text> </paragraph><paragraph id="H0E73B08C89994F7A867C0034CAC25186"><enum>(5)</enum><header>Clean renewable energy bond lender</header><text display-inline="yes-display-inline">The term <term>clean renewable energy bond lender</term> means a lender which is a cooperative which is owned by, or has outstanding loans to, 100 or more cooperative electric companies and is in existence on February 1, 2002, and shall include any affiliated entity which is controlled by such lender.</text> </paragraph><paragraph id="H8E94CD0A0DC5494797BDF585049FF2BA"><enum>(6)</enum><header>Qualified issuer</header><text display-inline="yes-display-inline">The term <term>qualified issuer</term> means a public power provider, a cooperative electric company, a governmental body, a clean renewable energy bond lender, or a not-for-profit electric utility which has received a loan or loan guarantee under the Rural Electrification Act.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="H440C776C88244B058CDD66EB42722B72"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="HD1F9F2FFBA8349AD92BA273831C409CF"><enum>(1)</enum><text>Paragraph (1) of section 54A(d) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HFE6ABA6BF3294474A639CCE849F34757" style="OLC"> <paragraph commented="no" id="HE0EC543884CF496BBC1C4B88D5D2B100"><enum>(1)</enum><header>Qualified tax credit bond</header><text>The term <term>qualified tax credit bond</term> means—</text> <subparagraph id="H7CB8363A601C4478B555FD8C7EC7A96B"><enum>(A)</enum><text>a qualified forestry conservation bond, or</text> </subparagraph><subparagraph id="HB0F22123D4744DEDBEFB70209ECB1B38"><enum>(B)</enum><text>a new clean renewable energy bond,</text> </subparagraph><continuation-text continuation-text-level="paragraph">which is part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and (6).</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HFD11146C545A481B99BEB85DA4EA9D82"><enum>(2)</enum><text>Subparagraph (C) of section 54A(d)(2) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H74A4926FFF72413281D9F7A00527C699" style="OLC"> <subparagraph commented="no" id="H153AD15CE8E14294A259490056A5BC54"><enum>(C)</enum><header>Qualified purpose</header><text>For purposes of this paragraph, the term <term>qualified purpose</term> means—</text> <clause id="HEADF3D1C160D456C8097852854C8423F"><enum>(i)</enum><text>in the case of a qualified forestry conservation bond, a purpose specified in section 54B(e), and</text> </clause><clause id="H79BF6C4922DE4A678F00A3DEC7E6B31"><enum>(ii)</enum><text>in the case of a new clean renewable energy bond, a purpose specified in section 54C(a)(1).</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HD7A461F8809D4818AFBAB99BD053A12"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:</text> <quoted-block display-inline="no-display-inline" id="HD5D2D0E8C13749CEA5E1D1438D9DCF6E" style="OLC"> <toc container-level="quoted-block-container" idref="H2A00EAA91DB246869780711994B6C2D6" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry idref="HE51F349BBAFB469BBE7E8C70976C63DB" level="section">Sec. 54C. New clean renewable energy bonds.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4B300135EA594E7CB5E802FF05B88158"><enum>(c)</enum><header>Application of certain labor standards on projects financed under tax credit bonds</header><text>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).</text> </subsection><subsection display-inline="no-display-inline" id="HC973D46D933445BAB6B413942900532F"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.</text> </subsection></section></part><part id="H125BD1297E40485BA50007FC169CD487"><enum>2</enum><header>Carbon mitigation provisions</header> <section display-inline="no-display-inline" id="HADBCE7C2D1804CB38829B05883F841BA" section-type="subsequent-section"><enum>811.</enum><header>Expansion and modification of advanced coal project investment credit</header> <subsection id="HFA48EBD90DBC4470845C5481078D9240"><enum>(a)</enum><header>Modification of credit amount</header><text>Section 48A(a) is amended by striking <quote>and</quote> at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H31B82C0C66094E35A4BBDBF480F0FCB7" style="OLC"> <paragraph id="H4815ABBE2E1D438291A8C3595ECE7B5"><enum>(3)</enum><text>30 percent of the qualified investment for such taxable year in the case of projects described in clause (iii) of subsection (d)(3)(B).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HF9143A502E5842A0AAAA871E99ED98E0"><enum>(b)</enum><header>Expansion of aggregate credits</header><text>Section 48A(d)(3)(A) is amended by striking <quote>$1,300,000,000</quote> and inserting <quote>$2,250,000,000</quote>.</text> </subsection><subsection id="H2E441D30656A4CCB895C8201D0B56492"><enum>(c)</enum><header>Authorization of Additional Projects</header> <paragraph id="HBA36CA5B8D1E417BBF2258F5034B66A8"><enum>(1)</enum><header>In general</header><text>Subparagraph (B) of section 48A(d)(3) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HC78B9FB7075B496B8818CF69BC8120FA" style="OLC"> <subparagraph id="HDB4C09505AA04D6EA176F75CC9E6E3FE"><enum>(B)</enum><header>Particular projects</header><text>Of the dollar amount in subparagraph (A), the Secretary is authorized to certify—</text> <clause id="H1F73E153D8354584A2150659B8E6D486"><enum>(i)</enum><text>$800,000,000 for integrated gasification combined cycle projects the application for which is submitted during the period described in paragraph (2)(A)(i),</text> </clause><clause id="H1C0E2E2BF03C4B3781212C31F600DFA"><enum>(ii)</enum><text>$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</text> </clause><clause id="H569423B39286483FAB8DA4DE318BA5ED"><enum>(iii)</enum><text>$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).</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HD2166ABAFCDD4404B9C923B5C7876E3B"><enum>(2)</enum><header>Application period for additional projects</header><text>Subparagraph (A) of section 48A(d)(2) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H1AF2ADDF68584D73A966B400628CE283" style="OLC"> <subparagraph id="H6B9C2F3B3DCD4AB79F07942D3F574CCC"><enum>(A)</enum><header>Application period</header><text>Each applicant for certification under this paragraph shall submit an application meeting the requirements of subparagraph (B). An applicant may only submit an application—</text> <clause id="HD0EE7B460B494F408701D8ADB48C5CA7"><enum>(i)</enum><text>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</text> </clause><clause id="H6D6A4E3E19DA446CA0A8AE4DFD6C2100"><enum>(ii)</enum><text>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.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H6B5485F969444F7F9D590000E3F39E6"><enum>(3)</enum><header>Capture and sequestration of carbon dioxide emissions requirement</header> <subparagraph id="HCC7C0B43BC0B4B8A92F98D31A8FF7092"><enum>(A)</enum><header>In general</header><text>Section 48A(e)(1) is amended by striking <quote>and</quote> at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting <quote>; and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H0A55A2735FA245758400438900E4B6D0" style="OLC"> <subparagraph id="H2B40DD183EC54ECA82571D9C2038375B"><enum>(G)</enum><text>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.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="H145ECB1533BD49B8AAB3F4A6CB5CDC46"><enum>(B)</enum><header>Highest priority for projects which sequester carbon dioxide emissions</header><text>Section 48A(e)(3) is amended by striking <quote>and</quote> at the end of subparagraph (A)(iii), by striking the period at the end of subparagraph (B)(iii) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HDE5E5CDC131E441D95565CFF1925C257" style="OLC"> <subparagraph id="H447D10BDFF524BA0A6E42D4FECF8FC6B"><enum>(C)</enum><text>give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="H711F6636B31C456C8661FB517BB470EA"><enum>(C)</enum><header>Recapture of credit for failure to sequester</header><text>Section 48A is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H679843F28BAC4AD48C49721E087C5467" style="OLC"> <subsection id="H6DF97813E2F84ADB8DB300AC482DF587"><enum>(i)</enum><header>Recapture of credit for failure To sequester</header><text>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).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H08F6E94E316F4C56958868E28323254F"><enum>(4)</enum><header>Additional priority for research partnerships</header><text>Section 48A(e)(3)(B), as amended by paragraph (3)(B), is amended—</text> <subparagraph id="H395208A2D9A340A48566095217EC7D2"><enum>(A)</enum><text>by striking <quote>and</quote> at the end of clause (ii),</text> </subparagraph><subparagraph id="H48CA04DC0B9245A98849574DA5B7234"><enum>(B)</enum><text>by redesignating clause (iii) as clause (iv), and</text> </subparagraph><subparagraph id="HED14CA90B79A4C2486185206F0F2DC2E"><enum>(C)</enum><text>by inserting after clause (ii) the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H6A159FEB3D184D68AFDC272D81CF87" style="OLC"> <clause id="H1C4F825933E14D2EBE1619C998636D68"><enum>(iii)</enum><text>applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)), and</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="HE67FEEA884DC4D28B1B7211896E58F1F"><enum>(5)</enum><header>Clerical amendment</header><text>Section 48A(e)(3) is amended by striking <quote><header-in-text level="paragraph" style="OLC">integrated gasification combined cycle</header-in-text></quote> in the heading and inserting <quote><header-in-text level="paragraph" style="OLC">certain</header-in-text></quote>.</text> </paragraph></subsection><subsection id="H497FF881467D49E3993BDAA48585447F"><enum>(d)</enum><header>Disclosure of allocations</header><text>Section 48A(d) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H49F2F4CF276F41D28F7279A22CA88E00" style="OLC"> <paragraph id="H82234AAB6BD74714B861B5AA2A9D1D5"><enum>(5)</enum><header>Disclosure of allocations</header><text display-inline="yes-display-inline">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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H0AF076A7F79A44BC9F1E5DDA7160F8E0"><enum>(e)</enum><header>Effective dates</header> <paragraph commented="no" display-inline="no-display-inline" id="H8E55F07231564A6FA0331277CE5C8FA6"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H68EC0A7F00FD4F548119B82E91F9A1F3"><enum>(2)</enum><header>Disclosure of allocations</header><text>The amendment made by subsection (d) shall apply to certifications made after the date of the enactment of this Act.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4AE44A8FA3E74F99B695F1311E27CD6F"><enum>(3)</enum><header>Clerical amendment</header><text>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.</text> </paragraph></subsection></section><section id="H9AF9DB5E2E464B728DFAC5D1FA30FD08"><enum>812.</enum><header>Expansion and modification of coal gasification investment credit</header> <subsection id="H8DD42524390B4BD2AE00B1D2AE66A4D6"><enum>(a)</enum><header>Modification of credit amount</header><text display-inline="yes-display-inline">Section 48B(a) is amended by inserting <quote>(30 percent in the case of credits allocated under subsection (d)(1)(B))</quote> after <quote>20 percent</quote>.</text> </subsection><subsection id="H27E926255F3C48FA89099CD7979B9B86"><enum>(b)</enum><header>Expansion of aggregate credits</header><text>Section 48B(d)(1) is amended by striking <quote>shall not exceed $350,000,000</quote> and all that follows and inserting</text> <quoted-block display-inline="yes-display-inline" id="H78A1B2D2724549DF9EAD7B1131B86363" style="OLC"> <text>shall not exceed—</text><subparagraph id="HFEECB03A827140A9AAB8EDBDBBB1BE77"><enum>(A)</enum><text display-inline="yes-display-inline">$350,000,000, plus</text> </subparagraph><subparagraph id="H16DC0B63A47348ED8B756CA02C7600EF"><enum>(B)</enum><text>$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.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HD7ADFA19EC034883AEB17D002015AC51"><enum>(c)</enum><header>Recapture of credit for failure To sequester</header><text>Section 48B is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H752B37482003410AAAEBC0090CF3604" style="OLC"> <subsection id="H9B964EB0D7C24E8287217723C914800"><enum>(f)</enum><header>Recapture of credit for failure To sequester</header><text display-inline="yes-display-inline">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).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HA92EB081937B45C489D289FD46D9A2"><enum>(d)</enum><header>Selection priorities</header><text>Section 48B(d) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H0E24042E067044119382EE9BE18E4437" style="OLC"> <paragraph id="H6334F3F9EFFD46D9A41BD944EEDFB5AC"><enum>(4)</enum><header>Selection priorities</header><text display-inline="yes-display-inline">In determining which qualifying gasification projects to certify under this section, the Secretary shall—</text> <subparagraph id="H6927BEBD708544A5B5A012F36DE6F047"><enum>(A)</enum><text>give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions, and</text> </subparagraph><subparagraph id="H6943A8EB014F4977BDFE957FF5865624"><enum>(B)</enum><text>give high priority to applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H8EE0158595B6408E94E1D55DA1757E40"><enum>(e)</enum><header>Effective date</header><text display-inline="yes-display-inline">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.</text> </subsection></section><section display-inline="no-display-inline" id="H3DF23D80FAA940B4A2386DD125C14FB" section-type="subsequent-section"><enum>813.