110 HR 7239 IH: American Energy, American U.S. House of Representatives 2008-09-29 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I 110th CONGRESS 2d Session H. R. 7239 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.
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.
<enum>I</enum><header>Short-Term Relief for American Energy Consumers</header> <subtitle id="H77A990D0D5B24800960700EA20E228C"><enum>A</enum><header>Consumer Energy Supply</header> <section id="HFB79EDD7A9184B7400DA001DD73D79B3"><enum>101.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle—</text> <paragraph id="H71D28651602240A4AB1CEAC43B0421DB"><enum>(1)</enum><text>the term <quote>light grade petroleum</quote> means crude oil with an API gravity of 30 degrees or higher;</text> </paragraph><paragraph id="HD40C36CF8D544FFCB5456CEA349E02D5"><enum>(2)</enum><text>the term <quote>heavy grade petroleum</quote> means crude oil with an API gravity of 26 degrees or lower; and</text> </paragraph><paragraph id="HA66BE5EEF9B643B5AA78358D9B56575B"><enum>(3)</enum><text>the term <quote>Secretary</quote> means the Secretary of Energy.</text> </paragraph></section><section id="H9524E07DB1DC4F8A9F7F2548A394AAF"><enum>102.</enum><header>Sale and replacement of oil from the strategic petroleum reserve</header> <subsection id="HC5E2C84729974F1F9F422721C7DD5900"><enum>(a)</enum><header>Initial Petroleum Sale and Replacement</header><text>Notwithstanding section 161 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6241">42 U.S.C. 6241</external-xref>), the Secretary shall publish a plan not later than 15 days after the date of enactment of this Act to—</text> <paragraph id="H91E3CA12CB864BB695CB688B68BB7153"><enum>(1)</enum><text>sell, in the amounts and on the schedule described in subsection (b), light grade petroleum from the Strategic Petroleum Reserve and acquire an equivalent volume of heavy grade petroleum;</text> </paragraph><paragraph id="H1299DB6B82DC46598FE2E4A2728AEF9"><enum>(2)</enum><text>deposit the cash proceeds from sales under paragraph (1) into the SPR Petroleum Account established under section 167 of the Energy Policy and Conservation Act (42 U.S.C. 6247); and</text> </paragraph><paragraph commented="no" id="HE38A92DF4B8746F882C46948439EA37"><enum>(3)</enum><text>from the cash proceeds deposited pursuant to paragraph (2), withdraw the amount necessary to pay for the direct administrative and operational costs of the sale and acquisition.</text> </paragraph></subsection><subsection id="H6BA699D9C27843A3A709FD23FAC2ABD"><enum>(b)</enum><header>Amounts and Schedule</header><text>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—</text> <paragraph id="HB5DCD65F962F41F5B72854009C2CD9C1"><enum>(1)</enum><text>shall commence no sooner than 6 months after the date of enactment of this Act;</text> </paragraph><paragraph id="H1DB528F4C0F24A4398AE529478EC8834"><enum>(2)</enum><text>shall be completed, at the discretion of the Secretary, not later than 5 years after the date of enactment of this Act;</text> </paragraph><paragraph id="H35E06FF1DF05401B8FAEDADE1134F590"><enum>(3)</enum><text>shall be carried out in a manner so as to maximize the monetary value to the Federal Government; and</text> </paragraph><paragraph id="H3EFB862A5B84416E91A11295D17B0132"><enum>(4)</enum><text>shall be acquired using the receipts from the sale of light petroleum authorized under this section.</text> </paragraph></subsection><subsection id="H0BD33DFBFB8342C18DD581A67300B9B"><enum>(c)</enum><header>Deferrals</header><text>The Secretary is encouraged to, when economically beneficial and practical, grant requests to defer scheduled deliveries of petroleum to the Reserve under subsection (a) if the deferral will result in a premium paid in additional barrels of oil which will reduce the cost of oil acquisition and increase the volume of oil delivered to the Reserve or yield additional cash bonuses.</text> </subsection></section></subtitle><subtitle id="H8C3ADC11B4C44014970358752D5F07FD"><enum>B</enum><header>Commodity Markets Transparency and Accountability</header> <section id="HEB4B0BA7922A4D2BBCE7FE3508A157BF"><enum>111.</enum><header>Definition of energy commodity</header> <subsection id="HCA009E68B2F94D09B0F90016EE1EF4DC"><enum>(a)</enum><header>Definition of Energy Commodity</header><text>Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended—</text> <paragraph id="HD8AA59B0A31D4EC49E1CB6A04C479E1F"><enum>(1)</enum><text>by redesignating paragraphs (13) through (34) as paragraphs (14) through (35), respectively; and</text> </paragraph><paragraph id="HE1C4B2C8A66346AA8891B323B9D0CFC1"><enum>(2)</enum><text>by inserting after paragraph (12) the following:</text> <quoted-block id="H0A32E82A39DD4FD280BC2E13ADAFE1C3" style="OLC"> <paragraph id="HAE4D9F0333F741038253472F21AA4CB3"><enum>(13)</enum><header>Energy commodity</header><text>The term <quote>energy commodity</quote> means—</text> <subparagraph id="HF1BFD85590FE4176BA8FE4FC387FAB23"><enum>(A)</enum><text>coal;</text> </subparagraph><subparagraph id="H98B549C78CCE4C34BDAC31EB57BAFFBA"><enum>(B)</enum><text>crude oil, gasoline, diesel fuel, jet fuel, heating oil, and propane;</text> </subparagraph><subparagraph id="H414374F27B9643F18D2F874D7817DC1B"><enum>(C)</enum><text>electricity;</text> </subparagraph><subparagraph id="H7CDB9977930749B0AD1E7FBDEEA8BDF5"><enum>(D)</enum><text>natural gas; and</text> </subparagraph><subparagraph id="HAA22758849C2401AB529DDDAB8893061"><enum>(E)</enum><text>any other substance that is used as a source of energy, as the Commission, in its discretion, deems appropriate.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HAA3499F8D4B74937AC003F00D5E0F4CA"><enum>(b)</enum><header>Conforming Amendments</header> <paragraph id="H808F8103FCCC4303B242BA5DCCA5459"><enum>(1)</enum><text>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—</text> <subparagraph id="H6707F6E2DAB3400A979D71CF2F7E13C7"><enum>(A)</enum><text>in subitem (AA), by striking <quote>section 1a(20)</quote> and inserting <quote>section 1a(21)</quote>; and</text> </subparagraph><subparagraph id="H3D7E464F8E974C96B4CE67D45B05BF3D"><enum>(B)</enum><text>in subitem (BB), by striking <quote>section 1a(20)</quote> and inserting <quote>section 1a(21)</quote>.</text> </subparagraph></paragraph><paragraph id="HB8BD893438924731AFF9909BB3E54798"><enum>(2)</enum><text>Section 13106(b)(1) of the Food, Conservation, and Energy Act of 2008 is amended by striking <quote>section 1a(32)</quote> and inserting <quote>section 1a</quote>.</text> </paragraph><paragraph id="H7F464175FEF14C12A779047952BC28CF"><enum>(3)</enum><text>Section 402 of the Legal Certainty for Bank Products Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/7/27">7 U.S.C. 27</external-xref>) is amended—</text> <subparagraph id="H960E6CBD5965481AB338F65FEEB4F4A9"><enum>(A)</enum><text>in subsection (a)(7), by striking <quote>section 1a(20)</quote> and inserting <quote>section 1a</quote>; and</text> </subparagraph><subparagraph id="H7EEFCC1EA6384161A4DEC37FCF62B67"><enum>(B)</enum><text>in subsection (d)—</text> <clause id="HB147D5B2D1954943B0BFFD00042CDAB0"><enum>(i)</enum><text>in paragraph (1)(B), by striking <quote>section 1a(33)</quote> and inserting <quote>section 1a</quote>; and</text> </clause><clause id="H57479FA30D6B4E0F8252CB3439089F84"><enum>(ii)</enum><text>in paragraph (2)(D), by striking <quote>section 1a(13)</quote> and inserting <quote>section 1a</quote>.</text> </clause></subparagraph></paragraph></subsection></section><section id="H1C9546E350D64F899E974B66C57B2412"><enum>112.</enum><header>Speculative limits and transparency of off-shore trading</header> <subsection id="H526729C055584AB5B69E15C4135B0017"><enum>(a)</enum><header>In General</header><text>Section 4 of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6">7 U.S.C. 6</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H4136616D12F54986B514508FD4C97E07" style="OLC"> <subsection id="H906F7C26E8644D3F82007C5CA7AFB7AE"><enum>(e)</enum><header>Foreign Boards of Trade</header> <paragraph id="H4078A8A3F3B34A4D8912DC41044813F4"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph id="H2A5394A258B746C891ACB91B3900B306"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="HBCF8CA13F66A41C2B19B2C96B42CDCC5"><enum>(B)</enum><text>the foreign board of trade (or the foreign futures authority that oversees the foreign board of trade)—</text> <clause id="H46C0025EBD004B6FA71F73A6DAA800E"><enum>(i)</enum><text>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;</text> </clause><clause id="HD9099561376D411E80C3765BE8D2E9A8"><enum>(ii)</enum><text>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;</text> </clause><clause id="HDEB4EEDB31A54EBC9E004ECE2733C600"><enum>(iii)</enum><text>agrees to promptly notify the Commission of any change regarding—</text> <subclause id="H3B69CFC4055949A6A3A16CFB00B5A522"><enum>(I)</enum><text>the information that the foreign board of trade will make publicly available;</text> </subclause><subclause id="HA1EC9EC1A95D4CE9A603FF00CAE80929"><enum>(II)</enum><text>the position limits that the foreign board of trade or foreign futures authority will adopt and enforce;</text> </subclause><subclause id="HC390A14EE1F6412F85991F7BE8B9E209"><enum>(III)</enum><text>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</text> </subclause><subclause id="HAAFFADC5299A45D1BD9614FF08291EAA"><enum>(IV)</enum><text>any other area of interest expressed by the Commission to the foreign board of trade or foreign futures authority;</text> </subclause></clause><clause id="H6D26F0B5DD6B498080BE2CCCF76E6F54"><enum>(iv)</enum><text>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</text> </clause><clause id="H8446247D5F80497D8E2F6219A4333CFF"><enum>(v)</enum><text>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.</text> </clause></subparagraph></paragraph><paragraph id="H45ABA474139D4E359F42D2942F5708B2"><enum>(2)</enum><header>Existing foreign boards of trade</header><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC76E8623F6854F1286507E5D8C1247D9"><enum>(b)</enum><header>Liability of Registered Persons Trading on a Foreign Board of Trade</header> <paragraph id="H74EC4ED169174B7CA66C5500007618A0"><enum>(1)</enum><text>Section 4(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6">7 U.S.C. 6(a)</external-xref>) is amended by inserting <quote>or by subsection (f)</quote> after <quote>Unless exempted by the Commission pursuant to subsection (c)</quote>.</text> </paragraph><paragraph id="HB22573EBB2034DECBCEC84AEA10300E7"><enum>(2)</enum><text>Section 4 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6">7 U.S.C. 6</external-xref>) is further amended by adding at the end the following:</text> <quoted-block id="H4AFE70BDB37A45F3BCF9D404FCB48DA" style="OLC"> <subsection id="H68D0328146CA49D898D2C1096F64C26C"><enum>(f)</enum><text>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).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H66F01F3F41DB4A8892C0AF3509A2038F"><enum>(c)</enum><header>Contract Enforcement for Foreign Futures Contracts</header><text>Section 22(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/25">7 U.S.C. 25(a)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H8077E29181894837BD4709F248153825" style="OLC"> <paragraph id="HD478920D597248DD8F23CEA0B8846619"><enum>(5)</enum><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HE5D8274CCF8941D09E27AF0042A37755"><enum>113.</enum><header>Disaggregation of index funds and other data in energy and agriculture markets</header><text display-inline="no-display-inline">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:</text> <quoted-block id="H82F26A185DDF47F1B05B2D00FD3CEBED" style="OLC"> <subsection id="H2DC4C56E0CF44CD39CEAE49CB7DD5832"><enum>(g)</enum><header>Disaggregation of Index Funds and Other Data in Energy and Agriculture Markets</header><text>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—</text> <paragraph id="H957CFC7D4A6B4956A553E331675313B1"><enum>(1)</enum><text>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</text> </paragraph><paragraph id="H86128FD736C048E895331085E623DC28"><enum>(2)</enum><text>data on speculative positions relative to bona fide physical hedgers in those markets to the extent such information is available.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H9979DB48A2C4485A8469E04ABA11653"><enum>114.</enum><header>Detailed reporting from index traders and swap dealers</header><text display-inline="no-display-inline">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:</text> <quoted-block id="H8748EA8E41124A2693C264EB00F1274E" style="OLC"> <subsection id="H90387DE29F8944088513A5C4C7F46FA7"><enum>(h)</enum><header>Index Traders and Swap Dealers Reporting</header><text>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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HC2AF48CD83264328ACAC8C592BBC185E"><enum>115.</enum><header>Transparency and recordkeeping authorities</header> <subsection id="HD100294F559E406788840736C0531171"><enum>(a)</enum><header>In General</header><text>Section 4g(a) of the Commodity Exchange Act (7 U.S.C. 6g(a)) is amended—</text> <paragraph id="HB56D855403664F2BA18F9C80A2671562"><enum>(1)</enum><text>by inserting <quote>a</quote> before <quote>futures commission merchant</quote>; and</text> </paragraph><paragraph id="HE925583EEC0548289BC95E9857C3A73B"><enum>(2)</enum><text>by inserting <quote>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,</quote> after <quote>United States or elsewhere,</quote>.</text> </paragraph></subsection><subsection id="H84CB2164D63D4DB7B810D23D8F96F4CD"><enum>(b)</enum><header>Reports of Deals Equal to or in Excess of Trading Limits</header><text>Section 4i of such Act (7 U.S.C. 6i) is amended—</text> <paragraph id="H0F6D43CFEE8643B0BB6E4152DFFAF78E"><enum>(1)</enum><text>in the first sentence—</text> <subparagraph id="HB9C8AA8E1B4B42FE9E3B1600E36FDA67"><enum>(A)</enum><text>by inserting <quote>(a)</quote> before <quote>It shall</quote>; and</text> </subparagraph><subparagraph id="HE365AE5E62D940F6A5B51EB09FCEB210"><enum>(B)</enum><text>by inserting <quote>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</quote> before <quote>, and of cash or spot</quote>; and</text> </subparagraph></paragraph><paragraph id="HA47FFA31137244449C27E4268DE54886"><enum>(2)</enum><text>by striking all that follows the 1st sentence and inserting the following:</text> <quoted-block id="H111895516E424D03A4C5F1DA0882AEB2" style="OLC"> <subsection id="H0FDF8B5495A848A688F9D0666212C0DA"><enum>(b)</enum><text>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).</text> </subsection><subsection id="HF971BE9E00B04BC7BC95AFB44E9D8B83"><enum>(c)</enum><text>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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H02585EC2A3C4438DBC25B98B005C194F"><enum>(c)</enum><header>Conforming Amendments</header> <paragraph id="H1ECAC8075EE640B09D438ED3C375E0C7"><enum>(1)</enum><text>Section 2(g) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(g)</external-xref>) is amended—</text> <subparagraph id="H62B6480BF85E4A39BE75C8E2203C7345"><enum>(A)</enum><text>by inserting <quote>4g(a), 4i,</quote> before <quote>5a (to</quote>; and</text> </subparagraph><subparagraph id="H0AC627F0818D4D35BC96FF71E53134EC"><enum>(B)</enum><text>by inserting <quote>, and the regulations of the Commission pursuant to section 4c(b) requiring reporting in connection with commodity option transactions,</quote> before <quote>shall apply</quote>.</text> </subparagraph></paragraph><paragraph id="H9DB13A98052D43F3833C1D168095D07C"><enum>(2)</enum><text>Section 2(h)(2)(A) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(h)(2)(A)</external-xref>) is amended to read as follows:</text> <quoted-block id="H2DC18851CB044FF4AEA0090F8EBA1DF" style="OLC"> <subparagraph id="HB50DC21328A54078B348486E3F85551B"><enum>(A)</enum><text>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;</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="H59C14EB7B77046EA91DFACB3EE994D1"><enum>116.</enum><header>Trading limits to prevent excessive speculation</header><text display-inline="no-display-inline">Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is amended—</text> <paragraph id="H219827229DCB44138CCFA5313DE005E4"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="H225536205EA1426391BA9314741EF5B6"><enum>(A)</enum><text>by inserting <quote>(1)</quote> after <quote>(a)</quote>; and</text> </subparagraph><subparagraph id="H4770F4B68D394A53AE586BF4B2474B00"><enum>(B)</enum><text>by adding after and below the end the following:</text> <quoted-block id="HCC12C91348E6474296816816E1DED6C4" style="OLC"> <paragraph id="HCCB094F917504F4ABC102CAC82327693"><enum>(2)</enum><text>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.</text> </paragraph><paragraph id="H2426CEA4B92A4B0BA55C94FF535259C5"><enum>(3)</enum><text>In establishing the limits required in paragraph (2), the Commission shall set limits—</text> <subparagraph id="HD5C8D826BEBF4DCB890726C163002B2B"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="H24B8056ED0CB41448FE02EC600128BA1"><enum>(B)</enum><text>to the maximum extent practicable, in its discretion—</text> <clause id="H7AE1010C02944BE796F95D0076024304"><enum>(i)</enum><text>to diminish, eliminate, or prevent excessive speculation as described under this section;</text> </clause><clause id="HC515246FD62C4B0C9F5B00F26C1B1787"><enum>(ii)</enum><text>to deter and prevent market manipulation, squeezes, and corners;</text> </clause><clause id="H1B5E5802BA424319ADFEA5F3002BEC93"><enum>(iii)</enum><text>to ensure sufficient market liquidity for bona fide hedgers; and</text> </clause><clause id="H6B95612FDA8C4365AB0792CA9360E306"><enum>(iv)</enum><text>to ensure that the price discovery function of the underlying market is not disrupted; and</text> </clause></subparagraph><subparagraph id="H978B1D6F88FA428997F9E2BFAFC66807"><enum>(C)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="HD3598D5D720543C68372B6C09206CB54"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H8D3E155D06394E5A8EB57D81B552B57"><enum>(A)</enum><text>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—</text> <clause id="HF6E95C335EF143A69CD5481E6BAF6BFB" indent="up1"><enum>(i)</enum><text>5 predominantly commercial short hedgers of the actual physical commodity for future delivery;</text> </clause><clause id="H44C1AA1416604AC293445084DD321FC0" indent="up1"><enum>(ii)</enum><text>5 predominantly commercial long hedgers of the actual physical commodity for future delivery;</text> </clause><clause id="H4EF26DCCA5ED4AE8B942C7DBF96BC4D0" indent="up1"><enum>(iii)</enum><text>4 noncommercial participants in markets for commodities for future delivery; and</text> </clause><clause id="HEDA4A83D7CCF4EEBA34CFC2DCE9DDE04" indent="up1"><enum>(iv)</enum><text>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.</text> </clause></subparagraph><subparagraph id="H3B7C28E932A44F7BB7970075710008CF" indent="up1"><enum>(B)</enum><text>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).</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="HA4AACCC9C433402C9D7FCB8B3F78E353"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="H875B6EB8FFE343589F8FBAFBB7673EB8"><enum>(A)</enum><text>by inserting <quote>(1)</quote> after <quote>(c)</quote>; and</text> </subparagraph><subparagraph id="H6BA4D7B3B4B44AE88D52884DBCB59802"><enum>(B)</enum><text>by adding after and below the end the following:</text> <quoted-block id="H5C38D4D9998C4CAC93495461E6D2D8F7" style="OLC"> <paragraph id="H3342C4E4B8044D99009F5E1ED787E8BC"><enum>(2)</enum><text>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—</text> <subparagraph id="H4D7CEEC356394C8A8E6C74D8FF10BC5F"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="HACDAE99CC6DD43628550A140C7B5CB48"><enum>(i)</enum><text>represents a substitute for transactions to be made or positions to be taken at a later time in a physical marketing channel;</text> </clause><clause id="H22A6ADE868D64897B94EBD71E61B8141" indent="up1"><enum>(ii)</enum><text>is economically appropriate to the reduction of risks in the conduct and management of a commercial enterprise; and</text> </clause><clause id="HA8F83500230F476FBB44AA86056600BE" indent="up1"><enum>(iii)</enum><text>arises from the potential change in the value of—</text> <subclause id="HC5C8737033224CE8804B28F8B55968B8"><enum>(I)</enum><text>assets that a person owns, produces, manufactures, processes, or merchandises or anticipates owning, producing, manufacturing, processing, or merchandising;</text> </subclause><subclause id="HA6DDF27915AD46D0912711943D52135E"><enum>(II)</enum><text>liabilities that a person owns or anticipates incurring; or</text> </subclause><subclause id="H954E3F1BDC6D4B238DDA2CFDB787C48D"><enum>(III)</enum><text>services that a person provides, purchases, or anticipates providing or purchasing; or</text> </subclause></clause></subparagraph><subparagraph id="H88D6662BB6A84E959EA4EFFE3F977DA"><enum>(B)</enum><text>reduces risks attendant to a position resulting from a transaction that—</text> <clause id="H4B314EAA73124813B87DA4DBE16E1E3C"><enum>(i)</enum><text>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</text> </clause><clause id="H62F58A713A95495DB6A19945B5CD34E5"><enum>(ii)</enum><text>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.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></section><section id="HD0D6FBA417BA4EBBB094D693DE6F9C47"><enum>117.</enum><header>Modifications to core principles applicable to position limits for contracts in agricultural and energy commodities</header> <subsection id="H2C48F96D429547FBA1ED3F6DEABB76C9"><enum>(a)</enum><header>Contracts Traded on Contract Markets</header><text>Section 5(d)(5) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7">7 U.S.C. 7(d)(5)</external-xref>) is amended by striking all that follows <quote>adopt</quote> and inserting <quote>, 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.</quote>.</text> </subsection><subsection id="HF61365BDF66444EAB391B2EA3C15CF4F"><enum>(b)</enum><header>Contracts Traded on Derivatives Transaction Execution Facilities</header><text>Section 5a(d)(4) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7a">7 U.S.C. 7a(d)(4)</external-xref>) is amended by striking all that follows <quote>adopt</quote> and inserting <quote>, 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.</quote>.</text> </subsection><subsection id="H47EF70A2CCB1440100A3524BBBBA0980"><enum>(c)</enum><header>Significant Price Discovery Contracts</header><text>Section 2(h)(7)(C)(ii)(IV) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(h)(7)(C)(ii)(IV)</external-xref>) is amended by striking <quote>where necessary</quote> and all that follows through <quote>in significant price discovery contracts</quote> and inserting <quote>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</quote>.</text> </subsection></section><section id="HDA05DF04E4A84A41B47E6923C48331CA"><enum>118.</enum><header>CFTC administration</header> <subsection id="H02D5125BF4A540F29435F6752E58302E"><enum>(a)</enum><header>Additional Commodity Futures Trading Commission Employees for Improved Enforcement</header><text>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:</text> <quoted-block id="HA622DCBD4ABA45B18085AC6BCA8C4C87" style="OLC"> <subparagraph id="H1A6027379785426481BFB22D81815F"><enum>(D)</enum><header>Additional employees</header><text>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)—</text> <clause id="H6ACF91D4ECF144428D7546E282D655BF"><enum>(i)</enum><text>to increase the public transparency of operations in agriculture and energy markets;</text> </clause><clause id="HE54C0E439BD94B629433E9004431CB85"><enum>(ii)</enum><text>to improve the enforcement of this Act in those markets; and</text> </clause><clause id="H29F9B17E1EA84453A765981DBD1397AD"><enum>(iii)</enum><text>to carry out such other duties as are prescribed by the Commission.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H01A8B99DEC3A48768EB61706B94DFF86"><enum>(b)</enum><header>Inspector General of Commodity Futures Trading Commission</header> <paragraph id="H1CD69BAC726A4969ABEB253E6AB68B3"><enum>(1)</enum><header>Elevation of office</header> <subparagraph id="H7B71739BAEF0466D9F001418B993E5AB"><enum>(A)</enum><header>Inclusion of cftc in definition of establishment</header><text>Section 11(2) of the Inspector General Act of 1878 (5 U.S.C. App.) is amended by striking <quote>or the Export-Import Bank,</quote> and inserting <quote>, the Export-Import Bank, or the Commodity Futures Trading Commission,</quote>.</text> </subparagraph><subparagraph id="H2889B33EE43A4E078B86B498BC731BB9"><enum>(B)</enum><header>Exclusion of cftc from definition of designated federal entity</header><text>Section 8G(a)(2) of such Act (5 U.S.C. App.) is amended by striking <quote>the Commodity Futures Trading Commission,</quote>.</text> </subparagraph></paragraph><paragraph id="HB0066C525A534BA09313EAEAF0CCC4E9"><enum>(2)</enum><header>Transition</header><text>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.</text> </paragraph></subsection></section><section id="HCBECAFAD3D044D95B96861003C00F085"><enum>119.</enum><header>Review of prior actions</header><text display-inline="no-display-inline">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.</text> </section><section id="H57A04EF9F3BD4FC6A4125D5EB1B7E73"><enum>120.</enum><header>Review of over-the-counter markets</header> <subsection id="H1AEDCE09B0594D52A25D987786FA0056"><enum>(a)</enum><header>Study</header><text>The Commodity Futures Trading Commission shall conduct a study—</text> <paragraph id="H6CA09E261245423695439D4FAD615C86"><enum>(1)</enum><text>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</text> </paragraph><paragraph id="H02F74CEF950843229231C10195DE72CA"><enum>(2)</enum><text>to determine the efficacy, practicality, and consequences of establishing aggregate position limits for similar agreements, contracts, or transactions for physical-based commodities traded—</text> <subparagraph id="H5A08E2F3EE4B4A25B51E6CA4BED191B7"><enum>(A)</enum><text>on designated contract markets;</text> </subparagraph><subparagraph id="H24E1B2044929457B9D55EA3DB7E95DEF"><enum>(B)</enum><text>on derivatives transaction execution facilities; and</text> </subparagraph><subparagraph id="H962B3794497F4E20A4FE08C5F712DF73"><enum>(C)</enum><text>in reliance on such sections 2(g) and 2(h) and of any exemption issued by the Commission by rule, regulation or order.</text> </subparagraph></paragraph></subsection><subsection id="H2673B89CF0DB465092CCE364E6F062E"><enum>(b)</enum><header>Public Hearings</header><text>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.</text> </subsection><subsection id="HE54269E062C842AE9C06234C1DEE7E9E"><enum>(c)</enum><header>Report and Recommendations</header><text>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—</text> <paragraph id="H35D5849EDF9E47E89909A1C9377C3100"><enum>(1)</enum><text>describes the results of the study; and</text> </paragraph><paragraph id="H80EC5CC7DB434EF686BE2BBD9051BA23"><enum>(2)</enum><text>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—</text> <subparagraph id="HB4B5D13EDC7545399B2E2820AF3B0623"><enum>(A)</enum><text>any additional statutory authority that the Commission determines to be necessary to implement the recommendations; and</text> </subparagraph><subparagraph id="H0E748F1B91784E21B2023077AB4F4330"><enum>(B)</enum><text>a description of the resources that the Commission considers to be necessary to implement the recommendations.</text> </subparagraph></paragraph></subsection></section><section id="H45A8B7DCABEF457685F3B493FF073BA0"><enum>121.</enum><header>Studies; reports</header> <subsection id="H014C12CBA527401C82E85131A35D2000"><enum>(a)</enum><header>Study Relating to International Regulation of Energy Commodity Markets</header> <paragraph id="H450130D7A1AB44DE8231E3E57948D589"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H185F7BCE2DB44D829077FEEAFAD7E9CE"><enum>(2)</enum><header>Analysis</header><text>The study shall include an analysis of, at a minimum—</text> <subparagraph id="H5DA3B206EF40484700000061125500AB"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="HB2696D8522E046B2A5C51C15AA00C658"><enum>(B)</enum><text>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;</text> </subparagraph><subparagraph id="H177A43F653D9444488CAC8DD3BE716D2"><enum>(C)</enum><text>variations in practices regarding the differentiation of commercial and noncommercial trading;</text> </subparagraph><subparagraph id="HF5CD0248BC87472EAC36ED63004450EA"><enum>(D)</enum><text>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</text> </subparagraph><subparagraph id="H22C70EE91A2C49F9B1418CAC4E00C8D7"><enum>(E)</enum><text>agreements and practices for facilitating international cooperation on market oversight, compliance, and enforcement.</text> </subparagraph></paragraph><paragraph id="H925C2CD53FD24723A4A12771B2D502AE"><enum>(3)</enum><header>Report</header><text>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—</text> <subparagraph id="H4451A85C4DB64E96B400AEFE7546E9EA"><enum>(A)</enum><text>describes the results of the study;</text> </subparagraph><subparagraph id="H9FF92EF9985F490EB22E36057FA1FB45"><enum>(B)</enum><text>addresses whether there is excessive speculation, and if so, the effects of any such speculation and energy price volatility on energy futures; and</text> </subparagraph><subparagraph id="H02BC9D539B204CAD97D4F41F484673E0"><enum>(C)</enum><text>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.</text> </subparagraph></paragraph></subsection><subsection id="H5B76C3B6968A4038BCC95048509E4870"><enum>(b)</enum><header>Study Relating to Effects of Speculators on Agriculture and Energy Futures Markets and Agriculture and Energy Prices</header> <paragraph id="HD18D50A066A247008E195F009ECDF346"><enum>(1)</enum><header>Study</header><text>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.</text> </paragraph><paragraph id="H8B368F6489894C7DBDDFB4E9DB0794AA"><enum>(2)</enum><header>Analysis</header><text>The study shall include an analysis of, at a minimum—</text> <subparagraph id="HED6BD4CC4BE248448591693800DE17C5"><enum>(A)</enum><text>the effect of increased amounts of capital in agriculture and energy futures markets;</text> </subparagraph><subparagraph id="H01254A72B91B40FAA243DEB0898B6232"><enum>(B)</enum><text>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</text> </subparagraph><subparagraph id="HA33EF49048234A398062445C9B4E00BE"><enum>(C)</enum><text>the extent to which each factor described in subparagraphs (A) and (B) and speculators—</text> <clause id="H54D4C4E5A33E40B3B1C4AB38932CE957"><enum>(i)</enum><text>affect—</text> <subclause id="H1BE9F5995AB6427E80A8DAD23B04E88B"><enum>(I)</enum><text>the pricing of agriculture and energy commodities; and</text> </subclause><subclause id="HD1BC29FCC816469092478CB9A2868513"><enum>(II)</enum><text>risk management functions; and</text> </subclause></clause><clause id="H116BCBDE59CE489492CF00C57E1C3FA6"><enum>(ii)</enum><text>contribute to economically efficient price discovery.</text> </clause></subparagraph></paragraph><paragraph id="HB0850C63D0DD43408DE67734B7A0A566"><enum>(3)</enum><header>Report</header><text>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.</text> </paragraph></subsection></section><section id="H5E590DBAACEE4261ABDCC091609FE0"><enum>122.</enum><header>Over-the-counter authority</header> <subsection id="H54A870BB439B425DA7131D1013187518"><enum>(a)</enum><header>In general</header><text>Section 2 of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HB90069740E204F4BB078D42C0194B66B" style="OLC"> <subsection id="HA1C3E46A7BD642B9A1A5BA3BFFCC8161"><enum>(j)</enum><header>Over-the-Counter Authority</header> <paragraph id="HC677845BAA2945A5AE041E7F4E37E38"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="H2F5079F1650A489EBEC000A1D69061C"><enum>(2)</enum><text>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—</text> <subparagraph id="H841E7B3094444F0E944900921ED9A7AF"><enum>(A)</enum><text>disrupt the liquidity or price discovery function on a registered entity;</text> </subparagraph><subparagraph id="H89C2807A911F4B9D90EC21BEF8ECB0EA"><enum>(B)</enum><text>cause a severe market disturbance in the underlying cash or futures market for an agricultural or energy commodity; or</text> </subparagraph><subparagraph id="HD9F04EDEFE7C41B59468B4DFCE19C7C8"><enum>(C)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H536AE8CAC84B4827995727678D9DE400"><enum>(3)</enum><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE08EEBA9312544D7A75D2C4B04A0EBFC"><enum>(b)</enum><header>Conforming Amendments</header> <paragraph id="H704142381F0843CEA27EBBEC13C07C8"><enum>(1)</enum><text>Section 2(g) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(g)</external-xref>) is amended by inserting <quote>subsection (j) of this section, and</quote> after <quote>(other than</quote>.</text> </paragraph><paragraph id="H04DE8C4F9E964E05AE7859BD52843B56"><enum>(2)</enum><text>Section 2(h)(2)(A) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(h)(2)(A)</external-xref>) is amended by inserting <quote>subsection (j) of this section and</quote> before <quote>sections</quote>.</text> </paragraph><paragraph id="H8F68D3EE7069449FBB16CDC31E768343"><enum>(3)</enum><text>Section 8a(9) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/12a">7 U.S.C. 12a(a)(9)</external-xref>) is amended by inserting after <quote>of the Commission’s action</quote> the following: <quote>, 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)</quote>.</text> </paragraph></subsection></section><section id="H2AAA4D540E3140E79BA1DDD653DB6F4"><enum>123.</enum><header>Expedited process</header><text display-inline="no-display-inline">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.</text> </section></subtitle><enum>II</enum><header>National Commission on Energy Independence</header> <section id="H1398212A21424F1C8CD495CB4751F06F"><enum>201.</enum><header>Establishment of Commission</header><text display-inline="no-display-inline">There is established in the legislative branch the National Commission on Energy Independence (referred to in this title as the <quote>Commission</quote>).</text> </section><section id="HB8BB2D17A93142EF00F95C78A85CAED"><enum>202.</enum><header>Purpose</header><text display-inline="no-display-inline">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.</text> </section><section id="HEA4B289C46D04134AECE032600EB3C21"><enum>203.</enum><header>Composition of Commission</header> <subsection id="H0DD2399041334475B172C3DAD3145945"><enum>(a)</enum><header>Members</header><text>The Commission shall be composed of 12 members, of whom—</text> <paragraph id="HCD3EFF025DE24072AFA6BB56DEA3628F"><enum>(1)</enum><text>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;</text> </paragraph><paragraph id="H96C64F4C885D49099356DCBD185F3332"><enum>(2)</enum><text>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;</text> </paragraph><paragraph id="HCD02A4330FC74FFBA8CD86B877956605"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HAB34929B60544EE9B2606153B68DB821"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="HCB7A1A6AE4774F4A8813FD6247780280" indent="up1"><enum>(B)</enum><text>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;</text> </subparagraph></paragraph><paragraph id="HB94FA8DB19204935AB6ED3F40A49312"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H9506D3D73638442F8CA0FA416FE98021"><enum>(A)</enum><text>1 member shall be jointly appointed by the Chair and ranking member of the Committee on Energy and Natural Resources of the Senate; and</text> </subparagraph><subparagraph id="HDB4A3E9B92BF4243ABF6E724832326D4" indent="up1"><enum>(B)</enum><text>1 member shall be jointly appointed by the Chair and ranking member of the Committee on Energy and Commerce of the House of Representatives;</text> </subparagraph></paragraph><paragraph id="H55E1F1E638C1484CB37300E4EA5B0058"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H5C942CDF4425440C9B4823D9DC4DDF2"><enum>(A)</enum><text>1 member shall be jointly appointed by the Chair and ranking member of the Committee on Commerce, Science and Transportation of the Senate; and</text> </subparagraph><subparagraph id="HA87C1BA3C6FC4B9FB8CCB366DC00634D" indent="up1"><enum>(B)</enum><text>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;</text> </subparagraph></paragraph><paragraph id="HCFE99E8FC74F42EA86AAF4ECACF082CB"><enum>(6)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H1F26C7EB5A5149F1B5577B30FA2CE384"><enum>(A)</enum><text>1 member shall be jointly appointed by the Chair and ranking member of the Committee on Agriculture, Nutrition and Forestry of the Senate; and</text> </subparagraph><subparagraph id="HE90543FC60F24A368859E3B3CB912CAB" indent="up1"><enum>(B)</enum><text>1 member shall be jointly appointed by the Chair and ranking member of the Committee on Agriculture of the House of Representatives; and</text> </subparagraph></paragraph><paragraph id="H9103F65DE08242BA8BE690C4A567B9D2"><enum>(7)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HE6034D00A1724417A5E0895DBF5C7722"><enum>(A)</enum><text>1 member shall be jointly appointed by the Chair and ranking member of the Committee on Finance of the Senate; and</text> </subparagraph><subparagraph id="H1CE9A696440C47918E19DD48FBE80066" indent="up1"><enum>(B)</enum><text>1 member shall be jointly appointed by the Chair and ranking member of the Committee on Ways and Means of the House of Representatives.</text> </subparagraph></paragraph></subsection><subsection id="H4FDDEDB60E4542DD8CA492E395E22DA4"><enum>(b)</enum><header>Qualifications; initial meeting</header> <paragraph id="H2CB0D0C13FFF4069B87FE31C002EF881"><enum>(1)</enum><header>Political party affiliation</header><text>Each appointment to the Commission shall be made without regard to political party affiliation and on a nonpartisan basis.</text> </paragraph><paragraph id="HAD21088B0B0D4C19B05475B3A7005953"><enum>(2)</enum><header>Nongovernmental appointees</header><text>An individual appointed to the Commission may not be an officer or employee of the Federal Government or any State or local government—</text> <subparagraph id="H72287707B5DC4C81947F23D3DBF32E18"><enum>(A)</enum><text>on the date on which the individual is appointed to the Commission; or</text> </subparagraph><subparagraph id="H01584465492B40529481C2BAB2B26D14"><enum>(B)</enum><text>at any time during the term of service on the Commission of the individual.</text> </subparagraph></paragraph><paragraph id="H875415B85BC64D0CA12760D9CAF7A85C"><enum>(3)</enum><header>Other qualifications</header><text>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).</text> </paragraph><paragraph id="H604364F4B73A4790A2C862C955B5E27E"><enum>(4)</enum><header>Deadline for appointment</header><text>Each member of the Commission shall be appointed not later than 90 days after the date of enactment of this Act.</text> </paragraph></subsection><subsection id="HFCB59F5AE8D845FF91A6B9F0D6CAEF50"><enum>(c)</enum><header>Meetings</header> <paragraph id="H29E1EED956B34BD6AEAB4F4965FF1307"><enum>(1)</enum><header>Initial meeting</header><text>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.</text> </paragraph><paragraph id="HFBF334CA17F843DCBFA17923EB42A685"><enum>(2)</enum><header>Subsequent meetings</header><text>After the initial meeting under paragraph (1), the Commission shall meet at the call of—</text> <subparagraph id="HF39B55C7C84D4B0489001396957E68EC"><enum>(A)</enum><text>the Chairperson; or</text> </subparagraph><subparagraph id="H74E34ACFB8174C6DA2D532FFC339219D"><enum>(B)</enum><text>a majority of the members of the Commission.</text> </subparagraph></paragraph></subsection><subsection id="H16A2ADF4455043E900BCA0C51FEBA7E"><enum>(d)</enum><header>Quorum</header><text>7 members of the Commission shall constitute a quorum.</text> </subsection><subsection id="H5AC30409E79E48DBB0C8E17600CDF89D"><enum>(e)</enum><header>Vacancies</header><text>A vacancy on the Commission—</text> <paragraph id="H3F5BF511BB114F6E99494DB11B3534DA"><enum>(1)</enum><text>shall not affect the powers of the Commission; and</text> </paragraph><paragraph id="H92B2BD39846F4453A5C746C0130400A4"><enum>(2)</enum><text>shall be filled in the same manner in which the original appointment was made.</text> </paragraph></subsection></section><section id="H069A78CC5F7B4E9BA44489ED31445160"><enum>204.</enum><header>Functions of Commission</header><text display-inline="no-display-inline">The functions of the Commission are—</text> <paragraph id="H0262AF80233E4631B137E0B0D41655F7"><enum>(1)</enum><text>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—</text> <subparagraph id="HC0AA885C0BF249A788C209C1D5B83623"><enum>(A)</enum><text>increased domestic production of energy;</text> </subparagraph><subparagraph id="H05226DD2DFE04090AAB25CA0551FFBE4"><enum>(B)</enum><text>enhanced energy conservation and efficiency; and</text> </subparagraph><subparagraph id="HF1462BE55764481D8BCBA0A5ED3300A0"><enum>(C)</enum><text>the accelerated development of alternative fuels and technologies to transition the United States motor vehicle fleet away from reliance on petroleum-based fuels;</text> </subparagraph></paragraph><paragraph id="H8DF99ECD070749118EFD8341C4E141FE"><enum>(2)</enum><text>to investigate matters that relate to achieving independence from foreign oil, such as—</text> <subparagraph id="HFB8DF7C3548346F593B7CFEDDFC8113"><enum>(A)</enum><text>carbon capture and storage;</text> </subparagraph><subparagraph id="H0C128C7EC8664DBFB41FE2531884F57D"><enum>(B)</enum><text>nuclear and renewable energy; and</text> </subparagraph><subparagraph id="H6C2CFDA58F0D4E4897D1177C5DF76469"><enum>(C)</enum><text>the need for upgrading and transitioning the national grid and other energy infrastructure; and</text> </subparagraph></paragraph><paragraph id="H13ED35E9CC18496CBAB91BB5D99A14"><enum>(3)</enum><text>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.</text> </paragraph></section><section id="HC808D2166B1144FDBD11FD688244C5A"><enum>205.</enum><header>Powers of Commission</header> <subsection id="H8364557181A2401B97E992DB906977C1"><enum>(a)</enum><header>In general</header> <paragraph id="HA87D5325E8A544F5BDA33F43731A1A5"><enum>(1)</enum><header>Rules</header><text>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.</text> </paragraph><paragraph id="H426DB74926D64233B79E3393813FBD33"><enum>(2)</enum><header>Hearings and evidence</header><text>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.</text> </paragraph></subsection><subsection id="HD74DAFF091804CC5A3A8F90000F1886D"><enum>(b)</enum><header>Contracting</header><text>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.</text> </subsection><subsection id="H1239D12088084DA5AFCB4FA4B602E629"><enum>(c)</enum><header>Information from Federal agencies</header> <paragraph id="HF73565C1E2CB45B89F31AB94AE3300AC"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H262CB04177DA4F7F966EE18B807BDDF5"><enum>(2)</enum><header>Provision of information</header><text>On request of the Commission, the head of the agency shall provide the information, suggestions, estimates, and statistics to the Commission.</text> </paragraph><paragraph id="HEA2FA58DB33246639225BD942B6C8660"><enum>(3)</enum><header>Treatment</header><text>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.</text> </paragraph></subsection><subsection id="HD7EB47B571C34D2B9580AB2F87822463"><enum>(d)</enum><header>Assistance from Federal agencies</header> <paragraph id="HC1BB0288C206488C81AF810205B219AE"><enum>(1)</enum><header>General services administration</header><text>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.</text> </paragraph><paragraph id="H0020EC2BF1AC4DB693782FDEF401AFCB"><enum>(2)</enum><header>Other departments and agencies</header><text>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.</text> </paragraph></subsection><subsection id="H5933F850DBE84E02896314376074E5C8"><enum>(e)</enum><header>Gifts</header><text>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.</text> </subsection><subsection id="H12FF2F30E5204C89B4163EB0F7D7D725"><enum>(f)</enum><header>Volunteer services</header> <paragraph id="HA458EF00C14946609D16B5E9F02876DE"><enum>(1)</enum><header>In general</header><text>Notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/31/1342">section 1342</external-xref> of title 31, United States Code, the Commission may accept and use the services of volunteers serving without compensation.</text> </paragraph><paragraph id="H4A4608E0ABD44AAE8D034E2E0063F83B"><enum>(2)</enum><header>Reimbursement</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/5/5703">section 5703</external-xref> of title 5, United States Code.</text> </paragraph><paragraph id="H0937DD40E1DD461A947335625F37F558"><enum>(3)</enum><header>Treatment</header><text>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—</text> <subparagraph id="HBB1D1C4B2D7B4B0CA5A8E531CC2BC58C"><enum>(A)</enum><text>chapter 81 of title 5, United States Code;</text> </subparagraph><subparagraph id="H0E2FA293FB514F3CA6AE345049EE95FB"><enum>(B)</enum><text>chapter 11 of title 18, United States Code; and</text> </subparagraph><subparagraph id="H03D9D1BED03E44CDA870692783725811"><enum>(C)</enum><text>chapter 171 of title 28, United States Code.</text> </subparagraph></paragraph></subsection><subsection id="H1137F346136A49EDA320737EADCAC532"><enum>(g)</enum><header>Postal services</header><text>The Commission may use the United States mails in the same manner and under the same conditions as other agencies of the Federal Government.</text> </subsection></section><section id="HC4D41CE122624B7EA286EE7DC4208E6D"><enum>206.