[Congressional Record (Bound Edition), Volume 152 (2006), Part 12]
[Senate]
[Pages 16239-16250]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4712. Mr. COLEMAN (for himself and Mr. Talent) submitted an 
amendment intended to be proposed by him to the bill S. 3711, to 
enhance the energy independence and security of the United States by 
providing for exploration, development, and production activities for 
mineral resources in the Gulf of Mexico, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 18, after line 17, add the following:

     SEC. 6. ENERGY SECURITY.

       (a) Short Title.--This section may be cited as the 
     ``Transforming Energy Now Act of 2006''.
       (b) Tax Credits.--
       (1) Increase in alternative fuel vehicle refueling property 
     credit.--Section 30C(a) of the Internal Revenue Code of 1986 
     is amended by striking ``30 percent'' and inserting ``50 
     percent''.
       (2) AMT relief.--
       (A) Personal credit.--Paragraph (2) of section 30C(d) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``the excess (if any) of'' and all that follows and inserting 
     ``the excess of--
       ``(A) the sum of the regular tax liability (as defined 
     under section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under subpart A and 
     sections 27, 30, and 30B.''.
       (B) Business credit amount.--Subparagraph (B) of section 
     38(c)(4) of the Internal Revenue Code of 1986 is amended--
       (i) in clause (i), by striking ``and'' at the end;
       (ii) in clause (ii)(II), by striking the period at the end 
     and inserting ``, and''; and
       (iii) by adding at the end the following:
       ``(iii) the portion of the credit under section 30C which 
     is treated as a credit under this section by reason of 
     section 30C(d)(1).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2005, in taxable years ending after such date.
       (c) Use of CAFE Penalties to Build Alternative Fueling 
     Infrastructure.--Section 32912 of title 49, United States 
     Code, is amended by adding at the end the following:
       ``(e) Alternative Fueling Infrastructure Grant Program.--
       ``(1) Trust fund.--
       ``(A) Establishment.--There is established in the Treasury 
     of the United States a trust fund, to be known as the 
     Alternative Fueling Infrastructure Trust Fund (referred to in 
     this subsection as the `Trust Fund'), consisting of such 
     amounts as are deposited into the Trust Fund under 
     subparagraph (B) and any interest earned on investment of 
     amounts in the Trust Fund.
       ``(B) Transfers of civil penalties.--The Secretary of 
     Transportation shall remit 90 percent of the amount collected 
     in civil penalties under this section to the Trust Fund.
       ``(2) Establishment of grant program.--
       ``(A) In general.--The Secretary of Energy shall obligate 
     such sums as are available in the Trust Fund to establish a 
     grant program to increase the number of locations at which 
     consumers may purchase alternative transportation fuels.

[[Page 16240]]