</enum><header>Temporary increase in coal excise tax</header><text display-inline="no-display-inline">Paragraph (2) of section 4121(e) is amended—</text> <paragraph id="HC39F308FAC3344C5B8B32B1ED0058C9"><enum>(1)</enum><text>by striking <quote>January 1, 2014</quote> in subparagraph (A) and inserting <quote>December 31, 2018</quote>, and</text> </paragraph><paragraph id="HDAAE03AC9DFB47D0825B0376F1B54A6"><enum>(2)</enum><text>by striking <quote>January 1 after 1981</quote> in subparagraph (B) and inserting <quote>December 31 after 2007</quote>.</text> </paragraph></section><section id="H9E3CC67055D54735A00653415034E400"><enum>814.</enum><header>Special rules for refund of the coal excise tax to certain coal producers and exporters</header> <subsection id="H7A2ECD17E3724A3399E0AE27CD1F65E3"><enum>(a)</enum><header>Refund</header> <paragraph id="H6B50B41A623742AB9114D8B28285DE4"><enum>(1)</enum><header>Coal producers</header> <subparagraph id="H13AFF33BE4D94906B4773800A568DD5"><enum>(A)</enum><header>In general</header><text>Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the Internal Revenue Code of 1986, if—</text> <clause id="H54CFFB5B6FCE447380260064BF04E800"><enum>(i)</enum><text>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),</text> </clause><clause id="HE43AE32BE9AC4DC5BE95CB3474A9D802"><enum>(ii)</enum><text>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</text> </clause><clause id="HFF1C1CE8693F4261B68B30C381ECF3ED"><enum>(iii)</enum><text>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,</text> </clause><continuation-text continuation-text-level="subparagraph">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.</continuation-text></subparagraph><subparagraph id="H8BF77D9BAD484565B27168F9F925FA30"><enum>(B)</enum><header>Special rules for certain taxpayers</header><text>For purposes of this section—</text> <clause id="HB43BA52E321E4983B05E038CB9A73C5C"><enum>(i)</enum><header>In general</header><text>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).</text> </clause><clause id="H1B2BDB75A3DE494C9409165C32905922"><enum>(ii)</enum><header>Amount of payment</header><text>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).</text> </clause><clause id="H364D19081A4D475F0015EC86BC1E7467"><enum>(iii)</enum><header>Judgment described</header><text>A judgment is described in this subparagraph if such judgment—</text> <subclause id="H9B1AD71550D44845A644C52464231F45"><enum>(I)</enum><text>is made by a court of competent jurisdiction within the United States,</text> </subclause><subclause id="H098091C4CBF749C48DF8B3414873959"><enum>(II)</enum><text>relates to the constitutionality of any tax paid on exported coal under section 4121 of the Internal Revenue Code of 1986, and</text> </subclause><subclause id="HB101277D9F8B460BAD32D616C220EB9B"><enum>(III)</enum><text>is in favor of the coal producer or the party related to the coal producer.</text> </subclause></clause></subparagraph></paragraph><paragraph id="HA12C5D4286CB4CCCA7D415D7159D9429"><enum>(2)</enum><header>Exporters</header><text>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—</text> <subparagraph id="H9FA086548761428D9B5323D02810F932"><enum>(A)</enum><text>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,</text> </subparagraph><subparagraph id="H6A736B9DC0AF4CEB99E8882C33000027"><enum>(B)</enum><text>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</text> </subparagraph><subparagraph id="HD00BDD1FA59E452EB6343BF966E6EBBB"><enum>(C)</enum><text>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,</text> </subparagraph><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph></subsection><subsection id="H42E452AED6254BE288ADF772014759FE"><enum>(b)</enum><header>Limitations</header><text>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 <term>settlement with the Federal Government</term> 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.</text> </subsection><subsection id="H6511DF5F1E1E4A2098CC74F6AD8CFF00"><enum>(c)</enum><header>Subsequent refund prohibited</header><text>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.</text> </subsection><subsection id="HCBD8C533398C4026A09D454997E385D7"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="H5E6F713107A144F3AE6C74E41DFC556E"><enum>(1)</enum><header>Coal producer</header><text>The term <term>coal producer</term> 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.</text> </paragraph><paragraph id="H3858521D15194B3E86BFA994A1CC2CE2"><enum>(2)</enum><header>Exporter</header><text>The term <term>exporter</term> 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—</text> <subparagraph id="HBDAE09AE21474FA200FCC75384843652"><enum>(A)</enum><text>is indicated in the shipper’s export declaration or other documentation as the exporter of record, or</text> </subparagraph><subparagraph id="HD8C518248E6D4A04ADAE3BCB669171FA"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H8F76C17E80614FB19058F7621C8CE54"><enum>(3)</enum><header>Related party</header><text>The term <term>a party related to such coal producer</term> means a person who—</text> <subparagraph id="HE20B03D69E574C99BC92ED819C8561C0"><enum>(A)</enum><text>is related to such coal producer through any degree of common management, stock ownership, or voting control,</text> </subparagraph><subparagraph id="H01746701F36C4910AEA581E7606C4DC"><enum>(B)</enum><text>is related (within the meaning of section 144(a)(3) of the Internal Revenue Code of 1986) to such coal producer, or</text> </subparagraph><subparagraph id="H25275C56AAEE4BFDB07028565F479055"><enum>(C)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H9F4DCCEC499247599D3682B4CDE9DA9C"><enum>(4)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Treasury or the Secretary's designee.</text> </paragraph></subsection><subsection id="H6386B770E00A48AC0079C373FA9D36"><enum>(e)</enum><header>Timing of refund</header><text>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.</text> </subsection><subsection id="H1F64E5D1688C4CAEA3301254A2B3B0DC"><enum>(f)</enum><header>Interest</header><text>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.</text> </subsection><subsection id="H0B22FD1016B84F7BB96288F595ACCBFB"><enum>(g)</enum><header>Denial of double benefit</header><text>The payment under subsection (a) with respect to any coal shall not exceed—</text> <paragraph id="H78B86988591F454D8DF4E27D0044E9B1"><enum>(1)</enum><text>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</text> </paragraph><paragraph id="H1B8C88C84B084FAFAB2F88653C2B7646"><enum>(2)</enum><text>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.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7C2F18D025664FB39FCD646C5C2C15E4"><enum>(h)</enum><header display-inline="yes-display-inline">Application of section</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H65FFF4DB9D6C4B79A61F005F6FADABF4"><enum>(i)</enum><header>Standing not conferred</header> <paragraph id="H64625E9A65D94D87B288B2BA83282E00"><enum>(1)</enum><header>Exporters</header><text>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.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE8402803DADB45BEA0682D8BD8D0277"><enum>(2)</enum><header>Coal producers</header><text>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.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H0F07366F9097461386BB78DF6B003675" section-type="subsequent-section"><enum>815.</enum><header>Carbon audit of the tax code</header> <subsection id="HEEC5A9AC90A345798DF4AFC2C8A88EDD"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="HC57B24983B7D49D5A2F7915BE28DAF94"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H393F7972E98C4865A89BFDEC75124108"><enum>(c)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $1,500,000 for the period of fiscal years 2009 and 2010.</text> </subsection></section></part></subtitle><subtitle id="H417DA73282584D44823D42D1B2990033"><enum>B</enum><header>Transportation and domestic fuel security provisions</header> <section id="H33DB60EDA2BF472B95A52C314FC792FC"><enum>821.</enum><header>Inclusion of cellulosic biofuel in bonus depreciation for biomass ethanol plant property</header> <subsection id="HD333ED279D7448B69C49A49BE06B5913"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 168(l) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H850365577C8E4550A194668F2E50AC64" style="OLC"> <paragraph id="H3E7EFE221CF144DBAEEDA0C46BCBF344"><enum>(3)</enum><header>Cellulosic biofuel</header><text display-inline="yes-display-inline">The term <term>cellulosic biofuel</term> means any liquid fuel which is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H54F55D1FCCF94CD59C5C49A55D5E98FE"><enum>(b)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Subsection (l) of section 168 is amended—</text> <paragraph id="H6D19274DA6344FA1BEB580CAD6D300FF"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>cellulosic biomass ethanol</quote> each place it appears and inserting <quote>cellulosic biofuel</quote>,</text> </paragraph><paragraph id="H4D22678AD0054134AE21DF669DA05F12"><enum>(2)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">cellulosic biomass ethanol</header-in-text></quote> in the heading of such subsection and inserting <quote><header-in-text level="subsection" style="OLC">cellulosic biofuel</header-in-text></quote>, and</text> </paragraph><paragraph id="H1F92653D686A4C489C4D34D2112F1BEE"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">cellulosic biomass ethanol</header-in-text></quote> in the heading of paragraph (2) thereof and inserting <quote><header-in-text level="paragraph" style="OLC">cellulosic biofuel</header-in-text></quote>.</text> </paragraph></subsection><subsection id="HCF95DDA67112474DBF1C004B9B4D3363"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text> </subsection></section><section display-inline="no-display-inline" id="H7F4B7546E8914B428CBDC9AAACE51CFA" section-type="subsequent-section"><enum>822.</enum><header>Credits for biodiesel and renewable diesel</header> <subsection id="H88DCC185F5A34396A12D59B6F4FF7900"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are each amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2009</quote>.</text> </subsection><subsection id="HCAF3F4C35ECF4189B9EB97D7B512FE19"><enum>(b)</enum><header>Increase in rate of credit</header> <paragraph id="HF9457107A0C6428DB856EB483038BEB2"><enum>(1)</enum><header>Income tax credit</header><text>Paragraphs (1)(A) and (2)(A) of section 40A(b) are each amended by striking <quote>50 cents</quote> and inserting <quote>$1.00</quote>.</text> </paragraph><paragraph id="H31B52A2792CC444F90BA145995C7EB14"><enum>(2)</enum><header>Excise tax credit</header><text>Paragraph (2) of section 6426(c) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H1B7987C091AE46D5A6FD92DF321F73D4" style="OLC"> <paragraph id="H1A221D0138B04C88AC05753E7059EC37"><enum>(2)</enum><header>Applicable amount</header><text display-inline="yes-display-inline">For purposes of this subsection, the applicable amount is $1.00.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H2BFF2FABEF734AFCA9236F6BD4B784FA"><enum>(3)</enum><header>Conforming amendments</header> <subparagraph id="H253CC1AF97AF4F9CB6D9FB8BB361F428"><enum>(A)</enum><text display-inline="yes-display-inline">Subsection (b) of section 40A is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.</text> </subparagraph><subparagraph id="HC0756CB902DB4C2781FAEE0093AC5589"><enum>(B)</enum><text>Paragraph (2) of section 40A(f) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H8EE82F8E7BDD48D081FD7FEC3C9F66BE" style="OLC"> <paragraph id="H595B43E7A96A432CB255DB373D7F6E82"><enum>(2)</enum><header>Exception</header><text display-inline="yes-display-inline">Subsection (b)(4) shall not apply with respect to renewable diesel.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HFFA73592BE594602BFC037F4CAD60236"><enum>(C)</enum><text>Paragraphs (2) and (3) of section 40A(e) are each amended by striking <quote>subsection (b)(5)(C)</quote> and inserting <quote>subsection (b)(4)(C)</quote>.</text> </subparagraph><subparagraph id="H7635FA7A1CC74EDF9858C8DB00711121"><enum>(D)</enum><text>Clause (ii) of section 40A(d)(3)(C) is amended by striking <quote>subsection (b)(5)(B)</quote> and inserting <quote>subsection (b)(4)(B)</quote>.</text> </subparagraph></paragraph></subsection><subsection id="H7F0C3B67BDAD436AA8F473EBBEBAB84D"><enum>(c)</enum><header>Uniform treatment of diesel produced from biomass</header><text>Paragraph (3) of section 40A(f) is amended—</text> <paragraph id="H9827F6DD7B274FEF8FC334B40092ED89"><enum>(1)</enum><text>by striking <quote>diesel fuel</quote> and inserting <quote>liquid fuel</quote>,</text> </paragraph><paragraph id="HE4C91C356B7A4136AB0047C914E221EC"><enum>(2)</enum><text>by striking <quote>using a thermal depolymerization process</quote>, and</text> </paragraph><paragraph id="H4A5DCBE513C948D498FD5C243BCB6FBA"><enum>(3)</enum><text>by striking <quote>or D396</quote> in subparagraph (B) and inserting <quote>, D396, or other equivalent standard approved by the Secretary</quote>.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HD3511FBA93124A458B000919E03C40FD"><enum>(d)</enum><header>Coproduction of renewable diesel with petroleum feedstock</header> <paragraph id="HFEAAEF097FF742DF89A0189E3648E28B"><enum>(1)</enum><header>In general</header><text>Paragraph (3) of section 40A(f) (defining renewable diesel) is amended by adding at the end the following flush sentence:</text> <quoted-block display-inline="no-display-inline" id="HE85842449A9D41709677C987C268ABE7" style="OLC"> <quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">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 <term>biomass</term> has the meaning given such term by section 45K(c)(3).