[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7239 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7239

   To reduce gasoline prices, to lessen the dependence of the United 
States on foreign oil, to strengthen the economy of the United States, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 29, 2008

Mr. Udall of Colorado introduced the following bill; which was referred 
    to the Committee on Energy and Commerce, and in addition to the 
  Committees on Agriculture, Ways and Means, Science and Technology, 
Oversight and Government Reform, Transportation and Infrastructure, and 
 Natural Resources, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To reduce gasoline prices, to lessen the dependence of the United 
States on foreign oil, to strengthen the economy of the United States, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Energy, 
American Innovation Act of 2008''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
        TITLE I--SHORT-TERM RELIEF FOR AMERICAN ENERGY CONSUMERS

                   Subtitle A--Consumer Energy Supply

Sec. 101. Definitions.
Sec. 102. Sale and replacement of oil from the strategic petroleum 
                            reserve.
     Subtitle B--Commodity Markets Transparency and Accountability

Sec. 111. Definition of energy commodity.
Sec. 112. Speculative limits and transparency of off-shore trading.
Sec. 113. Disaggregation of index funds and other data in energy and 
                            agriculture markets.
Sec. 114. Detailed reporting from index traders and swap dealers.
Sec. 115. Transparency and recordkeeping authorities.
Sec. 116. Trading limits to prevent excessive speculation.
Sec. 117. Modifications to core principles applicable to position 
                            limits for contracts in agricultural and 
                            energy commodities.
Sec. 118. CFTC administration.
Sec. 119. Review of prior actions.
Sec. 120. Review of over-the-counter markets.
Sec. 121. Studies; reports.
Sec. 122. Over-the-counter authority.
Sec. 123. Expedited process.
          TITLE II--NATIONAL COMMISSION ON ENERGY INDEPENDENCE

Sec. 201. Establishment of Commission.
Sec. 202. Purpose.
Sec. 203. Composition of Commission.
Sec. 204. Functions of Commission.
Sec. 205. Powers of Commission.
Sec. 206. Reports.
Sec. 207. Staff of Commission.
Sec. 208. Compensation and travel expenses.
Sec. 209. Meetings.
Sec. 210. Authorization of appropriations.
     TITLE III--ESTABLISH A NATIONAL RENEWABLE ELECTRICITY STANDARD

Sec. 301. National renewable electricity standard.
     TITLE IV--APOLLO PROJECT FOR CONVERSION OF MOTOR VEHICLES TO 
                           ALTERNATIVE FUELS

Sec. 401. Sense of Senate on conversion of motor vehicles to 
                            alternative fuels and energy independence.
Sec. 402. Consumer tax credits for advanced vehicles.
Sec. 403. Research and development program for alternative fuel vehicle 
                            technologies.
Sec. 404. Federal fleet requirements.
             TITLE V--ENHANCED CONSERVATION AND EFFICIENCY

       Subtitle A--Enhancing Efficiency of Conventional Vehicles

                     Part I--Fuel Economy Standards

Sec. 501. Increase corporate fuel economy standards.
Sec. 502. More realistic determination of fuel efficiency standards.
Sec. 503. Fuel efficiency standards revisions.
Sec. 504. Automobile safety.
                       Part II--Other Provisions

Sec. 511. Lightweight materials research and development.
Sec. 512. Federal Government gasoline consumption.
Sec. 513. Credit for fuel-efficient motor vehicles.
Sec. 514. Exclusion from heavy truck tax for idling reduction units and 
                            advanced insulation.
Sec. 515. Idling reduction tax credit.
Sec. 516. Determination of certification standards by Secretary of 
                            Energy for certifying idling reduction 
                            devices.
Sec. 517. Extension and modification of alternative motor vehicle 
                            credit.
               Subtitle B--Alternative Fuels and Biofuels

                       Part I--General Provisions

Sec. 521. Bioenergy research and development.
Sec. 522. Alternative fueled automobile production requirement.
Sec. 523. Definition of renewable biomass.
Sec. 524. Loan guarantees for renewable energy pipelines.
                        Part II--Tax Provisions

Sec. 530. Reference.
Sec. 531. Expansion of special allowance to cellulosic biomass alcohol 
                            fuel plant property.
Sec. 532. Credit for producers of fossil free alcohol.
Sec. 533. Extension and modification of credit for biodiesel used as 
                            fuel.
Sec. 534. Extension and modification of alternative fuel credit.
Sec. 535. Extension of suspension of taxable income limit on percentage 
                            depletion for oil and natural gas produced 
                            from marginal properties.
Sec. 536. Extension and modification of election to expense certain 
                            refineries.
Sec. 537. Hydrogen installation, infrastructure, and fuel costs.
Sec. 538. Alternative fuel vehicle refueling property credit.
Sec. 539. 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--Other Provisions

                       Part I--General Provisions

Sec. 541. Energy efficiency and conservation block grants.
Sec. 542. Weatherization assistance program for low-income persons.
Sec. 543. Renewable energy workforce.
                        Part II--Tax Provisions

Sec. 550. Reference.
                 subpart a--renewable energy incentives

Sec. 551. Renewable energy credit.
Sec. 552. Production credit for electricity produced from marine 
                            renewables.
Sec. 553. Energy credit.
Sec. 554. Credit for residential energy efficient property.
Sec. 555. Special rule to implement FERC and State electric 
                            restructuring policy.
Sec. 556. New clean renewable energy bonds.
                subpart b--carbon mitigation provisions

Sec. 561. Expansion and modification of advanced coal project 
                            investment credit.
Sec. 562. Expansion and modification of coal gasification investment 
                            credit.
Sec. 563. Temporary increase in coal excise tax.
Sec. 564. Special rules for refund of the coal excise tax to certain 
                            coal producers and exporters.
Sec. 565. Carbon audit of the tax code.
             subpart c--energy conservation and efficiency

Sec. 571. Qualified energy conservation bonds.
Sec. 572. Credit for nonbusiness energy property.
Sec. 573. Energy efficient commercial buildings deduction.
Sec. 574. Modifications of energy efficient appliance credit for 
                            appliances produced after 2007.
Sec. 575. Accelerated recovery period for depreciation of smart meters 
                            and smart grid systems.
Sec. 576. Qualified green building and sustainable design projects.
                    subpart d--geothermal incentives

Sec. 581. Energy credit for geothermal heat pump systems.
Sec. 582. 3-year accelerated depreciation period for geothermal heat 
                            pump systems.
                TITLE VI--INCREASED DOMESTIC PRODUCTION

                  Subtitle A--Outer Continental Shelf

Sec. 601. Prohibition on leasing.
Sec. 602. Opening of certain areas to oil and gas leasing.
Sec. 603. Coastal State roles and responsibilities.
Sec. 604. Protection of the environment and conservation of the natural 
                            resources of the Outer Continental Shelf.
Sec. 605. Limitations.
Sec. 606. Prohibition on leasing in certain Federal protected areas.
Sec. 607. No effect on applicable law.
Sec. 608. Buy American requirements.
Sec. 609. Small, woman-owned, and minority-owned businesses.
Sec. 610. OCS joint permitting offices.
Sec. 611. Definitions.
             Subtitle B--Drill Responsibly in Leased Lands

Sec. 621. Issuance of new leases.
Sec. 622. Fair return on production of Federal oil and gas resources.
            Subtitle C--Coal Innovation Direct Loan Program

Sec. 631. Coal innovation direct loan program.
                       Subtitle D--Nuclear Power

Sec. 641. Nuclear Regulatory Commission.
Sec. 642. Nuclear energy workforce.
Sec. 643. Interagency working group to promote domestic manufacturing 
                            base for nuclear components and equipment.
                   Subtitle E--Carbon Sequestrations

Sec. 651. Tax credit for carbon dioxide sequestration.
                           TITLE VII--OFFSETS

Sec. 700. Reference.
                 Subtitle A--Ending Unneeded Tax Breaks

Sec. 701. Limitation of deduction for income attributable to domestic 
                            production of oil, gas, or primary products 
                            thereof.
Sec. 702. 7-year amortization of geological and geophysical 
                            expenditures for certain major integrated 
                            oil companies.
Sec. 703. Clarification of determination of foreign oil and gas 
                            extraction income.
Sec. 704. Clarification of eligibility for renewable diesel credit.
Sec. 705. Clarification that credits for fuel are designed to provide 
                            an incentive for United States production.
               Subtitle B--Additional Revenue Provisions

Sec. 711. Nonqualified deferred compensation from certain tax 
                            indifferent parties.
Sec. 712. Delay in application of worldwide allocation of interest.
Sec. 713. Time for payment of corporate estimated taxes.

        TITLE I--SHORT-TERM RELIEF FOR AMERICAN ENERGY CONSUMERS

                   Subtitle A--Consumer Energy Supply

SEC. 101. DEFINITIONS.

    In this subtitle--
            (1) the term ``light grade petroleum'' means crude oil with 
        an API gravity of 30 degrees or higher;
            (2) the term ``heavy grade petroleum'' means crude oil with 
        an API gravity of 26 degrees or lower; and
            (3) the term ``Secretary'' means the Secretary of Energy.

SEC. 102. SALE AND REPLACEMENT OF OIL FROM THE STRATEGIC PETROLEUM 
              RESERVE.

    (a) Initial Petroleum Sale and Replacement.--Notwithstanding 
section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), 
the Secretary shall publish a plan not later than 15 days after the 
date of enactment of this Act to--
            (1) sell, in the amounts and on the schedule described in 
        subsection (b), light grade petroleum from the Strategic 
        Petroleum Reserve and acquire an equivalent volume of heavy 
        grade petroleum;
            (2) deposit the cash proceeds from sales under paragraph 
        (1) into the SPR Petroleum Account established under section 
        167 of the Energy Policy and Conservation Act (42 U.S.C. 6247); 
        and
            (3) from the cash proceeds deposited pursuant to paragraph 
        (2), withdraw the amount necessary to pay for the direct 
        administrative and operational costs of the sale and 
        acquisition.
    (b) Amounts and Schedule.--The sale and acquisition described in 
subsection (a) shall require the offer for sale of a total quantity of 
70,000,000 barrels of light grade petroleum from the Strategic 
Petroleum Reserve. The sale shall commence, whether or not a plan has 
been published under subsection (a), not later than 30 days after the 
date of enactment of this Act and be completed no more than 6 months 
after the date of enactment of this Act, with at least 20,000,000 
barrels to be offered for sale within the first 60 days after the date 
of enactment of this Act. In no event shall the Secretary sell barrels 
of oil under subsection (a) that would result in a Strategic Petroleum 
Reserve that contains fewer than 90 percent of the total amount of 
barrels in the Strategic Petroleum Reserve as of the date of enactment 
of this Act. Heavy grade petroleum, to replace the quantities of light 
grade petroleum sold under this section, shall be obtained through 
acquisitions which--
            (1) shall commence no sooner than 6 months after the date 
        of enactment of this Act;
            (2) shall be completed, at the discretion of the Secretary, 
        not later than 5 years after the date of enactment of this Act;
            (3) shall be carried out in a manner so as to maximize the 
        monetary value to the Federal Government; and
            (4) shall be acquired using the receipts from the sale of 
        light petroleum authorized under this section.
    (c) Deferrals.--The Secretary is encouraged to, when economically 
beneficial and practical, grant requests to defer scheduled deliveries 
of petroleum to the Reserve under subsection (a) if the deferral will 
result in a premium paid in additional barrels of oil which will reduce 
the cost of oil acquisition and increase the volume of oil delivered to 
the Reserve or yield additional cash bonuses.

     Subtitle B--Commodity Markets Transparency and Accountability

SEC. 111. DEFINITION OF ENERGY COMMODITY.

    (a) Definition of Energy Commodity.--Section 1a of the Commodity 
Exchange Act (7 U.S.C. 1a) is amended--
            (1) by redesignating paragraphs (13) through (34) as 
        paragraphs (14) through (35), respectively; and
            (2) by inserting after paragraph (12) the following:
            ``(13) Energy commodity.--The term `energy commodity' 
        means--
                    ``(A) coal;
                    ``(B) crude oil, gasoline, diesel fuel, jet fuel, 
                heating oil, and propane;
                    ``(C) electricity;
                    ``(D) natural gas; and
                    ``(E) any other substance that is used as a source 
                of energy, as the Commission, in its discretion, deems 
                appropriate.''.
    (b) Conforming Amendments.--
            (1) Section 2(c)(2)(B)(i)(II)(cc) of the Commodity Exchange 
        Act (7 U.S.C. 2(c)(2)(B)(i)(II)(cc)) is amended--
                    (A) in subitem (AA), by striking ``section 1a(20)'' 
                and inserting ``section 1a(21)''; and
                    (B) in subitem (BB), by striking ``section 1a(20)'' 
                and inserting ``section 1a(21)''.
            (2) Section 13106(b)(1) of the Food, Conservation, and 
        Energy Act of 2008 is amended by striking ``section 1a(32)'' 
        and inserting ``section 1a''.
            (3) Section 402 of the Legal Certainty for Bank Products 
        Act of 2000 (7 U.S.C. 27) is amended--
                    (A) in subsection (a)(7), by striking ``section 
                1a(20)'' and inserting ``section 1a''; and
                    (B) in subsection (d)--
                            (i) in paragraph (1)(B), by striking 
                        ``section 1a(33)'' and inserting ``section 
                        1a''; and
                            (ii) in paragraph (2)(D), by striking 
                        ``section 1a(13)'' and inserting ``section 
                        1a''.

SEC. 112. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF-SHORE TRADING.

    (a) In General.--Section 4 of the Commodity Exchange Act (7 U.S.C. 
6) is amended by adding at the end the following:
    ``(e) Foreign Boards of Trade.--
            ``(1) In general.--The Commission may not permit a foreign 
        board of trade to provide to the members of the foreign board 
        of trade or other participants located in the United States 
        direct access to the electronic trading and order matching 
        system of the foreign board of trade with respect to an 
        agreement, contract, or transaction in an energy or 
        agricultural commodity that settles against any price 
        (including the daily or final settlement price) of 1 or more 
        contracts listed for trading on a registered entity, unless--
                    ``(A) the foreign board of trade makes public daily 
                trading information regarding the agreement, contract, 
                or transaction that is comparable to the daily trading 
                information published by the registered entity for the 
                1 or more contracts against which the agreement, 
                contract, or transaction traded on the foreign board of 
                trade settles; and
                    ``(B) the foreign board of trade (or the foreign 
                futures authority that oversees the foreign board of 
                trade)--
                            ``(i) adopts position limits (including 
                        related hedge exemption provisions) for the 
                        agreement, contract, or transaction that are 
                        comparable, taking into consideration the 
                        relative sizes of the respective markets, to 
                        the position limits (including related hedge 
                        exemption provisions) adopted by the registered 
                        entity for the 1 or more contracts against 
                        which the agreement, contract, or transaction 
                        traded on the foreign board of trade settles;
                            ``(ii) has the authority to require or 
                        direct market participants to limit, reduce, or 
                        liquidate any position the foreign board of 
                        trade (or the foreign futures authority that 
                        oversees the foreign board of trade) determines 
                        to be necessary to prevent or reduce the threat 
                        of price manipulation, excessive speculation as 
                        described in section 4a, price distortion, or 
                        disruption of delivery or the cash settlement 
                        process;
                            ``(iii) agrees to promptly notify the 
                        Commission of any change regarding--
                                    ``(I) the information that the 
                                foreign board of trade will make 
                                publicly available;
                                    ``(II) the position limits that the 
                                foreign board of trade or foreign 
                                futures authority will adopt and 
                                enforce;
                                    ``(III) the position reductions 
                                required to prevent manipulation, 
                                excessive speculation as described in 
                                section 4a, price distortion, or 
                                disruption of delivery or the cash 
                                settlement process; and
                                    ``(IV) any other area of interest 
                                expressed by the Commission to the 
                                foreign board of trade or foreign 
                                futures authority;
                            ``(iv) provides information to the 
                        Commission regarding large trader positions in 
                        the agreement, contract, or transaction that is 
                        comparable to the large trader position 
                        information collected by the Commission for the 
                        1 or more contracts against which the 
                        agreement, contract, or transaction traded on 
                        the foreign board of trade settles; and
                            ``(v) provides the Commission with 
                        information necessary to publish reports on 
                        aggregate trader positions for the agreement, 
                        contract, or transaction traded on the foreign 
                        board of trade that are comparable to such 
                        reports for 1 or more contracts against which 
                        the agreement, contract, or transaction traded 
                        on the foreign board of trade settles.
            ``(2) Existing foreign boards of trade.--Paragraph (1) 
        shall not be effective with respect to any agreement, contract, 
        or transaction in an energy commodity executed on a foreign 
        board of trade to which the Commission had granted direct 
        access permission before the date of the enactment of this 
        subsection until the date that is 180 days after such date of 
        enactment.''.
    (b) Liability of Registered Persons Trading on a Foreign Board of 
Trade.--
            (1) Section 4(a) of such Act (7 U.S.C. 6(a)) is amended by 
        inserting ``or by subsection (f)'' after ``Unless exempted by 
        the Commission pursuant to subsection (c)''.
            (2) Section 4 of such Act (7 U.S.C. 6) is further amended 
        by adding at the end the following:
    ``(f) A person registered with the Commission, or exempt from 
registration by the Commission, under this Act may not be found to have 
violated subsection (a) with respect to a transaction in, or in 
connection with, a contract of sale of a commodity for future delivery 
if the person has reason to believe the transaction and the contract is 
made on or subject to the rules of a board of trade that is legally 
organized under the laws of a foreign country, authorized to act as a 
board of trade by a foreign futures authority, subject to regulation by 
the foreign futures authority, and has not been determined by the 
Commission to be operating in violation of subsection (a).''.
    (c) Contract Enforcement for Foreign Futures Contracts.--Section 
22(a) of such Act (7 U.S.C. 25(a)) is amended by adding at the end the 
following:
            ``(5) A contract of sale of a commodity for future delivery 
        traded or executed on or through the facilities of a board of 
        trade, exchange, or market located outside the United States 
        for purposes of section 4(a) shall not be void, voidable, or 
        unenforceable, and a party to such a contract shall not be 
        entitled to rescind or recover any payment made with respect to 
        the contract, based on the failure of the foreign board of 
        trade to comply with any provision of this Act.''.

SEC. 113. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN ENERGY AND 
              AGRICULTURE MARKETS.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by 
section 112 of this Act, is amended by adding at the end the following:
    ``(g) Disaggregation of Index Funds and Other Data in Energy and 
Agriculture Markets.--Subject to section 8 and beginning within 30 days 
of the issuance of the final rule required by section 4h, the 
Commission shall disaggregate and make public weekly--
            ``(1) the number of positions and total value of index 
        funds and other passive, long-only and short-only positions (as 
        defined by the Commission) in all energy and agricultural 
        markets to the extent such information is available; and
            ``(2) data on speculative positions relative to bona fide 
        physical hedgers in those markets to the extent such 
        information is available.''.

SEC. 114. DETAILED REPORTING FROM INDEX TRADERS AND SWAP DEALERS.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by 
sections 112 and 113 of this Act, is amended by adding at the end the 
following:
    ``(h) Index Traders and Swap Dealers Reporting.--The Commission 
shall issue a proposed rule defining and classifying index traders and 
swap dealers (as those terms are defined by the Commission) for 
purposes of data reporting requirements and setting routine detailed 
reporting requirements for such entities in designated contract 
markets, derivatives transaction execution facilities, foreign boards 
of trade subject to section 4(e), and electronic trading facilities 
with respect to significant price discovery contracts with respect to 
exempt and agricultural commodities not later than 60 days after the 
date of the enactment of this subsection, and issue a final rule within 
120 days after such date of enactment.''.

SEC. 115. TRANSPARENCY AND RECORDKEEPING AUTHORITIES.

    (a) In General.--Section 4g(a) of the Commodity Exchange Act (7 
U.S.C. 6g(a)) is amended--
            (1) by inserting ``a'' before ``futures commission 
        merchant''; and
            (2) by inserting ``and transactions and positions traded 
        pursuant to subsection (g), (h)(1), or (h)(2) of section 2, or 
        any exemption issued by the Commission by rule, regulation or 
        order,'' after ``United States or elsewhere,''.
    (b) Reports of Deals Equal to or in Excess of Trading Limits.--
Section 4i of such Act (7 U.S.C. 6i) is amended--
            (1) in the first sentence--
                    (A) by inserting ``(a)'' before ``It shall''; and
                    (B) by inserting ``in the United States or 
                elsewhere, and of transactions and positions in any 
                such commodity entered into pursuant to subsection (g), 
                (h)(1), or (h)(2) of section 2, or any exemption issued 
                by the Commission by rule, regulation or order'' before 
                ``, and of cash or spot''; and
            (2) by striking all that follows the 1st sentence and 
        inserting the following:
    ``(b) With respect to agricultural and energy commodities, upon 
special call by the Commission, any person shall provide to the 
Commission, in a form and manner and within the period specified in the 
special call, books and records of all transactions and positions 
traded on or subject to the rules of any board of trade or electronic 
trading facility in the United States or elsewhere, or pursuant to 
subsection (g), (h)(1), or (h)(2) of section 2, or any exemption issued 
by the Commission by rule, regulation, or order, as the Commission may 
determine appropriate to deter and prevent price manipulation or any 
other disruption to market integrity or to diminish, eliminate, or 
prevent excessive speculation as described in section 4a(a).
    ``(c) Such books and records described in subsections (a) and (b) 
shall show complete details concerning all such transactions, 
positions, inventories, and commitments, including the names and 
addresses of all persons having any interest therein, shall be kept for 
a period of 5 years, and shall be open at all times to inspection by 
any representative of the Commission or the Department of Justice. For 
the purposes of this section, the futures and cash or spot transactions 
and positions of any person shall include such transactions and 
positions of any persons directly or indirectly controlled by the 
person.''.
    (c) Conforming Amendments.--
            (1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended--
                    (A) by inserting ``4g(a), 4i,'' before ``5a (to''; 
                and
                    (B) by inserting ``, and the regulations of the 
                Commission pursuant to section 4c(b) requiring 
                reporting in connection with commodity option 
                transactions,'' before ``shall apply''.
            (2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is 
        amended to read as follows:
                    ``(A) sections 4g(a), 4i, 5b, and 12(e)(2)(B), and 
                the regulations of the Commission pursuant to section 
                4c(b) requiring reporting in connection with commodity 
                option transactions;''.

SEC. 116. TRADING LIMITS TO PREVENT EXCESSIVE SPECULATION.

    Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``(a)''; and
                    (B) by adding after and below the end the 
                following:
            ``(2) In accordance with the standards set forth in 
        paragraph (1) of this subsection and consistent with the good 
        faith exception cited in subsection (b)(2), with respect to 
        agricultural commodities enumerated in section 1a(4) and energy 
        commodities, the Commission, within 60 days after the date of 
        the enactment of this paragraph, shall by rule, regulation, or 
        order establish limits on the amount of positions that may be 
        held by any person with respect to contracts of sale for future 
        delivery or with respect to options on such contracts or 
        commodities traded on or subject to the rules of a contract 
        market or derivatives transaction execution facility, or on an 
        electronic trading facility as a significant price discovery 
        contract.
            ``(3) In establishing the limits required in paragraph (2), 
        the Commission shall set limits--
                    ``(A) on the number of positions that may be held 
                by any person for the spot month, each other month, and 
                the aggregate number of positions that may be held by 
                any person for all months;
                    ``(B) to the maximum extent practicable, in its 
                discretion--
                            ``(i) to diminish, eliminate, or prevent 
                        excessive speculation as described under this 
                        section;
                            ``(ii) to deter and prevent market 
                        manipulation, squeezes, and corners;
                            ``(iii) to ensure sufficient market 
                        liquidity for bona fide hedgers; and
                            ``(iv) to ensure that the price discovery 
                        function of the underlying market is not 
                        disrupted; and
                    ``(C) to the maximum extent practicable, in its 
                discretion, take into account the total number of 
                positions in fungible agreements, contracts, or 
                transactions that a person can hold in agricultural and 
                energy commodities in other markets.
            ``(4)(A) Not later than 150 days after the date of the 
        enactment of this paragraph, the Commission shall convene a 
        Position Limit Agricultural Advisory Group and a Position Limit 
        Energy Group, each group consisting of representatives from--
                    ``(i) 5 predominantly commercial short hedgers of 
                the actual physical commodity for future delivery;
                    ``(ii) 5 predominantly commercial long hedgers of 
                the actual physical commodity for future delivery;
                    ``(iii) 4 noncommercial participants in markets for 
                commodities for future delivery; and
                    ``(iv) each designated contract market or 
                derivatives transaction execution facility upon which a 
                contract in the commodity for future delivery is 
                traded, and each electronic trading facility that has a 
                significant price discovery contract in the commodity.
            ``(B) Not later than 60 days after the date on which the 
        advisory groups are convened under subparagraph (A), and 
        annually thereafter, the advisory groups shall submit to the 
        Commission advisory recommendations regarding the position 
        limits to be established in paragraph (2) and a recommendation 
        as to whether the position limits should be administered 
        directly by the Commission, or by the registered entity on 
        which the commodity is listed (with enforcement by both the 
        registered entity and the Commission).''; and
            (2) in subsection (c)--
                    (A) by inserting ``(1)'' after ``(c)''; and
                    (B) by adding after and below the end the 
                following:
            ``(2) With respect to agricultural and energy commodities, 
        for the purposes of contracts of sale for future delivery and 
        options on such contracts or commodities, a bona fide hedging 
        transaction or position is a transaction or position that--
                    ``(A)(i) represents a substitute for transactions 
                to be made or positions to be taken at a later time in 
                a physical marketing channel;
                    ``(ii) is economically appropriate to the reduction 
                of risks in the conduct and management of a commercial 
                enterprise; and
                    ``(iii) arises from the potential change in the 
                value of--
                            ``(I) assets that a person owns, produces, 
                        manufactures, processes, or merchandises or 
                        anticipates owning, producing, manufacturing, 
                        processing, or merchandising;
                            ``(II) liabilities that a person owns or 
                        anticipates incurring; or
                            ``(III) services that a person provides, 
                        purchases, or anticipates providing or 
                        purchasing; or
                    ``(B) reduces risks attendant to a position 
                resulting from a transaction that--
                            ``(i) was executed pursuant to subsection 
                        (g), (h)(1), or (h)(2) of section 2, or an 
                        exemption issued by the Commission by rule, 
                        regulation or order; and
                            ``(ii) was executed opposite a counterparty 
                        for which the transaction would qualify as a 
                        bona fide hedging transaction pursuant to 
                        paragraph (2)(A) of this subsection.''.

SEC. 117. MODIFICATIONS TO CORE PRINCIPLES APPLICABLE TO POSITION 
              LIMITS FOR CONTRACTS IN AGRICULTURAL AND ENERGY 
              COMMODITIES.

    (a) Contracts Traded on Contract Markets.--Section 5(d)(5) of the 
Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended by striking all 
that follows ``adopt'' and inserting ``, for speculators, position 
limitations with respect to agricultural commodities enumerated in 
section 1a(4) or energy commodities, and position limitations or 
position accountability with respect to other commodities, where 
necessary and appropriate.''.
    (b) Contracts Traded on Derivatives Transaction Execution 
Facilities.--Section 5a(d)(4) of such Act (7 U.S.C. 7a(d)(4)) is 
amended by striking all that follows ``adopt'' and inserting ``, for 
speculators, position limitations with respect to energy commodities, 
and position limitations or position accountability with respect to 
other commodities, where necessary and appropriate for a contract, 
agreement or transaction with an underlying commodity that has a 
physically deliverable supply.''.
    (c) Significant Price Discovery Contracts.--Section 
2(h)(7)(C)(ii)(IV) of such Act (7 U.S.C. 2(h)(7)(C)(ii)(IV)) is amended 
by striking ``where necessary'' and all that follows through ``in 
significant price discovery contracts'' and inserting ``for 
speculators, position limitations with respect to significant price 
discovery contracts in energy commodities, and position limitations or 
position accountability with respect to significant price discovery 
contracts in other commodities''.

SEC. 118. CFTC ADMINISTRATION.

