1.Short
title; table of contents
(a)This Act may be cited
as the National Fuels Initiative
.
(b)The table of
contents of this Act is as follows:
Sec. 1. Short title; table of
contents.
Sec. 2. Findings.
TITLE I—Alternative fuels
Sec. 101. Declaration of United States policy on the
development and use of renewable alternative fuels.
Sec. 102. Modification to alcohol credit and alternative fuel
credit.
Sec. 103. Installation of E–85 fuel pumps by major oil
companies at owned stations and branded stations.
Sec. 104. Requirement to manufacture dual fueled
automobiles.
Sec. 105. Definition of automobile.
Sec. 106. Average fuel economy standards.
Sec. 107. Credit trading and compliance.
Sec. 108. Consumer tax credit.
Sec. 109. Advanced technology motor vehicles manufacturing
credit.
TITLE II—Used oil re-refining and reuse
Sec. 201. Definitions.
Sec. 202. Informing public.
Sec. 203. Labeling.
Sec. 204. Collection facilities.
Sec. 205. Information exchange.
Sec. 206. Used oil from Federal agencies.
Sec. 207. Used oil in space heaters.
Sec. 208. Extension and modification of election to expense
certain refineries.
Sec. 209. Credit for re-refined lubricating oil
feedstock.
2.Congress makes the following
findings:
(1)The national
security and economic prosperity of the United States is threatened by our oil
dependence, and the reliance of the United States on oil imports impinges on
our foreign policy. Adversarial regimes rich in oil and natural gas are using
their energy supplies as leverage against import-dependent countries and are
using increased revenues from oil and gas exports to gain international
influence, fund anti-American appeals, entrench authoritarianism, and support
terrorism.
(2)Global
competition for oil reserves is increasing as supply is depleted, demand
increases, and foreign governments attempt to exert more control over reserves.
Supplies of oil are vulnerable to disruption resulting from war, political
manipulation, natural disasters, and terrorist attacks. A major loss in oil
supply could result in a price shock extremely damaging to the economy of the
United States and our way of life, and competition over scarce resources could
create conflict.
(3)Inefficient and
unclean use of oil damages the environment and worsens the threat of global
climate change.
<enum>I</enum><header>Alternative
fuels</header>
<section id="id4092E0919CD94C4EB1FD216A585C2DA3"><enum>101.</enum><header>Declaration of
United States policy on the development and use of renewable alternative
fuels</header><text display-inline="no-display-inline">Congress declares
that:</text>
<paragraph id="IDf7c70b167f074ac196e24009b7bdf0eb"><enum>(1)</enum><text>It is the policy
of the United States to reduce dependence on imported oil through increased
efficiency and diversification of fuel sources through dramatically expanded
use of clean alternative fuels. Such a reduction will increase the foreign
policy flexibility of the United States, make the United States less vulnerable
to oil supply disruption, and promote economic growth. The United States will
continue to promote research and development of a range of alternatives fuels,
and it will implement policies to accelerate the deployment and
commercialization of existing efficiency and alternative fuels
technologies.</text>
</paragraph><paragraph id="ID29a2b22e5763475898cefe9308e03cd7"><enum>(2)</enum><text>It is the policy
goal of the United States to produce and utilize the equivalent of at least
100,000,000,000 gallons of renewable fuel per year by 2025. This amount of
renewable fuel, along with innovation in fuel efficiency, will substantially
reduce the need for oil imports in the United States.</text>
</paragraph><paragraph id="ID05c959fa86a54bf2a21471ef950e849d"><enum>(3)</enum><text>It is the policy
of the United States to promote the development of a global biofuels market
through partnerships with other nations and to reduce trade barriers for
renewable fuels.</text>
</paragraph></section><section id="id8B85B577087F491C8E8D7F94D582100A"><enum>102.</enum><header>Modification
to alcohol credit and alternative fuel credit</header>
<subsection id="id7AEF8716CB0B4DACA5F72D23B8E71AC1"><enum>(a)</enum><header>Income tax
credit for alcohol</header>
<paragraph id="id85916447F8434B62AC475C38BB42C9CC"><enum>(1)</enum><header>Rate based on
price of oil</header><text>Section 40 of the Internal Revenue Code of 1986
(relating to alcohol used as fuel) is amended by striking <quote>60
cents</quote> each place it appears and inserting <quote>the applicable
amount</quote>.</text>
</paragraph><paragraph id="idB8BE5D928D0F488390BD16ECB8A4C826"><enum>(2)</enum><header>Applicable
amount</header><text>Subsection (h) of section 40 of such Code is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id4BD26B1B8F81430EA06D1BF6907430DB" style="OLC">
<subsection commented="no" id="id76A5FFAECA3246DDA5F79943E2CFF440"><enum>(h)</enum><header>Applicable
amount</header><text>For purposes of this section—</text>
<paragraph commented="no" id="id39F469DD9A1F4C83AFA26FCD339B7552"><enum>(1)</enum><header>In
general</header><text>The term <term>applicable amount</term> means, with
respect to any quarter—</text>
<subparagraph commented="no" id="id55DA084AA2AD4686B1E0155AE05E3C73"><enum>(A)</enum><text>five cents for
each $1 (or any fraction thereof) by which $45 exceeds—</text>
<clause commented="no" id="id6CA7954EC7DB4C5BAE207839265608AD"><enum>(i)</enum><text>in the case of
the alcohol mixture credit, the average price of a barrel of oil for the
quarter during which the qualified mixture used is sold or used, and</text>
</clause><clause commented="no" id="idAAD4A816045A4FD9A9F7EC01504A83C6"><enum>(ii)</enum><text>in the case of
the alcohol credit, the average price of a barrel of oil for the quarter during
which the alcohol was sold or used, and</text>
</clause></subparagraph><subparagraph commented="no" id="idC9673C33E2D94DDEB4C20F1C8BEBA4A4"><enum>(B)</enum><text>$0 for any
quarter in which the price of a barrel of oil is greater than $45.</text>
</subparagraph></paragraph><paragraph commented="no" id="id176BF58B24DC42E2B49A5E813ACA2688"><enum>(2)</enum><header>Special rule
for certain taxpayers</header>
<subparagraph commented="no" id="id3C424B2D6AF34206B6114A111E6C901A"><enum>(A)</enum><header>In
general</header><text>In the case of any alcohol or qualified mixture sold or
used before January 1, 2011, by an applicable taxpayer, the applicable amount
is—</text>
<clause commented="no" id="idC2D9E36CB5BF46D38B7B362B5218AFDA"><enum>(i)</enum><text>60 cents in the
case of a qualified mixture in which none of the alcohol consists of ethanol,
and</text>
</clause><clause commented="no" id="idBB59C61967694464B4F9DE6A49F2CFA8"><enum>(ii)</enum><text>51 cents in any
other case.</text>
</clause></subparagraph><subparagraph id="id706119F444FD4BC3AA7F94C99A3634A9"><enum>(B)</enum><header>Applicable
taxpayer</header><text>For purposes of subparagraph (A), the term
<term>applicable taxpayer</term> means a taxpayer who, on the day before the
date of the enactment of the <short-title>National Fuels
Initiative</short-title>, is in the trade or business of producing qualified
mixtures or selling alcohol at retail for use as a fuel.</text>
</subparagraph></paragraph><paragraph commented="no" id="id1017DCF3E6E146A383EBB806BFD4CAF4"><enum>(3)</enum><header>Other
rules</header><text>For purposes of this subsection—</text>
<subparagraph commented="no" id="id288AA323542846D9921F6BA65F08BB6A"><enum>(A)</enum><header>Determination
of average price</header><text>The average price of a barrel of oil shall be
determined under regulations prescribed by the Secretary.</text>
</subparagraph><subparagraph id="id518A82A1AB9C417883E9091A06C498B4"><enum>(B)</enum><header>Barrel</header><text>The
term <term>barrel</term> means 42 United States
gallons.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id795F50AA19D449FD8BD7CA2383A04CA8"><enum>(3)</enum><header>Modification of
small ethanol producer credit</header><text>Paragraph (1) of section 40(g) of
such Code is amended by adding at the end the following new sentence:
<quote>Such term shall not include any person who is not in the trade or
business of producing alcohol (as defined in subsection (d)(1)(A) without
regard to clauses (i) and (ii)) before the date of the enactment of this
Act.</quote>.</text>
</paragraph><paragraph commented="no" id="id5B0D9B56287D47EF80ACD941EA3B188B"><enum>(4)</enum><header>Extension of
credit</header>
<subparagraph commented="no" id="id599F66FA864E4B75ACEEE447ECC83305"><enum>(A)</enum><header>In
general</header><text>Paragraph (1) of section 40(e) of such Code is
amended—</text>
<clause commented="no" id="id770150563588421DB65EBD74A03EE24A"><enum>(i)</enum><text>by striking
<quote>This section</quote> and inserting <quote>Except as provided in
paragraph (2), this section</quote>,</text>
</clause><clause commented="no" id="idB84F2624B0A147A6AE95E5E8C2C3D3EC"><enum>(ii)</enum><text>in subparagraph
(A), by striking <quote>2010</quote> and inserting <quote>2020</quote>,
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idCA329FEE22674CAEA057ABDF918CE808"><enum>(iii)</enum><text>in subparagraph
(B), by striking <quote>2011</quote> and inserting <quote>2021</quote>.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id92A0D2ED46FF40E2899B55864917EF28"><enum>(B)</enum><header>Termination of
small ethanol producer credit</header>
<clause commented="no" display-inline="no-display-inline" id="idB98153CA8B9C4D1997FC598DE7012849"><enum>(i)</enum><header>In
general</header><text>Subsection (e) of section 40 of such Code is amended by
redesignating paragraph (2) as paragraph (3) and by inserting after paragraph
(1) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id14EE530A27CD468A8C4D459F8E30FACF" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idE19BB184B0994161BF78D0BD0040A7DD"><enum>(2)</enum><header>Small ethanol
producer credit</header><text>No credit shall be allowed under subsection
(a)(3) for any sale or use—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idE540B2496F5244D7B0B49199D42CF17D"><enum>(A)</enum><text>for any period
after December 31, 2010, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id19EA0773C3A44AFF9AC4783847C42A6B"><enum>(B)</enum><text>for any period
before January 1, 2011, during which the rates of tax under section
4081(a)(2)(A) are 4.3 cents per
gallon.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause><clause commented="no" display-inline="no-display-inline" id="id7D4C1ACFF8BF446EA0D63FA7C78E4E4E"><enum>(ii)</enum><header>Conforming
amendment</header><text>Section 40(e)(3) of such Code, as redesignated by
clause (i), is amended by inserting <quote>or (2)</quote> after
<quote>paragraph (1)</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="id2837503141084A37AC3C2496838D8625"><enum>(5)</enum><header>Conforming
amendment</header><text>Section 40(b) of such Code is amended by striking
paragraph (3) and by redesignating paragraphs (4) and (5) as paragraph (3) and
(4), respectively.</text>
</paragraph></subsection><subsection id="id15A23C0814C04C819BCCABE3D6F9C735"><enum>(b)</enum><header>Modifications
to excise tax credit and payments for alcohol</header>
<paragraph id="id9DF9DAC468EB4E6BAD6713A2339CBC4C"><enum>(1)</enum><header>In
general</header><text>Paragraph (2) of section 6426(b) of the Internal Revenue
Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id9A77B28775F4438DB5C526A1D165A538" style="OLC">
<paragraph commented="no" id="idA15CB2C98C2E42B3B8ED67A1FC0578D4"><enum>(2)</enum><header>Applicable
amount</header><text>For purposes of this section—</text>
<subparagraph commented="no" id="id9B53CD96FE8D44CCBDB799A840F865CB"><enum>(A)</enum><header>In
general</header><text>The term <term>applicable amount</term> means, with
respect to any quarter—</text>
<clause commented="no" id="id54604ABBF999487DBD5F50B126F94BE1"><enum>(i)</enum><text>five cents for