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H24B7FBAE14624DC5940024543922005C"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraph (3) of section 40A(f) is amended by striking <quote>(as defined in section 45K(c)(3))</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H18ED50F9E0F8463792007E438107606C"><enum>(e)</enum><header>Eligibility of certain aviation fuel</header><text>Subsection (f) of section 40A (relating to renewable diesel) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HAE1BAB3C297849EAB91F498CD3D54E27" style="OLC"> <paragraph id="H2500C0EB260842E0AAB70205402188E9"><enum>(4)</enum><header>Certain aviation fuel</header> <subparagraph id="H15B09C1148D0476FB420CD52C0BC0250"><enum>(A)</enum><header>In general</header><text>Except as provided in the last three sentences of paragraph (3), the term <quote>renewable diesel</quote> 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.</text> </subparagraph><subparagraph id="H43CA8A9D51F245BCA94D9EB5EC25E407"><enum>(B)</enum><header>Application of mixture credits</header><text>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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H01A9FE6108EF414C8BDCE5C7D535A94D"><enum>(f)</enum><header>Effective date</header> <paragraph id="HB7437961B07442C79F36D32D50B064A8"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this subsection, the amendments made by this section shall apply to fuel produced, and sold or used, after December 31, 2008.</text> </paragraph><paragraph id="HA3052DD0D8E942A7BD815C86C8874D17"><enum>(2)</enum><header>Coproduction of renewable diesel with petroleum feedstock</header><text>The amendments made by subsection (c) shall apply to fuel produced, and sold or used, after February 13, 2008.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H1904ED17CAFE44F982BE9F73A7C47870" section-type="subsequent-section"><enum>823.</enum><header>Clarification that credits for fuel are designed to provide an incentive for United States production</header> <subsection commented="no" display-inline="no-display-inline" id="HD0748FFE86574E698E3907F212F2F620"><enum>(a)</enum><header>Alcohol fuels credit</header><text>Subsection (d) of section 40 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H98618AA309AC4449AB4DAA2510DED407" style="OLC"> <paragraph commented="no" id="H929A415004584658AB55F32306C4496F"><enum>(7)</enum><header>Limitation to alcohol with connection to the United States</header><text display-inline="yes-display-inline">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 <term>United States</term> includes any possession of the United States.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H6321A967093C4F690098D06C85185C6B"><enum>(b)</enum><header>Biodiesel fuels credit</header><text>Subsection (d) of section 40A is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H55273A9BDA7E4EB9B2A92C1F5C7B58F0" style="OLC"> <paragraph commented="no" id="H1D8E5926D5CB4EB594EE90F22700FB"><enum>(5)</enum><header>Limitation to biodiesel with connection to the United States</header><text display-inline="yes-display-inline">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 <term>United States</term> includes any possession of the United States.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HA56CC555A9EF45D80037483800715F13"><enum>(c)</enum><header>Excise tax credit</header> <paragraph id="H9074EBC5E6024DA488B49B370047F2D5"><enum>(1)</enum><header>In general</header><text>Section 6426 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H5B014432F2FE467196FC80A9FF78C29" style="OLC"> <subsection commented="no" id="HB1C500C644C34734817562F65703D4F9"><enum>(i)</enum><header>Limitation to fuels with connection to the United States</header> <paragraph id="H7BFD882458564A4C8BA66300EEAE0235"><enum>(1)</enum><header>Alcohol</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="HE4C68996BC1A4F64BA84B26CA78D39B8"><enum>(2)</enum><header>Biodiesel and alternative fuels</header><text display-inline="yes-display-inline">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.</text> </paragraph><continuation-text continuation-text-level="subsection">For purposes of this subsection, the term <term>United States</term> includes any possession of the United States.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="H136A0FCBA65648AD9D332D3F29D93FD3"><enum>(2)</enum><header>Conforming amendment</header><text>Subsection (e) of section 6427 is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H0EA8359926B24E09A747C1210082FE9C" style="OLC"> <paragraph commented="no" id="HD647EA3A582340E48161FDE3FDEA3F75"><enum>(5)</enum><header>Limitation to fuels with connection to the United States</header><text>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).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="H80C204B3D4864F568011DD32F6B05AA"><enum>(d)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to claims for credit or payment made on or after May 15, 2008.</text> </subsection></section><section display-inline="no-display-inline" id="H07E05A959CB24567A24E40C857A8CBDE" section-type="subsequent-section"><enum>824.</enum><header>Credit for new qualified plug-in electric drive motor vehicles</header> <subsection id="H260D0944485E4B879E08CD979B833B29"><enum>(a)</enum><header>In general</header><text>Section 30 is amended to read as follows:</text> <quoted-block id="HBACEC1EBDA534B96B05CFFCAC9221666"> <section id="HDCB9735820B14B9DA98D45988D9D1EE"><enum>30.</enum><header>New qualified plug-in electric drive motor vehicles</header> <subsection id="H92F60A089953440194668C43BBEDD1B"><enum>(a)</enum><header>Allowance of credit</header><text>There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year.</text> </subsection><subsection id="H24C4B86293AD4187AA9B0092723051F1"><enum>(b)</enum><header>Per vehicle dollar limitation</header> <paragraph id="H9C5AF768ED224141ACC507C552748D93"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The amount determined under this subsection with respect to any new qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle.</text> </paragraph><paragraph id="HD26E7411C80E465EB082AB700DFD05F"><enum>(2)</enum><header>Base amount</header><text>The amount determined under this paragraph is $3,000.</text> </paragraph><paragraph id="HE9865BABB1744AC4B0C1D300FDFAD93F"><enum>(3)</enum><header>Battery capacity</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H80C0EDEC28A44E118EC9D8FE61F917C9"><enum>(c)</enum><header>Application with other credits</header> <paragraph commented="no" id="HE0C705E7120F4F96AB4E57620094366D"><enum>(1)</enum><header>Business credit treated as part of general business credit</header><text display-inline="yes-display-inline">So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).</text> </paragraph><paragraph id="H6149CC6217AB4B7DB2A444F3559B773"><enum>(2)</enum><header>Personal credit</header> <subparagraph id="H18685F5C3D3343609438FE0039EA45DF"><enum>(A)</enum><header>In general</header><text>For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.</text> </subparagraph><subparagraph id="H63BF520FC0B647F2B4DC388FAAB7EF39"><enum>(B)</enum><header>Limitation based on amount of tax</header><text>In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of—</text> <clause id="H40E3B9654AE142FEA5336D66B1FF768"><enum>(i)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text> </clause><clause id="H3C929F29E5B54CB184002B46718297D7"><enum>(ii)</enum><text>the sum of the credits allowable under subpart A (other than this section and sections 23 and 25D) and section 27 for the taxable year.</text> </clause></subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HDB9419D79CB7490F95595F14C7EF3B25"><enum>(d)</enum><header>New qualified plug-In electric drive motor vehicle</header><text>For purposes of this section—</text> <paragraph commented="no" display-inline="no-display-inline" id="H487144B06D50498F8F758651C9D67200"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>new qualified plug-in electric drive motor vehicle</term> means a motor vehicle—</text> <subparagraph id="HDED4C80A6FEB4C3AB5D2D1B24BE87D00"><enum>(A)</enum><text>the original use of which commences with the taxpayer,</text> </subparagraph><subparagraph id="H246B15D02AAA4EAA8F15E54B05449021"><enum>(B)</enum><text>which is acquired for use or lease by the taxpayer and not for resale,</text> </subparagraph><subparagraph id="H26EB0328A8C74BA195BEB336632616EF"><enum>(C)</enum><text>which is made by a manufacturer,</text> </subparagraph><subparagraph id="HC8E106340E774891BD36B18F2E786EFF"><enum>(D)</enum><text display-inline="yes-display-inline">which has a gross vehicle weight rating of less than 14,000 pounds,</text> </subparagraph><subparagraph id="HCBA62ACEA3714B2692439E61ABA1CE9D"><enum>(E)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph id="H5779E034667E4A3BBA38DBF620F347E0"><enum>(F)</enum><text>which is propelled to a significant extent by an electric motor which draws electricity from a battery which—</text> <clause id="HE57ACCE0EE9E41C6905DCF4B84F5D3CB"><enum>(i)</enum><text>has a capacity of not less than 4 kilowatt hours, and</text> </clause><clause id="H950A0E7235A743AB9529FFC048EC21D0"><enum>(ii)</enum><text>is capable of being recharged from an external source of electricity.</text> </clause></subparagraph></paragraph><paragraph id="H693753A066D4472D9DED03C939C32420"><enum>(2)</enum><header>Exception</header><text display-inline="yes-display-inline">The term <term>new qualified plug-in electric drive motor vehicle</term> 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.</text> </paragraph><paragraph id="HA3D09456838C4049B68D626539D73D39"><enum>(3)</enum><header>Motor vehicle</header><text>The term <quote>motor vehicle</quote> means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.</text> </paragraph><paragraph id="H8A37FE10742143608EE14B9774ADE8F3"><enum>(4)</enum><header>Other terms</header><text display-inline="yes-display-inline">The terms <term>passenger automobile</term>, <term>light truck</term>, and <term>manufacturer</term> have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).</text> </paragraph><paragraph id="HFE931161204548339C314C31EB1974CE"><enum>(5)</enum><header>Battery capacity</header><text display-inline="yes-display-inline">The term <term>capacity</term> means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HC6CD074313C14FA28E0974A59667E5E3"><enum>(e)</enum><header>Limitation on number of new qualified plug-In electric drive motor vehicles eligible for credit</header> <paragraph id="H5D2D78C4C1BD42E68BE3F449C5FE43"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H05C6A817FAD84718ABD9529693A5AC23"><enum>(2)</enum><header>Phaseout period</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H4D485A077D1C49C6B7A50000E8388606"><enum>(3)</enum><header>Applicable percentage</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the applicable percentage is—</text> <subparagraph id="H48D2B8CC32544E370014CD917FD1E6A"><enum>(A)</enum><text>50 percent for the first 2 calendar quarters of the phaseout period,</text> </subparagraph><subparagraph id="H64A5E5F1D0C1487597D0466FB3CDDEE"><enum>(B)</enum><text>25 percent for the 3d and 4th calendar quarters of the phaseout period, and</text> </subparagraph><subparagraph id="HF5B57EB9DF5545F59462D23EEB08207F"><enum>(C)</enum><text>0 percent for each calendar quarter thereafter.</text> </subparagraph></paragraph><paragraph id="H436FC05F601E43F7BC875C1FA3DCCEC3"><enum>(4)</enum><header>Controlled groups</header><text>Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HD002C95C544A4E42A1E31F3118775DA"><enum>(f)</enum><header>Special rules</header> <paragraph id="H88256D8AEFFF4219004F7C9BDBF1BA"><enum>(1)</enum><header>Basis reduction</header><text>The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (c)).</text> </paragraph><paragraph id="H15C52BA756694123B29EDAD02D029FD1"><enum>(2)</enum><header>Recapture</header><text>The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.</text> </paragraph><paragraph id="HB4B5930EC39E4FE7A89C4C2C546F1C24"><enum>(3)</enum><header>Property used outside United States, etc., not qualified</header><text>No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.</text> </paragraph><paragraph id="HC60B40EA19B7497CAEDBC67C00581B2F"><enum>(4)</enum><header>Election not to take credit</header><text>No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.</text> </paragraph><paragraph id="HF31CC10CAA414689A5BBD642B7D197D4"><enum>(5)</enum><header>Property used by tax-exempt entity; interaction with air quality and motor vehicle safety standards</header><text>Rules similar to the rules of paragraphs (6) and (10) of section 30B(h) shall apply for purposes of this section.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="HFB70C16C315049A1B5B2F4441EB1F45"><enum>(b)</enum><header>Coordination with alternative motor vehicle credit</header><text>Section 30B(d)(3) is amended by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H41C80310BD5646379498BE1C92E05C94" style="OLC"> <subparagraph id="H34FC965AB2534E4784AA6FE227732C85"><enum>(D)</enum><header>Exclusion of plug-in vehicles</header><text>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.