    (a) Additional Commodity Futures Trading Commission Employees for 
Improved Enforcement.--Section 2(a)(7) of the Commodity Exchange Act (7 
U.S.C. 2(a)(7)) is amended by adding at the end the following:
                    ``(D) Additional employees.--As soon as practicable 
                after the date of the enactment of this subparagraph, 
                subject to appropriations, the Commission shall appoint 
                at least 100 full-time employees (in addition to the 
                employees employed by the Commission as of the date of 
                the enactment of this subparagraph)--
                            ``(i) to increase the public transparency 
                        of operations in agriculture and energy 
                        markets;
                            ``(ii) to improve the enforcement of this 
                        Act in those markets; and
                            ``(iii) to carry out such other duties as 
                        are prescribed by the Commission.''.
    (b) Inspector General of Commodity Futures Trading Commission.--
            (1) Elevation of office.--
                    (A) Inclusion of cftc in definition of 
                establishment.--Section 11(2) of the Inspector General 
                Act of 1878 (5 U.S.C. App.) is amended by striking ``or 
                the Export-Import Bank,'' and inserting ``, the Export-
                Import Bank, or the Commodity Futures Trading 
                Commission,''.
                    (B) Exclusion of cftc from definition of designated 
                federal entity.--Section 8G(a)(2) of such Act (5 U.S.C. 
                App.) is amended by striking ``the Commodity Futures 
                Trading Commission,''.
            (2) Transition.--Until such time as the Inspector General 
        of the Commodity Futures Trading Commission is appointed in 
        accordance with section 3 of the Inspector General Act of 1978, 
        the Office of Inspector General of the Commission shall 
        continue in effect as provided in such Act before the date of 
        the enactment of this Act.

SEC. 119. REVIEW OF PRIOR ACTIONS.

    Notwithstanding any provision of the Commodity Exchange Act, the 
Commodity Futures Trading Commission shall review, as appropriate, all 
regulations, rules, exemptions, exclusions, guidance, no action 
letters, orders, other actions taken by or on behalf of the Commission, 
and any action taken pursuant to the Commodity Exchange Act by an 
exchange, self-regulatory organization, or any other registered entity, 
that are currently in effect, to ensure that such prior actions are in 
compliance with the provisions of this title.

SEC. 120. REVIEW OF OVER-THE-COUNTER MARKETS.

    (a) Study.--The Commodity Futures Trading Commission shall conduct 
a study--
            (1) to determine the efficacy, practicality, and 
        consequences of establishing position limits for agreements, 
        contracts, or transactions conducted in reliance on sections 
        2(g) and 2(h) of the Commodity Exchange Act and of any 
        exemption issued by the Commission by rule, regulation or 
        order, as a means to deter and prevent price manipulation or 
        any other disruption to market integrity or to diminish, 
        eliminate, or prevent excessive speculation as described in 
        section 4a of such Act for physical-based commodities; and
            (2) to determine the efficacy, practicality, and 
        consequences of establishing aggregate position limits for 
        similar agreements, contracts, or transactions for physical-
        based commodities traded--
                    (A) on designated contract markets;
                    (B) on derivatives transaction execution 
                facilities; and
                    (C) in reliance on such sections 2(g) and 2(h) and 
                of any exemption issued by the Commission by rule, 
                regulation or order.
    (b) Public Hearings.--The Commission shall provide for not less 
than 2 public hearings to take testimony, on the record, as part of the 
fact-gathering process in preparation of the report.
    (c) Report and Recommendations.--Not less than 12 months after the 
date of the enactment of this section, the Commission shall provide to 
the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report that--
            (1) describes the results of the study; and
            (2) provides recommendations on any actions necessary to 
        deter and prevent price manipulation or any other disruption to 
        market integrity or to diminish, eliminate, or prevent 
        excessive speculation as described in section 4a of the 
        Commodity Exchange Act for physical-based commodities, 
        including--
                    (A) any additional statutory authority that the 
                Commission determines to be necessary to implement the 
                recommendations; and
                    (B) a description of the resources that the 
                Commission considers to be necessary to implement the 
                recommendations.

SEC. 121. STUDIES; REPORTS.

    (a) Study Relating to International Regulation of Energy Commodity 
Markets.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct a study of the international regime for 
        regulating the trading of energy commodity futures and 
        derivatives.
            (2) Analysis.--The study shall include an analysis of, at a 
        minimum--
                    (A) key common features and differences among 
                countries in the regulation of energy commodity 
                trading, including with respect to market oversight and 
                enforcement standards and activities;
                    (B) variations among countries with respect to the 
                use of position limits, position accountability levels, 
                or other thresholds to detect and prevent price 
                manipulation, excessive speculation as described in 
                section 4a of the Commodity Exchange Act, or other 
                unfair trading practices;
                    (C) variations in practices regarding the 
                differentiation of commercial and noncommercial 
                trading;
                    (D) agreements and practices for sharing market and 
                trading data among futures authorities and between 
                futures authorities and the entities that the futures 
                authorities oversee; and
                    (E) agreements and practices for facilitating 
                international cooperation on market oversight, 
                compliance, and enforcement.
            (3) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Comptroller General shall submit to 
        the Committee on Agriculture of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report that--
                    (A) describes the results of the study;
                    (B) addresses whether there is excessive 
                speculation, and if so, the effects of any such 
                speculation and energy price volatility on energy 
                futures; and
                    (C) provides recommendations to improve openness, 
                transparency, and other necessary elements of a 
                properly functioning market in a manner that protects 
                consumers in the United States.
    (b) Study Relating to Effects of Speculators on Agriculture and 
Energy Futures Markets and Agriculture and Energy Prices.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study of the effects of speculators on 
        agriculture and energy futures markets and agriculture and 
        energy prices.
            (2) Analysis.--The study shall include an analysis of, at a 
        minimum--
                    (A) the effect of increased amounts of capital in 
                agriculture and energy futures markets;
                    (B) the impact of the roll-over of positions by 
                index fund traders and swap dealers on agriculture and 
                energy futures markets and agriculture and energy 
                prices; and
                    (C) the extent to which each factor described in 
                subparagraphs (A) and (B) and speculators--
                            (i) affect--
                                    (I) the pricing of agriculture and 
                                energy commodities; and
                                    (II) risk management functions; and
                            (ii) contribute to economically efficient 
                        price discovery.
            (3) Report.--Not later than 2 years after the date of the 
        enactment of this Act, the Comptroller General shall submit to 
        the Committee on Agriculture of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report that describes the results of the study.

SEC. 122. OVER-THE-COUNTER AUTHORITY.

    (a) In General.--Section 2 of the Commodity Exchange Act (7 U.S.C. 
2) is amended by adding at the end the following:
    ``(j) Over-the-Counter Authority.--
            ``(1) Within 60 days after the date of the enactment of 
        this subsection, the Commission shall, by rule, regulation, or 
        order, require routine reporting as it deems in its discretion 
        appropriate, on not less than a monthly basis, of agreements, 
        contracts, or transactions, with regard to an agricultural or 
        energy commodity, entered into in reliance on subsection (g), 
        (h)(1), or (h)(2) of section 2, or any exemption issued by the 
        Commission by rule, regulation, or order that are fungible (as 
        defined by the Commission) with agreements, contracts, or 
        transactions traded on or subject to the rules of any board of 
        trade or of any electronic trading facility with respect to a 
        significant price discovery contract.
            ``(2) Notwithstanding subsections (g), (h)(1), and (h)(2) 
        of section 2, and any exemption issued by the Commission by 
        rule, regulation, or order, the Commission shall assess and 
        issue a finding on whether the agreements, contracts, or 
        transactions reported pursuant to paragraph (1), alone or in 
        conjunction with other similar agreements, contracts, or 
        transactions, have the potential to--
                    ``(A) disrupt the liquidity or price discovery 
                function on a registered entity;
                    ``(B) cause a severe market disturbance in the 
                underlying cash or futures market for an agricultural 
                or energy commodity; or
                    ``(C) prevent or otherwise impair the price of a 
                contract listed for trading on a registered entity from 
                reflecting the forces of supply and demand in any 
                market for an agricultural commodity enumerated in 
                section 1a(4) or an energy commodity.
            ``(3) If the Commission makes a finding pursuant to 
        paragraph (2) of this subsection, the Commission may, in its 
        discretion, utilize its authority under section 8a(9) to impose 
        position limits for speculators on the agreements, contracts, 
        or transactions involved and take corrective actions to enforce 
        the limits.''.
    (b) Conforming Amendments.--
            (1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by 
        inserting ``subsection (j) of this section, and'' after 
        ``(other than''.
            (2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is 
        amended by inserting ``subsection (j) of this section and'' 
        before ``sections''.
            (3) Section 8a(9) of such Act (7 U.S.C. 12a(a)(9)) is 
        amended by inserting after ``of the Commission's action'' the 
        following: ``, and to fix and enforce limits to agreements, 
        contracts, or transaction subject to section 2(j)(1) pursuant 
        to a finding made under section 2(j)(2)''.

SEC. 123. EXPEDITED PROCESS.

    The Commodity Futures Trading Commission may use emergency and 
expedited procedures (including any administrative or other procedure 
as appropriate) to carry out this title and the amendments made by this 
title if, in its discretion, it deems it necessary to do so.

          TITLE II--NATIONAL COMMISSION ON ENERGY INDEPENDENCE

SEC. 201. ESTABLISHMENT OF COMMISSION.

    There is established in the legislative branch the National 
Commission on Energy Independence (referred to in this title as the 
``Commission'').

SEC. 202. PURPOSE.

    The purpose of the Commission is to study and make recommendations 
to Congress and the President to remove technical obstacles and policy 
barriers for the United States to achieve independence from foreign 
oil.

SEC. 203. COMPOSITION OF COMMISSION.

    (a) Members.--The Commission shall be composed of 12 members, of 
whom--
            (1) 1 member shall be jointly appointed by the majority 
        leader of the Senate and the Speaker of the House of 
        Representatives, who shall serve as Chairperson of the 
        Commission;
            (2) 1 member shall be jointly appointed by the minority 
        leader of the Senate and the minority leader of the House of 
        Representatives, who shall serve as Vice-Chairperson of the 
        Commission;
            (3)(A) 1 member shall be jointly appointed by the Chair and 
        ranking member of the Committee on the Environment and Public 
        Works of the Senate; and
            (B) 1 member shall be jointly appointed by the Chair and 
        ranking member of the Committee on Natural Resources of the 
        House of Representatives, in consultation with the Select 
        Committee on Energy Independence and Global Warming of the 
        House of Representatives;
            (4)(A) 1 member shall be jointly appointed by the Chair and 
        ranking member of the Committee on Energy and Natural Resources 
        of the Senate; and
            (B) 1 member shall be jointly appointed by the Chair and 
        ranking member of the Committee on Energy and Commerce of the 
        House of Representatives;
            (5)(A) 1 member shall be jointly appointed by the Chair and 
        ranking member of the Committee on Commerce, Science and 
        Transportation of the Senate; and
            (B) 1 member shall be jointly appointed by the Chair and 
        ranking member of the Committee on Science and Technology of 
        the House of Representatives and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives;
            (6)(A) 1 member shall be jointly appointed by the Chair and 
        ranking member of the Committee on Agriculture, Nutrition and 
        Forestry of the Senate; and
            (B) 1 member shall be jointly appointed by the Chair and 
        ranking member of the Committee on Agriculture of the House of 
        Representatives; and
            (7)(A) 1 member shall be jointly appointed by the Chair and 
        ranking member of the Committee on Finance of the Senate; and
            (B) 1 member shall be jointly appointed by the Chair and 
        ranking member of the Committee on Ways and Means of the House 
        of Representatives.
    (b) Qualifications; Initial Meeting.--
            (1) Political party affiliation.--Each appointment to the 
        Commission shall be made without regard to political party 
        affiliation and on a nonpartisan basis.
            (2) Nongovernmental appointees.--An individual appointed to 
        the Commission may not be an officer or employee of the Federal 
        Government or any State or local government--
                    (A) on the date on which the individual is 
                appointed to the Commission; or
                    (B) at any time during the term of service on the 
                Commission of the individual.
            (3) Other qualifications.--It is the sense of Congress that 
        individuals appointed to the Commission should be prominent 
        United States citizens, with national recognition and 
        significant depth of experience in such professions as 
        governmental service, science, energy, economics, environment, 
        agriculture, manufacturing, public administration, or commerce 
        (including aviation matters).
            (4) Deadline for appointment.--Each member of the 
        Commission shall be appointed not later than 90 days after the 
        date of enactment of this Act.
    (c) Meetings.--
            (1) Initial meeting.--The Commission shall hold the initial 
        meeting of the Commission as soon as practicable, and not later 
        than 60 days, after the date on which all members of the 
        Commission are appointed.
            (2) Subsequent meetings.--After the initial meeting under 
        paragraph (1), the Commission shall meet at the call of--
                    (A) the Chairperson; or
                    (B) a majority of the members of the Commission.
    (d) Quorum.--7 members of the Commission shall constitute a quorum.
    (e) Vacancies.--A vacancy on the Commission--
            (1) shall not affect the powers of the Commission; and
            (2) shall be filled in the same manner in which the 
        original appointment was made.

SEC. 204. FUNCTIONS OF COMMISSION.

    The functions of the Commission are--
            (1) to examine, study, and evaluate the technical obstacles 
        and policy barriers that need to be addressed in order for the 
        United States to achieve independence from foreign oil through 
        a balanced combination of--
                    (A) increased domestic production of energy;
                    (B) enhanced energy conservation and efficiency; 
                and
                    (C) the accelerated development of alternative 
                fuels and technologies to transition the United States 
                motor vehicle fleet away from reliance on petroleum-
                based fuels;
            (2) to investigate matters that relate to achieving 
        independence from foreign oil, such as--
                    (A) carbon capture and storage;
                    (B) nuclear and renewable energy; and
                    (C) the need for upgrading and transitioning the 
                national grid and other energy infrastructure; and
            (3) to submit to Congress and the President such reports as 
        are required by section 106 containing such findings, 
        conclusions, and recommendations as the Commission shall 
        determine to be necessary to advise and assist Congress and the 
        President in developing legislation, procedures, rules, and 
        regulations relating to the removal of technical obstacles and 
        policy barriers to achieve independence from foreign oil.

SEC. 205. POWERS OF COMMISSION.

    (a) In General.--
            (1) Rules.--The Commission may establish such rules and 
        regulations relating to administrative procedures as are 
        reasonably necessary to enable the Commission to carry out this 
        title.
            (2) Hearings and evidence.--The Commission or, on the 
        authority of the Commission, any subcommittee or member of the 
        Commission may, for the purpose of carrying out this title, 
        hold such hearings and sit and act at such times and places, 
        take such testimony, receive such evidence, and administer such 
        oaths as the Commission determines to be appropriate.
    (b) Contracting.--To the extent amounts are made available in 
appropriations Acts, the Commission may enter into contracts to assist 
the Commission in carrying out the duties of the Commission under this 
title.
    (c) Information From Federal Agencies.--
            (1) In general.--The Commission may secure directly from a 
        Federal agency such information, suggestions, estimates, and 
        statistics as the Commission considers to be necessary to carry 
        out this title.
            (2) Provision of information.--On request of the 
        Commission, the head of the agency shall provide the 
        information, suggestions, estimates, and statistics to the 
        Commission.
            (3) Treatment.--Information provided to the Commission 
        under this subsection shall be received, handled, stored, and 
        disseminated by members and staff of the Commission in 
        accordance with applicable law (including regulations) and 
        Executive orders.
    (d) Assistance From Federal Agencies.--
            (1) General services administration.--The Administrator of 
        General Services shall provide to the Commission, on a 
        reimbursable basis, administrative support and other services 
        to assist the Commission in carrying out the duties of the 
        Commission under this title.
            (2) Other departments and agencies.--In addition to the 
        assistance described in paragraph (1), any other Federal 
        department or agency may provide to the Commission such 
        services, funds, facilities, staff, and other support as the 
        head of the department or agency determines to be appropriate.
    (e) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property only in accordance with the ethical 
rules applicable to congressional officers and employees.
    (f) Volunteer Services.--
            (1) In general.--Notwithstanding section 1342 of title 31, 
        United States Code, the Commission may accept and use the 
        services of volunteers serving without compensation.
            (2) Reimbursement.--The Commission may reimburse a 
        volunteer for office supplies, local travel expenses, and other 
        travel expenses, including per diem in lieu of subsistence, in 
        accordance with section 5703 of title 5, United States Code.
            (3) Treatment.--A volunteer of the Commission shall be 
        considered to be an employee of the Federal Government in 
        carrying out activities for the Commission, for purposes of--
                    (A) chapter 81 of title 5, United States Code;
                    (B) chapter 11 of title 18, United States Code; and
                    (C) chapter 171 of title 28, United States Code.
    (g) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
agencies of the Federal Government.

SEC. 206. REPORTS.

    Not later than 1 year after the date on which all members of the 
Commission are appointed under section 103 and each year thereafter, 
the Commission shall submit to Congress and the President a report that 
contains the findings, conclusions, and recommendations of the 
Commission to remove the technical obstacles and policy barriers that 
need to be addressed in order for the United States to achieve 
independence from foreign oil and address related matters in accordance 
with section 103.

SEC. 207. STAFF OF COMMISSION.

    (a) In General.--The Chairperson of the Commission (in consultation 
with the Vice-Chairperson of the Commission) may, without regard to the 
civil service laws (including regulations), appoint and terminate a 
staff director and such other additional personnel as are necessary to 
enable the Commission to perform the duties of the Commission.
    (b) Compensation.--
            (1) In general.--Except as provided in paragraph (2), the 
        Chairperson of the Commission may fix the compensation of the 
        staff director and other personnel without regard to the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        title 5, United States Code, relating to classification of 
        positions and General Schedule pay rates.
            (2) Maximum rate of pay.--The rate of pay for the staff 
        director and other personnel shall not exceed the rate payable 
        for level IV of the Executive Schedule under section 5316 of 
        title 5, United States Code.
    (c) Status.--The staff director and any employee (not including any 
member) of the Commission shall be considered to be employees under 
section 2105 of title 5, United States Code, for purposes of chapters 
63, 81, 83, 84, 85, 87, 89, and 90 of that title.
    (d) Consultant Services.--The Commission may procure the services 
of experts and consultants in accordance with section 3109 of title 5, 
United States Code, at rates not to exceed the daily rate paid to an 
individual occupying a position at level IV of the Executive Schedule 
under section 5315 of title 5, United States Code.

SEC. 208. COMPENSATION AND TRAVEL EXPENSES.

    (a) Compensation of Members.--A member of the Commission shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which the member is engaged in the performance of 
the duties of the Commission.
    (b) Travel Expenses.--A member of the Commission shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for an employee of an agency under subchapter I of chapter 
57 of title 5, United States Code, while away from the home or regular 
place of business of the member in the performance of the duties of the 
Commission.

SEC. 209. MEETINGS.

    (a) In General.--The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to the Commission.
    (b) Public Meetings and Release of Public Versions of Reports.--The 
Commission shall ensure, to the maximum extent practicable, that--
            (1) all hearings of the Commission are available to the 
        public, including by--
                    (A) providing live and recorded public access to 
                hearings on the Internet; and
                    (B) publishing all transcripts and records of 
                hearings at such time and in such manner as is agreed 
                to by the majority of members of the Commission; and
            (2) all reports, findings, and conclusions are made public.
    (c) Public Hearings.--Public hearings of the Commission shall be 
conducted in a manner consistent with the protection of information 
provided to or developed for or by the Commission as required by any 
applicable law (including regulations) or Executive order.

SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission such sums 
as are necessary to carry out this title, to remain available until 
expended.

     TITLE III--ESTABLISH A NATIONAL RENEWABLE ELECTRICITY STANDARD

SEC. 301. NATIONAL RENEWABLE ELECTRICITY STANDARD.

    (a) Standard.--Title VI of the Public Utility Regulatory Policies 
Act of 1978 is amended by adding at the end the following:

``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    ``(a) Definitions.--For purposes of this section:
            ``(1) Biomass.--The term `biomass' means--
                    ``(A) cellulosic (plant fiber) organic materials 
                from a plant that is planted for the purpose of being 
                used to produce energy;
                    ``(B) nonhazardous, plant or algal matter waste 
                materials that is segregated from other waste materials 
                and is derived from--
                            ``(i) an agricultural crop, crop byproduct 
                        or residue resource;
                            ``(ii) waste such as landscape or right-of-
                        way trimmings, but not including--
                                    ``(I) municipal solid waste;
                                    ``(II) recyclable postconsumer 
                                waste paper;
                                    ``(III) painted, treated, or 
                                pressurized wood;
                                    ``(IV) wood contaminated with 
                                plastic or metals; or
                            ``(iii) gasified animal waste;
                            ``(iv) landfill methane; and
                    ``(C) with respect to material removed from 
                National Forest System lands the term includes only 
                organic material from--
                            ``(i) precommercial thinnings;
                            ``(ii) slash;
                            ``(iii) brush; and
                            ``(iv) mill residues.
            ``(2) Eligible facility.--The term `eligible facility' 
        means--
                    ``(A) a facility for the generation of electric 
                energy from a renewable energy resource that is placed 
                in service on or after the date of enactment of this 
                section or the effective date of the applicable State 
                renewable portfolio standard program; or
                    ``(B) a repowering or cofiring increment that is 
                placed in service on or after the date of enactment of 
                this section or the effective date of the applicable 
                State renewable portfolio standard program, at a 
                facility for the generation of electric energy from a 
                renewable energy resource that was placed in service 
                before that date.
            ``(3) Existing facility offset.--The term `existing 
        facility offset' means renewable energy generated from an 
        existing facility, not classified as an eligible facility, that 
        is owned or under contract, directly or indirectly, to a retail 
        electric supplier on the date of enactment of this section.
            ``(4) Incremental hydropower.--The term `incremental 
        hydropower' means additional generation that is achieved from 
        increased efficiency or additions of capacity on or after the 
        date of enactment of this section or the effective date of the 
        applicable State renewable portfolio standard program, at a 
        hydroelectric facility that was placed in service before that 
        date.
            ``(5) Indian land.--The term `Indian land' means--
                    ``(A) any land within the limits of any Indian 
                reservation, pueblo, or rancheria;
                    ``(B) any land not within the limits of any Indian 
                reservation, pueblo, or rancheria title to which was on 
                the date of enactment of this paragraph either held by 
                the United States for the benefit of any Indian tribe 
                or individual or held by any Indian tribe or individual 
                subject to restriction by the United States against 
                alienation;
                    ``(C) any dependent Indian community; and
                    ``(D) any land conveyed to any Alaska Native 
                corporation under the Alaska Native Claims Settlement 
                Act.
            ``(6) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including any Alaskan Native village or regional or 
        village corporation as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
        seq.), which is recognized as eligible for the special programs 
        and services provided by the United States to Indians because 
        of their status as Indians.
            ``(7) Renewable energy.--The term `renewable energy' means 
        electric energy generated by a renewable energy resource.
            ``(8) Renewable energy resource.--The term `renewable 
        energy resource' means solar (including solar water heating), 
        wind, ocean, tidal, geothermal energy, biomass, landfill gas, 
        or incremental hydropower.
            ``(9) Repowering or cofiring increment.--The term 
        `repowering or cofiring increment' means--
                    ``(A) the additional generation from a modification 
                that is placed in service on or after the date of 
                enactment of this section or the effective date of the 
                applicable State renewable portfolio standard program, 
                to expand electricity production 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 
                the effective date of the applicable State renewable 
                portfolio standard program; or
                    ``(B) the additional generation above the average 
                generation in the 3 years preceding the date of 
                enactment of this section or the effective date of the 
                applicable State renewable portfolio standard program, 
                to expand electricity production 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 
                the effective date of the applicable State renewable 
                portfolio standard program.
            ``(10) Retail electric supplier.--The term `retail electric 
        supplier' means a person that sells electric energy to electric 
        consumers and 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; except that 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.
            ``(11) Retail electric supplier's base amount.--The term 
        `retail electric supplier's base amount' means the total amount 
        of electric energy sold by the retail electric supplier, 
        expressed in terms of kilowatt hours, to electric customers for 
        purposes other than resale during the most recent calendar year 
        for which information is available, excluding electric energy 
        generated by a hydroelectric facility.
    ``(b) Minimum Renewable Generation Requirement.--For each calendar 
year beginning in calendar year 2010, each retail electric supplier 
shall submit to the Secretary, not later than April 1 of the following 
calendar year, renewable energy credits in an amount equal to the 
required annual percentage specified in subsection (c).
    ``(c) Required Annual Percentage.--For calendar years 2010 through 
2039, the required annual percentage of the retail electric supplier's 
base amount that shall be generated from renewable energy resources, or 
otherwise credited towards such percentage requirement pursuant to 
subsection (d), shall be the percentage specified in the following 
table:

                                                        Required annual
``Calendar years:                                           percentage:
        2010...................................................      1 
        2011...................................................      2 
        2012...................................................      4 
        2013...................................................      6 
        2014...................................................      8 
        2015...................................................     10 
        2016...................................................     12 
        2017...................................................     14 
        2018...................................................     16 
        2019...................................................     18 
        2020 and thereafter....................................     20.
    ``(d) Renewable Energy Credits.--(1) A retail electric supplier may 
satisfy the requirements of subsection (b) through the submission of 
renewable energy credits--
            ``(A) issued to the retail electric supplier under 
        subsection (e);
            ``(B) obtained by purchase or exchange under subsection (f) 
        or (h); or
            ``(C) borrowed under subsection (j).
    ``(2) A renewable energy credit may be counted toward compliance 
with subsection (b) only once.
    ``(e) Issuance of Credits.--(1) The Secretary shall establish by 
rule, not later than 1 year after the date of enactment of this 
section, a program to verify and issue renewable energy credits, track 
their sale, exchange and submission, and enforce the requirements of 
this section.
    ``(2) An entity that generates electric energy through the use of a 
renewable energy resource may apply to the Secretary for the issuance 
of renewable energy credits. The applicant must demonstrate that the 
electric energy will be transmitted onto the grid or, in the case of a 
generation offset, that the electric energy offset would have otherwise 
been consumed on site. The application shall indicate--
            ``(A) the type of renewable energy resource used to produce 
        the electricity;
            ``(B) the location where the electric energy was produced; 
        and
            ``(C) any other information the Secretary determines 
        appropriate.
    ``(3)(A) Except as provided in subparagraphs (B), (C), and (D), the 
Secretary shall issue to each entity that generates electric energy one 
renewable energy credit for each kilowatt hour of electric energy the 
entity generates from the date of enactment of this section and in each 
subsequent calendar year through the use of a renewable energy resource 
at an eligible facility.
    ``(B) For incremental hydropower the renewable energy credits shall 
be calculated based on the expected increase in average annual 
generation resulting from the efficiency improvements or capacity 
additions. The number of credits 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 renewable energy credits for incremental hydropower shall not be 
based on any operational changes at the hydroelectric facility not 
directly associated with the efficiency improvements or capacity 
additions.
    ``(C) The Secretary shall issue two renewable energy credits for 
each kilowatt hour of electric energy generated and supplied to the 
grid in that calendar year through the use of a renewable energy 
resource at an eligible facility located on Indian land. For purposes 
of this paragraph, renewable energy generated by biomass cofired with 
other fuels is eligible for two credits only if the biomass was grown 
on such land.
    ``(D) For electric energy generated by a renewable energy resource 
at an on-site eligible facility, used to offset part or all of the 
customer's requirements for electric energy, the Secretary shall issue 
three renewable energy credits to such customer for each kilowatt hour 
generated.
    ``(E) In the case of a retail electric supplier that is subject to 
a State renewable standard program that--
            ``(i) requires the generation of electricity from renewable 
        energy; or
            ``(ii) provides for alternative compliance payments in 
        satisfaction of applicable State requirements under the 
        program,
the Secretary shall issue an amount of renewable energy credits equal 
to the amount of renewable energy credits that the Secretary would have 
issued had a payment of the same amount been made to the Secretary 
under subsection (j). Such renewable energy credits may be applied 
against the retail electric supplier's own required annual percentage 
or may be transferred for use only by an associate company of the 
retail electric supplier.
    ``(f) Eligibility.--To be eligible for a renewable energy credit, 
the unit of electric energy generated through the use of a renewable 
energy resource may be sold or may be used by the generator. If both a 
renewable energy resource and a non-renewable energy resource are used 
to generate the electric energy, the Secretary shall issue renewable 
energy credits based on the proportion of the renewable energy 
resources used. The Secretary shall identify renewable energy credits 
by type and date of generation.
    ``(g) Contracts Under Section 210.--When a generator sells electric 
energy generated through the use of a renewable energy resource to a 
retail electric supplier under a contract subject to section 210 of 
this Act, the retail electric supplier is treated as the generator of 
the electric energy for the purposes of this section or the duration of 
the contract.
    ``(h) Existing Facility Offsets.--The Secretary shall issue 
renewable energy credits for existing facility offsets to be applied 
against a retail electric supplier's required annual percentage. Such 
credits are not tradeable and may be used only in the calendar year 
generation actually occurs.
    ``(i) Renewable Energy Credit Trading.--A renewable energy credit, 
may be sold, transferred or exchanged by the entity to whom issued or 
by any other entity who acquires the renewable energy credit, except 
for those renewable energy credits issued pursuant to subsection 
(e)(3)(E). A renewable energy credit for any year that is not used to 
satisfy the minimum renewable generation requirement of subsection (a) 
for that year may be carried forward for use within the next 4 years.
    ``(j) Renewable Energy Credit Borrowing.--At any time before the 
end of calendar year 2012, a retail electric supplier that has reason 
to believe it will not have sufficient renewable energy credits to 
comply with subsection (b) may--
            ``(1) submit a plan to the Secretary demonstrating that the 
        retail electric supplier will earn sufficient credits within 
        the next 3 calendar years which, when taken into account, will 
        enable the retail electric supplier to meet the requirements of 
        subsection (b) for calendar year 2012 and the subsequent 
        calendar years involved; and
            ``(2) upon the approval of the plan by the Secretary, apply 
        renewable energy credits that the plan demonstrates will be 
        earned within the next 3 calendar years to meet the 
        requirements of subsection (b) for each calendar year involved.
The retail electric supplier must repay all of the borrowed renewable 
energy credits by submitting an equivalent number of renewable energy 
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 renewable energy credits 
shall subject the retail electric supplier to civil penalties under 
subsection (k) for violation of the requirements of subsection (b) for 
each calendar year involved.
    ``(k) Enforcement.--A retail electric supplier that does not submit 
renewable energy credits as required under subsection (b) shall be 
liable for the payment of a civil penalty. That penalty shall be 
calculated on the basis of the number of renewable energy credits not 
submitted, multiplied by the lesser of 4.5 cents or 300 percent of the 
average market value of 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). On January 1 
of each year following calendar year 2006, the Secretary shall adjust 
for inflation the penalty for such calendar year, based on the Gross 
Domestic Product Implicity Price Deflator.
    ``(l) Credit Cost Cap.--The Secretary shall offer renewable energy 
credits for sale at the lesser of 3 cents per kilowatt-hour or 200 
percent of the average market value of renewable credits for the 
applicable compliance period. On January 1 of each year following 
calendar year 2006, the Secretary shall adjust for inflation the price 
charged per credit for such calendar year, based on the Gross Domestic 
Product Implicit Price Deflator.
    ``(m) Information Collection.--The Secretary may collect the 
information necessary to verify and audit--
            ``(1) the annual electric energy generation and renewable 
        energy generation of any entity applying for renewable energy 
        credits under this section;
            ``(2) the validity of renewable energy credits submitted by 
        a retail electric supplier to the Secretary; and
            ``(3) the quantity of electricity sales of all retail 
        electric suppliers.
    ``(n) Environmental Savings Clause.--Incremental hydropower shall 
be subject to all applicable environmental laws and licensing and 
regulatory requirements.
    ``(o) Existing Programs.--(1) This section does not preclude a 
State from imposing additional renewable energy requirements in that 
State, including specifying eligible technologies under such State 
requirements.
    ``(2) In the rule establishing this program, the Secretary shall 
incorporate common elements of existing renewable energy 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 and to avoid 
duplicating compliance charges to retail electric suppliers.
    ``(p) Recovery of Costs.--An electric utility whose sales of 
electric energy are subject to rate regulation, including any utility 
whose rates are regulated by the Commission and any State regulated 
electric utility, shall not be denied the opportunity to recover the 
full amount of the prudently incurred incremental cost of renewable 
energy obtained to comply with the requirements of subsection (b) for 
sales to electric customers which are subject to rate regulation, 
notwithstanding any other law, regulation, rule, administrative order 
or any agreement between the electric utility and either the Commission 
or a State regulatory authority. For the purpose of this subsection, 
the term `incremental cost of renewable energy' means--
            ``(1) the additional cost to the electric utility for the 
        purchase or generation of renewable energy to satisfy the 
        minimum renewable generation requirement of subsection (b), as 
        compared to the cost of the electric energy the electric 
        utility would generate or purchase from another source but for 
        the requirements of subsection (b); and
            ``(2) the cost to the electric utility for acquiring by 
        purchase or exchange renewable energy credits to satisfy the 
        minimum renewable generation requirement 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'.
    ``(q) Voluntary Participation.--The Secretary shall encourage 
federally owned utilities, municipally owned utilities and rural 
electric cooperatives that sell electric energy to electric consumers 
for purposes other than resale to participate in the renewable 
portfolio standard program. A municipally owned utility or rural 
electric cooperative that owns or has under contract a facility for the 
generation of electric energy from a renewable energy resource may not 
sell or trade renewable energy credits generated by such resource 
unless it participates in the renewable portfolio standard program 
under the same terms and conditions as retail electric suppliers.
    ``(r) Program Review.--The Secretary shall enter into a contract 
with the National Academy of Sciences to conduct a comprehensive 
evaluation of all aspects of the Renewable Portfolio Standard program, 
within 8 years of enactment of this section. The study shall include an 
evaluation of--
            ``(1) the effectiveness of the program in increasing the 
        market penetration and lower the cost of the eligible renewable 
        technologies;
            ``(2) the opportunities for any additional technologies and 
        sources of renewable energy emerging since enactment of this 
        section;
            ``(3) the impact on the regional diversity and reliability 
        of supply sources, including the power quality benefits of 
        distributed generation;
            ``(4) the regional resource development relative to 
        renewable potential and reasons for any under investment in 
        renewable resources; and
            ``(5) the net cost/benefit of the renewable portfolio 
        standard to the national and State economies, including retail 
        power costs, economic development benefits of investment, 
        avoided costs related to environmental and congestion 
        mitigation investments that would otherwise have been required, 
        impact on natural gas demand and price, effectiveness of green 
        marketing programs at reducing the cost of renewable resources.
The Secretary shall transmit the results of the evaluation and any 
recommendations for modifications and improvements to the program to 
Congress not later than January 1, 2016.
    ``(s) Program Improvements.--Using the results of the evaluation 
under subsection (p), the Secretary shall by rule, within 6 months of 
the completion of the evaluation, make such modifications to the 
program as may be necessary to improve the efficiency of the program 
and maximize the use of renewable energy under the program.
    ``(t) State Renewable Energy Account Program.--(1) The Secretary 
shall establish, not later than December 31, 2009, a State renewable 
energy account program.
    ``(2) All money collected by the Secretary from the sale of 
renewable energy credits shall be deposited into the State renewable 
energy account established pursuant to this subsection. The State 
renewable energy account shall be held by the Secretary and shall not 
be transferred to the Secretary of the Treasury.
    ``(3) Proceeds deposited in the State renewable energy account 
shall be used by the Secretary, subject to annual appropriations, for a 
program to provide grants to the State agency responsible for 
developing State energy conservation plans under section 363 of the 
Energy Policy and Conservation Act (42 U.S.C. 6322) for the purposes of 
promoting renewable energy production and providing energy assistance 
and weatherization services to low-income consumers.
    ``(4) The Secretary may issue guidelines and criteria for grants 
awarded under this subsection. At least 75 percent of the funds 
provided to each State shall be used for promoting renewable energy 
production. The funds shall be allocated to the States on the basis of 
retail electric sales subject to the Renewable Portfolio Standard under 
this section or through voluntary participation. To the extent Federal 
credits have been issued without payment due to reciprocity with State 
programs under subsection (d)(3)(E), deductions shall be made from the 
relevant State's allocation. State energy offices receiving grants 
under this section shall maintain such records and evidence of 
compliance as the Secretary may require.''.
    (b) Table of Contents.--The table of contents for such title is 
amended by adding the following new item at the end:

``Sec. 610. Federal renewable portfolio standard.''.
    (c) Sunset.--Section 610 of such title and the item relating to 
such section 610 in the table of contents for such title are each 
repealed as of December 31, 2039.

     TITLE IV--APOLLO PROJECT FOR CONVERSION OF MOTOR VEHICLES TO 
                           ALTERNATIVE FUELS

SEC. 401. SENSE OF SENATE ON CONVERSION OF MOTOR VEHICLES TO 
              ALTERNATIVE FUELS AND ENERGY INDEPENDENCE.

    It is the sense of the Senate that--
            (1) not later than 20 years after the date of enactment of 
        this Act, not less than 85 percent of new motor vehicles sold 
        in the United States should run primarily on fuels other than 
        petroleum-based fuels; and
            (2) not later than calendar year 2030, the United States 
        should be energy independent.

SEC. 402. CONSUMER TAX CREDITS FOR ADVANCED VEHICLES.

    (a) Plug-In Electric Drive Motor Vehicle Credit.--
            (1) In general.--Subpart B of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 (relating to 
        other credits) is amended by adding at the end the following 
        new section:

``SEC. 30D. PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE CREDIT.

    ``(a) Allowance of Credit.--
            ``(1) In general.--There shall be allowed as a credit 
        against the tax imposed by this chapter for the taxable year an 
        amount equal to the applicable amount with respect to each new 
        qualified plug-in electric drive motor vehicle placed in 
        service by the taxpayer during the taxable year.
            ``(2) Applicable amount.--For purposes of paragraph (1), 
        the applicable amount is sum of--
                    ``(A) $2,500, plus
                    ``(B) $400 for each kilowatt hour of traction 
                battery capacity in excess of 4 kilowatt hours.
    ``(b) Limitation.--The amount of the credit allowed under 
subsection (a) by reason of subsection (a)(2) shall not exceed $7,500.
    ``(c) New Qualified Plug-In Electric Drive Motor Vehicle.--For 
purposes of this section, the term `new qualified plug-in electric 
drive motor vehicle' means motor vehicle--
            ``(1) which draws propulsion using a traction battery with 
        at least 4 kilowatt hours of capacity,
            ``(2) which uses an offboard source of energy to recharge 
        such battery,
            ``(3) which, in the case of a passenger vehicle or light 
        truck which has a gross vehicle weight rating of not more than 
        8,500 pounds, has received a certificate of conformity under 
        the Clean Air Act and meets or exceeds the equivalent 
        qualifying California low emission vehicle standard under 
        section 243(e)(2) of the Clean Air Act for that make and model 
        year in the case of a vehicle--
                    ``(A) having a gross vehicle weight rating of 6,000 
                pounds or less, 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
                    ``(B) having a gross vehicle weight rating of more 
                than 6,000 pounds but not more than 8,500 pounds, the 
                Bin 8 Tier II emission standard which is so 
                established,
            ``(4) the original use of which commences with the 
        taxpayer,
            ``(5) which is acquired for use or lease by the taxpayer 
        and not for resale, and
            ``(6) which is made by a manufacturer.
    ``(d) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--The credit allowed under subsection 
        (a) (after the application of paragraph (1)) for any taxable 
        year shall not exceed the excess (if any) of--
                    ``(A) the regular tax liability (as defined in 
                section 26(b)) reduced by the sum of the credits 
                allowable under subpart A and sections 27, 30, 30B, and 
                30C, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
    ``(e) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Motor vehicle.--The term `motor vehicle' has the 
        meaning given such term by section 30(c)(2).
            ``(2) Other terms.--The terms `passenger automobile', 
        `light truck', and `manufacturer' have the meanings given such 
        terms in regulations prescribed by the Administrator of the 
        Environmental Protection Agency for purposes of the 
        administration of title II of the Clean Air Act (42 U.S.C. 
        7521et seq.).
            ``(3) Traction battery capacity.--Traction battery capacity 
        shall be measured in kilowatt hours from a 100 percent state of 
        charge to a zero percent state of charge.
            ``(4) Reduction in basis.--For purposes of this subtitle, 
        the basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit so 
        allowed.
            ``(5) No double benefit.--The amount of any deduction or 
        other credit allowable under this chapter for a new qualified 
        plug-in electric drive motor vehicle shall be reduced by the 
        amount of credit allowed under subsection (a) for such vehicle 
        for the taxable year.
            ``(6) Property used by tax-exempt entity.--In the case of a 
        vehicle the use of which is described in paragraph (3) or (4) 
        of section 50(b) and which is not subject to a lease, the 
        person who sold such vehicle to the person or entity using such 
        vehicle shall be treated as the taxpayer that placed such 
        vehicle in service, but only if such person clearly discloses 
        to such person or entity in a document the amount of any credit 
        allowable under subsection (a) with respect to such vehicle 
        (determined without regard to subsection (b)(2)).
            ``(7) Property used outside united states, etc., not 
        qualified.--No credit shall be allowable 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.
            ``(8) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit (including recapture in 
        the case of a lease period of less than the economic life of a 
        vehicle).
            ``(9) Election to not take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects not to have this section apply to such vehicle.
            ``(10) Interaction with air quality and motor vehicle 
        safety standards.--Unless otherwise provided in this section, a 
        motor vehicle shall not be considered eligible for a credit 
        under this section unless such vehicle is in compliance with--
                    ``(A) the applicable provisions of the Clean Air 
                Act for the applicable make and model year of the 
                vehicle (or applicable air quality provisions of State 
                law in the case of a State which has adopted such 
                provision under a waiver under section 209(b) of the 
                Clean Air Act), and
                    ``(B) the motor vehicle safety provisions of 
                sections 30101 through 30169 of title 49, United States 
                Code.
    ``(f) Regulations.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall promulgate such regulations as necessary to 
        carry out the provisions of this section.
            ``(2) Coordination in prescription of certain 
        regulations.--The Secretary of the Treasury, in coordination 
        with the Secretary of Transportation and the Administrator of 
        the Environmental Protection Agency, shall prescribe such 
        regulations as necessary to determine whether a motor vehicle 
        meets the requirements to be eligible for a credit under this 
        section.
    ``(g) Termination.--This section shall not apply to property 
purchased after December 31, 2012.''.
            (2) Coordination with other motor vehicle credits.--
                    (A) New qualified fuel cell motor vehicles.--
                Paragraph (3) of section 30B(b) of such Code is amended 
                by adding at the end the following new flush sentence: 
                ``Such term shall not include any motor vehicle which 
                is a new qualified plug-in electric drive motor vehicle 
                (as defined by section 30D(c)).''.
                    (B) New qualified hybrid motor vehicles.--Paragraph 
                (3) of section 30B(d) of such Code is amended by adding 
                at the end the following new flush sentence:
``Such term shall not include any motor vehicle which is a new 
qualified plug-in electric drive motor vehicle (as defined by section 
30D(c)).''.
            (3) Conforming amendments.--
                    (A) Section 38(b) of such Code is amended by 
                striking ``plus'' at the end of paragraph (32), by 
                striking the period at the end of paragraph (33) and 
                inserting ``, plus'', and by adding at the end the 
                following new paragraph:
            ``(34) the portion of the new qualified plug-in electric 
        drive motor vehicle credit to which section 30D(d)(1) 
        applies.''.
                    (B) Section 55(c)(3) of such Code is amended by 
                inserting ``30D(d)(2),'' after ``30C(d)(2),''.
                    (C) Section 1016(a) of such Code is amended by 
                striking ``and'' at the end of paragraph (35), by 
                striking the period at the end of paragraph (36) and 
                inserting ``, and'', and by adding at the end the 
                following new paragraph:
            ``(37) to the extent provided in section 30D(e)(4).''.
                    (D) Section 6501(m) of such Code is amended by 
                inserting ``30D(e)(9)'' after ``30C(e)(5)''.
                    (E) The table of sections for subpart B of part IV 
                of subchapter A of chapter 1 is amended by adding at 
                the end the following new item:

``Sec. 30D. Plug-in electric drive motor vehicle credit.''.
    (b) Conversion Kits.--
            (1) In general.--Section 30B of such Code (relating to 
        alternative motor vehicle credit) is amended by redesignating 
        subsections (i) and (j) as subsections (j) and (k), 
        respectively, and by inserting after subsection (h) the 
        following new subsection:
    ``(i) Plug-In Conversion Credit.--
            ``(1) In general.--For purposes of subsection (a), the 
        plug-in conversion credit determined under this subsection with 
        respect to any motor vehicle which is converted to a qualified 
        plug-in electric drive motor vehicle is an amount equal to 20 
        percent of the cost of the plug-in traction battery module 
        installed in such vehicle as part of such conversion.
            ``(2) Limitations.--The amount of the credit allowed under 
        this subsection shall not exceed $2,500 with respect to the 
        conversion of any motor vehicle.
            ``(3) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Qualified plug-in electric drive motor 
                vehicle.--The term `qualified plug-in electric drive 
                motor vehicle' means any new qualified plug-in electric 
                drive motor vehicle (as defined in section 30D(c), 
                determined without regard to paragraphs (4) and (6) 
                thereof).
                    ``(B) Plug-in traction battery module.--The term 
                `plug-in traction battery module' means an electro-
                chemical energy storage device which--
                            ``(i) has a traction battery capacity of 
                        not less than 2.5 kilowatt hours,
                            ``(ii) is equipped with an electrical plug 
                        by means of which it can be energized and 
                        recharged when plugged into an external source 
                        of electric power,
                            ``(iii) consists of a standardized 
                        configuration and is mass produced,
                            ``(iv) has been tested and approved by the 
                        National Highway Transportation Safety 
                        Administration as compliant with applicable 
                        motor vehicle and motor vehicle equipment 
                        safety standards when installed by a mechanic 
                        with standardized training in protocols 
                        established by the battery manufacturer as part 
                        of a nationwide distribution program, and
                            ``(v) is certified by a battery 
                        manufacturer as meeting the requirements of 
                        clauses (i) through (iv).
                    ``(C) Credit allowed to lessor of battery module.--
                In the case of a plug-in traction battery module which 
                is leased to the taxpayer, the credit allowed under 
                this subsection shall be allowed to the lessor of the 
                plug-in traction battery module.
                    ``(D) Credit allowed in addition to other 
                credits.--The credit allowed under this subsection 
                shall be allowed with respect to a motor vehicle 
                notwithstanding whether a credit has been allowed with 
                respect to such motor vehicle under this section (other 
                than this subsection) in any preceding taxable year.
            ``(4) Termination.--This subsection shall not apply to 
        conversions made after December 31, 2012.''.
            (2) Credit treated as part of alternative motor vehicle 
        credit.--Section 30B(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (3), by striking the period at 
        the end of paragraph (4) and inserting ``, and'', and by adding 
        at the end the following new paragraph:
            ``(5) the plug-in conversion credit determined under 
        subsection (i).''.
            (3) No recapture for vehicles converted to qualified plug-
        in electric drive motor vehicles.--Paragraph (8) of section 
        30B(h) of such Code is amended by adding at the end the 
        following: ``, except that no benefit shall be recaptured if 
        such property ceases to be eligible for such credit by reason 
        of conversion to a qualified plug-in electric drive motor 
        vehicle.''
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2008, in taxable 
years beginning after such date.

SEC. 403. RESEARCH AND DEVELOPMENT PROGRAM FOR ALTERNATIVE FUEL VEHICLE 
              TECHNOLOGIES.

    (a) Purposes.--The purposes of this section are--
            (1) to enable and promote, in partnership with industry, 
        comprehensive development, demonstration, and commercialization 
        of a wide range of alternative fuel components, systems, and 
        vehicles using diverse transportation technologies;
            (2) to make critical public investments to help private 
        industry, institutions of higher education, National 
        Laboratories, and research institutions to expand innovation, 
        industrial growth, and jobs in the United States;
            (3) to expand the availability of the existing alternative 
        fuel infrastructure for fueling light-duty transportation 
        vehicles and other on-road and nonroad vehicles that are using 
        petroleum and are mobile sources of emissions, with the goals 
        of--
                    (A) enhancing the energy security of the United 
                States;
                    (B) reducing dependence on imported oil; and
                    (C) reducing emissions through the expansion of 
                alternative fuel supported mobility;
            (4) to accelerate the widespread commercialization of 
        alternative fuel vehicle technology into all sizes and 
        applications of vehicles, including commercialization of 
        alternative fuel vehicles; and
            (5) to improve the energy efficiency of and reduce the 
        petroleum use in surface transportation.
    (b) Program.--The Secretary of Energy shall conduct a program of 
research, development, demonstration, and commercial application for 
alternative fuel transportation technology, including--
            (1) high capacity, high-efficiency storage devices;
            (2) high-efficiency on-board and off-board alternative fuel 
        components;
            (3) high-powered alternative fuel systems for passenger and 
        commercial vehicles and for nonroad equipment;
            (4) control system development and power train development 
        and integration for alternative fuel vehicles, including--
                    (A) development of efficient cooling systems;
                    (B) analysis and development of control systems 
                that minimize the emissions profile when clean diesel 
                engines are part of an alternative fuel system; and
                    (C) development of different control systems that 
                optimize for different goals, including--
                            (i) storage life;
                            (ii) reduction of petroleum consumption; 
                        and
                            (iii) green house gas reduction;
            (5) nanomaterial technology applied to both alternative 
        fuel systems;
            (6) large-scale demonstrations, testing, and evaluation of 
        alternative fuel vehicles in different applications with 
        different storage and control systems, including--
                    (A) military applications;
                    (B) mass market passenger and light-duty truck 
                applications;
                    (C) private fleet applications; and
                    (D) medium- and heavy-duty applications;
            (7) development, in consultation with the Administrator of 
        the Environmental Protection Agency, of procedures for testing 
        and certification of criteria pollutants, fuel economy, and 
        petroleum use for light-, medium-, and heavy-duty vehicle 
        applications, including consideration of--
                    (A) the vehicle and fuel as a system, not just an 
                engine; and
                    (B) nightly off-board charging; and
            (8) advancement of alternative fuel transportation 
        technologies in mobile source applications by--
                    (A) improvement in alternative fuel technologies; 
                and
                    (B) working with industry and the Administrator of 
                the Environmental Protection Agency to--
                            (i) understand and inventory markets; and
                            (ii) identify and implement methods of 
                        removing barriers for existing and emerging 
                        applications.
    (c) Funding.--
            (1) In general.--Out of any funds in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Secretary of Energy to carry out this section, 
        to remain available until expended--
                    (A) on October 1, 2008, and each October 1 
                thereafter through October 1, 2012, $1,000,000,000; and
                    (B) on October 1, 2013, and each October 1 
                thereafter through October 1, 2017, $500,000,000.
            (2) Receipt and acceptance.--The Secretary of Energy shall 
        be entitled to receive, shall accept, and shall use to carry 
        out this section the funds transferred under paragraph (1), 
        without further appropriation.

SEC. 404. FEDERAL FLEET REQUIREMENTS.

    (a) Definition of Advanced Alternative Fueled Vehicle.--Section 301 
of the Energy Policy Act of 1992 (42 U.S.C. 13211) is amended by 
inserting after paragraph (14) the following:
            ``(15) Advanced alternative fueled vehicle.--
                    ``(A) In general.--The term `advanced alternative 
                fueled vehicle' means an alternative fueled vehicle 
                that is powered primarily by a nonpetroleum-based fuel.
                    ``(B) Exclusion.--The term `advanced alternative 
                fueled vehicle' does not include a flex fuel 
                vehicle.''.
    (b) Advanced Alternative Fuel Vehicles.--Section 303(b) of the 
Energy Policy Act of 1992 (42 U.S.C. 13212(b)) is amended--
            (1) by inserting after paragraph (3) the following:
    ``(4) Advanced Alternative Fuel Vehicles.--Of all vehicles 
purchased by the Federal Government for a model year, at least the 
following percentage of the vehicles shall be advanced alternative 
fueled vehicles:
            ``(A) 10 percent for each of fiscal years 2013 and 2014.
            ``(B) 20 percent for each of fiscal years 2015 and 2016.
            ``(C) 30 percent for each of fiscal years 2017 and 2018.
            ``(D) 40 percent for each of fiscal years 2019 and 2020.
            ``(E) 50 percent for each of fiscal years 2021 and 2022.
            ``(F) 60 percent for each of fiscal years 2023 and 2024.
            ``(G) 70 percent for each of fiscal years 2025 and 2026.
            ``(H) 80 percent for each of fiscal years 2027 and 2028.
            ``(I) 90 percent for fiscal year 2029 and each fiscal year 
        thereafter.''; and
            (2) in paragraph (2), by inserting ``or (4)'' after 
        ``paragraph (1)''.

             TITLE V--ENHANCED CONSERVATION AND EFFICIENCY

       Subtitle A--Enhancing Efficiency of Conventional Vehicles

                     PART I--FUEL ECONOMY STANDARDS

SEC. 501. INCREASE CORPORATE FUEL ECONOMY STANDARDS.

    Section 32902 of title 49, United States Code, is amended by 
striking ``for model year 2020 of at least 35 miles per gallon'' and 
inserting ``for model year 2015 of at least 35 miles per gallon and for 
model year 2030 of at least 50 miles per gallon''.

SEC. 502. MORE REALISTIC DETERMINATION OF FUEL EFFICIENCY STANDARDS.

    Section 32902 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(l) Calculation of Maximum Feasible Fuel Economy Standards.--
            ``(1) In general.--The Secretary shall determine the 
        maximum feasible fuel economy level achievable for passenger 
        automobiles and non-passenger automobiles for each model year 
        for purposes of this section based on a projected gasoline 
        price that is not less than the applicable high gasoline price 
        projection issued by the Energy Information Administration.
            ``(2) Applicable high gasoline price projection defined.--
        In this subsection the term `applicable high gasoline price 
        projection' means the greatest of a range of estimated gasoline 
        prices that the Energy Information Administration issues as 
        part of its annual energy outlook, short-term energy outlook, 
        or similar analyses, for the year or years corresponding to the 
        model year or model years for which the Secretary is 
        prescribing an average fuel economy standard under this 
        section, and for the range of years considered by the Secretary 
        in determining the costs and benefits associated with such 
        standard.''.

SEC. 503. FUEL EFFICIENCY STANDARDS REVISIONS.

    (a) Weight.--Section 32901(a)(3) of title 49, United States Code, 
is amended by striking ``rated at--'' and all that follows through the 
period at the end and inserting ``rated at not more than 10,000 pounds 
gross vehicle weight.''.
    (b) Fuel Economy Information.--Section 32908(a) of title 49, United 
States Code, is amended, by striking 8,500 and inserting ``10,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to model year 2009 and each subsequent model year.

SEC. 504. AUTOMOBILE SAFETY.

    Nothing in this Act shall be construed to limit, constrain, 
supercede, or expand the authority of the Secretary of Transportation 
to prescribe motor vehicle safety standards to reduce traffic accidents 
and deaths and injuries resulting from traffic accidents conferred by 
chapter 301 of title 49, United States Code.

                       PART II--OTHER PROVISIONS

SEC. 511. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary shall establish a research and development 
program on lightweight materials and composites and other innovations 
to increase the fuel efficiency of motor vehicles, including materials, 
composites, and innovation that will permit--
            (1) the weight of vehicles to be reduced to improve fuel 
        efficiency without compromising passenger safety; and
            (2) the cost of lightweight materials (such as 18 steel 
        alloys and carbon fibers) required for the construction of 
        lighter-weight vehicles to be reduced.
    (b) Funding.--
            (1) In general.--On October 1, 2008, and on each October 1 
        thereafter through October 1, 2017, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary to carry out this 
        subsection $500,000,000, to remain available until expended.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this subsection the funds transferred under paragraph (1), 
        without further appropriation.

SEC. 512. FEDERAL GOVERNMENT GASOLINE CONSUMPTION.