each $1 (or any fraction thereof) by which $45 exceeds the average price of a
barrel of oil for the quarter during which the alcohol fuel mixture is sold or
used, and</text>
</clause><clause commented="no" id="id858C92FC927545C2A482AB86BBC150FE"><enum>(ii)</enum><text>$0 for any
quarter in which the price of a barrel of oil is greater than $45.</text>
</clause></subparagraph><subparagraph commented="no" id="idA94E807748CC4E4DB2A4521C3628FAEA"><enum>(B)</enum><header>Special rule
for certain taxpayers</header>
<clause commented="no" id="id4D71B1873BBE45099A00F7EF17EAE28A"><enum>(i)</enum><header>In
general</header><text>In the case of any alcohol fuel mixture sold or used
before January 1, 2011, by an applicable taxpayer, the applicable amount
is—</text>
<subclause commented="no" id="idDBAD0873B5EB49DAA9C5005B2E70B707"><enum>(I)</enum><text>60 cents in the
case of a qualified mixture in which none of the alcohol consists of ethanol,
and</text>
</subclause><subclause commented="no" id="id6EB5522E900D48C2A8E20C855E9639B6"><enum>(II)</enum><text>51 cents in any
other case.</text>
</subclause></clause><clause id="id0CF611B041C64FF3884C7797CE5013FE"><enum>(ii)</enum><header>Applicable
taxpayer</header><text>For purposes of subparagraph (A), the term
<term>applicable taxpayer</term> means a taxpayer who, on the day before the
date of the enactment of the <short-title>National Fuels
Initiative</short-title>, is in the trade or business of producing alcohol fuel
mixtures.</text>
</clause></subparagraph><subparagraph commented="no" id="id327EA274C94C44AE8345A04E065DC3B6"><enum>(C)</enum><header>Other
rules</header><text>For purposes of this subsection—</text>
<clause commented="no" id="id536DEF2973344ED481E7140079B95B1D"><enum>(i)</enum><header>Determination
of average price</header><text>The average price of a barrel of oil shall be
determined under regulations prescribed by the Secretary.</text>
</clause><clause id="idA265E1382CF746B9B9640790597157E3"><enum>(ii)</enum><header>Barrel</header><text>The
term <term>barrel</term> means 42 United States
gallons.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id37D42F456BFF46F6A4AE5F2E79086A6C"><enum>(2)</enum><header>Extension</header>
<subparagraph id="id57300EA892AD4210947FA697A99D76BB"><enum>(A)</enum><header>Alcohol fuel
mixture credit</header><text>Paragraph (5) of section 6426(b) of such Code is
amended by striking <quote>2010</quote> and inserting
<quote>2020</quote>.</text>
</subparagraph><subparagraph id="idAEBC94CF9013439EA1030D7B0DF0F7F6"><enum>(B)</enum><header>Payments</header><text>Subparagraph
(A) of section 6427(e)(5) of such Code is amended by striking
<quote>2010</quote> and inserting <quote>2020</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="idD9E86D113D4348BB9E5C17E36CECF20E"><enum>(c)</enum><header>Modifications
to excise tax and payments for alternative fuel</header>
<paragraph id="id698C89EB56304DBF87BAA85D7F8677A9"><enum>(1)</enum><header>Alternative
fuel credit</header>
<subparagraph id="idADF3240AC54643CBA524283D35E1AB52"><enum>(A)</enum><header>Rate</header>
<clause id="idAB0D1014FB184C369A3A328110A2CB5F"><enum>(i)</enum><header>In
general</header><text>Paragraph (1) of section 6426(d) of the Internal Revenue
Code of 1986 is amended by striking <quote>50 cents</quote> and inserting
<quote>the applicable amount</quote>.</text>
</clause><clause id="id0F02D0EC23A040F8937FFD7DF2651691"><enum>(ii)</enum><header>Applicable
amount</header><text>Subsection (d) of section 6426 of such Code is amended by
redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5),
respectively, and by inserting after paragraph (1) the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id9B635A66682346C5A12FF0E9E2F510B4" style="OLC">
<paragraph commented="no" id="id5DB0035AD2B64D129BB8F56096AAE746"><enum>(2)</enum><header>Applicable
amount</header><text>For purposes of this section—</text>
<subparagraph commented="no" id="id50FD320E860C49C2B336D8A7B244405E"><enum>(A)</enum><header>In
general</header><text>The term <term>applicable amount</term> means, with
respect to any quarter—</text>
<clause commented="no" id="id253B5CE28DA3494592B9B17FD0BD8487"><enum>(i)</enum><text>five cents for
each $1 (or any fraction thereof) by which $45 exceeds the average price of a
barrel of oil for the quarter during which the alternative fuel is sold or
used, and</text>
</clause><clause commented="no" id="id4945DF12717D4F8AAF20011B9FB6511A"><enum>(ii)</enum><text>$0 for any
quarter in which the price of a barrel of oil is greater than $45.</text>
</clause></subparagraph><subparagraph commented="no" id="idF247D7D7B8FA44638ACDE7495ED550FD"><enum>(B)</enum><header>Special rule
for certain taxpayers</header>
<clause commented="no" id="id5D9A5F5675E548DC92E75C6960A512E8"><enum>(i)</enum><header>In
general</header><text>In the case of any alternative fuel sold or used before
January 1, 2011, by an applicable taxpayer, the applicable amount is 50
cents.</text>
</clause><clause id="id6378983D999447F58925B19D5D86918B"><enum>(ii)</enum><header>Applicable
taxpayer</header><text>For purposes of subparagraph (A), the term
<term>applicable taxpayer</term> means a taxpayer who, on the day before the
date of the enactment of the <short-title>National Fuels
Initiative</short-title>, is in the trade or business of producing alternative
fuels.</text>
</clause></subparagraph><subparagraph commented="no" id="id323DD94611FE408E86CE8B7AD4A450D4"><enum>(C)</enum><header>Other
rules</header><text>For purposes of this subsection—</text>
<clause commented="no" id="id769190A2D2804768B567561DC10CD035"><enum>(i)</enum><header>Determination
of average price</header><text>The average price of a barrel of oil shall be
determined under regulations prescribed by the Secretary.</text>
</clause><clause id="idDCDA64199E97422DAC90330F9646FCCB"><enum>(ii)</enum><header>Barrel</header><text>The
term <term>barrel</term> means 42 United States
gallons.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id4D315A54734545EBB482CE802955A44A"><enum>(B)</enum><header>Extension</header><text>Paragraph
(5) of section 6426(d) of such Code, as redesignated by subparagraph (A), is
amended by striking <quote>2009 (September 30, 2014, in the case of any sale or
use involving liquified hydrogen)</quote> and inserting
<quote>2020</quote>.</text>
</subparagraph></paragraph><paragraph id="id9D92779813124430BB249E24C7969C12"><enum>(2)</enum><header>Alternative
fuel mixture credit</header>
<subparagraph id="idA20B0A2F6EBD4042824E68FBEDA7F6BC"><enum>(A)</enum><header>Rate</header>
<clause id="idBB00176585E8470E97154183804B8B67"><enum>(i)</enum><header>In
general</header><text>Paragraph (1) of section 6426(e) of the Internal Revenue
Code of 1986 is amended by striking <quote>50 cents</quote> and inserting
<quote>the applicable amount</quote>.</text>
</clause><clause id="id54DC4BE93F7640C3B69AE7F4D38DC224"><enum>(ii)</enum><header>Applicable
amount</header><text>Subsection (e) of section 6426 of such Code is amended by
redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively,
and by inserting after paragraph (1) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id7BB09AE878954CF49B8CA3CF5A432A9A" style="OLC">
<paragraph commented="no" id="idE7B9E70B915F4A76B8FE8149845CE765"><enum>(2)</enum><header>Applicable
amount</header><text>For purposes of this section—</text>
<subparagraph commented="no" id="idA341AA41A3694BC7872984C531BD36F6"><enum>(A)</enum><header>In
general</header><text>The term <term>applicable amount</term> means, with
respect to any quarter—</text>
<clause commented="no" id="idF76A4D59A2E646AA98353D7DF3C0E1DE"><enum>(i)</enum><text>five cents for
each $1 (or any fraction thereof) by which $45 exceeds the average price of a
barrel of oil for the quarter during which the alternative fuel mixture is sold
or used, and</text>
</clause><clause commented="no" id="id1241FC05D8B044498D3B4C39C015D87B"><enum>(ii)</enum><text>$0 for any
quarter in which the price of a barrel of oil is greater than $45.</text>
</clause></subparagraph><subparagraph commented="no" id="idFD72BFEF971B45B5AB1F7741BBD3EB6E"><enum>(B)</enum><header>Special rule
for certain taxpayers</header>
<clause commented="no" id="id1CA552B020ED474F8820931307C5A92C"><enum>(i)</enum><header>In
general</header><text>In the case of any alternative fuel mixture sold or used
before January 1, 2011, by an applicable taxpayer, the applicable amount is 50
cents.</text>
</clause><clause id="idE7FDEA4E6EF84747B4460F50FD60BDB9"><enum>(ii)</enum><header>Applicable
taxpayer</header><text>For purposes of subparagraph (A), the term
<term>applicable taxpayer</term> means a taxpayer who, on the day before the
date of the enactment of the <short-title>National Fuels
Initiative</short-title>, is in the trade or business of producing alternative
fuel mixtures.</text>
</clause></subparagraph><subparagraph commented="no" id="idA404E21B6387460C851A9BFF393A1DCB"><enum>(C)</enum><header>Other
rules</header><text>For purposes of this subsection—</text>
<clause commented="no" id="id2F433BCFAE3144E4A9B5C5AA7F3DE00D"><enum>(i)</enum><header>Determination
of average price</header><text>The average price of a barrel of oil shall be
determined under regulations prescribed by the Secretary.</text>
</clause><clause id="idCCB1D1D26E064EB582F362034E9EABFF"><enum>(ii)</enum><header>Barrel</header><text>The
term <term>barrel</term> means 42 United States
gallons.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id449E6F3373C5400799A0A8C5ED6713DE"><enum>(B)</enum><header>Extension</header><text>Paragraph
(4) of section 6426(e) of such Code, as redesignated by subparagraph (A), is
amended by striking <quote>2009 (September 30, 2014, in the case of any sal or
use involving liquified hydrogen)</quote> and inserting
<quote>2020</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAF2E3A112594443E8631B6FB9B0E66B9"><enum>(3)</enum><header>Payments</header><text>Paragraph
(5) of section 6427(e) is amended by inserting <quote>and</quote> at the end of
subparagraph (B), by striking subparagraphs (C) and (D), and by inserting after
subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="id5C9BF132251F42E4A0E51ABD54F3C4A8" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idFB59586E73E0464CAA3BEE53529387E6"><enum>(C)</enum><text>any alternative
fuel or alternative fuel mixture (as defined in subsection (d)(3) or (e)(3) of
section 6426) sold or used after September 30,
2020.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idCA350D4FAA34466382EF00DF2EA19C95"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to fuel used
or sold in quarters beginning after the date of the enactment of this
Act.</text>
</subsection></section><section id="idBA17653B130743D2822EA1004BE7D4F1" section-type="subsequent-section"><enum>103.</enum><header>Installation of E–85
fuel pumps by major oil companies at owned stations and branded
stations</header><text display-inline="no-display-inline">Section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idE31F1D83415744F7B5D6902ECC92FC06" style="OLC">
<paragraph id="id0795F86154B144178A5613896DAE4096"><enum>(11)</enum><header>Installation
of E–85 fuel pumps by major oil companies at owned stations and branded
stations</header>
<subparagraph id="id317C590E8C404264BD3B8194E6062DFE"><enum>(A)</enum><header>Definitions</header><text>In
this paragraph:</text>
<clause id="id6E24ADD0F3C24BCD96231D6AD0C09EFB"><enum>(i)</enum><header>E–<enum-in-header>85</enum-in-header>
fuel</header><text>The term <term>E–85 fuel</term> means a blend of gasoline
approximately 85 percent of the content of which is derived from ethanol
produced in the United States.</text>
</clause><clause id="idCE62C1D4FD5B4AC0AEF922B778B330F1"><enum>(ii)</enum><header>Major oil
company</header><text>The term <term>major oil company</term> means any person
that, individually or together with any other person with respect to which the
person has an affiliate relationship or significant ownership interest, has not