       ``(B) Allocation to corporate and nonprofit entities.--The 
     Secretary shall allocate such sums from the Trust Fund as the 
     Secretary considers appropriate to corporations (including 
     nonprofit corporations) with demonstrated experience in the 
     administration of grant funding. Corporations shall use funds 
     received under this paragraph to award grants to owners and 
     operators of fueling stations for the purpose of developing 
     alternative fueling infrastructure for specific types of 
     alternative fuels that can be used in at least 50,000 
     vehicles produced in the United States in the prior vehicle 
     production year.
       ``(C) Considerations.--In making allocations under 
     subparagraph (A), the Secretary shall--
       ``(i) give priority to recognized nonprofit corporations 
     that have proven experience and demonstrated technical 
     expertise in the establishment of alternative fueling 
     infrastructure;
       ``(ii) consider the number of vehicles produced for sale in 
     the preceding production year capable of using each specific 
     type of alternative fuel; and
       ``(iii) identify 1 primary group per alternative fuel.
       ``(D) Matching requirement.--The Secretary may not allocate 
     funds to a corporation under this paragraph unless such 
     corporation agrees to provide $1 of non-Federal contributions 
     for every $3 of Federal funding received under this 
     paragraph.
       ``(E) Limitation on administrative expenses.--A corporation 
     may not expend more than 5 percent of the total allocation 
     provided under this paragraph on administrative expenses.
       ``(F) Technical and marketing assistance.--Corporations 
     receiving an allocation under subparagraph (A) shall provide 
     grant recipients under paragraph (3) with technical and 
     marketing assistance, including--
       ``(i) technical advice for compliance with applicable 
     Federal and State environmental requirements;
       ``(ii) assistance in identifying alternative fuel supply 
     sources; and
       ``(iii) point of sale and labeling materials.
       ``(3) Administration of grants.--
       ``(A) Direct grants to fuel station owners and operators.--
     The Secretary of Energy shall award grants directly to owners 
     and operators of fueling stations for the purpose of 
     installing alternative fuel infrastructure for specific types 
     of alternative fuels that can be used in fewer that 50,000 
     vehicles produced in the United States in the prior vehicle 
     production year.
       ``(B) Grant recipient.--Corporations receiving an 
     allocation under paragraph (2), and the Secretary of Energy 
     under subparagraph (A), shall award grants to owners and 
     operators of fueling stations in an amount not greater than--
       ``(i) $150,000 per site; or
       ``(ii) $500,000 per entity.
       ``(C) Selection.--Grant recipients under this paragraph 
     shall be selected on a formal, open, and competitive basis, 
     based on--
       ``(i) the public demand for each alternative fuel in a 
     particular county based on state registration records showing 
     the number of vehicles that can be operated with alternative 
     fuel; and
       ``(ii) the opportunity to create or expand corridors of 
     alternative fuel stations along interstate or State highways.
       ``(D) Use of funds.--Grant funds received under this 
     paragraph may be used to--
       ``(i) construct new facilities to dispense alternative 
     fuels;
       ``(ii) purchase equipment to upgrade, expand, or otherwise 
     improve existing alternative fuel facilities; or
       ``(iii) purchase equipment or pay for specific turnkey 
     fueling services by alternative fuel providers.
       ``(E) Matching requirement.--A recipient of a grant under 
     this paragraph shall agree to provide $1 of non-Federal 
     contributions for every $1 of grant funds received under this 
     paragraph.
       ``(F) Limitation on administrative expenses.--A grant 
     recipient may not expend more than 3 percent of any grant 
     provided under this paragraph on administrative expenses.
       ``(4) Operation of alternative fuel stations.--Facilities 
     constructed or upgraded with grant funds received under this 
     subsection shall--
       ``(A) provide alternative fuel available to the public for 
     a period of not less than 4 years;
       ``(B) establish a marketing plan to advance the sale and 
     use of alternative fuels;
       ``(C) prominently display the price of alternative fuel on 
     the marquee and in the station;
       ``(D) provide point of sale materials on alternative fuel;
       ``(E) clearly label the dispenser with consistent 
     materials;
       ``(F) price the alternative fuel at the same margin that is 
     received for unleaded gasoline; and
       ``(G) support and use all available tax incentives to 
     reduce the cost of the alternative fuel to the lowest 
     possible retail price.
       ``(5) Notification requirements.--
       ``(A) Opening.--Not later than the date on which each 
     alternative fuel station begins to offer alternative fuel to 
     the public, the grant recipient that used grant funds to 
     construct such station shall notify the Secretary of Energy 
     of such opening. The Secretary of Energy shall add each new 
     alternative fuel station to the alternative fuel station 
     locator on its Website when it receives notification under 
     this subparagraph.
       ``(B) Semi-annual report.--Not later than 6 months after 
     the receipt of a grant award under this subsection, and every 
     6 months thereafter, each grant recipient shall submit a 
     report to the Secretary of Energy that describes--
       ``(i) the status of each alternative fuel station 
     constructed with grant funds received under this subsection;
       ``(ii) the amount of alternative fuel dispensed at each 
     station during the preceding 6-month period; and
       ``(iii) the average price per gallon of the alternative 
     fuel sold at each station during the preceding 6-month 
     period.
       ``(6) Alternative fuel defined.--For the purposes of this 
     subsection, the term `alternative fuel' means--
       ``(A) any fuel of which at least 85 percent (or such 
     percentage, but not less than 70 percent, as determined by 
     the Secretary, by rule, to provide for requirements relating 
     to cold start, safety, or vehicle functions) of the volume 
     consists of ethanol, natural gas, compressed natural gas, 
     liquefied natural gas, liquefied petroleum gas, or hydrogen; 
     or
       ``(B) any mixture of biodiesel and diesel fuel determined 
     without regard to any use of kerosene that contains at least 
     20 percent biodiesel.''.
       (d) Low-Interest Loan and Grant Program for Retail Delivery 
     of E-85 Fuel.--
       (1) Purposes of loans.--Section 312(a) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1942(a)) is 
     amended--
       (A) in paragraph (9)(B)(ii), by striking ``or'' at the end;
       (B) in paragraph (10), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(11) building infrastructure, including pump stations, 
     for the retail delivery to consumers of any fuel that 
     contains not less than 85 percent ethanol, by volume.''.
       (2) Program.--Subtitle B of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1941 et seq.) is amended by adding 
     at the end the following:

     ``SEC. 320. LOW-INTEREST LOAN AND GRANT PROGRAM FOR RETAIL 
                   DELIVERY OF E-85 FUEL.

       ``(a) In General.--The Secretary shall establish a low-
     interest loan and grant program to assist farmer-owned 
     ethanol producers (including cooperatives and limited 
     liability corporations) to develop and build infrastructure, 
     including pump stations, that is directly related to the 
     retail delivery to consumers of any fuel that contains not 
     less than 85 percent ethanol, by volume.
       ``(b) Loan Terms.--
       ``(1) Amortization.--The repayment of a loan received under 
     this section shall be amortized over the expected life of the 
     infrastructure project that is being financed with the 
     proceeds of the loan.
       ``(2) Interest rate.--The annual interest rate of a loan 
     received under this section shall be fixed at not more than 5 
     percent.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.
       (3) Regulations.--As soon as practicable after the date of 
     the enactment of this Act, the Secretary of Agriculture shall 
     promulgate such regulations as are necessary to carry out the 
     amendments made by this subsection.
                                 ______
                                 
  SA 4713. Mr. FRIST proposed an amendment to the bill S. 3711, to 
enhance the energy independence and security of the United States by 
providing for exploration, development, and production activities for 
mineral resources in the Gulf of Mexico, and for other purposes; as 
follows:

       At the end insert the following:
       The effective date shall be 2 days after the date of 
     enactment.
                                 ______
                                 
  SA 4714. Mr. FRIST proposed an amendment to amendment SA 4713 
proposed by Mr. FRIST to the bill S. 3711, to enhance the energy 
independence and security of the United States by providing for 
exploration, development, and production activities for mineral 
resources in the Gulf of Mexico, and for other purposes; as follows:

       On line 1, strike ``2 days'' and insert ``1 day''.
                                 ______
                                 
  SA 4715. Mr. LAUTENBERG (for himself, Mr. Menendez, and Mr. 
Lieberman) submitted an amendment intended to be proposed by him to the 
bill S. 3711, to enhance the energy independence and security of the 
United States by providing for exploration, development, and production 
activities for mineral resources in the Gulf of Mexico, and for other 
purposes; which was ordered to lie on the table; as follows:


[[Page 16241]]

       At the end, add the following:

     SEC. 6. STATE APPROVAL.

       Notwithstanding any other provision of this Act, the 
     Secretary shall not approve offshore oil or natural gas 
     preleasing, leasing, exploration, or drilling activities in 
     waters that are located in the Mid-Atlantic planning area, 
     North Atlantic planning area, South Atlantic planning area, 
     Straits of Florida planning area, Washington/Oregon planning 
     area, Northern California planning area, Central California 
     planning area, or Southern California planning area without 
     the written approval of the Governor of each coastal State 
     located within 200 miles of the State that has approved, or 
     has requested the Secretary to approve, the oil or natural 
     gas preleasing, leasing, exploration, or drilling activities.

                                 ______
                                 
  SA 4716. Mr. LAUTENBERG (for himself, Mr. Menendez, and Mr. 
Lieberman) submitted an amendment intended to be proposed by him to the 
bill S. 3711, to enhance the energy independence and security of the 
United States by providing for exploration, development, and production 
activities for mineral resources in the Gulf of Mexico, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 6. REMEDIATION OF OIL AND GAS SPILLS.