</enum><header>Reports</header><text display-inline="no-display-inline">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.</text> </section><section id="H448D7A32BBAA481700DDBDDD2C969115"><enum>207.</enum><header>Staff of Commission</header> <subsection id="H74A46CC0EDA441649633661732746643"><enum>(a)</enum><header>In general</header><text>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.</text> </subsection><subsection id="H3A4C8B4E076E44159970A20000419FC9"><enum>(b)</enum><header>Compensation</header> <paragraph id="HB26BAA772B614BEDA987D237C500F9C2"><enum>(1)</enum><header>In general</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/53">chapter 53</external-xref> of title 5, United States Code, relating to classification of positions and General Schedule pay rates.</text> </paragraph><paragraph id="HA7829B3F5EAA457CB94FD0D398BFD8DE"><enum>(2)</enum><header>Maximum rate of pay</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/5/5316">section 5316</external-xref> of title 5, United States Code.</text> </paragraph></subsection><subsection id="H55C2C794D1194AC791CACE873CCD07A"><enum>(c)</enum><header>Status</header><text>The staff director and any employee (not including any member) of the Commission shall be considered to be employees under <external-xref legal-doc="usc" parsable-cite="usc/5/2105">section 2105</external-xref> of title 5, United States Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title.</text> </subsection><subsection id="HF9F329801AA34B9DA198ABF31C1442FA"><enum>(d)</enum><header>Consultant services</header><text>The Commission may procure the services of experts and consultants in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> 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 <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> of title 5, United States Code.</text> </subsection></section><section id="H3400BB1888DC44398955BAD2CB16F700"><enum>208.</enum><header>Compensation and travel expenses</header> <subsection id="H7975DFDA4CB14A75A41437518E00ED9E"><enum>(a)</enum><header>Compensation of members</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> 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.</text> </subsection><subsection id="H985129B0E5AC4B62AB84D68EF7E6DD62"><enum>(b)</enum><header>Travel expenses</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> 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.</text> </subsection></section><section id="H30C93EAC77EF4FB69149158C2835F0F0"><enum>209.</enum><header>Meetings</header> <subsection id="HA22ECC0F82544C1589CEFD567FB1B522"><enum>(a)</enum><header>In general</header><text>The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Commission.</text> </subsection><subsection id="H9BDE397C9111441AB91ED37B1723C95D"><enum>(b)</enum><header>Public meetings and release of public versions of reports</header><text>The Commission shall ensure, to the maximum extent practicable, that—</text> <paragraph id="HBDAB1756041845C491971866825E1931"><enum>(1)</enum><text>all hearings of the Commission are available to the public, including by—</text> <subparagraph id="H4E127A4F08364338AFF18E361B973009"><enum>(A)</enum><text>providing live and recorded public access to hearings on the Internet; and</text> </subparagraph><subparagraph id="HEF3D3D44036D4274BF9B861F618F8807"><enum>(B)</enum><text>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</text> </subparagraph></paragraph><paragraph id="H0DF57894E9F841FBB4F322A1BD140033"><enum>(2)</enum><text>all reports, findings, and conclusions are made public.</text> </paragraph></subsection><subsection id="H29E978712B604D718176006CCEB4D5FB"><enum>(c)</enum><header>Public hearings</header><text>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.</text> </subsection></section><section id="H2D1C7C15FEDE4F34932DE1FB96CEED85"><enum>210.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated to the Commission such sums as are necessary to carry out this title, to remain available until expended.</text> </section><enum>III</enum><header>Establish a National Renewable Electricity Standard</header> <section id="H11640558ED9B4A8100FEB9F259AD067F"><enum>301.</enum><header>National renewable electricity standard</header> <subsection id="H303E5AE391E747D799B9B079169BEE88"><enum>(a)</enum><header>Standard</header><text display-inline="yes-display-inline">Title VI of the Public Utility Regulatory Policies Act of 1978 is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H2096B165B42349A0B70082D75C148753" style="OLC"> <section id="H7111950F86F0462692252659455481DC"><enum>610.</enum><header>Federal renewable portfolio standard</header> <subsection id="H2152E21D13734E6B98A64DE2BF460703"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="HF083F8AFBAE344F5B68C8F5DFE63EE49"><enum>(1)</enum><header>Biomass</header><text>The term <term>biomass</term> means—</text> <subparagraph id="H39E46300D51E429D9493009F5D24EBE4"><enum>(A)</enum><text>cellulosic (plant fiber) organic materials from a plant that is planted for the purpose of being used to produce energy;</text> </subparagraph><subparagraph id="H5089804687694AD88799B581FB740065"><enum>(B)</enum><text>nonhazardous, plant or algal matter waste materials that is segregated from other waste materials and is derived from—</text> <clause id="H28F215D5CCDB44AC89879D0006D841CA"><enum>(i)</enum><text>an agricultural crop, crop byproduct or residue resource;</text> </clause><clause id="H3B8CB53404C94680BCF684A2C74947D6"><enum>(ii)</enum><text>waste such as landscape or right-of-way trimmings, but not including—</text> <subclause id="H362CA0C673B04A52A4A63D0993D35B03"><enum>(I)</enum><text>municipal solid waste;</text> </subclause><subclause id="H0C9ABAF1702940F188D27389565F3910"><enum>(II)</enum><text>recyclable postconsumer waste paper;</text> </subclause><subclause id="H25117168D7BA4BD0BE9C6FED24916D8D"><enum>(III)</enum><text>painted, treated, or pressurized wood;</text> </subclause><subclause id="HF5CB0E317BC84888A9B6EE42EAEEE984"><enum>(IV)</enum><text>wood contaminated with plastic or metals; or</text> </subclause></clause><clause id="H25C48B2946E54AEAB9B8E8099BEF3096"><enum>(iii)</enum><text>gasified animal waste;</text> </clause><clause id="HBC5B9E0241CB4697A9FE3567EE8DF22C"><enum>(iv)</enum><text>landfill methane; and</text> </clause></subparagraph><subparagraph id="H99D8353DEC984AFD978DE3BAA1AED775"><enum>(C)</enum><text>with respect to material removed from National Forest System lands the term includes only organic material from—</text> <clause id="H9DCB9219560E49E29C40798DD556CE39"><enum>(i)</enum><text>precommercial thinnings;</text> </clause><clause id="HE53F2D21466D437AB165AB61EC023777"><enum>(ii)</enum><text>slash;</text> </clause><clause id="HF692B06B15414DB191000266F78B94CC"><enum>(iii)</enum><text>brush; and</text> </clause><clause id="HAD1B8ED6D97D44D4912556F0077550F8"><enum>(iv)</enum><text>mill residues.</text> </clause></subparagraph></paragraph><paragraph id="HFBFB6B1A6A894352891EAC5544A29EE6"><enum>(2)</enum><header>Eligible facility</header><text>The term <term>eligible facility</term> means—</text> <subparagraph id="H83812CBBC4CB4675964DCB1745E795C5"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="HEA2E3294DB4A4ADCB9C35DF3244816F7"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H5DC9F9A062E04D50A9DA04E250544680"><enum>(3)</enum><header>Existing facility offset</header><text>The term <term>existing facility offset</term> 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.</text> </paragraph><paragraph id="H2B49B65387DE4B8A00E97248B81FDD4D"><enum>(4)</enum><header>Incremental hydropower</header><text>The term <term>incremental hydropower</term> 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.</text> </paragraph><paragraph id="H6C6771CE15184F6AA0D50000676DC483"><enum>(5)</enum><header>Indian land</header><text>The term <term>Indian land</term> means—</text> <subparagraph id="HD93C0E4EC63F411EB9ED60C972E2CA4B"><enum>(A)</enum><text>any land within the limits of any Indian reservation, pueblo, or rancheria;</text> </subparagraph><subparagraph id="HF38E1A99973D4F19915B49CE00783CE6"><enum>(B)</enum><text>any land not within the limits of any Indian reservation, pueblo, or rancheria title to which was on the date of enactment of this paragraph either held by the United States for the benefit of any Indian tribe or individual or held by any Indian tribe or individual subject to restriction by the United States against alienation;</text> </subparagraph><subparagraph id="HB120874560084304B163D34BA2ECDFF0"><enum>(C)</enum><text>any dependent Indian community; and</text> </subparagraph><subparagraph id="HC716702EE64D42CE8B64DD700024E96F"><enum>(D)</enum><text>any land conveyed to any Alaska Native corporation under the Alaska Native Claims Settlement Act.</text> </subparagraph></paragraph><paragraph id="H0E1BA96BE2574F3B8828BE2ABEDB68"><enum>(6)</enum><header>Indian tribe</header><text>The term <term>Indian tribe</term> means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1601">43 U.S.C. 1601 et seq.</external-xref>), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.</text> </paragraph><paragraph id="HAE2EF4EFB08646F89562A76C8F000015"><enum>(7)</enum><header>Renewable energy</header><text>The term <term>renewable energy</term> means electric energy generated by a renewable energy resource.</text> </paragraph><paragraph id="HCE869DA73BD24946003B33AE6DF3FB11"><enum>(8)</enum><header>Renewable energy resource</header><text>The term <term>renewable energy resource</term> means solar (including solar water heating), wind, ocean, tidal, geothermal energy, biomass, landfill gas, or incremental hydropower.</text> </paragraph><paragraph id="HC4232086DF0343DB966194B9FCC7963E"><enum>(9)</enum><header>Repowering or cofiring increment</header><text>The term <term>repowering or cofiring increment</term> means—</text> <subparagraph id="H28A5E6907A634E3FA003803D6D3232B8"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H1DB758124ECB4207B9D18C1E009F3F00"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H3F468B3D0C66492293019B00147F4054"><enum>(10)</enum><header>Retail electric supplier</header><text>The term <term>retail electric supplier</term> 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.</text> </paragraph><paragraph id="H52515A54B3B1490C81FA40041A6FEA5"><enum>(11)</enum><header>Retail electric supplier’s base amount</header><text>The term <term>retail electric supplier’s base amount</term> means the total amount of electric energy sold by the retail electric supplier, expressed in terms of kilowatt hours, to electric customers for purposes other than resale during the most recent calendar year for which information is available, excluding electric energy generated by a hydroelectric facility.</text> </paragraph></subsection><subsection id="H3FC67699077F44E5A1048FA1F9343165"><enum>(b)</enum><header>Minimum renewable generation requirement</header><text>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).</text> </subsection><subsection id="H48BAC86AED974614A46CFA16AEE015E"><enum>(c)</enum><header>Required annual percentage</header><text>For calendar years 2010 through 2039, the required annual percentage of the retail electric supplier’s base amount that shall be generated from renewable energy resources, or otherwise credited towards such percentage requirement pursuant to subsection (d), shall be the percentage specified in the following table:<pagebreak></pagebreak></text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork"> <tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="231.75pt" min-data-value="55"></colspec><colspec align="justify" coldef="fig" colname="column2" colwidth="190.50pt" min-data-value="5"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>Required annual</bold></entry> </row> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>Calendar years:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>percentage:</bold></entry> </row> </thead> <tbody> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2010</entry><entry align="right" colname="column2" rowsep="0">1</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2011</entry><entry align="right" colname="column2" rowsep="0">2</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2012</entry><entry align="right" colname="column2" rowsep="0">4</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="column2" rowsep="0">6</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2014</entry><entry align="right" colname="column2" rowsep="0">8</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2015</entry><entry align="right" colname="column2" rowsep="0">10</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2016</entry><entry align="right" colname="column2" rowsep="0">12</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2017</entry><entry align="right" colname="column2" rowsep="0">14</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2018</entry><entry align="right" colname="column2" rowsep="0">16</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2019</entry><entry align="right" colname="column2" rowsep="0">18</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2020 and thereafter</entry><entry align="right" colname="column2" rowsep="0">20.</entry> </row> </tbody> </tgroup> </table> </subsection><subsection id="H10CC2F34D6EE483C90A3019586FB6902"><enum>(d)</enum><header>Renewable energy credits</header><paragraph commented="no" display-inline="yes-display-inline" id="H9DDEF06DB5B44DC3BEAE68A4A776EC5"><enum>(1)</enum><text>A retail electric supplier may satisfy the requirements of subsection (b) through the submission of renewable energy credits—</text> <subparagraph id="HACA53319BDA44E549800A06525D4B6E" indent="up1"><enum>(A)</enum><text>issued to the retail electric supplier under subsection (e);</text> </subparagraph><subparagraph id="HF1C32632356847B2B4CB109CCD1894" indent="up1"><enum>(B)</enum><text>obtained by purchase or exchange under subsection (f) or (h); or</text> </subparagraph><subparagraph id="HDA37C6DB6D4B4153A7FAF0C0CA810598" indent="up1"><enum>(C)</enum><text>borrowed under subsection (j).</text> </subparagraph></paragraph><paragraph id="H54A7C5C7E5614F56AF2E3B69AFB02B67" indent="up1"><enum>(2)</enum><text>A renewable energy credit may be counted toward compliance with subsection (b) only once.</text> </paragraph></subsection><subsection id="HAB93EFED187E4E11912F04BE9CC56C41"><enum>(e)</enum><header>Issuance of credits</header><paragraph commented="no" display-inline="yes-display-inline" id="H97486E7585D24E038DCB91EC624E67BB"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="H18E09FE2743E48D5A7C981A047C9EC8D" indent="up1"><enum>(2)</enum><text>An entity that generates electric energy through the use of a renewable energy resource may apply to the Secretary for the issuance of renewable energy credits. The applicant must demonstrate that the electric energy will be transmitted onto the grid or, in the case of a generation offset, that the electric energy offset would have otherwise been consumed on site. The application shall indicate—</text> <subparagraph id="HCE8134BC1F6D4318918529FB090066B0"><enum>(A)</enum><text>the type of renewable energy resource used to produce the electricity;</text> </subparagraph><subparagraph id="H9C075A8576C94B4A00002BACD1EFCA9"><enum>(B)</enum><text>the location where the electric energy was produced; and</text> </subparagraph><subparagraph id="H132EE4B1BD9A4F218F37E0E8ADA86EA"><enum>(C)</enum><text>any other information the Secretary determines appropriate.</text> </subparagraph></paragraph><paragraph id="H255EC9891D214D38A581488D66507900" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H38D79CB08A3C422B8356DD2B07A993F6"><enum>(A)</enum><text>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.</text> </subparagraph><subparagraph id="HF60A170A12B94DC69700BB64AB007032" indent="up1"><enum>(B)</enum><text>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.</text> </subparagraph><subparagraph id="HD65E888E0A694A04ACA76B178530F16B" indent="up1"><enum>(C)</enum><text>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.</text> </subparagraph><subparagraph id="HD7C5D4E1E2C9472CA9B8609E32C6C0B9" indent="up1"><enum>(D)</enum><text>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.</text> </subparagraph><subparagraph id="H75677CA78C1A4F28972B6065E094510" indent="up1"><enum>(E)</enum><text>In the case of a retail electric supplier that is subject to a State renewable standard program that—</text> <clause id="H2F2B661772F14215A4E510406584FC2"><enum>(i)</enum><text>requires the generation of electricity from renewable energy; or</text> </clause><clause id="H27B1B005DBB442B6889DE553C363C624"><enum>(ii)</enum><text>provides for alternative compliance payments in satisfaction of applicable State requirements under the program,</text> </clause></subparagraph></paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection><subsection id="H9C9AFE974CA6451193D8FFD7ECE6BCE8"><enum>(f)</enum><header>Eligibility</header><text>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.</text> </subsection><subsection id="H00C9250DFE484307ACC66C03EC1D8529"><enum>(g)</enum><header>Contracts under section 210</header><text>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.</text> </subsection><subsection id="H59C2B5017D5441EFBBC5E161706118C9"><enum>(h)</enum><header>Existing facility offsets</header><text>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.</text> </subsection><subsection id="H06AFA520BDE2449692C5B000E693416B"><enum>(i)</enum><header>Renewable energy credit trading</header><text>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.</text> </subsection><subsection id="HA91EDDD893964525B000994941939EA4"><enum>(j)</enum><header>Renewable energy credit borrowing</header><text>At any time before the end of calendar year 2012, a retail electric supplier that has reason to believe it will not have sufficient renewable energy credits to comply with subsection (b) may—</text> <paragraph id="H4A83B7C717F6452998D366812EB8BD38"><enum>(1)</enum><text>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</text> </paragraph><paragraph id="H90FFFD7B884542FB9E182000BB78003D"><enum>(2)</enum><text>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.</text> </paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection><subsection id="HA626E15BE65B4A9FB474C8C06B51613E"><enum>(k)</enum><header>Enforcement</header><text>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.</text> </subsection><subsection id="H4DB16D26F9944C45A69784805994A0F1"><enum>(l)</enum><header>Credit cost cap</header><text>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.</text> </subsection><subsection id="H37EA4BA9DA3B462D8CE3603B535700FA"><enum>(m)</enum><header>Information collection</header><text>The Secretary may collect the information necessary to verify and audit—</text> <paragraph id="HDC71C01FDE3B41C0A0AAE957E67B3573"><enum>(1)</enum><text>the annual electric energy generation and renewable energy generation of any entity applying for renewable energy credits under this section;</text> </paragraph><paragraph id="H9346E732E7BA47B7879FFC69F2E4268E"><enum>(2)</enum><text>the validity of renewable energy credits submitted by a retail electric supplier to the Secretary; and</text> </paragraph><paragraph id="HD0D9D6F06E2745E3A4CED9CE8CC35F"><enum>(3)</enum><text>the quantity of electricity sales of all retail electric suppliers.</text> </paragraph></subsection><subsection id="H6AD3DA3BD0E349B39D6959DA00DB53A5"><enum>(n)</enum><header>Environmental savings clause</header><text>Incremental hydropower shall be subject to all applicable environmental laws and licensing and regulatory requirements.</text> </subsection><subsection id="HE2935F59F80741F9009EDD85AA00E25"><enum>(o)</enum><header>Existing programs</header><paragraph commented="no" display-inline="yes-display-inline" id="HFB0CB71697994A8FBA00AD00C1C40017"><enum>(1)</enum><text>This section does not preclude a State from imposing additional renewable energy requirements in that State, including specifying eligible technologies under such State requirements.</text> </paragraph><paragraph id="H45D2DD5A2F5347C1B78082C480A6BC9B" indent="up1"><enum>(2)</enum><text>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.</text> </paragraph></subsection><subsection id="HE53C48A41397454FB83C36F393007170"><enum>(p)</enum><header>Recovery of costs</header><text>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 <term>incremental cost of renewable energy</term> means—</text> <paragraph id="HBEEB487BF2DF4C8EB0DAF54DA35F7ED7"><enum>(1)</enum><text>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</text> </paragraph><paragraph id="H533D20E734204678A227AEBE6CD8EE03"><enum>(2)</enum><text>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).</text> </paragraph><continuation-text continuation-text-level="subsection">For purposes of this subsection, the definitions in section 3 of this Act shall apply to the terms <term>electric utility</term>, <term>State regulated electric utility</term>, <term>State agency</term>, <term>Commission</term>, and <term>State regulatory authority</term>.</continuation-text></subsection><subsection id="H8AB88B86D6724C27BD4B307DD7705B7C"><enum>(q)</enum><header>Voluntary participation</header><text>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.</text> </subsection><subsection id="H5D6AA56E94344C4C989256F5A2C4B85D"><enum>(r)</enum><header>Program review</header><text>The Secretary shall enter into a contract with the National Academy of Sciences to conduct a comprehensive evaluation of all aspects of the Renewable Portfolio Standard program, within 8 years of enactment of this section. The study shall include an evaluation of—</text> <paragraph id="H0DD7070CE7C649E68375D8A749D67411"><enum>(1)</enum><text>the effectiveness of the program in increasing the market penetration and lower the cost of the eligible renewable technologies;</text> </paragraph><paragraph id="H22014E5ECB724D5EAF20A15CB912D34F"><enum>(2)</enum><text>the opportunities for any additional technologies and sources of renewable energy emerging since enactment of this section;</text> </paragraph><paragraph id="H2B2E79C97D144CF0BF5C91D40111EBF8"><enum>(3)</enum><text>the impact on the regional diversity and reliability of supply sources, including the power quality benefits of distributed generation;</text> </paragraph><paragraph id="H5DDABBD54D484E068B66C1347521A875"><enum>(4)</enum><text>the regional resource development relative to renewable potential and reasons for any under investment in renewable resources; and</text> </paragraph><paragraph id="H4F8990DAA0C945CCAB96EB8186834DD5"><enum>(5)</enum><text>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.</text> </paragraph><continuation-text continuation-text-level="subsection">The Secretary shall transmit the results of the evaluation and any recommendations for modifications and improvements to the program to Congress not later than January 1, 2016.</continuation-text></subsection><subsection id="H656EAA97682E4CE39354019DD9842FD3"><enum>(s)</enum><header>Program improvements</header><text>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.</text> </subsection><subsection id="HEFD55AB7EF0C47BBAE00E6A7218CE338"><enum>(t)</enum><header>State renewable energy account program</header><paragraph commented="no" display-inline="yes-display-inline" id="HB07FA619C66B4CE5A24C84BE3B135D98"><enum>(1)</enum><text>The Secretary shall establish, not later than December 31, 2009, a State renewable energy account program.</text> </paragraph><paragraph id="H9A464A0E2A094D8688ECD030453F01CD" indent="up1"><enum>(2)</enum><text>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.</text> </paragraph><paragraph id="HEA5EE5930F714B05A998A3B7246FD699" indent="up1"><enum>(3)</enum><text>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 <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6322">42 U.S.C. 6322</external-xref>) for the purposes of promoting renewable energy production and providing energy assistance and weatherization services to low-income consumers.</text> </paragraph><paragraph id="HE081B8BA553B49BAAD1687197106EEAC" indent="up1"><enum>(4)</enum><text>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.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HB60310DB431644F78065487D1BEFB22B"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for such title is amended by adding the following new item at the end:</text> <quoted-block display-inline="no-display-inline" id="H24C57F595AAC4180A5CB821B0000C33E" style="OLC"> <toc container-level="quoted-block-container" idref="H72FE9BE8A713458BB56E0064D01450C0" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry idref="H72FE9BE8A713458BB56E0064D01450C0" level="section">Sec. 610. Federal renewable portfolio standard.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HD117758D0F3D487F9EF73E80D976C8A4"><enum>(c)</enum><header>Sunset</header><text>Section 610 of such title and the item relating to such section 610 in the table of contents for such title are each repealed as of December 31, 2039.</text> </subsection></section><enum>IV</enum><header>APOLLO PROJECT FOR CONVERSION OF MOTOR VEHICLES TO ALTERNATIVE FUELS</header> <section id="HE33C743E87CC449F87AE9CE50DF0078"><enum>401.</enum><header>Sense of Senate on conversion of motor vehicles to alternative fuels and energy independence</header><text display-inline="no-display-inline">It is the sense of the Senate that—</text> <paragraph id="HD1294DA14DA249F3A6FE4016DBF31DDF"><enum>(1)</enum><text>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</text> </paragraph><paragraph id="H6581AF3272CD4ABFB92B9CEA3890E826"><enum>(2)</enum><text>not later than calendar year 2030, the United States should be energy independent.</text> </paragraph></section><section id="H8C244FFAA62249F891A2F3322997A891"><enum>402.</enum><header>Consumer tax credits for advanced vehicles</header> <subsection id="HFEE0918F6EF5418FA827255273759783"><enum>(a)</enum><header>Plug-In electric drive motor vehicle credit</header> <paragraph id="HDBD4E4C949BE47B8BDA08D133953714D"><enum>(1)</enum><header>In general</header><text>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:</text> <quoted-block display-inline="no-display-inline" id="H0F737BBC5CEB4A16A266AC216D2446A5" style="OLC"> <section id="H98D5ABE46D5F4C40B29F34A8935B42F1"><enum>30D.</enum><header>Plug-in electric drive motor vehicle credit</header> <subsection id="HD0B0D5D98D97449EB6D487FF8E974400"><enum>(a)</enum><header>Allowance of credit</header> <paragraph id="HACE5758A948041BDBB551100E503F253"><enum>(1)</enum><header>In general</header><text>There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable amount with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year.</text> </paragraph><paragraph id="HBFFDBA98B7A34413B1914980E6C5A9EC"><enum>(2)</enum><header>Applicable amount</header><text>For purposes of paragraph (1), the applicable amount is sum of—</text> <subparagraph id="H7058AFB956D64DA1B24883044E9EE405"><enum>(A)</enum><text>$2,500, plus</text> </subparagraph><subparagraph id="H5007775251084DECBBD1A9DD0002448"><enum>(B)</enum><text>$400 for each kilowatt hour of traction battery capacity in excess of 4 kilowatt hours.</text> </subparagraph></paragraph></subsection><subsection id="HC0583360F0434CC99F2564B382FBDDD4"><enum>(b)</enum><header>Limitation</header><text>The amount of the credit allowed under subsection (a) by reason of subsection (a)(2) shall not exceed $7,500.</text> </subsection><subsection id="HCB65DFDD66DB4A679EE068937E697557"><enum>(c)</enum><header>New qualified plug-In electric drive motor vehicle</header><text>For purposes of this section, the term <quote>new qualified plug-in electric drive motor vehicle</quote> means motor vehicle—</text> <paragraph id="HEE8328D5CFD349D39DF5FBA5311C081B"><enum>(1)</enum><text>which draws propulsion using a traction battery with at least 4 kilowatt hours of capacity,</text> </paragraph><paragraph id="HF0446BFC689446DF972C72A8C5DCDF6"><enum>(2)</enum><text>which uses an offboard source of energy to recharge such battery,</text> </paragraph><paragraph id="H3A2714CDB5714DD9BAE85CCAB9A0EE74"><enum>(3)</enum><text>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—</text> <subparagraph id="HAEF24AE6C81F44B0AC5284C338FCCCD0"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H899A404394C44E81859900895E350581"><enum>(B)</enum><text>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,</text> </subparagraph></paragraph><paragraph id="H232C111678424579998EAEC50024CBAD"><enum>(4)</enum><text>the original use of which commences with the taxpayer,</text> </paragraph><paragraph id="HF8BD51D1322744A0AAB6376B02BC0000"><enum>(5)</enum><text>which is acquired for use or lease by the taxpayer and not for resale, and</text> </paragraph><paragraph id="HFA04A713635C4705B0628014022631C7"><enum>(6)</enum><text>which is made by a manufacturer.</text> </paragraph></subsection><subsection id="HE5965E59446B43EBBD4677413627F53E"><enum>(d)</enum><header>Application with other credits</header> <paragraph id="H0A3549255CAB46BB869CA3AF9552576E"><enum>(1)</enum><header>Business credit treated as part of general business credit</header><text>So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).</text> </paragraph><paragraph id="H093F2D5DDEE3490380DF1493E9E7002E"><enum>(2)</enum><header>Personal credit</header><text>The credit allowed under subsection (a) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) of—</text> <subparagraph id="H0F14F7610F4E411D998C2E759FF409F3"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H98CD1E3AF4B14E39A9CAF48342636F52"><enum>(B)</enum><text>the tentative minimum tax for the taxable year.</text> </subparagraph></paragraph></subsection><subsection id="H2E22226979204ACFAFF35F12D117FA28"><enum>(e)</enum><header>Other definitions and special rules</header><text>For purposes of this section—</text> <paragraph id="H355E50EF51554310BAFE806E80BB7F6B"><enum>(1)</enum><header>Motor vehicle</header><text>The term <quote>motor vehicle</quote> has the meaning given such term by section 30(c)(2).</text> </paragraph><paragraph id="H76E220715B9E4499BD61C8AD4C18EDCB"><enum>(2)</enum><header>Other terms</header><text>The terms <quote>passenger automobile</quote>, <quote>light truck</quote>, and <quote>manufacturer</quote> 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.).</text> </paragraph><paragraph id="H220C423391654186A08DF7011519B3C6"><enum>(3)</enum><header>Traction battery capacity</header><text>Traction battery capacity shall be measured in kilowatt hours from a 100 percent state of charge to a zero percent state of charge.</text> </paragraph><paragraph id="HD19956EE31D3439580043D79A7A874CA"><enum>(4)</enum><header>Reduction in basis</header><text>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.</text> </paragraph><paragraph id="H23FA7D4C131D4ABD9FFEA044AA2C0000"><enum>(5)</enum><header>No double benefit</header><text>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.</text> </paragraph><paragraph id="HCC95057D7EBA420FB65909F087E8BEB8"><enum>(6)</enum><header>Property used by tax-exempt entity</header><text>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)).</text> </paragraph><paragraph id="H2A043FD5E09A4458BF03FD1C1D1C6CAA"><enum>(7)</enum><header>Property used outside united states, etc., not qualified</header><text>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.</text> </paragraph><paragraph id="H784CFA61203F44AC83FC0095C2CAD35B"><enum>(8)</enum><header>Recapture</header><text>The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit (including recapture in the case of a lease period of less than the economic life of a vehicle).</text> </paragraph><paragraph id="HED6E3CAACD1D4E70A18519056EF35D88"><enum>(9)</enum><header>Election to not take credit</header><text>No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects not to have this section apply to such vehicle.</text> </paragraph><paragraph id="H51032614CBD04DEFA45F08751F2BD200"><enum>(10)</enum><header>Interaction with air quality and motor vehicle safety standards</header><text>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—</text> <subparagraph id="HAFBD0469A40B40BFA9C367D1D1E22300"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H93A0C5B7E6814B86AFAB56001B80AEEC"><enum>(B)</enum><text>the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.</text> </subparagraph></paragraph></subsection><subsection id="HF7AE2F60095F4842A51456D05513864F"><enum>(f)</enum><header>Regulations</header> <paragraph id="H9AAB0197DDCF4129B6C0D2A1D807D7B"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the Secretary shall promulgate such regulations as necessary to carry out the provisions of this section.</text> </paragraph><paragraph id="H47E690765FA94EAC8B1D8F4B9CA9AD48"><enum>(2)</enum><header>Coordination in prescription of certain regulations</header><text>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.</text> </paragraph></subsection><subsection id="H7DF971BE66544929805000E7C1A032F8"><enum>(g)</enum><header>Termination</header><text>This section shall not apply to property purchased after December 31, 2012.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HFA8881632C244CA9A678201E3DCB861F"><enum>(2)</enum><header>Coordination with other motor vehicle credits</header> <subparagraph id="H01C77FD569AF4128A582D8FE45331694"><enum>(A)</enum><header>New qualified fuel cell motor vehicles</header><text>Paragraph (3) of section 30B(b) of such Code is amended by adding at the end the following new flush sentence: <quote>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)).</quote>.</text> </subparagraph><subparagraph id="H77E997A5CAFA4E3FA5E2DD5256580809"><enum>(B)</enum><header>New qualified hybrid motor vehicles</header><text>Paragraph (3) of section 30B(d) of such Code is amended by adding at the end the following new flush sentence:</text> <quoted-block display-inline="no-display-inline" id="H87E0ADE8D7E7450BA2D5EC1D26A4D6" style="OLC"> <quoted-block-continuation-text quoted-block-continuation-text-level="subsection">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)).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H4CD8519981984766921527C7E85F3C2D"><enum>(3)</enum><header>Conforming amendments</header> <subparagraph id="H252CE12C80BC4E4EBC3E3C1D8221CC59"><enum>(A)</enum><text>Section 38(b) of such Code is amended by striking <quote>plus</quote> at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="HB345639C05544814A4CE37334B154127" style="OLC"> <paragraph id="H3733A42CABBB473BAF67C8E2E9C528B8"><enum>(34)</enum><text>the portion of the new qualified plug-in electric drive motor vehicle credit to which section 30D(d)(1) applies.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HCD18D7C5220A4F06BB0075EBDA413D1F"><enum>(B)</enum><text>Section 55(c)(3) of such Code is amended by inserting <quote>30D(d)(2),</quote> after <quote>30C(d)(2),</quote>.</text> </subparagraph><subparagraph id="HE2875CFFC1A84FDFA4F69EE9CBF0BD49"><enum>(C)</enum><text>Section 1016(a) of such Code is amended by striking <quote>and</quote> at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H0EF6BA37B1DC41079C1000CBF2222D15" style="OLC"> <paragraph id="H7DF2F86120EC46D0AF6486AC6DCAA53C"><enum>(37)</enum><text>to the extent provided in section 30D(e)(4).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HB928C277F9BC4EA99C1E4984E5058C31"><enum>(D)</enum><text>Section 6501(m) of such Code is amended by inserting <quote>30D(e)(9)</quote> after <quote>30C(e)(5)</quote>.</text> </subparagraph><subparagraph id="H5CC6C37947DE473FA0836F5BF58E63A"><enum>(E)</enum><text>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:</text> <quoted-block display-inline="no-display-inline" id="H2103FD06B357486D84B0F45109389411" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 30D. Plug-in electric drive motor vehicle credit.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="H61DA7E5164394EB98410E1559520E2E8"><enum>(b)</enum><header>Conversion kits</header> <paragraph id="H50F60962301A4E5F89C9C9A0671116F0"><enum>(1)</enum><header>In general</header><text>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:</text> <quoted-block id="HC1D8C05C969043B49EB62BD68731276" style="OLC"> <subsection id="H27F0D103DABB4F02A14F8B167D8F9081"><enum>(i)</enum><header>Plug-In conversion credit</header> <paragraph id="H990C1D861CF84C9F00FCEC45414099F"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H7C8B6941A3444DBBA2F6041DB1518CFB"><enum>(2)</enum><header>Limitations</header><text>The amount of the credit allowed under this subsection shall not exceed $2,500 with respect to the conversion of any motor vehicle.</text> </paragraph><paragraph id="HC777E2C914414C76BB00149B633C67EF"><enum>(3)</enum><header>Definitions and special rules</header><text>For purposes of this subsection—</text> <subparagraph id="HCC74AB2F1EB841FEB2E7FF75D0A59CC7"><enum>(A)</enum><header>Qualified plug-in electric drive motor vehicle</header><text>The term <quote>qualified plug-in electric drive motor vehicle</quote> 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).</text> </subparagraph><subparagraph id="HD522735E737A45D4B1EB66E79DB86603"><enum>(B)</enum><header>Plug-in traction battery module</header><text>The term <quote>plug-in traction battery module</quote> means an electro-chemical energy storage device which—</text> <clause id="H5F360555CE6D49C4BF007F54AD4E1200"><enum>(i)</enum><text>has a traction battery capacity of not less than 2.5 kilowatt hours,</text> </clause><clause id="H07C390E9B084498F894416D8567BEF9C"><enum>(ii)</enum><text>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,</text> </clause><clause id="HC80D299E2AD2462800833D5131B203EE"><enum>(iii)</enum><text>consists of a standardized configuration and is mass produced,</text> </clause><clause id="H04522B6AD3144B49A777F6B67C093E7B"><enum>(iv)</enum><text>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</text> </clause><clause id="HAD21E9E56C2149A39E44F5ECADB7000"><enum>(v)</enum><text>is certified by a battery manufacturer as meeting the requirements of clauses (i) through (iv).</text> </clause></subparagraph><subparagraph id="H35DF7A461F55408EB5E0BCCAC2902C72"><enum>(C)</enum><header>Credit allowed to lessor of battery module</header><text>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.</text> </subparagraph><subparagraph id="H4C60AD46DD974AF7B0886E10DBFC07C2"><enum>(D)</enum><header>Credit allowed in addition to other credits</header><text>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.</text> </subparagraph></paragraph><paragraph id="HF52ECF7D9AE54757BF04C4D443732404"><enum>(4)</enum><header>Termination</header><text>This subsection shall not apply to conversions made after December 31, 2012.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HC0D9FA7F98B24A07BED4AC13FA35DD72"><enum>(2)</enum><header>Credit treated as part of alternative motor vehicle credit</header><text>Section 30B(a) of such Code is amended by striking <quote>and</quote> at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="HAE5492A1599B4035966022FA6C04A4ED" style="OLC"> <paragraph id="H8B920B571EB14FBF947696B92EFCA72E"><enum>(5)</enum><text>the plug-in conversion credit determined under subsection (i).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H7F4E792241934E158ECB7C5DC274063D"><enum>(3)</enum><header>No recapture for vehicles converted to qualified plug-in electric drive motor vehicles</header><text>Paragraph (8) of section 30B(h) of such Code is amended by adding at the end the following: <quote>, 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.</quote></text> </paragraph></subsection><subsection id="H446BF1E3AA6744E591792B41B26583F6"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after December 31, 2008, in taxable years beginning after such date.</text> </subsection></section><section id="H6A727ADEFACD4B11B53FFD5B93041B99"><enum>403.</enum><header>Research and development program for alternative fuel vehicle technologies</header> <subsection id="H03962907104B400DB0C31E134F321827"><enum>(a)</enum><header>Purposes</header><text>The purposes of this section are—</text> <paragraph id="H2CB09CDC50E0405B8132A311646F5400"><enum>(1)</enum><text>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;</text> </paragraph><paragraph id="H346D3422DEDE48DB8290FA746BD9EB2"><enum>(2)</enum><text>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;</text> </paragraph><paragraph id="H7EA60A2B23224267A4A1111E003347FF"><enum>(3)</enum><text>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—</text> <subparagraph id="H8E1C0F593F8D4E7D87426465D0002E07"><enum>(A)</enum><text>enhancing the energy security of the United States;</text> </subparagraph><subparagraph id="HED35429C157241CF83B590AE90B3003D"><enum>(B)</enum><text>reducing dependence on imported oil; and</text> </subparagraph><subparagraph id="HE5FA7CCB96A74055B6FA3EC589913646"><enum>(C)</enum><text>reducing emissions through the expansion of alternative fuel supported mobility;</text> </subparagraph></paragraph><paragraph id="H73075FD5D67A4EAE98554CA18B976474"><enum>(4)</enum><text>to accelerate the widespread commercialization of alternative fuel vehicle technology into all sizes and applications of vehicles, including commercialization of alternative fuel vehicles; and</text> </paragraph><paragraph id="HC56327B27116411595D340642E30EDCA"><enum>(5)</enum><text>to improve the energy efficiency of and reduce the petroleum use in surface transportation.</text> </paragraph></subsection><subsection id="HBE8525DD9C8C422E95A9E2DF77ED4BE4"><enum>(b)</enum><header>Program</header><text>The Secretary of Energy shall conduct a program of research, development, demonstration, and commercial application for alternative fuel transportation technology, including—</text> <paragraph id="HE9D257B872F54BA3B2A1F45773CAD9AB"><enum>(1)</enum><text>high capacity, high-efficiency storage devices;</text> </paragraph><paragraph id="HD9DF884232934E11BC588CDD8066FC1B"><enum>(2)</enum><text>high-efficiency on-board and off-board alternative fuel components;</text> </paragraph><paragraph id="HD4D8C134F59542619EABDA49D7B157B2"><enum>(3)</enum><text>high-powered alternative fuel systems for passenger and commercial vehicles and for nonroad equipment;</text> </paragraph><paragraph id="H5B605B694974478E862CF9A929CA33E7"><enum>(4)</enum><text>control system development and power train development and integration for alternative fuel vehicles, including—</text> <subparagraph id="H7D0CC7C4EB4B437190E7D49BD9A075A7"><enum>(A)</enum><text>development of efficient cooling systems;</text> </subparagraph><subparagraph id="H9B448400B3E9436EAC7283BCAF865369"><enum>(B)</enum><text>analysis and development of control systems that minimize the emissions profile when clean diesel engines are part of an alternative fuel system; and</text> </subparagraph><subparagraph id="H99D4594C916F4F7EB4FAC43339FEE99"><enum>(C)</enum><text>development of different control systems that optimize for different goals, including—</text> <clause id="HA4A5CA9F319343ECA1DF17F5F695BB3"><enum>(i)</enum><text>storage life;</text> </clause><clause id="HBA8C0256B6C34EE00038BC9F0B268FB"><enum>(ii)</enum><text>reduction of petroleum consumption; and</text> </clause><clause id="H781007E67BA24670AF5F54332F798F27"><enum>(iii)</enum><text>green house gas reduction;</text> </clause></subparagraph></paragraph><paragraph id="HAA400F3DF8894F6EB20395B003F835C"><enum>(5)</enum><text>nanomaterial technology applied to both alternative fuel systems;</text> </paragraph><paragraph id="H897DE9D6E6804EB3A8509CC608F05D36"><enum>(6)</enum><text>large-scale demonstrations, testing, and evaluation of alternative fuel vehicles in different applications with different storage and control systems, including—</text> <subparagraph id="H518F5C8C43BA4EE0AAC3FC2F4F14F68D"><enum>(A)</enum><text>military applications;</text> </subparagraph><subparagraph id="HC30663D0C78843ABA38B6C07EF3DD0E2"><enum>(B)</enum><text>mass market passenger and light-duty truck applications;</text> </subparagraph><subparagraph id="H8089695BB88A437C8F3F03853F41FB15"><enum>(C)</enum><text>private fleet applications; and</text> </subparagraph><subparagraph id="HA76038C50FE948828B3FD03CAD6824AA"><enum>(D)</enum><text>medium- and heavy-duty applications;</text> </subparagraph></paragraph><paragraph id="HDB810C5311AD4C2E9919922757C52A"><enum>(7)</enum><text>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—</text> <subparagraph id="H61DA24403C1E4D4EBB91CAA2C46266D"><enum>(A)</enum><text>the vehicle and fuel as a system, not just an engine; and</text> </subparagraph><subparagraph id="HCB3D6F2448A341559FEA9CB35C194128"><enum>(B)</enum><text>nightly off-board charging; and</text> </subparagraph></paragraph><paragraph id="H837FC0A458F24D2FACF000654CC87B64"><enum>(8)</enum><text>advancement of alternative fuel transportation technologies in mobile source applications by—</text> <subparagraph id="H6AF3C74F210A4C41B7B58FCC63C9C457"><enum>(A)</enum><text>improvement in alternative fuel technologies; and</text> </subparagraph><subparagraph id="H6E4B1F5E9F12410EA522FF2328270418"><enum>(B)</enum><text>working with industry and the Administrator of the Environmental Protection Agency to—</text> <clause id="HD84F4B9D8EBA47E7BD099DE531ABA4C5"><enum>(i)</enum><text>understand and inventory markets; and</text> </clause><clause id="H2A89744A51DE4E2DABE81FA0C84855C6"><enum>(ii)</enum><text>identify and implement methods of removing barriers for existing and emerging applications.