less than 4,500 retail station outlets according to the latest publication of
the Petroleum News Annual Factbook.</text>
</clause><clause id="id4C4C534DE00F4FA2AB889D9A61739381"><enum>(iii)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Energy, acting in
consultation with the Administrator of the Environmental Protection Agency and
the Secretary of Agriculture.</text>
</clause></subparagraph><subparagraph id="idB844713E50BE47369082C476F72F5B57"><enum>(B)</enum><header>Regulations</header><text>The
Secretary shall promulgate regulations to ensure that each major oil company
that sells or introduces gasoline into commerce in the United States through
wholly-owned stations or branded stations installs or otherwise makes available
1 or more pumps that dispense E–85 fuel (including any other equipment
necessary, such as including tanks, to ensure that the pumps function properly)
at not less than the applicable percentage of the wholly-owned stations and the
branded stations of the major oil company specified in subparagraph (C).</text>
</subparagraph><subparagraph id="IDB63724A5756943EA90607280AF14ED17"><enum>(C)</enum><header>Applicable
percentage</header><text>For the purpose of subparagraph (B), the applicable
percentage of the wholly-owned stations and the branded stations shall be
determined in accordance with the following table:</text>
<table line-rules="no-gen" table-type="subformat">
<tgroup cols="2">
<tbody>
<row><entry colname="I50">Applicable percentage of wholly-owned
stations and branded stations</entry>
</row>
<row><entry colname="I49">Calendar year:</entry><entry colname="I50">(percent):</entry>
</row>
<row><entry colname="I51">2008</entry><entry colname="I52">5</entry>
</row>
<row><entry colname="I51">2009</entry><entry colname="I52">10</entry>
</row>
<row><entry colname="I51">2010</entry><entry colname="I52">15</entry>
</row>
<row><entry colname="I51">2011</entry><entry colname="I52">20</entry>
</row>
<row><entry colname="I51">2012</entry><entry colname="I52">25</entry>
</row>
<row><entry colname="I51">2013</entry><entry colname="I52">30</entry>
</row>
<row><entry colname="I51">2014</entry><entry colname="I52">35</entry>
</row>
<row><entry colname="I51">2015</entry><entry colname="I52">40</entry>
</row>
<row><entry colname="I51">2016</entry><entry colname="I52">45</entry>
</row>
<row><entry colname="I51">2017 and each calendar year
thereafter</entry><entry colname="I52">50.</entry>
</row>
</tbody>
</tgroup>
</table>
</subparagraph><subparagraph id="IDBB8296075D0F4B008773707B14DB6962"><enum>(D)</enum><header>Geographic
distribution</header>
<clause id="idFE8C594C74D745F281AF0FB6E88E1DEC"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), in promulgating regulations under
subparagraph (B), the Secretary shall ensure that each major oil company
described in subparagraph (B) installs or otherwise makes available 1 or more
pumps that dispense E–85 fuel at not less than a minimum percentage (specified
in the regulations) of the wholly-owned stations and the branded stations of
the major oil company in each State.</text>
</clause><clause id="id7EFAFDC78B60408582B16FBDACD76D9E"><enum>(ii)</enum><header>Requirement</header><text>In
specifying the minimum percentage under clause (i), the Secretary shall ensure
that each major oil company installs or otherwise makes available 1 or more
pumps described in that clause in each State in which the major oil company
operates.</text>
</clause></subparagraph><subparagraph id="id0F11EAD9E51341C38253191BD94FC365"><enum>(E)</enum><header>Financial
responsibility</header><text>In promulgating regulations under subparagraph
(B), the Secretary shall ensure that each major oil company described in that
subparagraph assumes full financial responsibility for the costs of installing
or otherwise making available the pumps described in that subparagraph and any
other equipment necessary (including tanks) to ensure that the pumps function
properly.</text>
</subparagraph><subparagraph id="id34F91D7B83FC4085A381AD0E6D380A53"><enum>(F)</enum><header>Production
credits for exceeding E–85 fuel pumps installation requirement</header>
<clause id="idB4368B9437654FF5BEA47454453B87A4"><enum>(i)</enum><header>Earning and
period for applying credits</header><text>If the percentage of the wholly-owned
stations and the branded stations of a major oil company at which the major oil
company installs E–85 fuel pumps in a particular calendar year exceeds the
percentage required under subparagraph (C), the major oil company earns credits
under this paragraph, which may be applied to any of the 3 consecutive calendar
years immediately after the calendar year for which the credits are
earned.</text>
</clause><clause id="idD3D00CBD869641899081B99FB5A57CAA"><enum>(ii)</enum><header>Trading
credits</header><text>Subject to clause (iii), a major oil company that has
earned credits under clause (i) may sell credits to another major oil company
to enable the purchaser to meet the requirement under subparagraph (C).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id77902ECD76744882AC0AA1058F69BC4E"><enum>(iii)</enum><header>Exception</header><text>A
major oil company may not use credits purchased under clause (ii) to fulfill
the geographic distribution requirement in subparagraph
(D).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDc3eb65709557497fb300fd7310ce0d83"><enum>104.</enum><header>Requirement to
manufacture dual fueled automobiles</header>
<subsection id="ID7974af1ad2d84146b9e14fe5fd6117e1"><enum>(a)</enum><header>Requirement</header>
<paragraph id="ID45840fb0018b4431825590d247228459"><enum>(1)</enum><header>In
general</header><text>Chapter 329 of title 49, United States Code, is amended
by inserting after section 32902 the following:</text>
<quoted-block display-inline="no-display-inline" id="id6CEE340FA3EB49768726F59C2C4974E5" style="USC">
<section id="IDbbed0078348647b2a58af13a4e2bbebe"><enum>32902A.</enum><header>Requirement
to manufacture dual fueled automobiles</header>
<subsection id="IDd907f9fb7cc14b349c810ace1a3177d7"><enum>(a)</enum><header>Requirement</header><text>Each
manufacturer of new automobiles that are capable of operating on gasoline or
diesel fuel shall ensure that the percentage of such automobiles, manufactured
in any model year after model year 2007 and distributed in commerce for sale in
the United States, which are dual fueled automobiles is equal to not less than
the applicable percentage set forth in the following table:</text>
<table align-to-level="section" blank-lines-before="1" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" subformat="S6211" table-type="2-Entry:-2-text,-bold-hds">
<tgroup cols="2" grid-typeface="1.1" thead-tbody-ldg-size="1.10.12" ttitle-size="0"><colspec align="left" coldef="txt" colname="col1" colsep="0" colwidth="220.50pt" min-data-value="190" rowsep="0"></colspec><colspec align="center" coldef="txt-no-spread" colname="col2" colsep="0" colwidth="220.50pt" min-data-value="95" rowsep="0"></colspec>
<tbody>
<row><entry align="left" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"><bold>For the model
year:</bold></entry><entry rowsep="0"><bold>The percentage of dual fueled
automobiles manufactured shall be not less than:</bold></entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2008</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">10
percent</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2009</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">20
percent</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2010</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">30
percent</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2011</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">40
percent</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2012</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">50
percent</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2013</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">60
percent</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2014</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">70
percent</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2015</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">80
percent</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2016</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">90
percent</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2017 and
beyond</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">100 percent</entry>
</row>
</tbody>
</tgroup>
</table>
</subsection><subsection id="ID4422067609094510abb4e2cadb737811"><enum>(b)</enum><header>Production
credits for exceeding flexible fuel automobile production requirement</header>
<paragraph id="idBB08751935104F68976C7D42A8AF2CA8"><enum>(1)</enum><header>Earning and
period for applying credits</header><text>If the number of dual fueled
automobiles manufactured by a manufacturer in a particular model year exceeds
the number required under subsection (a), the manufacturer earns credits under
this section, which may be applied to any of the 3 consecutive model years
immediately after the model year for which such credits are earned.</text>
</paragraph><paragraph id="id7E9A2DFD56AD4ADAA94BE4631CBB9E7D"><enum>(2)</enum><header>Trading
credits</header><text>A manufacturer that has earned credits under paragraph
(1) may sell credits to another manufacturer to enable the purchaser to meet
the requirement under subsection
(a).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDdfedc56b96bd4755ad52291469161b01"><enum>(2)</enum><header>Technical
amendment</header><text>The table of sections for chapter 329 of title 49,
United States Code, is amended by inserting after the item relating to section
32902 the following:</text>
<quoted-block display-inline="no-display-inline" id="idFC427B727D104EF291F013DAF470AB19" style="OLC">
<toc>
<toc-entry bold="off" level="section">32902A. Requirement to
manufacture dual fueled
automobiles.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDe39c387b72774bce82f99ee69aa64c3c"><enum>(b)</enum><header>Activities To
promote the use of certain alternative fuels</header><text>The Secretary of
Transportation shall carry out activities to promote the use of fuel mixtures
containing gasoline or diesel fuel and 1 or more alternative fuels, including a
mixture containing at least 85 percent of methanol, denatured ethanol, and
other alcohols by volume with gasoline or other fuels, to power automobiles in
the United States.</text>
</subsection></section><section id="id645AB94AB7DE4628854BE34FD6227641" section-type="subsequent-section"><enum>105.</enum><header>Definition of
automobile</header>
<subsection id="idFD2C955A11544385AAB7C03B42377544"><enum>(a)</enum><header>In
general</header><text>Section 32901(a)(3) of title 49, United States Code, is
amended by striking <quote>rated<linebreak></linebreak> 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="idC434AF0A26824FF7AB03C9A69A0E86C9"><enum>(b)</enum><header>Fuel economy
information</header><text>Section 32908(a) of title 49, United States Code, is
amended, by striking <quote>section—</quote> and all that follows through
<quote>(2)</quote> and inserting <quote>section, the term</quote>.</text>
</subsection><subsection id="idF09C016828B6448089508FAAF895A9E6"><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="idA527761ABD2049D78DFB8BE2BA2CF9B4"><enum>106.</enum><header>Average fuel
economy standards</header>
<subsection id="idBB28F4F148234BA793F90F6160F635AA"><enum>(a)</enum><header>Standards</header><text display-inline="yes-display-inline">Section 32902 of title 49, United States
Code, is amended—</text>
<paragraph id="id6563F85B597E48389127482BC16905C5"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="id800CA7AD86AD4D69B5804743B2653D59"><enum>(A)</enum><text>in the header, by
inserting <quote><header-in-text level="subsection" style="USC">manufactured
before model year 2012</header-in-text></quote> after <quote><header-in-text level="subsection" style="USC">Non-passenger