       (a) In General.--Notwithstanding any other provision of 
     this Act, for any spill that occurs as a result of 
     exploration or drilling in waters in, or the transport of oil 
     or gas from, the Mid-Atlantic planning area, North Atlantic 
     planning area, South Atlantic planning area, Straits of 
     Florida planning area, Washington/Oregon planning area, 
     Northern California planning area, Central California 
     planning area, Southern California planning area, or any 
     other area seaward of any coastal State adjacent to those 
     planning areas--
       (1) 50 percent of the economic damages and environmental 
     restoration costs for any State affected by the spill 
     (including injury to the environment or natural resources of 
     the United States (including the environment or natural 
     resources of a national marine sanctuary, national estuarine 
     research reserve, or national wildlife refuge) or of the 
     coastal State) and any costs of removal and remediation 
     associated with the spill, shall be paid by the 1 or more 
     companies responsible for the exploration, drilling, or 
     transport; and
       (2) 50 percent of the economic damages and environmental 
     restoration costs for any State affected by the spill shall 
     be paid by the State that approved the preleasing, leasing, 
     exploration, or drilling activities off of the coast of the 
     State.
       (b) Liability.--The 1 or more companies and any State 
     responsible for the applicable activity or the approval of 
     the applicable activity under paragraph (1) and (2) of 
     subsection (a), respectively, shall be strictly liable for 
     any injuries, damages, and removal, remediation, and 
     restoration costs from the spill.
       (c) Reimbursement of Federal Expenses.--The 1 or more 
     companies and any State responsible for the applicable 
     activity or the approval of the applicable activity under 
     paragraph (1) and (2) of subsection (a), respectively, shall 
     reimburse the United States for any Federal funds expended to 
     restore or remove the oil or gas, including funds made 
     available--
       (1) from the Oil Spill Liability Trust Fund established by 
     section 9509 of the Internal Revenue Code of 1986;
       (2) from the land and water conservation fund established 
     under section 2 of the Land and Water Conservation Fund Act 
     of 1965 (16 U.S.C. 460l-5); and
       (3) under the Coastal Zone Management Act of 1972 (16 
     U.S.C. 1451 et seq.).

                                 ______
                                 
  SA 4717. Mr. LAUTENBERG (for himself, Mr. Menendez, and Mr. 
Lieberman) submitted an amendment intended to be proposed by him to the 
bill S. 3711, to enhance the energy independence and security of the 
United States by providing for exploration, development, and production 
activities for mineral resources in the Gulf of Mexico, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 6. APPROVAL OF ATLANTIC STATES MARINE FISHERIES 
                   COMMISSION AND PACIFIC FISHERY MANAGEMENT 
                   COUNCIL.

       (a) Atlantic States Marine Fisheries Commission.--
     Notwithstanding any other provision of this Act, the 
     Secretary shall not approve offshore oil or natural gas 
     preleasing, leasing, exploration, or drilling activities in 
     waters that are located in the Mid-Atlantic planning area, 
     North Atlantic planning area, South Atlantic planning area, 
     Straits of Florida planning area, or any other area seaward 
     of any coastal State adjacent to the planning areas without a 
     unanimous vote of approval of the proposed activities by the 
     Atlantic States Marine Fisheries Commission.
       (b) Pacific Fishery Management Council.--Notwithstanding 
     any other provision of this Act, the Secretary shall not 
     approve offshore oil or natural gas preleasing, leasing, 
     exploration, or drilling activities in the Washington/Oregon 
     planning area, Northern California planning area, Central 
     California planning area, Southern California planning area, 
     or any other area seaward of any coastal State adjacent to 
     the planning areas without a unanimous vote of approval of 
     the proposed activities by the Pacific Fishery Management 
     Council.

                                 ______
                                 
  SA 4718. Mr. LAUTENBERG (for himself and Mr. Menendez) submitted an 
amendment intended to be proposed by him to the bill S. 3711, to 
enhance the energy independence and security of the United States by 
providing for exploration, development, and production activities for 
mineral resources in the Gulf of Mexico, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 6. APPROVAL OF MID-ATLANTIC FISHERY MANAGEMENT COUNCIL.