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HBE8ABAA1C16F421785E4ECEF6E05CDA1"><enum>(c)</enum><header>Credit made part of general business credit</header><text display-inline="yes-display-inline">Section 38(b) is amended by striking <quote>plus</quote> at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting ‘‘, plus’’, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HA52822DD28C34509B9F106676CDAB602" style="OLC"> <paragraph commented="no" id="H63BFA54A67F240E39800E3D5EC6835CC"><enum>(34)</enum><text display-inline="yes-display-inline">the portion of the new qualified plug-in electric drive motor vehicle credit to which section 30(c)(1) applies.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="H9A435E95BCAE41A885877E683818C2A"><enum>(d)</enum><header>Conforming amendments</header> <paragraph id="H7D17F8C418E64F73BDB48F9D48C09CA3"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H0820E94D7C1643C6BB77C46D526841F4"><enum>(A)</enum><text>Section 24(b)(3)(B), as amended by section 804, is amended by striking <quote>and 25D</quote> and inserting <quote>25D, and 30</quote>.</text> </subparagraph><subparagraph id="H119269085CDC4989A83B95208F600713" indent="up1"><enum>(B)</enum><text>Section 25(e)(1)(C)(ii) is amended by inserting <quote>30,</quote> after <quote>25D,</quote>.</text> </subparagraph><subparagraph id="HADFDF459F46E42CE814FFC263255C35E" indent="up1"><enum>(C)</enum><text>Section 25B(g)(2), as amended by section 804, is amended by striking <quote>and 25D</quote> and inserting <quote>, 25D, and 30</quote>.</text> </subparagraph><subparagraph id="H2B3507FB7ADC4DEA9818A73999003700" indent="up1"><enum>(D)</enum><text>Section 26(a)(1), as amended by section 804, is amended by striking <quote>and 25D</quote> and inserting <quote>25D, and 30</quote>.</text> </subparagraph><subparagraph id="H5B0C75DBDFD640B5BA9C61ABDF837FD" indent="up1"><enum>(E)</enum><text>Section 1400C(d)(2) is amended by striking <quote>and 25D</quote> and inserting <quote>25D, and 30</quote>.</text> </subparagraph></paragraph><paragraph id="H6035FD020006497CB99C8EDAF876E98D"><enum>(2)</enum><text>Section 30B(h)(1) is amended by striking <quote>section 30(c)(2)</quote> and inserting <quote>section 30(d)(3)</quote>.</text> </paragraph><paragraph id="H780CA90812C641D9B435934F5479201D"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H3BE1C36CB2A647188494A9BA258845B4"><enum>(A)</enum><text>Section 53(d)(1)(B) is amended by striking clause (iii) and redesignating clause (iv) as clause (iii).</text> </subparagraph><subparagraph id="HC1FC071093A84E79A2FFE9F43DE30035" indent="up1"><enum>(B)</enum><text>Subclause (II) of section 53(d)(1)(B)(iii), as so redesignated, is amended by striking <quote>increased in the manner provided in clause (iii)</quote>.</text> </subparagraph></paragraph><paragraph id="H9B42E96D58A046868744520000C1281B"><enum>(4)</enum><text>Section 55(c)(3) is amended by striking <quote>30(b)(3),</quote>.</text> </paragraph><paragraph id="H3204EAD5C32C4D6B846CC834D2474766"><enum>(5)</enum><text>Section 1016(a)(25) is amended by striking <quote>section 30(d)(1)</quote> and inserting <quote>section 30(f)(1)</quote>.</text> </paragraph><paragraph id="HD62224C8C60D4EAB00838F33FA86E8C7"><enum>(6)</enum><text>Section 6501(m) is amended by striking <quote>section 30(d)(4)</quote> and inserting <quote>section 30(f)(4)</quote>.</text> </paragraph><paragraph id="H8881E21F0BBC44079EC4101570921596"><enum>(7)</enum><text>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:</text> <quoted-block id="H8098837E4C2D423380A2192191DAF07E" style="OLC"> <toc> <toc-entry level="section">Sec. 30. New qualified plug-in electric drive motor vehicles.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H26350F6EEFB44B8B9741173BC8C58E18"><enum>(e)</enum><header>Treatment of alternative motor vehicle credit as a personal credit</header> <paragraph id="HF6783AF9C0E941EA98033F8B9835E750"><enum>(1)</enum><header>In general</header><text>Paragraph (2) of section 30B(g) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H26EDC5E5AF9F47C799F1A1739257BCC1" style="OLC"> <paragraph id="H37AE6508137247CFB7AAB2EEFF8D3E82"><enum>(2)</enum><header>Personal credit</header><text display-inline="yes-display-inline">The credit allowed under subsection (a) for any taxable year (after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H49E945C6DF0C4D2492B3FB216F69535D"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="H5128413521BE4924B9EE0596C9610FF"><enum>(A)</enum><text display-inline="yes-display-inline">Subparagraph (A) of section 30C(d)(2) is amended by striking <quote>sections 27, 30, and 30B</quote> and inserting <quote>section 27</quote>.</text> </subparagraph><subparagraph id="H2803CE1EBD5A4B489992FF207D67ECC5"><enum>(B)</enum><text>Paragraph (3) of section 55(c) is amended by striking <quote>30B(g)(2),</quote>.</text> </subparagraph></paragraph></subsection><subsection id="H8E5CD437AB1D4A69B82252EA93ED2FEE"><enum>(f)</enum><header>Effective date</header> <paragraph id="HAC0A6974B4E445BBA93B64EF600A7B9"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2008.</text> </paragraph><paragraph id="H36FFEA54803545CEA268514D08301054"><enum>(2)</enum><header>Treatment of alternative motor vehicle credit as personal credit</header><text>The amendments made by subsection (e) shall apply to taxable years beginning after December 31, 2007.</text> </paragraph></subsection><subsection id="HD8CF9E7CC812466B88CA4F1FB553CD13"><enum>(g)</enum><header>Application of EGTRRA sunset</header><text>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.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H1D153662FF074FAE92C7AE360016F4C" section-type="subsequent-section"><enum>825.</enum><header>Exclusion from heavy truck tax for idling reduction units and advanced insulation</header> <subsection commented="no" display-inline="no-display-inline" id="HBD53E3CDF3EF474A8B91E66407356FA2"><enum>(a)</enum><header>In general</header><text>Section 4053 is amended by adding at the end the following new paragraphs:</text> <quoted-block display-inline="no-display-inline" id="H95F6AD771CF34CF9A92C978198182700" style="OLC"> <paragraph commented="no" id="H25617BF33C184222B19B24362EC2B0D4"><enum>(9)</enum><header>Idling reduction device</header><text>Any device or system of devices which—</text> <subparagraph commented="no" id="HFB99C748EC884E939E30E1AA503387D1"><enum>(A)</enum><text display-inline="yes-display-inline">is designed to provide to a vehicle those services (such as heat, air conditioning, or electricity) that would otherwise require the operation of the main drive engine while the vehicle is temporarily parked or remains stationary using one or more devices affixed to a tractor, and</text> </subparagraph><subparagraph commented="no" id="H1A1924DA3CDA45AFA70078727000CD25"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph commented="no" id="H4FE5F44C56A345E3A9169C81BA1929EF"><enum>(10)</enum><header>Advanced insulation</header><text>Any insulation that has an R value of not less than R35 per inch.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HC18571029EC64946A95471EC1FEFD336"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to sales or installations after the date of the enactment of this Act.</text> </subsection></section><section display-inline="no-display-inline" id="H3EBC90F7972B4FFA95FC10AF322D83D" section-type="subsequent-section"><enum>826.</enum><header>Restructuring of New York Liberty Zone tax credits</header> <subsection id="H4F4BE976DCB04665AB7D594FDC000029"><enum>(a)</enum><header>In general</header><text>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:</text> <quoted-block id="HE68D8DA534614B70A343FA8DCC3AE86" style="OLC"> <section id="HDF050EEA7E894AB0AE003C50295CA412"><enum>1400L.</enum><header>New York Liberty Zone tax credits</header> <subsection id="H13B03769CAAC4E0A94D501DD2D904599"><enum>(a)</enum><header>In general</header><text>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).</text> </subsection><subsection id="HA91562250C3B49768685D700D22164A0"><enum>(b)</enum><header>Qualifying project expenditure amount</header><text>For purposes of this section—</text> <paragraph id="H7C58E054BE7A4E3ABDE3D4CBA121195"><enum>(1)</enum><header>In general</header><text>The term <term>qualifying project expenditure amount</term> means, with respect to any calendar year, the sum of—</text> <subparagraph id="H6A1A971DAB4C41B1AD2F31FD3B7035A9"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="HC90F4DB42B9F42EDB928723CFBA53C3E"><enum>(B)</enum><text>any such expenditures—</text> <clause id="H69AFB9FE5ACC46DAA1BE07F39EC966D3"><enum>(i)</enum><text>paid or incurred in any preceding calendar year which begins after the date of enactment of this section, and</text> </clause><clause id="HAB7972E681D44514BB9F26E1C95B9BBA"><enum>(ii)</enum><text>not previously allocated under paragraph (3).</text> </clause></subparagraph></paragraph><paragraph id="HBE65A546C9C245A0BE955707751EB11B"><enum>(2)</enum><header>Qualifying project</header><text>The term <term>qualifying project</term> 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.</text> </paragraph><paragraph id="H153CBCF88ADF41EB8186A8C57D1D7435"><enum>(3)</enum><header>General allocation</header> <subparagraph id="H8DB0FA5370654548A24591BA98DC67DF"><enum>(A)</enum><header>In general</header><text>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.</text> </subparagraph><subparagraph id="H2DDFAA179B854D85A57900E6D54866E0"><enum>(B)</enum><header>Aggregate limit</header><text>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.</text> </subparagraph><subparagraph commented="no" id="H95B55BAA12A542149C42BAF1C51D725"><enum>(C)</enum><header>Annual limit</header><text>The aggregate amount which may be allocated under subparagraph (A) for any calendar year in the credit period shall not exceed the sum of—</text> <clause commented="no" id="HE6A8D785438942D989B47D1C716886B8"><enum>(i)</enum><text>$115,000,000 ($425,000,000 in the case of the last 2 years in the credit period), plus</text> </clause><clause commented="no" id="H14A935938D874813AFF0BD34D2B06143"><enum>(ii)</enum><text>the aggregate amount authorized to be allocated under this paragraph for all preceding calendar years in the credit period which was not so allocated.</text> </clause></subparagraph><subparagraph id="HF99A8C1CF54C4CB78FAD278850139830"><enum>(D)</enum><header>Unallocated amounts at end of credit period</header><text>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—</text> <clause id="H1D4560B7224E400E8356C7BEB81E73DE"><enum>(i)</enum><text>the lesser of—</text> <subclause id="H1923E67D638D4385B318913353DF1761"><enum>(I)</enum><text>such excess, or</text> </subclause><subclause id="HF54959BE0B3649428EB500AC9621A308"><enum>(II)</enum><text>the qualifying project expenditure amount for such calendar year, reduced by</text> </subclause></clause><clause id="HA4160B4D0D914E0D88A34F8BFC8749DA"><enum>(ii)</enum><text>the aggregate amount allocated under this subparagraph for all preceding calendar years.</text> </clause></subparagraph></paragraph><paragraph id="HDE5B29E8EA27465BAE62893B29BF77F1"><enum>(4)</enum><header>Allocation to payroll periods</header><text>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.</text> </paragraph></subsection><subsection id="H6B87E21897354D3F999E9900F8D96697"><enum>(c)</enum><header>Carryover of unused allocations</header> <paragraph id="H34E2532432F348EEB490F98D6EEDF9F6"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H2294384D5C20417A8D7133C05E49D96B"><enum>(2)</enum><header>Reallocation</header><text>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.</text> </paragraph></subsection><subsection id="HAF26FE2ADD324591939B003DDE87F76"><enum>(d)</enum><header>Definitions and special rules</header><text>For purposes of this section—</text> <paragraph id="H18725BBEA99147A1863F48775600B4CF"><enum>(1)</enum><header>Credit period</header><text>The term <term>credit period</term> means the 12-year period beginning on January 1, 2009.</text> </paragraph><paragraph id="H1EAB869476D442B0B5F53E02C8A72E16"><enum>(2)</enum><header>New York liberty zone governmental unit</header><text>The term <term>New York Liberty Zone governmental unit</term> means—</text> <subparagraph id="HCB3A626F91214B4CAFB1BDAA87B102E4"><enum>(A)</enum><text>the State of New York,</text> </subparagraph><subparagraph id="HA333684B7F4948EC8BC50062E87EC548"><enum>(B)</enum><text>the City of New York, New York, and</text> </subparagraph><subparagraph id="H07BD053CD64B44329CCDC1B4D0FEF7C0"><enum>(C)</enum><text>any agency or instrumentality of such State or City.</text> </subparagraph></paragraph><paragraph id="HE5FA2985B473487DACA9D97FFC1EEEC6"><enum>(3)</enum><header>Treatment of funds</header><text>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.</text> </paragraph><paragraph id="H0392F4F0AEA54C05AC4DBD32ABABDD4B"><enum>(4)</enum><header>Treatment of credit amounts for purposes of withholding taxes</header><text>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).</text> </paragraph></subsection><subsection id="HE2D885B9FF4A426A9FFADF8459FDE95"><enum>(e)</enum><header>Reporting</header><text>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—</text> <paragraph id="H417F3260AFFE4D76AEA69EBBF7692C5F"><enum>(1)</enum><text>which certifies—</text> <subparagraph id="H4134E774D9684F28002952ABFBC3E5B6"><enum>(A)</enum><text>the qualifying project expenditure amount for the calendar year, and</text> </subparagraph><subparagraph id="H6F538B83110843EC877D0013955CCFE5"><enum>(B)</enum><text>the amount allocated to each New York Liberty Zone governmental unit under subsection (b)(3) for the calendar year, and</text> </subparagraph></paragraph><paragraph id="HAC23B4AE18F84933AD90A199F5C72700"><enum>(2)</enum><text>includes such other information as the Secretary may require to carry out this section.