    (a) In General.--Section 303(b) of the Energy Policy Act of 1992 
(42 U.S.C. 13212(b)) is amended by adding at the end the following:
            ``(5) Gasoline consumption.--The Secretary shall promulgate 
        regulations for Federal fleets subject to this title requiring 
        that, not later than fiscal year 2010, each Federal agency 
        achieve at least a 5-percent reduction in petroleum 
        consumption, as calculated from the baseline established by the 
        Secretary for fiscal year 2008.''.
    (b) Additional Gasoline Reduction Measures.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study to determine whether additional gasoline 
        reduction measures by Federal departments, agencies, and 
        Congress are technically feasible.
            (2) Report.--Not later than 180 days after the date of 
        enactment of this Act, the Comptroller General shall submit to 
        Congress a report that describes the results of the study, 
        including any recommendations.

SEC. 513. CREDIT FOR FUEL-EFFICIENT MOTOR VEHICLES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986, as amended by this Act, is 
amended by adding at the end the following new section:

``SEC. 30E. FUEL-EFFICIENT MOTOR VEHICLE CREDIT.

    ``(a) Allowance of Credit.--
            ``(1) In general.--There shall be allowed as a credit 
        against the tax imposed by this chapter for the taxable year an 
        amount equal to the amount determined under paragraph (2) with 
        respect to any new fuel-efficient motor vehicle placed in 
        service by the taxpayer during the taxable year.
            ``(2) Credit amount.--The amount determined under this 
        paragraph shall be--
                    ``(A) $500, if the new fuel-efficient motor vehicle 
                achieves a city fuel economy which is 42 miles per 
                gallon or less;
                    ``(B) $1,000, if the new fuel-efficient motor 
                vehicle achieves a city fuel economy which is greater 
                than 42 miles per gallon but less than 45.6 miles per 
                gallon;
                    ``(C) $1,500, if the new fuel-efficient motor 
                vehicle achieves a city fuel economy which is greater 
                than 45.5 miles per gallon but less than 49.1 miles per 
                gallon;
                    ``(D) $2,000, if the new fuel-efficient motor 
                vehicle achieves a city fuel economy which is greater 
                than 49 miles per gallon but less than 52.6 miles per 
                gallon; and
                    ``(E) $2,500, if the new fuel-efficient motor 
                vehicle achieves a city fuel economy which is greater 
                than 52.5 miles per gallon.
    ``(b) New Fuel-Efficient Motor Vehicle.--For purposes of this 
section, the term `new fuel-efficient motor vehicle' means any motor 
vehicle--
            ``(1) which has a gross vehicle weight rating of not more 
        than 8,500 pounds,
            ``(2) which achieves a city fuel economy of at least 38.5 
        miles per gallon,
            ``(3) the original use of which commences with the 
        taxpayer,
            ``(4) which is acquired by the taxpayer for use or lease, 
        but not for resale, and
            ``(5) which is made by a manufacturer.
    ``(c) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) City fuel economy; manufacturer.--The terms `city 
        fuel economy' and `manufacturer' have the meanings given such 
        terms under section 30B(h).
            ``(2) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(3) Recapture; property used outside the united states; 
        election not to take credit.--For purposes of this section, 
        rules similar to the rules of paragraphs (2), (3), and (4) of 
        section 30(d) shall apply.
            ``(4) Denial of double benefit.--No credit shall be allowed 
        under this section with respect to any new fuel-efficient motor 
        vehicle if a credit is allowed with respect to such vehicle 
        under section 30, 30B, or 30D.
    ``(d) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--The credit allowed under subsection 
        (a) (after the application of paragraph (1)) for any taxable 
        year shall not exceed the excess (if any) of--
                    ``(A) the regular tax liability (as defined in 
                section 26(b)) reduced by the sum of the credits 
                allowable under subpart A and sections 27, 30, 30B, and 
                30D, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
    ``(e) Termination.--This section shall not apply to property placed 
in service after December 31, 2010.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986, as 
        amended by this Act, is amended by striking ``plus'' at the end 
        of paragraph (33), by striking the period at the end of 
        paragraph (34) and inserting ``, plus'', and by adding at the 
        end the following new paragraph:
            ``(35) the portion of the new fuel-efficient motor vehicle 
        credit to which section 30E(d)(1) applies.''.
            (2) Section 1016(a) of such Code, as amended by this Act, 
        is amended by striking ``and'' at the end of paragraph (36), by 
        striking the period at the end of paragraph (37) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(38) to the extent provided in section 30E(c)(2).''.
            (3) Section 6501(m) of such Code, as amended by this Act, 
        is amended by inserting ``30E(c)(3),'' after ``30D(e)(9),''.
    (c) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 30E. Fuel-efficient motor vehicle credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 514. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION UNITS AND 
              ADVANCED INSULATION.

    (a) In General.--Section 4053 of the Internal Revenue Code of 1986 
(relating to exemptions) is amended by adding at the end the following 
new paragraphs:
            ``(9) Idling reduction device.--Any device or system of 
        devices which--
                    ``(A) is designed to provide to a vehicle those 
                services (such as heat, air conditioning, or 
                electricity) that would otherwise require the operation 
                of the main drive engine while the vehicle is 
                temporarily parked or remains stationary using one or 
                more devices affixed to a tractor, and
                    ``(B) is determined by the Administrator of the 
                Environmental Protection Agency, in consultation with 
                the Secretary of Energy and the Secretary of 
                Transportation, to reduce idling of such vehicle at a 
                motor vehicle rest stop or other location where such 
                vehicles are temporarily parked or remain stationary.
            ``(10) Advanced insulation.--Any insulation that has an R 
        value of not less than R35 per inch.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales or installations after the date of the enactment of this Act.

SEC. 515. IDLING REDUCTION TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45Q. IDLING REDUCTION CREDIT.

    ``(a) General Rule.--For purposes of section 38, the idling 
reduction tax credit determined under this section for the taxable year 
is an amount equal to 25 percent of the amount paid or incurred for 
each qualifying idling reduction device placed in service by the 
taxpayer during the taxable year.
    ``(b) Limitation.--The maximum amount allowed as a credit under 
subsection (a) shall not exceed $1,000 per device.
    ``(c) Definitions.--For purposes of subsection (a)--
            ``(1) Qualifying idling reduction device.--The term 
        `qualifying idling reduction device' means any device or system 
        of devices that--
                    ``(A) is installed on a heavy-duty diesel-powered 
                on-highway vehicle;
                    ``(B) is designed to provide to such 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;
                    ``(C) the original use of which commences with the 
                taxpayer;
                    ``(D) is acquired for use by the taxpayer and not 
                for resale; and
                    ``(E) is certified by the Secretary of Energy, in 
                consultation with the Administrator of the 
                Environmental Protection Agency and the Secretary of 
                Transportation, to reduce long-duration idling of such 
                vehicle at a motor vehicle rest stop or other location 
                where such vehicles are temporarily parked or remain 
                stationary.
            ``(2) Heavy-duty diesel-powered on-high way vehicle.--The 
        term `heavy-duty diesel-powered on-highway vehicle' means any 
        vehicle, machine, tractor, trailer, or semi-trailer propelled 
        or 21 drawn by mechanical power and used upon the highways in 
        the transportation of passengers or property, or any 
        combination thereof determined by the Federal Highway 
        Administration.
            ``(3) Long-duration idling.--The term `long duration 
        idling' means the operation of a main drive engine, for a 
        period greater than 15 consecutive minutes, where the main 
        drive engine is not engaged in gear. Such term does not apply 
        to routine stop pages associated with traffic movement or 
        congestion.
    ``(d) No Double Benefit.--For purposes of this section--
            ``(1) Reduction in basis.--If a credit is determined under 
        this section with respect to any property by reason of 
        expenditures described in subsection (a), the basis of such 
        property shall be reduced by the amount of the credit so 
        determined.
            ``(2) Other deductions and credits.--No deduction or credit 
        shall be allowed under any other provision of this chapter with 
        respect to the amount of the credit determined under this 
        section.
    ``(e) Election Not To Claim Credit.--This section shall not apply 
to a taxpayer for any taxable year if such taxpayer elects to have this 
section not apply for such taxable year''.
    (b) Credit To Be Part of General Business Credit.--Section 38 of 
such Code (relating to general business credit), as amended by this 
Act, is amended by striking ``plus'' at the end of paragraph (34), by 
striking the period at the end of paragraph (35) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(36) the idling reduction tax credit determined under 
        section 45Q(a).''.
    (c) Conforming Amendments.--
            (1) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 45P the following new item:

``Sec. 45Q. Idling reduction credit.''.
            (2) Section 1016(a) of such Code, as amended by this Act, 
        is amended by striking ``and'' at the end of paragraph (37), by 
        striking the period at the end of paragraph (38) and inserting 
        ``, and'', and by adding at the end the following:
            ``(39) in the case of a facility with respect to which a 
        credit was allowed under section 45Q, to the extent provided in 
        section 45Q(d)(A).''.
            (3) Section 6501(m) of such Code is amended by inserting 
        ``45Q(e),'' after ``45C(d)(4),''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 516. DETERMINATION OF CERTIFICATION STANDARDS BY SECRETARY OF 
              ENERGY FOR CERTIFYING IDLING REDUCTION DEVICES.

    Not later than 6 months after the date of the enactment of this Act 
and in order to reduce air pollution and fuel consumption, the 
Secretary of Energy, in consultation with the Administrator of the 
Environmental Protection Agency and the Secretary of Transportation, 
shall publish the standards under which the Secretary, in consultation 
with the Administrator of the Environmental Protection Agency and the 
Secretary of Transportation, will, for purposes of section 45Q of the 
Internal Revenue Code of 1986 (as added by this Act), certify the 
idling reduction devices which will reduce long-duration idling of 
vehicles at motor vehicle rest stops or other locations where such 
vehicles are temporarily parked or remain stationary in order to reduce 
air pollution and fuel consumption.

SEC. 517. EXTENSION AND MODIFICATION OF ALTERNATIVE MOTOR VEHICLE 
              CREDIT.

    (a) Elimination of Manufacturer Limitation.--
            (1) In general.--Section 30B of the Internal Revenue Code 
        of 1986, as amended by this Act, is amended--
                    (A) by striking subsection (f), and
                    (B) by redesignating subsections (g) through (k) as 
                subsections (f) through (j), respectively.
            (2) Conforming amendments.--
                    (A) Paragraphs (4) and (6) of section 30B (g) of 
                the Internal Revenue Code of 1986 (as redesignated by 
                paragraph (1)) are each amended by striking 
                ``(determined without regard to subsection (g))'' and 
                inserting ``determined without regard to subsection 
                (f))''.
                    (B) Section 38(b)(25) of such Code is amended by 
                striking ``section 30B(g)(1)'' and inserting ``section 
                30B(f)(1)''.
                    (C) Section 55(c)(3) of such Code is amended by 
                striking ``section 30B(g)(2)'' and inserting ``section 
                30B(f)(2)''.
                    (D) Section 1016(a)(36) of such Code is amended by 
                striking ``section 30B(h)(4)'' and inserting ``section 
                30B(g)(4)''.
                    (E) Section 6501(m) of such Code is amended by 
                striking ``section 30B(h)(9)'' and inserting ``section 
                30B(g)(9)''.
    (b) Extension.--Subsection (j) of section 30B of the Internal 
Revenue Code of 1986 (as redesignated by subsection (a)) is amended--
            (1) by striking ``December 31, 2010'' in paragraphs (2) and 
        (4) and inserting ``December 31, 2014'', and
            (2) by striking ``December 31, 2009'' in paragraph (3) and 
        inserting ``December 31, 2012''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of enactment of this 
Act, in taxable years ending after such date.

               Subtitle B--Alternative Fuels and Biofuels

                       PART I--GENERAL PROVISIONS

SEC. 521. BIOENERGY RESEARCH AND DEVELOPMENT.

    (a) In General.--Section 931 of the Energy Policy Act of 2005 (42 
U.S.C. 16231) is amended as follows:
            (1) In subsection (b), by striking paragraphs (3) and (4) 
        and inserting the following:
            ``(3) $3,352,000,000 for fiscal year 2009; and
            ``(4) $3,463,000,000 for fiscal year 2010.''.
            (2) In subsection (c), by striking paragraphs (3) and (4) 
        and inserting the following:
            ``(3) $2,898,000,000 for fiscal year 2009, of which 
        $150,000,000 shall be for section 932(d); and
            ``(4) $2,919,000,000 for fiscal year 2010, of which 
        $150,000,000 shall be for section 932(d).''.
    (b) Pipeline Infrastructure.--Section 212 of the Clean Air Act (42 
U.S.C. 7546) is amended by adding at the end the following:
    ``(f) Pipeline Infrastructure.--
            ``(1) In general.--The Administrator shall provide grants 
        for research into, and development and implementation of, the 
        manner in which pipeline infrastructure can be retrofitted to 
        accommodate biofuels.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection for each of fiscal years 2009 through 
        2014.''.

SEC. 522. ALTERNATIVE FUELED AUTOMOBILE PRODUCTION REQUIREMENT.

    Section 32905 of title 49, United States Code, as amended by 
section 203 of this Act, is further amended by adding at the end the 
following:
    ``(h) Alternative Fueled Automobiles.--Each manufacturer that 
manufactures automobiles for sale or use in the United States shall 
ensure that--
            ``(1) not less than 75 percent of such automobiles 
        manufactured for each of model years 2015 through 2019 are 
        alternative fueled automobiles; and
            ``(2) 100 percent of such automobiles manufactured for 
        model year 2020 and each subsequent model year are alternative 
        fueled automobiles.''.

SEC. 523. DEFINITION OF RENEWABLE BIOMASS.

    Effective January 1, 2009, section 211(o)(1) of the Clean Air Act 
(42 U.S.C.7545(o)(1)), as amended by section 210(c) of the Energy 
Independence and Security Act of 2007 (Public Law 110-140) is amended 
by striking subparagraph (I) and inserting the following:
                    ``(I) Renewable biomass.--The term `renewable 
                biomass' means--
                            ``(i) materials, pre-commercial thinnings, 
                        or invasive species from National Forest System 
                        land and public lands (as defined in section 
                        103 of the Federal Land Policy and Management 
                        Act of 1976 (43 U.S.C. 1702)) that--
                                    ``(I) are byproducts of preventive 
                                treatments that are removed--
                                            ``(aa) to reduce hazardous 
                                        fuels;
                                            ``(bb) to reduce or contain 
                                        disease or insect infestation; 
                                        or
                                            ``(cc) to restore ecosystem 
                                        health;
                                    ``(II) would not otherwise be used 
                                for higher-value products; and
                                    ``(III) are harvested in accordance 
                                with--
                                            ``(aa) applicable law and 
                                        land management plans; and
                                            ``(bb) the requirements 
                                        for--

                                                    ``(AA) old-growth 
                                                maintenance, 
                                                restoration, and 
                                                management direction of 
                                                paragraphs (2), (3), 
                                                and (4) of subsection 
                                                (e) of section 102 of 
                                                the Healthy Forests 
                                                Restoration Act of 2003 
                                                (16 U.S.C. 6512); and

                                                    ``(BB) large-tree 
                                                retention of subsection 
                                                (f) of that section; or

                            ``(ii) any organic matter that is 
                        avail1able on a renewable or recurring basis 
                        from non-Federal land or land belonging to an 
                        Indian or Indian tribe that is held in trust by 
                        the United States or subject to a restriction 
                        against alienation imposed by the United 
                        States, including--
                                    ``(I) renewable plant material, 
                                including--
                                            ``(aa) feed grains;
                                            ``(bb) other agricultural 
                                        commodities;
                                            ``(cc) other plants and 
                                        trees; and
                                            ``(dd) algae; and
                                    ``(II) waste material, including--
                                            ``(aa) crop residue;
                                            ``(bb) other vegetative 
                                        waste material (including wood 
                                        waste and wood residues);
                                            ``(cc) animal waste and by 
                                        products (including fats, oils, 
                                        greases, and manure); and
                                            ``(dd) food waste and yard 
                                        waste.''.

SEC. 524. LOAN GUARANTEES FOR RENEWABLE ENERGY PIPELINES.

    Subtitle C of title II of the Energy Independence and Security Act 
of 2007 (42 U.S.C. 17051 et seq.) is amended by adding at the end the 
following:

``SEC. 249. LOAN GUARANTEES FOR RENEWABLE ENERGY PIPELINES.

    ``(a) Definitions.--In this section:
            ``(1) Cost.--The term `cost' has the meaning given the term 
        `cost of a loan guarantee' in section 502(5)(C) of the Federal 
        Credit Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
            ``(2) Eligible project.--The term eligible project means a 
        project described in subsection (b)(1).
            ``(3) Guarantee.--
                    ``(A) In general.--The term `guarantee' has the 
                meaning given the term `loan guarantee' in section 502 
                of the Federal Credit Reform Act of 1990 (2 U.S.C. 
                661a).
                    ``(B) Inclusion.--The term `guarantee' includes a 
                loan guarantee commitment (as defined in section 502 of 
                the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
            ``(4) Renewable energy pipeline.--The term `renewable 
        energy pipeline' means a common carrier pipeline for 
        transporting renewable energy.
    ``(b) Loan Guarantees.--
            ``(1) In general.--The Secretary shall make guarantees 
        under this section for projects that provide for--
                    ``(A) the construction of new renewable energy 
                pipelines; or
                    ``(B) the modification of pipelines to transport 
                renewable energy.
            ``(2) Eligibility.--In determining the eligibility of a 
        project for a guarantee under this section, the Secretary shall 
        consider--
                    ``(A) the volume of renewable energy to be moved by 
                the renewable energy pipeline;
                    ``(B) the size of the markets to be served by the 
                renewable energy pipeline;
                    ``(C) the existence of sufficient storage to 
                facilitate access to the markets served by the 
                renewable energy pipeline;
                    ``(D) the proximity of the renewable energy 
                pipeline to ethanol production facilities;
                    ``(E) the investment of the entity carrying out the 
                proposed project in terminal infrastructure;
                    ``(F) the experience of the entity carrying out the 
                proposed project in working with renewable energy;
                    ``(G) the ability of the entity carrying out the 
                proposed project to maintain the quality of the 
                renewable energy through--
                            ``(i) the terminal system of the entity; 
                        and
                            ``(ii) the dedicated pipeline system;
                    ``(H) the ability of the entity carrying out the 
                proposed project to complete the project in a timely 
                manner; and
                    ``(I) the ability of the entity carrying out the 
                proposed project to secure property rights of-way in 
                order to move the proposed project forward in a timely 
                manner.
            ``(3) Amount.--Unless otherwise provided bylaw, a guarantee 
        by the Secretary under this section shall not exceed an amount 
        equal to 90 percent of the eligible project cost of the 
        renewable energy pipeline that is the subject of the guarantee, 
        as estimated at the time at which the guarantee is issued or 
        subsequently modified while the eligible project is under 
        construction.
            ``(4) Terms and conditions.--Guarantees under this section 
        shall be provided in accordance with section 1702 of the Energy 
        Policy Act of 2005 (42 U.S.C. 16512), except that subsections 
        (b) and (c) of that section shall not apply to guarantees under 
        this section.
            ``(5) Existing funding authority.--The Secretary shall make 
        a guarantee under this section under an existing funding 
        authority.
            ``(6) Final rule.--Not later than 90 days after the date of 
        enactment of this section, the Secretary shall publish in the 
        Federal Register a final rule directing the Director of the 
        Department of Energy Loan Guarantee Program Office to initiate 
        the loan guarantee program under this section in accordance 
        with this section.
    ``(c) Funding.--
            ``(1) In general.--There are authorized to be appropriated 
        such sums as are necessary to provide guarantees under this 
        section.
            ``(2) Use of other appropriated funds.--To the extent that 
        the amounts made available under title XVII of the Energy 
        Policy Act of 2005 (42 U.S.C. 16511 et seq.) have not been 
        disbursed to programs under that title, the Secretary may use 
        the amounts to carry out this section.''.

                        PART II--TAX PROVISIONS

SEC. 530. REFERENCE.

    Except as otherwise expressly provided, whenever in this part 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.

SEC. 531. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC BIOMASS ALCOHOL 
              FUEL PLANT PROPERTY.

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

SEC. 532. CREDIT FOR PRODUCERS OF FOSSIL FREE ALCOHOL.

    (a) In General.--Subsection (a) of section 40 (relating to alcohol 
used as fuel) is amended by striking ``plus'' at the end of paragraph 
(3), by striking the period at the end of paragraph (4) and inserting 
``, plus'', and by adding at the end the following new paragraph:
            ``(5) the small fossil free alcohol producer credit.''.
    (b) Small Fossil Free Alcohol Producer Credit.--
            (1) In general.--Subsection (b) of section 40 is amended by 
        adding at the end the following new paragraph:
            ``(7) Small fossil free alcohol producer credit.--
                    ``(A) In general.--In addition to any other credit 
                allowed under this section, there shall be allowed as a 
                credit against the tax imposed by this chapter for the 
                taxable year an amount equal to 25 cents for each 
                gallon of qualified fossil free alcohol production.
                    ``(B) Qualified fossil free alcohol production.--
                For purposes of this section, the term `qualified 
                fossil free alcohol production' means alcohol which is 
                produced by an eligible small fossil free alcohol 
                producer at a fossil free alcohol production facility 
                and which during the taxable year--
                            ``(i) is sold by the taxpayer to another 
                        person--
                                    ``(I) for use by such other person 
                                in the production of a qualified 
                                alcohol mixture in such other person's 
                                trade or business (other than casual 
                                off-farm production);
                                    ``(II) for use by such other person 
                                as a fuel in a trade or business; or
                                    ``(III) who sells such alcohol at 
                                retail to another person and places 
                                such alcohol in the fuel tank of such 
                                other person; or
                            ``(ii) is used or sold by the taxpayer for 
                        any purpose described in clause (i).
                    ``(C) Additional distillation excluded.--The 
                qualified fossil free alcohol production of any 
                taxpayer for any taxable year shall not include any 
                alcohol which is purchased by the taxpayer and with 
                respect to which such producer increases the proof of 
                the alcohol by additional distillation.''.
    (c) Eligible Small Fossil Free Alcohol Producer.--Section 40 is 
amended by adding at the end the following new subsection:
    ``(i) Definitions and Special Rules for Small Fossil Free Alcohol 
Producer.--For purposes of this section--
            ``(1) In general.--The term `eligible small fossil free 
        alcohol producer' means a person, who at all times during the 
        taxable year, has a productive capacity for alcohol from all 
        fossil free alcohol production facilities of the taxpayer which 
        is not in excess of 60,000,000 gallons.
            ``(2) Fossil free alcohol production fa2cility.--The term 
        `fossil free alcohol production facility' means any facility at 
        which 90 percent of fuel used in the production of alcohol is 
        from biomass (as defined in section 45K(c)(3)).
            ``(3) Aggregation rule.--For purposes of the 60,000,000 
        gallon limitation under paragraph (1), all members of the same 
        controlled group of corporations (within the meaning of section 
        267(f)) and all persons under common control (within the 
        meaning of section 52(b) but determined by treating an interest 
        of more than 50 percent as a controlling interest) shall be 
        treated as 1 person.
            ``(4) Partnership, s corporations, and other pass-thru 
        entities.--In the case of a partnership, trust, S corporation, 
        or other pass-thru entity, the limitation contained in 
        paragraph (1) shall be applied at the entity level and at the 
        partner or similar level.
            ``(5) Allocation.--For purposes of this sub section, in the 
        case of a facility in which more than 1 person has an interest, 
        productive capacity shall be allocated among such persons in 
        such manner as the Secretary may prescribe.
            ``(6) Regulations.--The Secretary may prescribe such 
        regulations as may be necessary to prevent the credit provided 
        for in subsection (a)(5)25 from directly or indirectly 
        benefitting any person with a direct or indirect productive 
        capacity of more than 60,000,000 gallons of alcohol from fossil 
        free alcohol production facilities during the taxable year.
            ``(7) Allocation of small fossil free alcohol producer 
        credit to patrons of cooperative.--Rules similar to the rules 
        under subsection (g)(6) shall apply for purposes of this 
        subsection.''.
    (d) Alcohol Not Used as a Fuel, etc.--
            (1) In general.--Paragraph (3) of section 40(d) is amended 
        by redesignating subparagraph (E) as subparagraph (F) and by 
        inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) Small fossil free alcohol producer credit.--
                If--
                            ``(i) any credit is allowed under 
                        subsection (a)(5); and
                            ``(ii) any person does not use such fuel 
                        for a purpose described in subsection 
                        (b)(7)(B), then there is hereby imposed on such 
                        person a tax equal to 25 cents for each gallon 
                        of such alcohol.''.
            (2) Conforming amendment.--Subparagraph (F) of section 
        40(d)(3), as redesignated by paragraph (1), is amended by 
        striking ``or (D)'' and inserting ``(D), or (E)''.
    (e) Termination.--Paragraph (1) of section 40(e) is amended--
            (1) in subparagraph (A), by inserting ``(December 31, 2012, 
        in the case of the credit allowed by reason of subsection 
        (a)(5))'' after ``December 31, 2010'', and
            (2) in subparagraph (B), by inserting ``(January 1, 2013, 
        in the case of the credit allowed by reason of subsection 
        (a)(5))'' after ``January 1, 2011''.
    (f) Effective Date.--The amendments made by this section shall 
apply to fuel produced after the date of enactment of this Act.

SEC. 533. EXTENSION AND MODIFICATION OF CREDIT FOR BIODIESEL USED AS 
              FUEL.

    (a) Extension.--
            (1) Income tax credits for biodiesel and renewable diesel 
        and small agri-biodiesel producer credit.--Section 40A(g) 
        (relating to termination) is amended by striking ``December 31, 
        2008'' and inserting ``December 31, 2012''.
            (2) Excise tax credit.--Section 6426(c)(6) (relating to 
        termination) is amended by striking ``2008'' and inserting 
        ``2012''.
            (3) Fuels not used for taxable purposes.--Section 
        6427(e)(5)(B) (relating to termination) is amended by striking 
        ``2008'' and inserting ``2012''.
    (b) Modification of Credit for Renewable Diesel.--
            (1) Eligibility of certain aviation fuel.--Paragraph (3) of 
        section 40A(f) (defining renewable diesel) is amended by adding 
        at the end the following: ``The term `renewable diesel' also 
        means fuel derived from biomass which meets the requirements of 
        a Department of Defense specification for military jet fuel or 
        an American Society of Testing and Materials specification for 
        aviation turbine fuel.''.
            (2) Co-processed renewable diesel.--Section 40A(f) 
        (relating to renewable diesel) is amended by adding at the end 
        the following new paragraph:
            ``(4) Special rule for co-processed renewable diesel.--In 
        the case of a taxpayer which produces renewable diesel through 
        the co-processing of biomass and petroleum at any facility, 
        this subsection shall not apply to so much of the renewable 
        diesel produced at such facility and sold or used during the 
        taxable year in a qualified biodiesel mixture as exceeds 
        60,000,000 gallons.''.
    (c) Modification Relating to Definition of Agri-Biodiesel.--
Paragraph (2) of section 40A(d) (relating to agri-biodiesel) is amended 
by striking ``and mustard seeds'' and inserting ``mustard seeds, and 
camelina''.
    (d) Effective Dates.--The amendments made by this section shall 
apply to fuel sold or used after the date of the enactment of this Act.

SEC. 534. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL CREDIT.