</text> </clause></subparagraph></paragraph></subsection><subsection id="H6FB1B6901F6F4366949DE6B68206E944"><enum>(c)</enum><header>Funding</header> <paragraph id="HAA1CD69BEB9146BDBBAD7B2BED000020"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph id="H023811E84C3542C4B1005CA0ACCF7900"><enum>(A)</enum><text>on October 1, 2008, and each October 1 thereafter through October 1, 2012, $1,000,000,000; and</text> </subparagraph><subparagraph id="H1B55869C4BF44D3F966BFCDC69A641EF"><enum>(B)</enum><text>on October 1, 2013, and each October 1 thereafter through October 1, 2017, $500,000,000.</text> </subparagraph></paragraph><paragraph id="H6E37CAF6D0EB4150B3FC05E100CA8798"><enum>(2)</enum><header>Receipt and acceptance</header><text>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.</text> </paragraph></subsection></section><section id="HF2FE5099D69841BEB4DB17BB0000AF8F"><enum>404.</enum><header>Federal fleet requirements</header> <subsection id="H33193D8AA5DA41B29C459360AA6FC51"><enum>(a)</enum><header>Definition of advanced alternative fueled vehicle</header><text>Section 301 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13211">42 U.S.C. 13211</external-xref>) is amended by inserting after paragraph (14) the following:</text> <quoted-block id="HDFD80177EFBD44189F07E55F88D3A665" style="OLC"> <paragraph id="HC10C30899E0646889FEE67284F704077"><enum>(15)</enum><header>Advanced alternative fueled vehicle</header> <subparagraph id="H8B564FF756CA4F5FBD00DE35DA9B19E4"><enum>(A)</enum><header>In general</header><text>The term <quote>advanced alternative fueled vehicle</quote> means an alternative fueled vehicle that is powered primarily by a nonpetroleum-based fuel.</text> </subparagraph><subparagraph id="H005F1DC704F741459E66E6A722B5995C"><enum>(B)</enum><header>Exclusion</header><text>The term <quote>advanced alternative fueled vehicle</quote> does not include a flex fuel vehicle.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC86FE3A4C1BB43C6835E7994E002FE22"><enum>(b)</enum><header>Advanced alternative fuel vehicles</header><text>Section 303(b) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13212">42 U.S.C. 13212(b)</external-xref>) is amended—</text> <paragraph id="H0BB9373771D64E32952C4D9E4120CB86"><enum>(1)</enum><text>by inserting after paragraph (3) the following:</text> <quoted-block id="HFEB4417E293042FBA83B4B61823E005F" style="OLC"> <paragraph id="HC7C8FF661C9E4C24A5ACD905F4AE9BBA" indent="up1"><enum>(4)</enum><header>Advanced alternative fuel vehicles</header><text>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:</text> <subparagraph id="H6E5EB725BCE449B0BCD2A9DAE7F592D3"><enum>(A)</enum><text>10 percent for each of fiscal years 2013 and 2014.</text> </subparagraph><subparagraph id="H37B0A4D805064D2D9807DA84BBA86EB9"><enum>(B)</enum><text>20 percent for each of fiscal years 2015 and 2016.</text> </subparagraph><subparagraph id="H38CE7A993C234A28B6BC4DF33AFCCC6"><enum>(C)</enum><text>30 percent for each of fiscal years 2017 and 2018.</text> </subparagraph><subparagraph id="H7906F26D80E44617A8824478EC559DBF"><enum>(D)</enum><text>40 percent for each of fiscal years 2019 and 2020.</text> </subparagraph><subparagraph id="H1C1CA161E99645F89DF87016D341AB87"><enum>(E)</enum><text>50 percent for each of fiscal years 2021 and 2022.</text> </subparagraph><subparagraph id="H1FCFAE1043DC4C41815DE9F758146694"><enum>(F)</enum><text>60 percent for each of fiscal years 2023 and 2024.</text> </subparagraph><subparagraph id="H03CF334A31E649C098A55890A459E876"><enum>(G)</enum><text>70 percent for each of fiscal years 2025 and 2026.</text> </subparagraph><subparagraph id="HBAB91A4ED8CD4267B276DD9E30EEBB8F"><enum>(H)</enum><text>80 percent for each of fiscal years 2027 and 2028.</text> </subparagraph><subparagraph id="H226B59F84DD84EA4968B814264628E11"><enum>(I)</enum><text>90 percent for fiscal year 2029 and each fiscal year thereafter.</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="HA2122786E45048938F89310577A9C6ED"><enum>(2)</enum><text>in paragraph (2), by inserting <quote>or (4)</quote> after <quote>paragraph (1)</quote>.</text> </paragraph></subsection></section><enum>V</enum><header>ENHANCED CONSERVATION AND EFFICIENCY</header> <subtitle id="HECC52D0769DD45DF8C8CB036B87261F"><enum>A</enum><header>Enhancing Efficiency of Conventional Vehicles</header> <part id="H99341CD270BB40DA949CBE7D863426A"><enum>I</enum><header>FUEL ECONOMY STANDARDS</header> <section id="H22FCE632070C46F0B11036948CCE6674"><enum>501.</enum><header>Increase corporate fuel economy standards</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/32902">Section 32902</external-xref> of title 49, United States Code, is amended by striking <quote>for model year 2020 of at least 35 miles per gallon</quote> and inserting <quote>for model year 2015 of at least 35 miles per gallon and for model year 2030 of at least 50 miles per gallon</quote>.</text> </section><section id="H9A7588025207432DA3762E5DAB21AE50"><enum>502.</enum><header>More realistic determination of fuel efficiency standards</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/32902">Section 32902</external-xref> of title 49, United States Code, is amended by adding at the end the following:</text> <quoted-block id="H4C2AF96F79AF4E439F2300D2A500E863" style="OLC"> <subsection id="HE0E33D10463D48F9B6F6322CD5D1FAF6"><enum>(l)</enum><header>Calculation of maximum feasible fuel economy standards</header> <paragraph id="HFCD1AB0490654428AC357736BF8FBD00"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="HABF02F6D7BE0453DAE27F94573FA18CF"><enum>(2)</enum><header>Applicable high gasoline price projection defined</header><text>In this subsection the term <quote>applicable high gasoline price projection</quote> 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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HCD359643868F4B0C81CB00E3C862C7B1"><enum>503.</enum><header>Fuel efficiency standards revisions</header> <subsection id="H25DA7C7FA8A64A248133A5748639DD55"><enum>(a)</enum><header>Weight</header><text>Section 32901(a)(3) of title 49, United States Code, is amended by striking <quote>rated at—</quote> and all that follows through the period at the end and inserting <quote>rated at not more than 10,000 pounds gross vehicle weight.</quote>.</text> </subsection><subsection id="H3CF7332055924FF4B535B1D026D83B2"><enum>(b)</enum><header>Fuel economy information</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32908">Section 32908(a)</external-xref> of title 49, United States Code, is amended, by striking 8,500 and inserting <quote>10,000</quote>.</text> </subsection><subsection id="H682D5ECD0C7146B1B3EDF600CFC452CE"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to model year 2009 and each subsequent model year.</text> </subsection></section><section id="H6CD075297AE7495E9D3EA1DD499F39B2"><enum>504.</enum><header>Automobile safety</header><text display-inline="no-display-inline">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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/301">chapter 301</external-xref> of title 49, United States Code.</text> </section></part><part id="H2E87C7A69F8342C3A01C6B8E34A28382"><enum>II</enum><header>OTHER PROVISIONS</header> <section id="HAAF883BF261541B2B2B9F27C157D3097"><enum>511.</enum><header>Lightweight materials research and development</header> <subsection id="H13BD0C51E5114DFAB1B000109FCC8634"><enum>(a)</enum><header>In general</header><text>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—</text> <paragraph id="HB260483A2D7D45CBB21E9E04EE75C473"><enum>(1)</enum><text>the weight of vehicles to be reduced to improve fuel efficiency without compromising passenger safety; and</text> </paragraph><paragraph id="H7E093FD326E3482BAE59D7423F349409"><enum>(2)</enum><text>the cost of lightweight materials (such as 18 steel alloys and carbon fibers) required for the construction of lighter-weight vehicles to be reduced.</text> </paragraph></subsection><subsection id="H18AFF0D819A14BF7829FD99638E7721E"><enum>(b)</enum><header>Funding</header> <paragraph id="HBB3D8842C11D46CD85CDE62782E53572"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H5BD1551AE1104274AAF68B7BE1321963"><enum>(2)</enum><header>Receipt and acceptance</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection></section><section id="HC991CDFACA844C5CAA44B0AA941B2B55"><enum>512.</enum><header>Federal Government gasoline consumption</header> <subsection id="H5A9B8FF7A3FE4BC29318EFAAEA408679"><enum>(a)</enum><header>In general</header><text>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:</text> <quoted-block id="H3ACEEBCCB7C940A30087001000A0ADFD" style="OLC"> <paragraph id="H64DA73D24959429EA2B87E79677128C4"><enum>(5)</enum><header>Gasoline consumption</header><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H47EA72CFC63D4B09969C700138D5FE3B"><enum>(b)</enum><header>Additional gasoline reduction measures</header> <paragraph id="H52821685E19D4077BF8218485F2E27B2"><enum>(1)</enum><header>Study</header><text>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.</text> </paragraph><paragraph id="H52A89C1EF2D648958F00E913C04F9264"><enum>(2)</enum><header>Report</header><text>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.</text> </paragraph></subsection></section><section id="H0D707116CF2949FBA990C10062F302F9"><enum>513.</enum><header>Credit for fuel-efficient motor vehicles</header> <subsection id="H43957DDC057945178BF91819938E6CD2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986, as amended by this Act, is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="HCC7993358AF54432944981B0369E1B41" style="OLC"> <section id="H8AC45CBE546E4F51BBBEA4374BE255E"><enum>30E.</enum><header>Fuel-efficient motor vehicle credit</header> <subsection id="H0F2353243A1B41A0AF84084E58BE24A"><enum>(a)</enum><header>Allowance of credit</header> <paragraph id="H406DA98B89E74918A5990017C2A8CA91"><enum>(1)</enum><header>In general</header><text>There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the amount determined under paragraph (2) with respect to any new fuel-efficient motor vehicle placed in service by the taxpayer during the taxable year.</text> </paragraph><paragraph id="HF13C154B25A348BB00B5E3A0BA270031"><enum>(2)</enum><header>Credit amount</header><text>The amount determined under this paragraph shall be—</text> <subparagraph id="HB0C93BA9EC47414A81E9880445EAA539"><enum>(A)</enum><text>$500, if the new fuel-efficient motor vehicle achieves a city fuel economy which is 42 miles per gallon or less;</text> </subparagraph><subparagraph id="HF4FD9089CA1149309760637C24598D05"><enum>(B)</enum><text>$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;</text> </subparagraph><subparagraph id="H24A01487BF6849ECADE4772984E1B570"><enum>(C)</enum><text>$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;</text> </subparagraph><subparagraph id="H51AA831B8E9C429593E3845500001FF5"><enum>(D)</enum><text>$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</text> </subparagraph><subparagraph id="H766731F097204FFEA5D3C18BE2D19007"><enum>(E)</enum><text>$2,500, if the new fuel-efficient motor vehicle achieves a city fuel economy which is greater than 52.5 miles per gallon.</text> </subparagraph></paragraph></subsection><subsection id="HD9C47ABCD69E47BB95E700AC2D9CA981"><enum>(b)</enum><header>New fuel-efficient motor vehicle</header><text>For purposes of this section, the term <quote>new fuel-efficient motor vehicle</quote> means any motor vehicle—</text> <paragraph id="H5076866DDCA34FFB8D4B001BF09E71E7"><enum>(1)</enum><text>which has a gross vehicle weight rating of not more than 8,500 pounds,</text> </paragraph><paragraph id="H6347D03812ED4F3C959E9B9F51B62B6F"><enum>(2)</enum><text>which achieves a city fuel economy of at least 38.5 miles per gallon,</text> </paragraph><paragraph id="H60516249C1874DD18CFD8ED2401F0CF"><enum>(3)</enum><text>the original use of which commences with the taxpayer,</text> </paragraph><paragraph id="H8E584B82F95B4A02A6BE1B5912E780BF"><enum>(4)</enum><text>which is acquired by the taxpayer for use or lease, but not for resale, and</text> </paragraph><paragraph id="HF05C7D9CB61247EE9E867E529BB36B84"><enum>(5)</enum><text>which is made by a manufacturer.</text> </paragraph></subsection><subsection id="H48DB733E78FB4C188BA16101F77B6F2"><enum>(c)</enum><header>Other definitions and special rules</header><text>For purposes of this section—</text> <paragraph id="H2608098BF2894589BA60D81DE6498E40"><enum>(1)</enum><header>City fuel economy; manufacturer</header><text>The terms <quote>city fuel economy</quote> and <quote>manufacturer</quote> have the meanings given such terms under section 30B(h).</text> </paragraph><paragraph id="H2942FDD6FCB840CAB7ED8348FE8BBE8"><enum>(2)</enum><header>Basis reduction</header><text>The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit.</text> </paragraph><paragraph id="H0A8C812E32584EEF837813E79976CBAF"><enum>(3)</enum><header>Recapture; property used outside the united states; election not to take credit</header><text>For purposes of this section, rules similar to the rules of paragraphs (2), (3), and (4) of section 30(d) shall apply.</text> </paragraph><paragraph id="H3DA7F4FEAEEE42BC9C004B4981D5251F"><enum>(4)</enum><header>Denial of double benefit</header><text>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.</text> </paragraph></subsection><subsection id="H0890693D894D4C51BE4EB410A6F0D434"><enum>(d)</enum><header>Application with other credits</header> <paragraph id="HDA0E2C431B784510B147808515236358"><enum>(1)</enum><header>Business credit treated as part of general business credit</header><text>So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).</text> </paragraph><paragraph id="HEC0CBF27981B4375AF6B8E8671DD0683"><enum>(2)</enum><header>Personal credit</header><text>The credit allowed under subsection (a) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) of—</text> <subparagraph id="HCE043855CFA64F93B461FE8E41FED800"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H9C4E6B3FC4FA4BE0A6A5D61D9FE7FFD3"><enum>(B)</enum><text>the tentative minimum tax for the taxable year.</text> </subparagraph></paragraph></subsection><subsection id="H372447A4547749759D1CE8DBE900003D"><enum>(e)</enum><header>Termination</header><text>This section shall not apply to property placed in service after December 31, 2010.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H3956436204B748A7ABE446473100B965"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="HB7F4EE405E6B4EA499F401D72E59A1A2"><enum>(1)</enum><text>Section 38(b) of the Internal Revenue Code of 1986, as amended by this Act, is amended by striking <quote>plus</quote> at the end of paragraph (33), by striking the period at the end of paragraph (34) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H3122158ED83A4DBFAF9C54003C9359CD" style="OLC"> <paragraph id="HA6B0F8AA88114DF29DEF94E7FF88DAFB"><enum>(35)</enum><text>the portion of the new fuel-efficient motor vehicle credit to which section 30E(d)(1) applies.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H34C0D33C62BD4A2D9CBA16A8DDF8C664"><enum>(2)</enum><text>Section 1016(a) of such Code, as amended by this Act, is amended by striking <quote>and</quote> at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H9C3842BDCD9942D3A29B7CA4FA22FAD4" style="OLC"> <paragraph id="HAE7EB922C0D34D5F00E5976F08824E06"><enum>(38)</enum><text>to the extent provided in section 30E(c)(2).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HAD0B7B04972F4A94866F5995666E00B7"><enum>(3)</enum><text>Section 6501(m) of such Code, as amended by this Act, is amended by inserting <quote>30E(c)(3),</quote> after <quote>30D(e)(9),</quote>.</text> </paragraph></subsection><subsection id="H906A6A8EB26E4CE80015C56C63CE8716"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:</text> <quoted-block display-inline="no-display-inline" id="H831942C5FE24416DB99D0775B34D6775" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 30E. Fuel-efficient motor vehicle credit.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HCE00D64FF6614B0700776861F3E914D4"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><section id="H94EC62C8ED1D4A0AA47CA7C060B00AE"><enum>514.</enum><header>Exclusion from heavy truck tax for idling reduction units and advanced insulation</header> <subsection id="H795CF5BE2E29476DBA0700D1BD595F3E"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4053">Section 4053</external-xref> of the Internal Revenue Code of 1986 (relating to exemptions) is amended by adding at the end the following new paragraphs:</text> <quoted-block id="HEC6F88DBC7F244A19F0057166DAFA21B" style="OLC"> <paragraph id="H01E762D84CC04FD9B99703678E36341F"><enum>(9)</enum><header>Idling reduction device</header><text>Any device or system of devices which—</text> <subparagraph id="HD7C09E37A16D43459703CC0867A0D9D4"><enum>(A)</enum><text>is designed to provide to a vehicle those services (such as heat, air conditioning, or electricity) that would otherwise require the operation of the main drive engine while the vehicle is temporarily parked or remains stationary using one or more devices affixed to a tractor, and</text> </subparagraph><subparagraph id="H4602FEDF734B482CA87422239EDED00"><enum>(B)</enum><text>is determined by the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Energy and the Secretary of Transportation, to reduce idling of such vehicle at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary.</text> </subparagraph></paragraph><paragraph id="H9D3B34E305C04347AA22A6B26F5655CF"><enum>(10)</enum><header>Advanced insulation</header><text>Any insulation that has an R value of not less than R35 per inch.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H5B28F35B9A5B4232AA80AE69B76CDF59"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to sales or installations after the date of the enactment of this Act.</text> </subsection></section><section id="HAB3C3B7E9A644F999C0000D7B091BC37"><enum>515.</enum><header>Idling reduction tax credit</header> <subsection id="H81108355C86E4B6CA6F829C76735C276"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="HB92223B495B04CCEAF3581BA1044826E" style="OLC"> <section id="HE7EE230CACF1483FA4F5283BD601775"><enum>45Q.</enum><header>Idling reduction credit</header> <subsection id="H91365594389043989639631F80EFC8C1"><enum>(a)</enum><header>General rule</header><text>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.</text> </subsection><subsection id="H48BFEF70EBAA4473A98E4955586CFD96"><enum>(b)</enum><header>Limitation</header><text>The maximum amount allowed as a credit under subsection (a) shall not exceed $1,000 per device.</text> </subsection><subsection id="HA72254085C5D4EAAA7ACE9EA767CCFEB"><enum>(c)</enum><header>Definitions</header><text>For purposes of subsection (a)—</text> <paragraph id="HC801669407454F629656DF365B9E9D5B"><enum>(1)</enum><header>Qualifying idling reduction device</header><text>The term <quote>qualifying idling reduction device</quote> means any device or system of devices that—</text> <subparagraph id="HAE29ECDD202F4AC4A83F5E27413D44B8"><enum>(A)</enum><text>is installed on a heavy-duty diesel-powered on-highway vehicle;</text> </subparagraph><subparagraph id="HA54985C90C5F4FBD9FC9C530C436A434"><enum>(B)</enum><text>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;</text> </subparagraph><subparagraph id="HF8020FFD72754D6BB2BC596163B68799"><enum>(C)</enum><text>the original use of which commences with the taxpayer;</text> </subparagraph><subparagraph id="H3C89959AB5C3439EB6713F467E8D5493"><enum>(D)</enum><text>is acquired for use by the taxpayer and not for resale; and</text> </subparagraph><subparagraph id="H57AA9B955E4D4FB0907CCC06A51DB0F1"><enum>(E)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="HEB97D9C3457347CD97B519FBEE40F913"><enum>(2)</enum><header>Heavy-duty diesel-powered on-high way vehicle</header><text>The term <quote>heavy-duty diesel-powered on-highway vehicle</quote> 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.</text> </paragraph><paragraph id="H8EA1345DDBC0444E8B213ECA4069BC33"><enum>(3)</enum><header>Long-duration idling</header><text>The term <quote>long duration idling</quote> 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.</text> </paragraph></subsection><subsection id="H11B935A2CA534EC1945BDEF7A7B1A69F"><enum>(d)</enum><header>No double benefit</header><text>For purposes of this section—</text> <paragraph id="H87D3F1D2E9AB4964A016B7FBC507D6B4"><enum>(1)</enum><header>Reduction in basis</header><text>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.</text> </paragraph><paragraph id="H6C9E4B7C123F4DB9B8BBA7E1DAA14FE"><enum>(2)</enum><header>Other deductions and credits</header><text>No deduction or credit shall be allowed under any other provision of this chapter with respect to the amount of the credit determined under this section.</text> </paragraph></subsection><subsection id="H76D8E43186AB4AF79087B5CFD83BE5D4"><enum>(e)</enum><header>Election not To claim credit</header><text>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</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H31213C876BE546D9B2036211D102A768"><enum>(b)</enum><header>Credit To be part of general business credit</header><text>Section 38 of such Code (relating to general business credit), as amended by this Act, is amended by striking <quote>plus</quote> at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H5B76FC491A5F4268963042AE9ED0D9C0" style="OLC"> <paragraph id="HEA9AAD77E9BC4912AC20DE3DF206E81E"><enum>(36)</enum><text>the idling reduction tax credit determined under section 45Q(a).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H4F16CCB261C6410689A3003BD8B8352"><enum>(c)</enum><header>Conforming amendments</header> <paragraph id="H055D9897A5AA4DF19D2FFD27927CE5E2"><enum>(1)</enum><text>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:</text> <quoted-block display-inline="no-display-inline" id="HD5ABAB063CE042B88C8515DC97E0257" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 45Q. Idling reduction credit.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HB2C68F2C2C524891B7B9AAC028798C2C"><enum>(2)</enum><text>Section 1016(a) of such Code, as amended by this Act, is amended by striking <quote>and</quote> at the end of paragraph (37), by striking the period at the end of paragraph (38) and inserting <quote>, and</quote>, and by adding at the end the following:</text> <quoted-block id="H51984CBD899E4F17AF5944045BB4CCDD" style="OLC"> <paragraph id="H2FBAE2FBAB67439D8D1CB9F25389E4B9"><enum>(39)</enum><text>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).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H968DB3A510C64C06856251A17F71DDAD"><enum>(3)</enum><text>Section 6501(m) of such Code is amended by inserting <quote>45Q(e),</quote> after <quote>45C(d)(4),</quote>.</text> </paragraph></subsection><subsection id="H2AF75147A221431D97FCAE2923C0001"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2008.</text> </subsection></section><section id="H10464142E88240CE925CCF5C91F1B2E1"><enum>516.</enum><header>Determination of certification standards by Secretary of Energy for certifying idling reduction devices</header><text display-inline="no-display-inline">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 <external-xref legal-doc="usc" parsable-cite="usc/26/45Q">section 45Q</external-xref> 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.</text> </section><section id="H329F091126FA4E3F847E43C3D70127CE"><enum>517.</enum><header>Extension and modification of alternative motor vehicle credit</header> <subsection id="H445CABA9196B49D79854B28409C3B53"><enum>(a)</enum><header>Elimination of manufacturer limitation</header> <paragraph id="H0CBFFEC676574C75A4CE1980BC414EBF"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B</external-xref> of the Internal Revenue Code of 1986, as amended by this Act, is amended—</text> <subparagraph id="HD12A5FF4D9E94700A52FA5B4055E1DE3"><enum>(A)</enum><text>by striking subsection (f), and</text> </subparagraph><subparagraph id="H9330DD3A25D341EEA5FC6E470663ADB9"><enum>(B)</enum><text>by redesignating subsections (g) through (k) as subsections (f) through (j), respectively.</text> </subparagraph></paragraph><paragraph id="H0C54A9DDD3F245F3A766A4D4AFF0D87C"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="HC9C554DA55CE4B829325DC39B71C5600"><enum>(A)</enum><text>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 <quote>(determined without regard to subsection (g))</quote> and inserting <quote>determined without regard to subsection (f))</quote>.</text> </subparagraph><subparagraph id="HE11524A5C5EF44658918F62D6DBD51F"><enum>(B)</enum><text>Section 38(b)(25) of such Code is amended by striking <quote>section 30B(g)(1)</quote> and inserting <quote>section 30B(f)(1)</quote>.</text> </subparagraph><subparagraph id="H13518A84C3774E0383799CDCF08DBEFE"><enum>(C)</enum><text>Section 55(c)(3) of such Code is amended by striking <quote>section 30B(g)(2)</quote> and inserting <quote>section 30B(f)(2)</quote>.</text> </subparagraph><subparagraph id="H234DEAD4AA3E4421ABF9CF5286FB0300"><enum>(D)</enum><text>Section 1016(a)(36) of such Code is amended by striking <quote>section 30B(h)(4)</quote> and inserting <quote>section 30B(g)(4)</quote>.</text> </subparagraph><subparagraph id="H401A250B9A9640BE82492B6153BEFC79"><enum>(E)</enum><text>Section 6501(m) of such Code is amended by striking <quote>section 30B(h)(9)</quote> and inserting <quote>section 30B(g)(9)</quote>.</text> </subparagraph></paragraph></subsection><subsection id="H879CE449439C47D0885DC20081CAD8AB"><enum>(b)</enum><header>Extension</header><text>Subsection (j) of <external-xref legal-doc="usc" parsable-cite="usc/26/30B">section 30B</external-xref> of the Internal Revenue Code of 1986 (as redesignated by subsection (a)) is amended—</text> <paragraph id="H658EBCE4067542158927002149C2C0C8"><enum>(1)</enum><text>by striking <quote>December 31, 2010</quote> in paragraphs (2) and (4) and inserting <quote>December 31, 2014</quote>, and</text> </paragraph><paragraph id="H13E3C714DABB4D9F94DE3027141D2845"><enum>(2)</enum><text>by striking <quote>December 31, 2009</quote> in paragraph (3) and inserting <quote>December 31, 2012</quote>.</text> </paragraph></subsection><subsection id="H68ACB87058C84266B612A2FF5E80B663"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of enactment of this Act, in taxable years ending after such date.</text> </subsection></section></part></subtitle><subtitle id="H9E7DA832B5B748F6B9F6F0000000A0BA"><enum>B</enum><header>Alternative Fuels and Biofuels</header> <part id="H8EBA1E1D0CCA4C5FB9DF28F47FE00D"><enum>I</enum><header>General Provisions</header> <section id="H047E840FB1D34DFBB23E6DFA01BC07B6"><enum>521.</enum><header>Bioenergy research and development</header> <subsection id="HA4327238E3C0480D925D9140FBD27732"><enum>(a)</enum><header>In general</header><text>Section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231) is amended as follows:</text> <paragraph id="HF5BDC7F401EE45FBBF554337C1CB4ED8"><enum>(1)</enum><text>In subsection (b), by striking paragraphs (3) and (4) and inserting the following:</text> <quoted-block id="H933CACDE5E1843CA007EE585CB203947" style="OLC"> <paragraph id="H968AF412F1794782B1EC7EBA69BED08"><enum>(3)</enum><text>$3,352,000,000 for fiscal year 2009; and</text> </paragraph><paragraph id="HEC4AFFE1FEC543D8B62347D6AD43C390"><enum>(4)</enum><text>$3,463,000,000 for fiscal year 2010.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HE6C9B3A6C6C24603B52C1700CFFBF2D6"><enum>(2)</enum><text>In subsection (c), by striking paragraphs (3) and (4) and inserting the following:</text> <quoted-block id="HBC7C709AE8A149D7BEAB616B7EF84B60" style="OLC"> <paragraph id="H579CD238860A4901AAB8129129B1634"><enum>(3)</enum><text>$2,898,000,000 for fiscal year 2009, of which $150,000,000 shall be for section 932(d); and</text> </paragraph><paragraph id="HE040A8B5CDA043DB8C31D12CDD99B725"><enum>(4)</enum><text>$2,919,000,000 for fiscal year 2010, of which $150,000,000 shall be for section 932(d).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HC566BA149C274606A9C06053D2DBB7"><enum>(b)</enum><header>Pipeline infrastructure</header><text>Section 212 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7546">42 U.S.C. 7546</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H6224ED0692F54D11A1D39F46520E4C6" style="OLC"> <subsection id="H908CE2F3A921433F00326B5EA4444606"><enum>(f)</enum><header>Pipeline infrastructure</header> <paragraph id="HF7B136A437BE4B6082B5473F3D1C53F4"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="HCCCC2F5623394C35AE6891B9C20272B3"><enum>(2)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out this subsection for each of fiscal years 2009 through 2014.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H0B506D73908F4B6EA9F72527D324C8E"><enum>522.</enum><header>Alternative fueled automobile production requirement</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/32905">Section 32905</external-xref> of title 49, United States Code, as amended by section 203 of this Act, is further amended by adding at the end the following:</text> <quoted-block id="H392A94930C0D4C4C9FCC49BEB919B54C" style="OLC"> <subsection id="HF8D381177FB247C98403D8D99C2B0014"><enum>(h)</enum><header>Alternative fueled automobiles</header><text>Each manufacturer that manufactures automobiles for sale or use in the United States shall ensure that—</text> <paragraph id="H384D3957269649D1A27D1EA78BAFD5DA"><enum>(1)</enum><text>not less than 75 percent of such automobiles manufactured for each of model years 2015 through 2019 are alternative fueled automobiles; and</text> </paragraph><paragraph id="H0D293ADD36EB4B6EABE6AC236185CEC3"><enum>(2)</enum><text>100 percent of such automobiles manufactured for model year 2020 and each subsequent model year are alternative fueled automobiles.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H10D519F79DB14B92A69272231DCE83C3"><enum>523.</enum><header>Definition of renewable biomass</header><text display-inline="no-display-inline">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 (<external-xref legal-doc="public-law" parsable-cite="pl/110/140">Public Law 110–140</external-xref>) is amended by striking subparagraph (I) and inserting the following:</text> <quoted-block id="HCFF4106049B74CEE85269C2DEA4C2F55" style="OLC"> <subparagraph id="H2006C7FE8F254F398D26F3616B47C9F1"><enum>(I)</enum><header>Renewable biomass</header><text>The term <quote>renewable biomass</quote> means—</text> <clause id="H8AD13CC073194A66892B509170DA3F7"><enum>(i)</enum><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>)) that—</text> <subclause id="H3AE348694BF04F6291094CFD7F896EA7"><enum>(I)</enum><text>are byproducts of preventive treatments that are removed—</text> <item id="HA657F8EAD52849138862193BB72C00CB"><enum>(aa)</enum><text>to reduce hazardous fuels;</text> </item><item id="H920F956C1D174231A04309A000BABCA1"><enum>(bb)</enum><text>to reduce or contain disease or insect infestation; or</text> </item><item id="H2893992BF9F3454ABB74CB498F97D2F8"><enum>(cc)</enum><text>to restore ecosystem health;</text> </item></subclause><subclause id="HAF256648FD584C048931154024567700"><enum>(II)</enum><text>would not otherwise be used for higher-value products; and</text> </subclause><subclause id="H050186C6BDA64CA6B0D687D881EA754B"><enum>(III)</enum><text>are harvested in accordance with—</text> <item id="HED827ECB9CDF4C5BBC31C0635F9038B9"><enum>(aa)</enum><text>applicable law and land management plans; and</text> </item><item id="HA44A64AC910547ABA52873F8C00506E"><enum>(bb)</enum><text>the requirements for—</text> <subitem id="HE235ED81CB824F2D947B824996F45082"><enum>(AA)</enum><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/16/6512">16 U.S.C. 6512</external-xref>); and</text> </subitem><subitem id="H739757B42415469AB7AB4FA389BE4045"><enum>(BB)</enum><text>large-tree retention of subsection (f) of that section; or</text> </subitem></item></subclause></clause><clause id="HFC0DDBB7E9844D789B5823AE3522E30"><enum>(ii)</enum><text>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—</text> <subclause id="HB5E6A1041A914CB8A58C462D181DFB7E"><enum>(I)</enum><text>renewable plant material, including—</text> <item id="HB79C6ED19AA5442EB0E6A1F3C71DDC60"><enum>(aa)</enum><text>feed grains;</text> </item><item id="H9B712DFC3C94462FB10720173CA3D0CB"><enum>(bb)</enum><text>other agricultural commodities;</text> </item><item id="HE70A50BF0ACA467EB868B3C4F9BD5B85"><enum>(cc)</enum><text>other plants and trees; and</text> </item><item id="HA6A2AEBE615B4706B13C5088C054B1B4"><enum>(dd)</enum><text>algae; and</text> </item></subclause><subclause id="H724989394EF3489A835600D75F565532"><enum>(II)</enum><text>waste material, including—</text> <item id="H9820B439C7EF46C2A6F5174556F4D276"><enum>(aa)</enum><text>crop residue;</text> </item><item id="H28F0F53173564DD394CDEB5862ECFE2F"><enum>(bb)</enum><text>other vegetative waste material (including wood waste and wood residues);</text> </item><item id="H54DE54C66BDE42ABA6689D315E22957F"><enum>(cc)</enum><text>animal waste and by products (including fats, oils, greases, and manure); and</text> </item><item id="H983837F2509A4C18B6185923F4F500EF"><enum>(dd)</enum><text>food waste and yard waste.</text> </item></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H2B39021AC8DD47AD9005CA985503BF1B"><enum>524.</enum><header>Loan guarantees for renewable energy pipelines</header><text display-inline="no-display-inline">Subtitle C of title II of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17051">42 U.S.C. 17051 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H6FFC29A5FDC54D0EB5E0D6B8AB93B31C" style="OLC"> <section id="H13D9436C032C404FA0A740036320738E"><enum>249.</enum><header>Loan guarantees for renewable energy pipelines</header> <subsection id="H4F544C563B534C38A2928C5C8741C613"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HF760189742824E04977B1E4DBB393DFC"><enum>(1)</enum><header>Cost</header><text>The term <quote>cost</quote> has the meaning given the term <quote>cost of a loan guarantee</quote> in section 502(5)(C) of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a(5)(C)</external-xref>).</text> </paragraph><paragraph id="H929E9A01BC1B4BD4A36B36CB74864220"><enum>(2)</enum><header>Eligible project</header><text>The term eligible project means a project described in subsection (b)(1).</text> </paragraph><paragraph id="HE8C6F8E77E6F4A779C1D98987CC22869"><enum>(3)</enum><header>Guarantee</header> <subparagraph id="HDCC5A322F3DD42E7BBB8A6D0D783A0BA"><enum>(A)</enum><header>In general</header><text>The term <quote>guarantee</quote> has the meaning given the term <quote>loan guarantee</quote> in section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>).</text> </subparagraph><subparagraph id="H0D71F46B97FB433FB2091579DD841523"><enum>(B)</enum><header>Inclusion</header><text>The term <quote>guarantee</quote> includes a loan guarantee commitment (as defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).</text> </subparagraph></paragraph><paragraph id="H0FBFAB66BD8742239B3E08823BE92B9C"><enum>(4)</enum><header>Renewable energy pipeline</header><text>The term <quote>renewable energy pipeline</quote> means a common carrier pipeline for transporting renewable energy.</text> </paragraph></subsection><subsection id="HCE266F3EF465471C8C90EC005642C849"><enum>(b)</enum><header>Loan guarantees</header> <paragraph id="H6C053A01BDA74978B9E864351279AC05"><enum>(1)</enum><header>In general</header><text>The Secretary shall make guarantees under this section for projects that provide for—</text> <subparagraph id="H69607191FC744250BD5BA6F44E318B4C"><enum>(A)</enum><text>the construction of new renewable energy pipelines; or</text> </subparagraph><subparagraph id="HFE8889FC2262436E9EB373CF40DB3C81"><enum>(B)</enum><text>the modification of pipelines to transport renewable energy.</text> </subparagraph></paragraph><paragraph id="H2EB7AC350BBF4516AF1CDBBF68185FD"><enum>(2)</enum><header>Eligibility</header><text>In determining the eligibility of a project for a guarantee under this section, the Secretary shall consider—</text> <subparagraph id="HE3C5C3969B6D40878047EC81D1A7A174"><enum>(A)</enum><text>the volume of renewable energy to be moved by the renewable energy pipeline;</text> </subparagraph><subparagraph id="HF28DEBE23971406D9200D08D26CBA950"><enum>(B)</enum><text>the size of the markets to be served by the renewable energy pipeline;</text> </subparagraph><subparagraph id="H78E3C220E28346E68C0071B5D2607318"><enum>(C)</enum><text>the existence of sufficient storage to facilitate access to the markets served by the renewable energy pipeline;</text> </subparagraph><subparagraph id="H2DBED6F439DF44640027707CF108926D"><enum>(D)</enum><text>the proximity of the renewable energy pipeline to ethanol production facilities;</text> </subparagraph><subparagraph id="H982E8E48121C4C209CA751C4D8AC77F5"><enum>(E)</enum><text>the investment of the entity carrying out the proposed project in terminal infrastructure;</text> </subparagraph><subparagraph id="HFCF8BC05C32B4A1C90FAD2F13F75CE9F"><enum>(F)</enum><text>the experience of the entity carrying out the proposed project in working with renewable energy;</text> </subparagraph><subparagraph id="H86BDD4638105473686BD21EBC02EE74D"><enum>(G)</enum><text>the ability of the entity carrying out the proposed project to maintain the quality of the renewable energy through—</text> <clause id="H94EB0485E3D541C7AB6DF0EFB2AA9BBF"><enum>(i)</enum><text>the terminal system of the entity; and</text> </clause><clause id="HEEB42CC6F9D74708A94FF833319FEB29"><enum>(ii)</enum><text>the dedicated pipeline system;</text> </clause></subparagraph><subparagraph id="HFE5AD21E34B041B9B0FCD2F83B6E5CF0"><enum>(H)</enum><text>the ability of the entity carrying out the proposed project to complete the project in a timely manner; and</text> </subparagraph><subparagraph id="H34D467F7B9FD424FAF395CC021000487"><enum>(I)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H3B703DE5AF3B407B8554ACF0305759E8"><enum>(3)</enum><header>Amount</header><text>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.</text> </paragraph><paragraph id="H94F5A329501D4183A8643D9181B09E2F"><enum>(4)</enum><header>Terms and conditions</header><text>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.</text> </paragraph><paragraph id="HCDFFBB598D6D477EBA510892F4BD0117"><enum>(5)</enum><header>Existing funding authority</header><text>The Secretary shall make a guarantee under this section under an existing funding authority.</text> </paragraph><paragraph id="HA5ACE43E59E741A9B4D17345F1955DEF"><enum>(6)</enum><header>Final rule</header><text>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.</text> </paragraph></subsection><subsection id="H870AE8FB1CA64C2FAF1C01E699A1FC3F"><enum>(c)</enum><text>Funding.—</text> <paragraph id="HF4D2BA0986484D72970979B99919AA33"><enum>(1)</enum><header>In general</header><text>There are authorized to be appropriated such sums as are necessary to provide guarantees under this section.</text> </paragraph><paragraph id="HD4394A9C5E05465BBCC3AD00E6297982"><enum>(2)</enum><header>Use of other appropriated funds</header><text>To the extent that the amounts made available under title XVII of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16511">42 U.S.C. 16511 et seq.</external-xref>) have not been disbursed to programs under that title, the Secretary may use the amounts to carry out this section.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section></part><part id="HC7E6CF573C1F4FA78F5B3132BD559D6B"><enum>II</enum><header>TAX PROVISIONS</header> <section id="HD1928CDE967043E69739A07AF366C42"><enum>530.</enum><header>Reference</header><text display-inline="no-display-inline">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.</text> </section><section id="HFA06E3EC49CB40BA8626AECAB78D342"><enum>531.</enum><header>Expansion of special allowance to cellulosic biomass alcohol fuel plant property</header> <subsection id="H9D1EFFA293CA43038C06C5272FE1F8E0"><enum>(a)</enum><header>In general</header><text>Paragraph (3) of section 168(l) (relating to special allowance for cellulosic biomass ethanol plant property) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H7B27C7FBB9C7466CB495A0645E002EC" style="OLC"> <paragraph id="H4186DFF4F0C44D7DB3FB75DC1BF6BA7"><enum>(3)</enum><header>Cellulosic biomass alcohol</header><text display-inline="yes-display-inline">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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H0723DBAFDB94488081E0FCFFEA29BD2C"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H7304C8B138D74B3D9000C0CD13B01EE8"><enum>(1)</enum><text>Subsection (l) of section 168 is amended by striking <quote>cellulosic biomass ethanol</quote> each place it appears and inserting <quote>cellulosic biomass alcohol</quote>.</text> </paragraph><paragraph id="H679DEC89813A4CE99DF7826DE23FA13"><enum>(2)</enum><text>The heading of section 168(l) is amended by striking <quote><header-in-text level="section" style="OLC">Cellulosic Biomass Ethanol</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">Cellulosic biomass alcohol</header-in-text></quote>.</text> </paragraph><paragraph id="HC55AB9D1DDA84E788636D2F2936A018"><enum>(3)</enum><text>The heading of paragraph (2) of section 168(l) is amended by striking <quote><header-in-text level="paragraph" style="OLC">Cellulosic biomass ethanol</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Cellulosic biomass alcohol</header-in-text></quote> .</text> </paragraph></subsection><subsection id="H5C0C20FA35774D8DACA8E22449D54478"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text> </subsection></section><section id="H6EF6AFF758C54B6CAE1E3F1D36BB0250"><enum>532.</enum><header>Credit for producers of fossil free alcohol</header> <subsection id="HF99602FCCAF84BAB921ED48519CB35D0"><enum>(a)</enum><header>In general</header><text>Subsection (a) of section 40 (relating to alcohol used as fuel) is amended by striking <quote>plus</quote> at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H74A49144CD8B42CE81B7008FB9B53F08" style="OLC"> <paragraph id="H4D60C70CFE94433C8C8F3491D3A48529"><enum>(5)</enum><text>the small fossil free alcohol producer credit.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HF8C0FD15FCEA4E0187D42F3FCF00EEEE"><enum>(b)</enum><header>Small fossil free alcohol producer credit</header> <paragraph id="HDE81E1D0B76F4FF6B963CC7290B819F0"><enum>(1)</enum><header>In general</header><text>Subsection (b) of section 40 is amended by adding at the end the following new paragraph:</text> <quoted-block id="H8FB1981594C04E34BDFD1D6CB95FB194" style="OLC"> <paragraph id="H314884A7D0564E7E93030860E97018F5"><enum>(7)</enum><header>Small fossil free alcohol producer credit</header> <subparagraph id="HABF36AD343EF48ADB700E8BA961200FA"><enum>(A)</enum><header>In general</header><text>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.</text> </subparagraph><subparagraph id="H0E0DBAADC15043B1825CFD4658D386E"><enum>(B)</enum><header>Qualified fossil free alcohol production</header><text>For purposes of this section, the term <quote>qualified fossil free alcohol production</quote> 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—</text> <clause id="H6868A894B8F14ED3B84B9B00A61878A9"><enum>(i)</enum><text>is sold by the taxpayer to another person—</text> <subclause id="H50B47324D7D048B0B2DF98F22800E797"><enum>(I)</enum><text>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);</text> </subclause><subclause id="H97824928D8D34E19B17BD8D075C74480"><enum>(II)</enum><text>for use by such other person as a fuel in a trade or business; or</text> </subclause><subclause id="H3DC62746A93B493AADA3DDFB78EAECD"><enum>(III)</enum><text>who sells such alcohol at retail to another person and places such alcohol in the fuel tank of such other person; or</text> </subclause></clause><clause id="HB2D8E213264741799624407BF2AB44B"><enum>(ii)</enum><text>is used or sold by the taxpayer for any purpose described in clause (i).</text> </clause></subparagraph><subparagraph id="HFD1E370E637D45A7B8E4C6FEC871B1D7"><enum>(C)</enum><header>Additional distillation excluded</header><text>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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HB48FB793AF274F0B93DAD1459B9FAE8F"><enum>(c)</enum><header>Eligible small fossil free alcohol producer</header><text>Section 40 is amended by adding at the end the following new subsection:</text> <quoted-block id="H7AD427ADDCFE4BF292D504B300004981" style="OLC"> <clause id="HB194C3B1089B41BA905866F6A0C8136E" indent="up3"><enum>(i)</enum><header>Definitions and special rules for small fossil free alcohol producer</header><text>For purposes of this section—</text> </clause><paragraph id="H4B399FF9EC164C86814DCE4C313B0053"><enum>(1)</enum><header>In general</header><text>The term <quote>eligible small fossil free alcohol producer</quote> 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.</text> </paragraph><paragraph id="H367EF7C701D24D03B89EBEB7E018F974"><enum>(2)</enum><header>Fossil free alcohol production fa2cility</header><text>The term <quote>fossil free alcohol production facility</quote> 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)).</text> </paragraph><paragraph id="HE2A27F16A04B460F9B363CB653569123"><enum>(3)</enum><header>Aggregation rule</header><text>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.</text> </paragraph><paragraph id="HE89CBAF718BF47508D92BB5D9CCEA0F2"><enum>(4)</enum><header>Partnership, s corporations, and other pass-thru entities</header><text>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.</text> </paragraph><paragraph id="HA8E51ABF51FA4E938D9CB2B07CC511E"><enum>(5)</enum><header>Allocation</header><text>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.