automobiles</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="id8FC1DB3E0B634377886D2FD99D08D0DA"><enum>(B)</enum><text>by adding at the
end the following: <quote>This subsection shall not apply to automobiles
manufactured after model year 2011.</quote>;</text>
</subparagraph></paragraph><paragraph id="idF0C350C31B324AF5898C146DDC894028"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="id6BCA662ECDEB4CF78FA3157FAD7813D6"><enum>(A)</enum><text>in the header, by
inserting <quote><header-in-text level="subsection" style="USC">manufactured
before model year 2012</header-in-text></quote> after <quote><header-in-text level="subsection" style="USC">Passenger
automobiles</header-in-text></quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2BCD44969D1C42828EA8CE41558D776E"><enum>(B)</enum><text>by inserting
<quote>and before model year 2009</quote> after <quote>1984</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2DA7DC6D8B1E4395925DE88CE4CB8DE3"><enum>(C)</enum><text>by adding at the
end the following: <quote>Such standard shall be increased by 4 percent per
year for model years 2009 through 2011 (rounded to the nearest
<fraction>1/10</fraction> mile per gallon)</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7701F887CA594FAA9196C1ED2924B05E"><enum>(3)</enum><text>by amending
subsection (c) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idB27DB1F0F42F4CDEA2963B79D86AC0EE" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id6BCF3811CF8F4936A6B8F97635D6D093"><enum>(c)</enum><header>Automobiles
manufactured after model year 2011</header><paragraph commented="no" display-inline="yes-display-inline" id="idEE83802340B94871BA86CB6E902A1C94"><enum>(1)</enum><text>Not later than 18
months before the beginning of each model year after model year 2011, the
Secretary of Transportation shall prescribe, by regulation—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idDB4C4B68BB604BA29AFD6DA4705EC58D" indent="up1"><enum>(A)</enum><text>an average fuel economy standard for
automobiles manufactured by a manufacturer in that model year; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD26FA06EC0994E6DB41F6D1D7B504639" indent="up1"><enum>(B)</enum><text>based on 1 or more vehicle attributes
that relate to fuel economy—</text>
<clause commented="no" display-inline="no-display-inline" id="id60974EDEEAD949DE83352F5A1415E26D"><enum>(i)</enum><text>separate standards for different
classes of automobiles; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id870F84BEAF4847F1830FC80BAEEDD685"><enum>(ii)</enum><text>standards expressed in the form of
a mathematical function.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA445E3AA88304A37A3125C926C7CE856" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id70D632A2EE5E4BDCA462A9BED589C5BD"><enum>(A)</enum><text>Except as provided
under paragraphs (3) and (4) and subsection (d), standards under paragraph (1)
shall attain a projected aggregate level of average fuel economy of 27.5 miles
per gallon for all automobiles manufactured by all manufacturers for model year
2012.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id10B56676EE10420C8EF9E6B84E09426D" indent="up1"><enum>(B)</enum><text>The projected aggregate level of
average fuel economy for model year 2013 and each succeeding model year shall
be increased by 4 percent from the level for the prior model year (rounded to
the nearest 1/10 mile per gallon).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD3E0BA4C7BCC493DAB421B85BBDFEB61" indent="up1"><enum>(C)</enum><text>Notwithstanding subparagraphs (A) and
(B), the fleetwide average fuel economy standard for passenger automobiles
manufactured by a manufacturer in a model year for that manufacturer’s domestic
fleet and for its foreign fleet as calculated under section 32904 as in effect
before the date of enactment of the <short-title>National
Fuels Initiative</short-title> shall not be less than 92 percent of the average
fuel economy projected by the Secretary for the combined domestic and foreign
fleets manufactured by all manufacturers in that model year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD7B69C483ADC404C9762FFF9851A9539" indent="up1"><enum>(3)</enum><text>If the actual aggregate level of
average fuel economy achieved by manufacturers for each of 3 consecutive model
years is at least 5 percent less than the projected aggregate level of average
fuel economy for such model year, the Secretary shall make appropriate
adjustments to the standards prescribed under this subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9E41171FADD54D38B23628A40B9BE917" indent="up1"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id3D598F2CD83941BC95B6DBC7D25BED75"><enum>(A)</enum><text>Notwithstanding
paragraphs (1) through (3) and subsection (b), the Secretary of Transportation
may prescribe a lower average fuel economy standard for 1 or more model years
if the Secretary of Transportation, in consultation with the Secretary of
Energy, determines that the minimum standards prescribed under paragraph (2) or
(3) or subsection (b) for each model year—</text>
<clause commented="no" display-inline="no-display-inline" id="id642B1E11FB4F499B822E2253EA115480" indent="up1"><enum>(i)</enum><text>are technologically
unachievable;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id53C1BAEEEB214660848FED65C43DF593" indent="up1"><enum>(ii)</enum><text>cannot be achieved without materially
reducing the overall safety of automobiles manufactured or sold in the United
States; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id90D571D091134A6BAEDD4C77813889FF" indent="up1"><enum>(iii)</enum><text>is shown, by clear and convincing
evidence, not to be cost effective.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8CE12521C3724653AD52E3C459AE4BE1" indent="up1"><enum>(B)</enum><text>If a lower standard is prescribed for
a model year under subparagraph (A), such standard shall be the maximum
standard that—</text>
<clause commented="no" display-inline="no-display-inline" id="idFC24A3B565BA4689B3CE359335D7FBF8"><enum>(i)</enum><text>is technologically achievable;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idC982E41E881F423AAC3A5A398D0CF901"><enum>(ii)</enum><text>can be achieved without materially
reducing the overall safety of automobiles manufactured or sold in the United
States; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id8320CAB65C9A4A3780A3EBF1A8411770"><enum>(iii)</enum><text>is cost effective.</text>
</clause></subparagraph></paragraph><paragraph id="idE290FCED9B6946DEB5692D75E0D7D345" indent="up1"><enum>(5)</enum><text>In determining cost effectiveness
under paragraph (4)(A)(iii), the Secretary of Transportation shall take into
account the total value to the Nation of reduced petroleum use, including the
value of reducing external costs of petroleum use, using a value for such costs
equal to 50 percent of the value of a gallon of gasoline saved or the amount
determined in an analysis of the external costs of petroleum use that
considers—</text>
<subparagraph id="id85B9D50C0D154BE8BC81DD1C3AF19C93"><enum>(A)</enum><text>value to consumers;</text>
</subparagraph><subparagraph id="id7448C3C595DF4D2E98B3DBC252366F18"><enum>(B)</enum><text>economic security;</text>
</subparagraph><subparagraph id="id2FAFE460CE5E43D9989B4AE2A93C2542"><enum>(C)</enum><text>national security;</text>
</subparagraph><subparagraph id="id9F1DFE9CCE294C26A42DBB6AF5F1E601"><enum>(D)</enum><text>foreign policy;</text>
</subparagraph><subparagraph id="id73CABC8C9C2F450184D132D993CBB59F"><enum>(E)</enum><text>the impact of oil use—</text>
<clause id="id005689E6DC334F4493B5711F16058EF3"><enum>(i)</enum><text>on sustained cartel rents paid to
foreign suppliers;</text>
</clause><clause id="id351041445E2D4E4C90A992B3342D5A2C"><enum>(ii)</enum><text>on long-run potential gross
domestic product due to higher normal-market oil price levels, including
inflationary impacts;</text>
</clause><clause id="id3F8B760C47D14B7B963D826CCE7891F3"><enum>(iii)</enum><text>on import costs, wealth
transfers, and potential gross domestic product due to increased trade
imbalances;</text>
</clause><clause id="id04692746007D4ECA9EA66D834B2E254D"><enum>(iv)</enum><text>on import costs and wealth
transfers during oil shocks;</text>
</clause><clause id="id31C847DF34B64612AA29223300F71388"><enum>(v)</enum><text>on macroeconomic dislocation and
adjustment costs during oil shocks;</text>
</clause><clause id="idB8A9D6C0F41648DE82690A281F53F03C"><enum>(vi)</enum><text>on the cost of existing energy
security policies, including the management of the Strategic Petroleum
Reserve;</text>
</clause><clause id="id2D1AC8EFB98A4FBC9BAF6C6688BA5D6D"><enum>(vii)</enum><text>on the timing and severity of the
oil peaking problem;</text>
</clause><clause id="id3D4A71ADE2CA4BB9AE82F371A803087B"><enum>(viii)</enum><text>on the risk, probability, size,
and duration of oil supply disruptions;</text>
</clause><clause id="idF2E2251B1853429B931E6F315270BDF6"><enum>(ix)</enum><text>on OPEC strategic behavior and
long-run oil pricing;</text>
</clause><clause id="id5E92E2882B164B258361AD9CDE468A3A"><enum>(x)</enum><text>on the short term elasticity of
energy demand and the magnitude of price increases resulting from a supply
shock;</text>
</clause><clause id="id8E2FF2B069A7453298DC6A9031D2CB09"><enum>(xi)</enum><text>on oil imports, military costs,
and related security costs, including intelligence, homeland security, sea lane
security and infrastructure, and other military activities;</text>
</clause><clause id="idB7E6BBDB9B6A4EA6B2C6784A980498B4"><enum>(xii)</enum><text>on oil imports, diplomatic and
foreign policy flexibility, and connections to geopolitical strife, terrorism,
and international development activities;</text>
</clause><clause id="idD13E26CD4A6846DFA33D31B31A75F3FE"><enum>(xiii)</enum><text>all relevant environmental
hazards under the jurisdiction of the Environmental Protection Agency;
and</text>
</clause><clause id="idDB9D2C17908146FAA17A1A429EC749EF"><enum>(xiv)</enum><text>on well-to-wheels urban and local
air emissions of <quote>pollutants</quote> and their uninternalized
costs;</text>
</clause></subparagraph><subparagraph id="id4607D375D99B4F3BA4C913D30CE4EED4"><enum>(F)</enum><text>the impact of the oil or energy
intensity of the United States economy on the sensitivity of the economy to oil
price changes, including the magnitude of gross domestic product losses in
response to short term price shocks or long term price increases;</text>
</subparagraph><subparagraph id="idFAC8145A40254298AB088C5B192463E9"><enum>(G)</enum><text>the impact of United States payments
for oil imports on political, economic, and military developments in unstable
or unfriendly oil exporting countries;</text>
</subparagraph><subparagraph id="idE4E8BF58194241F48D11A30BBAA9961A"><enum>(H)</enum><text>the uninternalized costs of pipeline
and storage oil seepage, and for risk of oil spills from production, handling,
and transport, and related landscape damage; and</text>
</subparagraph><subparagraph id="id76A682848DD749FABDBCCDAAD9CF8224"><enum>(I)</enum><text>additional relevant factors, as
determined by the Secretary.</text>
</subparagraph></paragraph><paragraph id="id7AFB9F74F29543EFA20BC78D3FA3BD0D" indent="up1"><enum>(6)</enum><text>When considering the value to
consumers of a gallon of gasoline saved, the Secretary of Transportation may
not use a value less than the greatest of—</text>
<subparagraph id="idE44560B5BA634780BA70CA4646730381"><enum>(A)</enum><text>the average national cost of a gallon
of gasoline sold in the United States during the 12-month period ending on the
date on which the new fuel economy standard is proposed;</text>
</subparagraph><subparagraph id="idCC7FED17389F4FBF9D427867F7BD5636"><enum>(B)</enum><text>the most recent weekly estimate by the
Energy Information Administration of the Department of Energy of the average