    (a) Extension.--
            (1) Alternative fuel credit.--Paragraph (4) of section 
        6426(d) (relating to alternative fuel credit) is amended by 
        striking ``September 30, 2009'' and inserting ``December 31, 
        2012''.
            (2) Alternative fuel mixture credit.--Paragraph (3) of 
        section 6426(e) (relating to alternative fuel mixture credit) 
        is amended by striking ``September 30, 2009'' and inserting 
        ``December 31, 2012''.
            (3) Payments.--Subparagraph (C) of section 6427(e)(5) 
        (relating to termination) is amended by striking ``September 
        30, 2009'' and inserting ``December 31, 2012''.
    (b) Modifications.--
            (1) Alternative fuel to include compressed or liquified 
        biomass gas.--Paragraph (2) of section 6426(d) (relating to 
        alternative fuel credit) is amended by striking ``and'' at the 
        end of subparagraph (E), by redesignating subparagraph (F) as 
        subparagraph (G), and by inserting after subparagraph (E) the 
        following new subparagraph:
                    ``(F) compressed or liquified biomass gas, and''.
            (2) Credit allowed for aviation use of fuel.--Paragraph (1) 
        of section 6426(d) is amended by inserting ``sold by the 
        taxpayer for use as a fuel in aviation,'' after ``motorboat,''.
    (c) Carbon Capture Requirement for Certain Fuels.--
            (1) In general.--Subsection (d) of section 6426, as amended 
        by subsection (a), is amended by redesignating paragraph (4) as 
        paragraph (5) and by inserting after paragraph (3) the 
        following new paragraph:
            ``(4) Carbon capture requirement.--The requirements of this 
        paragraph are met if the fuel is certified, under such 
        procedures as required by the Secretary, as having been 
        produced at a facility which separates and sequesters not less 
        than 75 percent of such facility's total carbon dioxide 
        emissions.''.
            (2) Conforming amendment.--Subparagraph (E) of section 
        6426(d)(2) is amended by inserting ``which meets the 
        requirements of paragraph (4) and which is'' after ``any liquid 
        fuel''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel sold or 
        used after the date of the enactment of this Act.
            (2) Carbon capture requirements.--The amendments made by 
        subsection (c) shall apply to fuel sold or used after December 
        31, 2008.

SEC. 535. EXTENSION OF SUSPENSION OF TAXABLE INCOME LIMIT ON PERCENTAGE 
              DEPLETION FOR OIL AND NATURAL GAS PRODUCED FROM MARGINAL 
              PROPERTIES.

    Subparagraph (H) of section 613A(c)(6) (relating to oil and gas 
produced from marginal properties) is amended by striking ``January 1, 
2008'' and inserting ``January 1, 2013''.

SEC. 536. EXTENSION AND MODIFICATION OF ELECTION TO EXPENSE CERTAIN 
              REFINERIES.

    (a) Extension.--Paragraph (1) of section 179C(c) (relating to 
qualified refinery property) is amended--
            (1) by striking ``January 1, 2012'' in subparagraph (B) and 
        inserting ``January 1, 2013'', and
            (2) by striking ``January 1, 2008'' each place it appears 
        in subparagraph (F) and inserting ``January 1, 2010''.
    (b) Inclusion of Fuel Derived From Shale and Tar Sands.--
            (1) In general.--Subsection (d) of section 179C is amended 
        by inserting ``, or directly from shale or tar sands'' after 
        ``(as defined in section 45K(c))''.
            (2) Conforming amendment.--Paragraph (2) of section 179C(e) 
        is amended by inserting ``shale, tar sands, or'' before 
        ``qualified fuels''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 537. HYDROGEN INSTALLATION, INFRASTRUCTURE, AND FUEL COSTS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
(relating to foreign tax credit, etc.), as amended by this Act, is 
amended by adding at the end the following new section:

``SEC. 30F. HYDROGEN INSTALLATION, INFRASTRUCTURE, AND FUEL COSTS.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of--
            ``(1) the hydrogen installation and infrastructure costs 
        credit determined under subsection (b), and
            ``(2) the hydrogen fuel costs credit determined under 
        subsection (c).
    ``(b) Hydrogen Installation and Infrastructure Costs Credit.--
            ``(1) In general.--For purposes of subsection (a), the 
        hydrogen installation and infrastructure costs credit 
        determined under this subsection with respect to each eligible 
        hydrogen production and distribution facility of the taxpayer 
        is an amount equal to--
                    ``(A) 30 percent of so much of the installation 
                costs which when added to such costs taken into account 
                with respect to such facility for all preceding taxable 
                years under this subparagraph does not exceed $200,000, 
                plus
                    ``(B) 30 percent of so much of the infrastructure 
                costs for the taxable year as does not exceed $200,000 
                with respect to such facility, and which when added to 
                such costs taken into account with respect to such 
                facility for all preceding taxable years under this 
                subparagraph does not exceed $600,000.
        Nothing in this section shall permit the same cost to be taken 
        into account more than once.
            ``(2) Eligible hydrogen production and distribution 
        facility.--For purposes of this subsection, the term `eligible 
        hydrogen production and distribution facility' means a hydrogen 
        production and distribution facility which is placed in service 
        after December 31, 2008.
    ``(c) Hydrogen Fuel Costs Credit.--
            ``(1) In general.--For purposes of subsection (a), the 
        hydrogen fuel costs credit determined under this subsection 
        with respect to each eligible hydrogen device of the taxpayer 
        is an amount equal to the qualified hydrogen expenditure 
        amounts with respect to such device.
            ``(2) Qualified hydrogen expenditure amount.--For purposes 
        of this subsection--
                    ``(A) In general.--The term `qualified hydrogen 
                expenditure amount' means, with respect to each 
                eligible hydrogen energy conversion device of the 
                taxpayer with a production capacity of not more than 25 
                kilowatts of electricity per year, the lesser of--
                            ``(i) 30 percent of the amount paid or 
                        incurred by the taxpayer during the taxable 
                        year for hydrogen which is consumed by such 
                        device, and
                            ``(ii) $2,000.
                In the case of any device which is not owned by the 
                taxpayer at all times during the taxable year, the 
                $2,000 amount in subparagraph (B) shall be reduced by 
                an amount which bears the same ratio to $2,000 as the 
                portion of the year which such device is not owned by 
                the taxpayer bears to the entire year.
                    ``(B) Higher limitation for devices with more 
                production capacity.--In the case of any eligible 
                hydrogen energy conversion device with a production 
                capacity of--
                            ``(i) more than 25 but less than 100 
                        kilowatts of electricity per year, subparagraph 
                        (A) shall be applied by substituting `$4,000' 
                        for `$2,000' each place it appears; and
                            ``(ii) not less than 100 kilowatts of 
                        electricity per year, subparagraph (A) shall be 
                        applied by substituting `$6,000' for `$2,000' 
                        each place it appears.
            ``(3) Eligible hydrogen energy conversion devices.--For 
        purposes of this subsection--
                    ``(A) In general.--The term `eligible hydrogen 
                energy conversion device' means, with respect to any 
                taxpayer, any hydrogen energy conversion device which--
                            ``(i) is placed in service after December 
                        31, 2004; and
                            ``(ii) is wholly owned by the taxpayer 
                        during the taxable year.
                If an owner of a device (determined without regard to 
                this subparagraph) provides to the primary user of such 
                device a written statement that such user shall be 
                treated as the owner of such device for purposes of 
                this section, then such user (and not such owner) shall 
                be so treated.
                    ``(B) Hydrogen energy conversion device.--The term 
                `hydrogen energy conversion device' means--
                            ``(i) any electrochemical device which 
                        converts hydrogen into electricity; and
                            ``(ii) any combustion engine which burns 
                        hydrogen as a fuel.
    ``(d) Reduction in Basis.--For purposes of this subtitle, if a 
credit is allowed under this section for any expenditure with respect 
to any property, the increase in the basis of such property which would 
(but for this paragraph) result from such expenditure shall be reduced 
by the amount of the credit so allowed.
    ``(e) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to amounts which (but 
        for subsection (g) would be allowed as a deduction under 
        section 162 shall be treated as a credit listed in section 
        38(b) for such taxable year (and not allowed under subsection 
        (a)).
            ``(2) Personal credit.--The credit allowed under subsection 
        (a) (after the application of paragraph (1)) for any taxable 
        year shall not exceed the excess (if any) of--
                    ``(A) the regular tax liability (as defined in 
                section 26(b)) reduced by the sum of the credits 
                allowable under subpart A and sections 27, 30, 30B, and 
                30C, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
    ``(f) Denial of Double Benefit.--The amount of any deduction or 
other credit allowable under this chapter for any cost taken into 
account in determining the amount of the credit under subsection (a) 
shall be reduced by the amount of such credit attributable to such 
cost.
    ``(g) Recapture.--The Secretary shall, by regulations, provided for 
recapturing the benefit of any credit allowable under subsection (a) 
with respect to any property which ceases to be property eligible for 
such credit.
    ``(h) Election Not To Take Credit.--No credit shall be allowed 
under subsection (a) for any property if the taxpayer elects not to 
have this section apply to such property.
    ``(i) Regulations.--The Secretary shall prescribe such regulations 
as necessary to carry out the provisions of this section.
    ``(j) Termination.--This section shall not apply to any costs after 
December 31, 2012.''.
    (b) Conforming Amendments.--
            (1) Section 38(b), as amended by this Act, is amended by 
        striking ``plus'' at the end of paragraph (35), by striking the 
        period at the end of paragraph (36) and inserting ``plus'', and 
        by adding at the end the following new paragraph:
            ``(37) the portion of the hydrogen installation, 
        infrastructure, and fuel credit to which section 30F(e)(1) 
        applies.''.
            (2) Section 55(c)(3), as amended by this Act, is amended by 
        inserting ``30F(e)(2),'' after ``30C(d)(2),''.
            (3) Section 1016(a), as amended by this Act, is amended by 
        striking ``and'' at the end of paragraph (38), by striking the 
        period at the end of paragraph (39) and inserting ``, and'', 
        and by adding at the end the following new paragraph:
            ``(40) to the extent provided in section 30F(d).''.
            (4) Section 6501(m), as amended by this Act, is amended by 
        inserting ``30F(h),'' after ``30E(c)(3),''.
            (5) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 is amended by inserting after the 
        item relating to section 30E the following new item:

``Sec. 30F. Hydrogen installation, infrastructure, and fuel costs.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 538. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

    (a) Increase in Credit Amount.--Section 30C is amended--
            (1) by striking ``30 percent'' in subsection (a) and 
        inserting ``50 percent'', and
            (2) by striking ``$30,000'' in subsection (b)(1) and 
        inserting ``$50,000''.
    (b) Extension of Credit.--Paragraph (2) of section 30C(g) is 
amended by striking ``December 31, 2009'' and inserting ``December 31, 
2012''.
    (c) Inclusion of Electricity as a Clean-Burning Fuel.--Section 
30C(c)(2) is amended by adding at the end the following new 
subparagraph:
                    ``(C) Electricity.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 539. CERTAIN INCOME AND GAINS RELATING TO ALCOHOL FUELS AND 
              MIXTURES, BIODIESEL FUELS AND MIXTURES, AND ALTERNATIVE 
              FUELS AND MIXTURES TREATED AS QUALIFYING INCOME FOR 
              PUBLICLY TRADED PARTNERSHIPS.

    (a) In General.--Subparagraph (E) of section 7704(d)(1) is amended 
by inserting ``, or the transportation, storage, or marketing of any 
fuel described in subsection (b), (c), (d), or (e) of section 6426, or 
any alcohol fuel defined in section 6426(b)(4)(A) or any biodiesel fuel 
as defined in section 40A(d)(1)'' after ``timber)''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act, in taxable years 
ending after such date.

                      Subtitle C--Other Provisions

                       PART I--GENERAL PROVISIONS

SEC. 541. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANTS.

    Section 544 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17154) is amended--
            (1) in paragraph (13), by striking ``and'' at the end;
            (2) by redesignating paragraph (14) as paragraph (15); and
            (3) by inserting after paragraph (13) the following:
            ``(14) development, implementation, and installation of 
        smart grid technologies and smart grid functions (as defined in 
        section 1306(d)); and''.

SEC. 542. WEATHERIZATION ASSISTANCE PROGRAM FOR LOW-INCOME PERSONS.

    (a) In General.--Section 422 of the Energy Conservation and 
Production Act (42 U.S.C. 6872) is amended--
            (1) by striking the section heading and all that follows 
        through ``For the purpose'' and inserting the following:

``SEC. 422 FUNDING.

    ``(a) Discretionary Funding.--For the purpose'';
            (1) by striking ``fiscal year 2008'' and inserting ``each 
        of fiscal years 2008 through 2012''; and
            (2) by adding at the end the following:
    ``(b) Mandatory Funding.--
            ``(1) In general.--In addition to any amounts made 
        available under subsection (a), on October 1, 2008, and on each 
        October 1 thereafter through October 1, 2011, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        part $500,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this part the funds transferred under paragraph (1), without 
        further appropriation.''.
    (b) Conforming Amendments.--Section 415 of the Energy Conservation 
and Production Act (42 U.S.C. 6865) is amended by striking ``section 
422(b)'' each place it appears in subsections (d) and (e)(1)(A) and 
inserting ``section 422''.

SEC. 543. RENEWABLE ENERGY WORKFORCE.

    Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is 
amended--
            (1) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) renewable energy product and service 
                industries.'';
            (2) by redesignating subsection (d) as subsection (e); and
            (3) by inserting after subsection (c) the following:
    ``(d) Workforce Training.--
            ``(1) In general.--The Secretary of Labor, in cooperation 
        with the Secretary, shall promulgate regulations to implement a 
        program to provide grants to enhance workforce training for any 
        occupation in the workforce of the renewable energy products 
        and services industries for which a shortage is identified or 
        predicted in the report under subsection (b)(2).
            ``(2) Consultation.--In carrying out this subsection, the 
        Secretary of Labor shall consult with representatives of the 
        renewable energy industry and renewable energy products and 
        services industries, including organized labor organizations 
        and other stakeholders.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary of Labor, 
        working in coordination with the Secretary and the Secretary of 
        Education, $20,000,000 for each of fiscal years 2009 through 
        2013 to carry out this subsection.''.

                        PART II--TAX PROVISIONS

SEC. 550. REFERENCE.

    Except as otherwise expressly provided, whenever in this part 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.

                 Subpart A--Renewable Energy Incentives

SEC. 551. RENEWABLE ENERGY CREDIT.

    (a) Extension of Credit.--
            (1) 4-year extension for wind facilities.--Paragraph (1) of 
        section 45(d) is amended by striking ``January 1, 2009'' and 
        inserting ``January 1, 2013''.
            (2) 4-year extension for certain other facilities.--Each of 
        the following provisions of section 45(d) is amended by 
        striking ``January 1, 2009'' and inserting ``January 1, 2013'':
                    (A) Clauses (i) and (ii) of paragraph (2)(A).
                    (B) Clauses (i)(I) and (ii) of paragraph (3)(A).
                    (C) Paragraph (4).
                    (D) Paragraph (5).
                    (E) Paragraph (6).
                    (F) Paragraph (7).
                    (G) Subparagraphs (A) and (B) of paragraph (9).
    (b) Modification of Credit Phaseout.--
            (1) Repeal of phaseout.--Subsection (b) of section 45 is 
        amended--
                    (A) by striking paragraph (1), and
                    (B) by striking ``the 8 cent amount in paragraph 
                (1),'' in paragraph (2) thereof.
            (2) Limitation based on investment in facility.--Subsection 
        (b) of section 45 is amended by inserting before paragraph (2) 
        the following new paragraph:
            ``(1) Limitation based on investment in facility.--
                    ``(A) In general.--In the case of any qualified 
                facility originally placed in service after December 
                31, 2009, the amount of the credit determined under 
                subsection (a) for any taxable year with respect to 
                electricity produced at such facility shall not exceed 
                the product of--
                            ``(i) the applicable percentage with 
                        respect to such facility, multiplied by
                            ``(ii) the eligible basis of such facility.
                    ``(B) Carryforward of unused limitation and excess 
                credit.--
                            ``(i) Unused limitation.--If the limitation 
                        imposed under subparagraph (A) with respect to 
                        any facility for any taxable year exceeds the 
                        prelimitation credit for such facility for such 
                        taxable year, the limitation imposed under 
                        subparagraph (A) with respect to such facility 
                        for the succeeding taxable year shall be 
                        increased by the amount of such excess.
                            ``(ii) Excess credit.--If the prelimitation 
                        credit with respect to any facility for any 
                        taxable year exceeds the limitation imposed 
                        under subparagraph (A) with respect to such 
                        facility for such taxable year, the credit 
                        determined under subsection (a) with respect to 
                        such facility for the succeeding taxable year 
                        (determined before the application of 
                        subparagraph (A) for such succeeding taxable 
                        year) shall be increased by the amount of such 
                        excess. With respect to any facility, no amount 
                        may be carried forward under this clause to any 
                        taxable year beginning after the 10-year period 
                        described in subsection (a)(2)(A)(ii) with 
                        respect to such facility.
                            ``(iii) Prelimitation credit.--The term 
                        `prelimitation credit' with respect to any 
                        facility for a taxable year means the credit 
                        determined under subsection (a) with respect to 
                        such facility for such taxable year, determined 
                        without regard to subparagraph (A) and after 
                        taking into account any increase for such 
                        taxable year under clause (ii).
                    ``(C) Applicable percentage.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `applicable 
                        percentage' means, with respect to any 
                        facility, the appropriate percentage prescribed 
                        by the Secretary for the month in which such 
                        facility is originally placed in service.
                            ``(ii) Method of prescribing applicable 
                        percentages.--The applicable percentages 
                        prescribed by the Secretary for any month under 
                        clause (i) shall be percentages which yield 
                        over a 10-year period amounts of limitation 
                        under subparagraph (A) which have a present 
                        value equal to 35 percent of the eligible basis 
                        of the facility.
                            ``(iii) Method of discounting.--The present 
                        value under clause (ii) shall be determined--
                                    ``(I) as of the last day of the 1st 
                                year of the 10-year period referred to 
                                in clause (ii),
                                    ``(II) by using a discount rate 
                                equal to the greater of 110 percent of 
                                the Federal long-term rate as in effect 
                                under section 1274(d) for the month 
                                preceding the month for which the 
                                applicable percentage is being 
                                prescribed, or 4.5 percent, and
                                    ``(III) by taking into account the 
                                limitation under subparagraph (A) for 
                                any year on the last day of such year.
                    ``(D) Eligible basis.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `eligible 
                        basis' means, with respect to any facility, the 
                        sum of--
                                    ``(I) the basis of such facility 
                                determined as of the time that such 
                                facility is originally placed in 
                                service, and
                                    ``(II) the portion of the basis of 
                                any shared qualified property which is 
                                properly allocable to such facility 
                                under clause (ii).
                            ``(ii) Rules for allocation.--For purposes 
                        of subclause (II) of clause (i), the basis of 
                        shared qualified property shall be allocated 
                        among all qualified facilities which are 
                        projected to be placed in service and which 
                        require utilization of such property in 
                        proportion to projected generation from such 
                        facilities.
                            ``(iii) Shared qualified property.--For 
                        purposes of this paragraph, the term `shared 
                        qualified property' means, with respect to any 
                        facility, any property described in section 
                        168(e)(3)(B)(vi)--
                                    ``(I) which a qualified facility 
                                will require for utilization of such 
                                facility, and
                                    ``(II) which is not a qualified 
                                facility.
                            ``(iv) Special rule relating to geothermal 
                        facilities.--In the case of any qualified 
                        facility using geothermal energy to produce 
                        electricity, the basis of such facility for 
                        purposes of this paragraph shall be determined 
                        as though intangible drilling and development 
                        costs described in section 263(c) were 
                        capitalized rather than expensed.
                    ``(E) Special rule for first and last year of 
                credit period.--In the case of any taxable year any 
                portion of which is not within the 10-year period 
                described in subsection (a)(2)(A)(ii) with respect to 
                any facility, the amount of the limitation under 
                subparagraph (A) with respect to such facility shall be 
                reduced by an amount which bears the same ratio to the 
                amount of such limitation (determined without regard to 
                this subparagraph) as such portion of the taxable year 
                which is not within such period bears to the entire 
                taxable year.
                    ``(F) Election to treat all facilities placed in 
                service in a year as 1 facility.--At the election of 
                the taxpayer, all qualified facilities which are part 
                of the same project and which are placed in service 
                during the same calendar year shall be treated for 
                purposes of this section as 1 facility which is placed 
                in service at the mid-point of such year or the first 
                day of the following calendar year.''.
    (c) Trash Facility Clarification.--Paragraph (7) of section 45(d) 
is amended--
            (1) by striking ``facility which burns'' and inserting 
        ``facility (other than a facility described in paragraph (6)) 
        which uses'', and
            (2) by striking ``combustion''.
    (d) Expansion of Biomass Facilities.--
            (1) Open-loop biomass facilities.--Paragraph (3) of section 
        45(d) is amended by redesignating subparagraph (B) as 
        subparagraph (C) and by inserting after subparagraph (A) the 
        following new subparagraph:
                    ``(B) Expansion of facility.--Such term shall 
                include a new unit placed in service after the date of 
                the enactment of this subparagraph in connection with a 
                facility described in subparagraph (A), but only to the 
                extent of the increased amount of electricity produced 
                at the facility by reason of such new unit.''.
            (2) Closed-loop biomass facilities.--Paragraph (2) of 
        section 45(d) is amended by redesignating subparagraph (B) as 
        subparagraph (C) and inserting after subparagraph (A) the 
        following new subparagraph:
                    ``(B) Expansion of facility.--Such term shall 
                include a new unit placed in service after the date of 
                the enactment of this subparagraph in connection with a 
                facility described in subparagraph (A)(i), but only to 
                the extent of the increased amount of electricity 
                produced at the facility by reason of such new unit.''.
    (e) Sales of Net Electricity to Regulated Public Utilities Treated 
as Sales to Unrelated Persons.--Paragraph (4) of section 45(e) is 
amended by adding at the end the following new sentence: ``The net 
amount of electricity sold by any taxpayer to a regulated public 
utility (as defined in section 7701(a)(33)) shall be treated as sold to 
an unrelated person.''.
    (f) Modification of Rules for Hydropower Production.--Subparagraph 
(C) of section 45(c)(8) is amended to read as follows:
                    ``(C) Nonhydroelectric dam.--For purposes of 
                subparagraph (A), a facility is described in this 
                subparagraph if--
                            ``(i) the hydroelectric project installed 
                        on the nonhydroelectric dam is licensed by the 
                        Federal Energy Regulatory Commission and meets 
                        all other applicable environmental, licensing, 
                        and regulatory requirements,
                            ``(ii) the nonhydroelectric dam was placed 
                        in service before the date of the enactment of 
                        this paragraph and operated for flood control, 
                        navigation, or water supply purposes and did 
                        not produce hydroelectric power on the date of 
                        the enactment of this paragraph, and
                            ``(iii) the hydroelectric project is 
                        operated so that the water surface elevation at 
                        any given location and time that would have 
                        occurred in the absence of the hydroelectric 
                        project is maintained, subject to any license 
                        requirements imposed under applicable law that 
                        change the water surface elevation for the 
                        purpose of improving environmental quality of 
                        the affected waterway.
                The Secretary, in consultation with the Federal Energy 
                Regulatory Commission, shall certify if a hydroelectric 
                project licensed at a nonhydroelectric dam meets the 
                criteria in clause (iii). Nothing in this section shall 
                affect the standards under which the Federal Energy 
                Regulatory Commission issues licenses for and regulates 
                hydropower projects under part I of the Federal Power 
                Act.''.
    (g) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        property originally placed in service after December 31, 2008.
            (2) Repeal of credit phaseout.--The amendments made by 
        subsection (b)(1) shall apply to taxable years ending after 
        December 31, 2008.
            (3) Limitation based on investment in facility.--The 
        amendment made by subsection (b)(2) shall apply to property 
        originally placed in service after December 31, 2009.
            (4) Trash facility clarification; sales to related 
        regulated public utilities.--The amendments made by subsections 
        (c) and (e) shall apply to electricity produced and sold after 
        the date of the enactment of this Act.
            (5) Expansion of biomass facilities.--The amendments made 
        by subsection (d) shall apply to property placed in service 
        after the date of the enactment of this Act.

SEC. 552. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE 
              RENEWABLES.

    (a) In General.--Paragraph (1) of section 45(c) is amended by 
striking ``and'' at the end of subparagraph (G), by striking the period 
at the end of subparagraph (H) and inserting ``, and'', and by adding 
at the end the following new subparagraph:
                    ``(I) marine and hydrokinetic renewable energy.''.
    (b) Marine Renewables.--Subsection (c) of section 45 is amended by 
adding at the end the following new paragraph:
            ``(10) Marine and hydrokinetic renewable energy.--
                    ``(A) In general.--The term `marine and 
                hydrokinetic renewable energy' means energy derived 
                from--
                            ``(i) waves, tides, and currents in oceans, 
                        estuaries, and tidal areas,
                            ``(ii) free flowing water in rivers, lakes, 
                        and streams,
                            ``(iii) free flowing water in an irrigation 
                        system, canal, or other man-made channel, 
                        including projects that utilize nonmechanical 
                        structures to accelerate the flow of water for 
                        electric power production purposes, or
                            ``(iv) differentials in ocean temperature 
                        (ocean thermal energy conversion).
                    ``(B) Exceptions.--Such term shall not include any 
                energy which is derived from any source which utilizes 
                a dam, diversionary structure (except as provided in 
                subparagraph (A)(iii)), or impoundment for electric 
                power production purposes.''.
    (c) Definition of Facility.--Subsection (d) of section 45 is 
amended by adding at the end the following new paragraph:
            ``(11) Marine and hydrokinetic renewable energy 
        facilities.--In the case of a facility producing electricity 
        from marine and hydrokinetic renewable energy, the term 
        `qualified facility' means any facility owned by the taxpayer--
                    ``(A) which has a nameplate capacity rating of at 
                least 150 kilowatts, and
                    ``(B) which is originally placed in service on or 
                after the date of the enactment of this paragraph and 
                before January 1, 2012.''.
    (d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is amended 
by striking ``or (9)'' and inserting ``(9), or (11)''.
    (e) Coordination With Small Irrigation Power.--Paragraph (5) of 
section 45(d), as amended by section 101, is amended by striking 
``January 1, 2012'' and inserting ``the date of the enactment of 
paragraph (11)''.
    (f) Effective Date.--The amendments made by this section shall 
apply to electricity produced and sold after the date of the enactment 
of this Act, in taxable years ending after such date.

SEC. 553. ENERGY CREDIT.