</text> </paragraph></subsection><subsection id="H859D51A86AFB4FF6ADBFD4BCD42E9619"><enum>(f)</enum><header>Guidance</header><text>The Secretary may prescribe such guidance as may be necessary or appropriate to ensure compliance with the purposes of this section.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="H5346F99AF52F475092CD7DBA21A981E"><enum>(b)</enum><header>Termination of special allowance and expensing</header><text>Subparagraph (A) of section 1400K(b)(2), as redesignated by subsection (a), is amended by striking the parenthetical therein and inserting <quote>(in the case of nonresidential real property and residential rental property, the date of the enactment of the <short-title>Energy Tax Incentives Act of 2008</short-title> or, if acquired pursuant to a binding contract in effect on such enactment date, December 31, 2009)</quote>.</text> </subsection><subsection id="H80D841FE12A5408B95E32B5CBA410151"><enum>(c)</enum><header>Conforming amendments</header> <paragraph id="H79B919CE244D4EF78EC356B85CE8EF26"><enum>(1)</enum><text>Section 38(c)(3)(B) is amended by striking <quote>section 1400L(a)</quote> and inserting <quote>section 1400K(a)</quote>.</text> </paragraph><paragraph id="H7C9B2C97B744460BBA66E6DFA7AD6116"><enum>(2)</enum><text>Section 168(k)(2)(D)(ii) is amended by striking <quote>section 1400L(c)(2)</quote> and inserting <quote>section 1400K(c)(2)</quote>.</text> </paragraph><paragraph id="H4FCF1E193B8C4C29A192099071BD9738"><enum>(3)</enum><text>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:</text> <quoted-block display-inline="no-display-inline" id="HDA73D49891EB42EA837240A4569495C4" style="OLC"> <toc container-level="quoted-block-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry level="section">Sec. 1400L. New York Liberty Zone tax credits.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="HAB4C48F9E57C4258BCB17E45F75BE3FC"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the date of the enactment of this Act.</text> </subsection></section><section display-inline="no-display-inline" id="H83D3AA515B504485B0B321D0F212712F" section-type="subsequent-section"><enum>827.</enum><header>Transportation fringe benefit to bicycle commuters</header> <subsection id="H7B2601C4CF894F4CB4A7D90B3DF84D0"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of section 132(f) is amended by adding at the end the following:</text> <quoted-block id="HE8F8A3AAB4BC4A608B8C4808A1162FC0"> <subparagraph id="H257C70AF64054DDF9FA74162773B6B80"><enum>(D)</enum><text>Any qualified bicycle commuting reimbursement.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H887C78BD46A04AB18880F1BF7DBE662F"><enum>(b)</enum><header>Limitation on exclusion</header><text>Paragraph (2) of section 132(f) is amended by striking <quote>and</quote> at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HAD8AE9BF93FE4FC68EBA4D3423EE4D21" style="OLC"> <subparagraph id="H4EC0B9279DAF446ABC8FDEDE6F00A561"><enum>(C)</enum><text>the applicable annual limitation in the case of any qualified bicycle commuting reimbursement.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HF8E4933347BA4D6EBDDA60C5AB750212"><enum>(c)</enum><header>Definitions</header><text>Paragraph (5) of section 132(f) is amended by adding at the end the following:</text> <quoted-block id="HDDC43E14B5DE4711B11D67E246D92C54"> <subparagraph id="HA3A7D02728174B18B14C11CFE49258A1"><enum>(F)</enum><header>Definitions related to bicycle commuting reimbursement</header> <clause id="H9E4240E4D88C474581006936737E0377"><enum>(i)</enum><header>Qualified bicycle commuting reimbursement</header><text display-inline="yes-display-inline">The term <term>qualified bicycle commuting reimbursement</term> 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.</text> </clause><clause id="HEEA6174C93964FC800A700AB2536008D"><enum>(ii)</enum><header>Applicable annual limitation</header><text>The term <term>applicable annual limitation</term> 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.</text> </clause><clause id="H67B47B178D2B4D02BB82DC63CC286713"><enum>(iii)</enum><header>Qualified bicycle commuting month</header><text>The term <term>qualified bicycle commuting month</term> means, with respect to any employee, any month during which such employee—</text> <subclause id="HDBB5493CF1DC4BD794B74658756E0000"><enum>(I)</enum><text display-inline="yes-display-inline">regularly uses the bicycle for a substantial portion of the travel between the employee’s residence and place of employment, and</text> </subclause><subclause id="H67B8A07833564F9DA19300123566C886"><enum>(II)</enum><text display-inline="yes-display-inline">does not receive any benefit described in subparagraph (A), (B), or (C) of paragraph (1).</text> </subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H5E610B0B000140F49DA3155F4498D56"><enum>(d)</enum><header>Constructive receipt of benefit</header><text>Paragraph (4) of section 132(f) is amended by inserting <quote>(other than a qualified bicycle commuting reimbursement)</quote> after <quote>qualified transportation fringe</quote>.</text> </subsection><subsection id="H34CBC4DC23594A81AE4B84B9C5001D7D"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2008.</text> </subsection></section><section display-inline="no-display-inline" id="H37446D7B9B8C45BBA1C500E7B913A151" section-type="subsequent-section"><enum>828.</enum><header>Alternative fuel vehicle refueling property credit</header> <subsection id="H1F899227347A4FF2B0D4788C009287DE"><enum>(a)</enum><header>Increase in credit amount</header><text>Section 30C is amended—</text> <paragraph id="H1C128B9EAB2640AF00C4736218CEE282"><enum>(1)</enum><text>by striking <quote>30 percent</quote> in subsection (a) and inserting <quote>50 percent</quote>,</text> </paragraph><paragraph id="H0D9EA2C550B2459C8306558BC7C0F784"><enum>(2)</enum><text>by striking <quote>$30,000</quote> in subsection (b)(1) and inserting <quote>$50,000</quote>, and</text> </paragraph><paragraph id="H354C843EBC0640BC8C29E508FC1B2019"><enum>(3)</enum><text>by striking <quote>$1,000</quote> in subsection (b)(2) and inserting <quote>$2,000</quote>.</text> </paragraph></subsection><subsection id="HAF07218F34034105AD78AE8153A446AC"><enum>(b)</enum><header>Extension of credit</header><text>Subsection (g) of section 30C is amended—</text> <paragraph id="H784BD7EC520644B0B7FCE86CAB25098"><enum>(1)</enum><text>by redesignating paragraphs (1) and (2) as paragraphs (2) and (3) and inserting before paragraph (2) (as so redesignated) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H31F660B4AE9248C9BB926E067BB8B59" style="OLC"> <paragraph id="HF7B626F00D174FC090E4A9007058AA00"><enum>(1)</enum><text>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,</text> </paragraph><after-quoted-block>, and</after-quoted-block></quoted-block> </paragraph><paragraph id="H046142CF4FAA4FD6AD388FB0FA0B7A8"><enum>(2)</enum><text>by striking <quote>December 31, 2009</quote> in paragraph (3) (as so redesignated) and inserting <quote>December 31, 2010</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H74C01EBB94844105B4258964E8E05DF"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text> </subsection></section><section display-inline="no-display-inline" id="H0FCA32E89F2D4AECB2D641FCBBB73AB" section-type="subsequent-section"><enum>829.</enum><header>Energy security bonds</header> <subsection id="HC2B0904D5C55492DA86B9CA23D1F1B1D"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="H9BC84E862664408883A7CAB6CB6DC5D0" style="OLC"> <section id="H600BA2C2BF494E349BCC185C7E006E7B"><enum>54E.</enum><header>Energy security bonds</header> <subsection id="HE91DB3F96EAE4746BAA7AB95D7F8FC00"><enum>(a)</enum><header>Energy security bond</header><text display-inline="yes-display-inline">For purposes of this subchapter, the term <quote>energy security bond</quote> means any bond issued as part of an issue if—</text> <paragraph id="H08C09DF9C10F4C2AA9A268159E73DD24"><enum>(1)</enum><text>100 percent of the available project proceeds of such issue are to be used for qualified purposes,</text> </paragraph><paragraph id="H93684A3EC49C42B3AA00F9B83335F1C0"><enum>(2)</enum><text display-inline="yes-display-inline">the bond is issued by a qualified issuer,</text> </paragraph><paragraph id="H918EB5BE0ABC48A1A8AB8414E3E4EEDD"><enum>(3)</enum><text>the issuer designates such bond for purposes of this section, and</text> </paragraph><paragraph id="H050B5B966AB24FC4ACB18C94B62301BF"><enum>(4)</enum><text display-inline="yes-display-inline">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—</text> <subparagraph id="H266CB086C2984C96BB4CC9E87B008711"><enum>(A)</enum><text>to redeem bonds which are part of the issue, or</text> </subparagraph><subparagraph id="H5A0DA2EFC92848EDB554C3BFCD4262F0"><enum>(B)</enum><text>for any qualified purpose.</text> </subparagraph></paragraph><continuation-text continuation-text-level="subsection">For purposes of paragraph (4), the term <quote>applicable interest</quote> means so much of the interest on any loan as exceeds the amount payable at a 1 percent rate.</continuation-text></subsection><subsection id="H659CEC0D1B3843C8B2A1F1A87ECCDD3D"><enum>(b)</enum><header>Qualified purpose</header><text>For purposes of this section—</text> <paragraph id="H831E0E10C8F645AFB5D61DD151B9E36D"><enum>(1)</enum><header>In general</header><text>The term <quote>qualified purpose</quote> 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.</text> </paragraph><paragraph id="H0709415743CF44E593B115A0C19F5EEA"><enum>(2)</enum><header>Limitation on loans</header><text>Such term shall not include—</text> <subparagraph id="H5DF667606C204158A3CE62DA0963686D"><enum>(A)</enum><text>any loan of more than $200,000 for property located at any one retail motor fuel station, and</text> </subparagraph><subparagraph id="H7D3782E465EE48E5B6C693EA60C206D1"><enum>(B)</enum><text>any loan for more than 50 percent of the cost of such property and its installation.</text> </subparagraph></paragraph><paragraph id="HA96D8077C9F341B0A6B81CE039B88B1C"><enum>(3)</enum><header>Natural gas refueling property</header><text display-inline="yes-display-inline">The term <quote>natural gas refueling property</quote> 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.</text> </paragraph><paragraph id="H27C3F7400F6E48EBAD00D5A3729657DD"><enum>(4)</enum><header>Low-interest loan</header><text display-inline="yes-display-inline">The term <quote>low-interest loan</quote> 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.</text> </paragraph></subsection><subsection id="HEFED1A98C72A439A8921B6D88435227C"><enum>(c)</enum><header>Limitation on amount of bonds designated</header><text display-inline="yes-display-inline">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).</text> </subsection><subsection id="H169B0DF04B8C4618AD50964EA62E61EE"><enum>(d)</enum><header>National limitation on amount of bonds designated</header><text display-inline="yes-display-inline">There is a national energy security bond limitation of $1,750,000,000.</text> </subsection><subsection id="HA8EA2DAF23D34718B4D8CDC914D7458"><enum>(e)</enum><header>Allocation</header> <paragraph id="H0E869929CF244C2A98D28E5186D4E1ED"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H95D5D977A289441B8D3FA2DBAF6B8806"><enum>(2)</enum><header>Reservation for property in metropolitan area</header><text display-inline="yes-display-inline">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)).</text> </paragraph><paragraph id="H0C91C91D113D4137AACA40205C309515"><enum>(3)</enum><header>Percentage of stations receiving loans</header><text>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.</text> </paragraph></subsection><subsection id="H32B3F2C84CDB47A0B936566CF251BC1C"><enum>(f)</enum><header>Qualified issuer</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>qualified issuer</quote> means any State or any political subdivision or instrumentality thereof.</text> </subsection><subsection id="HD58D0E8B2F304796B37F77ED3461F15E"><enum>(g)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply with respect to any bond issued after December 31, 2017.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H46B0D204591F4DEAB86F5BDB457F46D4"><enum>(b)</enum><header>Coordination with refueling property credit</header><text>Subsection (e) of section 30C of such Code is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HD3613F279A52465E89C21BCAD0B39DFE" style="OLC"> <paragraph id="H47400ABA663D434695A37EF7917CB9"><enum>(6)</enum><header>Coordination with energy security bonds</header><text display-inline="yes-display-inline">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).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="H4E70E0A9E0314936BE28DD0A5B4A100"><enum>(c)</enum><header>Conforming amendments</header> <paragraph id="HAE2A4FC7BB534B52999DD479F929454"><enum>(1)</enum><text>Paragraph (1) of section 54A(d), as amended by sections 806 and 841, is amended by striking <quote>or</quote> at the end of subparagraph (B), by adding <quote>or</quote> at the end of subparagraph (C), and by inserting after subparagraph (C) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H7D356792C260448FB2B9E35BCB3F15EE" style="OLC"> <subparagraph id="H7D459AB2F09343BD87D955661970D6A2"><enum>(D)</enum><text>an energy security bond,</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HADD9AA7D8E264EF5BA81A0288EC000FC"><enum>(2)</enum><text>Subparagraph (C) of section 54A(d)(2), as amended by sections 806 and 841, is amended by striking <quote>and</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H4963BE4442C1449B9613711FC004B791" style="OLC"> <clause id="HBD4E7CF7296E4C8588DE1CA75803F1C5"><enum>(iv)</enum><text>in the case of an energy security bond, a purpose specified in section 54E(b).