national cost of a gallon of gasoline (all grades) sold in the United States;
or</text>
</subparagraph><subparagraph id="id68C8CCCD63544220A71E18A64DB39061"><enum>(C)</enum><text>the gasoline prices projected by the
Energy Information Administration for the 20-year period beginning in the year
following the year in which the standards are established.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id364A07FC57214AB19E439A3A8D8C04D9" indent="up1"><enum>(7)</enum><text>In prescribing standards under this
subsection, the Secretary may prescribe standards for 1 or more model
years.</text>
</paragraph><paragraph id="ID34e58761963a442da5fd00b22b2ea533" indent="up1"><enum>(8)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id32D56596020B485A88933C1F99C74722"><enum>(A)</enum><text>Not later than December
31, 2016, the Secretary of Transportation, the Secretary of Energy, and the
Administrator of the Environmental Protection Agency shall submit a joint
report to Congress on the state of global automotive efficiency technology
development, and on the accuracy of tests used to measure fuel economy of
automobiles under section 32904(c), utilizing the study and assessment of the
National Academy of Sciences referred to in subparagraph (B).</text>
</subparagraph><subparagraph id="ID7350d46ff5354663a7a016bac906d98a" indent="up1"><enum>(B)</enum><text>The Secretary shall enter into
appropriate arrangements with the National Academy of Sciences to conduct a
comprehensive study of the technological opportunities to enhance fuel economy
and an analysis and assessment of the accuracy of fuel economy tests used by
the Administrator of the Environmental Protection Agency to measure fuel
economy for each model under section 32904(c). Such analysis and assessment
shall identify any additional factors or methods that should be included in
tests to measure fuel economy for each model to more accurately reflect actual
fuel economy of automobiles. The Secretary and the Administrator of the
Environmental Protection Agency shall furnish, at the request of the Academy,
any information which the Academy determines to be necessary to conduct the
study, analysis, and assessment under this subparagraph.</text>
</subparagraph><subparagraph id="ID936c9345ae194965946ec8b5eb4dd592" indent="up1"><enum>(C)</enum><text>The report submitted under
subparagraph (A) shall include—</text>
<clause id="id5B881CDC5EF34E5394B6A48D097F735D"><enum>(i)</enum><text>the study of the National Academy of
Sciences referred to in subparagraph (B); and</text>
</clause><clause id="id5A18BB28ED3F40DB86CF36175242BF9D"><enum>(ii)</enum><text>an assessment by the Secretary of
technological opportunities to enhance fuel economy and opportunities to
increase overall fleet safety.</text>
</clause></subparagraph><subparagraph id="IDfc277639484a4f348d16eb7be2e61cf2" indent="up1"><enum>(D)</enum><text>The report submitted under
subparagraph (A) shall identify and examine additional opportunities to reform
the regulatory structure under this chapter, including approaches that seek to
merge vehicle and fuel requirements into a single system that achieves equal or
greater reduction in petroleum use and environmental benefits.</text>
</subparagraph><subparagraph id="id65820B991C22433987C4008A74780E96" indent="up1"><enum>(E)</enum><text>The report submitted under
subparagraph (A) shall—</text>
<clause id="id08709081D3E848CC9F627F57077B0CDB"><enum>(i)</enum><text>include conclusions reached by the
Administrator of the Environmental Protection Agency, as a result of detailed
analysis and public comment, on the accuracy of current fuel economy
tests;</text>
</clause><clause id="idC6E3483AB7EA4BC9A1DE3486AC6961D9"><enum>(ii)</enum><text>identify any additional factors that
the Administrator determines should be included in tests to measure fuel
economy for each model to more accurately reflect actual fuel economy of
automobiles; and</text>
</clause><clause id="id2C02F622825942538EDE37194FF87F89"><enum>(iii)</enum><text>include a description of options,
formulated by the Secretary and the Administrator, to incorporate such
additional factors in fuel economy tests in a manner that will not effectively
increase or decrease average fuel economy for any automobile
manufacturer.</text>
</clause></subparagraph><subparagraph id="IDb5a28a1a22de41988922b91d3c426601" indent="up1"><enum>(F)</enum><text>There is authorized to be
appropriated to the Secretary such amounts as are required to carry out the
study, analysis, and assessment required by subparagraph
(B).</text>
</subparagraph></paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id2D2D5169282A490A978D51C874923E71"><enum>(4)</enum><text>in subsection
(g)(2), by striking <quote>(and submit the amendment to Congress when required
under subsection (c)(2) of this section)</quote>.</text>
</paragraph></subsection><subsection id="idFCB09FC036EF4548AF2068779FE81FDC"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id31BD3F5C77D740B09F78A2162DAD8EE2"><enum>(1)</enum><header>In
general</header><text>Chapter 329 of title 49, United States Code, is
amended—</text>
<subparagraph id="idF8911CDC57364361A0A245FD121BAF89"><enum>(A)</enum><text>in section
32903—</text>
<clause id="id41B13DB157FF4EC5B845FC98375953E5"><enum>(i)</enum><text>by
striking <quote>passenger</quote> each place it appears;</text>
</clause><clause id="id4747EFFBEC1240A497A0A9F332420F1A"><enum>(ii)</enum><text>by
striking <quote>section 32902(b)–(d) of this title</quote> each place it
appears and inserting <quote>subsection (c) or (d) of section
32902</quote>;</text>
</clause><clause id="idF9B33C6525824033B4611867518982B2"><enum>(iii)</enum><text>by striking
subsection (e); and</text>
</clause><clause id="idE7FF87F16AF24552BC8DBAE118FF30B1"><enum>(iv)</enum><text>by
redesignating subsection (f) as subsection (e); and</text>
</clause></subparagraph><subparagraph id="idF26A647A7CFA4CE89BD44E7B9EC6CC76"><enum>(B)</enum><text>in section
32904(a)—</text>
<clause id="idA8A835715587434E9EE3BC6835824863"><enum>(i)</enum><text>by
striking <quote>passenger</quote> each place it appears; and</text>
</clause><clause id="idDDBEB8837E3A4A40AAFD4E0F056447F0"><enum>(ii)</enum><text>in
paragraph (1), by striking <quote>subject to</quote> and all that follows
through <quote>section 32902(b)–(d) of this title</quote> and inserting
<quote>subsection (c) or (d) of section 32902</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="id0B435DD0735A4111914D0FA3E91B9599"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by paragraph (1) shall apply to
automobiles manufactured after model year 2011.</text>
</paragraph></subsection></section><section id="id98062E4AB6EC445E94017540ADCFC897"><enum>107.</enum><header>Credit trading
and compliance</header>
<subsection id="id4E842FBD283F4675A370DAD6E0A231D4"><enum>(a)</enum><header>Credit
trading</header><text>Section 32903(a) of title 49, United States Code, is
amended—</text>
<paragraph id="id3EE254EFD16E4E049C288848DBB142A4"><enum>(1)</enum><text>by inserting
<quote>Credits earned by a manufacturer under this section may be sold to any
other manufacturer and used as if earned by that manufacturer; except that
credits earned by a manufacturer described in section 32904(b)(1)(A)(i) may not
be sold to or purchased by a manufacturer described in
32904(b)(1)(A)(ii),</quote> after <quote>earns credits.</quote>; and</text>
</paragraph><paragraph id="id3DADC25B422045089CD085FC4FEE9D09"><enum>(2)</enum><text>by striking
<quote>3 consecutive model years immediately</quote> each place it appears and
inserting <quote>model years</quote>.</text>
</paragraph></subsection><subsection id="id46D09B4E6A654B64BFC9FD7E2C2178AC"><enum>(b)</enum><header>Treatment of
imports</header>
<paragraph commented="no" id="id84BE19E5A4E348F2A551F8288DDB15C2"><enum>(1)</enum><header>Conforming
amendment</header><text>Section 32904(b) is amended by striking
<quote>passenger</quote> each place it appears.</text>
</paragraph><paragraph id="idBECD56EB66A74721869AEA2813A1AB3B"><enum>(2)</enum><header>Applicability</header><text>The
amendments made by paragraph (1) shall apply to automobiles manufactured after
model year 2011.</text>
</paragraph></subsection><subsection id="id971AFA4857D14688BD967DEAA914CD19"><enum>(c)</enum><header>Multi-year
compliance period</header><text>Section 32904(c) of such title is
amended—</text>
<paragraph id="id896E624AA5764E79BE1241C492F9F931"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> before <quote>The Administrator</quote>; and</text>
</paragraph><paragraph id="id0E19FF8463DA41E5835CC9EEC60969BE"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id7DC550B3BD5946D59089A31BC2331DE1" style="OLC">
<paragraph id="id2B2ADEBD97C4434CB13E61542756F9E4" indent="up1"><enum>(2)</enum><text>The Secretary, by rule, may allow a
manufacturer to elect a multi-year compliance period of not more than 4
consecutive model years in lieu of the single model year compliance period
otherwise applicable under this
chapter.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="idC6BF0424B23F402EB86EDD8FB90EA7D1"><enum>108.</enum><header>Consumer tax
credit</header>
<subsection commented="no" display-inline="no-display-inline" id="id58F1ACF9742040D18EED28519D1CE6E1"><enum>(a)</enum><header>Elimination on
number of new qualified hybrid and advanced lean burn technology vehicles
eligible for alternative motor vehicle credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="id1D337639E13C407F899D884D1068D455"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 30B of the
Internal Revenue Code of 1986 is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3D600D0867E947BD8E38E2B8C57501AB"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subsection (f); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCF0E8048E54847B3AB911C6D1C3AACE2"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating subsections (g) through
(j) as subsections (f) through (i), respectively.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id599931A7F5C04B379B8022DDE506A551"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idD253C4E6E0214503BD10A32F21AF1349"><enum>(A)</enum><text display-inline="yes-display-inline">Paragraphs (4) and (6) of section 30B(h) of
such Code 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 commented="no" display-inline="no-display-inline" id="id867FD79BE57F4C6CB5E72BA78A9AD0A4"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idE87FC752794A4FBDA1E3920FE6DA0929"><enum>(C)</enum><text display-inline="yes-display-inline">Section 55(c)(2) of such Code is amended by
striking <quote>section 30B(g)(2)</quote> and inserting <quote>section
30B(f)(2)</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB92F69ECC00F4F24B4C03061107F923D"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id0286963C8D494AE38A499ACCF459915D"><enum>(E)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id92E67EDA30634B5DAA4310C91B60CE15"><enum>(b)</enum><header>Extension of
alternative vehicle credit for new qualified hybrid motor
vehicles</header><text display-inline="yes-display-inline">Paragraph (3) of
section 30B(i) of such Code (as redesignated by subsection (a)) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idF344425F0DF64D34837BA767A800E73A"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to property placed in service after December 31, 2005,
in taxable years ending after such date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDD99268111450474ABEB1508887E62EFF" section-type="subsequent-section"><enum>109.</enum><header>Advanced technology
motor vehicles manufacturing credit</header>
<subsection commented="no" display-inline="no-display-inline" id="ID7D97788632FB45889BABCDC177AB1B28"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart B of part IV
of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to
foreign tax credit, etc.) is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="IDE3500BEC6FDF4C17A08125A20FAD3D84" style="OLC">