</text> </paragraph><paragraph id="H65E56F4E6C5C4A19891966D4BF3F0007"><enum>(6)</enum><header>Regulations</header><text>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.</text> </paragraph><paragraph id="H89AE8161A1464B5CB89F10949E4D5735"><enum>(7)</enum><header>Allocation of small fossil free alcohol producer credit to patrons of cooperative</header><text>Rules similar to the rules under subsection (g)(6) shall apply for purposes of this subsection.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H1DC348B850144217AB48EDF7041BEE03"><enum>(d)</enum><header>Alcohol not used as a fuel, etc</header> <paragraph id="H9FE5B022126D4C1DB50245548E7157DE"><enum>(1)</enum><header>In general</header><text>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:</text> <quoted-block id="H761B7A2D617147B7AB2DDC1120C0C0A5" style="OLC"> <subparagraph id="HECF5574DD17B43428536AA60B5E146A5"><enum>(E)</enum><header>Small fossil free alcohol producer credit</header><text>If—</text> <clause id="H930D5A3D74C64F2DAC3683BF55D8BCEF"><enum>(i)</enum><text>any credit is allowed under subsection (a)(5); and</text> </clause><clause id="HC20DD4CF82704C4900001E409E12C125"><enum>(ii)</enum><text>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.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HC760359E4FC84983A44B2CB83C24E12"><enum>(2)</enum><header>Conforming amendment</header><text>Subparagraph (F) of section 40(d)(3), as redesignated by paragraph (1), is amended by striking <quote>or (D)</quote> and inserting <quote>(D), or (E)</quote>.</text> </paragraph></subsection><subsection id="H8E337834DBE74A529C93B3A5698826DE"><enum>(e)</enum><header>Termination</header><text>Paragraph (1) of section 40(e) is amended—</text> <paragraph id="HF7B0B12FBD6841F4BEDC852FE94CFD3D"><enum>(1)</enum><text>in subparagraph (A), by inserting <quote>(December 31, 2012, in the case of the credit allowed by reason of subsection (a)(5))</quote> after <quote>December 31, 2010</quote>, and</text> </paragraph><paragraph id="HCABB1E822F0D4DC1A601ABB44E00A881"><enum>(2)</enum><text>in subparagraph (B), by inserting <quote>(January 1, 2013, in the case of the credit allowed by reason of subsection (a)(5))</quote> after <quote>January 1, 2011</quote>.</text> </paragraph></subsection><subsection id="H3F5BA2E4F6D34092A1FBEB80E2B6A627"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to fuel produced after the date of enactment of this Act.</text> </subsection></section><section id="HF0DF9E1C131444208447A4DEB44CDB13"><enum>533.</enum><header>Extension and modification of credit for biodiesel used as fuel</header> <subsection id="HE40722045914418195639F006DAC0081"><enum>(a)</enum><header>Extension</header> <paragraph id="HBBCDB7AAC093449089D78088CADA3E9B"><enum>(1)</enum><header>Income tax credits for biodiesel and renewable diesel and small agri-biodiesel producer credit</header><text>Section 40A(g) (relating to termination) is amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2012</quote>.</text> </paragraph><paragraph id="H16083FD4254F46BB8BB274DD4D00A08D"><enum>(2)</enum><header>Excise tax credit</header><text>Section 6426(c)(6) (relating to termination) is amended by striking <quote>2008</quote> and inserting <quote>2012</quote>.</text> </paragraph><paragraph id="H3B46C4A376A84BBAAF58B1C3F31984CC"><enum>(3)</enum><header>Fuels not used for taxable purposes</header><text>Section 6427(e)(5)(B) (relating to termination) is amended by striking <quote>2008</quote> and inserting <quote>2012</quote>.</text> </paragraph></subsection><subsection id="HD49C8143854F46CD00A2531214BADE1F"><enum>(b)</enum><header>Modification of credit for renewable diesel</header> <paragraph id="H01A37CD6FFDB4E39A300C0DB80728B23"><enum>(1)</enum><header>Eligibility of certain aviation fuel</header><text>Paragraph (3) of section 40A(f) (defining renewable diesel) is amended by adding at the end the following: <quote>The term <quote>renewable diesel</quote> 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.</quote>.</text> </paragraph><paragraph id="HE911910B80E3487AB2B380006142E0DB"><enum>(2)</enum><header>Co-processed renewable diesel</header><text>Section 40A(f) (relating to renewable diesel) is amended by adding at the end the following new paragraph:</text> <quoted-block id="H75425E64FF044723BD11E648398B9700" style="OLC"> <paragraph id="H6CEBE7DA95ED4139950104002BACFB75"><enum>(4)</enum><header>Special rule for co-processed renewable diesel</header><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HE78211FA4629466893FB548BB32C9C00"><enum>(c)</enum><header>Modification relating to definition of agri-biodiesel</header><text>Paragraph (2) of section 40A(d) (relating to agri-biodiesel) is amended by striking <quote>and mustard seeds</quote> and inserting <quote>mustard seeds, and camelina</quote>.</text> </subsection><subsection id="HDF0E0F1E9CD740C196B26122B04636B4"><enum>(d)</enum><header>Effective dates</header><text>The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this Act.</text> </subsection></section><section id="HF4F18BEF55DD4F2EAFE25195C008003E"><enum>534.</enum><header>Extension and modification of alternative fuel credit</header> <subsection id="H693309F9FE2B4DE886244028CB7186C1"><enum>(a)</enum><header>Extension</header> <paragraph id="HD4464E512C60402386E1BE1B2062508F"><enum>(1)</enum><header>Alternative fuel credit</header><text>Paragraph (4) of section 6426(d) (relating to alternative fuel credit) is amended by striking <quote>September 30, 2009</quote> and inserting <quote>December 31, 2012</quote>.</text> </paragraph><paragraph id="HD1BB55F1E6944F86A8943F440494E05F"><enum>(2)</enum><header>Alternative fuel mixture credit</header><text>Paragraph (3) of section 6426(e) (relating to alternative fuel mixture credit) is amended by striking <quote>September 30, 2009</quote> and inserting <quote>December 31, 2012</quote>.</text> </paragraph><paragraph id="H16450D18BDCB46658F3577BEF1503A8"><enum>(3)</enum><header>Payments</header><text>Subparagraph (C) of section 6427(e)(5) (relating to termination) is amended by striking <quote>September 30, 2009</quote> and inserting <quote>December 31, 2012</quote>.</text> </paragraph></subsection><subsection id="H3D2250A475EA429B9459730786AFDB5F"><enum>(b)</enum><header>Modifications</header> <paragraph id="H1CF0CD6CAFCE4CC0890626EE1707E06"><enum>(1)</enum><header>Alternative fuel to include compressed or liquified biomass gas</header><text>Paragraph (2) of section 6426(d) (relating to alternative fuel credit) is amended by striking <quote>and</quote> at the end of subparagraph (E), by redesignating subparagraph (F) as subparagraph (G), and by inserting after subparagraph (E) the following new subparagraph:</text> <quoted-block id="HC287D9E392A54C9BB251E88D69C97646" style="OLC"> <subparagraph id="HB842F9CADBAD43C699FCAEE544879857"><enum>(F)</enum><text>compressed or liquified biomass gas, and</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HF8B91C13567B4DC7ADEBBF27772EFBA"><enum>(2)</enum><header>Credit allowed for aviation use of fuel</header><text>Paragraph (1) of section 6426(d) is amended by inserting <quote>sold by the taxpayer for use as a fuel in aviation,</quote> after <quote>motorboat,</quote>.</text> </paragraph></subsection><subsection id="H211568A7ACF842CEBD223225BCF26B4D"><enum>(c)</enum><header>Carbon capture requirement for certain fuels</header> <paragraph id="H809166529AD34870A303D3DE52D947AA"><enum>(1)</enum><header>In general</header><text>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:</text> <quoted-block id="H49708488AE8C44BA907CFE9CC566E3DA" style="OLC"> <paragraph id="HC20462EBA3BC4FB5AFC0899CA5697CFB"><enum>(4)</enum><header>Carbon capture requirement</header><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H0CD453E20C49440288ACD915C59005D"><enum>(2)</enum><header>Conforming amendment</header><text>Subparagraph (E) of section 6426(d)(2) is amended by inserting <quote>which meets the requirements of paragraph (4) and which is</quote> after <quote>any liquid fuel</quote>.</text> </paragraph></subsection><subsection id="H666F7EBE310647928524E35ED9157C68"><enum>(d)</enum><header>Effective dates</header> <paragraph id="H8735AF973CB54685AABBF1CE74F64D0"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="HB22DB4706D3E434FAA6E4C7758F9C113"><enum>(2)</enum><header>Carbon capture requirements</header><text>The amendments made by subsection (c) shall apply to fuel sold or used after December 31, 2008.</text> </paragraph></subsection></section><section id="H7B73ED5A4C4E431287937D4CC813C800"><enum>535.</enum><header>Extension of suspension of taxable income limit on percentage depletion for oil and natural gas produced from marginal properties</header><text display-inline="no-display-inline">Subparagraph (H) of section 613A(c)(6) (relating to oil and gas produced from marginal properties) is amended by striking <quote>January 1, 2008</quote> and inserting <quote>January 1, 2013</quote>.</text> </section><section id="H2A1C38F2CD8348A887FDF736C4E76F8"><enum>536.</enum><header>Extension and modification of election to expense certain refineries</header> <subsection id="HC200D4E8A2AA411F8CAE00D5217D5613"><enum>(a)</enum><header>Extension</header><text>Paragraph (1) of section 179C(c) (relating to qualified refinery property) is amended—</text> <paragraph id="HCB63FC9C132641B6A8216782549FF480"><enum>(1)</enum><text>by striking <quote>January 1, 2012</quote> in subparagraph (B) and inserting <quote>January 1, 2013</quote>, and</text> </paragraph><paragraph id="H7D25A3E23AC84E25B0CFB200F5D5C08C"><enum>(2)</enum><text>by striking <quote>January 1, 2008</quote> each place it appears in subparagraph (F) and inserting <quote>January 1, 2010</quote>.</text> </paragraph></subsection><subsection id="H748758E426C9456BBB44D809BB14ED6"><enum>(b)</enum><header>Inclusion of fuel derived from shale and tar sands</header> <paragraph id="HF79A2BD1638543FA9E3F864BF95F00AB"><enum>(1)</enum><header>In general</header><text>Subsection (d) of section 179C is amended by inserting <quote>, or directly from shale or tar sands</quote> after <quote>(as defined in section 45K(c))</quote>.</text> </paragraph><paragraph id="H449E109E1B7B451A8149162FC8611092"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraph (2) of section 179C(e) is amended by inserting <quote>shale, tar sands, or</quote> before <quote>qualified fuels</quote>.</text> </paragraph></subsection><subsection id="HDCCEAC809A994C3483A0DBFD2B313CD8"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><section id="HADEAC6243E1845EF9126887E04A259A7"><enum>537.</enum><header>Hydrogen installation, infrastructure, and fuel costs</header> <subsection id="H458D22DB783F4469BFD0FA68CA92598"><enum>(a)</enum><header>In general</header><text>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:</text> <quoted-block display-inline="no-display-inline" id="HD8BE0F280422406CA02BC1D836EFA5D9" style="OLC"> <section id="HA48689D72574415D97EF580356BE783"><enum>30F.</enum><header>Hydrogen installation, infrastructure, and fuel costs</header> <subsection id="H783747B146C84A9F99CE6428378800CB"><enum>(a)</enum><header>Allowance of credit</header><text>There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—</text> <paragraph id="HEBCF3687DA224F478DAB6089A4C4CA07"><enum>(1)</enum><text>the hydrogen installation and infrastructure costs credit determined under subsection (b), and</text> </paragraph><paragraph id="H80DC2411A2BC453E8556E0FE55A4386C"><enum>(2)</enum><text>the hydrogen fuel costs credit determined under subsection (c).</text> </paragraph></subsection><subsection id="H98173E46FCB940EBB4FC36681F6C27C1"><enum>(b)</enum><header>Hydrogen installation and infrastructure costs credit</header> <paragraph id="H82878A54A58B444DBB7747FF6D4DB68"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph id="H08D1889D4BD24DBF90606BA86FB0068"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="HC7EA4CBBD1AD469BAE39941BFC02F629"><enum>(B)</enum><text>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.</text> </subparagraph><continuation-text continuation-text-level="paragraph">Nothing in this section shall permit the same cost to be taken into account more than once.</continuation-text></paragraph><paragraph id="HE6236747CCB3409D920056C6537377C"><enum>(2)</enum><header>Eligible hydrogen production and distribution facility</header><text>For purposes of this subsection, the term <quote>eligible hydrogen production and distribution facility</quote> means a hydrogen production and distribution facility which is placed in service after December 31, 2008.</text> </paragraph></subsection><subsection id="HCC3BE35092D44EA2BD2D00FDC789BE44"><enum>(c)</enum><header>Hydrogen fuel costs credit</header> <paragraph id="H2EC7496AA7474B5E98D3ABBBC6CC3212"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="HBCF87810A9CC44B9868CEED8321CF6BE"><enum>(2)</enum><header>Qualified hydrogen expenditure amount</header><text>For purposes of this subsection—</text> <subparagraph id="H525A107303D84AF1B2945C9606EBB5A6"><enum>(A)</enum><header>In general</header><text>The term <quote>qualified hydrogen expenditure amount</quote> 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—</text> <clause id="H5E14A704CA7F4D80AC1F645B00C840DD"><enum>(i)</enum><text>30 percent of the amount paid or incurred by the taxpayer during the taxable year for hydrogen which is consumed by such device, and</text> </clause><clause id="H5ACD7D382D8E4ED5A82FCCC82669003"><enum>(ii)</enum><text>$2,000.</text> </clause><continuation-text continuation-text-level="subparagraph">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.</continuation-text></subparagraph><subparagraph id="HD8B2694FED814014AB11C5BA1CCF3598"><enum>(B)</enum><header>Higher limitation for devices with more production capacity</header><text>In the case of any eligible hydrogen energy conversion device with a production capacity of—</text> <clause id="H9DAAA0DB16D8484EBCF738EB42630021"><enum>(i)</enum><text>more than 25 but less than 100 kilowatts of electricity per year, subparagraph (A) shall be applied by substituting <quote>$4,000</quote> for <quote>$2,000</quote> each place it appears; and</text> </clause><clause id="H0B99CBE2D16640A4BA414961FEA60187"><enum>(ii)</enum><text>not less than 100 kilowatts of electricity per year, subparagraph (A) shall be applied by substituting <quote>$6,000</quote> for <quote>$2,000</quote> each place it appears.</text> </clause></subparagraph></paragraph><paragraph id="H2E3F697C41CD44D6BE2FA9C1EF3D25"><enum>(3)</enum><header>Eligible hydrogen energy conversion devices</header><text>For purposes of this subsection—</text> <subparagraph id="H44076210833A42C5BB82A5EC2003AE81"><enum>(A)</enum><header>In general</header><text>The term <quote>eligible hydrogen energy conversion device</quote> means, with respect to any taxpayer, any hydrogen energy conversion device which—</text> <clause commented="no" id="HC76CFB13D2444B1DBAE4866F5EDD8994"><enum>(i)</enum><text>is placed in service after December 31, 2004; and</text> </clause><clause id="H4A07BE5F111C4AA6AB90250088B583B"><enum>(ii)</enum><text>is wholly owned by the taxpayer during the taxable year.</text> </clause><continuation-text continuation-text-level="subparagraph">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.</continuation-text></subparagraph><subparagraph id="H58294990631747039E4CC65DE8D9C029"><enum>(B)</enum><header>Hydrogen energy conversion device</header><text>The term <quote>hydrogen energy conversion device</quote> means—</text> <clause id="H59A86FF427874FB7AE6273634719D373"><enum>(i)</enum><text>any electrochemical device which converts hydrogen into electricity; and</text> </clause><clause id="H4953836A3FBB4658A61D3E5F23F5F381"><enum>(ii)</enum><text>any combustion engine which burns hydrogen as a fuel.</text> </clause></subparagraph></paragraph></subsection><subsection id="HBA24FC9D50F547BBB44D9BCF935D0482"><enum>(d)</enum><header>Reduction in basis</header><text>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.</text> </subsection><subsection id="H42002845CBAF4C1884D5506018DBD9F"><enum>(e)</enum><header>Application with other credits</header> <paragraph id="HE36ABBD170964949BD8BF761593F001F"><enum>(1)</enum><header>Business credit treated as part of general business credit</header><text>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)).</text> </paragraph><paragraph id="HCBA3D14865AF42E7A3918DE76F7154A8"><enum>(2)</enum><header>Personal credit</header><text>The credit allowed under subsection (a) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) of—</text> <subparagraph id="HC75EDB346AE4481B00A54354EAFCFE4"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H805BC98CF61B44A393C8414F2EC9EF00"><enum>(B)</enum><text>the tentative minimum tax for the taxable year.</text> </subparagraph></paragraph></subsection><subsection id="H2D9B52E974354EE286EB64DED7565106"><enum>(f)</enum><header>Denial of double benefit</header><text>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.</text> </subsection><subsection id="HA226FB54A1B346CE90A645157D59E45D"><enum>(g)</enum><header>Recapture</header><text>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.</text> </subsection><subsection id="H882141D539984C7DAD803F711B399385"><enum>(h)</enum><header>Election not To take credit</header><text>No credit shall be allowed under subsection (a) for any property if the taxpayer elects not to have this section apply to such property.</text> </subsection><subsection id="HAD426EFF566E42D4A2369C8E3FECF65C"><enum>(i)</enum><header>Regulations</header><text>The Secretary shall prescribe such regulations as necessary to carry out the provisions of this section.</text> </subsection><subsection id="H53BDB69378B84A6B9D9FDDC624D9D003"><enum>(j)</enum><header>Termination</header><text>This section shall not apply to any costs after December 31, 2012.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="H02E4655B503E4496960967EED87CB8A0"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H8160818F2D9C479D85350677E276E0D2"><enum>(1)</enum><text>Section 38(b), as amended by this Act, is amended by striking <quote>plus</quote> at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting <quote>plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H6E77967697FF4C0DAD74A6EAAC86C857" style="OLC"> <paragraph id="HD7450BEA7E6645FB889749AEF0983F7F"><enum>(37)</enum><text>the portion of the hydrogen installation, infrastructure, and fuel credit to which section 30F(e)(1) applies.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HB1AEF0C225E946EE8B61DD1666999E51"><enum>(2)</enum><text>Section 55(c)(3), as amended by this Act, is amended by inserting <quote>30F(e)(2),</quote> after <quote>30C(d)(2),</quote>.</text> </paragraph><paragraph id="H9F224825336D456A8E450071694E336C"><enum>(3)</enum><text>Section 1016(a), as amended by this Act, is amended by striking <quote>and</quote> at the end of paragraph (38), by striking the period at the end of paragraph (39) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H3EAA1CE88C3146F1B185DFBD14B4CE00" style="OLC"> <paragraph id="H088DBC1E311345F1B6F62C8E5F9D6E83"><enum>(40)</enum><text>to the extent provided in section 30F(d).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H937CC8AF96F5494D8F201B4117B236BE"><enum>(4)</enum><text>Section 6501(m), as amended by this Act, is amended by inserting <quote>30F(h),</quote> after <quote>30E(c)(3),</quote>.</text> </paragraph><paragraph id="H03EAEE790A45453CA68FF11B6066793B"><enum>(5)</enum><text>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:</text> <quoted-block display-inline="no-display-inline" id="H62ACD398745B4780BBDB09978D29E5E4" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 30F. Hydrogen installation, infrastructure, and fuel costs.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H1F0D421228E744ED893DF0BFA9F5FD9F"><enum>(c)</enum><header>Effective date</header><text>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.</text> </subsection></section><section id="H8A0644631293431BAC7DD43404C00F"><enum>538.</enum><header>Alternative fuel vehicle refueling property credit</header> <subsection id="H1C3B1CFE56214D1B93232799753F00C5"><enum>(a)</enum><header>Increase in credit amount</header><text>Section 30C is amended—</text> <paragraph id="HB6FEE53770264C7A9C43FED9C19C18D8"><enum>(1)</enum><text>by striking <quote>30 percent</quote> in subsection (a) and inserting <quote>50 percent</quote>, and</text> </paragraph><paragraph id="HBF8A0F8E48604A349988BE062000ADC5"><enum>(2)</enum><text>by striking <quote>$30,000</quote> in subsection (b)(1) and inserting <quote>$50,000</quote>.</text> </paragraph></subsection><subsection id="HF7F592214D6F41879CFB10FAB1F4E619"><enum>(b)</enum><header>Extension of credit</header><text>Paragraph (2) of section 30C(g) is amended by striking <quote>December 31, 2009</quote> and inserting <quote>December 31, 2012</quote>.</text> </subsection><subsection id="H48360B7506DD4C16A62645691DD0FBFC"><enum>(c)</enum><header>Inclusion of electricity as a clean-burning fuel</header><text>Section 30C(c)(2) is amended by adding at the end the following new subparagraph:</text> <quoted-block id="HBF2B195133D94FB495C0FA005758A800" style="OLC"> <subparagraph id="HBD73E9DB48A84BDFA11C6394C15813B7"><enum>(C)</enum><text>Electricity.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H57E858E56E744668868983B93E241C9D"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text> </subsection></section><section id="H524180E36A134CF38CD867C83E3D79E4"><enum>539.</enum><header>Certain income and gains relating to alcohol fuels and mixtures, biodiesel fuels and mixtures, and alternative fuels and mixtures treated as qualifying income for publicly traded partnerships</header> <subsection id="HB9B4E2522A1A4CBB89008EF910F400AD"><enum>(a)</enum><header>In general</header><text>Subparagraph (E) of section 7704(d)(1) is amended by inserting <quote>, 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)</quote> after <quote>timber)</quote>.</text> </subsection><subsection id="H92DA3333D72D48A1BF63EC89283CB315"><enum>(b)</enum><header>Effective date</header><text>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.</text> </subsection></section></part></subtitle><subtitle id="H6B13B557359E47189B7588D294A2A09F"><enum>C</enum><header>Other Provisions</header> <part id="HA648E9C70E63450AB55B798D5700F7B"><enum>I</enum><header>General Provisions</header> <section id="H7593C6060C6F4E198BDD00E09761F616"><enum>541.</enum><header>Energy efficiency and conservation block grants</header><text display-inline="no-display-inline">Section 544 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17154">42 U.S.C. 17154</external-xref>) is amended—</text> <paragraph id="H70A42E018C674B709306B377C7A070A"><enum>(1)</enum><text>in paragraph (13), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="H36F8728949AC4AA593675BD2DB562BA2"><enum>(2)</enum><text>by redesignating paragraph (14) as paragraph (15); and</text> </paragraph><paragraph id="HADF054F1F26A4E84B9DDA71300848124"><enum>(3)</enum><text>by inserting after paragraph (13) the following:</text> <quoted-block id="HFD21431A8E8B423F8400D94C53007E9F" style="OLC"> <paragraph id="HA212420A01DE4BA08F01DE71422EE5EB"><enum>(14)</enum><text>development, implementation, and installation of smart grid technologies and smart grid functions (as defined in section 1306(d)); and</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H1B6E87CEF4614BA79C4F71F623D112DD"><enum>542.</enum><header>Weatherization assistance program for low-income persons</header> <subsection id="H89CF97B4DFF94412B38FEC62FC851724"><enum>(a)</enum><header>In general</header><text>Section 422 of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6872">42 U.S.C. 6872</external-xref>) is amended—</text> <paragraph id="HE4409150AFD74A678F9D6D21128CEDF8"><enum>(1)</enum><text>by striking the section heading and all that follows through <quote>For the purpose</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HD000FA867F984047B8315B5FE2A49BCC" style="OLC"> <section id="H89709A738ED24013962C39224F59EE95"><enum>422</enum><header>Funding</header> <subsection id="H9DE5C2FFB69043BBBAF970E395E712F7"><enum>(a)</enum><header>Discretionary funding</header><text display-inline="yes-display-inline">For the purpose</text> </subsection></section><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H028AED3C87074494BF50DE94E6CF62CB"><enum>(1)</enum><text>by striking <quote>fiscal year 2008</quote> and inserting <quote>each of fiscal years 2008 through 2012</quote>; and</text> </paragraph><paragraph id="HE499B71B7BEA4217B1559D8BFB638FA2"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id3E4CB8A9BC2B43608E19602DD7E48685" style="OLC"> <subsection id="HEE180649B92D48C8AFBF4C7CD5C6E235"><enum>(b)</enum><header>Mandatory funding</header> <paragraph id="HD5FD28D3BD86450A94210662E21E55E0"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H89E4EDE865BF4DCDB9E1B9918B31A795"><enum>(2)</enum><header>Receipt and acceptance</header><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H2EBB81CCF771429EBF606093D43909A2"><enum>(b)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Section 415 of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6865">42 U.S.C. 6865</external-xref>) is amended by striking <quote>section 422(b)</quote> each place it appears in subsections (d) and (e)(1)(A) and inserting <quote>section 422</quote>.</text> </subsection></section><section id="H52A54EF2455C40A80062AEA364977F1B"><enum>543.</enum><header>Renewable energy workforce</header><text display-inline="no-display-inline">Section 1101 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16411">42 U.S.C. 16411</external-xref>) is amended—</text> <paragraph id="H803841EEF7CD46DA896FB507C5F7A9F1"><enum>(1)</enum><text>in subsection (b)(1)—</text> <subparagraph id="H3EE03410D40E4552B1DEAE5D6FB6B165"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph id="H2E55CB23089842889E1698004FB9D151"><enum>(B)</enum><text>in subparagraph (B), by striking the period and inserting <quote>; and</quote>; and</text> </subparagraph><subparagraph id="HA1E155921D9242CDA1B1DBA52DCBDB4"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block id="H4D541ADDCCEC40128D00FC3000006093" style="OLC"> <subparagraph id="H0B84F66F5849458787C5F83F42041EB"><enum>(D)</enum><text>renewable energy product and service industries.</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H8CA82A4B7F694BFEBFB19EB164EDFA1E"><enum>(2)</enum><text>by redesignating subsection (d) as subsection (e); and</text> </paragraph><paragraph id="HBEC2D1B23A3C4D3789E66814AD8C5156"><enum>(3)</enum><text>by inserting after subsection (c) the following:</text> <quoted-block id="HCBFBAC1BEFAD4F159D74BD12C7715834" style="OLC"> <subsection id="HA53EA442EFD6427FB150FC8096C50979"><enum>(d)</enum><header>Workforce training</header> <paragraph id="H70D5DAB294FA41DDAE5E5869B805438F"><enum>(1)</enum><header>In general</header><text>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).</text> </paragraph><paragraph id="H5999D8C259BB46BEB417B303D1729B49"><enum>(2)</enum><header>Consultation</header><text>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.</text> </paragraph><paragraph id="H59C5272F05F84F7688A7AC005DD9E9B9"><enum>(3)</enum><header>Authorization of appropriations</header><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section></part><part id="H79EB7691E82C4A308D8635BE231E3CD1"><enum>II</enum><header>Tax Provisions</header> <section id="HACFB98C4AD9C480FA09E045328C86C31"><enum>550.</enum><header>Reference</header><text display-inline="no-display-inline">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.</text> </section><subpart id="H71E5411899904657BDCC2B2E5147577D"><enum>A</enum><header>Renewable energy incentives</header> <section id="HDAD544A7441F4BF29507B1FE88763CF2"><enum>551.</enum><header>Renewable energy credit</header> <subsection id="HEA5B39A1475D4BB09577F91C885684F4"><enum>(a)</enum><header>Extension of credit</header> <paragraph id="HB8FC7EBBBEB34D269BCC928B290292DA"><enum>(1)</enum><header>4-year extension for wind facilities</header><text>Paragraph (1) of section 45(d) is amended by striking <quote>January 1, 2009</quote> and inserting <quote>January 1, 2013</quote>.</text> </paragraph><paragraph id="H8783D22BFA834172A47CD06F019D9224"><enum>(2)</enum><header>4-year extension for certain other facilities</header><text>Each of the following provisions of section 45(d) is amended by striking <quote>January 1, 2009</quote> and inserting <quote>January 1, 2013</quote>:</text> <subparagraph id="H6C8A90E37C7E420E91E48381E4B99914"><enum>(A)</enum><text>Clauses (i) and (ii) of paragraph (2)(A).</text> </subparagraph><subparagraph id="H2EDF8B74284E4359A697A56100307DA1"><enum>(B)</enum><text>Clauses (i)(I) and (ii) of paragraph (3)(A).</text> </subparagraph><subparagraph id="H7E3F436AB5E64C09A6CFEE98D5C47590"><enum>(C)</enum><text>Paragraph (4).</text> </subparagraph><subparagraph id="H59F302F68CCA42E494C54F54265000E5"><enum>(D)</enum><text>Paragraph (5).</text> </subparagraph><subparagraph id="HFAFC8EAEEB1444FB924DC2EFC9F19700"><enum>(E)</enum><text>Paragraph (6).</text> </subparagraph><subparagraph id="H31A2B04F83D64247894B145974D17E6E"><enum>(F)</enum><text>Paragraph (7).</text> </subparagraph><subparagraph id="H743FE0E14A694110BE9187B646005665"><enum>(G)</enum><text>Subparagraphs (A) and (B) of paragraph (9).</text> </subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HB0DDA6391DDC4390B9EC7339255CC3BF"><enum>(b)</enum><header>Modification of Credit Phaseout</header> <paragraph id="HFB669F41F6F148D0A46B4FA444414B24"><enum>(1)</enum><header>Repeal of phaseout</header><text>Subsection (b) of section 45 is amended—</text> <subparagraph id="H1041B3F7E65F467087CA62B5CA2B7000"><enum>(A)</enum><text>by striking paragraph (1), and</text> </subparagraph><subparagraph id="H997D052A60D04C389000B486B6C88645"><enum>(B)</enum><text>by striking <quote>the 8 cent amount in paragraph (1),</quote> in paragraph (2) thereof.</text> </subparagraph></paragraph><paragraph id="H8FCAAF69BD744D2BB8537B2C066D8281"><enum>(2)</enum><header>Limitation based on investment in facility</header><text>Subsection (b) of section 45 is amended by inserting before paragraph (2) the following new paragraph:</text> <quoted-block id="HE4353F3167904B17A6F8E5FBC638C92" style="OLC"> <paragraph id="HCC134C6E033B460EB2A6ACE0553D1253"><enum>(1)</enum><header>Limitation based on investment in facility</header> <subparagraph id="H1C0D75E7DAFE4F78845356C290E4E000"><enum>(A)</enum><header>In general</header><text>In the case of any qualified facility originally placed in service after December 31, 2009, the amount of the credit determined under subsection (a) for any taxable year with respect to electricity produced at such facility shall not exceed the product of—</text> <clause id="H6750CB8224594D1C8B83B72432DFD656"><enum>(i)</enum><text>the applicable percentage with respect to such facility, multiplied by</text> </clause><clause id="H00AE18D699AF4B19A2004333F85F00FF"><enum>(ii)</enum><text>the eligible basis of such facility.</text> </clause></subparagraph><subparagraph id="H01BC39D75C4045C6B1D4922D7D3DA2CA"><enum>(B)</enum><header>Carryforward of unused limitation and excess credit</header> <clause id="H48197344188A4A86985155756985DF7"><enum>(i)</enum><header>Unused limitation</header><text>If the limitation imposed under subparagraph (A) with respect to any facility for any taxable year exceeds the prelimitation credit for such facility for such taxable year, the limitation imposed under subparagraph (A) with respect to such facility for the succeeding taxable year shall be increased by the amount of such excess.</text> </clause><clause id="HC47B546B9D6F44BFA9EBB64DCCABD39"><enum>(ii)</enum><header>Excess credit</header><text>If the prelimitation credit with respect to any facility for any taxable year exceeds the limitation imposed under subparagraph (A) with respect to such facility for such taxable year, the credit determined under subsection (a) with respect to such facility for the succeeding taxable year (determined before the application of subparagraph (A) for such succeeding taxable year) shall be increased by the amount of such excess. With respect to any facility, no amount may be carried forward under this clause to any taxable year beginning after the 10-year period described in subsection (a)(2)(A)(ii) with respect to such facility.</text> </clause><clause id="H67219174260D46ABBC00A47D00FEB4BC"><enum>(iii)</enum><header>Prelimitation credit</header><text>The term <quote>prelimitation credit</quote> with respect to any facility for a taxable year means the credit determined under subsection (a) with respect to such facility for such taxable year, determined without regard to subparagraph (A) and after taking into account any increase for such taxable year under clause (ii).</text> </clause></subparagraph><subparagraph id="HD3043714E4AD41D18183C1CE924FDC00"><enum>(C)</enum><header>Applicable percentage</header><text>For purposes of this paragraph—</text> <clause id="HD155C565BF324F6FA893D5174EB2BC2"><enum>(i)</enum><header>In general</header><text>The term <quote>applicable percentage</quote> means, with respect to any facility, the appropriate percentage prescribed by the Secretary for the month in which such facility is originally placed in service.</text> </clause><clause id="HFC381372F91A468883B5281975008D99"><enum>(ii)</enum><header>Method of prescribing applicable percentages</header><text>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.</text> </clause><clause id="H6D5766D493884D24977DCEB945C3BE19"><enum>(iii)</enum><header>Method of discounting</header><text>The present value under clause (ii) shall be determined—</text> <subclause id="HDEB138386F7C45BFB6781BA7D8EE76ED"><enum>(I)</enum><text>as of the last day of the 1st year of the 10-year period referred to in clause (ii),</text> </subclause><subclause id="HB8C1563DAC2044CEBC10C57395457307"><enum>(II)</enum><text>by using a discount rate equal to the greater of 110 percent of the Federal long-term rate as in effect under section 1274(d) for the month preceding the month for which the applicable percentage is being prescribed, or 4.5 percent, and</text> </subclause><subclause id="HC7F570A557A94396B86CC03D00924234"><enum>(III)</enum><text>by taking into account the limitation under subparagraph (A) for any year on the last day of such year.</text> </subclause></clause></subparagraph><subparagraph id="HA3A9D088EDC1482A89B35058EDB83874"><enum>(D)</enum><header>Eligible basis</header><text>For purposes of this paragraph—</text> <clause id="H2A5F8BE1FD8A4B85A3B800003D2D7C83"><enum>(i)</enum><header>In general</header><text>The term <quote>eligible basis</quote> means, with respect to any facility, the sum of—</text> <subclause id="HE2144EDD46FA4B44A3E10612F0F8FD15"><enum>(I)</enum><text>the basis of such facility determined as of the time that such facility is originally placed in service, and</text> </subclause><subclause id="HE827ADB2AC84494195001826B6E5CB9"><enum>(II)</enum><text>the portion of the basis of any shared qualified property which is properly allocable to such facility under clause (ii).</text> </subclause></clause><clause id="H9062868AD70C482084D57C5B51009399"><enum>(ii)</enum><header>Rules for allocation</header><text>For purposes of subclause (II) of clause (i), the basis of shared qualified property shall be allocated among all qualified facilities which are projected to be placed in service and which require utilization of such property in proportion to projected generation from such facilities.</text> </clause><clause id="HFEBCB987BABE4A9D87BC0069BD00F2E"><enum>(iii)</enum><header>Shared qualified property</header><text>For purposes of this paragraph, the term <quote>shared qualified property</quote> means, with respect to any facility, any property described in section 168(e)(3)(B)(vi)—</text> <subclause id="H4C607E2ED5D4476085982B3B80F404B9"><enum>(I)</enum><text>which a qualified facility will require for utilization of such facility, and</text> </subclause><subclause id="H93D3C55437CE489ABFC6002D53C07105"><enum>(II)</enum><text>which is not a qualified facility.</text> </subclause></clause><clause id="H17EA6E4D99174885AC6CC36F1164B614"><enum>(iv)</enum><header>Special rule relating to geothermal facilities</header><text>In the case of any qualified facility using geothermal energy to produce electricity, the basis of such facility for purposes of this paragraph shall be determined as though intangible drilling and development costs described in section 263(c) were capitalized rather than expensed.</text> </clause></subparagraph><subparagraph id="H4D0B9A3DFEAC410C9575AF00DFA703A9"><enum>(E)</enum><header>Special rule for first and last year of credit period</header><text>In the case of any taxable year any portion of which is not within the 10-year period described in subsection (a)(2)(A)(ii) with respect to any facility, the amount of the limitation under subparagraph (A) with respect to such facility shall be reduced by an amount which bears the same ratio to the amount of such limitation (determined without regard to this subparagraph) as such portion of the taxable year which is not within such period bears to the entire taxable year.</text> </subparagraph><subparagraph id="H3DD305A7EC6B4680AD4833A33CAD00D2"><enum>(F)</enum><header>Election to treat all facilities placed in service in a year as 1 facility</header><text>At the election of the taxpayer, all qualified facilities which are part of the same project and which are 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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H0C8164EE638C4C5C945C4D5D8CE4F22D"><enum>(c)</enum><header>Trash facility clarification</header><text>Paragraph (7) of section 45(d) is amended—</text> <paragraph id="H5415ABE939B84208A7A1883B8715C095"><enum>(1)</enum><text>by striking <quote>facility which burns</quote> and inserting <quote>facility (other than a facility described in paragraph (6)) which uses</quote>, and</text> </paragraph><paragraph id="H99A368BB974E4ECEB35C98D744A8DE48"><enum>(2)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">combustion</header-in-text></quote>.</text> </paragraph></subsection><subsection id="H40F3B3EEF3B94FB9ABB5A3D595B4B8D"><enum>(d)</enum><header>Expansion of biomass facilities</header> <paragraph id="HBDBCF402B87A474C86747E6883F3B64C"><enum>(1)</enum><header>Open-loop biomass facilities</header><text>Paragraph (3) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H1314A85A84AA4A37AD71E0DF23BEC265" style="OLC"> <subparagraph id="HC5710D7B915D47900036604290120003"><enum>(B)</enum><header>Expansion of facility</header><text display-inline="yes-display-inline">Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HB4FDCBCD1F934E6A9895C55533AAAA40"><enum>(2)</enum><header>Closed-loop biomass facilities</header><text>Paragraph (2) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H5EAD5F3487DC405AA8EDB1D49AED744" style="OLC"> <subparagraph id="H80CFCF266BE04B4089A2BDEC5F87106E"><enum>(B)</enum><header>Expansion of facility</header><text display-inline="yes-display-inline">Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A)(i), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="HBEF2C48C8AA44AB79937E42DB24701B9"><enum>(e)</enum><header>Sales of net electricity to regulated public utilities treated as sales to unrelated persons</header><text>Paragraph (4) of section 45(e) is amended by adding at the end the following new sentence: <quote>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.</quote>.</text> </subsection><subsection id="H0A31C20B204448AF96661474C8B958CE"><enum>(f)</enum><header>Modification of rules for hydropower production</header><text>Subparagraph (C) of section 45(c)(8) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HE434141B7DFC4B419D5E68E400EFE3FE" style="OLC"> <subparagraph id="H896A73F7534B4A0D8F34042005266627"><enum>(C)</enum><header>Nonhydroelectric dam</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), a facility is described in this subparagraph if—</text> <clause id="H8589A380F6514158826071A6E29B8646"><enum>(i)</enum><text>the hydroelectric project installed on the nonhydroelectric dam is licensed by the Federal Energy Regulatory Commission and meets all other applicable environmental, licensing, and regulatory requirements,</text> </clause><clause id="HE7911D7711DD4086AF8DAFF4183B00F4"><enum>(ii)</enum><text>the nonhydroelectric dam was placed in service before the date of the enactment of this paragraph and operated for flood control, navigation, or water supply purposes and did not produce hydroelectric power on the date of the enactment of this paragraph, and</text> </clause><clause id="HF8B2E910B47D4E60B07B23FD21EB101C"><enum>(iii)</enum><text>the hydroelectric project is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license requirements imposed under applicable law that change the water surface elevation for the purpose of improving environmental quality of the affected waterway.</text> </clause><continuation-text continuation-text-level="subparagraph">The Secretary, in consultation with the Federal Energy Regulatory Commission, shall certify if a hydroelectric project licensed at a nonhydroelectric dam meets the criteria in clause (iii). Nothing in this section shall affect the standards under which the Federal Energy Regulatory Commission issues licenses for and regulates hydropower projects under part I of the Federal Power Act.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H1E100315D3334C579D9F3274AD523660"><enum>(g)</enum><header>Effective date</header> <paragraph id="H930C277C9AE04C81BE2CFEE44574A24B"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to property originally placed in service after December 31, 2008.</text> </paragraph><paragraph id="H10A528540F574C20994309434C636286"><enum>(2)</enum><header>Repeal of credit phaseout</header><text>The amendments made by subsection (b)(1) shall apply to taxable years ending after December 31, 2008.</text> </paragraph><paragraph id="H011271605107471F00C335CD41BDD289"><enum>(3)</enum><header>Limitation based on investment in facility</header><text>The amendment made by subsection (b)(2) shall apply to property originally placed in service after December 31, 2009.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE1E531F4A009499F9369DF9069C90978"><enum>(4)</enum><header>Trash facility clarification; sales to related regulated public utilities</header><text>The amendments made by subsections (c) and (e) shall apply to electricity produced and sold after the date of the enactment of this Act.</text> </paragraph><paragraph id="H6695445E52CC4207B47B8044143F6EB2"><enum>(5)</enum><header>Expansion of biomass facilities</header><text>The amendments made by subsection (d) shall apply to property placed in service after the date of the enactment of this Act.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="HDF5EBA2573C8420BB63D6F6583B72736" section-type="subsequent-section"><enum>552.</enum><header>Production credit for electricity produced from marine renewables</header> <subsection id="H62EAE9E559244C95B1F5D6962900D5F3"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of section 45(c) is amended by striking <quote>and</quote> at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H0AEEAE55976D41229B2C1D2DFFAF6C00" style="OLC"> <subparagraph id="H82C82B49EE54466B82D2E8B749C87C5"><enum>(I)</enum><text display-inline="yes-display-inline">marine and hydrokinetic renewable energy.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="HF3C10A4568454F67A316CAD61B117C"><enum>(b)</enum><header>Marine renewables</header><text>Subsection (c) of section 45 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HF174DC58DB24457CAF45FDEBDA1983" style="OLC"> <paragraph commented="no" id="HA1EA1ADFCB374620949555D1FA0061D"><enum>(10)</enum><header>Marine and hydrokinetic renewable energy</header> <subparagraph id="H31F9F2946EC54371BF50AC35355305E0"><enum>(A)</enum><header>In general</header><text>The term <term>marine and hydrokinetic renewable energy</term> means energy derived from—</text> <clause display-inline="no-display-inline" id="H081012DE24D8466B89AF7990E0BABF00"><enum>(i)</enum><text>waves, tides, and currents in oceans, estuaries, and tidal areas,</text> </clause><clause id="HCD8CA4E9E8FC40C49610EE79259D2BDC"><enum>(ii)</enum><text>free flowing water in rivers, lakes, and streams,</text> </clause><clause id="HB5B151D1EBC048008927812CB16A2F1"><enum>(iii)</enum><text>free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, or</text> </clause><clause id="H6C6560CD03B348BDB96BFD9045478EDC"><enum>(iv)</enum><text>differentials in ocean temperature (ocean thermal energy conversion).</text> </clause></subparagraph><subparagraph id="H1EFE3BC647CE4EA78F16C1D0047F01"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph (A)(iii)), or impoundment for electric power production purposes.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H6FB26F54F7DB4044B7CCE1C716A334B8"><enum>(c)</enum><header>Definition of facility</header><text>Subsection (d) of section 45 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H1425293A9D224965ACC1AF64F392ABF2" style="OLC"> <paragraph id="HF946A56711F247A38E3131DF51BF734F"><enum>(11)</enum><header>Marine and hydrokinetic renewable energy facilities</header><text display-inline="yes-display-inline">In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term <term>qualified facility</term> means any facility owned by the taxpayer—</text> <subparagraph id="H75D9C99AC14B44BF9076C7A401627293"><enum>(A)</enum><text display-inline="yes-display-inline">which has a nameplate capacity rating of at least 150 kilowatts, and</text> </subparagraph><subparagraph id="H40535F9A36754C94B6CA2DFEB666652"><enum>(B)</enum><text>which is originally placed in service on or after the date of the enactment of this paragraph and before January 1, 2012.