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

SEC. 554. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

    (a) Extension.--Section 25D(g) is amended by striking ``December 
31, 2008'' and inserting ``December 31, 2014''.
    (b) Maximum Credit for Solar Electric Property.--
            (1) In general.--Section 25D(b)(1)(A) is amended by 
        striking ``$2,000'' and inserting ``$4,000''.
            (2) Conforming amendment.--Section 25D(e)(4)(A)(i) is 
        amended by striking ``$6,667'' and inserting ``$13,333''.
    (c) Credit for Residential Wind Property.--
            (1) In general.--Section 25D(a) is amended by striking 
        ``and'' at the end of paragraph (2), by striking the period at 
        the end of paragraph (3) and inserting ``, and'', and by adding 
        at the end the following new paragraph:
            ``(4) 30 percent of the qualified small wind energy 
        property expenditures made by the taxpayer during such year.''.
            (2) Limitation.--Section 25D(b)(1) is amended by striking 
        ``and'' at the end of subparagraph (B), by striking the period 
        at the end of subparagraph (C) and inserting ``, and'', and by 
        adding at the end the following new subparagraph:
                    ``(D) $500 with respect to each half kilowatt of 
                capacity (not to exceed $4,000) of wind turbines for 
                which qualified small wind energy property expenditures 
                are made.''.
            (3) Qualified small wind energy property expenditures.--
                    (A) In general.--Section 25D(d) is amended by 
                adding at the end the following new paragraph:
            ``(4) Qualified small wind energy property expenditure.--
        The term `qualified small wind energy property expenditure' 
        means an expenditure for property which uses a wind turbine to 
        generate electricity for use in connection with a dwelling unit 
        located in the United States and used as a residence by the 
        taxpayer.''.
                    (B) No double benefit.--Section 45(d)(1) is amended 
                by adding at the end the following new sentence: ``Such 
                term shall not include any facility with respect to 
                which any qualified small wind energy property 
                expenditure (as defined in subsection (d)(4) of section 
                25D) is taken into account in determining the credit 
                under such section.''.
            (4) Maximum expenditures in case of joint occupancy.--
        Section 25D(e)(4)(A) is amended by striking ``and'' at the end 
        of clause (ii), by striking the period at the end of clause 
        (iii) and inserting ``, and'', and by adding at the end the 
        following new clause:
                            ``(iv) $1,667 in the case of each half 
                        kilowatt of capacity (not to exceed $13,333) of 
                        wind turbines for which qualified small wind 
                        energy property expenditures are made.''.
    (d) Credit for Geothermal Heat Pump Systems.--
            (1) In general.--Section 25D(a), as amended by subsection 
        (c), is amended by striking ``and'' at the end of paragraph 
        (3), by striking the period at the end of paragraph (4) and 
        inserting ``, and'', and by adding at the end the following new 
        paragraph:
            ``(5) 30 percent of the qualified geothermal heat pump 
        property expenditures made by the taxpayer during such year.''.
            (2) Limitation.--Section 25D(b)(1), as amended by 
        subsection (c), is amended by striking ``and'' at the end of 
        subparagraph (C), by striking the period at the end of 
        subparagraph (D) and inserting ``, and'', and by adding at the 
        end the following new subparagraph:
                    ``(E) $2,000 with respect to any qualified 
                geothermal heat pump property expenditures.''.
            (3) Qualified geothermal heat pump property expenditure.--
        Section 25D(d), as amended by subsection (c), is amended by 
        adding at the end the following new paragraph:
            ``(5) Qualified geothermal heat pump property 
        expenditure.--
                    ``(A) In general.--The term `qualified geothermal 
                heat pump property expenditure' means an expenditure 
                for qualified geothermal heat pump property installed 
                on or in connection with a dwelling unit located in the 
                United States and used as a residence by the taxpayer.
                    ``(B) Qualified geothermal heat pump property.--The 
                term `qualified geothermal heat pump property' means 
                any equipment which--
                            ``(i) uses the ground or ground water as a 
                        thermal energy source to heat the dwelling unit 
                        referred to in subparagraph (A) or as a thermal 
                        energy sink to cool such dwelling unit, and
                            ``(ii) meets the requirements of the Energy 
                        Star program which are in effect at the time 
                        that the expenditure for such equipment is 
                        made.''.
            (4) Maximum expenditures in case of joint occupancy.--
        Section 25D(e)(4)(A), as amended by subsection (c), is amended 
        by striking ``and'' at the end of clause (iii), by striking the 
        period at the end of clause (iv) and inserting ``, and'', and 
        by adding at the end the following new clause:
                            ``(v) $6,667 in the case of any qualified 
                        geothermal heat pump property expenditures.''.
    (e) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Subsection (c) of section 25D is amended 
        to read as follows:
    ``(c) Limitation Based on Amount of Tax; Carryforward of Unused 
Credit.--
            ``(1) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for the taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.
            ``(2) Carryforward of unused credit.--
                    ``(A) Rule for years in which all personal credits 
                allowed against regular and alternative minimum tax.--
                In the case of a taxable year to which section 26(a)(2) 
                applies, if the credit allowable under subsection (a) 
                exceeds the limitation imposed by section 26(a)(2) for 
                such taxable year reduced by the sum of the credits 
                allowable under this subpart (other than this section), 
                such excess shall be carried to the succeeding taxable 
                year and added to the credit allowable under subsection 
                (a) for such succeeding taxable year.
                    ``(B) Rule for other years.--In the case of a 
                taxable year to which section 26(a)(2) does not apply, 
                if the credit allowable under subsection (a) exceeds 
                the limitation imposed by paragraph (1) for such 
                taxable year, such excess shall be carried to the 
                succeeding taxable year and added to the credit 
                allowable under subsection (a) for such succeeding 
                taxable year.''.
            (2) Conforming amendments.--
                    (A) Section 23(b)(4)(B) is amended by inserting 
                ``and section 25D'' after ``this section''.
                    (B) Section 24(b)(3)(B) is amended by striking 
                ``and 25B'' and inserting ``, 25B, and 25D''.
                    (C) Section 25B(g)(2) is amended by striking 
                ``section 23'' and inserting ``sections 23 and 25D''.
                    (D) Section 26(a)(1) is amended by striking ``and 
                25B'' and inserting ``25B, and 25D''.
    (f) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2007.
            (2) Application of egtrra sunset.--The amendments made by 
        subparagraphs (A) and (B) of subsection (e)(2) shall be subject 
        to title IX of the Economic Growth and Tax Relief 
        Reconciliation Act of 2001 in the same manner as the provisions 
        of such Act to which such amendments relate.

SEC. 555. SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC 
              RESTRUCTURING POLICY.

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

SEC. 556. NEW CLEAN RENEWABLE ENERGY BONDS.

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

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

    ``(a) New Clean Renewable Energy Bond.--For purposes of this 
subpart, the term `new clean renewable energy bond' means any bond 
issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for capital expenditures incurred by 
        public power providers or cooperative electric companies for 
        one or more qualified renewable energy facilities,
            ``(2) the bond is issued by a qualified issuer, and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Reduced Credit Amount.--The annual credit determined under 
section 54A(b) with respect to any new clean renewable energy bond 
shall be 70 percent of the amount so determined without regard to this 
subsection.
    ``(c) Limitation on Amount of Bonds Designated.--
            ``(1) In general.--The maximum aggregate face amount of 
        bonds which may be designated under subsection (a) by any 
        issuer shall not exceed the limitation amount allocated under 
        this subsection to such issuer.
            ``(2) National limitation on amount of bonds designated.--
        There is a national new clean renewable energy bond limitation 
        of $2,000,000,000 which shall be allocated by the Secretary as 
        provided in paragraph (3), except that--
                    ``(A) not more than 33\1/3\ percent thereof may be 
                allocated to qualified projects of public power 
                providers,
                    ``(B) not more than 33\1/3\ percent thereof may be 
                allocated to qualified projects of governmental bodies, 
                and
                    ``(C) not more than 33\1/3\ percent thereof may be 
                allocated to qualified projects of cooperative electric 
                companies.
            ``(3) Method of allocation.--
                    ``(A) Allocation among public power providers.--
                After the Secretary determines the qualified projects 
                of public power providers which are appropriate for 
                receiving an allocation of the national new clean 
                renewable energy bond limitation, the Secretary shall, 
                to the maximum extent practicable, make allocations 
                among such projects in such manner that the amount 
                allocated to each such project bears the same ratio to 
                the cost of such project as the limitation under 
                paragraph (2)(A) bears to the cost of all such 
                projects.
                    ``(B) Allocation among governmental bodies and 
                cooperative electric companies.--The Secretary shall 
                make allocations of the amount of the national new 
                clean renewable energy bond limitation described in 
                paragraphs (2)(B) and (2)(C) among qualified projects 
                of governmental bodies and cooperative electric 
                companies, respectively, in such manner as the 
                Secretary determines appropriate.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified renewable energy facility.--The term 
        `qualified renewable energy facility' means a qualified 
        facility (as determined under section 45(d) without regard to 
        paragraphs (8) and (10) thereof and to any placed in service 
        date) owned by a public power provider, a governmental body, or 
        a cooperative electric company.
            ``(2) Public power provider.--The term `public power 
        provider' means a State utility with a service obligation, as 
        such terms are defined in section 217 of the Federal Power Act 
        (as in effect on the date of the enactment of this paragraph).
            ``(3) Governmental body.--The term `governmental body' 
        means any State or Indian tribal government, or any political 
        subdivision thereof.
            ``(4) Cooperative electric company.--The term `cooperative 
        electric company' means a mutual or cooperative electric 
        company described in section 501(c)(12) or section 
        1381(a)(2)(C).
            ``(5) Clean renewable energy bond lender.--The term `clean 
        renewable energy bond lender' means a lender which is a 
        cooperative which is owned by, or has outstanding loans to, 100 
        or more cooperative electric companies and is in existence on 
        February 1, 2002, and shall include any affiliated entity which 
        is controlled by such lender.
            ``(6) Qualified issuer.--The term `qualified issuer' means 
        a public power provider, a cooperative electric company, a 
        governmental body, a clean renewable energy bond lender, or a 
        not-for-profit electric utility which has received a loan or 
        loan guarantee under the Rural Electrification Act.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d) is amended to read as 
        follows:
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means--
                    ``(A) a qualified forestry conservation bond, or
                    ``(B) a new clean renewable energy bond,
        which is part of an issue that meets requirements of paragraphs 
        (2), (3), (4), (5), and (6).''.
            (2) Subparagraph (C) of section 54A(d)(2) is amended to 
        read as follows:
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means--
                            ``(i) in the case of a qualified forestry 
                        conservation bond, a purpose specified in 
                        section 54B(e), and
                            ``(ii) in the case of a new clean renewable 
                        energy bond, a purpose specified in section 
                        54C(a)(1).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 54C. New clean renewable energy bonds.''.
    (c) Application of Certain Labor Standards on Projects Financed 
Under Tax Credit Bonds.--Subchapter IV of chapter 31 of title 40, 
United States Code, shall apply to projects financed with the proceeds 
of any tax credit bond (as defined in section 54A of the Internal 
Revenue Code of 1986) other than qualified forestry conservation bonds 
(as defined in section 54B of such Code).
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

                Subpart B--Carbon Mitigation Provisions

SEC. 561. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT 
              INVESTMENT CREDIT.

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

SEC. 562. EXPANSION AND MODIFICATION OF COAL GASIFICATION INVESTMENT 
              CREDIT.

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

SEC. 563. TEMPORARY INCREASE IN COAL EXCISE TAX.

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

SEC. 564. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO CERTAIN 
              COAL PRODUCERS AND EXPORTERS.

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

SEC. 565. CARBON AUDIT OF THE TAX CODE.

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

             Subpart C--Energy Conservation and Efficiency

SEC. 571. QUALIFIED ENERGY CONSERVATION BONDS.

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

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

    ``(a) Qualified Energy Conservation Bond.--For purposes of this 
subchapter, the term `qualified energy conservation bond' means any 
bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for one or more qualified conservation 
        purposes,
            ``(2) the bond is issued by a State or local government, 
        and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Reduced Credit Amount.--The annual credit determined under 
section 54A(b) with respect to any qualified energy conservation bond 
shall be 70 percent of the amount so determined without regard to this 
subsection.
    ``(c) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) by any issuer shall not exceed the limitation amount allocated to 
such issuer under subsection (e).
    ``(d) National Limitation on Amount of Bonds Designated.--There is 
a national qualified energy conservation bond limitation of 
$3,000,000,000.
    ``(e) Allocations.--
            ``(1) In general.--The limitation applicable under 
        subsection (d) shall be allocated by the Secretary among the 
        States in proportion to the population of the States.
            ``(2) Allocations to largest local governments.--
                    ``(A) In general.--In the case of any State in 
                which there is a large local government, each such 
                local government shall be allocated a portion of such 
                State's allocation which bears the same ratio to the 
                State's allocation (determined without regard to this 
                subparagraph) as the population of such large local 
                government bears to the population of such State.
                    ``(B) Allocation of unused limitation to state.--
                The amount allocated under this subsection to a large 
                local government may be reallocated by such local 
                government to the State in which such local government 
                is located.
                    ``(C) Large local government.--For purposes of this 
                section, the term `large local government' means any 
                municipality or county if such municipality or county 
                has a population of 100,000 or more.
            ``(3) Allocation to issuers; restriction on private 
        activity bonds.--Any allocation under this subsection to a 
        State or large local government shall be allocated by such 
        State or large local government to issuers within the State in 
        a manner that results in not less than 70 percent of the 
        allocation to such State or large local government being used 
        to designate bonds which are not private activity bonds.
    ``(f) Qualified Conservation Purpose.--For purposes of this 
section--
            ``(1) In general.--The term `qualified conservation 
        purpose' means any of the following:
                    ``(A) Capital expenditures incurred for purposes 
                of--
                            ``(i) reducing energy consumption in 
                        publicly owned buildings by at least 20 
                        percent,
                            ``(ii) implementing green community 
                        programs,
                            ``(iii) rural development involving the 
                        production of electricity from renewable energy 
                        resources, or
                            ``(iv) any qualified facility (as 
                        determined under section 45(d) without regard 
                        to paragraphs (8) and (10) thereof and without 
                        regard to any placed in service date).
                    ``(B) Expenditures with respect to research 
                facilities, and research grants, to support research 
                in--
                            ``(i) development of cellulosic ethanol or 
                        other nonfossil fuels,
                            ``(ii) technologies for the capture and 
                        sequestration of carbon dioxide produced 
                        through the use of fossil fuels,
                            ``(iii) increasing the efficiency of 
                        existing technologies for producing nonfossil 
                        fuels,
                            ``(iv) automobile battery technologies and 
                        other technologies to reduce fossil fuel 
                        consumption in transportation, or
                            ``(v) technologies to reduce energy use in 
                        buildings.
                    ``(C) Mass commuting facilities and related 
                facilities that reduce the consumption of energy, 
                including expenditures to reduce pollution from 
                vehicles used for mass commuting.
                    ``(D) Demonstration projects designed to promote 
                the commercialization of--
                            ``(i) green building technology,
                            ``(ii) conversion of agricultural waste for 
                        use in the production of fuel or otherwise,
                            ``(iii) advanced battery manufacturing 
                        technologies,
                            ``(iv) technologies to reduce peak use of 
                        electricity, or
                            ``(v) technologies for the capture and 
                        sequestration of carbon dioxide emitted from 
                        combusting fossil fuels in order to produce 
                        electricity.
                    ``(E) Public education campaigns to promote energy 
                efficiency.
            ``(2) Special rules for private activity bonds.--For 
        purposes of this section, in the case of any private activity 
        bond, the term `qualified conservation purposes' shall not 
        include any expenditure which is not a capital expenditure.
    ``(g) Population.--
            ``(1) In general.--The population of any State or local 
        government shall be determined for purposes of this section as 
        provided in section 146(j) for the calendar year which includes 
        the date of the enactment of this section.
            ``(2) Special rule for counties.--In determining the 
        population of any county for purposes of this section, any 
        population of such county which is taken into account in 
        determining the population of any municipality which is a large 
        local government shall not be taken into account in determining 
        the population of such county.
    ``(h) Application to Indian Tribal Governments.--An Indian tribal 
government shall be treated for purposes of this section in the same 
manner as a large local government, except that--
            ``(1) an Indian tribal government shall be treated for 
        purposes of subsection (e) as located within a State to the 
        extent of so much of the population of such government as 
        resides within such State, and
            ``(2) any bond issued by an Indian tribal government shall 
        be treated as a qualified energy conservation bond only if 
        issued as part of an issue the available project proceeds of 
        which are used for purposes for which such Indian tribal 
        government could issue bonds to which section 103(a) 
        applies.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d), as amended by section 
        806, is amended by striking ``or'' at the end of subparagraph 
        (A), by adding ``or'' at the end of subparagraph (B), and by 
        inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) a qualified energy conservation bond,''.
            (2) Subparagraph (C) of section 54A(d)(2), as amended by 
        section 806, is amended by striking ``and'' at the end of 
        clause (i), by striking the period at the end of clause (ii) 
        and inserting ``and'', and by adding at the end the following 
        new clause:
                            ``(iii) in the case of a qualified energy 
                        conservation bond, a purpose specified in 
                        section 54D(a)(1).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1, as amended by section 806, is 
        amended by adding at the end the following new item:

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

SEC. 572. CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    (a) Extension of Credit.--Section 25C(g) is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2008''.
    (b) Qualified Biomass Fuel Property.--
            (1) In general.--Section 25C(d)(3) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (D),
                    (B) by striking the period at the end of 
                subparagraph (E) and inserting ``, and'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(F) a stove which uses the burning of biomass 
                fuel to heat a dwelling unit located in the United 
                States and used as a residence by the taxpayer, or to 
                heat water for use in such a dwelling unit, and which 
                has a thermal efficiency rating of at least 75 
                percent.''.
            (2) Biomass fuel.--Section 25C(d) is amended by adding at 
        the end the following new paragraph:
            ``(6) Biomass fuel.--The term `biomass fuel' means any 
        plant-derived fuel available on a renewable or recurring basis, 
        including agricultural crops and trees, wood and wood waste and 
        residues (including wood pellets), plants (including aquatic 
        plants), grasses, residues, and fibers.''.
    (c) Coordination With Credit for Qualified Geothermal Heat Pump 
Property Expenditures.--
            (1) In general.--Paragraph (3) of section 25C(d), as 
        amended by subsection (b), is amended by striking subparagraph 
        (C) and by redesignating subparagraphs (D), (E), and (F) as 
        subparagraphs (C), (D), and (E), respectively.
            (2) Conforming amendment.--Subparagraph (C) of section 
        25C(d)(2) is amended to read as follows:
                    ``(C) Requirements and standards for air 
                conditioners and heat pumps.--The standards and 
                requirements prescribed by the Secretary under 
                subparagraph (B) with respect to the energy efficiency 
                ratio (EER) for central air conditioners and electric 
                heat pumps--
                            ``(i) shall require measurements to be 
                        based on published data which is tested by 
                        manufacturers at 95 degrees Fahrenheit, and
                            ``(ii) may be based on the certified data 
                        of the Air Conditioning and Refrigeration 
                        Institute that are prepared in partnership with 
                        the Consortium for Energy Efficiency.''.
    (d) Effective Date.--The amendments made this section shall apply 
to expenditures made after December 31, 2007.

SEC. 573. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

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

SEC. 574. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR 
              APPLIANCES PRODUCED AFTER 2007.

    (a) In General.--Subsection (b) of section 45M is amended to read 
as follows:
    ``(b) Applicable Amount.--For purposes of subsection (a)--
            ``(1) Dishwashers.--The applicable amount is--
                    ``(A) $45 in the case of a dishwasher which is 
                manufactured in calendar year 2008 or 2009 and which 
                uses no more than 324 kilowatt hours per year and 5.8 
                gallons per cycle, and
                    ``(B) $75 in the case of a dishwasher which is 
                manufactured in calendar year 2008, 2009, or 2010 and 
                which uses no more than 307 kilowatt hours per year and 
                5.0 gallons per cycle (5.5 gallons per cycle for 
                dishwashers designed for greater than 12 place 
                settings).
            ``(2) Clothes washers.--The applicable amount is--
                    ``(A) $75 in the case of a residential top-loading 
                clothes washer manufactured in calendar year 2008 which 
                meets or exceeds a 1.72 modified energy factor and does 
                not exceed a 8.0 water consumption factor,
                    ``(B) $125 in the case of a residential top-loading 
                clothes washer manufactured in calendar year 2008 or 
                2009 which meets or exceeds a 1.8 modified energy 
                factor and does not exceed a 7.5 water consumption 
                factor,
                    ``(C) $150 in the case of a residential or 
                commercial clothes washer manufactured in calendar year 
                2008, 2009, or 2010 which meets or exceeds 2.0 modified 
                energy factor and does not exceed a 6.0 water 
                consumption factor, and
                    ``(D) $250 in the case of a residential or 
                commercial clothes washer manufactured in calendar year 
                2008, 2009, or 2010 which meets or exceeds 2.2 modified 
                energy factor and does not exceed a 4.5 water 
                consumption factor.
            ``(3) Refrigerators.--The applicable amount is--
                    ``(A) $50 in the case of a refrigerator which is 
                manufactured in calendar year 2008, and consumes at 
                least 20 percent but not more than 22.9 percent less 
                kilowatt hours per year than the 2001 energy 
                conservation standards,
                    ``(B) $75 in the case of a refrigerator which is 
                manufactured in calendar year 2008 or 2009, and 
                consumes at least 23 percent but no more than 24.9 
                percent less kilowatt hours per year than the 2001 
                energy conservation standards,
                    ``(C) $100 in the case of a refrigerator which is 
                manufactured in calendar year 2008, 2009, or 2010, and 
                consumes at least 25 percent but not more than 29.9 
                percent less kilowatt hours per year than the 2001 
                energy conservation standards, and
                    ``(D) $200 in the case of a refrigerator 
                manufactured in calendar year 2008, 2009, or 2010 and 
                which consumes at least 30 percent less energy than the 
                2001 energy conservation standards.''.
    (b) Eligible Production.--
            (1) Similar treatment for all appliances.--Subsection (c) 
        of section 45M is amended--
                    (A) by striking paragraph (2),
                    (B) by striking ``(1) In general'' and all that 
                follows through ``the eligible'' and inserting ``The 
                eligible'',
                    (C) by moving the text of such subsection in line 
                with the subsection heading, and
                    (D) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively, and by moving 
                such paragraphs 2 ems to the left.
            (2) Modification of base period.--Paragraph (2) of section 
        45M(c), as amended by paragraph (1), is amended by striking 
        ``3-calendar year'' and inserting ``2-calendar year''.
    (c) Types of Energy Efficient Appliances.--Subsection (d) of 
section 45M (defining types of energy efficient appliances) is amended 
to read as follows:
    ``(d) Types of Energy Efficient Appliance.--For purposes of this 
section, the types of energy efficient appliances are--
            ``(1) dishwashers described in subsection (b)(1),
            ``(2) clothes washers described in subsection (b)(2), and
            ``(3) refrigerators described in subsection (b)(3).''.
    (d) Aggregate Credit Amount Allowed.--
            (1) Increase in limit.--Paragraph (1) of section 45M(e) is 
        amended to read as follows:
            ``(1) Aggregate credit amount allowed.--The aggregate 
        amount of credit allowed under subsection (a) with respect to a 
        taxpayer for any taxable year shall not exceed $75,000,000 
        reduced by the amount of the credit allowed under subsection 
        (a) to the taxpayer (or any predecessor) for all prior taxable 
        years beginning after December 31, 2007.''.
            (2) Exception for certain refrigerator and clothes 
        washers.--Paragraph (2) of section 45M(e) is amended to read as 
        follows:
            ``(2) Amount allowed for certain refrigerators and clothes 
        washers.--Refrigerators described in subsection (b)(3)(D) and 
        clothes washers described in subsection (b)(2)(D) shall not be 
        taken into account under paragraph (1).''.
    (e) Qualified Energy Efficient Appliances.--
            (1) In general.--Paragraph (1) of section 45M(f) (defining 
        qualified energy efficient appliance) is amended to read as 
        follows:
            ``(1) Qualified energy efficient appliance.--The term 
        `qualified energy efficient appliance' means--
                    ``(A) any dishwasher described in subsection 
                (b)(1),
                    ``(B) any clothes washer described in subsection 
                (b)(2), and
                    ``(C) any refrigerator described in subsection 
                (b)(3).''.
            (2) Clothes washer.--Section 45M(f)(3) is amended by 
        inserting ``commercial'' before ``residential'' the second 
        place it appears.
            (3) Top-loading clothes washer.--Subsection (f) of section 
        45M is amended by redesignating paragraphs (4), (5), (6), and 
        (7) as paragraphs (5), (6), (7), and (8), respectively, and by 
        inserting after paragraph (3) the following new paragraph:
            ``(4) Top-loading clothes washer.--The term `top-loading 
        clothes washer' means a clothes washer which has the clothes 
        container compartment access located on the top of the machine 
        and which operates on a vertical axis.''.
            (4) Replacement of energy factor.--Section 45M(f)(6), as 
        redesignated by paragraph (3), is amended to read as follows:
            ``(6) Modified energy factor.--The term `modified energy 
        factor' means the modified energy factor established by the 
        Department of Energy for compliance with the Federal energy 
        conservation standard.''.
            (5) Gallons per cycle; water consumption factor.--Section 
        45M(f), as amended by paragraph (3), is amended by adding at 
        the end the following:
            ``(9) Gallons per cycle.--The term `gallons per cycle' 
        means, with respect to a dishwasher, the amount of water, 
        expressed in gallons, required to complete a normal cycle of a 
        dishwasher.
            ``(10) Water consumption factor.--The term `water 
        consumption factor' means, with respect to a clothes washer, 
        the quotient of the total weighted per-cycle water consumption 
        divided by the cubic foot (or liter) capacity of the clothes 
        washer.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2007.

SEC. 575. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS 
              AND SMART GRID SYSTEMS.

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

SEC. 576. QUALIFIED GREEN BUILDING AND SUSTAINABLE DESIGN PROJECTS.

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

                    Subpart D--Geothermal Incentives

SEC. 581. ENERGY CREDIT FOR GEOTHERMAL HEAT PUMP SYSTEMS.

    (a) In General.--Subparagraph (A) of section 48(a)(3) of the 
Internal Revenue Code of 1986 is amended by striking ``or'' at the end 
of clause (iii), by inserting ``or'' at the end of clause (iv), and by 
adding at the end the following new clause:
                            ``(v) equipment which uses the ground or 
                        ground water as a thermal energy source to heat 
                        a structure or as a thermal energy sink to cool 
                        a structure,''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 582. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR GEOTHERMAL HEAT 
              PUMP SYSTEMS.

    (a) In General.--Subparagraph (A) of section 168(e)(3) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of clause (ii), by striking the period at the end of clause (iii) and 
inserting ``, and'', and by adding at the end the following new clause:
                            ``(iv) any property which is described in 
                        clause (v) of section 48(a)(3)(A).''.
    (b) Conforming Amendment.--Subclause (I) of section 
168(e)(3)(B)(vi) of such Code is amended by inserting ``clause (i), 
(ii), (iii), or (iv) of'' before ``subparagraph (A)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

                TITLE VI--INCREASED DOMESTIC PRODUCTION

                  Subtitle A--Outer Continental Shelf

SEC. 601. PROHIBITION ON LEASING.

    (a) Prohibition.--The Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.) notwithstanding, the Secretary shall not take nor 
authorize any action related to oil and gas preleasing or leasing of 
any area of the Outer Continental Shelf that was not available for oil 
and gas leasing as of July 1, 2008, unless that action is expressly 
authorized by this subtitle or a statute enacted by Congress after the 
date of enactment of this Act.
    (b) Treatment of Areas in Gulf of Mexico.--For purposes of this 
subtitle, such action with respect to an area referred to in section 
104(a) of the Gulf of Mexico Energy Security Act of 2006 (title I of 
division C of Public Law 109-432; 42 U.S.C. 1331 note) taken or 
authorized after the period referred to in that section shall be 
treated as authorized by this subtitle, and such leasing of such area 
shall be treated as authorized under section 602(a).

SEC. 602. OPENING OF CERTAIN AREAS TO OIL AND GAS LEASING.

    (a) Leasing Authorized.--The Secretary may offer for oil and gas 
leasing, preleasing, or other related activities, in accordance with 
this section and the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
et seq.) and subject to subsection (b) of this section, section 603 of 
this Act, and section 307 of the Coastal Zone Management Act of 1972 
(16 U.S.C. 1456), any area--
            (1) that is in any Outer Continental Shelf Planning Area in 
        the Atlantic Ocean or Pacific Ocean that is located farther 
        than 50 miles from the coastline; and
            (2) that was not otherwise available for oil and gas 
        leasing, preleasing, and other related activities as of July 1, 
        2008.
    (b) Inclusion in Leasing Program Required.--An area may be offered 
for lease under this section only if it has been included in an Outer 
Continental Shelf leasing program approved by the Secretary in 
accordance with section 18 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1344).
    (c) Requirement To Conduct Lease Sales.--As soon as practicable, 
consistent with subsection (b) and section 603(a), but not later than 3 
years after the date of enactment of this Act, and as appropriate 
thereafter, the Secretary shall conduct oil and gas lease sales under 
the Outer Continental Shelf lands Act (43 U.S.C. 1331 et seq.) for 
areas that are made available for leasing by this section.

SEC. 603. COASTAL STATE ROLES AND RESPONSIBILITIES.

    (a) State Approval of Certain Leasing Required.--The Secretary may 
not conduct any oil and gas leasing or preleasing activity in any area 
made available for oil and gas leasing by section 602(a) that is 
located within 100 miles from the coastline and within the seaward 
lateral boundaries of an adjacent State, unless the adjacent State has 
enacted a law approving of the issuance of such leasing by the 
Secretary.
    (b) Consultation With Adjacent and Neighboring States.--
            (1) In general.--In addition to the consultation provided 
        for under section 19 of the Outer Continental Shelf Lands Act 
        (43 U.S.C. 1345), the Governor of a State that has a coastline 
        within 100 miles of an area of the Outer Continental Shelf 
        being considered for oil and gas leasing and made available for 
        such leasing by section 602(a) may submit recommendations to 
        the Secretary with respect to--
                    (A) the size, timing, or location of a proposed 
                lease sale; or
                    (B) a proposed development and production plan.
            (2) Requirements.--Subsections (b), (c), and (d) of section 
        19 of the Outer Continental Shelf Lands Act (43 U.S.C. 1345) 
        shall apply to the recommendations provided for in paragraph 
        (1).

SEC. 604. PROTECTION OF THE ENVIRONMENT AND CONSERVATION OF THE NATURAL 
              RESOURCES OF THE OUTER CONTINENTAL SHELF.