<section commented="no" display-inline="no-display-inline" id="ID563A1A96F7E5401A9B72F090E19D0966" section-type="subsequent-section"><enum>30D.</enum><header>Advanced technology
motor vehicles manufacturing credit</header>
<subsection commented="no" display-inline="no-display-inline" id="IDCCC84461480D46A28423830484E1093D"><enum>(a)</enum><header>Credit
allowed</header><text display-inline="yes-display-inline">There shall be
allowed as a credit against the tax imposed by this chapter for the taxable
year an amount equal to 35 percent of the qualified investment of an eligible
taxpayer for such taxable year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID33056C01F3CB4084BA1A74B724A047A5"><enum>(b)</enum><header>Qualified
investment</header><text display-inline="yes-display-inline">For purposes of
this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDCCBF8E8FAC7C40CC8A60F3BA3C15E55D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The qualified
investment for any taxable year is equal to the incremental costs incurred
during such taxable year—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDA81F5386C436414E9DB052A2A04537F3"><enum>(A)</enum><text display-inline="yes-display-inline">to re-equip, expand, or establish any
manufacturing facility in the United States of the eligible taxpayer to produce
advanced technology motor vehicles or to produce eligible components,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1A7B69EF6E4143E9A38DB5F8F0264974"><enum>(B)</enum><text display-inline="yes-display-inline">for engineering integration performed in
the United States of such vehicles and components as described in subsection
(d),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID00175C69605C42C9BECAB00596E8877D"><enum>(C)</enum><text display-inline="yes-display-inline">for research and development performed in
the United States related to advanced technology motor vehicles and eligible
components, and</text>
</subparagraph><subparagraph id="IDD37C978DABFC4D71BF96058C21819BB1"><enum>(D)</enum><text>for employee
retraining with respect to the manufacturing of such vehicles or components
(determined without regard to wages or salaries of such retrained
employees).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3F90FCC51A694529A62F277E6FF04931"><enum>(2)</enum><header>Attribution
rules</header><text display-inline="yes-display-inline">In the event a facility
of the eligible taxpayer produces both advanced technology motor vehicles and
conventional motor vehicles, or eligible and non-eligible components, only the
qualified investment attributable to production of advanced technology motor
vehicles and eligible components shall be taken into account.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID8300E4E4A341443D9B9133AF198C7BB1"><enum>(c)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="IDD234FFAD57C043E696070931F74E5A28"><enum>(1)</enum><header>Advanced
technology motor vehicle</header><text>The term <term>advanced technology motor
vehicle</term> means—</text>
<subparagraph id="IDA39D9CC463994BC289E527BD17BE9EB2"><enum>(A)</enum><text>any qualified
electric vehicle (as defined in section 30(c)(1)),</text>
</subparagraph><subparagraph id="IDB772FE4807D1476BBE9A48F6E718165A"><enum>(B)</enum><text>any new qualified
fuel cell motor vehicle (as defined in section 30B(b)(3)),</text>
</subparagraph><subparagraph id="IDF83E9BA54C6A47F7B93C271A6BE5AC33"><enum>(C)</enum><text>any new advanced
lean burn technology motor vehicle (as defined in section 30B(c)(3)),</text>
</subparagraph><subparagraph id="IDBF3AC7110BDA4180B1107785650BD8D7"><enum>(D)</enum><text>any new qualified
hybrid motor vehicle (as defined in section 30B(d)(2)(A) and determined without
regard to any gross vehicle weight rating),</text>
</subparagraph><subparagraph id="ID9178E114ADD348DAA7387A2E74941CA1"><enum>(E)</enum><text>any new qualified
alternative fuel motor vehicle (as defined in section 30B(e)(4), including any
mixed-fuel vehicle (as defined in section 30B(e)(5)(B)), and</text>
</subparagraph><subparagraph id="ID07CA67064611445291EC20E2F2403255"><enum>(F)</enum><text>any other motor
vehicle using electric drive transportation technology (as defined in paragraph
(3)).</text>
</subparagraph></paragraph><paragraph id="ID4FC1BAE22836461A9648FF6FC717F728"><enum>(2)</enum><header>Electric drive
transportation technology</header><text>The term <term>electric drive
transportation technology</term> means technology used by vehicles that use an
electric motor for all or part of their motive power and that may or may not
use off-board electricity, such as battery electric vehicles, fuel cell
vehicles, engine dominant hybrid electric vehicles, plug-in hybrid electric
vehicles, and plug-in hybrid fuel cell vehicles.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6B94E524A2DB47E1BA6B85F2E33F237A"><enum>(3)</enum><header>Eligible
components</header><text display-inline="yes-display-inline">The term
<term>eligible component</term> means any component inherent to any advanced
technology motor vehicle, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDE691C4D4664141EB811187CFB1C317EE"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to any gasoline or
diesel-electric new qualified hybrid motor vehicle—</text>
<clause commented="no" display-inline="no-display-inline" id="ID1C2F004DA10A478B9A4D92C3753C04F7"><enum>(i)</enum><text display-inline="yes-display-inline">electric motor or generator;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID46188D16BC9E4610ADD3BB4DED04DF95"><enum>(ii)</enum><text display-inline="yes-display-inline">power split device;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDC7354570E2454245B464B3D7858F720E"><enum>(iii)</enum><text display-inline="yes-display-inline">power control unit;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID1DD55C46CC6F446486F8839C13B82506"><enum>(iv)</enum><text display-inline="yes-display-inline">power controls;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID65EDF4EEAF7E4552B9D5ECAAF34C5152"><enum>(v)</enum><text display-inline="yes-display-inline">integrated starter generator; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID30E637F71E344367AE34A9368DA82128"><enum>(vi)</enum><text display-inline="yes-display-inline">battery;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDE08C8C2750414421B7E40D5E93F646C3"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to any hydraulic new qualified
hybrid motor vehicle—</text>
<clause commented="no" display-inline="no-display-inline" id="IDF0F84DA632BB48988C493B0630EFC750"><enum>(i)</enum><text display-inline="yes-display-inline">accumulator or other energy storage
device;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDBF8F5B8F36834116BAC3C5BA50A0C979"><enum>(ii)</enum><text display-inline="yes-display-inline">hydraulic pump;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID4C0EBD11E52C45C9BA8CEAC8A72B2C41"><enum>(iii)</enum><text display-inline="yes-display-inline">hydraulic pump-motor assembly;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id499B9E1FF3074AD6B3C875143F1545D8"><enum>(iv)</enum><text>power control
unit; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD7B14F287ABE4D9F919C47E08A6B8260"><enum>(v)</enum><text>power
controls;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9EE7B0E072AC4FF0AFB07895F255706F"><enum>(C)</enum><text display-inline="yes-display-inline">with respect to any new advanced lean burn
technology motor vehicle—</text>
<clause commented="no" display-inline="no-display-inline" id="IDA4448F173A064489AA342DFC934A99EF"><enum>(i)</enum><text display-inline="yes-display-inline">diesel engine;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID332643E0967A445D8E350A3EAAEF58B2"><enum>(ii)</enum><text display-inline="yes-display-inline">turbo charger;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID45D036F633244784BDD58AD3D87BE72A"><enum>(iii)</enum><text display-inline="yes-display-inline">fuel injection system; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID4EE0B626A4DD4950BA76EF6D68BDFAF0"><enum>(iv)</enum><text display-inline="yes-display-inline">after-treatment system, such as a particle
filter or NO<subscript>X</subscript> absorber; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID748678330BFB4BDD8C748637E06411A8"><enum>(D)</enum><text display-inline="yes-display-inline">with respect to any advanced technology
motor vehicle, any other component submitted for approval by the
Secretary.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2531698F788444CF8B3CDEBF4D6FC12A"><enum>(4)</enum><header>Eligible
taxpayer</header><text display-inline="yes-display-inline">The term
<term>eligible taxpayer</term> means any taxpayer if more than 20 percent of
the taxpayer’s gross receipts for the taxable year is derived from the
manufacture of motor vehicles or any component parts of such vehicles.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDCB246864EDD841D082E1AFE7F777F3A8"><enum>(d)</enum><header>Engineering
integration costs</header><text display-inline="yes-display-inline">For
purposes of subsection (b)(1)(B), costs for engineering integration are costs
incurred prior to the market introduction of advanced technology vehicles for
engineering tasks related to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID19A1FCC9ADC84D9CB42CC01AAE716CAB"><enum>(1)</enum><text display-inline="yes-display-inline">establishing functional, structural, and
performance requirements for component and subsystems to meet overall vehicle
objectives for a specific application,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5B8AD64838234900AE79A4D2ECF7A8B2"><enum>(2)</enum><text display-inline="yes-display-inline">designing interfaces for components and
subsystems with mating systems within a specific vehicle application,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDFB765842BD264504A4061DD7DDCAB4CC"><enum>(3)</enum><text display-inline="yes-display-inline">designing cost effective, efficient, and
reliable manufacturing processes to produce components and subsystems for a
specific vehicle application, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID217ECC8EFBE744F9890DAC9DCD4BC7D9"><enum>(4)</enum><text display-inline="yes-display-inline">validating functionality and performance of
components and subsystems for a specific vehicle application.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDADC53B8993174E43BB8C5F0D2D079BD9"><enum>(e)</enum><header>Limitation
based on amount of tax</header><text display-inline="yes-display-inline">The
credit allowed under subsection (a) for the taxable year shall not exceed the
excess of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDC395F7DC7A534E4CA6D5B56E9EFD4B08"><enum>(1)</enum><text display-inline="yes-display-inline">the sum of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID5CF042499F764916B88B5B06B0CF9861"><enum>(A)</enum><text display-inline="yes-display-inline">the regular tax liability (as defined in
section 26(b)) for such taxable year, plus</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDFB5541C7716D44D8B9F81FFC94E5BD31"><enum>(B)</enum><text display-inline="yes-display-inline">the tax imposed by section 55 for such
taxable year and any prior taxable year beginning after 1986 and not taken into
account under section 53 for any prior taxable year, over</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID12F0788137E94580B7105834B06128EA"><enum>(2)</enum><text display-inline="yes-display-inline">the sum of the credits allowable under
subpart A and sections 27, 30, and 30B for the taxable year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDFE9F9F7E2C9E4A288C5FD4C46DA41A2C"><enum>(f)</enum><header>Reduction in
basis</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="ID4951AF1A085C4051A398F2B9D9C03ADE"><enum>(g)</enum><header>No double
benefit</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID541279316F82474DAFF6A97E0F6F8BE0"><enum>(1)</enum><header>Coordination