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H71F50155CA6F406C947672B41B1C5FED"><enum>(d)</enum><header>Credit rate</header><text>Subparagraph (A) of section 45(b)(4) is amended by striking <quote>or (9)</quote> and inserting <quote>(9), or (11)</quote>.</text> </subsection><subsection commented="no" id="H3DDE4EAD3EC14BC289D67CE5388F3C56"><enum>(e)</enum><header>Coordination with small irrigation power</header><text>Paragraph (5) of section 45(d), as amended by section 101, is amended by striking <quote>January 1, 2012</quote> and inserting <quote>the date of the enactment of paragraph (11)</quote>.</text> </subsection><subsection id="H0688D456FA6A4028895500CD76D46E90"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.</text> </subsection></section><section display-inline="no-display-inline" id="HA676278D3EFF494199D5D20344559448"><enum>553.</enum><header>Energy credit</header> <subsection id="H8E5667233F964676AE576454F76D40F2"><enum>(a)</enum><header>Extension of credit</header> <paragraph id="H40E58F1B5E91478BA9F3BEDC26740306"><enum>(1)</enum><header>Solar energy property</header><text>Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) are each amended by striking <quote>January 1, 2009</quote> and inserting <quote>January 1, 2015</quote>.</text> </paragraph><paragraph id="H1395C80357374326A35450A5D1165756"><enum>(2)</enum><header>Fuel cell property</header><text>Subparagraph (E) of section 48(c)(1) is amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2014</quote>.</text> </paragraph><paragraph commented="no" id="HBB91F9B12F0E47058FD1A055EFBDA986"><enum>(3)</enum><header>Microturbine property</header><text>Subparagraph (E) of section 48(c)(2) is amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2014</quote>.</text> </paragraph></subsection><subsection id="HD62CF532B6884088AC554BE2A100846B"><enum>(b)</enum><header>Allowance of energy credit against alternative minimum tax</header><text>Subparagraph (B) of section 38(c)(4) is amended by striking <quote>and</quote> at the end of clause (iii), by redesignating clause (iv) as clause (v), and by inserting after clause (iii) the following new clause:</text> <quoted-block display-inline="no-display-inline" id="HEB53111EB09D4603B64F16B599439804" style="OLC"> <clause id="H087094FA72B54003A6DB44EC0025C7E0"><enum>(iv)</enum><text>the credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48, and</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="H1E1E6DE9565D4A80A772BA1E383E6C5"><enum>(c)</enum><header>Energy credit for combined heat and power system property</header> <paragraph id="H10E4712CD47E401591775FB394A6C4E4"><enum>(1)</enum><header>In general</header><text>Section 48(a)(3)(A) (defining energy property) is amended by striking <quote>or</quote> at the end of clause (iii), by inserting <quote>or</quote> at the end of clause (iv), and by adding at the end the following new clause:</text> <quoted-block id="H1F48B0A44C4D41EC839DC06E2154F37F" style="OLC"> <clause id="HD1E08FE2CF77427EAECE689268CBEA67"><enum>(v)</enum><text>combined heat and power system property,</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HF754698AA2594EDD966B72BE54154EC"><enum>(2)</enum><header>Combined Heat and Power System Property</header><text>Section 48 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H4393A97B7B274689A500A21BB05E4ECC" style="OLC"> <subsection id="HEFEEAA51D6444D529901008100083930"><enum>(d)</enum><header>Combined Heat and Power System Property</header><text>For purposes of subsection (a)(3)(A)(v)—</text> <paragraph id="H4BFF2C432ABA4533AE5FABE1D828BF68"><enum>(1)</enum><header>Combined heat and power system property</header><text>The term <term>combined heat and power system property</term> means property comprising a system—</text> <subparagraph id="HAC8EA1AFA5AF42A49216D8ADDBF7E394"><enum>(A)</enum><text>which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications),</text> </subparagraph><subparagraph id="H86420008D620419AA2F7ACFDCE68E853"><enum>(B)</enum><text>which produces—</text> <clause id="H81F4164B0595478394B9B7BE77D5E9E"><enum>(i)</enum><text>at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof), and</text> </clause><clause id="H8E5C3AF6439746048562DCFA766C8553"><enum>(ii)</enum><text>at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof),</text> </clause></subparagraph><subparagraph id="HC1274F930EB1431CB4E451214D372E6B"><enum>(C)</enum><text>the energy efficiency percentage of which exceeds 60 percent, and</text> </subparagraph><subparagraph id="HB339B7321B884ABD9F4088FF57AA1176"><enum>(D)</enum><text>which is placed in service before January 1, 2015.</text> </subparagraph></paragraph><paragraph id="HD3E6EA900E2146FBAA53D2521D895205"><enum>(2)</enum><header>Limitation</header> <subparagraph id="HE5CFFAC025814CB4816945EAF1CB1002"><enum>(A)</enum><header>In general</header><text>In the case of combined heat and power system property with an electrical capacity in excess of the applicable capacity placed in service during the taxable year, the credit under subsection (a)(1) (determined without regard to this paragraph) for such year shall be equal to the amount which bears the same ratio to such credit as the applicable capacity bears to the capacity of such property.</text> </subparagraph><subparagraph id="H6AB5F7C96A154650AC1400D2BE76AA61"><enum>(B)</enum><header>Applicable capacity</header><text>For purposes of subparagraph (A), the term <term>applicable capacity</term> means 15 megawatts or a mechanical energy capacity of more than 20,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.</text> </subparagraph><subparagraph id="H09052E1F89B84A60A2990019571DC646"><enum>(C)</enum><header>Maximum capacity</header><text>The term <term>combined heat and power system property</term> shall not include any property comprising a system if such system has a capacity in excess of 50 megawatts or a mechanical energy capacity in excess of 67,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.</text> </subparagraph></paragraph><paragraph id="H3A9B494A5DFB48468761511D3899AE44"><enum>(3)</enum><header>Special rules</header> <subparagraph id="H75EA9722D02843BEA72541832607F896"><enum>(A)</enum><header>Energy efficiency percentage</header><text>For purposes of this subsection, the energy efficiency percentage of a system is the fraction—</text> <clause id="HB20FDB9E932E4483B3F691008401B48B"><enum>(i)</enum><text>the numerator of which is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates, and expected to be consumed in its normal application, and</text> </clause><clause id="HA6E721BF739A4804B5F1E395A1F81C5F"><enum>(ii)</enum><text>the denominator of which is the lower heating value of the fuel sources for the system.</text> </clause></subparagraph><subparagraph id="H75D88A1463D9402EA6A11389AD448203"><enum>(B)</enum><header>Determinations made on btu basis</header><text>The energy efficiency percentage and the percentages under paragraph (1)(B) shall be determined on a Btu basis.</text> </subparagraph><subparagraph id="H13063ED1A94D4DEBA2F63511E026EEED"><enum>(C)</enum><header>Input and output property not included</header><text>The term <term>combined heat and power system property</term> does not include property used to transport the energy source to the facility or to distribute energy produced by the facility.</text> </subparagraph></paragraph><paragraph id="H41026E8C3C544F7D874512D6008B5682"><enum>(4)</enum><header>Systems using biomass</header><text>If a system is designed to use biomass (within the meaning of paragraphs (2) and (3) of section 45(c) without regard to the last sentence of paragraph (3)(A)) for at least 90 percent of the energy source—</text> <subparagraph id="H4AEB10714CEA4473A31C487E006BFA39"><enum>(A)</enum><text>paragraph (1)(C) shall not apply, but</text> </subparagraph><subparagraph id="HF3AFF915B86C4EA8B8B793DD98E15800"><enum>(B)</enum><text>the amount of credit determined under subsection (a) with respect to such system shall not exceed the amount which bears the same ratio to such amount of credit (determined without regard to this paragraph) as the energy efficiency percentage of such system bears to 60 percent.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H619020EEA2B74FAA9934BF134ED83066"><enum>(d)</enum><header>Increase of credit limitation for fuel cell property</header><text>Subparagraph (B) of section 48(c)(1) is amended by striking <quote>$500</quote> and inserting <quote>$1,500</quote>.</text> </subsection><subsection id="H91862D8AA80E47F2ACEF7CCDFB96BEF8"><enum>(e)</enum><header>Public utility property taken into account</header> <paragraph id="HAC124EF4EC0248B38B232F497CEF664C"><enum>(1)</enum><header>In general</header><text>Paragraph (3) of section 48(a) is amended by striking the second sentence thereof.</text> </paragraph><paragraph id="H9C7ED619BED74539B48643F73349F0FB"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="H22B1CF695D344D52866B9CDB3146FC2B"><enum>(A)</enum><text>Paragraph (1) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).</text> </subparagraph><subparagraph id="H5D4E1BA28F644457A696111149F9C00"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).</text> </subparagraph></paragraph></subsection><subsection id="H5185DEA2B7754FF900358E8DE4F5954D"><enum>(f)</enum><header>Effective date</header> <paragraph id="HDC8ABCE1C97F4832AACE59E2FF00E801"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act.</text> </paragraph><paragraph id="H87B1A43FE78E4730B54D7ED7AC9EFD47"><enum>(2)</enum><header>Allowance against alternative minimum tax</header><text>The amendments made by subsection (b) shall apply to credits determined under section 46 of the Internal Revenue Code of 1986 in taxable years beginning after the date of the enactment of this Act and to carrybacks of such credits.</text> </paragraph><paragraph id="HD0C7B183D9404C26ADF174EB783D455D"><enum>(3)</enum><header>Combined heat and power and fuel cell property</header><text>The amendments made by subsections (c) and (d) shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text> </paragraph><paragraph id="HC8C2513840D045A398E37DB6507AA51"><enum>(4)</enum><header> Public utility property</header><text display-inline="yes-display-inline">The amendments made by subsection (e) shall apply to periods after February 13, 2008, in taxable years ending after such date, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H959DC66D2E3A439B88C30612E167B9CF" section-type="subsequent-section"><enum>554.</enum><header>Credit for residential energy efficient property</header> <subsection id="HC763844781E448A298BF235EEA939683"><enum>(a)</enum><header>Extension</header><text>Section 25D(g) is amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2014</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H40469B5B4D2746D5B5C1EC51C81064"><enum>(b)</enum><header>Maximum credit for solar electric property</header> <paragraph commented="no" display-inline="no-display-inline" id="H22B77A2A8A894F609773CC57EE957348"><enum>(1)</enum><header>In general</header><text>Section 25D(b)(1)(A) is amended by striking <quote>$2,000</quote> and inserting <quote>$4,000</quote>.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7C80905DBAB24667A7DF5D554F4CB8B"><enum>(2)</enum><header>Conforming amendment</header><text>Section 25D(e)(4)(A)(i) is amended by striking <quote>$6,667</quote> and inserting <quote>$13,333</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H07E34AC8C7FA4D5AAAE42F8906D6791B"><enum>(c)</enum><header>Credit for residential wind property</header> <paragraph commented="no" id="H68D60FDBF80241E1AED0D3CDCD19BCF6"><enum>(1)</enum><header>In general</header><text>Section 25D(a) is amended by striking <quote>and</quote> at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H84048044BB1043AB85ABB3432CE216E" style="OLC"> <paragraph id="HAA87337A7D314A09988EAAC932AE1B24"><enum>(4)</enum><text>30 percent of the qualified small wind energy property expenditures made by the taxpayer during such year.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="H5B30C06187A644D894372C9D80009ED8"><enum>(2)</enum><header>Limitation</header><text>Section 25D(b)(1) is amended by striking <quote>and</quote> at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H3B877403311B4511BDB7F8561C69FFF7" style="OLC"> <subparagraph id="H72077920775648539BCB4FE064C1967D"><enum>(D)</enum><text>$500 with respect to each half kilowatt of capacity (not to exceed $4,000) of wind turbines for which qualified small wind energy property expenditures are made.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="H87CFCB38C5E747BAB5D7983F6977C798"><enum>(3)</enum><header>Qualified small wind energy property expenditures</header> <subparagraph commented="no" id="HE8ADC388FB184C4D939C64EBF8184E4E"><enum>(A)</enum><header>In general</header><text>Section 25D(d) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H9850548C713743B19DC0B68670865FF7" style="OLC"> <paragraph id="HB6A84C852B5C480BB9EFEE61F0B89F06"><enum>(4)</enum><header>Qualified small wind energy property expenditure</header><text>The term <term>qualified small wind energy property expenditure</term> means an expenditure for property which uses a wind turbine to generate electricity for use in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph commented="no" id="H51475539002547BC8C77BAD2C42BD45E"><enum>(B)</enum><header>No double benefit</header><text>Section 45(d)(1) is amended by adding at the end the following new sentence: <quote>Such term shall not include any facility with respect to which any qualified small wind energy property expenditure (as defined in subsection (d)(4) of section 25D) is taken into account in determining the credit under such section.</quote>.</text> </subparagraph></paragraph><paragraph commented="no" id="HBF0BA66C106D47508E1721CE4B13D736"><enum>(4)</enum><header>Maximum expenditures in case of joint occupancy</header><text>Section 25D(e)(4)(A) is amended by striking <quote>and</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H9E1A289820504335B0007C19DBFF9BD1" style="OLC"> <clause commented="no" id="H5838DA6065A2451392CB9B112F12E000"><enum>(iv)</enum><text>$1,667 in the case of each half kilowatt of capacity (not to exceed $13,333) of wind turbines for which qualified small wind energy property expenditures are made.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H418703BC7B1E4D7184C2F0F4C3FA71E6"><enum>(d)</enum><header>Credit for geothermal heat Pump systems</header> <paragraph commented="no" id="H49013E2977DB4E2181F684F323DFC125"><enum>(1)</enum><header>In general</header><text>Section 25D(a), as amended by subsection (c), is amended by striking <quote>and</quote> at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H0EAEDA5ABAE14E50BCF04BC1FBCC29CD" style="OLC"> <paragraph id="HAE9E21F7BD694B049F4CCEAFE10019A8"><enum>(5)</enum><text>30 percent of the qualified geothermal heat pump property expenditures made by the taxpayer during such year.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="HFD6B93214ECD4EAF9E8D7787EC59F31"><enum>(2)</enum><header>Limitation</header><text>Section 25D(b)(1), as amended by subsection (c), is amended by striking <quote>and</quote> at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H23BC3233008542F494A8A31303E0A98C" style="OLC"> <subparagraph id="H7F8D69316F924CC4A0543852993836B1"><enum>(E)</enum><text>$2,000 with respect to any qualified geothermal heat pump property expenditures.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="H2C51C72896BF4ABCA6BF414FACF6734"><enum>(3)</enum><header>Qualified geothermal heat pump property expenditure</header><text>Section 25D(d), as amended by subsection (c), is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H7EA45A2B34F649518DFAE73E17585DBE" style="OLC"> <paragraph id="H8989D37B96FD40AFAAE54B5F1E0815DC"><enum>(5)</enum><header>Qualified geothermal heat pump property expenditure</header> <subparagraph id="H6D66DCBA667E45A496816BAD3B3278AC"><enum>(A)</enum><header>In general</header><text>The term <term>qualified geothermal heat pump property expenditure</term> means an expenditure for qualified geothermal heat pump property installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.</text> </subparagraph><subparagraph id="HBE7167A6446841D48578694BEB3B7274"><enum>(B)</enum><header>Qualified geothermal heat pump property</header><text>The term <quote>qualified geothermal heat pump property</quote> means any equipment which—</text> <clause id="H0AB4AF607C1E483EBE98D0057634241"><enum>(i)</enum><text display-inline="yes-display-inline">uses the ground or ground water as a thermal energy source to heat the dwelling unit referred to in subparagraph (A) or as a thermal energy sink to cool such dwelling unit, and</text> </clause><clause id="HA6432F78C8014440A9CC32067CDAFBB8"><enum>(ii)</enum><text display-inline="yes-display-inline">meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="H6579661DF6374751A4FAA5FA95EB20EF"><enum>(4)</enum><header>Maximum expenditures in case of joint occupancy</header><text>Section 25D(e)(4)(A), as amended by subsection (c), is amended by striking <quote>and</quote> at the end of clause (iii), by striking the period at the end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H470C795D72C049FB885329CE10AE502B" style="OLC"> <clause commented="no" id="HCAE0D3629C374AE292A8A02C277C11D0"><enum>(v)</enum><text>$6,667 in the case of any qualified geothermal heat pump property expenditures.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="HEE3EBAE11AF0455C85638C9D9D89A503"><enum>(e)</enum><header>Credit allowed against alternative minimum tax</header> <paragraph commented="no" id="H1078E1D4C16E43219724441E75DCA712"><enum>(1)</enum><header>In general</header><text>Subsection (c) of section 25D is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H7C153F3A350B4F3FA4193B9FEDCFAC43" style="OLC"> <subsection commented="no" id="H66821AFE4C84409B816353F5D900F59F"><enum>(c)</enum><header>Limitation based on amount of tax; carryforward of unused credit</header> <paragraph commented="no" id="HE78D014F9EB54C119CBEB9F3F32CCD16"><enum>(1)</enum><header>Limitation based on amount of tax</header><text>In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of—</text> <subparagraph commented="no" id="H8D478875889844E5ADADD61864C3F6F"><enum>(A)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text> </subparagraph><subparagraph commented="no" id="HC9E50D68A1F643AD8E2EFCF60777FCE"><enum>(B)</enum><text>the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.</text> </subparagraph></paragraph><paragraph commented="no" id="H882F9CD09F8040009153C956A397EA20"><enum>(2)</enum><header>Carryforward of unused credit</header> <subparagraph commented="no" id="HF9CA9D5EEAE54BD1AEB2A6110023978D"><enum>(A)</enum><header>Rule for years in which all personal credits allowed against regular and alternative minimum tax</header><text display-inline="yes-display-inline">In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.</text> </subparagraph><subparagraph commented="no" id="H5F1D2327E8D045969DCF33A6B766478C"><enum>(B)</enum><header>Rule for other years</header><text>In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="H2079530780DC44728333683845DA9E7C"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph commented="no" id="H4C1BD3F3FAF840BB96468224699C00A6"><enum>(A)</enum><text>Section 23(b)(4)(B) is amended by inserting <quote>and section 25D</quote> after <quote>this section</quote>.</text> </subparagraph><subparagraph commented="no" id="H8C915C97562644AAA500002F1EE75B98"><enum>(B)</enum><text>Section 24(b)(3)(B) is amended by striking <quote>and 25B</quote> and inserting <quote>, 25B, and 25D</quote>.</text> </subparagraph><subparagraph commented="no" id="H12375F10E08644A58CED2B16EA4F78FB"><enum>(C)</enum><text>Section 25B(g)(2) is amended by striking <quote>section 23</quote> and inserting <quote>sections 23 and 25D</quote>.</text> </subparagraph><subparagraph commented="no" id="HCEF10F5AA36D4266A1399EAB46167786"><enum>(D)</enum><text>Section 26(a)(1) is amended by striking <quote>and 25B</quote> and inserting <quote>25B, and 25D</quote>.</text> </subparagraph></paragraph></subsection><subsection id="H2C6239E8D16E4D4A8FAB76E7679C89E5"><enum>(f)</enum><header>Effective date</header> <paragraph id="HDEDBA66DD3994C90B5B9B14D6B00196E"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2007.</text> </paragraph><paragraph id="H4EEC1B366DDA4A8B9CFAA6040466A22E"><enum>(2)</enum><header>Application of EGTRRA sunset</header><text>The amendments made by subparagraphs (A) and (B) of subsection (e)(2) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H3BC55B52E7C049A4A7683088E1C86FE7" section-type="subsequent-section"><enum>555.</enum><header>Special rule to implement FERC and State electric restructuring policy</header> <subsection id="H5FAF22BF1D264FB4A441F7739B383668"><enum>(a)</enum><header>Extension for qualified electric utilities</header> <paragraph id="HB6FC1A3BFE9742F3BC5194ABF8F0916E"><enum>(1)</enum><header>In general</header><text>Paragraph (3) of section 451(i) is amended by inserting <quote>(before January 1, 2010, in the case of a qualified electric utility)</quote> after <quote>January 1, 2008</quote>.</text> </paragraph><paragraph id="H4F5DD40009F64C24A76EA8130849347"><enum>(2)</enum><header>Qualified electric utility</header><text>Subsection (i) of section 451 is amended by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively, and by inserting after paragraph (5) the following new paragraph:</text> <quoted-block id="H19D4CB9BBFC24A9DADD0D3F592B48221" style="OLC"> <paragraph id="H77769513FFB64CEF9018FF749F5BD2F"><enum>(6)</enum><header>Qualified electric utility</header><text>For purposes of this subsection, the term <quote>qualified electric utility</quote> means a person that, as of the date of the qualifying electric transmission transaction, is vertically integrated, in that it is both—</text> <subparagraph id="HD0C058D1BFB44520AB11205578F8B704"><enum>(A)</enum><text>a transmitting utility (as defined in section 3(23) of the Federal Power Act (16 U.S.C. 796(23))) with respect to the transmission facilities to which the election under this subsection applies, and</text> </subparagraph><subparagraph id="HC81BA0D480C140AC0025CF30A76CCA45"><enum>(B)</enum><text>an electric utility (as defined in section 3(22) of the Federal Power Act (16 U.S.C. 796(22))).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H78FA7DF922EC4AB28F148FE6338CD837"><enum>(b)</enum><header>Extension of period for transfer of operational control authorized by FERC</header><text>Clause (ii) of section 451(i)(4)(B) is amended by striking <quote>December 31, 2007</quote> and inserting <quote>the date which is 4 years after the close of the taxable year in which the transaction occurs</quote>.</text> </subsection><subsection id="H4503307ABDD64922AD3727E65038719D"><enum>(c)</enum><header>Property located outside the united states not treated as exempt utility property</header><text>Paragraph (5) of section 451(i) is amended by adding at the end the following new subparagraph:</text> <quoted-block id="H56E0575ED1094BBD00C70D726B83D8" style="OLC"> <subparagraph id="H2B97AC5924AE4EC5ACCB2822CA823900"><enum>(C)</enum><header>Exception for property located outside the united states</header><text>The term <quote>exempt utility property</quote> shall not include any property which is located outside the United States.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H417E1188DF88461E8E30ACDD83FBA9E"><enum>(d)</enum><header>Effective Dates</header> <paragraph id="H789219DB66E64467B3C293DFBD990756"><enum>(1)</enum><header>Extension</header><text>The amendments made by subsection (a) shall apply to transactions after December 31, 2007.</text> </paragraph><paragraph id="H2993417756E04A3C00BE14E03455DE72"><enum>(2)</enum><header>Transfers of operational control</header><text>The amendment made by subsection (b) shall take effect as if included in section 909 of the American Jobs Creation Act of 2004.</text> </paragraph><paragraph id="H27F04B9BAF844303BAE24DD0AFB8FB38"><enum>(3)</enum><header>Exception for property located outside the united states</header><text>The amendment made by subsection (c) shall apply to transactions after the date of the enactment of this Act.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H4873E51BF1F94D0F95C503AE7E06F621" section-type="subsequent-section"><enum>556.</enum><header>New clean renewable energy bonds</header> <subsection id="HE72FC1606BFF42428D04E3A81E970734"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="H2DABC2A088F54D8BB967196FC91B0201" style="OLC"> <section display-inline="no-display-inline" id="HA65F6969AAA64E11B3FB0000A1BD9016" section-type="subsequent-section"><enum>54C.</enum><header>New clean renewable energy bonds</header> <subsection id="H5121BA709B5D4C87AD25DFA92DEB94B"><enum>(a)</enum><header>New clean renewable energy bond</header><text>For purposes of this subpart, the term <term>new clean renewable energy bond</term> means any bond issued as part of an issue if—</text> <paragraph id="HDFF58E13305F456E8741F664419FD184"><enum>(1)</enum><text>100 percent of the available project proceeds of such issue are to be used for capital expenditures incurred by public power providers or cooperative electric companies for one or more qualified renewable energy facilities,</text> </paragraph><paragraph id="H74425A51F45D4B1D94E59769ECD84C68"><enum>(2)</enum><text>the bond is issued by a qualified issuer, and</text> </paragraph><paragraph id="HF73A955637FA4DFA9779B590BEF6B2DC"><enum>(3)</enum><text>the issuer designates such bond for purposes of this section.</text> </paragraph></subsection><subsection id="H21F2D5138D3B4360BF3B01A9F785D78"><enum>(b)</enum><header>Reduced credit amount</header><text>The annual credit determined under section 54A(b) with respect to any new clean renewable energy bond shall be 70 percent of the amount so determined without regard to this subsection.</text> </subsection><subsection display-inline="no-display-inline" id="H7E81B8E0C6E24AD1BCC3E9E0FBB999ED"><enum>(c)</enum><header>Limitation on amount of bonds designated</header> <paragraph id="HCED3415E83AD4B7A8055EF44FC3EFBE5"><enum>(1)</enum><header>In general</header><text>The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated under this subsection to such issuer.</text> </paragraph><paragraph id="H170677C90D064FC2A6A42F3B1493B85C"><enum>(2)</enum><header>National limitation on amount of bonds designated</header><text>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—</text> <subparagraph id="H9A7E45C623FD4593A6CF8416F213225C"><enum>(A)</enum><text>not more than 33<fraction>1/3</fraction> percent thereof may be allocated to qualified projects of public power providers,</text> </subparagraph><subparagraph id="H00BED132C487428B9F37E45DB8FBA409"><enum>(B)</enum><text>not more than 33<fraction>1/3</fraction> percent thereof may be allocated to qualified projects of governmental bodies, and</text> </subparagraph><subparagraph id="H1D57DF8814034206A366ACEC94F108D1"><enum>(C)</enum><text>not more than 33<fraction>1/3</fraction> percent thereof may be allocated to qualified projects of cooperative electric companies.</text> </subparagraph></paragraph><paragraph id="H0FCC1C6B7DF54CEF88E04E74B2B38CC8"><enum>(3)</enum><header>Method of allocation</header> <subparagraph id="H46A61C68D3D645BFA19E503D34E2E27F"><enum>(A)</enum><header>Allocation among public power providers</header><text>After the Secretary determines the qualified projects of public power providers which are appropriate for receiving an allocation of the national new clean renewable energy bond limitation, the Secretary shall, to the maximum extent practicable, make allocations among such projects in such manner that the amount allocated to each such project bears the same ratio to the cost of such project as the limitation under paragraph (2)(A) bears to the cost of all such projects.</text> </subparagraph><subparagraph id="HD6224CE8CBC04AB8A7BF1E65D974124F"><enum>(B)</enum><header>Allocation among governmental bodies and cooperative electric companies</header><text>The Secretary shall make allocations of the amount of the national new clean renewable energy bond limitation described in paragraphs (2)(B) and (2)(C) among qualified projects of governmental bodies and cooperative electric companies, respectively, in such manner as the Secretary determines appropriate.</text> </subparagraph></paragraph></subsection><subsection id="HE0DCC1C6686F471184E9D2253BAE8490"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="HC8D1047899B14194A789BC483D459BE6"><enum>(1)</enum><header>Qualified renewable energy facility</header><text>The term <term>qualified renewable energy facility</term> means a qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and to any placed in service date) owned by a public power provider, a governmental body, or a cooperative electric company.</text> </paragraph><paragraph id="H6B9350CD363A4638A3C6F9E95E8FE7D3"><enum>(2)</enum><header>Public power provider</header><text display-inline="yes-display-inline">The term <term>public power provider</term> means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on the date of the enactment of this paragraph).</text> </paragraph><paragraph display-inline="no-display-inline" id="H3AFA91328D1D4E04A2004B039BFBF2BC"><enum>(3)</enum><header>Governmental body</header><text>The term <term>governmental body</term> means any State or Indian tribal government, or any political subdivision thereof.</text> </paragraph><paragraph id="H40370C643B12473783AE65662936EB87"><enum>(4)</enum><header>Cooperative electric company</header><text display-inline="yes-display-inline">The term <term>cooperative electric company</term> means a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C).</text> </paragraph><paragraph id="H1A8847D11DDE4D1DA9848FBBC23FEA9C"><enum>(5)</enum><header>Clean renewable energy bond lender</header><text display-inline="yes-display-inline">The term <term>clean renewable energy bond lender</term> means a lender which is a cooperative which is owned by, or has outstanding loans to, 100 or more cooperative electric companies and is in existence on February 1, 2002, and shall include any affiliated entity which is controlled by such lender.</text> </paragraph><paragraph id="HC9C397191AAE43C5857F8F11EB00F1D6"><enum>(6)</enum><header>Qualified issuer</header><text display-inline="yes-display-inline">The term <term>qualified issuer</term> means a public power provider, a cooperative electric company, a governmental body, a clean renewable energy bond lender, or a not-for-profit electric utility which has received a loan or loan guarantee under the Rural Electrification Act.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="HC63ADEFE99B0469DB0B6835F91E6FE79"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H32458AB051B44E89B0FE2536B4C1700"><enum>(1)</enum><text>Paragraph (1) of section 54A(d) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HB3EF650D43A2437BA7F57E8100BF1D85" style="OLC"> <paragraph commented="no" id="H3E9125B394FB47639BD2C7428D3B2E6"><enum>(1)</enum><header>Qualified tax credit bond</header><text>The term <term>qualified tax credit bond</term> means—</text> <subparagraph id="HA1C6FF337D894E399C19C8B63155E5E1"><enum>(A)</enum><text>a qualified forestry conservation bond, or</text> </subparagraph><subparagraph id="H8D7AB3F22692403ABCA50079179554CA"><enum>(B)</enum><text>a new clean renewable energy bond,</text> </subparagraph><continuation-text continuation-text-level="paragraph">which is part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and (6).</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H376C3EF9A1144CAB9FCC21EC326F9006"><enum>(2)</enum><text>Subparagraph (C) of section 54A(d)(2) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HC96C817D2857404789E3195F936D72B" style="OLC"> <subparagraph commented="no" id="H53489F7B82834069005B7C31B70072F9"><enum>(C)</enum><header>Qualified purpose</header><text>For purposes of this paragraph, the term <term>qualified purpose</term> means—</text> <clause id="H40FD0E285754447AB11588CA98C81505"><enum>(i)</enum><text>in the case of a qualified forestry conservation bond, a purpose specified in section 54B(e), and</text> </clause><clause id="H2ACCEC47B9614BD59BC3B4FE200201D3"><enum>(ii)</enum><text>in the case of a new clean renewable energy bond, a purpose specified in section 54C(a)(1).</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HA393A8910A1348B0ABA30350E4CBB0BB"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:</text> <quoted-block display-inline="no-display-inline" id="HB8CC25DC90A84631812FE1F9ED8B5E" style="OLC"> <toc container-level="quoted-block-container" idref="H2DABC2A088F54D8BB967196FC91B0201" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry idref="HA65F6969AAA64E11B3FB0000A1BD9016" level="section">Sec. 54C. New clean renewable energy bonds.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H36F42E06DE1E4146ABFC6649D9F1F61C"><enum>(c)</enum><header>Application of certain labor standards on projects financed under tax credit bonds</header><text>Subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code, shall apply to projects financed with the proceeds of any tax credit bond (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/54A">section 54A</external-xref> of the Internal Revenue Code of 1986) other than qualified forestry conservation bonds (as defined in section 54B of such Code).</text> </subsection><subsection display-inline="no-display-inline" id="H94AFE4BDA8DB459700EFB88348482E55"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.</text> </subsection></section></subpart><subpart id="H1C91180ECA6347968C984EB4203D8408"><enum>B</enum><header>Carbon Mitigation Provisions</header> <section display-inline="no-display-inline" id="H898B968A82DE4132A5646C63FA59945D" section-type="subsequent-section"><enum>561.</enum><header>Expansion and modification of advanced coal project investment credit</header> <subsection id="HFE5B15FADEFF42838E1300473695E917"><enum>(a)</enum><header>Modification of credit amount</header><text>Section 48A(a) is amended by striking <quote>and</quote> at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H466EBEFBB29E4DCE987F4FE7AFA07380" style="OLC"> <paragraph id="H4C64A8201C1C47D8911736EB9308C0A"><enum>(3)</enum><text>30 percent of the qualified investment for such taxable year in the case of projects described in clause (iii) of subsection (d)(3)(B).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H6F7BACF1BC474B39BFC4CB3AEC764DA"><enum>(b)</enum><header>Expansion of aggregate credits</header><text>Section 48A(d)(3)(A) is amended by striking <quote>$1,300,000,000</quote> and inserting <quote>$2,550,000,000</quote>.</text> </subsection><subsection id="H3A1FB00BA9F84259A5AEA4003D4397D3"><enum>(c)</enum><header>Authorization of Additional Projects</header> <paragraph id="HD29AF07B14BE4F83B187EB8024B78B3D"><enum>(1)</enum><header>In general</header><text>Subparagraph (B) of section 48A(d)(3) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HA9C846CF0E7C4949B81F654E396B374D" style="OLC"> <subparagraph id="H38C88080C9E64A0FAFEDD896C003D2"><enum>(B)</enum><header>Particular projects</header><text>Of the dollar amount in subparagraph (A), the Secretary is authorized to certify—</text> <clause id="H2EBE2DA0B71F48F2A075735933DA7BF2"><enum>(i)</enum><text>$800,000,000 for integrated gasification combined cycle projects the application for which is submitted during the period described in paragraph (2)(A)(i),</text> </clause><clause id="H50919C42FA2B4714919D7E292FF91900"><enum>(ii)</enum><text>$500,000,000 for projects which use other advanced coal-based generation technologies the application for which is submitted during the period described in paragraph (2)(A)(i), and</text> </clause><clause id="H6429C94B32FE41F0B591B78EB0087672"><enum>(iii)</enum><text>$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).</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H3F034AE43C2248A991ADE2FCD4B15C1"><enum>(2)</enum><header>Application period for additional projects</header><text>Subparagraph (A) of section 48A(d)(2) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H99934603237E404FB111B88DBF8FA320" style="OLC"> <subparagraph id="HBEBBC91206054EF79B3EFD8B4B70059"><enum>(A)</enum><header>Application period</header><text>Each applicant for certification under this paragraph shall submit an application meeting the requirements of subparagraph (B). An applicant may only submit an application—</text> <clause id="H0E8DD3F9F514467286214200ADC9FE74"><enum>(i)</enum><text>for an allocation from the dollar amount specified in clause (i) or (ii) of paragraph (3)(B) during the 3-year period beginning on the date the Secretary establishes the program under paragraph (1), and</text> </clause><clause id="H2C9613B367D642EC0043C4ACA7D1AD23"><enum>(ii)</enum><text>for an allocation from the dollar amount specified in paragraph (3)(B)(iii) during the 3-year period beginning at the earlier of the termination of the period described in clause (i) or the date prescribed by the Secretary.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H4A86CC45A2E84ED3A3B0DAABECD8B4D4"><enum>(3)</enum><header>Capture and sequestration of carbon dioxide emissions requirement</header> <subparagraph id="HC8CBF63A2A424258919750D637E9B117"><enum>(A)</enum><header>In general</header><text>Section 48A(e)(1) is amended by striking <quote>and</quote> at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting <quote>; and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HB2B48F9215314DC6AA91AB3D141000FE" style="OLC"> <subparagraph id="H8A7A0D6B91A3462B8272FB76B33D8092"><enum>(G)</enum><text>in the case of any project the application for which is submitted during the period described in subsection (d)(2)(A)(ii), the project includes equipment which separates and sequesters at least 65 percent (70 percent in the case of an application for reallocated credits under subsection (d)(4)) of such project's total carbon dioxide emissions.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HAA59A1C9712A4617B5B3EF4145BCF41C"><enum>(B)</enum><header>Highest priority for projects which sequester carbon dioxide emissions</header><text>Section 48A(e)(3) is amended by striking <quote>and</quote> at the end of subparagraph (A)(iii), by striking the period at the end of subparagraph (B)(iii) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H7B7F9419DEFF439288E06D5DA3031B75" style="OLC"> <subparagraph id="HE5CDF852CD03429F933894F241933835"><enum>(C)</enum><text>give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HF9B3E07BD52741AA8700308FADBCAC18"><enum>(C)</enum><header>Recapture of credit for failure to sequester</header><text>Section 48A is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HEED9B8E4A40B46D9BA3E48E9F9C6656C" style="OLC"> <subsection id="HC52F2B78F1524A1887E8476263DB8D44"><enum>(h)</enum><header>Recapture of credit for failure To sequester</header><text>The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain the separation and sequestration requirements of subsection (e)(1)(G).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H7F32DF00C950436698005000B8F57585"><enum>(4)</enum><header>Additional priority for research partnerships</header><text>Section 48A(e)(3)(B), as amended by paragraph (3)(B), is amended—</text> <subparagraph id="HCD91345037844676A400FC8600F2696C"><enum>(A)</enum><text>by striking <quote>and</quote> at the end of clause (ii),</text> </subparagraph><subparagraph id="H4E892CFA9F7746A5AB5B9351A88875AF"><enum>(B)</enum><text>by redesignating clause (iii) as clause (iv), and</text> </subparagraph><subparagraph id="H2F9A6328124045F4A5485E1B1F89F55"><enum>(C)</enum><text>by inserting after clause (ii) the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H9A98500126D248E4A648F60794004240" style="OLC"> <clause id="H07033DAA8B834D3BA74BA1B33FDC7B5F"><enum>(iii)</enum><text>applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)), and</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H0ADE76A40F364B918F89CDB47796F592"><enum>(5)</enum><header>Clerical amendment</header><text>Section 48A(e)(3) is amended by striking <quote><header-in-text level="paragraph" style="OLC">integrated gasification combined cycle</header-in-text></quote> in the heading and inserting <quote><header-in-text level="paragraph" style="OLC">certain</header-in-text></quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1D3541C4F8AD4418B9E32B2063D7D817"><enum>(d)</enum><header display-inline="yes-display-inline">Competitive certification awards modification authority</header><text>Section 48A, as amended by subsection (c)(3), is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H891DED616E6A44BCB6DFC7D6A6C5FB7E" style="OLC"> <subsection id="H7141412A91E14FC39EE034772D76A200"><enum>(i)</enum><header>Competitive certification awards modification authority</header><text>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—</text> <paragraph id="HA72B1C9909AF4BB0895499C823A84097"><enum>(1)</enum><text>is consistent with the objectives of such section,</text> </paragraph><paragraph id="H9FED2D144B064320B5D7CBF01022C640"><enum>(2)</enum><text>is requested by the recipient of the competitive certification award, and</text> </paragraph><paragraph id="HFE159126651644AFA52BD463DA8DC0C0"><enum>(3)</enum><text>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,</text> </paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H684B3D1A58D04CBBB759115429296484"><enum>(e)</enum><header>Disclosure of allocations</header><text>Section 48A(d) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H86FE3299E82949A192CCF2FDBCD966D2" style="OLC"> <paragraph id="HA68664CC48094D6CB74690BE4E006C26"><enum>(5)</enum><header>Disclosure of allocations</header><text display-inline="yes-display-inline">The Secretary shall, upon making a certification under this subsection or section 48B(d), publicly disclose the identity of the applicant and the amount of the credit certified with respect to such applicant.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H033BBAF4B3DE4C54B997FFCE5233AB54"><enum>(f)</enum><header>Effective dates</header> <paragraph commented="no" display-inline="no-display-inline" id="H6AE4F00899D3453EAFCA3B76EA8773C"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to credits the application for which is submitted during the period described in section 48A(d)(2)(A)(ii) of the Internal Revenue Code of 1986 and which are allocated or reallocated after the date of the enactment of this Act.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H312322E3455E4554BFF4FD6490929B8D"><enum>(2)</enum><header display-inline="yes-display-inline">Competitive certification awards modification authority</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H44A7D4392B2E4B42876DCB31ED30B513"><enum>(3)</enum><header>Disclosure of allocations</header><text>The amendment made by subsection (e) shall apply to certifications made after the date of the enactment of this Act.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7057BCC093934DF29C92EDF18CD61FA1"><enum>(4)</enum><header>Clerical amendment</header><text>The amendment made by subsection (c)(5) shall take effect as if included in the amendment made by section 1307(b) of the Energy Tax Incentives Act of 2005.</text> </paragraph></subsection></section><section id="HD9E393B4731B4DE0A774551DF7D10900"><enum>562.</enum><header>Expansion and modification of coal gasification investment credit</header> <subsection id="H28D0BCCCBBB74E4A8F50F4B3D6D6CEEC"><enum>(a)</enum><header>Modification of credit amount</header><text display-inline="yes-display-inline">Section 48B(a) is amended by inserting <quote>(30 percent in the case of credits allocated under subsection (d)(1)(B))</quote> after <quote>20 percent</quote>.</text> </subsection><subsection id="HF3E914B9A2DB415995D20000AF4887CB"><enum>(b)</enum><header>Expansion of aggregate credits</header><text>Section 48B(d)(1) is amended by striking <quote>shall not exceed $350,000,000</quote> and all that follows and inserting</text> <quoted-block display-inline="yes-display-inline" id="H0B49BCCEBF7D4F6C8CCD00520012219D" style="OLC"> <text>shall not exceed—</text><subparagraph id="H727CD8BF26FA491EB73226D2B9068603"><enum>(A)</enum><text display-inline="yes-display-inline">$350,000,000, plus</text> </subparagraph><subparagraph id="H93C7CAA4BF2343DDB040225B5EF2E9C3"><enum>(B)</enum><text>$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.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H6157AE571EF6497EA0FED466223BA4EB"><enum>(c)</enum><header>Recapture of credit for failure To sequester</header><text>Section 48B is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H895C2DCF4EC84ABAB39D2509B08CCF00" style="OLC"> <subsection id="HF159E84DE2334EFF9F6931B8537F2970"><enum>(f)</enum><header>Recapture of credit for failure To sequester</header><text display-inline="yes-display-inline">The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain the separation and sequestration requirements for such project under subsection (d)(1).