</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H0C445708F0FC407B8CEAE1A255FF3F10"><enum>(3)</enum><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="H7A369D92A88541A9B60030862293E7D2" style="OLC"> <toc container-level="quoted-block-container" idref="H9BC84E862664408883A7CAB6CB6DC5D0" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry idref="H600BA2C2BF494E349BCC185C7E006E7B" level="section">Sec. 54E. Energy security bonds.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H9668AE821B72446D9FC04FC13E88CD62"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to obligations issued after December 31, 2008.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="HD36092E139C04712A2F2D42998F5F4AA" section-type="subsequent-section"><enum>830.</enum><header display-inline="yes-display-inline">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</header> <subsection commented="no" display-inline="no-display-inline" id="HFFCF3D7012D649B99D81BEF4889513D6"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (E) of section 7704(d)(1) is amended by inserting <quote>, 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)</quote> after <quote>timber)</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H7D88E6570B4D491A87384F00D545FD78"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section></subtitle><subtitle id="H9EF8DAC16D2940679FAFB5E424E93875"><enum>C</enum><header>Energy conservation and efficiency provisions</header> <section id="H937928BEABB045B491BD38A0E2BF7CEF"><enum>841.</enum><header>Qualified energy conservation bonds</header> <subsection id="H630AD129F66E4EDEA575CD9D50E594CF"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="HF298AED6D6DD4852A3DA92B689B3E665" style="OLC"> <section display-inline="no-display-inline" id="H990539C208A5426F92AF1F018EB9C274" section-type="subsequent-section"><enum>54D.</enum><header>Qualified energy conservation bonds</header> <subsection id="H56E11C63C6E649B6A778D997CE74A991"><enum>(a)</enum><header>Qualified energy conservation bond</header><text>For purposes of this subchapter, the term <term>qualified energy conservation bond</term> means any bond issued as part of an issue if—</text> <paragraph display-inline="no-display-inline" id="H3256D60E90B143C68C8D922D27471C00"><enum>(1)</enum><text>100 percent of the available project proceeds of such issue are to be used for one or more qualified conservation purposes,</text> </paragraph><paragraph id="H7AC73AEDE94A496B9DEF86C4E1D40040"><enum>(2)</enum><text>the bond is issued by a State or local government, and</text> </paragraph><paragraph id="H0D1A5B13BCC3485391AE63D460EF03D5"><enum>(3)</enum><text>the issuer designates such bond for purposes of this section.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H417F97A8264644A7BED58004B7F95908"><enum>(b)</enum><header>Reduced credit amount</header><text>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.</text> </subsection><subsection display-inline="no-display-inline" id="HE4D4716A2E264D31832800673FD63BA"><enum>(c)</enum><header>Limitation on amount of bonds designated</header><text>The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated to such issuer under subsection (e).</text> </subsection><subsection id="H6B397F0AFF384C608CC37C497B31E557"><enum>(d)</enum><header>National limitation on amount of bonds designated</header><text>There is a national qualified energy conservation bond limitation of $2,625,000,000.</text> </subsection><subsection id="H89DECFC01B154F4AB9B232FF6628A567"><enum>(e)</enum><header>Allocations</header> <paragraph id="H80AB68E1E4DE4503A0930239A34447BB"><enum>(1)</enum><header>In general</header><text>The limitation applicable under subsection (d) shall be allocated by the Secretary among the States in proportion to the population of the States.</text> </paragraph><paragraph id="HF1BF4372BC334EC9A7EB0040CB907DC8"><enum>(2)</enum><header>Allocations to largest local governments</header> <subparagraph id="H6AC3D1FEF848478FA7E2681F255B8C76"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H6BCAC14E66534C45924DDC40383FBB13"><enum>(B)</enum><header>Allocation of unused limitation to State</header><text>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.</text> </subparagraph><subparagraph id="HBE5EE80285754165BD58F24EB2B9B495"><enum>(C)</enum><header>Large local government</header><text>For purposes of this section, the term <term>large local government</term> means any municipality or county if such municipality or county has a population of 100,000 or more.</text> </subparagraph></paragraph><paragraph id="H217D8F3C68DA41F989DFDF4B5DEA79E"><enum>(3)</enum><header>Allocation to issuers; restriction on private activity bonds</header><text>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.</text> </paragraph></subsection><subsection id="H30C8FFE6343D4809ADE42990A1C0906F"><enum>(f)</enum><header>Qualified conservation purpose</header><text>For purposes of this section—</text> <paragraph id="H76685CC7AF2A463F80278087C34709DE"><enum>(1)</enum><header>In general</header><text>The term <term>qualified conservation purpose</term> means any of the following:</text> <subparagraph id="H97263F50B4DD4BABBB5E75C6DEF3EABB"><enum>(A)</enum><text display-inline="yes-display-inline">Capital expenditures incurred for purposes of—</text> <clause id="H60051A7CF00644B5BE1EEED7757319F8"><enum>(i)</enum><text>reducing energy consumption in publicly-owned buildings by at least 20 percent,</text> </clause><clause id="HBD13FC816ADC4AA8BA6489621BA5F55B"><enum>(ii)</enum><text>implementing green community programs,</text> </clause><clause id="H177DCD0227604FB58FD53F8517E3CE3D"><enum>(iii)</enum><text>rural development involving the production of electricity from renewable energy resources, or</text> </clause><clause id="HC0A054F9F64D42C7A1C5675BD6CC804D"><enum>(iv)</enum><text>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).</text> </clause></subparagraph><subparagraph id="H40F76ABA67544515A4DA5EC348167377"><enum>(B)</enum><text>Expenditures with respect to research facilities, and research grants, to support research in—</text> <clause id="H2EE8F6B3AE014B9584C74100E6B1907E"><enum>(i)</enum><text>development of cellulosic ethanol or other nonfossil fuels,</text> </clause><clause id="H90F6CAEC63F74F990080EC39D776F871"><enum>(ii)</enum><text>technologies for the capture and sequestration of carbon dioxide produced through the use of fossil fuels,</text> </clause><clause id="H7FBEA76184044FFC8EF3159F1887073"><enum>(iii)</enum><text>increasing the efficiency of existing technologies for producing nonfossil fuels,</text> </clause><clause id="H514AF02F6DC1453D00812ED5F10408C5"><enum>(iv)</enum><text>automobile battery technologies and other technologies to reduce fossil fuel consumption in transportation, or</text> </clause><clause id="HE0731704707F4A3BADB5CAE41FC9D612"><enum>(v)</enum><text>technologies to reduce energy use in buildings.</text> </clause></subparagraph><subparagraph id="HCCBBC6B664544DA88B8BB8553DA11026"><enum>(C)</enum><text>Mass commuting facilities and related facilities that reduce the consumption of energy, including expenditures to reduce pollution from vehicles used for mass commuting.</text> </subparagraph><subparagraph id="H61A968842BA741D8B31582FE0000AD9"><enum>(D)</enum><text>Demonstration projects designed to promote the commercialization of—</text> <clause id="HA458B1CEA00D4B93BC76B405D056F1C7"><enum>(i)</enum><text>green building technology,</text> </clause><clause id="H5ACE7C10948F40F481A36B648194601B"><enum>(ii)</enum><text>conversion of agricultural waste for use in the production of fuel or otherwise,</text> </clause><clause id="H9EFDE9C0E6D14C8BA74F8B3597F73D31"><enum>(iii)</enum><text>advanced battery manufacturing technologies,</text> </clause><clause id="HD32581BB5D244677874F7ED8A4E453E6"><enum>(iv)</enum><text>technologies to reduce peak use of electricity, or</text> </clause><clause id="H14E920EC555F42309E9B16E9A2A250E0"><enum>(v)</enum><text>technologies for the capture and sequestration of carbon dioxide emitted from combusting fossil fuels in order to produce electricity.</text> </clause></subparagraph><subparagraph id="HAF654286B7E341929062572543609C8E"><enum>(E)</enum><text>Public education campaigns to promote energy efficiency.</text> </subparagraph></paragraph><paragraph id="HE21488D7C7994859B71F013EF44DE83D"><enum>(2)</enum><header>Special rules for private activity bonds</header><text>For purposes of this section, in the case of any private activity bond, the term <term>qualified conservation purposes</term> shall not include any expenditure which is not a capital expenditure.</text> </paragraph></subsection><subsection id="H913CA1CCC0D6444EB8F812CE42D9F565"><enum>(g)</enum><header>Population</header> <paragraph id="H9EC2CDC58D9C40BBA66FD411921CDAE"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H5A09D5C71C8641AF8B6FE7BD5C1D1FD3"><enum>(2)</enum><header>Special rule for counties</header><text>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.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HB174C6AD93E947AAAEBA472690F9A204"><enum>(h)</enum><header>Application to Indian tribal governments</header><text>An Indian tribal government shall be treated for purposes of this section in the same manner as a large local government, except that—</text> <paragraph id="HA7F6C7CFDC1F42C4A7FC92F46CBBC5C4"><enum>(1)</enum><text>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</text> </paragraph><paragraph id="H06B6720DC33641159E29FFE1FB71B0FA"><enum>(2)</enum><text>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.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H3C55F78640964643816889737E8C6274"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H813C253B5FE5422E9CDD12F3D181943D"><enum>(1)</enum><text>Paragraph (1) of section 54A(d), as amended by section 806, is amended by striking <quote>or</quote> at the end of subparagraph (A), by adding <quote>or</quote> at the end of subparagraph (B), and by inserting after subparagraph (B) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H98661C2BD2DE4F9083EF72A14D2B0081" style="OLC"> <subparagraph id="HEB9E893F54B64C8A84AC7BB29677168"><enum>(C)</enum><text>a qualified energy conservation bond,</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H2D41A33C18E2495E84204E8900E93C6C"><enum>(2)</enum><text>Subparagraph (C) of section 54A(d)(2), as amended by section 806, is amended by striking <quote>and</quote> at the end of clause (i), by striking the period at the end of clause (ii) and inserting <quote>and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="HDAAE0D1E31DC4928B6A9145C3660ADD1" style="OLC"> <clause id="H0EDDAABBF298429F81E5C3911FA86EBA"><enum>(iii)</enum><text>in the case of a qualified energy conservation bond, a purpose specified in section 54D(a)(1).</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H08528ACDBF84440A9EF364EAB9B213D4"><enum>(3)</enum><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="H83CDE220810F44AB89864851A4090597" style="OLC"> <toc container-level="quoted-block-container" idref="HF298AED6D6DD4852A3DA92B689B3E665" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry idref="H990539C208A5426F92AF1F018EB9C274" level="section">Sec. 54D. Qualified energy conservation bonds.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H268F6B19E09745B8A420F3D803BB58A7"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.</text> </subsection></section><section display-inline="no-display-inline" id="HF2CEAC9A5AC244B7BDC3F44B962011B" section-type="subsequent-section"><enum>842.</enum><header>Credit for nonbusiness energy property</header> <subsection commented="no" id="H1BF04BBA2ABF45BF9B7DE4141700974F"><enum>(a)</enum><header>Extension of credit</header><text display-inline="yes-display-inline">Section 25C(g) is amended by striking <quote>December 31, 2007</quote> and inserting <quote>December 31, 2008</quote>.</text> </subsection><subsection commented="no" id="HBBA6BB4750F34B7A912574A1DD989E8E"><enum>(b)</enum><header>Qualified biomass fuel property</header> <paragraph commented="no" id="HCE70C1FA1C264C95925CD517BA87F566"><enum>(1)</enum><header>In general</header><text>Section 25C(d)(3) is amended—</text> <subparagraph commented="no" id="HD4A117C323BD42F3B2D194EE3490000"><enum>(A)</enum><text>by striking <quote>and</quote> at the end of subparagraph (D),</text> </subparagraph><subparagraph commented="no" id="H26C450B34E1843C9BA58A39313EB8E78"><enum>(B)</enum><text>by striking the period at the end of subparagraph (E) and inserting <quote>, and</quote>, and</text> </subparagraph><subparagraph commented="no" id="HCEB3BC3283494420A883007F81DDFD4E"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block act-name="" id="HF6BBE61755E6427A8550E3D0BFE97B75" style="OLC"> <subparagraph commented="no" id="HE1A3C04F3BB843E0AA6736FEC7501E04"><enum>(F)</enum><text>a stove which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and which has a thermal efficiency rating of at least 75 percent.