with other deductions and credits</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), 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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID19D413BE4B524B658AC1953E7BDC0225"><enum>(2)</enum><header>Research and
development costs</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDC16FF5883E3E46B2A3674ACC5FA5AAAD"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subparagraph (B), any amount described in subsection (b)(1)(C) taken into
account in determining the amount of the credit under subsection (a) for any
taxable year shall not be taken into account for purposes of determining the
credit under section 41 for such taxable year.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8932D8DA35294429A731367F4976D926"><enum>(B)</enum><header>Costs taken
into account in determining base period research expenses</header><text display-inline="yes-display-inline">Any amounts described in subsection
(b)(1)(C) taken into account in determining the amount of the credit under
subsection (a) for any taxable year which are qualified research expenses
(within the meaning of section 41(b)) shall be taken into account in
determining base period research expenses for purposes of applying section 41
to subsequent taxable years.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID2D2C99427DBC49C6A57EBECB7E5821E1"><enum>(h)</enum><header>Business
carryovers allowed</header><text display-inline="yes-display-inline">If the
credit allowable under subsection (a) for a taxable year exceeds the limitation
under subsection (e) for such taxable year, such excess (to the extent of the
credit allowable with respect to property subject to the allowance for
depreciation) shall be allowed as a credit carryback to each of the 15 taxable
years immediately preceding the unused credit year and as a carryforward to
each of the 20 taxable years immediately following the unused credit
year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID246F2C6B3D064279B798A00412D86D84"><enum>(i)</enum><header>Special
rules</header><text display-inline="yes-display-inline">For purposes of this
section, rules similar to the rules of section 179A(e)(4) and paragraphs (1)
and (2) of section 41(f) shall apply</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID5E7D43DE11BE4E959574A7F6B4B2AEBF"><enum>(j)</enum><header>Election not To
take credit</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="ID010B94354DB3462C9DD6FCA3B977E6D9"><enum>(k)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations as necessary to carry out the provisions of this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID3226210624874DCAA4785945DF07A0B8"><enum>(l)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to any
qualified investment after December 31,
2010.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID110E47F34FB94BCF985DF7EE95A4E02F"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID33496014C4BA463584D6765C65720364"><enum>(1)</enum><text display-inline="yes-display-inline">Section 1016(a) of the Internal Revenue
Code of 1986 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 display-inline="no-display-inline" id="ID61FE32C2BE6E44668C2C472B1242B8F8" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="IDFA67BECCE93B406691E904AA91D2C8C2"><enum>(38)</enum><text display-inline="yes-display-inline">to the extent provided in section
30D(g).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDEA4A5D41BC46423BB77DA2BCAA28B585"><enum>(2)</enum><text display-inline="yes-display-inline">Section 6501(m) of such Code is amended by
inserting <quote>30D(k),</quote> after <quote>30C(e)(5),</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID461D629EBC1A4E07998E9D56D4979265"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart B of part
IV of subchapter A of chapter 1 of such Code is amended by inserting after the
item relating to section 30C the following new item:</text>
<quoted-block display-inline="no-display-inline" id="IDF0FBC5B3C06A48F6999EA78C4151C4E7" style="USC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">Sec. 30D. Advanced technology
motor vehicles manufacturing
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDADBAC220AEB2465FA22087822421C63A"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to amounts incurred in taxable years beginning after
December 31, 1999.</text>
</subsection></section><enum>II</enum><header>Used oil
re-refining and reuse</header>
<section id="IDfa55ecaafa444f6f9425fa3a709de57d"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="idFD1E58C4121E445A901037FC8F92F6DA"><enum>(1)</enum><header>Administrator</header><text>The
term <term>Administrator</term> means the Administrator of the Environmental
Protection Agency.</text>
</paragraph><paragraph id="IDc3f34f58d6b0459c94270afecfabcdff"><enum>(2)</enum><header>Re-refine</header><text>The
term <term>re-refine</term>, with respect to the treatment of used oil, means
the process by which the physical and chemical contaminants contained in used
oil as a result of previous use are removed to produce lubricating oil or
another oil.</text>
</paragraph><paragraph id="ID3e3449c36a9843d4887fa9194c2665f6"><enum>(3)</enum><header>Re-refinery</header><text>The
term <term>re-refinery</term> means a plant or facility used for the purpose of
re-refining used oil.</text>
</paragraph><paragraph id="IDc373b08a2948418184783c7b6826f4a9"><enum>(4)</enum><header>Reuse</header><text>The
term <term>reuse</term>, with respect to used oil, means any process by which
oil is used after the original use of the oil, including through re-refining,
reprocessing, or reclaiming.</text>
</paragraph><paragraph id="id118DE19E50CE4F0D950E60A316DFCA4F"><enum>(5)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Energy.</text>
</paragraph><paragraph id="ID734edbf703cb416b8e95ca8ed6a084ae"><enum>(6)</enum><header>Used
oil</header><text>The term <term>used oil</term> means any oil that has been
refined from crude oil, or any synthetic oil, that is contaminated by a
physical or chemical impurity as a result of the use of the oil.</text>
</paragraph></section><section id="IDa97fb412b9b74ca791d40dcc2b946ea0"><enum>202.</enum><header>Informing
public</header><text display-inline="no-display-inline">The Secretary shall
develop a program under which the Secretary shall provide to the public
information about the benefits of collecting, re-refining, and otherwise
reusing used oil, including through—</text>
<paragraph id="ID88eeeb96ada7433aa0aff072e2940966"><enum>(1)</enum><text>the establishment
of a website providing—</text>
<subparagraph id="id7D44497326A04483B15133AB6DDC5219"><enum>(A)</enum><text>a description of
the benefits of re-refining or otherwise reusing used oil;</text>
</subparagraph><subparagraph id="id99DC8C4EAC174061831626D66BF905EC"><enum>(B)</enum><text>a list of used
oil collection facilities, re-refiners, and other entities that reuse used oil;
and</text>
</subparagraph><subparagraph id="id159E528178E04F8BA5644520F187F0A6"><enum>(C)</enum><text>links to State
and local websites containing other appropriate information;</text>
</subparagraph></paragraph><paragraph id="IDef0d4c60ded147adb54f347456213509"><enum>(2)</enum><text>publication and
distribution of educational materials, in English and other languages,
describing—</text>
<subparagraph id="id062833A33A2A41ADABCCAB0BAAD886DA"><enum>(A)</enum><text>the benefits of
collecting, re-refining, and otherwise reusing used oil; and</text>
</subparagraph><subparagraph id="id583D554FC7F84A549F853910ED4D1D39"><enum>(B)</enum><text>methods for
ensuring the safe collection, storage, transportation, and reuse of used oil;
and</text>
</subparagraph></paragraph><paragraph id="ID2665fadb5d64433b9e01d0830b44845b"><enum>(3)</enum><text>submission to
Congress and publication of an annual report describing measures carried out
during the preceding calendar year to increase the collection, re-refining, and
other reuse of used oil, including estimates of the energy resources saved, and
the quantity of emissions reduced, through those measures.</text>
</paragraph></section><section id="ID423b92983b7842f8a9e4f5b378f380f1"><enum>203.</enum><header>Labeling</header><text display-inline="no-display-inline">Not later than January 1, 2009, the
Secretary shall develop proposed guidelines, to take effect not later than
January 1, 2010, for the labeling of re-refined lubricating oil, including
establishment, and guidelines for use, of a re-refined label to be approved by
the Secretary for lubricating oil that—</text>
<paragraph id="IDf8a9e81393224bcfab96f2b3dbf5b661"><enum>(1)</enum><text>meets industry
standards as in effect on the date of enactment of this Act; and</text>
</paragraph><paragraph id="ID8ed0742a2c554038820ceb5200c6a411"><enum>(2)</enum><text>contains base oil
composed of not less than 50 percent re-refined lubricating oil.</text>
</paragraph></section><section id="ID267a4e9f90ff40168c6ada347cc80dbc"><enum>204.</enum><header>Collection
facilities</header><text display-inline="no-display-inline">The Secretary, in
cooperation with the Administrator, shall establish—</text>
<paragraph id="id92781443543D4CF1BFCDFD09B6038700"><enum>(1)</enum><text display-inline="yes-display-inline">guidelines for the collection of used oil
by facilities in an environmentally safe manner; and</text>
</paragraph><paragraph id="id2FFA1D793D194D1487556CCA5949D6C2"><enum>(2)</enum><text display-inline="yes-display-inline">a process by which facilities may be
certified to collect used oil as part of a national used oil collection
network.</text>
</paragraph></section><section id="ID31cbe143f6ab452f8bb96ac0bbb9996c"><enum>205.</enum><header>Information
exchange</header>
<subsection id="id1A12E7A5E5044ED3BEB507AFDBD7653B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary, in
cooperation with the Administrator, shall develop a program to facilitate the
exchange of information among State and local agencies and the public
concerning re-refining and other means of reusing used oil to enhance energy
conservation and emissions reduction, including through—</text>
<paragraph id="id99EEE29C83AA4F6CB9FCF30B712B007F"><enum>(1)</enum><text display-inline="yes-display-inline">the establishment of a clearinghouse for
applicable data and reports;</text>
</paragraph><paragraph id="id4A46BA1CB163415A8EF7EA8BCD8DA236"><enum>(2)</enum><text display-inline="yes-display-inline">the development of best management
practices; and</text>
</paragraph><paragraph id="id3FE14588F7384F0FA7047B689CCFF959"><enum>(3)</enum><text display-inline="yes-display-inline">the convening of periodic conferences
relating to re-refining and other reuse of used oil.</text>
</paragraph></subsection><subsection id="idEF0694687E0941D5B2B8E2B13FFF43F8"><enum>(b)</enum><header>Rural and
farming communities</header><text display-inline="yes-display-inline">In
carrying out subsection (a), the Secretary shall ensure that—</text>
<paragraph id="idED8E4F7929D04CF7AF3629D0BBE4D703"><enum>(1)</enum><text display-inline="yes-display-inline">opportunities for re-refining and other
reuse of used oil in rural and farming communities are appropriately
considered; and</text>
</paragraph><paragraph id="id2968AAEF44364FC2A042ED453EEA4849"><enum>(2)</enum><text display-inline="yes-display-inline">information regarding appropriate and
cost-effective measures to encourage those opportunities is made available to
State and local agencies and the public.</text>
</paragraph></subsection></section><section id="ID8c7240993e8946fa99b2adadafa4eebf"><enum>206.</enum><header>Used oil from
Federal agencies</header>
<subsection id="idBD7F88A737CD454E9828F5380B5B619D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 2
years after the date of enactment of this Act, the Secretary, in consultation
with the Administrator of General Services, shall promulgate regulations
requiring all Federal agencies and departments—</text>