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HD45C37D5533C4C4C9E2B6DA76C8F9CE4"><enum>(d)</enum><header>Selection priorities</header><text>Section 48B(d) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H884BC6AEC02343F1AD6280D34CA69469" style="OLC"> <paragraph id="H3418D15D376C4AFAAACD6BC3B9FBC3C5"><enum>(4)</enum><header>Selection priorities</header><text display-inline="yes-display-inline">In determining which qualifying gasification projects to certify under this section, the Secretary shall—</text> <subparagraph id="HE3E1C2F9169541F186DAF43F548EEC17"><enum>(A)</enum><text>give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions, and</text> </subparagraph><subparagraph id="H98C17916C670486ABDFB0349FE544933"><enum>(B)</enum><text>give high priority to applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H646808280CED432682F5467492B480B1"><enum>(e)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to credits described in section 48B(d)(1)(B) of the Internal Revenue Code of 1986 which are allocated or reallocated after the date of the enactment of this Act.</text> </subsection></section><section display-inline="no-display-inline" id="H82CA0FE775FF4A1087A57C92E5C0021" section-type="subsequent-section"><enum>563.</enum><header>Temporary increase in coal excise tax</header><text display-inline="no-display-inline">Paragraph (2) of section 4121(e) is amended—</text> <paragraph id="H0228552995FB4A9FA117F642FC36385F"><enum>(1)</enum><text>by striking <quote>January 1, 2014</quote> in subparagraph (A) and inserting <quote>December 31, 2018</quote>, and</text> </paragraph><paragraph id="HDC1C59760AA94C40B52FAC494CF1D299"><enum>(2)</enum><text>by striking <quote>January 1 after 1981</quote> in subparagraph (B) and inserting <quote>December 31 after 2007</quote>.</text> </paragraph></section><section id="H5122D553440943DBAFCCFC08D6806730"><enum>564.</enum><header>Special rules for refund of the coal excise tax to certain coal producers and exporters</header> <subsection id="HA896BEDEFF9346998D00A0F200E19697"><enum>(a)</enum><header>Refund</header> <paragraph id="H30DF5C5C1261451BA020F5728BCEFD17"><enum>(1)</enum><header>Coal producers</header> <subparagraph id="H22D3094333124CF59DACFFCD5E2183B"><enum>(A)</enum><header>In general</header><text>Notwithstanding subsections (a)(1) and (c) of section 6416 and <external-xref legal-doc="usc" parsable-cite="usc/26/6511">section 6511</external-xref> of the Internal Revenue Code of 1986, if—</text> <clause id="H619D2E4A35DE430DB5BFBB5D5E451069"><enum>(i)</enum><text>a coal producer establishes that such coal producer, or a party related to such coal producer, exported coal produced by such coal producer to a foreign country or shipped coal produced by such coal producer to a possession of the United States, or caused such coal to be exported or shipped, the export or shipment of which was other than through an exporter who meets the requirements of paragraph (2),</text> </clause><clause id="H1447408C8661466AAEE1D51B9EE38DBD"><enum>(ii)</enum><text>such coal producer filed an excise tax return on or after October 1, 1990, and on or before the date of the enactment of this Act, and</text> </clause><clause id="H40CC9318C1984A0894CFB6879BDFF848"><enum>(iii)</enum><text>such coal producer files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act,</text> </clause><continuation-text continuation-text-level="subparagraph">then the Secretary shall pay to such coal producer an amount equal to the tax paid under section 4121 of such Code on such coal exported or shipped by the coal producer or a party related to such coal producer, or caused by the coal producer or a party related to such coal producer to be exported or shipped.</continuation-text></subparagraph><subparagraph id="HB5D9699C52B54555886929E75002A77D"><enum>(B)</enum><header>Special rules for certain taxpayers</header><text>For purposes of this section—</text> <clause id="H053866CF867042C7BD42035080B8E132"><enum>(i)</enum><header>In general</header><text>If a coal producer or a party related to a coal producer has received a judgment described in clause (iii), such coal producer shall be deemed to have established the export of coal to a foreign country or shipment of coal to a possession of the United States under subparagraph (A)(i).</text> </clause><clause id="HC4758108124D4E7FA65C7002706927B7"><enum>(ii)</enum><header>Amount of payment</header><text>If a taxpayer described in clause (i) is entitled to a payment under subparagraph (A), the amount of such payment shall be reduced by any amount paid pursuant to the judgment described in clause (iii).</text> </clause><clause id="HE2209287091F4248811837BCD6A16F62"><enum>(iii)</enum><header>Judgment described</header><text>A judgment is described in this subparagraph if such judgment—</text> <subclause id="HC9460D9DA6094B50956209E245999263"><enum>(I)</enum><text>is made by a court of competent jurisdiction within the United States,</text> </subclause><subclause id="HAB525897DA924E6EBD932386D43853A7"><enum>(II)</enum><text>relates to the constitutionality of any tax paid on exported coal under section 4121 of the Internal Revenue Code of 1986, and</text> </subclause><subclause id="HD547D36E92B34BBD987D4D55ADDCB9F"><enum>(III)</enum><text>is in favor of the coal producer or the party related to the coal producer.</text> </subclause></clause></subparagraph></paragraph><paragraph id="H3FE6611B9772477493003C870575D037"><enum>(2)</enum><header>Exporters</header><text>Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the Internal Revenue Code of 1986, and a judgment described in paragraph (1)(B)(iii) of this subsection, if—</text> <subparagraph id="H6A479086ABC84329863DAA681C9CFF04"><enum>(A)</enum><text>an exporter establishes that such exporter exported coal to a foreign country or shipped coal to a possession of the United States, or caused such coal to be so exported or shipped,</text> </subparagraph><subparagraph id="H3BCDDD7A926E41F0BD84FA2D23445598"><enum>(B)</enum><text>such exporter filed a tax return on or after October 1, 1990, and on or before the date of the enactment of this Act, and</text> </subparagraph><subparagraph id="HA41FB4491ACA4F8CA6773D004E5F04A5"><enum>(C)</enum><text>such exporter files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act,</text> </subparagraph><continuation-text continuation-text-level="paragraph">then the Secretary shall pay to such exporter an amount equal to $0.825 per ton of such coal exported by the exporter or caused to be exported or shipped, or caused to be exported or shipped, by the exporter.</continuation-text></paragraph></subsection><subsection id="H36FEB19598B84AEE851CD2BE17CC7C33"><enum>(b)</enum><header>Limitations</header><text>Subsection (a) shall not apply with respect to exported coal if a settlement with the Federal Government has been made with and accepted by, the coal producer, a party related to such coal producer, or the exporter, of such coal, as of the date that the claim is filed under this section with respect to such exported coal. For purposes of this subsection, the term <term>settlement with the Federal Government</term> shall not include any settlement or stipulation entered into as of the date of the enactment of this Act, the terms of which contemplate a judgment concerning which any party has reserved the right to file an appeal, or has filed an appeal.</text> </subsection><subsection id="H97CB32B1C1EE40E3BAD4C53639B9B44C"><enum>(c)</enum><header>Subsequent refund prohibited</header><text>No refund shall be made under this section to the extent that a credit or refund of such tax on such exported or shipped coal has been paid to any person.</text> </subsection><subsection id="HDD5CC0EBF37847FD95A3D54D8E62DA8"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="HAA9F36A4E8B444DA8748B48B381F3F00"><enum>(1)</enum><header>Coal producer</header><text>The term <term>coal producer</term> means the person in whom is vested ownership of the coal immediately after the coal is severed from the ground, without regard to the existence of any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. The term includes any person who extracts coal from coal waste refuse piles or from the silt waste product which results from the wet washing (or similar processing) of coal.</text> </paragraph><paragraph id="H326393FA225A4B0DA450CC4D6F0050B8"><enum>(2)</enum><header>Exporter</header><text>The term <term>exporter</term> means a person, other than a coal producer, who does not have a contract, fee arrangement, or any other agreement with a producer or seller of such coal to export or ship such coal to a third party on behalf of the producer or seller of such coal and—</text> <subparagraph id="H424636372DFC413DA28DFAE706137E92"><enum>(A)</enum><text>is indicated in the shipper’s export declaration or other documentation as the exporter of record, or</text> </subparagraph><subparagraph id="H9A2E9134E5CC41ECBB8F407DDE49BF80"><enum>(B)</enum><text>actually exported such coal to a foreign country or shipped such coal to a possession of the United States, or caused such coal to be so exported or shipped.</text> </subparagraph></paragraph><paragraph id="H97963E8D73644A69BB86E58EA8B2774"><enum>(3)</enum><header>Related party</header><text>The term <term>a party related to such coal producer</term> means a person who—</text> <subparagraph id="H0E19A651AEBA422AB355BDD1D8B7EB28"><enum>(A)</enum><text>is related to such coal producer through any degree of common management, stock ownership, or voting control,</text> </subparagraph><subparagraph id="H7536CBFCDC6B4CF8B9623585A885D0A3"><enum>(B)</enum><text>is related (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/144">section 144(a)(3)</external-xref> of the Internal Revenue Code of 1986) to such coal producer, or</text> </subparagraph><subparagraph id="H8B7A013505B249FDA4832BDD435E000"><enum>(C)</enum><text>has a contract, fee arrangement, or any other agreement with such coal producer to sell such coal to a third party on behalf of such coal producer.</text> </subparagraph></paragraph><paragraph id="H2C286914DBA14C57964B32CEF4C05E"><enum>(4)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Treasury or the Secretary's designee.</text> </paragraph></subsection><subsection id="H2952D35B346C40C0A8C2D3F4F8001FFA"><enum>(e)</enum><header>Timing of refund</header><text>With respect to any claim for refund filed pursuant to this section, the Secretary shall determine whether the requirements of this section are met not later than 180 days after such claim is filed. If the Secretary determines that the requirements of this section are met, the claim for refund shall be paid not later than 180 days after the Secretary makes such determination.</text> </subsection><subsection id="H877F7306162A4780A0CAF75C613D99C7"><enum>(f)</enum><header>Interest</header><text>Any refund paid pursuant to this section shall be paid by the Secretary with interest from the date of overpayment determined by using the overpayment rate and method under <external-xref legal-doc="usc" parsable-cite="usc/26/6621">section 6621</external-xref> of the Internal Revenue Code of 1986.</text> </subsection><subsection id="H58E68C3817DA43089054E19894B711B6"><enum>(g)</enum><header>Denial of double benefit</header><text>The payment under subsection (a) with respect to any coal shall not exceed—</text> <paragraph id="H0256650F09E34D298DF08CF3E20111B"><enum>(1)</enum><text>in the case of a payment to a coal producer, the amount of tax paid under section 4121 of the Internal Revenue Code of 1986 with respect to such coal by such coal producer or a party related to such coal producer, and</text> </paragraph><paragraph id="H8E27C5F746C044E78E5EACC7A1A079BD"><enum>(2)</enum><text>in the case of a payment to an exporter, an amount equal to $0.825 per ton with respect to such coal exported by the exporter or caused to be exported by the exporter.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H21B491EF8F5048E2BA1CC72EFFECA3FC"><enum>(h)</enum><header display-inline="yes-display-inline">Application of section</header><text display-inline="yes-display-inline">This section applies only to claims on coal exported or shipped on or after October 1, 1990, through the date of the enactment of this Act.</text> </subsection><subsection id="H85A02B22345B4CB88445E47B65C799AD"><enum>(i)</enum><header>Standing not conferred</header> <paragraph id="HCA792F6AEA0D40B9AF370073FAA76CE7"><enum>(1)</enum><header>Exporters</header><text>With respect to exporters, this section shall not confer standing upon an exporter to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by a coal producer of any Federal or State tax, fee, or royalty paid by the coal producer.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD4747AD33E4E4CBCB25937E973CE4FA3"><enum>(2)</enum><header>Coal producers</header><text>With respect to coal producers, this section shall not confer standing upon a coal producer to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by an exporter of any Federal or State tax, fee, or royalty paid by the producer and alleged to have been passed on to an exporter.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="HFA43406AA4334A99B83200B23F92686D" section-type="subsequent-section"><enum>565.</enum><header>Carbon audit of the tax code</header> <subsection id="H5217B076E04343538DE9ADDE6B359161"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall enter into an agreement with the National Academy of Sciences to undertake a comprehensive review of the Internal Revenue Code of 1986 to identify the types of and specific tax provisions that have the largest effects on carbon and other greenhouse gas emissions and to estimate the magnitude of those effects.</text> </subsection><subsection id="HA367A95774D84A8F8F18605E61E6024F"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 2 years after the date of enactment of this Act, the National Academy of Sciences shall submit to Congress a report containing the results of study authorized under this section.</text> </subsection><subsection id="HD4DBEC4123BD413600BAC87789FBFB6"><enum>(c)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $1,500,000 for the period of fiscal years 2008 and 2009.</text> </subsection></section></subpart><subpart id="HD25577289ED94B6B888429793344A139"><enum>C</enum><header>Energy Conservation and Efficiency</header> <section id="HB4E795E8D7B541A3A03562A8F9752471"><enum>571.</enum><header>Qualified energy conservation bonds</header> <subsection id="H1823297D1BF646E587014449004C009D"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart I of part IV of subchapter A of chapter 1, as amended by this Act, is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="H6F497106BD7A498F9B22C15668B94556" style="OLC"> <section display-inline="no-display-inline" id="HF2C7E1F98AE949FD92DD46CEF091FEF3" section-type="subsequent-section"><enum>54D.</enum><header>Qualified energy conservation bonds</header> <subsection id="H311B5364C39543C8966C8F12411FCC72"><enum>(a)</enum><header>Qualified energy conservation bond</header><text>For purposes of this subchapter, the term <term>qualified energy conservation bond</term> means any bond issued as part of an issue if—</text> <paragraph display-inline="no-display-inline" id="HC3E8BDE6B0F9410383CB005B44919D68"><enum>(1)</enum><text>100 percent of the available project proceeds of such issue are to be used for one or more qualified conservation purposes,</text> </paragraph><paragraph id="H430EE634908C4D809CD054CC4FFB3B58"><enum>(2)</enum><text>the bond is issued by a State or local government, and</text> </paragraph><paragraph id="H04FD29FBB3894C06A4809247C22DE2CF"><enum>(3)</enum><text>the issuer designates such bond for purposes of this section.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H5D94352EA5BA4885A2BAF37F83056C9F"><enum>(b)</enum><header>Reduced credit amount</header><text>The annual credit determined under section 54A(b) with respect to any qualified energy conservation bond shall be 70 percent of the amount so determined without regard to this subsection.</text> </subsection><subsection display-inline="no-display-inline" id="HAB88D2D6B52842A4BD191350601EA7E0"><enum>(c)</enum><header>Limitation on amount of bonds designated</header><text>The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated to such issuer under subsection (e).</text> </subsection><subsection id="H9561836BBF954BDF9453C5F7854F04B"><enum>(d)</enum><header>National limitation on amount of bonds designated</header><text>There is a national qualified energy conservation bond limitation of $3,000,000,000.</text> </subsection><subsection id="H965C8D22ED8C4C22BAAFF93296BD6B53"><enum>(e)</enum><header>Allocations</header> <paragraph id="H731D226DE28F479D82B07FA67EC2FE56"><enum>(1)</enum><header>In general</header><text>The limitation applicable under subsection (d) shall be allocated by the Secretary among the States in proportion to the population of the States.</text> </paragraph><paragraph id="HBDA3449BF21445679442ED5265825071"><enum>(2)</enum><header>Allocations to largest local governments</header> <subparagraph id="HB0A796F6491647A9851DF389E00FB94"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any State in which there is a large local government, each such local government shall be allocated a portion of such State’s allocation which bears the same ratio to the State’s allocation (determined without regard to this subparagraph) as the population of such large local government bears to the population of such State.</text> </subparagraph><subparagraph id="HE658CF5BBE3A4AB89F3B1F0500AD9032"><enum>(B)</enum><header>Allocation of unused limitation to State</header><text>The amount allocated under this subsection to a large local government may be reallocated by such local government to the State in which such local government is located.</text> </subparagraph><subparagraph id="H6B3BE5E8E64C4D9CAED8DBAB43DFF69"><enum>(C)</enum><header>Large local government</header><text>For purposes of this section, the term <term>large local government</term> means any municipality or county if such municipality or county has a population of 100,000 or more.</text> </subparagraph></paragraph><paragraph id="H836AAD22BF2C4B299547E04FA15B16"><enum>(3)</enum><header>Allocation to issuers; restriction on private activity bonds</header><text>Any allocation under this subsection to a State or large local government shall be allocated by such State or large local government to issuers within the State in a manner that results in not less than 70 percent of the allocation to such State or large local government being used to designate bonds which are not private activity bonds.</text> </paragraph></subsection><subsection id="HBC28AB9FA8724BA58C5433910913FB1E"><enum>(f)</enum><header>Qualified conservation purpose</header><text>For purposes of this section—</text> <paragraph id="HF62718C78AAE42C8839F38ACF1D5C575"><enum>(1)</enum><header>In general</header><text>The term <term>qualified conservation purpose</term> means any of the following:</text> <subparagraph id="H42EBABBEB3C5472DBCB736BA30E8F27"><enum>(A)</enum><text display-inline="yes-display-inline">Capital expenditures incurred for purposes of—</text> <clause id="HCDBC9AA2B46A47F69473E11025E2F32C"><enum>(i)</enum><text>reducing energy consumption in publicly owned buildings by at least 20 percent,</text> </clause><clause id="HFF073154CFC44BC189E7CEDE095B8F7D"><enum>(ii)</enum><text>implementing green community programs,</text> </clause><clause id="HF88BED98A83C481FB19FB3007128F33C"><enum>(iii)</enum><text>rural development involving the production of electricity from renewable energy resources, or</text> </clause><clause id="HBCE9D7B4856A4BE2B7E69ED27F44DFB0"><enum>(iv)</enum><text>any qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and without regard to any placed in service date).</text> </clause></subparagraph><subparagraph id="HD7406FDA550F4923A113791821868DF1"><enum>(B)</enum><text>Expenditures with respect to research facilities, and research grants, to support research in—</text> <clause id="HBE2A70AECD2A440383C561D98ED3A5BE"><enum>(i)</enum><text>development of cellulosic ethanol or other nonfossil fuels,</text> </clause><clause id="HC6EDD169E52F4998A5211B1C0975CF12"><enum>(ii)</enum><text>technologies for the capture and sequestration of carbon dioxide produced through the use of fossil fuels,</text> </clause><clause id="HA7A4D0FB061E49C6AFA0CB53CC9F1D52"><enum>(iii)</enum><text>increasing the efficiency of existing technologies for producing nonfossil fuels,</text> </clause><clause id="HACC8F5DD0E244C4487F3B65480BA0327"><enum>(iv)</enum><text>automobile battery technologies and other technologies to reduce fossil fuel consumption in transportation, or</text> </clause><clause id="HE9DD4A08C7D747A18B39B65FC1CDE5EF"><enum>(v)</enum><text>technologies to reduce energy use in buildings.</text> </clause></subparagraph><subparagraph id="H5B69ABC05D5843678BA6C2B51E4B38"><enum>(C)</enum><text>Mass commuting facilities and related facilities that reduce the consumption of energy, including expenditures to reduce pollution from vehicles used for mass commuting.</text> </subparagraph><subparagraph id="H2E7F48EDC0254BFEBA213DAC4D3DCABC"><enum>(D)</enum><text>Demonstration projects designed to promote the commercialization of—</text> <clause id="H2B7FB0297EF44C4F9636C972FD696C36"><enum>(i)</enum><text>green building technology,</text> </clause><clause id="H16807F0C67C64D2F8B339710FBE6F187"><enum>(ii)</enum><text>conversion of agricultural waste for use in the production of fuel or otherwise,</text> </clause><clause id="HD0DA64E8900644D6BC1D9E51B8F402E9"><enum>(iii)</enum><text>advanced battery manufacturing technologies,</text> </clause><clause id="H56145C0B7A574E799FB601D9A46058EF"><enum>(iv)</enum><text>technologies to reduce peak use of electricity, or</text> </clause><clause id="H7E505A0031E04222991CF2674D517688"><enum>(v)</enum><text>technologies for the capture and sequestration of carbon dioxide emitted from combusting fossil fuels in order to produce electricity.</text> </clause></subparagraph><subparagraph id="HD02B4748C9504F41A94F00F059E2AC00"><enum>(E)</enum><text>Public education campaigns to promote energy efficiency.</text> </subparagraph></paragraph><paragraph id="H86F07D8343684F31B925585C49376902"><enum>(2)</enum><header>Special rules for private activity bonds</header><text>For purposes of this section, in the case of any private activity bond, the term <term>qualified conservation purposes</term> shall not include any expenditure which is not a capital expenditure.</text> </paragraph></subsection><subsection id="HA1201865423E4D2596CA20EF9683F47"><enum>(g)</enum><header>Population</header> <paragraph id="HADA9FC8B7BD6471B9C602CA4A9AF1F7B"><enum>(1)</enum><header>In general</header><text>The population of any State or local government shall be determined for purposes of this section as provided in section 146(j) for the calendar year which includes the date of the enactment of this section.</text> </paragraph><paragraph id="H0C834A1713F440D08660B89243196CF"><enum>(2)</enum><header>Special rule for counties</header><text>In determining the population of any county for purposes of this section, any population of such county which is taken into account in determining the population of any municipality which is a large local government shall not be taken into account in determining the population of such county.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H8D45E400DB3B480BAB19CBB3B388563E"><enum>(h)</enum><header>Application to Indian tribal governments</header><text>An Indian tribal government shall be treated for purposes of this section in the same manner as a large local government, except that—</text> <paragraph id="HF074C7F7BF834528A9B370FEB6D46D52"><enum>(1)</enum><text>an Indian tribal government shall be treated for purposes of subsection (e) as located within a State to the extent of so much of the population of such government as resides within such State, and</text> </paragraph><paragraph id="H3F5436E9660F460E9E56168C537B9832"><enum>(2)</enum><text>any bond issued by an Indian tribal government shall be treated as a qualified energy conservation bond only if issued as part of an issue the available project proceeds of which are used for purposes for which such Indian tribal government could issue bonds to which section 103(a) applies.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="H7648CF3D59664DF3A2C701C700A1BAA2"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H0ADBB65C0EAB4D958CB28B14C41D4116"><enum>(1)</enum><text>Paragraph (1) of section 54A(d), as amended by section 806, is amended by striking <quote>or</quote> at the end of subparagraph (A), by adding <quote>or</quote> at the end of subparagraph (B), and by inserting after subparagraph (B) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H51D4635DB38C43D500C73CCB5BBC539C" style="OLC"> <subparagraph id="H72AE1B7902E1455DAF05BD4650724303"><enum>(C)</enum><text>a qualified energy conservation bond,</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H651F693ECADE4AD395BA008DEF155892"><enum>(2)</enum><text>Subparagraph (C) of section 54A(d)(2), as amended by section 806, is amended by striking <quote>and</quote> at the end of clause (i), by striking the period at the end of clause (ii) and inserting <quote>and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H0CAE0E5E3EF84690A4B7CA1BF528855" style="OLC"> <clause id="H1A0A7100E3204166A51F18744BEB4542"><enum>(iii)</enum><text>in the case of a qualified energy conservation bond, a purpose specified in section 54D(a)(1).</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H2CE5249765544F3DAEC893C200D57EFE"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart I of part IV of subchapter A of chapter 1, as amended by section 806, is amended by adding at the end the following new item:</text> <quoted-block display-inline="no-display-inline" id="H2B595D2EAF9C4AF89DB7F94BE9A8B0A" style="OLC"> <toc container-level="quoted-block-container" idref="H72FE9BE8A713458BB56E0064D01450C0" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry idref="H72FE9BE8A713458BB56E0064D01450C0" level="section">Sec. 54D. Qualified energy conservation bonds.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H6526A463043C47EA00B7BD0573E9B899"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.</text> </subsection></section><section display-inline="no-display-inline" id="H65A0D7B078664D65B3F6BFDCDDED9F00" section-type="subsequent-section"><enum>572.</enum><header>Credit for nonbusiness energy property</header> <subsection commented="no" id="H0A3A3104BE694A7DA6B91365A13F479D"><enum>(a)</enum><header>Extension of credit</header><text display-inline="yes-display-inline">Section 25C(g) is amended by striking <quote>December 31, 2007</quote> and inserting <quote>December 31, 2008</quote>.</text> </subsection><subsection commented="no" id="H431BBDFE79414BB1A943FB60042CE1D0"><enum>(b)</enum><header>Qualified biomass fuel property</header> <paragraph commented="no" id="H29AC0E0AC4F24C73BF029D45B286201C"><enum>(1)</enum><header>In general</header><text>Section 25C(d)(3) is amended—</text> <subparagraph commented="no" id="H005B45BFFE4F4605ACBA7BB07867DE4E"><enum>(A)</enum><text>by striking <quote>and</quote> at the end of subparagraph (D),</text> </subparagraph><subparagraph commented="no" id="H810E0BB59C344ED600C6F974EE765E2E"><enum>(B)</enum><text>by striking the period at the end of subparagraph (E) and inserting <quote>, and</quote>, and</text> </subparagraph><subparagraph commented="no" id="H6B9DF2F69E9141648E3CAEEF6B8B40EF"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block act-name="" id="H264968039EA847D59C9C099F12BB8639" style="OLC"> <subparagraph commented="no" id="HE8BCED198C74408E84354FA928D0EC4B"><enum>(F)</enum><text>a stove which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and which has a thermal efficiency rating of at least 75 percent.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" id="H9DF0B080B70147AE8E8320B9B43ECFA"><enum>(2)</enum><header>Biomass fuel</header><text>Section 25C(d) is amended by adding at the end the following new paragraph:</text> <quoted-block act-name="" id="H079DD7AF1768436B84BE90453176D35C" style="OLC"> <paragraph commented="no" id="HE987D98374614E369DDE42BFFE12543F"><enum>(6)</enum><header>Biomass fuel</header><text>The term <term>biomass fuel</term> means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HF7120B390523461485B7F6FAB328C1AB"><enum>(c)</enum><header>Coordination with credit for qualified geothermal heat Pump property expenditures</header> <paragraph id="H958BF9FCA3E44268BF580870393E1EFF"><enum>(1)</enum><header>In general</header><text>Paragraph (3) of section 25C(d), as amended by subsection (b), is amended by striking subparagraph (C) and by redesignating subparagraphs (D), (E), and (F) as subparagraphs (C), (D), and (E), respectively.</text> </paragraph><paragraph id="HD73A9767C997458F83C7061676D416B1"><enum>(2)</enum><header>Conforming amendment</header><text>Subparagraph (C) of section 25C(d)(2) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H9E250C79A4994911A8642D3C6E6E1BB" style="OLC"> <subparagraph id="H1F1C1A78E53A4253BCB349235B47789"><enum>(C)</enum><header>Requirements and standards for air conditioners and heat pumps</header><text display-inline="yes-display-inline">The standards and requirements prescribed by the Secretary under subparagraph (B) with respect to the energy efficiency ratio (EER) for central air conditioners and electric heat pumps—</text> <clause id="HD7FD23B4B64D44ACBEFE4E32C602271B"><enum>(i)</enum><text>shall require measurements to be based on published data which is tested by manufacturers at 95 degrees Fahrenheit, and</text> </clause><clause id="H4E764C6A97BA4101A58E45C419EEF100"><enum>(ii)</enum><text>may be based on the certified data of the Air Conditioning and Refrigeration Institute that are prepared in partnership with the Consortium for Energy Efficiency.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HA6546469C6DF41E9A49D5DB2B1C979A6"><enum>(d)</enum><header>Effective date</header><text>The amendments made this section shall apply to expenditures made after December 31, 2007.</text> </subsection></section><section display-inline="no-display-inline" id="HB60ED9DCAED8494996DFA70325CC49BC" section-type="subsequent-section"><enum>573.</enum><header>Energy efficient commercial buildings deduction</header><text display-inline="no-display-inline">Subsection (h) of section 179D is amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2013</quote>.</text> </section><section display-inline="no-display-inline" id="H5277C0A1D4DD4BC1BB4720E15D266A" section-type="subsequent-section"><enum>574.</enum><header>Modifications of energy efficient appliance credit for appliances produced after 2007</header> <subsection id="HD8100F503F60462BAD50931E2D18F24F"><enum>(a)</enum><header>In general</header><text>Subsection (b) of section 45M is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H91C39B865406498100A0882DE2100377" style="OLC"> <subsection id="H7285DCBBFD554F90B4D54F1FF3C74C64"><enum>(b)</enum><header>Applicable amount</header><text>For purposes of subsection (a)—</text> <paragraph id="HFC7B06AA8DCA4E728898E529509D2DB9"><enum>(1)</enum><header>Dishwashers</header><text>The applicable amount is—</text> <subparagraph id="H0E8561D5F27442EB838B11BBB57F1058"><enum>(A)</enum><text>$45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no more than 324 kilowatt hours per year and 5.8 gallons per cycle, and</text> </subparagraph><subparagraph id="H58B40263A34640FB8C3C8B01F1A0B06D"><enum>(B)</enum><text>$75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings).</text> </subparagraph></paragraph><paragraph id="H1C1C239752A94D49A67671621CB0E935"><enum>(2)</enum><header>Clothes washers</header><text>The applicable amount is—</text> <subparagraph id="H189E19C558B146C3A50001FA0901BC00"><enum>(A)</enum><text>$75 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor,</text> </subparagraph><subparagraph id="H5FE1FC5B413943829258DCD5BCBC39"><enum>(B)</enum><text>$125 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water consumption factor,</text> </subparagraph><subparagraph id="HE4758BB7C4D74BC487BDC91B5C2F5793"><enum>(C)</enum><text>$150 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0 water consumption factor, and</text> </subparagraph><subparagraph id="HA3344A697949497F92C7BC1CA13F008B"><enum>(D)</enum><text>$250 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5 water consumption factor.</text> </subparagraph></paragraph><paragraph id="H8B127794457D4EEC9557272B2BDF188F"><enum>(3)</enum><header>Refrigerators</header><text>The applicable amount is—</text> <subparagraph id="H5F3EA491D0C640B9831571BDC876C280"><enum>(A)</enum><text>$50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours per year than the 2001 energy conservation standards,</text> </subparagraph><subparagraph id="H7825FBA7494B44289EC176CF2869823E"><enum>(B)</enum><text>$75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation standards,</text> </subparagraph><subparagraph id="HFE22AB71A9E14CC6A6854DBA003C05B9"><enum>(C)</enum><text>$100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010, and consumes at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation standards, and</text> </subparagraph><subparagraph id="HC5BC23512C3A4F28BA8F6FF48931C6D"><enum>(D)</enum><text>$200 in the case of a refrigerator manufactured in calendar year 2008, 2009, or 2010 and which consumes at least 30 percent less energy than the 2001 energy conservation standards.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H6F52796597E847A68978795FB746505B"><enum>(b)</enum><header>Eligible production</header> <paragraph id="HC7CD0EB080CA48A396C7BF7CD76EB73B"><enum>(1)</enum><header>Similar treatment for all appliances</header><text>Subsection (c) of section 45M is amended—</text> <subparagraph id="HFA225B3D59104C568D68C367BD86B9D"><enum>(A)</enum><text>by striking paragraph (2),</text> </subparagraph><subparagraph id="H57971CC139564E7FBEC3B10084438506"><enum>(B)</enum><text>by striking <quote>(1) <header-in-text level="paragraph" style="OLC">In general</header-in-text></quote> and all that follows through <quote>the eligible</quote> and inserting <quote>The eligible</quote>,</text> </subparagraph><subparagraph id="HF0A97276C2D947CF0082EA459A3297F"><enum>(C)</enum><text>by moving the text of such subsection in line with the subsection heading, and</text> </subparagraph><subparagraph id="HA225CC56EA44453799B5228014BB9BB7"><enum>(D)</enum><text>by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and by moving such paragraphs 2 ems to the left.</text> </subparagraph></paragraph><paragraph id="H224F7BAE01CD4D4DBC8FE20471562FE6"><enum>(2)</enum><header>Modification of base period</header><text>Paragraph (2) of section 45M(c), as amended by paragraph (1), is amended by striking <quote>3-calendar year</quote> and inserting <quote>2-calendar year</quote>.</text> </paragraph></subsection><subsection id="HB437D5CDA2224B2698D897C3DECB7424"><enum>(c)</enum><header>Types of energy efficient appliances</header><text>Subsection (d) of section 45M (defining types of energy efficient appliances) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HD4ADD80E46CC445EB257A0AB98BE2436" style="OLC"> <subsection id="H348843382B5F4556A208E6ED3108B1AF"><enum>(d)</enum><header>Types of energy efficient appliance</header><text display-inline="yes-display-inline">For purposes of this section, the types of energy efficient appliances are—</text> <paragraph id="H920BDF78078B4A2200DAF4E6825CFBC"><enum>(1)</enum><text>dishwashers described in subsection (b)(1),</text> </paragraph><paragraph id="HFA68811696BA47A7933EFB578E00755B"><enum>(2)</enum><text>clothes washers described in subsection (b)(2), and</text> </paragraph><paragraph id="H186B7D08B0684F74BF80F52300A98DD5"><enum>(3)</enum><text>refrigerators described in subsection (b)(3).</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H5F13DEE070414637851D58838547BAD4"><enum>(d)</enum><header>Aggregate credit amount allowed</header> <paragraph id="HFCB7504E268B4ACC87BE1D68E9EA7155"><enum>(1)</enum><header>Increase in limit</header><text>Paragraph (1) of section 45M(e) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H8111F40A62E1490E9618F2D56D624106" style="OLC"> <paragraph id="H78D33487DBBD40D299428EE2BA51903E"><enum>(1)</enum><header>Aggregate credit amount allowed</header><text display-inline="yes-display-inline">The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $75,000,000 reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for all prior taxable years beginning after December 31, 2007.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H1147587C76B94C55A8CAA495E8E52BB5"><enum>(2)</enum><header>Exception for certain refrigerator and clothes washers</header><text>Paragraph (2) of section 45M(e) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H47370FD8F8B748028B600057499D1711" style="OLC"> <paragraph id="H95096E1A329B476AADAA56AEAC812B50"><enum>(2)</enum><header>Amount allowed for certain refrigerators and clothes washers</header><text display-inline="yes-display-inline">Refrigerators described in subsection (b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be taken into account under paragraph (1).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HDDFEB246DCA7454B9E4974BA7703AF88"><enum>(e)</enum><header>Qualified energy efficient appliances</header> <paragraph id="H72A9B75599CA49CFBBA4A1D1DB1194A8"><enum>(1)</enum><header>In general</header><text>Paragraph (1) of section 45M(f) (defining qualified energy efficient appliance) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H9FEF10E6386A4FD5968E43000056E00" style="OLC"> <paragraph id="HB2D7D4CCDECB4BC09DCD6CA600EFB7A6"><enum>(1)</enum><header>Qualified energy efficient appliance</header><text display-inline="yes-display-inline">The term <term>qualified energy efficient appliance</term> means—</text> <subparagraph id="HFEC5CE8B627F4949B5003F3004A58B9"><enum>(A)</enum><text display-inline="yes-display-inline">any dishwasher described in subsection (b)(1),</text> </subparagraph><subparagraph id="H2C1D02FA4F8A405DB8281C4C1620DED"><enum>(B)</enum><text>any clothes washer described in subsection (b)(2), and</text> </subparagraph><subparagraph id="HABF51D1AAAA741D38B9BF3C467A70891"><enum>(C)</enum><text>any refrigerator described in subsection (b)(3).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H397BA1AFAD2F486BAFC1513E42245FA4"><enum>(2)</enum><header>Clothes washer</header><text>Section 45M(f)(3) is amended by inserting <quote>commercial</quote> before <quote>residential</quote> the second place it appears.</text> </paragraph><paragraph id="H410B236C5B6B41838B98EF62E7227EDC"><enum>(3)</enum><header>Top-loading clothes washer</header><text>Subsection (f) of section 45M is amended by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and by inserting after paragraph (3) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H872FDCD6D5744A04989301C47715B679" style="OLC"> <paragraph id="HA3E1607BB8924583A575A3CAF53273C0"><enum>(4)</enum><header>Top-loading clothes washer</header><text display-inline="yes-display-inline">The term <quote>top-loading clothes washer</quote> means a clothes washer which has the clothes container compartment access located on the top of the machine and which operates on a vertical axis.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H3693A89E09E847A198AD8C57A9B1A91"><enum>(4)</enum><header>Replacement of energy factor</header><text>Section 45M(f)(6), as redesignated by paragraph (3), is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H21D867DF5EA54F31B92F6E2C003F3018" style="OLC"> <paragraph id="HCEDDB750006F4823B62FEEE0DE143EAB"><enum>(6)</enum><header>Modified energy factor</header><text display-inline="yes-display-inline">The term <term>modified energy factor</term> means the modified energy factor established by the Department of Energy for compliance with the Federal energy conservation standard.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HBB9DFC004E3040968F293C5916CA0907"><enum>(5)</enum><header>Gallons per cycle; water consumption factor</header><text>Section 45M(f), as amended by paragraph (3), is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H77F65E3FF9104CE8A5CE4330B1C96F10" style="OLC"> <paragraph id="HD53735D0382042B8B67DF71C40366CF2"><enum>(9)</enum><header>Gallons per cycle</header><text display-inline="yes-display-inline">The term <term>gallons per cycle</term> means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a dishwasher.</text> </paragraph><paragraph id="H2FB73F0FE29142F8BDD22F2EA8CE4E"><enum>(10)</enum><header>Water consumption factor</header><text display-inline="yes-display-inline">The term <term>water consumption factor</term> means, with respect to a clothes washer, the quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H7AF1C0AA9F7346ACB283F23FD7053E62"><enum>(f)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to appliances produced after December 31, 2007.</text> </subsection></section><section display-inline="no-display-inline" id="HBBA2D47998A94325903CA6DD89B86C44" section-type="subsequent-section"><enum>575.</enum><header>Accelerated recovery period for depreciation of smart meters and smart grid systems</header> <subsection id="H984A51A91C6C47C7AE771B8EA6A94FFA"><enum>(a)</enum><header>In general</header><text>Section 168(e)(3)(D) is amended by striking <quote>and</quote> at the end of clause (i), by striking the period at the end of clause (ii) and inserting a comma, and by inserting after clause (ii) the following new clauses:</text> <quoted-block id="HA85D28C6BE934F6A8E59607C060200EC" style="OLC"> <clause id="H762FA01B24A941079E5C513348726CE4"><enum>(iii)</enum><text>any qualified smart electric meter, and</text> </clause><clause id="H5BF38325E8884812B532BE58C7726840"><enum>(iv)</enum><text>any qualified smart electric grid system.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H45D9AC7936AC4F7DA5D6E9CC0083F442"><enum>(b)</enum><header>Definitions</header><text>Section 168(i) is amended by inserting at the end the following new paragraph:</text> <quoted-block id="H892324ED84334EE0879C1230D7FA412E" style="OLC"> <paragraph display-inline="no-display-inline" id="HD87656D03CF04E49AC1F217843475742"><enum>(18)</enum><header>Qualified smart electric meters</header> <subparagraph id="H531A95F9B8954EE4B53812F527B28D41"><enum>(A)</enum><header>In general</header><text>The term <term>qualified smart electric meter</term> means any smart electric meter which is placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services.</text> </subparagraph><subparagraph id="H8477E2AA09A74628B7597EB6AAB47E68"><enum>(B)</enum><header>Smart electric meter</header><text>For purposes of subparagraph (A), the term <term>smart electric meter</term> means any time-based meter and related communication equipment which is capable of being used by the taxpayer as part of a system that—</text> <clause id="H2F49A94C9AA04FEDB2DCD10099165823"><enum>(i)</enum><text>measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day,</text> </clause><clause id="H4434D5518E18451E9578ECFB5FE6AB62"><enum>(ii)</enum><text>provides for the exchange of information between supplier or provider and the customer’s electric meter in support of time-based rates or other forms of demand response,</text> </clause><clause id="H456F6DC940114F9D87E1734ED6719D39"><enum>(iii)</enum><text>provides data to such supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, and</text> </clause><clause id="H9EB242D8ABAB46FBAFE4AEB4D0E25B5F"><enum>(iv)</enum><text>provides net metering.</text> </clause></subparagraph></paragraph><paragraph id="HD82BB27634C040C59EE5F54C3016B63B"><enum>(19)</enum><header>Qualified smart electric grid systems</header> <subparagraph id="H2AE200BBDAA243F48D3921E2B450B7C"><enum>(A)</enum><header>In general</header><text>The term <quote>qualified smart electric grid system</quote> means any smart grid property used as part of a system for electric distribution grid communications, monitoring, and management placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services.</text> </subparagraph><subparagraph id="HED3B28C5382448C7827366F44D92F2EE"><enum>(B)</enum><header>Smart grid property</header><text>For the purposes of subparagraph (A), the term <quote>smart grid property</quote> means electronics and related equipment that is capable of—</text> <clause id="HC9FA03E49D874064A6B442ECB81F8493"><enum>(i)</enum><text>sensing, collecting, and monitoring data of or from all portions of a utility’s electric distribution grid,</text> </clause><clause id="H5E5431617C43457AB2DAAE4326CD557B"><enum>(ii)</enum><text>providing real-time, two-way communications to monitor or manage such grid, and</text> </clause><clause id="H8564ED5CB4FE4E6AA06C19248D16B085"><enum>(iii)</enum><text>providing real time analysis of and event prediction based upon collected data that can be used to improve electric distribution system reliability, quality, and performance.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H44FA60AB25F8462892B65595DB92FB51"><enum>(c)</enum><header>Continued application of 150 percent declining balance method</header><text>Paragraph (2) of section 168(b) is amended by striking <quote>or</quote> at the end of subparagraph (B), by redesignating subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H0C1BA10D4E7E45BAACE9BDF7645BBA19" style="OLC"> <subparagraph id="HC0A582B25D2F40259700E4F078F80641"><enum>(C)</enum><text display-inline="yes-display-inline">any property (other than property described in paragraph (3)) which is a qualified smart electric meter or qualified smart electric grid system, or</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H619D0A649F374076BD6276D3E9F71687"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><section id="H23B303A3047A48B4AD68B5101B9584E3"><enum>576.</enum><header>Qualified green building and sustainable design projects</header> <subsection id="H8943942125664AB2AAC65B7B705323B6"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (8) of section 142(l) is amended by striking <quote>September 30, 2009</quote> and inserting <quote>September 30, 2012</quote>.