    The Secretary--
            (1) shall ensure that any activity under this subtitle is 
        carried out in a manner that provides for the protection of the 
        coastal environment, marine environment, and human environment 
        of State coastal zones and the Outer Continental Shelf; and
            (2) shall review all Federal regulations that are otherwise 
        applicable to activities authorized by this subtitle to ensure 
        environmentally sound oil and gas operations on the Outer 
        Continental Shelf.

SEC. 605. LIMITATIONS.

    (a) Compliance With Memorandum.--Any oil and gas leasing of areas 
of the Outer Continental Shelf shall be conducted in accordance with 
the document entitled ``Memorandum of Agreement between the Department 
of Defense and the Department of the Interior on Mutual Concerns On The 
Outer Continental Shelf'' and dated July 2, 1983, and such revisions 
thereto as may be agreed to by the Secretary of Defense and the 
Secretary of the Interior; except that no such revisions may be made 
prior to January 21, 2009.
    (b) National Security.--Notwithstanding subsection (a), the United 
States reserves the right to designate by and through the Secretary of 
Defense, with the approval of the President, national defense areas on 
the Outer Continental Shelf pursuant to section 12(d) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1341(d)).

SEC. 606. PROHIBITION ON LEASING IN CERTAIN FEDERAL PROTECTED AREAS.

    (a) In General.--Notwithstanding any other provision of this or any 
other Federal law, no lease or other authorization may be issued by the 
Federal Government that authorizes exploration, development, or 
production of oil or natural gas in--
            (1) any marine national monument or national marine 
        sanctuary; or
            (2) the fishing grounds known as Georges Bank in the waters 
        of the United States, which is one of the largest and 
        historically important fishing grounds of the United States.
    (b) Identification of Coordinates of Georges Bank.--The Secretary 
of Commerce, after publication of public notice and an opportunity for 
public comment, shall identify the specific coordinates that delineate 
Georges Bank in the waters of the United States for purposes of 
subsection (a).

SEC. 607. NO EFFECT ON APPLICABLE LAW.

    Except as otherwise specifically provided in this subtitle, nothing 
in this subtitle waives or modifies any applicable environmental or 
other law.

SEC. 608. BUY AMERICAN REQUIREMENTS.

    (a) In General.--It is the intent of Congress that this Act, among 
other things, result in a healthy and growing American industrial, 
manufacturing, transportation, and service sector employing the vast 
talents of America's workforce to assist in the development of energy 
from domestic sources. Moreover, the Congress intends to monitor the 
deployment of personnel and material onshore and offshore to encourage 
the development of American technology and manufacturing to enable 
United States workers to benefit from this Act by good jobs and 
careers, as well as the establishment of important industrial 
facilities to support expanded access to American resources.
    (b) Safeguard for Extraordinary Ability.--Section 30(a) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the 
matter preceding paragraph (1) by striking ``regulations which'' and 
inserting ``regulations that shall be supplemental and complimentary 
with and under no circumstances a substitution for the provisions of 
the Constitution and laws of the United States extended to the subsoil 
and seabed of the outer Continental Shelf pursuant to section 4 of this 
Act, except insofar as such laws would otherwise apply to individuals 
who have extraordinary ability in the sciences, arts, education, or 
business, which has been demonstrated by sustained national or 
international acclaim, and that''.

SEC. 609. SMALL, WOMAN-OWNED, AND MINORITY-OWNED BUSINESSES.

    Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) 
is amended by adding at the end the following:
    ``(q) Opportunities for Leasing.--The Secretary shall establish 
goals to ensure equal opportunity to bid on offshore leases for 
qualified small, women-owned, and minority-owned exploration and 
production companies and may implement, where appropriate, outreach 
programs for qualified historically underutilized exploration and 
production companies to participate in the bidding process for offshore 
leases.''.

SEC. 610. OCS JOINT PERMITTING OFFICES.

    (a) Establishment.--The Secretary of the Interior (referred to in 
this section as the ``Secretary'') shall establish Federal OCS Joint 
Regional Permitting Offices (referred to in this section as the 
``Regional Permitting Offices'') in accordance with this section.
    (b) Memorandum of Understanding.--Not later than 90 days after the 
date of enactment of this Act, the Secretary shall enter into a 
memorandum of understanding for purposes of this section with--
            (1) the Secretary of Commerce;
            (2) the Administrator of the Environmental Protection 
        Agency; and
            (3) the Chief of Engineers.
    (c) Designation of Qualified Staff.--
            (1) In general.--Not later than 30 days after the date of 
        the signing of the memorandum of understanding under subsection 
        (b), all Federal signatory parties shall assign to each of the 
        Regional Permitting Offices identified in subsection (d) a 
        sufficient number of employees with expertise to address the 
        full spectrum of agency regulatory issues relating to the 
        Regional Permitting Office in which the employee is employed, 
        including, as applicable, particular expertise in--
                    (A) the consultations and the preparation of 
                biological opinions under section 7 of the Endangered 
                Species Act of 1973 (16 U.S.C.1536);
                    (B) permits under section 404 of Federal Water 
                Pollution Control Act (33 U.S.C. 1344);
                    (C) regulatory matters under the Clean Air Act (42 
                U.S.C. 7401 et seq.);
                    (D) the consultations and preparation of documents 
                under the Marine Mammal Protection Act of 1972 (16 
                U.S.C. 1361 et seq.); and
                    (E) the preparation of analyses under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.).
            (2) Duties.--Each employee assigned under paragraph (1) 
        shall--
                    (A) not later than 90 days after the date of 
                assignment, report to the Minerals Management Service 
                Regional Director in the Regional Permitting Office to 
                which the employee is assigned;
                    (B) be responsible for all issues relating to the 
                jurisdiction of the home office or agency of the 
                employee; and
                    (C) participate as part of the team of personnel 
                working on proposed energy projects, planning, and 
                environmental analyses.
    (d) Regional Permitting Offices.--The following Minerals Management 
Service Regional Headquarters shall serve as the Regional Permitting 
Offices:
            (1) Anchorage, Alaska.
            (2) New Orleans, Louisiana.
            (3) MMS Pacific Regional Headquarters.
            (4) MMS Atlantic Regional Headquarters.
    (e) Reports.--Not later than 3 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that 
describes the results of the Regional Permitting Offices.
    (f) Transfer of Fund.--For the purposes of coordination and 
processing of oil and gas use authorization on the Federal Outer 
Continental Shelf under the administration of the Regional Permitting 
Offices identified in subsection (d), the Secretary may authorize the 
expenditure or transfer of such funds as are necessary to--
            (1) the United States Fish and Wildlife Service;
            (2) the Bureau of Indian Affairs;
            (3) the Environmental Protection Agency;
            (4) the National Oceanic and Atmospheric Administration; 
        and
            (5) the Corps of Engineers.

SEC. 611. DEFINITIONS.

    In this subtitle:
            (1) Adjacent state.--The term ``adjacent State'' means, 
        with respect to any program, plan, lease sale, leased tract, or 
        other activity, proposed, conducted, or approved in accordance 
        with the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
        seq.), the State, the laws of which are declared pursuant to 
        section 4(a)(2) of the Outer Continental Shelf Lands Act (43 
        U.S.C. 1333(a)(2)) to be the law of the United States for the 
        portion of the Outer Continental Shelf on which the program, 
        plan, lease sale, leased tract, or activity is, or is proposed 
        to be, conducted.
            (2) Coastal environment.--The term ``coastal environment'' 
        has the meaning given that term in the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1331 et seq.).
            (3) Coastal zone.--The term ``coastal zone'' has the 
        meaning given that term in the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331 et seq.).
            (4) Coastline.--The term ``coastline'' has the meaning 
        given the term ``coast line'' under section 2 of the Submerged 
        Lands Act (43 U.S.C. 1301).
            (5) Human environment.--The term ``human environment'' has 
        the meaning given that term in the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1331 et seq.).
            (6) Marine environment.--The term ``marine environment'' 
        has the meaning given that term in the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1331 et seq.).
            (7) Outer continental shelf.--The term ``Outer Continental 
        Shelf'' has the meaning given the term ``outer Continental 
        Shelf'' under section 2 of the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331).
            (8) Seaward lateral boundary.--The term ``seaward lateral 
        boundary'' means a boundary drawn by the Minerals Management 
        Service in the Federal Register notice of January 3, 2006 (vol 
        71, no. 1).
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

             Subtitle B--Drill Responsibly in Leased Lands

SEC. 621. ISSUANCE OF NEW LEASES.

    (a) In General.--After the date of the issuance of regulations 
under subsection (b), the Secretary of the Interior shall not issue to 
a person any new lease that authorizes the exploration for or 
production of oil or natural gas, under section 17 of the Mineral 
Leasing Act (33 U.S.C. 226), the Mineral Leasing Act for Acquired Lands 
Act (30 U.S.C. 351 et seq.), the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.), or any other law authorizing the issuance of oil 
and gas leases on Federal lands or submerged lands, unless--
            (1) the person certifies for each existing lease under such 
        Acts for the production of oil or gas with respect to which the 
        person is a lessee, that the person is diligently developing 
        the Federal lands that are subject to the lease in order to 
        produce oil or natural gas or is producing oil or natural gas 
        from such land; or
            (2) the person has relinquished all ownership interest in 
        all Federal oil and gas leases under which oil and gas is not 
        being diligently developed.
    (b) Diligent Development.--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 Act.
    (c) Failure To Comply With Requirements.--Any person who fails to 
comply with the requirements of this section or any regulation or order 
issued to implement this section shall be liable for a civil penalty 
under section 109 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1719).
    (d) Lessee Defined.--In this section the term ``lessee''--
            (1) includes any person or other entity that controls, is 
        controlled by, or is in or under common control with, a lessee; 
        and
            (2) does not include any person who does not hold more than 
        a minority ownership interest in a lease under an Act referred 
        to in subsection (a) authorizing the exploration for or 
        production of oil or natural gas.

SEC. 622. FAIR RETURN ON PRODUCTION OF FEDERAL OIL AND GAS RESOURCES.

    (a) Royalty Payments.--The Secretary of the Interior shall take all 
steps necessary to ensure that lessees under leases for exploration, 
development, and production of oil and natural gas on Federal lands, 
including leases under the Mineral Leasing Act (30 U.S.C. 181 et seq.), 
the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.), the 
Outer Continental Shelf Lands Act (30 U.S.C. 1331 et seq.), and all 
other mineral leasing laws, are making prompt, transparent, and 
accurate royalty payments under such leases.
    (b) Recommendations for Legislative Action.--In order to facilitate 
implementation of subsection (a), the Secretary of the Interior shall, 
within 180 days after the date of the 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.

            Subtitle C--Coal Innovation Direct Loan Program

SEC. 631. COAL INNOVATION DIRECT LOAN PROGRAM.

    (a) In General.--Title XXXI of the Energy Policy Act of 1992 (42 
U.S.C. 13571 et seq.) is amended by adding at the end the following:

``SEC. 3105. COAL INNOVATION DIRECT LOAN PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Carbon capture.--The term `carbon capture' means the 
        capture, separation, and compression of carbon dioxide that 
        would otherwise be released to the atmosphere at a facility in 
        the production of end products of a project prior to 
        transportation of the carbon dioxide to a long-term storage 
        site.
            ``(2) Coal-to-liquid product.--The term `coal-to-liquid 
        product' means a liquid fuel resulting from the conversion of a 
        feedstock, as described in this section.
            ``(3) Combustible end product.--The term `combustible end 
        product' means any product of a facility intended to be used as 
        a combustible fuel.
            ``(4) Conventional baseline emissions.--The term 
        `conventional baseline emissions' means--
                    ``(A) the lifecycle greenhouse gas emissions of a 
                facility that produces combustible end products, using 
                petroleum as a feedstock, that are equivalent to 
                combustible end products produced by a facility of 
                comparable size through an eligible project;
                    ``(B) in the case of noncombustible products 
                produced through an eligible project, the average 
                lifecycle greenhouse gas emissions emitted by projects 
                that--
                            ``(i) are of comparable size; and
                            ``(ii) produce equivalent products using 
                        conventional feedstocks; and
                    ``(C) in the case of synthesized gas intended for 
                use as a combustible fuel in lieu of natural gas 
                produced by an eligible project, the lifecycle 
                greenhouse gas emissions that would result from 
                equivalent use of natural gas.
            ``(5) Eligible project.--The term `eligible project' means 
        a project--
                    ``(A) that employs gasification technology or 
                another conversion process for feedstocks described in 
                this section; and
                    ``(B) for which--
                            ``(i) the annual lifecycle greenhouse gas 
                        emissions of the project are at least 20 
                        percent lower than conventional baseline 
                        emissions;
                            ``(ii) at least 75 percent of the carbon 
                        dioxide that would otherwise be released to the 
                        atmosphere at the facility in the production of 
                        end products of the project is captured for 
                        long-term storage;
                            ``(iii) the individual or entity carrying 
                        out the eligible project has entered into an 
                        enforceable agreement with the Secretary to 
                        implement carbon capture at the percentage 
                        that, by the end of the 5-year period after 
                        commencement of commercial operation of the 
                        eligible project--
                                    ``(I) represents the best available 
                                technology; and
                                    ``(II) achieves a reduction in 
                                carbon emissions that is not less than 
                                75 percent; and
                            ``(iv) in the opinion of the Secretary, 
                        sufficient commitments have been secured to 
                        achieve long-term storage of captured carbon 
                        dioxide beginning as of the date of 
                        commencement of commercial operation of the 
                        project.
            ``(6) Facility.--The term `facility' means a facility at 
        which the conversion of feedstocks to end products takes place.
            ``(7) Gasification technology.--The term `gasification 
        technology' means any process that converts coal, petroleum 
        residue, renewable biomass, or other material that is recovered 
        for energy or feedstock value into a synthesis gas composed 
        primarily of carbon monoxide and hydrogen for direct use or 
        subsequent chemical or physical conversion.
            ``(8) Greenhouse gas.--The term `greenhouse gas' means any 
        of--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons; and
                    ``(F) sulfur hexafluoride.
            ``(9) Lifecycle greenhouse gas emissions.--The term 
        `lifecycle greenhouse gas emissions' means the aggregate 
        quantity of greenhouse gases attributable to the production and 
        transportation of end products at a facility, including the 
        production, extraction, cultivation, distribution, marketing, 
        and transportation of feedstocks, and the subsequent 
        distribution and use of any combustible end products, as 
        modified by deducting, as determined by the Administrator of 
        the Environmental Protection Agency--
                    ``(A) any greenhouse gases captured at the facility 
                and sequestered;
                    ``(B) the carbon content, expressed in units of 
                carbon dioxide equivalent, of any feedstock that is 
                renewable biomass; and
                    ``(C) the carbon content, expressed in units of 
                carbon dioxide equivalent, of any end products that do 
                not result in the release of carbon dioxide to the 
                atmosphere.
            ``(10) Long-term storage.--The term `long-term storage' 
        means sequestration with an expected maximum rate of carbon 
        dioxide leakage over a specified period of time that is 
        consistent with the objective of reducing atmospheric 
        concentrations of carbon dioxide, subject to a permit issued 
        pursuant to law in effect as of the date of the sequestration.
            ``(11) Renewable biomass.--The term `renewable biomass' has 
        the definition given the term in section 102 of the Renewable 
        Fuels, Consumer Protection, and Energy Efficiency Act of 2007.
            ``(12) Sequestration.--The term `sequestration' means the 
        placement of carbon dioxide in a geological formation, 
        including--
                    ``(A) an operating oil and gas field;
                    ``(B) coal bed methane recovery;
                    ``(C) a depleted oil and gas field;
                    ``(D) an unmineable coal seam;
                    ``(E) a deep saline formation; and
                    ``(F) a deep geological systems containing basalt 
                formations.
    ``(b) Feed Assistance Program.--
            ``(1) In general.--Subject to paragraph (3), and in 
        accordance with section 988 of the Energy Policy Act of 2005 
        (42 U.S.C. 16352), not later than 1 year after the date of the 
        enactment of this section, the Secretary shall carry out a 
        program to provide grants for use in obtaining or carrying out 
        any services necessary for the planning, permitting, and 
        construction of an eligible project.
            ``(2) Selection of eligible projects.--The Secretary shall 
        select eligible projects to receive grants under this section--
                    ``(A) through the conduct of a reverse auction, in 
                which eligible projects proposed to be carried out that 
                have the greatest rate of carbon capture and long-term 
                storage, and the lowest lifecycle greenhouse gas 
                emissions, are given priority;
                    ``(B) that, taken together, would--
                            ``(i) represent a variety of geographical 
                        regions;
                            ``(ii) use a variety of feedstocks and 
                        types of coal; and
                            ``(iii) to the extent consistent with 
                        achieving long-term storage, represent a 
                        variety of geological formations; and
                    ``(C) for which eligible projects, in the opinion 
                of the Secretary--
                            ``(i) each award recipient is financially 
                        viable without the receipt of additional 
                        Federal funding associated with the proposed 
                        project;
                            ``(ii) each recipient will provide 
                        sufficient information to the Secretary for the 
                        Secretary to ensure that the qualified 
                        investment is expended efficiently and 
                        effectively;
                            ``(iii) a market exists for the products of 
                        the proposed project, as evidenced by contracts 
                        or written statements of intent from potential 
                        customers;
                            ``(iv) the project team of each recipient 
                        is competent in the construction and operation 
                        of the gasification technology proposed; and
                            ``(v) each recipient has met such other 
                        criteria as may be established and published by 
                        the Secretary.
            ``(3) Maximum amount of grants.--In carrying out this 
        subsection, the Secretary shall provide not more than--
                    ``(A) $20,000,000 in grant funds for any eligible 
                project; and
                    ``(B) $200,000,000 in grant funds, in the 
                aggregate, for all eligible projects.
    ``(c) Direct Loan Program.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, and subject to funds being made 
        available in advance through appropriations Acts, the Secretary 
        shall carry out a program to provide a total of not more than 
        $10,000,000,000 in loans to eligible individuals and entities 
        (as determined by the Secretary) for use in carrying out 
        eligible projects.
            ``(2) Application.--An applicant for a loan under this 
        section shall comply with the terms and conditions in section 
        215(b)(3) of the Renewable Fuels, Consumer Protection, and 
        Energy Efficiency Act of 2007 in the same manner in which 
        applicants for Renewable Energy Construction grants are 
        required to comply with that section.
            ``(3) Selection of eligible projects.--The Secretary shall 
        select eligible projects to receive loans under this section--
                    ``(A) through the conduct of a reverse auction, in 
                which eligible projects proposed to be carried out that 
                have the greatest rate of carbon capture and long-term 
                storage, and the lowest lifecycle greenhouse gas 
                emissions, are given priority;
                    ``(B) that, taken together, would--
                            ``(i) represent a variety of geographic 
                        regions;
                            ``(ii) use a variety of types of feedstocks 
                        and coal; and
                            ``(iii) to the extent consistent with 
                        achieving long-term storage, represent a 
                        variety of geological formations; and
                    ``(C) for which eligible projects, in the opinion 
                of the Secretary--
                            ``(i) each award recipient is financially 
                        viable without the receipt of additional 
                        Federal funding associated with the proposed 
                        project;
                            ``(ii) each recipient will provide 
                        sufficient information to the Secretary for the 
                        Secretary to ensure that the qualified 
                        investment is expended efficiently and 
                        effectively;
                            ``(iii) a market exists for the products of 
                        the proposed project, as evidenced by contracts 
                        or written statements of intent from potential 
                        customers;
                            ``(iv) the project team of each recipient 
                        is competent in the construction and operation 
                        of the gasification technology proposed; and
                            ``(v) each recipient has met such other 
                        criteria as may be established and published by 
                        the Secretary.
            ``(4) Use of loan funds.--
                    ``(A) In general.--Subject to subparagraph (B), 
                funds from a loan provided under this section may be 
                used to pay up to 100 percent of the costs of capital 
                associated with reducing lifecycle greenhouse gas 
                emissions at the facility (including carbon dioxide 
                capture, compression, and long-term storage, 
                cogeneration, and gasification of biomass) carried out 
                as part of an eligible project.
                    ``(B) Total project cost.--Funds from a loan 
                provided under this section may not be used to pay more 
                than 50 percent of the total cost of an eligible 
                project.
            ``(5) Rates, terms, and repayment of loans.--A loan 
        provided under this section--
                    ``(A) shall have an interest rate that, as of the 
                date on which the loan is made, is equal to the cost of 
                funds to the Department of the Treasury for obligations 
                of comparable maturity;
                    ``(B) shall have a term equal to the lesser of--
                            ``(i) the projected life, in years, of the 
                        eligible project to be carried out using funds 
                        from the loan, as determined by the Secretary; 
                        and
                            ``(ii) 25 years;
                    ``(C) may be subject to a deferral in repayment for 
                not more than 5 years after the date on which the 
                eligible project carried out using funds from the loan 
                first begins operations, as determined by the 
                Secretary; and
                    ``(D) shall be made on the condition that the 
                Secretary shall be subrogated to the rights of the 
                recipient of the payment as specified in the loan or 
                related agreements, including, as appropriate, the 
                authority (notwithstanding any other provision of 
                law)--
                            ``(i) to complete, maintain, operate, 
                        lease, or otherwise dispose of any property 
                        acquired pursuant to the guarantee or a related 
                        agreement; or
                            ``(ii) to permit the borrower, pursuant to 
                        an agreement with the Secretary, to continue to 
                        pursue the purposes of the project, if the 
                        Secretary determines the pursuit to be in the 
                        public interest.
            ``(6) Methodology.--Not later than 18 months after the date 
        of enactment of this section, the Administrator of the 
        Environmental Protection Agency shall, by regulation, establish 
        a methodology for use in determining the lifecycle greenhouse 
        gas emissions of products produced using gasification 
        technology.
    ``(d) Study of Maintaining Coal-to-Liquid Products in Strategic 
Petroleum Reserve.--Not later than 1 year after the date of enactment 
of this section, the Secretary and the Secretary of Defense shall--
            ``(1) conduct a study of the feasibility and suitability of 
        maintaining coal-to-liquid products in the Strategic Petroleum 
        Reserve; and
            ``(2) submit to the Committee on Energy and Natural 
        Resources and the Committee on Armed Services of the Senate and 
        the Committee on Energy and Commerce and the Committee on Armed 
        Services of the House of Representatives a report describing 
        the results of the study.
    ``(e) Report on Emissions of Coal-to-Liquid Products Used as 
Transportation Fuels.--
            ``(1) In general.--In cooperation with the Secretary, the 
        Secretary of Defense, the Administrator of the Federal Aviation 
        Administration, and the Secretary of Health and Human Services, 
        the Administrator of the Environmental Protection Agency 
        shall--
                    ``(A) carry out a research and demonstration 
                program to evaluate the emissions of the use of coal-
                to-liquid fuel for transportation, including diesel and 
                jet fuel;
                    ``(B) evaluate the effect of using coal-to-liquid 
                transportation fuel on emissions of vehicles, including 
                motor vehicles and nonroad vehicles, and aircraft (as 
                those terms are defined in sections 216 and 234, 
                respectively, of the Clean Air Act (42 U.S.C. 7550, 
                7574)); and
                    ``(C) in accordance with paragraph (4), submit to 
                Congress a report on the effect on air and water 
                quality, water scarcity, land use, and public health of 
                using coal-to-liquid fuel in the transportation sector.
            ``(2) Guidance and technical support.--The Administrator of 
        the Environmental Protection Agency, in consultation with the 
        Secretary, shall issue any guidance or technical support 
        documents necessary to facilitate the effective use of coal-to-
        liquid fuel and blends under this subsection.
            ``(3) Requirements.--The program described in paragraph 
        (1)(A) shall take into consideration--
                    ``(A) the use of neat (100 percent) coal-to-liquid 
                fuel and blends of coal-to-liquid fuels with 
                conventional crude oil-derived fuel for heavy-duty and 
                light-duty diesel engines and the aviation sector;
                    ``(B) the production costs associated with domestic 
                production of those fuels and prices for consumers; and
                    ``(C) the overall greenhouse gas effects of 
                substituting coal-derived fuels for crude oil-derived 
                fuels.
            ``(4) Reports.--The Administrator of the Environmental 
        Protection Agency shall submit to the Committee on Energy and 
        Natural Resources of the Senate and the Committee on Energy and 
        Commerce of the House of Representatives--
                    ``(A) not later than 180 days after the date of 
                enactment of this section, an interim report on actions 
                taken to carry out this subsection; and
                    ``(B) not later than 1 year after the date of 
                enactment of this section, a final report on actions 
                taken to carry out this subsection.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.
    (b) Conforming Amendment.--The table of contents of the Energy 
Policy Act of 1992 (42 U.S.C. prec. 13201) is amended by adding at the 
end of the items relating to title XXXI the following:

``Sec. 3105. Coal innovation direct loan program.''.

                       Subtitle D--Nuclear Power

SEC. 641. NUCLEAR REGULATORY COMMISSION.

    (a) There are authorized to be appropriated to the Nuclear 
Regulatory Commission such sums as are necessary for the Commission to 
establish an additional 60 full-time equivalent positions to--
            (1) expedite the processing of applications for new nuclear 
        plants;
            (2) streamline the licensing process; and
            (3) provide additional safety oversight for current and new 
        facilities.
    (b) There are authorized to be appropriated to the Nuclear 
Regulatory Commission for the Inspector General's Office such sums as 
are necessary for the Inspector General's Office to establish an 
additional 5 full-time equivalent positions to assist with ongoing 
audits and investigations.

SEC. 642. NUCLEAR ENERGY WORKFORCE.

    Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is 
amended--
            (1) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) nuclear utility and nuclear energy product 
                and service industries.'';
            (2) by redesignating subsection (d) as subsection (e); and
            (3) by inserting after subsection (c) the following:
    ``(d) Workforce Training.--
            ``(1) In general.--The Secretary of Labor, in cooperation 
        with the Secretary, shall promulgate regulations to implement a 
        program to provide grants to enhance workforce training for any 
        occupation in the workforce of the nuclear utility and nuclear 
        energy products and services industries for which a shortage is 
        identified or predicted in the report under subsection (b)(2).
            ``(2) Consultation.--In carrying out this subsection, the 
        Secretary of Labor shall consult with representatives of the 
        nuclear utility and nuclear energy products and services 
        industries, including organized labor organizations and 
        multiemployer associations that jointly sponsor apprenticeship 
        programs that provide training for skills needed in those 
        industries.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary of Labor, 
        working in coordination with the Secretary and the Secretary of 
        Education, $20,000,000 for each of fiscal years 2009 through 
        2013 to carry out this subsection.''.

SEC. 643. INTERAGENCY WORKING GROUP TO PROMOTE DOMESTIC MANUFACTURING 
              BASE FOR NUCLEAR COMPONENTS AND EQUIPMENT.