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" id="H37A513C2BC1B4D0D99A74FB5192D48F7"><enum>(2)</enum><header>Biomass fuel</header><text>Section 25C(d) is amended by adding at the end the following new paragraph:</text> <quoted-block act-name="" id="HDEBE24E96BB540DEBCEAE153568929C4" style="OLC"> <paragraph commented="no" id="HB98CD2CAF5914DE29EFE00F0AA797FD0"><enum>(6)</enum><header>Biomass fuel</header><text>The term <term>biomass fuel</term> means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H35A23326044742E38D87DAF5D35EF950"><enum>(c)</enum><header>Coordination with credit for qualified geothermal heat Pump property expenditures</header> <paragraph id="HAE851708005C493790251DA4BD79E41E"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H3A34939DB8BF4599BB55E12200BFA956"><enum>(2)</enum><header>Conforming amendment</header><text>Subparagraph (C) of section 25C(d)(2) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HAC9319E26B9A4F6DAB3D67338C7B304E" style="OLC"> <subparagraph id="H5E9A6BEF52FA40A685BD70C5BCFB7C2F"><enum>(C)</enum><header>Requirements and standards for air conditioners and heat pumps</header><text display-inline="yes-display-inline">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—</text> <clause id="H62B12A5A196B4860B400957266CE92AA"><enum>(i)</enum><text>shall require measurements to be based on published data which is tested by manufacturers at 95 degrees Fahrenheit, and</text> </clause><clause id="HA0FE0857F7E947F1A0000022F3C71B1"><enum>(ii)</enum><text>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.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H5C1ECA94B6394B0B0076C46FB6DF1E28"><enum>(d)</enum><header>Effective date</header><text>The amendments made this section shall apply to expenditures made after December 31, 2007.</text> </subsection></section><section display-inline="no-display-inline" id="H4C4182DE5361417DA927FC941DAE543F" section-type="subsequent-section"><enum>843.</enum><header>Energy efficient commercial buildings deduction</header><text display-inline="no-display-inline">Subsection (h) of section 179D is amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2013</quote>.</text> </section><section display-inline="no-display-inline" id="HF5B4E535A4D74410B000576704B6F4ED" section-type="subsequent-section"><enum>844.</enum><header>Modifications of energy efficient appliance credit for appliances produced after 2007</header> <subsection id="H982A61542AA045DA9827D432F51C064"><enum>(a)</enum><header>In general</header><text>Subsection (b) of section 45M is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HCD1FEDD530E544AEB829832253E45800" style="OLC"> <subsection id="H6FAE7CAEE72C4CAEA78DC50052C6F612"><enum>(b)</enum><header>Applicable amount</header><text>For purposes of subsection (a)—</text> <paragraph id="H25C2C6235275456BA9EE0004EE890054"><enum>(1)</enum><header>Dishwashers</header><text>The applicable amount is—</text> <subparagraph id="H1DE0A2113A2045A6804BAF6DCD19303"><enum>(A)</enum><text>$45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no more than 324 kilowatt hours per year and 5.8 gallons per cycle, and</text> </subparagraph><subparagraph id="HD00C8ECF714147168D47E5D201F85ED5"><enum>(B)</enum><text>$75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings).</text> </subparagraph></paragraph><paragraph id="HFFC7780ED2A3408A00A568DE928B6B00"><enum>(2)</enum><header>Clothes washers</header><text>The applicable amount is—</text> <subparagraph id="H40F2397B3DF34B19AD2547DF5C00043D"><enum>(A)</enum><text>$75 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor,</text> </subparagraph><subparagraph id="H486D2A7C7B3140C9BB65AC6B57C1F422"><enum>(B)</enum><text>$125 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water consumption factor,</text> </subparagraph><subparagraph id="H05710DE4EF10406181A7AA0884AEA11F"><enum>(C)</enum><text>$150 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0 water consumption factor, and</text> </subparagraph><subparagraph id="HD377EE982E3B44FF99621DDEE85C026"><enum>(D)</enum><text>$250 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5 water consumption factor.</text> </subparagraph></paragraph><paragraph id="HB834486C61BD4A9E87693E838EDFCC6C"><enum>(3)</enum><header>Refrigerators</header><text>The applicable amount is—</text> <subparagraph id="HC01A6F917513480100D9EB1C04E792D"><enum>(A)</enum><text>$50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours per year than the 2001 energy conservation standards,</text> </subparagraph><subparagraph id="H6DA6EA00FBB9479D00F9D0E922003523"><enum>(B)</enum><text>$75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation standards,</text> </subparagraph><subparagraph id="H4A3F835A884242FFA78CF68E61CC3163"><enum>(C)</enum><text>$100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010, and consumes at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation standards, and</text> </subparagraph><subparagraph id="H9DA04ACA1E8947AFB91FEB145F35E9BB"><enum>(D)</enum><text>$200 in the case of a refrigerator manufactured in calendar year 2008, 2009, or 2010 and which consumes at least 30 percent less energy than the 2001 energy conservation standards.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HA13330A5E9984DF3B68400FBF37B0087"><enum>(b)</enum><header>Eligible production</header> <paragraph id="H5ACFE91C0EBC4AB9B7D0D0EB1B53F729"><enum>(1)</enum><header>Similar treatment for all appliances</header><text>Subsection (c) of section 45M is amended—</text> <subparagraph id="H6F86D994D157432785960918CCF69C00"><enum>(A)</enum><text>by striking paragraph (2),</text> </subparagraph><subparagraph id="H20D5F0B6212246258694589B4C658E9C"><enum>(B)</enum><text>by striking <quote>(1) <header-in-text level="paragraph" style="OLC">In general</header-in-text></quote> and all that follows through <quote>the eligible</quote> and inserting <quote>The eligible</quote>,</text> </subparagraph><subparagraph id="H43F21FB26CFD4BF1946C2D72302DF5FB"><enum>(C)</enum><text>by moving the text of such subsection in line with the subsection heading, and</text> </subparagraph><subparagraph id="HB8172125216341139512A1B9762094DA"><enum>(D)</enum><text>by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and by moving such paragraphs 2 ems to the left.</text> </subparagraph></paragraph><paragraph id="HA67350783A3946459DAB0BF80F670C7"><enum>(2)</enum><header>Modification of base period</header><text>Paragraph (2) of section 45M(c), as amended by paragraph (1), is amended by striking <quote>3-calendar year</quote> and inserting <quote>2-calendar year</quote>.</text> </paragraph></subsection><subsection id="HBC268BA91316495E88BCE8E9DA05800"><enum>(c)</enum><header>Types of energy efficient appliances</header><text>Subsection (d) of section 45M (defining types of energy efficient appliances) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HFA1B5FDAFEF14D03B4CCFDB2F018A3B2" style="OLC"> <subsection id="HA7ED442527F54D469FFD224D54D81756"><enum>(d)</enum><header>Types of energy efficient appliance</header><text display-inline="yes-display-inline">For purposes of this section, the types of energy efficient appliances are—</text> <paragraph id="HF0F1BA41859D412FAB48C839A797B3B7"><enum>(1)</enum><text>dishwashers described in subsection (b)(1),</text> </paragraph><paragraph id="HF13E483E750C491D9269B7F3B667C88F"><enum>(2)</enum><text>clothes washers described in subsection (b)(2), and</text> </paragraph><paragraph id="H260B5047CB94421500F345BA4319C8A7"><enum>(3)</enum><text>refrigerators described in subsection (b)(3).</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H9557932838BE4096BB35F7CEBEF64F1B"><enum>(d)</enum><header>Aggregate credit amount allowed</header> <paragraph id="H48C0BB407D354DC0A4AFF30024596729"><enum>(1)</enum><header>Increase in limit</header><text>Paragraph (1) of section 45M(e) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H901752E41F344E34B572AD6700E8DEEF" style="OLC"> <paragraph id="H18C3939DE32F4F52A38535972F6764DD"><enum>(1)</enum><header>Aggregate credit amount allowed</header><text display-inline="yes-display-inline">The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $75,000,000 reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for all prior taxable years beginning after December 31, 2007.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H70A1370E06E5453CA41257AC6FF701B5"><enum>(2)</enum><header>Exception for certain refrigerator and clothes washers</header><text>Paragraph (2) of section 45M(e) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H4F0B971799D140160014AE8E74554E25" style="OLC"> <paragraph id="HAC2536E62A684EC5849B3C8D7EE4E713"><enum>(2)</enum><header>Amount allowed for certain refrigerators and clothes washers</header><text display-inline="yes-display-inline">Refrigerators described in subsection (b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be taken into account under paragraph (1).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H2CDA6A2E9A584B979E47FE2F6EF6E69D"><enum>(e)</enum><header>Qualified energy efficient appliances</header> <paragraph id="HE0B2589A4DC7480E89A0B1BDEB008B00"><enum>(1)</enum><header>In general</header><text>Paragraph (1) of section 45M(f) (defining qualified energy efficient appliance) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HEC23EF0CC63C4849B5C10065400000A8" style="OLC"> <paragraph id="H076507887BFD4EC996A836717B638683"><enum>(1)</enum><header>Qualified energy efficient appliance</header><text display-inline="yes-display-inline">The term <term>qualified energy efficient appliance</term> means—</text> <subparagraph id="H9E6DA2186813437B83A5CE72D62F78F2"><enum>(A)</enum><text display-inline="yes-display-inline">any dishwasher described in subsection (b)(1),</text> </subparagraph><subparagraph id="HCE12E03D7259432B8CCB8FD71287EA4"><enum>(B)</enum><text>any clothes washer described in subsection (b)(2), and</text> </subparagraph><subparagraph id="HCDB8DACBD40B4A1FB93B0055F1CAF53C"><enum>(C)</enum><text>any refrigerator described in subsection (b)(3).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H118FC520423940B59DB3108498C35462"><enum>(2)</enum><header>Clothes washer</header><text>Section 45M(f)(3) is amended by inserting <quote>commercial</quote> before <quote>residential</quote> the second place it appears.</text> </paragraph><paragraph id="HD0EE35D29DC146838E2105B11CF2B1CD"><enum>(3)</enum><header>Top-loading clothes washer</header><text>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:</text> <quoted-block display-inline="no-display-inline" id="H8E18662A7B8F4759A5F74B44DB77AF2C" style="OLC"> <paragraph id="H492476D9E2DD43BEAC7B50DBB9CDFC6F"><enum>(4)</enum><header>Top-loading clothes washer</header><text display-inline="yes-display-inline">The term <quote>top-loading clothes washer</quote> means a clothes washer which has the clothes container compartment access located on the top of the machine and which operates on a vertical axis.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H08ACA43715E0499092F173985DD145CD"><enum>(4)</enum><header>Replacement of energy factor</header><text>Section 45M(f)(6), as redesignated by paragraph (3), is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H17B064179D2B470188264F8833B97812" style="OLC"> <paragraph id="H528E481FD76E47B6A0C84156C1DAEB4F"><enum>(6)</enum><header>Modified energy factor</header><text display-inline="yes-display-inline">The term <term>modified energy factor</term> means the modified energy factor established by the Department of Energy for compliance with the Federal energy conservation standard.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HC0895E04AC644283BD15CE211629DA11"><enum>(5)</enum><header>Gallons per cycle; water consumption factor</header><text>Section 45M(f), as amended by paragraph (3), is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H5BAA4FCB2046486AA559003E3374CB3F" style="OLC"> <paragraph id="H9ABA6E54D6E540F5B4CA308352BDFB93"><enum>(9)</enum><header>Gallons per cycle</header><text display-inline="yes-display-inline">The term <term>gallons per cycle</term> means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a dishwasher.</text> </paragraph><paragraph id="H31456D2CE0C3464D94BAC80097BD14"><enum>(10)</enum><header>Water consumption factor</header><text display-inline="yes-display-inline">The term <term>water consumption factor</term> means, with respect to a clothes washer, the quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H00359CFCB6A4492986CF45BC8B30FC00"><enum>(f)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to appliances produced after December 31, 2007.</text> </subsection></section><section display-inline="no-display-inline" id="H728BB2E4E5E245B5AFF8735F4F38601B" section-type="subsequent-section"><enum>845.</enum><header>Accelerated recovery period for depreciation of smart meters and smart grid systems</header> <subsection id="H9025BDB11A8D4074A054E86B31A72616"><enum>(a)</enum><header>In general</header><text>Section 168(e)(3)(D) is amended by striking <quote>and</quote> at the end of clause (i), by striking the period at the end of clause (ii) and inserting a comma, and by inserting after clause (ii) the following new clauses:</text> <quoted-block id="H11C92F36DFDA489182534016FDF424E7" style="OLC"> <clause id="H2F0CE889FDEC4647891EF40192E343AC"><enum>(iii)</enum><text>any qualified smart electric meter, and</text> </clause><clause id="HAE2D639E52B646F891A004E4FE0281DF"><enum>(iv)</enum><text>any qualified smart electric grid system.