<paragraph id="id6A9DE27301A94AB3876323AC70EA6BDA"><enum>(1)</enum><text display-inline="yes-display-inline">to collect used oil produced by the
agencies and departments, including used oil derived from federally owned and
operated vehicles; and</text>
</paragraph><paragraph id="id2F46F0936A0F40F0BA4D5A90088C9757"><enum>(2)</enum><text display-inline="yes-display-inline">to re-refine and reuse that used oil in
accordance with the regulations.</text>
</paragraph></subsection><subsection id="id63C0F03A51454D3AB3636834617E5CD7"><enum>(b)</enum><header>Requirements</header><text display-inline="yes-display-inline">The regulations promulgated pursuant to
subsection (a) shall establish a preference by the Federal Government in the
use and disposal of used oil, in a manner that does not constitute a threat to
public health or the environment and that conserves energy and materials to the
maximum extent practicable—</text>
<paragraph id="idD76F2B92A43B45A68B06A5665EF86858"><enum>(1)</enum><text display-inline="yes-display-inline">first, for re-refining used oil, unless the
re-refining—</text>
<subparagraph id="idD454CC74ABB545CDB930A3D2BEC9AC2F"><enum>(A)</enum><text display-inline="yes-display-inline">is not reasonably available; or</text>
</subparagraph><subparagraph id="id20FE87EEC18946C78231BFF0314C790D"><enum>(B)</enum><text display-inline="yes-display-inline">involves unreasonable costs compared to
other methods of reuse;</text>
</subparagraph></paragraph><paragraph id="id78F56720CB26476B94FF3DCA388490CD"><enum>(2)</enum><text display-inline="yes-display-inline">second, for other reuse of used oil,
including burning the used oil for energy recovery; and</text>
</paragraph><paragraph id="id265994C5723B489288547082C63A5D6A"><enum>(3)</enum><text display-inline="yes-display-inline">third, for the disposal of used oil.</text>
</paragraph></subsection></section><section id="ID13a95afd33ee48fbb16606a3af72278e"><enum>207.</enum><header>Used oil in
space heaters</header>
<subsection id="id138DEB61E2734EA28642E6AB64225792"><enum>(a)</enum><header>Definition of
space heater</header><text>In this section, the term <term>space heater</term>
means a heating device with a production capacity of at least 500,000 Btus per
hour that is capable of burning used oil or other fuel.</text>
</subsection><subsection id="idF73ACBD25A8B40D7901F234C6B7D97E2"><enum>(b)</enum><header>Study</header><text display-inline="yes-display-inline">The Administrator shall conduct a study of
the hazards to public health that the Administrator reasonably anticipates to
occur as a result of emissions covered by the Clean Air Act (42 U.S.C. 7401 et
seq.) from space heaters that burn used oil, for energy recovery or other
purposes.</text>
</subsection><subsection id="id36AFB6A84C4A4E6B9C9CB110B7924F91"><enum>(c)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 270 days after the date of
enactment of this Act, the Administrator shall submit to Congress a report
describing the results of the study under subsection (b), including—</text>
<paragraph id="id6396AAF5B7454EC88396381373D5FFFE"><enum>(1)</enum><text display-inline="yes-display-inline">a determination by the Administrator as to
whether any category of new or existing space heaters poses a risk to human
health or the environment; and</text>
</paragraph><paragraph id="idD39C0C341DC64A25B658E86038B41AB0"><enum>(2)</enum><text display-inline="yes-display-inline">a description of alternative control
strategies for space heater emissions that could require regulation under this
section.</text>
</paragraph></subsection></section><section id="idEAC4605BDDC0470189FD9405D3A3605D"><enum>208.</enum><header>Extension and
modification of election to expense certain refineries</header>
<subsection id="id88455AA1BBBF4F448AA687E34930FB10"><enum>(a)</enum><header>Modification of
definition of qualified refinery</header>
<paragraph id="idB00BD10C63BE437098F26A3A387223CC"><enum>(1)</enum><header>In
general</header><text>Subsection (d) of section 179C of the Internal Revenue
Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idD64284D31CF2445094C819250FABAB55" style="OLC">
<subsection id="id3B39DD0C9B4B411EBD2DCDF0BE8313CB"><enum>(d)</enum><header>Qualified
refinery</header><text>For purposes of this section, the term <term>qualified
refinery</term> means any refinery located in the United States which is
designed to serve the primary purpose of—</text>
<paragraph id="id7164C28A789842598550E573683C8914"><enum>(1)</enum><text>processing liquid
fuel from crude oil or qualified fuels (as defined in section 45K(c)),
or</text>
</paragraph><paragraph id="id7FDDAFE7B95B45EAB42A9EDF306ABA0F"><enum>(2)</enum><text>processing
non-virgin lube oil from used, refined products (including used lube oil
originally derived from crude oil or qualified
fuels).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id23AA1E27B9D24DF99C2C6744F921FED3"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="idD4F8F3332C224800AD8FDC17DAFF383B"><enum>(A)</enum><text>Section 179C(e)
of such Code amended—</text>
<clause id="id48B722E5A3E14F80BC9277F22C3D4519"><enum>(i)</enum><text>in
paragraph (1), by inserting <quote>virgin</quote> before <quote>lube
oil</quote>, and</text>
</clause><clause id="idE9FAB936FE014F4EA4DAB02BADFF1C17"><enum>(ii)</enum><text>in
paragraph (2), by inserting <quote>or other products from used refined
products</quote> and <quote>section 45K(c))</quote>.</text>
</clause></subparagraph><subparagraph id="id1427E752993C47BD99780A14710ADDE9"><enum>(B)</enum><text>Section
179C(f)(1) of such Code is amended by inserting <quote>virgin</quote> before
<quote>lube oil facility</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="idA602E41DD9B74F7BAA55899807064828"><enum>(b)</enum><header>Special rule
for qualified refineries processing used products</header><text>Paragraph (1)
of section 179C(c) of the Internal Revenue Code of 1986 is amended by adding at
the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id00887EEA0BDC4616B7FE5FEA9589AFB0" style="OLC">
<paragraph id="id8058CE55A5074A2B986870DCBBF0BBDD"><enum>(4)</enum><header>Special rule
for qualified refineries processing used products</header><text>In the case of
a qualified refinery described in subsection (d)(2), paragraph (1) shall be
applied—</text>
<subparagraph id="id2029048715E642CE9C7C761A54A279CC"><enum>(A)</enum><text>by substituting
<quote>2014</quote> for <quote>2012</quote> in subparagraph (B),</text>
</subparagraph><subparagraph id="idFF9EA48B7DB34E6BA7047402CFB29CC3"><enum>(B)</enum><text>by substituting
<quote>January 4, 2007</quote> for <quote>June 14, 2005</quote> in
subparagraphs (E) and (F), and</text>
</subparagraph><subparagraph id="id49FE6AAD09454E27859756FA439EA3D2"><enum>(C)</enum><text>by substituting
<quote>2010</quote> for <quote>2008</quote> each place it appears in
subparagraph
(F).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id753B6DF080724E80A93272A8C9AC076A"><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 commented="no" id="IDb794080f3fa846f6aaf0282eb4f347b5"><enum>209.</enum><header>Credit for
re-refined lubricating oil feedstock</header>
<subsection commented="no" id="id3AE8FEA33F284D4492C2362029E3497C"><enum>(a)</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="idFAE91B4CA6B348558EB438E39DD3D73B" style="OLC">
<section commented="no" id="id75A6BE12533549978CA13BC09BD22E92"><enum>30D.</enum><header>Credit for
re-refined lubricating oil feedstock</header>
<subsection commented="no" id="id6315C971622547F082F7B9D515B534B9"><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 product of—</text>
<paragraph commented="no" id="idE942F60B9DDF48298A210CDBB3C090DC"><enum>(1)</enum><text>20 cents,
and</text>
</paragraph><paragraph commented="no" id="idB9A44F3A65BD4CDB89CDDD2874C7F06F"><enum>(2)</enum><text>the excess
of—</text>
<subparagraph commented="no" id="idFDB1AE024C9B4B2583CBDCC24AF7D109"><enum>(A)</enum><text>number of gallons
of qualified re-refined lubricating oil feedstock sold by the taxpayer to a
qualified re-refined lubricating oil producer during the taxable year,
over</text>
</subparagraph><subparagraph commented="no" id="id57F1BA962C0145ACA23D16529843A27A"><enum>(B)</enum><text>the highest
number of gallons of qualified re-refined lubricating oil feedstock sold by the
taxpayer to a qualified re-refined lubricating oil producer in any preceding
taxable year beginning after December 31, 2006.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id3571B42FD18041CD8D760ACE659D396A"><enum>(b)</enum><header>Qualified
re-refined lubricating oil feedstock</header><text>For purposes of this
section—</text>
<paragraph commented="no" id="id520AF4B42A0C4835B3431DDB1707E5FF"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified re-refined lubricating oil
feedstock</term> means used lubricating oil which is certified by the qualified
re-refined lubricating oil producer to which it is sold as suitable for
re-refining for use in engines.</text>
</paragraph><paragraph commented="no" id="idF238F5C198824820BC2FFF2D213CE887"><enum>(2)</enum><header>Certifications</header>
<subparagraph commented="no" id="id84C0F27EC50844F5AB92914D5E89A9CE"><enum>(A)</enum><header>Limitation on
amount certified</header>
<clause commented="no" id="id66028CBF7F974244AC422AF04BFA385A"><enum>(i)</enum><header>In
general</header><text>The amount of used lubricating oil which may be certified
by a qualified re-refined lubricating oil producer for any calendar year may
not exceed the refining capacity of such qualified re-refining lubricating oil
producer for such calendar year.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idEF200818D8604D8E8556F487A69D090C"><enum>(ii)</enum><header display-inline="yes-display-inline">Noncompliance with pollution
laws</header><text display-inline="yes-display-inline">For purposes of clause
(i), under regulations prescribed by the Secretary, the refining capacity of
any refinery which is not in material compliance with the applicable State and
Federal pollution prevention, control, and permit requirements for any period
of time during a calendar year shall be reduced in proportion to the period of
time during which such refinery is not in material compliance with such
requirements.</text>
</clause></subparagraph><subparagraph commented="no" id="idAF298648AE684573A1379DFCE2E16B11"><enum>(B)</enum><header>Reports</header><text>Each
qualified re-refined lubricating oil producer shall file such reports regarding
certifications as the Secretary may by regulations prescribe.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idAB1FD90C1CCA4965A7C215ED7DD619F9"><enum>(c)</enum><header>Qualified
re-refined lubricating oil producer</header><text>For purposes of this section,
the term <term>qualified re-refined lubricating oil producer</term> means any
person who—</text>
<paragraph commented="no" id="idF28F13ABC2814D4DBEB6146573BC7CD5"><enum>(1)</enum><text>produces a base
oil manufactured from at least 95 percent used lubricating oil and not more
than 2 percent of previously unused lubricating oil by a re-refining process
which effectively removes physical and chemical impurities and spent and
unspent additives, and</text>
</paragraph><paragraph commented="no" id="id97DBC8DFBDB441C68E3ADD0575C32949"><enum>(2)</enum><text>is registered
with the Secretary as a qualified re-refined lubricating oil
producer.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="ID081170ab71ac482e9092cff0403073d8"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code is amended by inserting at the end the
following new item:</text>
<quoted-block id="id77321e59-e76f-497e-8b74-0e74df1702f1" style="OLC">
<toc>
<toc-entry level="section">Sec. 30D. Credit for re-refined
lubricating oil
feedstock.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="IDf84f604b4b7b44ecb57c82f5333fcd2c"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
production after the date of the enactment of this Act.</text>
</subsection></section>