    (a) Purposes.--The purposes of this section are--
            (1) to increase the competitiveness of the United States 
        nuclear energy products and services industries;
            (2) to identify the stimulus or incentives necessary to 
        cause United States manufacturers of nuclear energy products to 
        expand manufacturing capacity;
            (3) to facilitate the export of United States nuclear 
        energy products and services;
            (4) to reduce the trade deficit of the United States 
        through the export of United States nuclear energy products and 
        services;
            (5) to retain and create nuclear energy manufacturing and 
        related service jobs in the United States;
            (6) to encourage new manufacturing technologies to address 
        industry challenges, such spent fuel recycling;
            (7) to integrate the objectives described in paragraphs (1) 
        through (5), in a manner consistent with the interests of the 
        United States, into the foreign policy of the United States; 
        and
            (8) to authorize funds for increasing United States 
        capacity to manufacture nuclear energy products and supply 
        nuclear energy services.
    (b) Establishment.--
            (1) In general.--There is established an interagency 
        working group (referred to in this section as the ``Working 
        Group'') that, in consultation with representative industry 
        organizations, manufacturers of nuclear energy products, and 
        other stakeholder groups, shall make recommendations to 
        coordinate the actions and programs of the Federal Government 
        in order to promote increasing domestic manufacturing capacity 
        and export of domestic nuclear energy products and services.
            (2) Composition.--The Working Group shall be composed of--
                    (A) the Secretary of Energy (or a designee), who 
                shall serve as Chairperson of the Working Group; and
                    (B) representatives of--
                            (i) the Department of Energy;
                            (ii) the Department of Commerce;
                            (iii) the Department of Defense;
                            (iv) the Department of Treasury;
                            (v) the Department of State;
                            (vi) the Environmental Protection Agency;
                            (vii) the United States Agency for 
                        International Development;
                            (viii) the Export-Import Bank of the United 
                        States;
                            (ix) the Trade and Development Agency;
                            (x) the Small Business Administration;
                            (xi) the Office of the United States Trade 
                        Representative; and
                            (xii) other Federal agencies, as determined 
                        by the President.
    (c) Duties of Working Group.--The Working Group shall--
            (1) not later than 180 days after the date of enactment of 
        this Act, identify the actions necessary to promote the safe 
        development and application in foreign countries of nuclear 
        energy products and services--
                    (A) to increase electricity generation from nuclear 
                energy sources through development of new generation 
                facilities;
                    (B) to improve the efficiency, safety, and 
                reliability of existing nuclear generating facilities 
                through modifications; and
                    (C) enhance the safe treatment, handling, storage, 
                and disposal of used nuclear fuel;
            (2) not later than 180 days after the date of enactment of 
        this Act, identify--
                    (A) mechanisms (including tax stimuli for 
                investment, loans and loan guarantees, and grants) 
                necessary for United States companies to increase--
                            (i) the capacity of the companies to 
                        produce or provide nuclear energy products and 
                        services; and
                            (ii) exports of nuclear energy products and 
                        services; and
                    (B) administrative or legislative initiatives that 
                are necessary--
                            (i) to encourage United States companies to 
                        increase the manufacturing capacity of the 
                        companies for nuclear energy products;
                            (ii) to provide technical and financial 
                        assistance and support to small and mid-sized 
                        businesses to establish quality assurance 
                        programs in accordance with domestic and 
                        international nuclear quality assurance code 
                        requirements;
                            (iii) to encourage, through financial 
                        incentives, private sector capital investment 
                        to expand manufacturing capacity; and
                            (iv) to provide technical assistance and 
                        financial incentives to small and mid-sized 
                        businesses to develop the workforce necessary 
                        to increase manufacturing capacity and meet 
                        domestic and international nuclear quality 
                        assurance code requirements;
            (3) not later than 270 days after the date of enactment of 
        this Act, submit to Congress a report that describes the 
        findings of the Working Group under paragraphs (1) and (2), 
        including recommendations for new legislative authority, as 
        necessary; and
            (4) encourage the agencies represented by membership in the 
        Working Group--
                    (A) to provide technical training and education for 
                international development personnel and local users in 
                other countries;
                    (B) to provide financial and technical assistance 
                to nonprofit institutions that support the marketing 
                and export efforts of domestic companies that provide 
                nuclear energy products and services;
                    (C) to develop nuclear energy projects in foreign 
                countries;
                    (D) to provide technical assistance and training 
                materials to loan officers of the World Bank, 
                international lending institutions, commercial and 
                energy attaches at embassies of the United States, and 
                other appropriate personnel in order to provide 
                information about nuclear energy products and services 
                to foreign governments or other potential project 
                sponsors;
                    (E) to support, through financial incentives, 
                private sector efforts to commercialize and export 
                nuclear energy products and services in accordance with 
                the subsidy codes of the World Trade Organization; and
                    (F) to augment budgets for trade and development 
                programs in order to support pre-feasibility or 
                feasibility studies for projects that use nuclear 
                energy products and services.
    (d) Personnel and Service Matters.--The Secretary and the heads of 
agencies represented by membership in the Working Group shall detail 
such personnel and furnish such services to the Working Group, with or 
without reimbursement, as are necessary to carry out the functions of 
the Working Group.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $20,000,000 for 
each of fiscal years 2009 through 2013.

                   Subtitle E--Carbon Sequestrations

SEC. 651. TAX CREDIT FOR CARBON DIOXIDE SEQUESTRATION.

    (a) In General.--of part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to business related credits) is 
amended by adding at the end the following new section:

``SEC. 45R. CREDIT FOR CARBON DIOXIDE SEQUESTRATION.

    ``(a) General Rule.--For purposes of section 38, the carbon dioxide 
sequestration credit for any taxable year is an amount equal to $15 per 
metric ton of qualified carbon dioxide which is--
            ``(1) captured by the taxpayer at a qualified facility, and
            ``(2) used by the taxpayer as a tertiary injectant in a 
        qualified enhanced oil or natural gas recovery project.
    ``(b) Qualified Carbon Dioxide.--For purposes of this section--
            ``(1) In general.--The term `qualified carbon dioxide' 
        means carbon dioxide captured from an industrial source which--
                    ``(A) would otherwise be released into the 
                atmosphere as industrial emission of greenhouse gas, 
                and
                    ``(B) is measured at the source of capture and 
                verified at the point of disposal or injection.
            ``(2) Recycled carbon dioxide.--The term `qualified carbon 
        dioxide' includes the initial deposit of captured carbon 
        dioxide used as a tertiary injectant. Such term does not 
        include carbon dioxide that is recaptured, recycled, and re-
        injected as part of the enhanced oil and natural gas recovery 
        process.
    ``(c) Qualified Facility.--For purposes of this section, the term 
`qualified facility' means any industrial facility--
            ``(1) which is owned by the taxpayer,
            ``(2) at which carbon capture equipment is placed in 
        service, and
            ``(3) which captures not less than 500,000 metric tons of 
        carbon dioxide during the taxable year.
    ``(d) Special Rules and Other Definitions.--For purposes of this 
section--
            ``(1) Only carbon dioxide captured within the united states 
        taken into account.--The credit under this section shall apply 
        only with respect to qualified carbon dioxide the capture of 
        which is within--
                    ``(A) the United States (within the meaning of 
                section 638(1)), or
                    ``(B) a possession of the United States (within the 
                meaning of section 638(2)).
            ``(2) Tertiary injectant.--The term `tertiary injectant' 
        has the same meaning as when used within section 193(b)(1).
            ``(3) Qualified enhanced oil or natural gas recovery 
        project.--The term `qualified enhanced oil or natural gas 
        recovery project' has the meaning given the term `qualified 
        enhanced oil recovery project' by section 43(c)(2), by 
        substituting `crude oil or natural gas' for `crude oil' in 
        subparagraph (A)(i) thereof.
            ``(4) Credit attributable to taxpayer.--Any credit under 
        this section shall be attributable to the person that captures 
        and physically or contractually ensures the use as a tertiary 
        injectant of the qualified carbon dioxide, except to the extent 
        provided in regulations prescribed by the Secretary.
            ``(5) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any qualified carbon 
        dioxide which ceases to be captured or used as a tertiary 
        injectant in a manner consistent with the requirements of this 
        section.
            ``(6) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 2009, there shall be 
        substituted for each dollar amount contained in subsection (a) 
        an amount equal to the product of--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the inflation adjustment factor for such 
                calendar year determined under section 43(b)(3)(B) for 
                such calendar year, determined by substituting `2008' 
                for `1990'.
    ``(e) Application of Section.--The credit under this section shall 
apply with respect to qualified carbon dioxide before the end of the 
calendar year in which the Secretary, in consultation with the 
Administrator of the Environmental Protection Agency, certifies that 
75,000,000 metric tons of qualified carbon dioxide have been captured 
and disposed of or used as a tertiary injectant.''.
    (b) Conforming Amendment.--Section 38(b) of the Internal Revenue 
Code of 1986 (relating to general business credit), as amended by this 
Act, is amended by striking ``plus'' at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and inserting ``, 
plus'', and by adding at the end of following new paragraph:
            ``(38) the carbon dioxide sequestration credit determined 
        under section 45R(a).''.
    (c) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to other credits), as amended by this Act, is amended by 
adding at the end the following new section:

``Sec. 45R. Credit for carbon dioxide sequestration.''.
    (d) Effective Date.--The amendments made by 2 this section shall 
apply carbon dioxide captured after the date of the enactment of this 
Act.

                           TITLE VII--OFFSETS

SEC. 700. REFERENCE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

                 Subtitle A--Ending Unneeded Tax Breaks

SEC. 701. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC 
              PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS THEREOF.

    (a) Denial of Deduction for Major Integrated Oil Companies and 
State-Owned Oil Companies for Income Attributable to Domestic 
Production of Oil, Gas, or Primary Products Thereof.--
            (1) In general.--Subparagraph (B) of section 199(c)(4) of 
        the Internal Revenue Code of 1986 (relating to exceptions) is 
        amended by striking ``or'' at the end of clause (ii), by 
        striking the period at the end of clause (iii) and inserting 
        ``, or'', and by inserting after clause (iii) the following new 
        clause:
                            ``(iv) in the case of any disqualified oil 
                        company, the production, refining, processing, 
                        transportation, or distribution of oil, gas, or 
                        any primary product thereof.''.
            (2) Disqualified oil company.--Section 199(c) of such Code 
        is amended by adding at the end the following new paragraph:
            ``(8) Disqualified oil company.--
                    ``(B) In general.--The term `disqualified oil 
                company' means--
                            ``(i) any major integrated oil company (as 
                        defined in section 167(h)(5)(B)) during any 
                        taxable year described in section 167(h)(5)(B), 
                        or
                            ``(ii) any controlled commercial entity (as 
                        defined in section 892(a)(2)(B)) the commercial 
                        activities of which during the taxable year 
                        includes the production, refining, processing, 
                        transportation, or distribution of oil, gas, or 
                        any primary product thereof.
                    ``(C) Primary product.--The term `primary product' 
                has the same meaning as when used in section 
                927(a)(2)(C), as in effect before its repeal.''.
    (b) Limitation on Oil Related Qualified Production Activities 
Income for Taxpayers Other Than Major Integrated Oil Companies and 
State Owned Oil Companies.--
            (1) In general.--Section 199(d) of the Internal Revenue 
        Code of 1986 is amended by redesignating paragraph (9) as 
        paragraph (10) and by inserting after paragraph (8) the 
        following new paragraph:
            ``(9) Special rule for taxpayers with oil related qualified 
        production activities income.--
                    ``(A) In general.--If a taxpayer (other than a 
                disqualified oil company) has oil related qualified 
                production activities income for any taxable year 
                beginning after 2009, the amount of the deduction under 
                subsection (a) shall be reduced by 3 percent of the 
                least of--
                            ``(i) the oil related qualified production 
                        activities income of the taxpayer for the 
                        taxable year;
                            ``(ii) the qualified production activities 
                        income of the taxpayer for the taxable year; or
                            ``(iii) taxable income (determined without 
                        regard to this section).
                    ``(B) Oil related qualified production activities 
                income.--The term `oil related qualified production 
                activities income' means for any taxable year the 
                qualified production activities income which is 
                attributable to the production, refining, processing, 
                transportation, or distribution of oil, gas, or any 
                primary product thereof during such taxable year.''.
            (2) Conforming amendment.--Section 199(d)(2) of such Code 
        (relating to application to individuals) is amended by striking 
        ``subsection (a)(1)(B)'' and inserting ``subsections (a)(1)(B) 
        and (d)(9)(A)(iii)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 702. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL 
              EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL COMPANIES.

    (a) In General.--Subparagraph (A) of section 167(h)(5) (relating to 
special rule for major integrated oil companies) is amended by striking 
``5-year'' and inserting ``7-year''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after the date of the enactment of this 
Act.

SEC. 703. CLARIFICATION OF DETERMINATION OF FOREIGN OIL AND GAS 
              EXTRACTION INCOME.

    (a) In General.--Paragraph (1) of section 907(c) is amended by 
redesignating subparagraph (B) as subparagraph (C), by striking ``or'' 
at the end of subparagraph (A), and by inserting after subparagraph (A) 
the following new subparagraph:
                    ``(B) so much of any transportation of such 
                minerals as occurs before the fair market value event, 
                or''.
    (b) Fair Market Value Event.--Subsection (c) of section 907 is 
amended by adding at the end the following new paragraph:
            ``(6) Fair market value event.--For purposes of this 
        section, the term `fair market value event' means, with respect 
        to any mineral, the first point in time at which such mineral--
                    ``(A) has a fair market value which can be 
                determined on the basis of a transfer, which is an 
                arm's length transaction, of such mineral from the 
                taxpayer to a person who is not related (within the 
                meaning of section 482) to such taxpayer, or
                    ``(B) is at a location at which the fair market 
                value is readily ascertainable by reason of 
                transactions among unrelated third parties with respect 
                to the same mineral (taking into account source, 
                location, quality, and chemical composition).''.
    (c) Special Rule for Certain Petroleum Taxes.--Subsection (c) of 
section 907, as amended by subsection (b), is amended to by adding at 
the end the following new paragraph:
            ``(7) Oil and gas taxes.--In the case of any tax imposed by 
        a foreign country which is limited in its application to 
        taxpayers engaged in oil or gas activities--
                    ``(A) the term `oil and gas extraction taxes' shall 
                include such tax,
                    ``(B) the term `foreign oil and gas extraction 
                income' shall include any taxable income which is taken 
                into account in determining such tax (or is directly 
                attributable to the activity to which such tax 
                relates), and
                    ``(C) the term `foreign oil related income' shall 
                not include any taxable income which is treated as 
                foreign oil and gas extraction income under 
                subparagraph (B).''.
    (d) Conforming Amendments.--
            (1) Subparagraph (C) of section 907(c)(1), as redesignated 
        by this section, is amended by inserting ``or used by the 
        taxpayer in the activity described in subparagraph (B)'' before 
        the period at the end.
            (2) Subparagraph (B) of section 907(c)(2) is amended to 
        read as follows:
                    ``(B) so much of the transportation of such 
                minerals or primary products as is not taken into 
                account under paragraph (1)(B),''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 704. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL CREDIT.

    (a) Coproduction With Petroleum Feedstock.--
            (1) In general.--Paragraph (3) of section 40A(f) (defining 
        renewable diesel) is amended by adding at the end the following 
        flush sentence:
        ``Such term does not include any fuel derived from coprocessing 
        biomass with a feedstock which is not biomass. For purposes of 
        this paragraph, the term `biomass' has the meaning given such 
        term by section 45K(c)(3).''.
            (2) Conforming amendment.--Paragraph (3) of section 40A(f) 
        is amended by striking ``(as defined in section 45K(c)(3))''.
    (b) Clarification of Eligibility for Alternative Fuel Credit.--
            (1) In general.--Subparagraph (F) of section 6426(d)(2) is 
        amended by striking ``hydrocarbons'' and inserting ``fuel''.
            (2) Conforming amendment.--Section 6426 is amended by 
        adding at the end the following new subsection:
    ``(h) Denial of Double Benefit.--No credit shall be determined 
under subsection (d) or (e) with respect to any fuel with respect to 
which credit may be determined under subsection (b) or (c) or under 
section 40 or 40A.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel produced, 
        and sold or used, after June 30, 2007.
            (2) Clarification of eligibility for alternative fuel 
        credit.--The amendment made by subsection (b) shall take effect 
        as if included in section 11113 of the Safe, Accountable, 
        Flexible, Efficient Transportation Equity Act: A Legacy for 
        Users.

SEC. 705. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO PROVIDE 
              AN INCENTIVE FOR UNITED STATES PRODUCTION.

    (a) Biodiesel Fuels Credit.--Paragraph (5) of section 40A(d), as 
added by subsection (c), is amended to read as follows:
            ``(5) Limitation to biodiesel with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any biodiesel unless--
                    ``(A) such biodiesel is produced in the United 
                States for use as a fuel in the United States, and
                    ``(B) the taxpayer obtains a certification (in such 
                form and manner as prescribed by the Secretary) from 
                the producer of the biodiesel which identifies the 
                product produced and the location of such production.
        For purposes of this paragraph, the term `United States' 
        includes any possession of the United States.''.
    (b) Excise Tax Credit.--Paragraph (2) of section 6426(i), as added 
by subsection (c), is amended to read as follows:
            ``(2) Biodiesel and alternative fuels.--No credit shall be 
        determined under this section with respect to any biodiesel or 
        alternative fuel unless--
                    ``(A) such biodiesel or alternative fuel is 
                produced in the United States for use as a fuel in the 
                United States, and
                    ``(B) the taxpayer obtains a certification (in such 
                form and manner as prescribed by the Secretary) from 
                the producer of such biodiesel or alternative fuel 
                which identifies the product produced and the location 
                of such production.''.
    (c) Provisions Clarifying Treatment of Fuels With No Nexus to the 
United States.--
            (1) Alcohol fuels credit.--Subsection (d) of section 40 is 
        amended by adding at the end the following new paragraph:
            ``(6) Limitation to alcohol with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any alcohol which is produced outside the United 
        States for use as a fuel outside the United States. For 
        purposes of this paragraph, the term `United States' includes 
        any possession of the United States.''.
            (2) Biodiesel fuels credit.--Subsection (d) of section 40A 
        is amended by adding at the end the following new paragraph:
            ``(5) Limitation to biodiesel with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any biodiesel which is produced outside the United 
        States for use as a fuel outside the United States. For 
        purposes of this paragraph, the term `United States' includes 
        any possession of the United States.''.
            (3) Excise tax credit.--
                    (A) In general.--Section 6426, as amended by this 
                Act, is amended by adding at the end the following new 
                subsection:
    ``(i) Limitation to Fuels With Connection to the United States.--
            ``(1) Alcohol.--No credit shall be determined under this 
        section with respect to any alcohol which is produced outside 
        the United States for use as a fuel outside the United States.
            ``(2) Biodiesel and alternative fuels.--No credit shall be 
        determined under this section with respect to any biodiesel or 
        alternative fuel which is produced outside the United States 
        for use as a fuel outside the United States.
For purposes of this subsection, the term `United States' includes any 
possession of the United States.''.
                    (B) Conforming amendment.--Subsection (e) of 
                section 6427 is amended by redesignating paragraph (5) 
                as paragraph (6) and by inserting after paragraph (4) 
                the following new paragraph:
            ``(5) Limitation to fuels with connection to the united 
        states.--No amount shall be payable under paragraph (1) or (2) 
        with respect to any mixture or alternative fuel if credit is 
        not allowed with respect to such mixture or alternative fuel by 
        reason of section 6426(i).''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel produced, 
        and sold or used, after the date of the enactment of this Act.
            (2) Provisions clarifying treatment of fuels with no nexus 
        to the united states.--
                    (A) In general.--Except as otherwise provided in 
                this paragraph, the amendments made by subsection (c) 
                shall take effect as if included in section 301 of the 
                American Jobs Creation Act of 2004.
                    (B) Alternative fuel credits.--So much of the 
                amendments made by subsection (c) as relate to the 
                alternative fuel credit or the alternative fuel mixture 
                credit shall take effect as if included in section 
                11113 of the Safe, Accountable, Flexible, Efficient 
                Transportation Equity Act: A Legacy for Users.
                    (C) Renewable diesel.--So much of the amendments 
                made by subsection (c) as relate to renewable diesel 
                shall take effect as if included in section 1346 of the 
                Energy Policy Act of 2005.

               Subtitle B--Additional Revenue Provisions

SEC. 711. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN TAX 
              INDIFFERENT PARTIES.

    (a) In General.--Subpart B of part II of subchapter E of chapter 1 
is amended by inserting after section 457 the following new section:

``SEC. 457A. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN TAX 
              INDIFFERENT PARTIES.

    ``(a) In General.--Any compensation which is deferred under a 
nonqualified deferred compensation plan of a nonqualified entity shall 
be includible in gross income when there is no substantial risk of 
forfeiture of the rights to such compensation.
    ``(b) Nonqualified Entity.--For purposes of this section, the term 
`nonqualified entity' means--
            ``(1) any foreign corporation unless substantially all of 
        its income is--
                    ``(A) effectively connected with the conduct of a 
                trade or business in the United States, or
                    ``(B) subject to a comprehensive foreign income 
                tax, and
            ``(2) any partnership unless substantially all of its 
        income is allocated to persons other than--
                    ``(A) foreign persons with respect to whom such 
                income is not subject to a comprehensive foreign income 
                tax, and
                    ``(B) organizations which are exempt from tax under 
                this title.
    ``(c) Determinability of Amounts of Compensation.--
            ``(1) In general.--If the amount of any compensation is not 
        determinable at the time that such compensation is otherwise 
        includible in gross income under subsection (a)--
                    ``(A) such amount shall be so includible in gross 
                income when determinable, and
                    ``(B) the tax imposed under this chapter for the 
                taxable year in which such compensation is includible 
                in gross income shall be increased by the sum of--
                            ``(i) the amount of interest determined 
                        under paragraph (2), and
                            ``(ii) an amount equal to 20 percent of the 
                        amount of such compensation.
            ``(2) Interest.--For purposes of paragraph (1)(B)(i), the 
        interest determined under this paragraph for any taxable year 
        is the amount of interest at the underpayment rate under 
        section 6621 plus 1 percentage point on the underpayments that 
        would have occurred had the deferred compensation been 
        includible in gross income for the taxable year in which first 
        deferred or, if later, the first taxable year in which such 
        deferred compensation is not subject to a substantial risk of 
        forfeiture.
    ``(d) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Substantial risk of forfeiture.--
                    ``(A) In general.--The rights of a person to 
                compensation shall be treated as subject to a 
                substantial risk of forfeiture only if such person's 
                rights to such compensation are conditioned upon the 
                future performance of substantial services by any 
                individual.
                    ``(B) Exception for compensation based on gain 
                recognized on an investment asset.--
                            ``(i) In general.--To the extent provided 
                        in regulations prescribed by the Secretary, if 
                        compensation is determined solely by reference 
                        to the amount of gain recognized on the 
                        disposition of an investment asset, such 
                        compensation shall be treated as subject to a 
                        substantial risk of forfeiture until the date 
                        of such disposition.
                            ``(ii) Investment asset.--For purposes of 
                        clause (i), the term `investment asset' means 
                        any single asset (other than an investment fund 
                        or similar entity)--
                                    ``(I) acquired directly by an 
                                investment fund or similar entity,
                                    ``(II) with respect to which such 
                                entity does not (nor does any person 
                                related to such entity) participate in 
                                the active management of such asset (or 
                                if such asset is an interest in an 
                                entity, in the active management of the 
                                activities of such entity), and
                                    ``(III) substantially all of any 
                                gain on the disposition of which (other 
                                than such deferred compensation) is 
                                allocated to investors in such entity.
                            ``(iii) Coordination with special rule.--
                        Paragraph (3)(B) shall not apply to any 
                        compensation to which clause (i) applies.
            ``(2) Comprehensive foreign income tax.--The term 
        `comprehensive foreign income tax' means, with respect to any 
        foreign person, the income tax of a foreign country if--
                    ``(A) such person is eligible for the benefits of a 
                comprehensive income tax treaty between such foreign 
                country and the United States, or
                    ``(B) such person demonstrates to the satisfaction 
                of the Secretary that such foreign country has a 
                comprehensive income tax.
            ``(3) Nonqualified deferred compensation plan.--
                    ``(A) In general.--The term `nonqualified deferred 
                compensation plan' has the meaning given such term 
                under section 409A(d), except that such term shall 
                include any plan that provides a right to compensation 
                based on the appreciation in value of a specified 
                number of equity units of the service recipient.
                    ``(B) Exception.--Compensation shall not be treated 
                as deferred for purposes of this section if the service 
                provider receives payment of such compensation not 
                later than 12 months after the end of the taxable year 
                of the service recipient during which the right to the 
                payment of such compensation is no longer subject to a 
                substantial risk of forfeiture.
            ``(4) Exception for certain compensation with respect to 
        effectively connected income.--In the case a foreign 
        corporation with income which is taxable under section 882, 
        this section shall not apply to compensation which, had such 
        compensation had been paid in cash on the date that such 
        compensation ceased to be subject to a substantial risk of 
        forfeiture, would have been deductible by such foreign 
        corporation against such income.
            ``(5) Application of rules.--Rules similar to the rules of 
        paragraphs (5) and (6) of section 409A(d) shall apply.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section, including regulations disregarding a substantial risk of 
forfeiture in cases where necessary to carry out the purposes of this 
section.''.
    (b) Conforming Amendment.--Section 26(b)(2) is amended by striking 
``and'' at the end of subparagraph (U), by striking the period at the 
end of subparagraph (V) and inserting ``, and'', and by adding at the 
end the following new subparagraph:
                    ``(W) section 457A(c)(1)(B) (relating to 
                determinability of amounts of compensation).''.
    (c) Clerical Amendment.--The table of sections of subpart B of part 
II of subchapter E of chapter 1 is amended by inserting after the item 
relating to section 457 the following new item:

``Sec. 457A. Nonqualified deferred compensation from certain tax 
                            indifferent parties.''.
    (d) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        amounts deferred which are attributable to services performed 
        after December 31, 2008.
            (2) Application to existing deferrals.--In the case of any 
        amount deferred to which the amendments made by this section do 
        not apply solely by reason of the fact that the amount is 
        attributable to services performed before January 1, 2009, to 
        the extent such amount is not includible in gross income in a 
        taxable year beginning before 2018, such amounts shall be 
        includible in gross income in the later of--
                    (A) the last taxable year beginning before 2018, or
                    (B) the taxable year in which there is no 
                substantial risk of forfeiture of the rights to such 
                compensation (determined in the same manner as 
                determined for purposes of section 457A of the Internal 
                Revenue Code of 1986, as added by this section).
            (3) Charitable contributions of existing deferrals 
        permitted.--
                    (A) In general.--Subsection (b) of section 170 of 
                the Internal Revenue Code of 1986 shall not apply to 
                (and subsections (b) and (d) of such section shall be 
                applied without regard to) so much of the taxpayer's 
                qualified contributions made during the taxpayer's last 
                taxable year beginning before 2018 as does not exceed 
                the taxpayer's qualified inclusion amount. For purposes 
                of subsection (b) of section 170 of such Code, the 
                taxpayer's contribution base for such last taxable year 
                shall be reduced by the amount of the taxpayer's 
                qualified contributions to which such subsection does 
                not apply by reason the preceding sentence.
                    (B) Qualified contributions.--For purposes of this 
                paragraph, the term ``qualified contributions'' means 
                the aggregate charitable contributions (as defined in 
                section 170(c) of such Code) paid in cash by the 
                taxpayer to organizations described in section 
                170(b)(1)(A) of such Code (other than any organization 
                described in section 509(a)(3) of such Code or any fund 
                or account described in section 4966(d)(2) of such 
                Code).
                    (C) Qualified inclusion amount.--For purposes of 
                this paragraph, the term ``qualified inclusion amount'' 
                means the amount includible in the taxpayer's gross 
                income for the last taxable year beginning before 2018 
                by reason of paragraph (2).
            (4) Accelerated payments.--No later than 120 days after the 
        date of the enactment of this Act, the Secretary shall issue 
        guidance providing a limited period of time during which a 
        nonqualified deferred compensation arrangement attributable to 
        services performed on or before December 31, 2008, may, without 
        violating the requirements of section 409A(a) of the Internal 
        Revenue Code of 1986, be amended to conform the date of 
        distribution to the date the amounts are required to be 
        included in income.
            (5) Certain back-to-back arrangements.--If the taxpayer is 
        also a service recipient and maintains one or more nonqualified 
        deferred compensation arrangements for its service providers 
        under which any amount is attributable to services performed on 
        or before December 31, 2008, the guidance issued under 
        paragraph (4) shall permit such arrangements to be amended to 
        conform the dates of distribution under such arrangement to the 
        date amounts are required to be included in the income of such 
        taxpayer under this subsection.
            (6) Accelerated payment not treated as material 
        modification.--Any amendment to a nonqualified deferred 
        compensation arrangement made pursuant to paragraph (4) or (5) 
        shall not be treated as a material modification of the 
        arrangement for purposes of section 409A of the Internal 
        Revenue Code of 1986.

SEC. 712. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF INTEREST.

    Section 864(f) is amended--
            (1) by striking ``December 31, 2010'' in paragraphs (5)(D) 
        and (6) and inserting ``December 31, 2018'', and
            (2) by striking paragraph (7).

SEC. 713. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

    The percentage under subparagraph (C) of section 401(1) of the Tax 
Increase Prevention and Reconciliation Act of 2005 in effect on the 
date of the enactment of this Act is increased by 37.75 percentage 
points.
                                 <all>