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE8CA8EA019E3412C8521EE4D10398EB0"><enum>(b)</enum><header>Definitions</header><text>Section 168(i) is amended by inserting at the end the following new paragraph:</text> <quoted-block id="H14FF092A40204577AF6DB9F504DEB1C6" style="OLC"> <paragraph display-inline="no-display-inline" id="HB17AEB1F0EBE4C33B4A4478000191CD"><enum>(18)</enum><header>Qualified smart electric meters</header> <subparagraph id="HCAB9E870D341492AB62778DE9DE2AA00"><enum>(A)</enum><header>In general</header><text>The term <term>qualified smart electric meter</term> 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.</text> </subparagraph><subparagraph id="H9E1D44B99CBB491491D692655F99434"><enum>(B)</enum><header>Smart electric meter</header><text>For purposes of subparagraph (A), the term <term>smart electric meter</term> means any time-based meter and related communication equipment which is capable of being used by the taxpayer as part of a system that—</text> <clause id="H67DA68F15C81464CB8FFE00CFA9AFCB"><enum>(i)</enum><text>measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day,</text> </clause><clause id="H9FB6DE2C95F14D4BB131A04792EFE166"><enum>(ii)</enum><text>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,</text> </clause><clause id="HFD0C7CE3810C4073B7A1EDF662F3EAB4"><enum>(iii)</enum><text>provides data to such supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, and</text> </clause><clause id="H10FCD4781447481F003FB85FA9195499"><enum>(iv)</enum><text>provides net metering.</text> </clause></subparagraph></paragraph><paragraph id="H34CE3BCCB32345D8BAAEFFFFA6E8C99"><enum>(19)</enum><header>Qualified smart electric grid systems</header> <subparagraph id="H9FDF554FABE442798380067B5F37FFCB"><enum>(A)</enum><header>In general</header><text>The term <quote>qualified smart electric grid system</quote> 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.</text> </subparagraph><subparagraph id="H7E94FB8DF0574DD881023F37C8A7CE23"><enum>(B)</enum><header>Smart grid property</header><text>For the purposes of subparagraph (A), the term <quote>smart grid property</quote> means electronics and related equipment that is capable of—</text> <clause id="HFC0128588C6844B7BE2B81EF909D8BC"><enum>(i)</enum><text>sensing, collecting, and monitoring data of or from all portions of a utility’s electric distribution grid,</text> </clause><clause id="H5F000011326740A29C6E16D9E18BCDB"><enum>(ii)</enum><text>providing real-time, two-way communications to monitor or manage such grid, and</text> </clause><clause id="HD92473F28F76482DB95C73809C579D09"><enum>(iii)</enum><text>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.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE5B507CEE9D74645974D2B09018E3581"><enum>(c)</enum><header>Continued application of 150 percent declining balance method</header><text>Paragraph (2) of section 168(b) is amended by striking <quote>or</quote> at the end of subparagraph (B), by redesignating subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H309C8FCE9FBE46600089C93CDADF34F" style="OLC"> <subparagraph id="H567235EEB4FE455093EBE90095C09E00"><enum>(C)</enum><text display-inline="yes-display-inline">any property (other than property described in paragraph (3)) which is a qualified smart electric meter or qualified smart electric grid system, or</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H44AB623FF59245C99993A6A7964C492C"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><section id="H736A2ACCDBE44CBDA98BA1E04628A4CD"><enum>846.</enum><header>Qualified green building and sustainable design projects</header> <subsection id="H4402160CB3B140F7A840AD1091A495BA"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (8) of section 142(l) is amended by striking <quote>September 30, 2009</quote> and inserting <quote>September 30, 2012</quote>.</text> </subsection><subsection id="HD13F2624FB914C96A1B9648152C4A3D2"><enum>(b)</enum><header>Treatment of current refunding bonds</header><text>Paragraph (9) of section 142(l) is amended by striking <quote>October 1, 2009</quote> and inserting <quote>October 1, 2012</quote>.</text> </subsection><subsection id="HE2BFF3AD5E314392B2093E888B49C0F9"><enum>(c)</enum><header>Accountability</header><text>The second sentence of section 701(d) of the American Jobs Creation Act of 2004 is amended by striking <quote>issuance,</quote> and inserting <quote>issuance of the last issue with respect to such project,</quote>.</text> </subsection></section></subtitle><subtitle id="H239E1564C37842F29C3CBAF19D656371"><enum>D</enum><header>Revenue Provisions</header> <section display-inline="no-display-inline" id="HFA7D48DAC3184F99AEAF249218A401C" section-type="subsequent-section"><enum>851.</enum><header>Limitation of deduction for income attributable to domestic production of oil, gas, or primary products thereof</header> <subsection id="H915D39B944854A469C3554447C534689"><enum>(a)</enum><header>Denial of deduction for specified oil companies for income attributable to domestic production of oil, gas, or primary products thereof</header><text>Subparagraph (B) of section 199(c)(4) (relating to exceptions) is amended by striking <quote>or</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, or</quote>, and by inserting after clause (iii) the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H8D9353274FF542AEABC7F5A77BA68D1C" style="OLC"> <clause commented="no" display-inline="no-display-inline" id="H344CDAC2ADE446E19DB3AC1EC8D641E"><enum>(iv)</enum><text display-inline="yes-display-inline">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.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HDCFE46FCDF1F4012ADB0E2C5FF38200"><enum>(b)</enum><header>Limitation on oil related qualified production activities income for taxpayers other than specified oil companies</header> <paragraph id="H4EEE2B0B8CAC457E91D4164E347CC6C"><enum>(1)</enum><header>In general</header><text>Section 199(d) is amended by redesignating paragraph (9) as paragraph (10) and by inserting after paragraph (8) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H4BB23C6927634FA1A9BF97B05BDF7C3E" style="OLC"> <paragraph id="H2EC08237C8F442C68F68DA86393E00C"><enum>(9)</enum><header>Special rule for taxpayers with oil related qualified production activities income</header> <subparagraph id="H526C5EA8D66F49980038E2A35089419"><enum>(A)</enum><header>In general</header><text>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—</text> <clause id="H9369280EEE144C7FB0974F26E000A072"><enum>(i)</enum><text>the oil related qualified production activities income of the taxpayer for the taxable year,</text> </clause><clause id="H8924B287BDAF422400DFF2F0A0FFEC38"><enum>(ii)</enum><text>the qualified production activities income of the taxpayer for the taxable year, or</text> </clause><clause id="HDECEA192D1FA4FE9A0ECF121ADFB9051"><enum>(iii)</enum><text>taxable income (determined without regard to this section).</text> </clause></subparagraph><subparagraph id="H7F15AC77EBBE4837A4426DEFB2711C00"><enum>(B)</enum><header>Oil related qualified production activities income</header><text>For purposes of this section, the term <term>oil related qualified production activities income</term> 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.</text> </subparagraph><subparagraph id="HCD86C2BDDA64447D00DDAB667C1EAFA8"><enum>(C)</enum><header>Specified oil company</header><text>For purposes of this section, the term <quote>specified oil company</quote> means—</text> <clause id="HA2347B4677424E31A250CD8644E9A8F2"><enum>(i)</enum><text>any major integrated oil company (as defined in section 167(h)(5)(B)), and</text> </clause><clause id="HEB369303D2AA4BEFB438261B2454A0B9"><enum>(ii)</enum><text>any entity in which a foreign government holds (directly or indirectly)—</text> <subclause id="HB1D4DC8CBC5846D6B479C5CDE4D1349"><enum>(I)</enum><text>any interest which (by value or voting interest) is 50 percent or more of the total of such interests in such entity, or</text> </subclause><subclause id="H42BDB674C44842EEABF1A8C0748D1877"><enum>(II)</enum><text>any other interest which provides the foreign government with effective control of such entity.</text> </subclause></clause></subparagraph><subparagraph id="H0613B18DA5984EF28B9610AE3E562BA1"><enum>(D)</enum><header>Primary product</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>primary product</term> has the same meaning as when used in section 927(a)(2)(C), as in effect before its repeal.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H77F7DBB1463445D88C9911A860F1FA14"><enum>(2)</enum><header>Conforming amendment</header><text>Section 199(d)(2) (relating to application to individuals) is amended by striking <quote>subsection (a)(1)(B)</quote> and inserting <quote>subsections (a)(1)(B) and (d)(9)(A)(iii)</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8D00C611E2624FCE876DAA338F596120"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2008.</text> </subsection></section><section display-inline="no-display-inline" id="H20165B08A80A432FB47B125DBE81DF5E" section-type="subsequent-section"><enum>852.</enum><header>Clarification of determination of foreign oil and gas extraction income</header> <subsection id="HB01F94B9D0CD4DABA320A8FEB337197B"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of section 907(c) is amended by redesignating subparagraph (B) as subparagraph (C), by striking <quote>or</quote> at the end of subparagraph (A), and by inserting after subparagraph (A) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H73950EFB47B042769D9D244B24B4B519" style="OLC"> <subparagraph id="HC03F05FA52DC4DF5ACD850B06291FBC"><enum>(B)</enum><text>so much of any transportation of such minerals as occurs before the fair market value event, or</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H2F44A9AD432D4F7DA27BB381A25C670"><enum>(b)</enum><header>Fair market value event</header><text>Subsection (c) of section 907 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HA533BAE54580453D85399F00ECF112E7" style="OLC"> <paragraph id="H91E88D065E3640CDBC97F5FEBFDB5465"><enum>(6)</enum><header>Fair market value event</header><text>For purposes of this section, the term <term>fair market value event</term> means, with respect to any mineral, the first point in time at which such mineral—</text> <subparagraph id="H0A5E46AB32A7465689C9BA7FD761496C"><enum>(A)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph id="H12F2D884602A4DAC9ED6D6A29B28A499"><enum>(B)</enum><text>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).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H04911E470FFD4DAF91CCCF343B86FF9"><enum>(c)</enum><header>Special rule for certain petroleum taxes</header><text>Subsection (c) of section 907, as amended by subsection (b), is amended to by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HF21B2CE1A8F54EA0AC80B4F5B1548E41" style="OLC"> <paragraph id="H721708DF723344B7AFD7F90726643C91"><enum>(7)</enum><header>Oil and gas taxes</header><text>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—</text> <subparagraph id="H17868FFF05A146418F3849D034497D81"><enum>(A)</enum><text>the term <term>oil and gas extraction taxes</term> shall include such tax,</text> </subparagraph><subparagraph id="H708D246278EE4C898F75220700B3E71C"><enum>(B)</enum><text>the term <term>foreign oil and gas extraction income</term> 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</text> </subparagraph><subparagraph id="H1EF56D40DE874A6EA6C636AB163DA778"><enum>(C)</enum><text>the term <term>foreign oil related income</term> shall not include any taxable income which is treated as foreign oil and gas extraction income under subparagraph (B).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HF4B7207855AD40C6AB675356435EE111"><enum>(d)</enum><header>Conforming amendments</header> <paragraph id="H808DA10215874BB9B4DC3CA7D25CE716"><enum>(1)</enum><text>Subparagraph (C) of section 907(c)(1), as redesignated by this section, is amended by inserting <quote>or used by the taxpayer in the activity described in subparagraph (B)</quote> before the period at the end.</text> </paragraph><paragraph id="H3AF73495E61F46B396A4896B536364EB"><enum>(2)</enum><text>Subparagraph (B) of section 907(c)(2) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H2DDAB61ACBC44EFFBC6016BADC6F596" style="OLC"> <subparagraph id="HE163F2EEAB5647B285B50601BA94A038"><enum>(B)</enum><text>so much of the transportation of such minerals or primary products as is not taken into account under paragraph (1)(B),</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="H5AB04F94CD064184B1D5514E66E1EB44"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="HB402C443E10645C8A0904F293D94362E"><enum>853.</enum><header>Time for payment of corporate estimated taxes</header><text display-inline="no-display-inline">In the case of a corporation—</text> <paragraph id="HF17D642CCE5D4EA1A6B31B2E59CA1BD3"><enum>(1)</enum><text>to which paragraph (1) of section 401 of the Tax Increase Prevention and Reconciliation Act of 2005 applies, and</text> </paragraph><paragraph id="H10D3B6E6D1D64BAA9BE97EC36489BF5"><enum>(2)</enum><text>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,</text> </paragraph></section><appropriations-major id="LEXA-Repairid2526FD5636B945FEBD673A6C60EC8669"><subsection id="LEXA-RepairidC6634FB5353D4BEFAEE3F27AE83D1603"><enum></enum><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection></appropriations-major></subtitle> Passed the House of Representatives September 16, 2008. Lorraine C. Miller, Clerk. November 18, 2008 Read the second time and placed on the calendar