</text> </subsection><subsection id="H54BB9573DF1948F0A01E20B747CDD01E"><enum>(b)</enum><header>Treatment of current refunding bonds</header><text>Paragraph (9) of section 142(l) is amended by striking <quote>October 1, 2009</quote> and inserting <quote>October 1, 2012</quote>.</text> </subsection><subsection id="H30EC2912B7F94B589DB041CBF3C4F0B4"><enum>(c)</enum><header>Accountability</header><text>The second sentence of section 701(d) of the American Jobs Creation Act of 2004 is amended by striking <quote>issuance,</quote> and inserting <quote>issuance of the last issue with respect to such project,</quote>.</text> </subsection></section></subpart><subpart id="H4B0C98E0693044D4BE76FCF581493F66"><enum>D</enum><header>Geothermal Incentives</header> <section display-inline="no-display-inline" id="H6A5D4851162148038E6354A918FC9F41" section-type="subsequent-section"><enum>581.</enum><header>Energy credit for geothermal heat pump systems</header> <subsection id="H46000C50B744448E00C5A8833CAC240"><enum>(a)</enum><header>In general</header><text>Subparagraph (A) of section 48(a)(3) of the Internal Revenue Code of 1986 is amended by striking <quote>or</quote> at the end of clause (iii), by inserting <quote>or</quote> at the end of clause (iv), and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H81D0F6D8EA4C44D3931800A74D178763" style="OLC"> <clause id="HB833D5F98F094FBA9335CCC01DDD69"><enum>(v)</enum><text>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,</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HFA2CFF5370064D7A81C42E68879D0204"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><section display-inline="no-display-inline" id="H818B1BA62409487DB0C03BF578FCE41C" section-type="subsequent-section"><enum>582.</enum><header>3-year accelerated depreciation period for geothermal heat pump systems</header> <subsection id="HF2F5F98BA4C6465093F0C7E2068CD160"><enum>(a)</enum><header>In general</header><text>Subparagraph (A) of section 168(e)(3) of the Internal Revenue Code of 1986 is amended by striking <quote>and</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H661FBBBA7C0E45CEB5F87C05E19FB990" style="OLC"> <clause id="HB8C637A53DBC43F0A9FBD9008801005D"><enum>(iv)</enum><text>any property which is described in clause (v) of section 48(a)(3)(A).</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HEAD82E70512D4205BD891C0509684934"><enum>(b)</enum><header>Conforming amendment</header><text>Subclause (I) of section 168(e)(3)(B)(vi) of such Code is amended by inserting <quote>clause (i), (ii), (iii), or (iv) of</quote> before <quote>subparagraph (A)</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HB3F181B311D044F9A8A9E5351958AF22"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section></subpart></part></subtitle><enum>VI</enum><header>INCREASED DOMESTIC PRODUCTION</header> <subtitle id="H0C73068F4F014BDDA914819D7CE61E74"><enum>A</enum><header>Outer Continental Shelf</header> <section display-inline="no-display-inline" id="H4AB2220E75D346D1B3F971E2B3C9CAA2"><enum>601.</enum><header>Prohibition on leasing</header> <subsection id="H81126FEF9FCB43ED99E92798E7AA22AB"><enum>(a)</enum><header>Prohibition</header><text display-inline="yes-display-inline">The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) notwithstanding, the Secretary shall not take nor authorize any action related to oil and gas preleasing or leasing of any area of the Outer Continental Shelf that was not available for oil and gas leasing as of July 1, 2008, unless that action is expressly authorized by this subtitle or a statute enacted by Congress after the date of enactment of this Act.</text> </subsection><subsection id="HE6513D1F5081415596E400736BDB13FD"><enum>(b)</enum><header>Treatment of areas in Gulf of Mexico</header><text display-inline="yes-display-inline">For purposes of this subtitle, such action with respect to an area referred to in section 104(a) of the Gulf of Mexico Energy Security Act of 2006 (title I of division C of <external-xref legal-doc="public-law" parsable-cite="pl/109/432">Public Law 109–432</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/42/1331">42 U.S.C. 1331</external-xref> 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).</text> </subsection></section><section id="H1A699717DAFD4B0A82233317FAA347BA"><enum>602.</enum><header>Opening of certain areas to oil and gas leasing</header> <subsection id="HF9543CAB4B544EADBE53685386959B06"><enum>(a)</enum><header>Leasing authorized</header><text>The Secretary may offer for oil and gas leasing, preleasing, or other related activities, in accordance with this section and the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>) and subject to subsection (b) of this section, section 603 of this Act, and section 307 of the Coastal Zone Management Act of 1972 (<external-xref legal-doc="usc" parsable-cite="usc/16/1456">16 U.S.C. 1456</external-xref>), any area—</text> <paragraph id="HA9B37D3A68984C5A85ABBCFE474BACB1"><enum>(1)</enum><text>that is in any Outer Continental Shelf Planning Area in the Atlantic Ocean or Pacific Ocean that is located farther than 50 miles from the coastline; and</text> </paragraph><paragraph id="H939E4280FFBB4FC3A2F99B36D28362ED"><enum>(2)</enum><text>that was not otherwise available for oil and gas leasing, preleasing, and other related activities as of July 1, 2008.</text> </paragraph></subsection><subsection id="H5C3A2350A88E47C2898FD6BCB8F9E6D"><enum>(b)</enum><header>Inclusion in leasing program required</header><text>An area may be offered for lease under this section only if it has been included in an Outer Continental Shelf leasing program approved by the Secretary in accordance with section 18 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1344">43 U.S.C. 1344</external-xref>).</text> </subsection><subsection id="H2CFB12A8C86544EF822030FBB98D123C"><enum>(c)</enum><header>Requirement To conduct lease sales</header><text>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.</text> </subsection></section><section id="HEED2605C94BA4D758C81AAD718FAF583"><enum>603.</enum><header>Coastal State roles and responsibilities</header> <subsection id="H8FA6B95E6DB94E8C87D3C3BEFD590040"><enum>(a)</enum><header>State approval of certain leasing required</header><text>The Secretary may not conduct any oil and gas leasing or preleasing activity in any area made available for oil and gas leasing by section 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.</text> </subsection><subsection id="HD961304BF2E44CCBABA09753144E8880"><enum>(b)</enum><header>Consultation with adjacent and neighboring States</header> <paragraph id="HF5C7FDEE3D3444D7B95176F600F5003D"><enum>(1)</enum><header>In general</header><text>In addition to the consultation provided for under section 19 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1345">43 U.S.C. 1345</external-xref>), 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—</text> <subparagraph id="H1F75DB961799476F872B68071F66D0A8"><enum>(A)</enum><text>the size, timing, or location of a proposed lease sale; or</text> </subparagraph><subparagraph id="H20BA1744792C4EF6B03BD53D8CBF7FF"><enum>(B)</enum><text>a proposed development and production plan.</text> </subparagraph></paragraph><paragraph id="HADC7C2E2087C4208BD88D1D15833C0F"><enum>(2)</enum><header>Requirements</header><text>Subsections (b), (c), and (d) of section 19 of the Outer Continental Shelf Lands Act (43 U.S.C. 1345) shall apply to the recommendations provided for in paragraph (1).</text> </paragraph></subsection></section><section id="HCE249B63118C4CDE90BECB4531223E00"><enum>604.</enum><header>Protection of the environment and conservation of the natural resources of the Outer Continental Shelf</header><text display-inline="no-display-inline">The Secretary—</text> <paragraph id="HECDC8A9776454AB496E4CF0AE5440DD"><enum>(1)</enum><text display-inline="yes-display-inline">shall ensure that any activity under this subtitle is carried out in a manner that provides for the protection of the coastal environment, marine environment, and human environment of State coastal zones and the Outer Continental Shelf; and</text> </paragraph><paragraph id="H007D447A7D004E908252A8C03386F3C6"><enum>(2)</enum><text>shall review all Federal regulations that are otherwise applicable to activities authorized by this subtitle to ensure environmentally sound oil and gas operations on the Outer Continental Shelf.</text> </paragraph></section><section id="HB26D8D86602B4B08AFD53E425BC985F0"><enum>605.</enum><header>Limitations</header> <subsection id="H780E7AFB6E5540388529E59EB132A4DC"><enum>(a)</enum><header>Compliance with memorandum</header><text>Any oil and gas leasing of areas of the Outer Continental Shelf shall be conducted in accordance with the document entitled <quote>Memorandum of Agreement between the Department of Defense and the Department of the Interior on Mutual Concerns On The Outer Continental Shelf</quote> and dated July 2, 1983, and such revisions thereto as may be agreed to by the Secretary of Defense and the Secretary of the Interior; except that no such revisions may be made prior to January 21, 2009.</text> </subsection><subsection id="HB9AED81EFB7D4E94B1EB3559DE2BCEAC"><enum>(b)</enum><header>National security</header><text>Notwithstanding subsection (a), the United States reserves the right to designate by and through the Secretary of Defense, with the approval of the President, national defense areas on the Outer Continental Shelf pursuant to section 12(d) of the Outer Continental Shelf Lands Act (43 U.S.C. 1341(d)).</text> </subsection></section><section id="H723955FFB4274E2AB03340A8EDF21E00"><enum>606.</enum><header>Prohibition on leasing in certain Federal protected areas</header> <subsection id="HEA4C9328BA8A4E729FF2C09FC8EF566E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this or any other Federal law, no lease or other authorization may be issued by the Federal Government that authorizes exploration, development, or production of oil or natural gas in—</text> <paragraph id="H8316FC2918394CC786CC23E800AC795F"><enum>(1)</enum><text>any marine national monument or national marine sanctuary; or</text> </paragraph><paragraph id="H8F038AB933B54309B6DE233CEF9ECEC8"><enum>(2)</enum><text>the fishing grounds known as Georges Bank in the waters of the United States, which is one of the largest and historically important fishing grounds of the United States.</text> </paragraph></subsection><subsection id="HEDACFF05F89344759BCBEA9359C90344"><enum>(b)</enum><header>Identification of coordinates of Georges Bank</header><text display-inline="yes-display-inline">The Secretary of Commerce, after publication of public notice and an opportunity for public comment, shall identify the specific coordinates that delineate Georges Bank in the waters of the United States for purposes of subsection (a).</text> </subsection></section><section id="H2CD3FD532B0F4C1AA127C8FFC341FA89"><enum>607.</enum><header>No effect on applicable law</header><text display-inline="no-display-inline">Except as otherwise specifically provided in this subtitle, nothing in this subtitle waives or modifies any applicable environmental or other law.</text> </section><section id="HFAFCF48929AB4D8FB768ACE10145E14C"><enum>608.</enum><header>Buy American requirements</header> <subsection id="HD3A52D14D70E439181B66700B310FC3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">It is the intent of Congress that this Act, among other things, result in a healthy and growing American industrial, manufacturing, transportation, and service sector employing the vast talents of America’s workforce to assist in the development of energy from domestic sources. Moreover, the Congress intends to monitor the deployment of personnel and material onshore and offshore to encourage the development of American technology and manufacturing to enable United States workers to benefit from this Act by good jobs and careers, as well as the establishment of important industrial facilities to support expanded access to American resources.</text> </subsection><subsection id="HFA9B040FC3C743FB84A062FE8B54054D"><enum>(b)</enum><header>Safeguard for Extraordinary Ability</header><text display-inline="yes-display-inline">Section 30(a) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1356">43 U.S.C. 1356(a)</external-xref>) is amended in the matter preceding paragraph (1) by striking <quote>regulations which</quote> and inserting <quote>regulations that shall be supplemental and complimentary with and under no circumstances a substitution for the provisions of the Constitution and laws of the United States extended to the subsoil and seabed of the outer Continental Shelf pursuant to section 4 of this Act, except insofar as such laws would otherwise apply to individuals who have extraordinary ability in the sciences, arts, education, or business, which has been demonstrated by sustained national or international acclaim, and that</quote>.</text> </subsection></section><section id="HA2620D867DE64A8AA18B7B7179B645F1"><enum>609.</enum><header>Small, woman-owned, and minority-owned businesses</header><text display-inline="no-display-inline">Section 8 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H89AE536CEED54A16858624F676046B5C" style="OLC"> <subsection id="HFF9BA884D6594A64009C80A84F548729"><enum>(q)</enum><header>Opportunities for leasing</header><text display-inline="yes-display-inline">The Secretary shall establish goals to ensure equal opportunity to bid on offshore leases for qualified small, women-owned, and minority-owned exploration and production companies and may implement, where appropriate, outreach programs for qualified historically underutilized exploration and production companies to participate in the bidding process for offshore leases.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H1B913E552B5C4F039053950047C852D7"><enum>610.</enum><header>OCS joint permitting offices</header> <subsection id="H07776C51C2B74EF9BED5DC24A84B03F"><enum>(a)</enum><header>Establishment</header><text>The Secretary of the Interior (referred to in this section as the <quote>Secretary</quote>) shall establish Federal OCS Joint Regional Permitting Offices (referred to in this section as the <quote>Regional Permitting Offices</quote>) in accordance with this section.</text> </subsection><subsection id="H30371195E1804EDC96E2C41E6B00D61C"><enum>(b)</enum><header>Memorandum of understanding</header><text>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—</text> <paragraph id="HE04F53EF768B440999D9E3C0E4963E24"><enum>(1)</enum><text>the Secretary of Commerce;</text> </paragraph><paragraph id="H1141825D874C4512934738EAFC42A1D"><enum>(2)</enum><text>the Administrator of the Environmental Protection Agency; and</text> </paragraph><paragraph id="H7B29B5FDF2794D71A9DF5CFB28535285"><enum>(3)</enum><text>the Chief of Engineers.</text> </paragraph></subsection><subsection id="H019890BC1B5A45C2B61D15FE1E3408D7"><enum>(c)</enum><header>Designation of qualified staff</header> <paragraph id="HB90373583F0F4740BC65EF3E9EBB61C7"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph id="H79EB3A923A3E498B9F121E2D2B81A398"><enum>(A)</enum><text>the consultations and the preparation of biological opinions under section 7 of the Endangered Species Act of 1973 (16 U.S.C.1536);</text> </subparagraph><subparagraph id="H06201A2C597F4E45BF93C870BC35B8A"><enum>(B)</enum><text>permits under section 404 of Federal Water Pollution Control Act (<external-xref legal-doc="usc" parsable-cite="usc/33/1344">33 U.S.C. 1344</external-xref>);</text> </subparagraph><subparagraph id="H8492EB0BBA4D4913AD93468FC1486601"><enum>(C)</enum><text>regulatory matters under the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7401">42 U.S.C. 7401 et seq.</external-xref>);</text> </subparagraph><subparagraph id="H087CA7377DB44557BE07299E07E99A"><enum>(D)</enum><text>the consultations and preparation of documents under the Marine Mammal Protection Act of 1972 (16 U.S.C. 1361 et seq.); and</text> </subparagraph><subparagraph id="H2037F5AC53C2440DBB3C46A94DA244C3"><enum>(E)</enum><text>the preparation of analyses under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).</text> </subparagraph></paragraph><paragraph id="H683801ECD02B4654813C00F0D525F481"><enum>(2)</enum><header>Duties</header><text>Each employee assigned under paragraph (1) shall—</text> <subparagraph id="H20E063370C5B4C27B9E0017E6CB96B"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="H7B9F012AFAB34584B907D506AAFCF55"><enum>(B)</enum><text>be responsible for all issues relating to the jurisdiction of the home office or agency of the employee; and</text> </subparagraph><subparagraph id="HF58378EA18F74D45A073EACEA5307B03"><enum>(C)</enum><text>participate as part of the team of personnel working on proposed energy projects, planning, and environmental analyses.</text> </subparagraph></paragraph></subsection><subsection id="H08F2D3239BD049A6A0959602C0022C8"><enum>(d)</enum><header>Regional permitting offices</header><text>The following Minerals Management Service Regional Headquarters shall serve as the Regional Permitting Offices:</text> <paragraph id="HD01ADC4817544ABA84CE2D8D7D8EC954"><enum>(1)</enum><text>Anchorage, Alaska.</text> </paragraph><paragraph id="H37762E88C43445AD93641CBF9DD90400"><enum>(2)</enum><text>New Orleans, Louisiana.</text> </paragraph><paragraph id="HF3F3636E60D246D79200961F450090D6"><enum>(3)</enum><text>MMS Pacific Regional Headquarters.</text> </paragraph><paragraph id="H08264A1F5C144F8493A9923053714E14"><enum>(4)</enum><text>MMS Atlantic Regional Headquarters.</text> </paragraph></subsection><subsection id="H978744BD1BA24BA6B91621B6E4EBA149"><enum>(e)</enum><header>Reports</header><text>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.</text> </subsection><subsection id="H1BB4EC8B0A3F43F3886F9B2D66D3B5A6"><enum>(f)</enum><header>Transfer of fund</header><text>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—</text> <paragraph id="H131C3FFF71884548B9A1319C00C09BA0"><enum>(1)</enum><text>the United States Fish and Wildlife Service;</text> </paragraph><paragraph id="H3C945DF1E569492B8027FC25887DE29E"><enum>(2)</enum><text>the Bureau of Indian Affairs;</text> </paragraph><paragraph id="H4335A3062A4D486EA38D67EDBFBD1104"><enum>(3)</enum><text>the Environmental Protection Agency;</text> </paragraph><paragraph id="HE89AD92EBD6545C98665BD5DFEE54BB"><enum>(4)</enum><text>the National Oceanic and Atmospheric Administration; and</text> </paragraph><paragraph id="H3449279F36E34595B81B3B36DD5CFEFF"><enum>(5)</enum><text>the Corps of Engineers.</text> </paragraph></subsection></section><section id="H6415A5CCCE954C56943E50B45D7543E6"><enum>611.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text> <paragraph display-inline="no-display-inline" id="H02B9E40DA44A4CC192E7BA008736C1D2"><enum>(1)</enum><header>Adjacent State</header><text>The term <quote>adjacent State</quote> means, with respect to any program, plan, lease sale, leased tract, or other activity, proposed, conducted, or approved in accordance with the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>), the State, the laws of which are declared pursuant to section 4(a)(2) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1333">43 U.S.C. 1333(a)(2)</external-xref>) to be the law of the United States for the portion of the Outer Continental Shelf on which the program, plan, lease sale, leased tract, or activity is, or is proposed to be, conducted.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H74F16C6A64264E8AB0957F06DD5CB9B"><enum>(2)</enum><header>coastal environment</header><text display-inline="yes-display-inline">The term <quote>coastal environment</quote> has the meaning given that term in the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>).</text> </paragraph><paragraph commented="no" id="H5ADDA8FF478C415F9FFC5100FD008DB"><enum>(3)</enum><header>coastal zone</header><text display-inline="yes-display-inline">The term <quote>coastal zone</quote> has the meaning given that term in the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>).</text> </paragraph><paragraph commented="no" id="HACB33749E1694DF6864BA1737E03B5F"><enum>(4)</enum><header>Coastline</header><text display-inline="yes-display-inline">The term <quote>coastline</quote> has the meaning given the term <quote>coast line</quote> under section 2 of the Submerged Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1301">43 U.S.C. 1301</external-xref>).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1C09D596303D4DE6B6BA963D33ED11C6"><enum>(5)</enum><header>human environment</header><text display-inline="yes-display-inline">The term <quote>human environment</quote> has the meaning given that term in the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>).</text> </paragraph><paragraph commented="no" id="H6B4A327CB4744F4AAFDDAA6B1B2CE7A8"><enum>(6)</enum><header>marine environment</header><text>The term <quote>marine environment</quote> has the meaning given that term in the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).</text> </paragraph><paragraph id="H77BB86B5BF014FC3AF7303BF04DC3201"><enum>(7)</enum><header>Outer Continental Shelf</header><text>The term <quote>Outer Continental Shelf</quote> has the meaning given the term <quote>outer Continental Shelf</quote> under section 2 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331</external-xref>).</text> </paragraph><paragraph id="H55D77114AED24203AECB867EFF7465C8"><enum>(8)</enum><header>Seaward lateral boundary</header><text display-inline="yes-display-inline">The term <quote>seaward lateral boundary</quote> means a boundary drawn by the Minerals Management Service in the Federal Register notice of January 3, 2006 (vol 71, no. 1).</text> </paragraph><paragraph id="HCFD245086DED4C5F9EA5386D4CF40542"><enum>(9)</enum><header>Secretary</header><text>The term <quote>Secretary</quote> means the Secretary of the Interior.</text> </paragraph></section></subtitle><subtitle id="H0941A3287F374FBC00CBAAE3CA00CE34"><enum>B</enum><header>Drill Responsibly in Leased Lands</header> <section id="H5FB9F15960A54223BE6B804F59D8ADE1"><enum>621.</enum><header>Issuance of new leases</header> <subsection id="HB4826A3242244385BE304795A465D934"><enum>(a)</enum><header>In general</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/33/226">33 U.S.C. 226</external-xref>), the Mineral Leasing Act for Acquired Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/30/351">30 U.S.C. 351 et seq.</external-xref>), the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>), or any other law authorizing the issuance of oil and gas leases on Federal lands or submerged lands, unless—</text> <paragraph id="H9B05F46E296341C184C4C76F702C0435"><enum>(1)</enum><text>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</text> </paragraph><paragraph id="HFEC30E182D784DAABB04D10032715E9E"><enum>(2)</enum><text>the person has relinquished all ownership interest in all Federal oil and gas leases under which oil and gas is not being diligently developed.</text> </paragraph></subsection><subsection id="H47391663B6B64F1799474DE2EB7CD375"><enum>(b)</enum><header>Diligent development</header><text>The Secretary shall issue regulations within 180 days after the date of enactment of this Act that establish what constitutes <quote>diligently developing</quote> for purposes of this Act.</text> </subsection><subsection id="HE2BF79647C7B49779CC2D3218D9EEB61"><enum>(c)</enum><header>Failure To comply with requirements</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/30/1719">30 U.S.C. 1719</external-xref>).</text> </subsection><subsection id="H0D85A6D4A459497F8C22486707599682"><enum>(d)</enum><header>Lessee defined</header><text>In this section the term <term>lessee</term>—</text> <paragraph id="H0C8AEB5BD20F4702B39EC4BCA181F813"><enum>(1)</enum><text>includes any person or other entity that controls, is controlled by, or is in or under common control with, a lessee; and</text> </paragraph><paragraph id="HB5FC5CC93D1446E8B571B766C811FF74"><enum>(2)</enum><text>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.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="HBEFAA4F3754A42E4898BE500A59E20B6" section-type="subsequent-section"><enum>622.</enum><header>Fair return on production of Federal oil and gas resources</header> <subsection id="HA7FAAB4E364041EFB547CD05CD888E50"><enum>(a)</enum><header>Royalty payments</header><text>The Secretary of the Interior shall take all steps necessary to ensure that lessees under leases for exploration, development, and production of oil and natural gas on Federal lands, including leases under the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/181">30 U.S.C. 181 et seq.</external-xref>), the Mineral Leasing Act for Acquired Lands (<external-xref legal-doc="usc" parsable-cite="usc/30/351">30 U.S.C. 351 et seq.</external-xref>), the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/30/1331">30 U.S.C. 1331 et seq.</external-xref>), and all other mineral leasing laws, are making prompt, transparent, and accurate royalty payments under such leases.</text> </subsection><subsection id="HC2E08FBA00F64DD19375F8CA8DD8798E"><enum>(b)</enum><header>Recommendations for legislative action</header><text>In order to facilitate implementation of subsection (a), the Secretary of the Interior shall, within 180 days after the date of 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.</text> </subsection></section></subtitle><subtitle id="H79E59E409E1B49D299ADFD5E13834C4C"><enum>C</enum><header>Coal Innovation Direct Loan Program</header> <section id="H8E22BF8B7D5443E08F00A152FBCE794B"><enum>631.</enum><header>Coal innovation direct loan program</header> <subsection id="H0A36380267504406B89663D8CECB300"><enum>(a)</enum><header>In general</header><text>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:</text> <quoted-block display-inline="no-display-inline" id="HBB090A1859AA4EF29084A369E157A486" style="OLC"> <section id="H14A3A83BE21B4B0E91A5255E4CF976A0"><enum>3105.</enum><header>Coal innovation direct loan program</header> <subsection id="H033FBD342E014D4ABEAD09CF05D6F2FF"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HA946DB0C0BA14E5B9290598BAF2F991F"><enum>(1)</enum><header>Carbon capture</header><text>The term <quote>carbon capture</quote> 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.</text> </paragraph><paragraph id="H35AB6514213C4838ACAF15F5BA324B00"><enum>(2)</enum><header>Coal-to-liquid product</header><text>The term <quote>coal-to-liquid product</quote> means a liquid fuel resulting from the conversion of a feedstock, as described in this section.</text> </paragraph><paragraph id="HEA119A84933C499FA1008E7EF300B42B"><enum>(3)</enum><header>Combustible end product</header><text>The term <quote>combustible end product</quote> means any product of a facility intended to be used as a combustible fuel.</text> </paragraph><paragraph id="HEC48099FC4E8408A8E416307A2DB435"><enum>(4)</enum><header>Conventional baseline emissions</header><text>The term <quote>conventional baseline emissions</quote> means—</text> <subparagraph id="H83D3D8412839469F8B6C6CEDFF00968B"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="H270496A90B5B4DE9B2B0C380A11D6ED0"><enum>(B)</enum><text>in the case of noncombustible products produced through an eligible project, the average lifecycle greenhouse gas emissions emitted by projects that—</text> <clause id="H2341A44D86794F1CBCD7A0AA43008C95"><enum>(i)</enum><text>are of comparable size; and</text> </clause><clause id="HC94BF3BBB29E47638879B0525BD79763"><enum>(ii)</enum><text>produce equivalent products using conventional feedstocks; and</text> </clause></subparagraph><subparagraph id="HAC47421ED657463597DC3EEACD6BA77D"><enum>(C)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="HCC83BC3B29AF4407899638393DD7124B"><enum>(5)</enum><header>Eligible project</header><text>The term <quote>eligible project</quote> means a project—</text> <subparagraph id="H8826E746A5204B19980110E3BB2E5400"><enum>(A)</enum><text>that employs gasification technology or another conversion process for feedstocks described in this section; and</text> </subparagraph><subparagraph id="HCA11B3D9DB754D57BEF542423160122E"><enum>(B)</enum><text>for which—</text> <clause id="H748F70E15A814D9C82CCC9832BD1485"><enum>(i)</enum><text>the annual lifecycle greenhouse gas emissions of the project are at least 20 percent lower than conventional baseline emissions;</text> </clause><clause id="H123B7DFBBE664C68A4956C6ED73F7EC5"><enum>(ii)</enum><text>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;</text> </clause><clause id="H19FB67249DBC427681FA3442B7CF4963"><enum>(iii)</enum><text>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—</text> <subclause id="H3F544F08E77C48899DDCAF0278561068"><enum>(I)</enum><text>represents the best available technology; and</text> </subclause><subclause id="HF4D1166EBD044F839717F87441F000AB"><enum>(II)</enum><text>achieves a reduction in carbon emissions that is not less than 75 percent; and</text> </subclause></clause><clause id="H370DC88B69B4469EAA9DF9F002EECCE"><enum>(iv)</enum><text>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.</text> </clause></subparagraph></paragraph><paragraph id="H38F312A957814E6EADFC2166F8D4C5B0"><enum>(6)</enum><header>Facility</header><text>The term <quote>facility</quote> means a facility at which the conversion of feedstocks to end products takes place.</text> </paragraph><paragraph id="HC4B05EB7505E4FD5ADFA5643AEEC9E"><enum>(7)</enum><header>Gasification technology</header><text>The term <quote>gasification technology</quote> 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.</text> </paragraph><paragraph id="HF91055B1E59B47F692DF24963DAFDF7E"><enum>(8)</enum><header>Greenhouse gas</header><text>The term <quote>greenhouse gas</quote> means any of—</text> <subparagraph id="H4EAD60E2075841BC988C3C507D00237E"><enum>(A)</enum><text>carbon dioxide;</text> </subparagraph><subparagraph id="H82CFFBBA1B694E778F4554010804E75B"><enum>(B)</enum><text>methane;</text> </subparagraph><subparagraph id="HE0558795F65345BC86018FB5F7DD538"><enum>(C)</enum><text>nitrous oxide;</text> </subparagraph><subparagraph id="HC0CC6C6611334B25B727319358A800C8"><enum>(D)</enum><text>hydrofluorocarbons;</text> </subparagraph><subparagraph id="HFF06718BC0BE43DEB96D0048E7BDAE00"><enum>(E)</enum><text>perfluorocarbons; and</text> </subparagraph><subparagraph id="H9124C617311848749138614E51501F00"><enum>(F)</enum><text>sulfur hexafluoride.</text> </subparagraph></paragraph><paragraph id="HCE808B4572CF4DA9BA42909EDD1B24FA"><enum>(9)</enum><header>Lifecycle greenhouse gas emissions</header><text>The term <quote>lifecycle greenhouse gas emissions</quote> 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—</text> <subparagraph id="H981AD84208D748E0A71D90B64FEF00D5"><enum>(A)</enum><text>any greenhouse gases captured at the facility and sequestered;</text> </subparagraph><subparagraph id="H2F442952423A4D82BB9EE350C4A52918"><enum>(B)</enum><text>the carbon content, expressed in units of carbon dioxide equivalent, of any feedstock that is renewable biomass; and</text> </subparagraph><subparagraph id="H0BEFB80273E744ACA2946FFF103250A7"><enum>(C)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H020EF72365444E9FBFDF853800705B68"><enum>(10)</enum><header>Long-term storage</header><text>The term <quote>long-term storage</quote> 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.</text> </paragraph><paragraph id="HFC0C65E2ADEF4D3491009F7814B6E73D"><enum>(11)</enum><header>Renewable biomass</header><text>The term <quote>renewable biomass</quote> has the definition given the term in section 102 of the Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007.</text> </paragraph><paragraph id="H8E39E9EE1587464687BE3CAF194F5622"><enum>(12)</enum><header>Sequestration</header><text>The term <quote>sequestration</quote> means the placement of carbon dioxide in a geological formation, including—</text> <subparagraph id="HAE415C106A3C44F800BFC8D8C251C265"><enum>(A)</enum><text>an operating oil and gas field;</text> </subparagraph><subparagraph id="HC79790BD00624985A9EBB8EF76988695"><enum>(B)</enum><text>coal bed methane recovery;</text> </subparagraph><subparagraph id="H27BEEF4CA4D94456A2F2962E9409CCF1"><enum>(C)</enum><text>a depleted oil and gas field;</text> </subparagraph><subparagraph id="H76B7C31D97224105A847095337778478"><enum>(D)</enum><text>an unmineable coal seam;</text> </subparagraph><subparagraph id="HE0276B36707B46ADB6009100E752FF21"><enum>(E)</enum><text>a deep saline formation; and</text> </subparagraph><subparagraph id="H7EE5DC44CCFD4632B305F68577C0008B"><enum>(F)</enum><text>a deep geological systems containing basalt formations.</text> </subparagraph></paragraph></subsection><subsection id="HEE49A5CA1A3743F49759307670465078"><enum>(b)</enum><header>Feed assistance program</header> <paragraph id="HBFD3918BECC142778B1407C31926EF00"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (3), and in accordance with section 988 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16352">42 U.S.C. 16352</external-xref>), 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.</text> </paragraph><paragraph id="H1DB7502B1B0D459488AB5661643FF5B"><enum>(2)</enum><header>Selection of eligible projects</header><text>The Secretary shall select eligible projects to receive grants under this section—</text> <subparagraph id="H0641204746624C64BA6100D75EDA6B8F"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="H47BDBC0B33F940808838D5008E33E0AD"><enum>(B)</enum><text>that, taken together, would—</text> <clause id="HAB594B739BEE40349C426E4BF440E663"><enum>(i)</enum><text>represent a variety of geographical regions;</text> </clause><clause id="H79DC5B6764BB443CA28ED4D63F1947B8"><enum>(ii)</enum><text>use a variety of feedstocks and types of coal; and</text> </clause><clause id="HEF189120964846C3B53300D419008BE9"><enum>(iii)</enum><text>to the extent consistent with achieving long-term storage, represent a variety of geological formations; and</text> </clause></subparagraph><subparagraph id="H062A798B45D34665BB8F84E23CD3BC03"><enum>(C)</enum><text>for which eligible projects, in the opinion of the Secretary—</text> <clause id="H158E6A4860D8469092AD24E7449D3CF9"><enum>(i)</enum><text>each award recipient is financially viable without the receipt of additional Federal funding associated with the proposed project;</text> </clause><clause id="H19C33715C5944E7AAF89DBF2276EC868"><enum>(ii)</enum><text>each recipient will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively;</text> </clause><clause id="H1ECEF126C5C642DEAF15DF3F1FFE49E1"><enum>(iii)</enum><text>a market exists for the products of the proposed project, as evidenced by contracts or written statements of intent from potential customers;</text> </clause><clause id="H1105ADFA56EC4B0E9E0029FE9BE9F03F"><enum>(iv)</enum><text>the project team of each recipient is competent in the construction and operation of the gasification technology proposed; and</text> </clause><clause id="H304B85763C4842DE840164FE005909E9"><enum>(v)</enum><text>each recipient has met such other criteria as may be established and published by the Secretary.</text> </clause></subparagraph></paragraph><paragraph id="H9B278E241E4B4AF091C6BC35D5785846"><enum>(3)</enum><header>Maximum amount of grants</header><text>In carrying out this subsection, the Secretary shall provide not more than—</text> <subparagraph id="HD23F2F583000486E00DC74B818D9896E"><enum>(A)</enum><text>$20,000,000 in grant funds for any eligible project; and</text> </subparagraph><subparagraph id="HB4089ADCAD7C46509D3FDE2B1BA0485F"><enum>(B)</enum><text>$200,000,000 in grant funds, in the aggregate, for all eligible projects.</text> </subparagraph></paragraph></subsection><subsection id="HF85D41BC498F4452A0ECEC543C93ABC5"><enum>(c)</enum><header>Direct loan program</header> <paragraph id="HC92A0AF3FDD64BC39F04F8A0C2CEE3BD"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H34301010B2FD4B81BA53A15E76BBCACC"><enum>(2)</enum><header>Application</header><text>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.</text> </paragraph><paragraph id="H484F71C147DF4072A5A81EE2DDD4002E"><enum>(3)</enum><header>Selection of eligible projects</header><text>The Secretary shall select eligible projects to receive loans under this section—</text> <subparagraph id="H5DCFE270692B46489F8640D868AFEA67"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="HA893D69E78FE44819F3D298BBD004157"><enum>(B)</enum><text>that, taken together, would—</text> <clause id="HF26B88F066DB4F3EBCBA54F9B8009D8C"><enum>(i)</enum><text>represent a variety of geographic regions;</text> </clause><clause id="H623C1D8664514B27991178FD983D7715"><enum>(ii)</enum><text>use a variety of types of feedstocks and coal; and</text> </clause><clause id="H0243314791AE4C098454F9DEB9D643E6"><enum>(iii)</enum><text>to the extent consistent with achieving long-term storage, represent a variety of geological formations; and</text> </clause></subparagraph><subparagraph id="H555B56A5899045D68BE48383E0048094"><enum>(C)</enum><text>for which eligible projects, in the opinion of the Secretary—</text> <clause id="HBCC96CDE8DD0446B9E53299C4EEC2D72"><enum>(i)</enum><text>each award recipient is financially viable without the receipt of additional Federal funding associated with the proposed project;</text> </clause><clause id="H97F2CD4AFDA34E0E00F3A660D54EF965"><enum>(ii)</enum><text>each recipient will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively;</text> </clause><clause id="H8E39C99BCE504E978639A61655DCA80"><enum>(iii)</enum><text>a market exists for the products of the proposed project, as evidenced by contracts or written statements of intent from potential customers;</text> </clause><clause id="HB5D443B3E7D74887851C19C6AFFA479C"><enum>(iv)</enum><text>the project team of each recipient is competent in the construction and operation of the gasification technology proposed; and</text> </clause><clause id="HAC258EFFFD36407CA760ED51F1848537"><enum>(v)</enum><text>each recipient has met such other criteria as may be established and published by the Secretary.</text> </clause></subparagraph></paragraph><paragraph id="HC64959749BA2430D9E286ECF7F5D9FAB"><enum>(4)</enum><header>Use of loan funds</header> <subparagraph id="HF0EDA5C0B7D740568E261828F714ACE5"><enum>(A)</enum><header>In general</header><text>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.</text> </subparagraph><subparagraph id="H53EF7745919F46E79700E7004161CFC5"><enum>(B)</enum><header>Total project cost</header><text>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.</text> </subparagraph></paragraph><paragraph id="H757DDFEC531B4DB48C85A54E3C8EE718"><enum>(5)</enum><header>Rates, terms, and repayment of loans</header><text>A loan provided under this section—</text> <subparagraph id="H6D937C04F92F4D559BF9EA6D691749E4"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="H698EAC470CF3496E975FB5FE003FBD33"><enum>(B)</enum><text>shall have a term equal to the lesser of—</text> <clause id="H17C3B7CA72BE4E4D9BBBE1732525CDA2"><enum>(i)</enum><text>the projected life, in years, of the eligible project to be carried out using funds from the loan, as determined by the Secretary; and</text> </clause><clause id="H34B5DAD9850B4FD791CE3FB0231E9700"><enum>(ii)</enum><text>25 years;</text> </clause></subparagraph><subparagraph id="H629416DC3EE74D0F89C5DF00C48D3EE7"><enum>(C)</enum><text>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</text> </subparagraph><subparagraph id="H044BCF765DC44F1D83C625D4C083FB8"><enum>(D)</enum><text>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)—</text> <clause id="H895A59C6FC2A42099E437E7061345C73"><enum>(i)</enum><text>to complete, maintain, operate, lease, or otherwise dispose of any property acquired pursuant to the guarantee or a related agreement; or</text> </clause><clause id="HC61DD90472F448EBAD32C9F8238C778"><enum>(ii)</enum><text>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.</text> </clause></subparagraph></paragraph><paragraph id="H33F648985F43498C968E778500B26652"><enum>(6)</enum><header>Methodology</header><text>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.</text> </paragraph></subsection><subsection id="H4322D190A6334646A21159D9513FDD7E"><enum>(d)</enum><header>Study of maintaining coal-to-liquid products in strategic petroleum reserve</header><text>Not later than 1 year after the date of enactment of this section, the Secretary and the Secretary of Defense shall—</text> <paragraph id="H53D53D28E30F4DB2A3A9761B0011F454"><enum>(1)</enum><text>conduct a study of the feasibility and suitability of maintaining coal-to-liquid products in the Strategic Petroleum Reserve; and</text> </paragraph><paragraph id="H07B9C0FA5A1040DFB37466EC05637DDC"><enum>(2)</enum><text>submit to the Committee on Energy and Natural Resources and the Committee on Armed Services of the Senate and the Committee on Energy and Commerce and the Committee on Armed Services of the House of Representatives a report describing the results of the study.</text> </paragraph></subsection><subsection id="H7FD207846B194D3AAAD15F0027003CB2"><enum>(e)</enum><header>Report on emissions of coal-to-liquid products used as transportation fuels</header> <paragraph id="HA2A9BBA802834A0AB96033732F2B188E"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph id="HE596DFCBAC81487FAF43A85EF4C90068"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="HCF64DDD45A03433A8336910871540055"><enum>(B)</enum><text>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</text> </subparagraph><subparagraph id="HE2AF0E2F0EC04971BA09A96B46A5A943"><enum>(C)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="HFFD595BB146B4A32B275E0CA32726CE3"><enum>(2)</enum><header>Guidance and technical support</header><text>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.</text> </paragraph><paragraph id="H1A9C2AEB0BC84FE4A937BBCD3D3FA6FB"><enum>(3)</enum><header>Requirements</header><text>The program described in paragraph (1)(A) shall take into consideration—</text> <subparagraph id="H4D3571BE06FE4E5B91465C6592320002"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="H2D44F1C25BA34F2AAADCFBE3234DE7F5"><enum>(B)</enum><text>the production costs associated with domestic production of those fuels and prices for consumers; and</text> </subparagraph><subparagraph id="HD987AE727147447B8D65E3CA7E411E7"><enum>(C)</enum><text>the overall greenhouse gas effects of substituting coal-derived fuels for crude oil-derived fuels.</text> </subparagraph></paragraph><paragraph id="H93DA1EB4EB484A40A92721F3E13493F5"><enum>(4)</enum><header>Reports</header><text>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—</text> <subparagraph id="HDFBBA160B00540F5AC567258B023BA05"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="HC83015D693714BD800F19F1C00EFB44"><enum>(B)</enum><text>not later than 1 year after the date of enactment of this section, a final report on actions taken to carry out this subsection.</text> </subparagraph></paragraph></subsection><subsection id="H6344FFF98566481AAE7D3FF8627B90B4"><enum>(f)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out this section.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H259DB16AC48B4B87BE2348E056BEEF90"><enum>(b)</enum><header>Conforming Amendment</header><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="HA6D7519B8569450092D3FDF2328BFE9" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 3105. Coal innovation direct loan program.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section></subtitle><subtitle id="H9B89775E3CDF46108495DB947584A31F"><enum>D</enum><header>Nuclear Power</header> <section id="HF71DF2E6E78E4BCBB01F1D8DB83B0050"><enum>641.</enum><header>Nuclear Regulatory Commission</header> <subsection id="H6583B086C7674176A075FA9C21951928"><enum>(a)</enum><text display-inline="yes-display-inline">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—</text> <paragraph id="H1B25D20B0AC24061A280E6471B2EC7B9"><enum>(1)</enum><text>expedite the processing of applications for new nuclear plants;</text> </paragraph><paragraph id="HB9FA8FA4A2BD4970855BF8487E2FD31D"><enum>(2)</enum><text>streamline the licensing process; and</text> </paragraph><paragraph id="H34574B491B7F4574A543A0E1BBA6D2C7"><enum>(3)</enum><text>provide additional safety oversight for current and new facilities.</text> </paragraph></subsection><subsection id="HC42E1C5C8C0B4379BE20455EBA11E97F"><enum>(b)</enum><text display-inline="yes-display-inline">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.</text> </subsection></section><section id="HE0969FD26C424603BB98B8004B745F02"><enum>642.</enum><header>Nuclear energy workforce</header><text display-inline="no-display-inline">Section 1101 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16411">42 U.S.C. 16411</external-xref>) is amended—</text> <paragraph id="H148530AC9BE84B4C80A2479C78009F82"><enum>(1)</enum><text>in subsection (b)(1)—</text> <subparagraph id="H05EE5FAECF4A4667823EF4EBCB28E6DD"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph id="HDBDFEBB722904FF8A9CE51B706A8AB00"><enum>(B)</enum><text>in subparagraph (B), by striking the period and inserting <quote>; and</quote>; and</text> </subparagraph><subparagraph id="HDEB1C885164F408C9F59130852005005"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block id="HA1AF4D5CED3B4B84AAF5D7874ECD52F" style="OLC"> <subparagraph id="H04B3E81B3B154E02B3082E1E2D54FFA6"><enum>(C)</enum><text>nuclear utility and nuclear energy product and service industries.