[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 298 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 298

To provide incentives for renewable energy production, to increase fuel 
 economy standards for automobiles, and to provide tax incentives for 
                      renewable energy production.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 16, 2007

 Ms. Murkowski (for herself and Mr. Stevens) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide incentives for renewable energy production, to increase fuel 
 economy standards for automobiles, and to provide tax incentives for 
                      renewable energy production.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Renewable Energy, Fuel Reduction, 
and Economic Stabilization and EnHancement Act of 2007'' or the 
``REFRESH Act''.

                  TITLE I--RENEWABLE ENERGY INCENTIVES

SEC. 101. GEOTHERMAL POWER.

    (a) In General.--The Secretary of Energy, acting through the Office 
of Energy Efficiency and Renewable Energy (referred to in this title as 
the ``Secretary''), shall make grants to eligible entities (as 
determined by the Secretary) to promote geothermal power development, 
including high- and low-temperature geothermal power development.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $100,000,000.

SEC. 102. OCEAN ENERGY.

    (a) In General.--The Secretary shall make grants to eligible 
entities (as determined by the Secretary) to develop all forms of ocean 
energy (including wave, current, tidal, and thermal energy).
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $100,000,000.

SEC. 103. PLUG-IN HYBRID ELECTRIC-COMBUSTION ENGINE VEHICLES.

    (a) In General.--The Secretary shall make grants to eligible 
entities (as determined by the Secretary) to assist in the development 
of new technology (including storage batteries or other forms of 
technology) to assist automobile manufactures in the production of 
plug-in hybrid electric-combustion engine vehicles.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $100,000,000.

                  TITLE II--FUEL EFFICIENCY STANDARDS

SEC. 201. TRUTH IN TESTING OF CAFE STANDARDS.

    (a) Testing and Calculation Procedures.--
            (1) In general.--Section 32904(c) of title 49, United 
        States Code, is amended by striking ``However, except under 
        section 32908 of this title, the Administrator shall use the 
        same procedures for passenger automobiles the Administrator 
        used for model year 1975 (weighted 55 percent urban cycle and 
        45 percent highway cycle),'' and insert ``In measuring fuel 
        economy under this subsection, the Administrator shall use the 
        procedures described in the final rule relating to fuel economy 
        labeling published in the Federal Register on December 27, 2006 
        (71 Fed. Reg. 77,872; to be codified at 40 C.F.R. parts 86 and 
        600)''.
            (2) Effective date.--Paragraph (1) shall take effect on the 
        date that is 5 years after the date of the enactment of this 
        Act and shall apply to passenger automobiles manufactured after 
        such date.
    (b) Study and Report.--
            (1) Study.--The Administrator of the National Highway 
        Traffic Safety Administration shall conduct a study of the 
        anticipated economic impacts and fuel saving benefits that 
        would result from a requirement that all vehicles manufactured 
        for sale in the United States with a gross vehicle weight of 
        not less than 10,000 pounds meet specific average fuel economy 
        standards.
            (2) Report.--Not later than 2 years after the date of the 
        enactment of this Act, the Administrator shall submit a report 
        to Congress that includes--
                    (A) the results of the study conducted under 
                paragraph (1); and
                    (B) a recommendation on whether the vehicles 
                described in paragraph (1) should be subject to average 
                fuel economy standards.

SEC. 202. TIRE RESISTANCE STANDARDS.

    Section 30123 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(d) Low Rolling Resistance Tires.--Not later than 5 years after 
the date of the enactment of this subsection, all passenger automobile 
tires sold in the United States shall meet the low rolling resistance 
standards prescribed by the Administrator of the National Highway 
Traffic Safety Administration.''.

SEC. 203. TRAFFIC REDUCTION GRANTS.

    (a) In General.--The Secretary of Transportation may award grants 
to States to develop telecommuting and flexible work scheduling 
incentives that will reduce traffic congestion in urban areas.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated $50,000,000 for fiscal year 2008 to carry out the grant 
program established under this section. Any sums appropriated pursuant 
to this subsection shall remain available until expended.

                         TITLE III--TAX CREDITS

SEC. 301. EXPANSION OF CREDIT FOR PRODUCTION OF ENERGY FROM CERTAIN 
              RENEWABLE RESOURCES.

    (a) Expansion of Resources to Wave, Current, Tidal, and Ocean 
Thermal Energy.--
            (1) In general.--Section 45(c)(1) of the Internal Revenue 
        Code of 1986 (defining qualified energy resources) is amended 
        by striking ``and'' at the end of subparagraph (G), by striking 
        the period at the end of subparagraph (H) and inserting ``, 
        and'', and by adding at the end the following new subparagraph:
                    ``(I) wave, current, tidal, and ocean thermal 
                energy.''
            (2) Definition of resources.--Section 45(c) of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new paragraph:
            ``(10) Wave, current, tidal, and ocean thermal energy.--The 
        term `wave, current, tidal, and ocean thermal energy' means 
        electricity produced from any of the following:
                    ``(A) Free flowing ocean water derived from tidal 
                currents, ocean currents, waves, or estuary currents.
                    ``(B) Ocean thermal energy.
                    ``(C) Free flowing water in rivers, lakes, man made 
                channels, or streams.''
            (3) Facilities.--Section 45(d) of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(11) Wave, current, tidal, and ocean thermal facility.--
        In the case of a facility using resources described in clause 
        (i), (ii), or (iii) of subsection (c)(10)(A) to produce 
        electricity, the term `qualified facility' means any facility 
        owned by the taxpayer which is originally placed in service 
        after the date of the enactment of this paragraph and before 
        January 1, 2009, but such term shall not include a facility 
        which includes impoundment structures or a small irrigation 
        power facility.''
    (b) Expansion of Small Irrigation Power.--Paragraph (5) of section 
45(c) of the Internal Revenue Code of 1986 is amended to read as 
follows:
            ``(5) Small irrigation power.--The term `small irrigation 
        power' means power--
                    ``(A) generated without any dam or impoundment of 
                water through--
                            ``(i) through an irrigation system canal or 
                        ditch, or
                            ``(ii) utilizing lake taps, perched alpine 
                        lakes, or run-of-river with diversion, and
                    ``(B) the nameplate capacity rating of which is 
                less than 15 megawatts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to electricity produced in taxable years ending after the date of 
the enactment of this Act.

SEC. 302. EXTENSION AND MODIFICATION OF NEW QUALIFIED HYBRID MOTOR 
              VEHICLE CREDIT FOR PLUG-IN HYBRIDS.

    (a) Extension.--
            (1) New qualified hybrid passenger automobiles and light 
        trucks.--Paragraph (2) of section 30B(j) of the Internal 
        Revenue Code of 1986 is amended by inserting ``(December 31, 
        2012, in the case of a new qualified hybrid motor vehicle which 
        is recharged by means of an off board device)'' after 
        ``December 31, 2010''.
            (2) Other qualified hybrid motor vehicles.--Paragraph (3) 
        of section 30B(j) of the Internal Revenue Code of 1986 is 
        amended by inserting ``(December 31, 2012, in the case of a new 
        qualified hybrid motor vehicle which is recharged by means of 
        an off board device)'' after ``December 31, 2009''.
    (b) Elimination of Limitation on Number of New Qualified Hybrid and 
Advanced Lean Burn Technology Vehicles Eligible for Full Alternative 
Motor Vehicle Tax Credit.--
            (1) In general.--Section 30B of the Internal Revenue Code 
        of 1986 is amended--
                    (A) by striking subsection (f); and
                    (B) by redesignating subsections (g) through (j), 
                as amended by subsection (a), as subsections (f) 
                through (i), respectively.
            (2) Conforming amendments.--
                    (A) Paragraphs (4) and (6) of section 30B(g) of 
                such Code, as redesignated by paragraph (1)(B), are 
                each amended by striking ``(determined without regard 
                to subsection (g))'' and inserting ``(determined 
                without regard to subsection (f))''.
                    (B) Section 38(b)(25) of such Code is amended by 
                striking ``section 30B(g)(1)'' and inserting ``section 
                30B(f)(1)''.
                    (C) Section 55(c)(2) of such Code is amended by 
                striking ``section 30B(g)(2)'' and inserting ``section 
                30B(f)(2)''.
                    (D) Section 1016(a)(36) of such Code is amended by 
                striking ``section 30B(h)(4)'' and inserting ``section 
                30B(g)(4)''.
                    (E) Section 6501(m) of such Code is amended by 
                striking ``section 30B(h)(9)'' and inserting ``section 
                30B(g)(9)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2005, in taxable 
years ending after such date.
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