</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H2A6BB554A4C849008EE2703743A22B32"><enum>(2)</enum><text>by redesignating subsection (d) as subsection (e); and</text> </paragraph><paragraph id="HA87447376F0A4B03949B9E6974276D5D"><enum>(3)</enum><text>by inserting after subsection (c) the following:</text> <quoted-block id="H609995F1B5484BABB4FE37CCBF2C6EDE" style="OLC"> <subsection id="HC228161CBC93421A8D6D9D94762CB179"><enum>(d)</enum><header>Workforce training</header> <paragraph id="H2B795F162CF748219694497929B7A1AE"><enum>(1)</enum><header>In general</header><text>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).</text> </paragraph><paragraph id="H6E37D0E3CBE24D6E97597ED83053AC27"><enum>(2)</enum><header>Consultation</header><text>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.</text> </paragraph><paragraph id="HBB4B42C808B84978813730613800005F"><enum>(3)</enum><header>Authorization of appropriations</header><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HDED1BF9FA0D441E785DC82C785715BF4"><enum>643.</enum><header>Interagency working group to promote domestic manufacturing base for nuclear components and equipment</header> <subsection id="H7F4229FF475E4B7D95BE0403A3632CDA"><enum>(a)</enum><header>Purposes</header><text>The purposes of this section are—</text> <paragraph id="HAD0E889D25424F0381F86ED11671A18D"><enum>(1)</enum><text>to increase the competitiveness of the United States nuclear energy products and services industries;</text> </paragraph><paragraph id="H74597434E8364A8AB908E1E4901300C0"><enum>(2)</enum><text>to identify the stimulus or incentives necessary to cause United States manufacturers of nuclear energy products to expand manufacturing capacity;</text> </paragraph><paragraph id="H2B633228EE6C404B98000501287B4B51"><enum>(3)</enum><text>to facilitate the export of United States nuclear energy products and services;</text> </paragraph><paragraph id="HDB3BA38E9341465A931933B27356DBF5"><enum>(4)</enum><text>to reduce the trade deficit of the United States through the export of United States nuclear energy products and services;</text> </paragraph><paragraph id="HF7878E2F860A4C9AB337D82D4D09DC1E"><enum>(5)</enum><text>to retain and create nuclear energy manufacturing and related service jobs in the United States;</text> </paragraph><paragraph id="H67234B35D86C49379888A868A812806F"><enum>(6)</enum><text>to encourage new manufacturing technologies to address industry challenges, such spent fuel recycling;</text> </paragraph><paragraph id="H0264D26B93C14310A129174953C48B2E"><enum>(7)</enum><text>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</text> </paragraph><paragraph id="H1533A943C05245B9ABCCD95F863E7E5B"><enum>(8)</enum><text>to authorize funds for increasing United States capacity to manufacture nuclear energy products and supply nuclear energy services.</text> </paragraph></subsection><subsection id="H817DCF6975774F618FB1EE2C3B7D8112"><enum>(b)</enum><header>Establishment</header> <paragraph id="H7EE3A83CA96D42C8ABDD4E074800D8B"><enum>(1)</enum><header>In general</header><text>There is established an interagency working group (referred to in this section as the <quote>Working Group</quote>) 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.</text> </paragraph><paragraph id="H2C454F950F9A4CC2B0B084C14C8E1DEA"><enum>(2)</enum><header>Composition</header><text>The Working Group shall be composed of—</text> <subparagraph id="H42BF15D368784764BAD08D77C812292B"><enum>(A)</enum><text>the Secretary of Energy (or a designee), who shall serve as Chairperson of the Working Group; and</text> </subparagraph><subparagraph id="H1868184F2BE546B5831941CBE29C262"><enum>(B)</enum><text>representatives of—</text> <clause id="H051F8F8871A24D8C97E8E0C433FA7652"><enum>(i)</enum><text>the Department of Energy;</text> </clause><clause id="H2D3566FBFEB243BAA12EFEC0FFCC72DD"><enum>(ii)</enum><text>the Department of Commerce;</text> </clause><clause id="H5A365D422B704F689951BC82EDA83D67"><enum>(iii)</enum><text>the Department of Defense;</text> </clause><clause id="H35FDD5D1EE41473E9C3D1C5914A60900"><enum>(iv)</enum><text>the Department of Treasury;</text> </clause><clause id="H6C5BDE3BB1E649E58766D8F93BF55C4E"><enum>(v)</enum><text>the Department of State;</text> </clause><clause id="HDE26543447AA4112B04F54D94CF1CF8B"><enum>(vi)</enum><text>the Environmental Protection Agency;</text> </clause><clause id="H238314E684D140F28FAA2686D086B69"><enum>(vii)</enum><text>the United States Agency for International Development;</text> </clause><clause id="H713268A1EE45403FA7A823FEE3330329"><enum>(viii)</enum><text>the Export-Import Bank of the United States;</text> </clause><clause id="HF6E228DF6C0649A4BA26BC35F045E7F8"><enum>(ix)</enum><text>the Trade and Development Agency;</text> </clause><clause id="H754BA4B4990447458CC42E99129445A7"><enum>(x)</enum><text>the Small Business Administration;</text> </clause><clause id="H25865A9D8BF0409BAC8D79C4323AEE"><enum>(xi)</enum><text>the Office of the United States Trade Representative; and</text> </clause><clause id="H5CC037D5EB3A40B7845B2731C67E16DA"><enum>(xii)</enum><text>other Federal agencies, as determined by the President.</text> </clause></subparagraph></paragraph></subsection><subsection id="HC1A1EB1100A4413C85B06C8BAB3FAF"><enum>(c)</enum><header>Duties of working group</header><text>The Working Group shall—</text> <paragraph id="HCC171CDE105F4F609DB94934DC48C729"><enum>(1)</enum><text>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—</text> <subparagraph id="HFD54821BCB7C4627982EBCAE001148EA"><enum>(A)</enum><text>to increase electricity generation from nuclear energy sources through development of new generation facilities;</text> </subparagraph><subparagraph id="H020D04D13CF14E8DB2B324F632249589"><enum>(B)</enum><text>to improve the efficiency, safety, and reliability of existing nuclear generating facilities through modifications; and</text> </subparagraph><subparagraph id="H10B8123C823544FD9400B1C124F230BC"><enum>(C)</enum><text>enhance the safe treatment, handling, storage, and disposal of used nuclear fuel;</text> </subparagraph></paragraph><paragraph id="H2119242436AA4E22A04D44574EC0FC04"><enum>(2)</enum><text>not later than 180 days after the date of enactment of this Act, identify—</text> <subparagraph id="H7635B4F996C34C65BD1F1DF6B82209F5"><enum>(A)</enum><text>mechanisms (including tax stimuli for investment, loans and loan guarantees, and grants) necessary for United States companies to increase—</text> <clause id="HF62FD605F3BD44F1006951CCD8332518"><enum>(i)</enum><text>the capacity of the companies to produce or provide nuclear energy products and services; and</text> </clause><clause id="HB4479BFB8BA04813B377FE506017AECD"><enum>(ii)</enum><text>exports of nuclear energy products and services; and</text> </clause></subparagraph><subparagraph id="H26EA51C6294D40FC9EF3BA927C7C19B0"><enum>(B)</enum><text>administrative or legislative initiatives that are necessary—</text> <clause id="H254B90AA6D7A408E8168B4C127009360"><enum>(i)</enum><text>to encourage United States companies to increase the manufacturing capacity of the companies for nuclear energy products;</text> </clause><clause id="H7C1151D128354C60ADE3B63F3162A61B"><enum>(ii)</enum><text>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;</text> </clause><clause id="H3B7BCEDB81F04CF89F6868E90030E296"><enum>(iii)</enum><text>to encourage, through financial incentives, private sector capital investment to expand manufacturing capacity; and</text> </clause><clause id="HEDA549DDC13F4A30ADC70E245D90955"><enum>(iv)</enum><text>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;</text> </clause></subparagraph></paragraph><paragraph id="HC6AEB5C0C47F46E28E88943602326EDB"><enum>(3)</enum><text>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</text> </paragraph><paragraph id="HAE8092B90D014B49B9AA3DC409BA4B87"><enum>(4)</enum><text>encourage the agencies represented by membership in the Working Group—</text> <subparagraph id="H63262A3037D447C8813E5CF07CCB8E9F"><enum>(A)</enum><text>to provide technical training and education for international development personnel and local users in other countries;</text> </subparagraph><subparagraph id="HE15A80D1E98C4483B5E597829DE146EA"><enum>(B)</enum><text>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;</text> </subparagraph><subparagraph id="HC6BC351EC53D416200693C92B9E5CC99"><enum>(C)</enum><text>to develop nuclear energy projects in foreign countries;</text> </subparagraph><subparagraph id="H622D6006B6134489A4338D89FB99D07"><enum>(D)</enum><text>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;</text> </subparagraph><subparagraph id="H427CCD287BAB490F9DD16E28D786D11E"><enum>(E)</enum><text>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</text> </subparagraph><subparagraph id="H9C156DFC9E23403C8D3B96969F7F643D"><enum>(F)</enum><text>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.</text> </subparagraph></paragraph></subsection><subsection id="H25185DE34FAF4F55A5D5FF3F66F5BA09"><enum>(d)</enum><header>Personnel and service matters</header><text>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.</text> </subsection><subsection id="H3DA7534287544263A2A5C6FC077547EA"><enum>(e)</enum><header>Authorization of appropriations</header><text>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.</text> </subsection></section></subtitle><subtitle id="H5C95C88CD601433E80E60647ED654700"><enum>E</enum><header>Carbon Sequestrations</header> <section id="H66681D129E264F5E99008E7273A31071"><enum>651.</enum><header>Tax credit for carbon dioxide sequestration</header> <subsection id="H2748CE9C04114549A996960021C4ACE9"><enum>(a)</enum><header>In general</header><text>of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits) is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="HCCB758639DFD406D93CD9B2E335776D5" style="OLC"> <section id="H859EB5D4D00F4B26B66D1CC8B3280755"><enum>45R.</enum><header>Credit for carbon dioxide sequestration</header> <subsection id="H49010E6D968A469900D5A1EFFFA2003D"><enum>(a)</enum><header>General rule</header><text>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—</text> <paragraph id="H84C28ACA36E647DE94B79F14DE5DDE71"><enum>(1)</enum><text>captured by the taxpayer at a qualified facility, and</text> </paragraph><paragraph id="H8A1158A1B6B04E678DF35700903836D6"><enum>(2)</enum><text>used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project.</text> </paragraph></subsection><subsection id="HA03E35AE5A4B492CBAB013B72DC44E95"><enum>(b)</enum><header>Qualified carbon dioxide</header><text>For purposes of this section—</text> <paragraph id="H4C365EEED4C443AE978C933FF63FFC79"><enum>(1)</enum><header>In general</header><text>The term <quote>qualified carbon dioxide</quote> means carbon dioxide captured from an industrial source which—</text> <subparagraph id="H0EDAA4F6C3AD4C3A8FEDD1800C33709"><enum>(A)</enum><text>would otherwise be released into the atmosphere as industrial emission of greenhouse gas, and</text> </subparagraph><subparagraph id="H3748616419254F4EB2C74EFCE5D66DD5"><enum>(B)</enum><text>is measured at the source of capture and verified at the point of disposal or injection.</text> </subparagraph></paragraph><paragraph id="HB19C1A8D224940F2B67EF9E3F200C71B"><enum>(2)</enum><header>Recycled carbon dioxide</header><text>The term <quote>qualified carbon dioxide</quote> 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.</text> </paragraph></subsection><subsection id="H4202C3D07E5C43E1B7D4D00DA35C600"><enum>(c)</enum><header>Qualified facility</header><text>For purposes of this section, the term <quote>qualified facility</quote> means any industrial facility—</text> <paragraph id="H272730474E4748FD8FF97D283774B8B0"><enum>(1)</enum><text>which is owned by the taxpayer,</text> </paragraph><paragraph id="H3B7128219C644B0184B68D5F06AE24D1"><enum>(2)</enum><text>at which carbon capture equipment is placed in service, and</text> </paragraph><paragraph id="H1D2C5B8BE3E44C91BBBBB600596B0065"><enum>(3)</enum><text>which captures not less than 500,000 metric tons of carbon dioxide during the taxable year.</text> </paragraph></subsection><subsection id="H59B531CC0EB44EEAA3C394102BFF9976"><enum>(d)</enum><header>Special rules and other definitions</header><text>For purposes of this section—</text> <paragraph id="H7D1525089486417D813805C26F7452C"><enum>(1)</enum><header>Only carbon dioxide captured within the united states taken into account</header><text>The credit under this section shall apply only with respect to qualified carbon dioxide the capture of which is within—</text> <subparagraph id="HA192C9C6B3DE4DDE89C42133D4076AB"><enum>(A)</enum><text>the United States (within the meaning of section 638(1)), or</text> </subparagraph><subparagraph id="H0EF47B02A49D46D90000D990D100D782"><enum>(B)</enum><text>a possession of the United States (within the meaning of section 638(2)).</text> </subparagraph></paragraph><paragraph id="HD02F3AE529B44E9A81007CB00C99FB0"><enum>(2)</enum><header>Tertiary injectant</header><text>The term <quote>tertiary injectant</quote> has the same meaning as when used within section 193(b)(1).</text> </paragraph><paragraph id="H675661D01F874DFFB07F850019054255"><enum>(3)</enum><header>Qualified enhanced oil or natural gas recovery project</header><text>The term <quote>qualified enhanced oil or natural gas recovery project</quote> has the meaning given the term <quote>qualified enhanced oil recovery project</quote> by section 43(c)(2), by substituting <quote>crude oil or natural gas</quote> for <quote>crude oil</quote> in subparagraph (A)(i) thereof.</text> </paragraph><paragraph id="HFAE3A6082316481496267657AB9E5119"><enum>(4)</enum><header>Credit attributable to taxpayer</header><text>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.</text> </paragraph><paragraph id="H23C6A8F57A274EFA94517E04A74B18D9"><enum>(5)</enum><header>Recapture</header><text>The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any qualified carbon dioxide which ceases to be captured or used as a tertiary injectant in a manner consistent with the requirements of this section.</text> </paragraph><paragraph id="H38787FCA8AFF4CDE946C529661886D68"><enum>(6)</enum><header>Inflation adjustment</header><text>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—</text> <subparagraph id="H796CBABD6B4342A49D741B307DEC134C"><enum>(A)</enum><text>such dollar amount, multiplied by</text> </subparagraph><subparagraph id="H8F21D27242C14CC086261D275DE210AF"><enum>(B)</enum><text>the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting <quote>2008</quote> for <quote>1990</quote>.</text> </subparagraph></paragraph></subsection><subsection id="H61057CFB1335400C965693D7E2AAC286"><enum>(e)</enum><header>Application of section</header><text>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.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H49E053AD135B408492654130BD02E082"><enum>(b)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> 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:</text> <quoted-block display-inline="no-display-inline" id="HDD8F481D3BC7417989D45BA93FE22E91" style="OLC"> <paragraph id="H12AB6302D96B4E8C83D546A2A64E63E6"><enum>(38)</enum><text display-inline="yes-display-inline">the carbon dioxide sequestration credit determined under section 45R(a).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC836F0514F384737BD30C6A3DF37BFF"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to other credits), as amended by this Act, is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="H43804936324B429D8BB71F4F9BF198B2" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 45R. Credit for carbon dioxide sequestration.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HA2C27CDAF39B4A3782179E9530E1C540"><enum>(d)</enum><header>Effective date</header><text>The amendments made by 2 this section shall apply carbon dioxide captured after the date of the enactment of this Act.</text> </subsection></section></subtitle><enum>VII</enum><header>Offsets</header> <section id="HC578FDEB04434BAD9EFC5549DC3EFE17"><enum>700.</enum><header>Reference</header><text display-inline="no-display-inline">Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.</text> </section><subtitle id="H81DF21FC317047E38D11542E762569CC"><enum>A</enum><header>Ending Unneeded Tax Breaks</header> <section id="HDDC0F7D71109470EBB4F1017E34B899D"><enum>701.</enum><header>Limitation of deduction for income attributable to domestic production of oil, gas, or primary products thereof</header> <subsection id="H057CA269078D4C4685007B38A3F057E9"><enum>(a)</enum><header>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</header> <paragraph id="HB9A4C5A21F4F4F4491013CB00DB8E34"><enum>(1)</enum><header>In general</header><text>Subparagraph (B) of section 199(c)(4) of the Internal Revenue Code of 1986 (relating to exceptions) is amended by striking <quote>or</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, or</quote>, and by inserting after clause (iii) the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H4FDEE8EB1FEC483FB3A8D922E6F0745D" style="OLC"> <clause id="H4366BB424DFA4F9AAC1FC89FAD20DA90"><enum>(iv)</enum><text display-inline="yes-display-inline">in the case of any disqualified oil company, the production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H7B0D8576421B40A6BC1951835780EA8C"><enum>(2)</enum><header>Disqualified oil company</header><text>Section 199(c) of such Code is amended by adding at the end the following new paragraph:</text> <quoted-block id="H369F7E73A1A44D96A2E5044503EAE420" style="OLC"> <paragraph id="HD4F5513BCFF547A4ABD6FFAB3388E5E"><enum>(8)</enum><header>Disqualified oil company</header> <subparagraph id="H8BA3335C86974783815626BC5337E34F"><enum>(B)</enum><header>In general</header><text>The term <quote>disqualified oil company</quote> means—</text> <clause id="H9485049FB42B4787BBD094CEF5DD7435"><enum>(i)</enum><text>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</text> </clause><clause id="HE54D5AC8B38447F6A18B4B02F8F68EA9"><enum>(ii)</enum><text>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.</text> </clause></subparagraph><subparagraph id="HF92D8EDBBFB7480800AA68FA00A600E2"><enum>(C)</enum><header>Primary product</header><text>The term <quote>primary product</quote> has the same meaning as when used in section 927(a)(2)(C), as in effect before its repeal.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HBA0CCA90A9B9445791BE7599B3AD5D45"><enum>(b)</enum><header>Limitation on oil related qualified production activities income for taxpayers other than major integrated oil companies and state owned oil companies</header> <paragraph id="H34858E6BB5ED474A887EB94D557CC051"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/199">Section 199(d)</external-xref> 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:</text> <quoted-block id="HFB18C2FF443B4F53BFAE7334486FC84" style="OLC"> <paragraph id="H8ADF1B635C094BB49CDF34E03B4F2F2B"><enum>(9)</enum><header>Special rule for taxpayers with oil related qualified production activities income</header> <subparagraph id="H56BB74557B644439BC21001788411BEC"><enum>(A)</enum><header>In general</header><text>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—</text> <clause id="H2D76C334987A41C6A1F8EBF3B0399D00"><enum>(i)</enum><text>the oil related qualified production activities income of the taxpayer for the taxable year;</text> </clause><clause id="H369145F6B0EC4233A94B8BA13CF71300"><enum>(ii)</enum><text>the qualified production activities income of the taxpayer for the taxable year; or</text> </clause><clause id="HFCBCF6FC93514CB089BCFAB83C7C22FE"><enum>(iii)</enum><text>taxable income (determined without regard to this section).</text> </clause></subparagraph><subparagraph id="HC1766DF5E8D14068B400B500600019D8"><enum>(B)</enum><header>Oil related qualified production activities income</header><text>The term <quote>oil related qualified production activities income</quote> means for any taxable year the qualified production activities income which is attributable to the production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof during such taxable year.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H6B272E6DD47F47878F9C802968C515DA"><enum>(2)</enum><header>Conforming amendment</header><text>Section 199(d)(2) of such Code (relating to application to individuals) is amended by striking <quote>subsection (a)(1)(B)</quote> and inserting <quote>subsections (a)(1)(B) and (d)(9)(A)(iii)</quote>.</text> </paragraph></subsection><subsection id="HF05917583D7E4EE9BED3A4A1D7D69936"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2008.</text> </subsection></section><section id="HA7784FDE5C8F4BD0A7D3B71D09464E01"><enum>702.</enum><header>7-year amortization of geological and geophysical expenditures for certain major integrated oil companies</header> <subsection id="HCBE1CC2E88764F65BC008EB9B85F08D9"><enum>(a)</enum><header>In general</header><text>Subparagraph (A) of section 167(h)(5) (relating to special rule for major integrated oil companies) is amended by striking <quote>5-year</quote> and inserting <quote>7-year</quote>.</text> </subsection><subsection id="H378C963E554C4ABF80DE1ED985BFC5FD"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.</text> </subsection></section><section display-inline="no-display-inline" id="HBF593E56AF3D436DAF494D1BAF2DF8D" section-type="subsequent-section"><enum>703.</enum><header>Clarification of determination of foreign oil and gas extraction income</header> <subsection id="H4F195BD0F79344DE9FFD9BD659FF9BE"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of section 907(c) is amended by redesignating subparagraph (B) as subparagraph (C), by striking <quote>or</quote> at the end of subparagraph (A), and by inserting after subparagraph (A) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H0EB5197BC5C64BB5A16021E2E9C18ECF" style="OLC"> <subparagraph id="HBCBCE5FCE5AF4D17003E9782CB533918"><enum>(B)</enum><text>so much of any transportation of such minerals as occurs before the fair market value event, or</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HA3B09C704D8F4A938BCB906E0884E5C"><enum>(b)</enum><header>Fair market value event</header><text>Subsection (c) of section 907 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HA259AAE509A84FEE8E28E0343D2FB25E" style="OLC"> <paragraph id="HE8DF5025293F4926B7A8B8004C088D1F"><enum>(6)</enum><header>Fair market value event</header><text>For purposes of this section, the term <term>fair market value event</term> means, with respect to any mineral, the first point in time at which such mineral—</text> <subparagraph id="H98948C585A2D4BC3B25D1FBBA2C31CC6"><enum>(A)</enum><text display-inline="yes-display-inline">has a fair market value which can be determined on the basis of a transfer, which is an arm’s length transaction, of such mineral from the taxpayer to a person who is not related (within the meaning of section 482) to such taxpayer, or</text> </subparagraph><subparagraph id="HE8E506D5F94F42AABCD8B385F26E1D7F"><enum>(B)</enum><text>is at a location at which the fair market value is readily ascertainable by reason of transactions among unrelated third parties with respect to the same mineral (taking into account source, location, quality, and chemical composition).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H0FB24240B7FD4D95A0C8F654E533FC2"><enum>(c)</enum><header>Special rule for certain petroleum taxes</header><text>Subsection (c) of section 907, as amended by subsection (b), is amended to by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H000BEDB7594348F4A507886935B5A24C" style="OLC"> <paragraph id="H518ECE83651E4D6086DACBA401E4F85"><enum>(7)</enum><header>Oil and gas taxes</header><text>In the case of any tax imposed by a foreign country which is limited in its application to taxpayers engaged in oil or gas activities—</text> <subparagraph id="H17A63B1B444043AB8C7FDD83EA34B33E"><enum>(A)</enum><text>the term <term>oil and gas extraction taxes</term> shall include such tax,</text> </subparagraph><subparagraph id="H12B5F53ADA4444DCA40064079C33AC68"><enum>(B)</enum><text>the term <term>foreign oil and gas extraction income</term> shall include any taxable income which is taken into account in determining such tax (or is directly attributable to the activity to which such tax relates), and</text> </subparagraph><subparagraph id="HF7763E3C819C4CB696F8B07261F289A6"><enum>(C)</enum><text>the term <term>foreign oil related income</term> shall not include any taxable income which is treated as foreign oil and gas extraction income under subparagraph (B).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H9D9B40CAAEA84B06000156A78267D7F"><enum>(d)</enum><header>Conforming amendments</header> <paragraph id="H2EF2BC91A6874483A6A5D84FEC21B3A8"><enum>(1)</enum><text>Subparagraph (C) of section 907(c)(1), as redesignated by this section, is amended by inserting <quote>or used by the taxpayer in the activity described in subparagraph (B)</quote> before the period at the end.</text> </paragraph><paragraph id="H7E8E8910AF1D47FC981B00D60098BF3B"><enum>(2)</enum><text>Subparagraph (B) of section 907(c)(2) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HBDAFA36043824A48ADA9FDF8776CE8EB" style="OLC"> <subparagraph id="H14117D5DDE3B4BE0ABAEEA52AC4D3D59"><enum>(B)</enum><text>so much of the transportation of such minerals or primary products as is not taken into account under paragraph (1)(B),</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="H262A0F6CAA764A898B96F9006DE47ECF"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="H580063F11E244E88B0B1BA69C0B2F900"><enum>704.</enum><header>Clarification of eligibility for renewable diesel credit</header> <subsection id="H68F3EC73117A4AA9A9B7029D2CD8CBA"><enum>(a)</enum><header>Coproduction with petroleum feedstock</header> <paragraph id="HCE6E660970384CCCA11BAD2184F628AA"><enum>(1)</enum><header>In general</header><text>Paragraph (3) of section 40A(f) (defining renewable diesel) is amended by adding at the end the following flush sentence:</text> <quoted-block display-inline="no-display-inline" id="HF9FCBB9557FB434FA5C89203ED1C3C00" style="OLC"> <quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">Such term does not include any fuel derived from coprocessing biomass with a feedstock which is not biomass. For purposes of this paragraph, the term <term>biomass</term> has the meaning given such term by section 45K(c)(3).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H06462435508448B5B69924AA4D3EB052"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraph (3) of section 40A(f) is amended by striking <quote>(as defined in section 45K(c)(3))</quote>.</text> </paragraph></subsection><subsection id="HDCDFDDCDE2594F9593CA568D02CC3CC3"><enum>(b)</enum><header>Clarification of eligibility for alternative fuel credit</header> <paragraph id="HD5B277DD4F174A92BFAE795B8E8100A2"><enum>(1)</enum><header>In general</header><text>Subparagraph (F) of section 6426(d)(2) is amended by striking <quote>hydrocarbons</quote> and inserting <quote>fuel</quote>.</text> </paragraph><paragraph id="HB2D61DC8F4EF4CE18C4989065336A94"><enum>(2)</enum><header>Conforming amendment</header><text>Section 6426 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H4FC646811912430E92FB79EBBBFE35AA" style="OLC"> <subsection id="H54DA23D9A1CF4DE1BAA557BFE0A2605"><enum>(h)</enum><header>Denial of double benefit</header><text>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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H0AC7CB20DA6645EF99C6E303AAC32616"><enum>(c)</enum><header>Effective date</header> <paragraph id="H459F3B0BCBD44224817FC6B0594B1E28"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="HBE76C802BE184136A278C7440676CB00"><enum>(2)</enum><header>Clarification of eligibility for alternative fuel credit</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H082356AA1A3D41DFBC3F01670000A088"><enum>705.</enum><header>Clarification that credits for fuel are designed to provide an incentive for United States production</header> <subsection commented="no" id="H640BEEC79D934F6FA0892EB171DC6505"><enum>(a)</enum><header>Biodiesel fuels credit</header><text>Paragraph (5) of section 40A(d), as added by subsection (c), is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H9668EE99F7E54123B0FEDACAD101761E" style="OLC"> <paragraph commented="no" id="HC419032E2F67471F9200D995B2B0A31B"><enum>(5)</enum><header>Limitation to biodiesel with connection to the United States</header><text display-inline="yes-display-inline">No credit shall be determined under this section with respect to any biodiesel unless—</text> <subparagraph id="HE5FBC5F42A7F4303BC3650781D02224E"><enum>(A)</enum><text>such biodiesel is produced in the United States for use as a fuel in the United States, and</text> </subparagraph><subparagraph id="HA95C964ED1B747ABAFF89B52C0646B85"><enum>(B)</enum><text>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.</text> </subparagraph><continuation-text continuation-text-level="paragraph">For purposes of this paragraph, the term <term>United States</term> includes any possession of the United States.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H96334E7883774E22A0CFC22CD115007E"><enum>(b)</enum><header>Excise tax credit</header><text>Paragraph (2) of section 6426(i), as added by subsection (c), is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H95405DD004A74C388422742C00DC4FED" style="OLC"> <paragraph commented="no" id="HA647FE9C9A4F4E7BB0EAFC3B8652B2DC"><enum>(2)</enum><header>Biodiesel and alternative fuels</header><text>No credit shall be determined under this section with respect to any biodiesel or alternative fuel unless—</text> <subparagraph commented="no" id="H647E3FFDC875445BA4B22B22C0C8F0D"><enum>(A)</enum><text display-inline="yes-display-inline">such biodiesel or alternative fuel is produced in the United States for use as a fuel in the United States, and</text> </subparagraph><subparagraph commented="no" id="H6C324330278F49BD94F768E2A260AF63"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H3BAE8CDDA7DC4965BEAFDA890003E9E"><enum>(c)</enum><header>Provisions clarifying treatment of fuels with no nexus to the United States</header> <paragraph commented="no" display-inline="no-display-inline" id="HE4D83B86783247988D5333C0F7AB1FE"><enum>(1)</enum><header>Alcohol fuels credit</header><text>Subsection (d) of section 40 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H5D7AAE33B4DB4A3392A642B02FB34F1" style="OLC"> <paragraph commented="no" id="HE6AAE217F8FA40918E9B02A5CCCA6795"><enum>(6)</enum><header>Limitation to alcohol with connection to the United States</header><text display-inline="yes-display-inline">No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States. For purposes of this paragraph, the term <term>United States</term> includes any possession of the United States.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HBCA4A04FBF5B485CB315BBCC05183717"><enum>(2)</enum><header>Biodiesel fuels credit</header><text>Subsection (d) of section 40A is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HF1EA39B8405340788EFA198D8514C35D" style="OLC"> <paragraph commented="no" id="H84EB71E5EB96409FBF5EEEC42733A39C"><enum>(5)</enum><header>Limitation to biodiesel with connection to the United States</header><text display-inline="yes-display-inline">No credit shall be determined under this section with respect to any biodiesel which is produced outside the United States for use as a fuel outside the United States. For purposes of this paragraph, the term <term>United States</term> includes any possession of the United States.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFE9331B5CD714A91810364B9E783B577"><enum>(3)</enum><header>Excise tax credit</header> <subparagraph id="H109146BA63DC40119B6845E69366F956"><enum>(A)</enum><header>In general</header><text>Section 6426, as amended by this Act, is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HBCB05DA0333A4026839214CBA4C76C3E" style="OLC"> <subsection commented="no" id="H3B19C9F446D14FBE868BA1008B33EB47"><enum>(i)</enum><header>Limitation to fuels with connection to the United States</header> <paragraph id="H42256DE9CC3A46518E7987D7532CAE82"><enum>(1)</enum><header>Alcohol</header><text display-inline="yes-display-inline">No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States.</text> </paragraph><paragraph id="H94495D092CFC4D69B24741E379A32CAF"><enum>(2)</enum><header>Biodiesel and alternative fuels</header><text display-inline="yes-display-inline">No credit shall be determined under this section with respect to any biodiesel or alternative fuel which is produced outside the United States for use as a fuel outside the United States.</text> </paragraph><continuation-text continuation-text-level="subsection">For purposes of this subsection, the term <term>United States</term> includes any possession of the United States.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph commented="no" id="HED0E42EDA6E74FA4A77688EFD850381"><enum>(B)</enum><header>Conforming amendment</header><text>Subsection (e) of section 6427 is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H22E8644567C64989B784EACAFE58A5" style="OLC"> <paragraph commented="no" id="HA343CFDD5601434AB97590B53B6ECDC7"><enum>(5)</enum><header>Limitation to fuels with connection to the United States</header><text>No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel if credit is not allowed with respect to such mixture or alternative fuel by reason of section 6426(i).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection commented="no" id="H709D21CA99ED4371BD9C594D58C93EE"><enum>(d)</enum><header>Effective date</header> <paragraph id="H62A913641F2E4274AB86692DE117C673"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H035EA09A31FC46C095576DF347DF6E5F"><enum>(2)</enum><header>Provisions clarifying treatment of fuels with no nexus to the United States</header> <subparagraph id="HC7FB8B409E0946BF00866429003EC100"><enum>(A)</enum><header>In general</header><text>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.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2FA606CBCDA842B585CB1EECCC3C66E2"><enum>(B)</enum><header>Alternative fuel credits</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H143C41233E724667B168D4008BF8A097"><enum>(C)</enum><header>Renewable diesel</header><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph></subsection></section></subtitle><subtitle id="H31B34E0FE1264D06A0B21F8BC5178991"><enum>B</enum><header>Additional Revenue Provisions</header> <section display-inline="no-display-inline" id="H9EDAAF907ACC45AF906D2FF351BAC062" section-type="subsequent-section"><enum>711.</enum><header>Nonqualified deferred compensation from certain tax indifferent parties</header> <subsection id="HF42D2B0E33BC4F5DA232427D34B74362"><enum>(a)</enum><header>In general</header><text>Subpart B of part II of subchapter E of chapter 1 is amended by inserting after section 457 the following new section:</text> <quoted-block display-inline="no-display-inline" id="H0CEAE0A2A5F84F78B32C4B3350D1E8A8" style="OLC"> <section id="H3DBF75DC1A454F02A0ED99D0B276BB10"><enum>457A.</enum><header>Nonqualified deferred compensation from certain tax indifferent parties</header> <subsection id="H81F31EC691F743FA84E1D9F03FAFBE6"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H9E876795BDFD40C2A64297497BEC5B44"><enum>(b)</enum><header>Nonqualified entity</header><text>For purposes of this section, the term <term>nonqualified entity</term> means—</text> <paragraph id="H7EDDC4CC552441D389B0EF6EB63DF8E1"><enum>(1)</enum><text display-inline="yes-display-inline">any foreign corporation unless substantially all of its income is—</text> <subparagraph id="H5CCBE9BB8FA44C66B30293B3387CEFBA"><enum>(A)</enum><text>effectively connected with the conduct of a trade or business in the United States, or</text> </subparagraph><subparagraph id="H890BFF2025AE4E9400527E19319DD694"><enum>(B)</enum><text>subject to a comprehensive foreign income tax, and</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HF718F41FC8AC4AF79FA6545ADF37B2F"><enum>(2)</enum><text display-inline="yes-display-inline">any partnership unless substantially all of its income is allocated to persons other than—</text> <subparagraph id="H6210F80D7F9D4C4D9FDB7F271152CA7"><enum>(A)</enum><text>foreign persons with respect to whom such income is not subject to a comprehensive foreign income tax, and</text> </subparagraph><subparagraph id="HC0C962A330844C3BABD8CAD563FF2510"><enum>(B)</enum><text>organizations which are exempt from tax under this title.</text> </subparagraph></paragraph></subsection><subsection id="HF29F3BAECEF74BDCB3B1F25003B8D00"><enum>(c)</enum><header>Determinability of amounts of compensation</header> <paragraph id="HB2C1A4D9B78B4DF2B782590943C7BD4F"><enum>(1)</enum><header>In general</header><text>If the amount of any compensation is not determinable at the time that such compensation is otherwise includible in gross income under subsection (a)—</text> <subparagraph id="HB11B6BC365664D81A3B9FD52B8840F6"><enum>(A)</enum><text>such amount shall be so includible in gross income when determinable, and</text> </subparagraph><subparagraph id="HC65B656DC4394F30AA75513725C489F2"><enum>(B)</enum><text>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—</text> <clause id="HFF10B247A1D94F05008C98AF0085002C"><enum>(i)</enum><text>the amount of interest determined under paragraph (2), and</text> </clause><clause id="H06E5AB0DC67F4C90978FBA954B636523"><enum>(ii)</enum><text>an amount equal to 20 percent of the amount of such compensation.</text> </clause></subparagraph></paragraph><paragraph id="H8D0AB69B1DC049EDBE531DAFCF096663"><enum>(2)</enum><header>Interest</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="HB63927CEA4F5485E995008501C89ABA1"><enum>(d)</enum><header>Other definitions and special rules</header><text>For purposes of this section—</text> <paragraph display-inline="no-display-inline" id="H0031688DC6D84F4A82106082458BEC24"><enum>(1)</enum><header>Substantial risk of forfeiture</header> <subparagraph id="H494B939B52E440EDAD79A45C28335FD8"><enum>(A)</enum><header>In general</header><text>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.</text> </subparagraph><subparagraph id="H783D72C362BE4A688FC81B0002FDECCA"><enum>(B)</enum><header>Exception for compensation based on gain recognized on an investment asset</header> <clause id="H4FA1718EC3164CCEAFE1E22257E24C4F"><enum>(i)</enum><header>In general</header><text>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.</text> </clause><clause id="HFB116500B3B4488D8F9C9F00FD29E3C9"><enum>(ii)</enum><header>Investment asset</header><text>For purposes of clause (i), the term <quote>investment asset</quote> means any single asset (other than an investment fund or similar entity)—</text> <subclause id="HD823A142E76D45BE8B0085FD5F66723E"><enum>(I)</enum><text>acquired directly by an investment fund or similar entity,</text> </subclause><subclause id="H9ADEFBA9CA464591966732DE9C61BB91"><enum>(II)</enum><text>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</text> </subclause><subclause id="HBACE21FC82FA476987FBF9D46D61FDA"><enum>(III)</enum><text>substantially all of any gain on the disposition of which (other than such deferred compensation) is allocated to investors in such entity.</text> </subclause></clause><clause id="HC38AAC1E1F9A424E9E84103373FA2500"><enum>(iii)</enum><header>Coordination with special rule</header><text>Paragraph (3)(B) shall not apply to any compensation to which clause (i) applies.</text> </clause></subparagraph></paragraph><paragraph id="H08C2B33907184972908E1952E2925EDD"><enum>(2)</enum><header>Comprehensive foreign income tax</header><text>The term <term>comprehensive foreign income tax</term> means, with respect to any foreign person, the income tax of a foreign country if—</text> <subparagraph id="H0C95CBCBD69C4F8280EDCF11427DABD4"><enum>(A)</enum><text>such person is eligible for the benefits of a comprehensive income tax treaty between such foreign country and the United States, or</text> </subparagraph><subparagraph id="H0BB1C407A9AD4A4C8383F52029EEA3A0"><enum>(B)</enum><text>such person demonstrates to the satisfaction of the Secretary that such foreign country has a comprehensive income tax.</text> </subparagraph></paragraph><paragraph id="HEC33D505DFC7404894B0C214008E68FD"><enum>(3)</enum><header>Nonqualified deferred compensation plan</header> <subparagraph id="HD9C1096140B8417DAE13512833BE006D"><enum>(A)</enum><header>In general</header><text>The term <term>nonqualified deferred compensation plan</term> 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.</text> </subparagraph><subparagraph commented="no" id="H31A00BE740134601987700D5A373BC9F"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph id="H86FCC7463FE94BA499EF7857F93570B8"><enum>(4)</enum><header>Exception for certain compensation with respect to effectively connected income</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H7E692FD5ECF84E05009D76BEB1512F72"><enum>(5)</enum><header>Application of rules</header><text display-inline="yes-display-inline">Rules similar to the rules of paragraphs (5) and (6) of section 409A(d) shall apply.</text> </paragraph></subsection><subsection id="H76DF6B6F82394885BB00881D734C6BC7"><enum>(e)</enum><header>Regulations</header><text display-inline="yes-display-inline">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.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HDBEC9254D3834EE482AD4C704CF66215"><enum>(b)</enum><header>Conforming amendment</header><text>Section 26(b)(2) is amended by striking <quote>and</quote> at the end of subparagraph (U), by striking the period at the end of subparagraph (V) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H7AC6A2FA9DB6488F9EA8D57CA8F2D026" style="OLC"> <subparagraph id="HAAB732BB86DC439DB713634475FDD643"><enum>(W)</enum><text display-inline="yes-display-inline">section 457A(c)(1)(B) (relating to determinability of amounts of compensation).</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC1E630A87B9D4671B2458E7C48B2E030"><enum>(c)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="H561B5E7E10FD4DA3A24DCE7310BF6537" style="OLC"> <toc container-level="quoted-block-container" idref="H0CEAE0A2A5F84F78B32C4B3350D1E8A8" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry idref="H3DBF75DC1A454F02A0ED99D0B276BB10" level="section">Sec. 457A. Nonqualified deferred compensation from certain tax indifferent parties.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H87B4BCBE34FD4204A700C941A3DEE772"><enum>(d)</enum><header>Effective date</header> <paragraph id="H423A73E567A344BB8823C495BC001100"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H33FB443135844E63B5F9E61D48EEBF95"><enum>(2)</enum><header>Application to existing deferrals</header><text>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—</text> <subparagraph id="H981E27B5BB4D49FA90AA8E8189A7D458"><enum>(A)</enum><text>the last taxable year beginning before 2018, or</text> </subparagraph><subparagraph id="H034DB933C59E49798F353DBA23C68F"><enum>(B)</enum><text>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 <external-xref legal-doc="usc" parsable-cite="usc/26/457A">section 457A</external-xref> of the Internal Revenue Code of 1986, as added by this section).</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HFF85B4465BD146258DC1C095B61FF7D"><enum>(3)</enum><header>Charitable contributions of existing deferrals permitted</header> <subparagraph id="HAD0925FB15464CE898A724F6A51484DB"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/170">section 170</external-xref> 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.</text> </subparagraph><subparagraph id="HA94998D79F9A48D98D6864AB2B9F8B48"><enum>(B)</enum><header>Qualified contributions</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>qualified contributions</quote> 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).</text> </subparagraph><subparagraph display-inline="no-display-inline" id="HEC942A75286748D4AC63BA86D447C4E5"><enum>(C)</enum><header>Qualified inclusion amount</header><text>For purposes of this paragraph, the term <quote>qualified inclusion amount</quote> means the amount includible in the taxpayer’s gross income for the last taxable year beginning before 2018 by reason of paragraph (2).</text> </subparagraph></paragraph><paragraph id="HBB39CE521A214D5B00E3A5CC31CA94D0"><enum>(4)</enum><header>Accelerated payments</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H87869685A18E478B0072BDDE1E6DC2AE"><enum>(5)</enum><header>Certain back-to-back arrangements</header><text>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.</text> </paragraph><paragraph id="HCFBB9541F32C4D58BBEBC412A26D3999"><enum>(6)</enum><header>Accelerated payment not treated as material modification</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/26/409A">section 409A</external-xref> of the Internal Revenue Code of 1986.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="HA287F145A38046B4A671DF407C14E57D" section-type="subsequent-section"><enum>712.</enum><header>Delay in application of worldwide allocation of interest</header><text display-inline="no-display-inline">Section 864(f) is amended—</text> <paragraph id="HF42DE62A150246EA99F3E5F69B6DCD74"><enum>(1)</enum><text>by striking <quote>December 31, 2010</quote> in paragraphs (5)(D) and (6) and inserting <quote>December 31, 2018</quote>, and</text> </paragraph><paragraph id="H40D487B98D324775954D4335BC997288"><enum>(2)</enum><text>by striking paragraph (7).</text> </paragraph></section><section id="H91B6C571F5C94BF3B047DB3E38BAD341"><enum>713.</enum><header>Time for payment of corporate estimated taxes</header><text display-inline="no-display-inline">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.</text> </section></subtitle>