       Notwithstanding any other provision of this Act, the 
     Secretary shall not approve offshore oil or natural gas 
     preleasing, leasing, exploration, or drilling activities in 
     the Mid-Atlantic planning area, the South Atlantic planning 
     area, or any other area seaward of any coastal State adjacent 
     to the Mid-Atlantic or South Atlantic planning areas, without 
     receiving a unanimous vote of approval of the proposed 
     activities by the Mid-Atlantic Fishery Management Council.

                                 ______
                                 
  SA 4719. Mr. BINGAMAN submitted an amendment intended to be proposed 
by him to the bill S. 3711, to enhance the energy independence and 
security of the United States by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. OFFSHORE OIL AND GAS LEASING IN 181 AREA AND 181 
                   SOUTH AREA OF GULF OF MEXICO.

       (a) Definitions.--In this section:
       (1) 181 area.--The term ``181 Area'' means the area 
     identified in map 15, page 58, of the Proposed Final Outer 
     Continental Shelf Oil and Gas Leasing Program for 1997-2002 
     of the Minerals Management Service.
       (2) 181 south area.--The term ``181 South Area'' means any 
     area--
       (A) located--
       (i) south of the 181 Area;
       (ii) west of the Military Mission Line; and
       (iii) in the Central Gulf of Mexico Planning Area of the 
     outer Continental Shelf, as designated in the document 
     entitled ``Draft Proposed Program Outer Continental Shelf Oil 
     and Gas Leasing Program 2007-2012'', dated February 2006;
       (B) excluded from the Proposed Final Outer Continental 
     Shelf Oil and Gas Leasing Program for 1997-2002, dated August 
     1996, of the Minerals Management Service; and
       (C) included in the areas considered for oil and gas 
     leasing, as identified in map 8, page 37 of the document 
     entitled ``Draft Proposed Program Outer Continental Shelf Oil 
     and Gas Leasing Program 2007-2012'', dated February 2006.
       (3) Military mission line.--The term ``Military Mission 
     Line'' means the north-south line at 8641' W. longitude.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior, acting through the Minerals Management 
     Service.
       (b) 181 Area Lease Sale.--Except as otherwise provided in 
     this section, the Secretary shall offer the 181 Area for oil 
     and gas leasing pursuant to the Outer Continental Shelf Lands 
     Act (43 U.S.C. 1331 et seq.) as soon as practicable, but not 
     later than 1 year, after the date of enactment of this Act.
       (c) 181 South Area Lease Sale.--The Secretary shall offer 
     the 181 South Area for oil and gas leasing pursuant to the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) as 
     soon as practicable after the date of enactment of this Act.
       (d) Excluded Areas.--In carrying out this section, the 
     Secretary shall not offer for oil and gas leasing--
       (1) any area east of the Military Mission Line, unless the 
     Secretary of Defense agrees in writing before the area is 
     offered for lease that the area can be developed in a manner 
     that will not interfere with military activities; or
       (2) any area that is within 100 miles of the coastline of 
     the State of Florida.
       (e) Leasing Program.--The 181 Area and 181 South Area shall 
     be offered for lease under this section notwithstanding the 
     omission of the 181 Area or the 181 South Area from any outer 
     Continental Shelf leasing program under section 18 of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1344).
       (f) Conforming Amendment.--Section 105 of the Department of 
     the Interior, Environment, and Related Agencies 
     Appropriations Act, 2006 (Public Law 109-54; 119 Stat. 522) 
     is

[[Page 16242]]

     amended by inserting ``(other than the 181 South Area (as 
     defined in section 2 of the Gulf of Mexico Energy Security 
     Act of 2006))'' after ``lands located outside Sale 181''.

                                 ______
                                 
  SA 4720. Mr. MENENDEZ (for himself, Ms. Cantwell, and Mr. Lieberman, 
and Mr. Lautenberg) submitted an amendment intended to be proposed by 
him to the bill S. 3711, to enhance the energy independence and 
security of the United States by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

     SEC. 6. FEDERAL REQUIREMENT TO PURCHASE ELECTRICITY GENERATED 
                   BY RENEWABLE ENERGY.

       Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 
     15852) is amended by striking subsection (a) and inserting 
     the following:
       ``(a) Requirement.--The President, acting through the 
     Secretary, shall ensure that, of the total quantity of 
     electric energy the Federal Government consumes during any 
     fiscal year, the following amounts shall be renewable energy:
       ``(1) Not less than 5 percent in each of fiscal years 2008 
     and 2009.
       ``(2) Not less than 7.5 percent in each of fiscal years 
     2010 through 2012.
       ``(3) Not less than 10 percent in fiscal years 2013 and 
     each fiscal year thereafter.''.

                                 ______
                                 
  SA 4721. Mr. MENENDEZ (for himself, Ms. Snowe, Mrs. Feinstein, Ms. 
Collins, Mr. Lautenberg, Mrs. Boxer, Mr. Reed, Mr. Nelson of Florida, 
Mr. Lieberman, Ms. Cantwell, Mr. Kerry, Mr. Sarbanes, Mr. Dodd, Mr. 
Kennedy, and Mr. Biden) submitted an amendment intended to be proposed 
by him to the bill S. 3711, to enhance the energy independence and 
security of the United States by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 9, line 5, strike ``or''.
       On page 9, line 17, strike the period at the end and insert 
     a semicolon.
       On page 9, between lines 17 and 18, insert the following:
       (4) any area in the Mid-Atlantic planning area;
       (5) any area in the North Atlantic planning area;
       (6) any area in the South Atlantic planning area;
       (7) any area in the Straits of Florida planning area;
       (8) any area in the Washington/Oregon planning area;
       (9) any area in the Northern California planning area;
       (10) any area in the Central California planning area; or
       (11) any area in the Southern California planning area.
                                 ______
                                 
  SA 4722. Mr. MENENDEZ (for himself, Mr. Lieberman, Mr. Lautenberg, 
and Ms. Cantwell) submitted an amendment intended to be proposed by him 
to the bill S. 3711, to enhance the energy independence and security of 
the United States by providing for exploration, development, and 
production activities for mineral resources in the Gulf of Mexico, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 6. FEDERAL FLEET CONSERVATION REQUIREMENTS.

       (a) In General.--Part J of title IV of the Energy Policy 
     and Conservation Act (42 U.S.C. 6374 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.

       ``(a) Mandatory Reduction in Petroleum Consumption.--
       ``(1) In general.--The Secretary shall issue regulations 
     for Federal fleets subject to section 400AA requiring that 
     not later than October 1, 2009, each Federal agency achieve 
     at least a 20 percent reduction in petroleum consumption, as 
     calculated from the baseline established by the Secretary for 
     fiscal year 1999.
       ``(2) Plan.--
       ``(A) Requirement.--The regulations shall require each 
     Federal agency to develop a plan to meet the required 
     petroleum reduction level.
       ``(B) Measures.--The plan may allow an agency to meet the 
     required petroleum reduction level through--
       ``(i) the use of alternative fuels;
       ``(ii) the acquisition of vehicles with higher fuel 
     economy, including hybrid vehicles;
       ``(iii) the substitution of cars for light trucks;
       ``(iv) an increase in vehicle load factors;
       ``(v) a decrease in vehicle miles traveled;
       ``(vi) a decrease in fleet size; and
       ``(vii) other measures.
       ``(C) Replacement tires.--The regulations shall include a 
     requirement that each Federal agency purchase energy-
     efficient replacement tires for the respective fleet vehicles 
     of the agency.
       ``(b) Federal Employee Incentive Programs for Reducing 
     Petroleum Consumption.--
       ``(1) In general.--Each Federal agency shall actively 
     promote incentive programs that encourage Federal employees 
     and contractors to reduce petroleum through the use of 
     practices such as--
       ``(A) telecommuting;
       ``(B) public transit;
       ``(C) carpooling; and
       ``(D) bicycling.
       ``(2) Monitoring and support for incentive programs.--The 
     Administrator of the General Services Administration, the 
     Director of the Office of Personnel Management, and the 
     Secretary of the Department of Energy shall monitor and 
     provide appropriate support to agency programs described in 
     paragraph (1).''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) 
     is amended by adding at the end of the items relating to part 
     J of title III the following:

``Sec. 400FF. Federal fleet conservation requirements.''.
                                 ______
                                 
  SA 4723. Mr. MENENDEZ (for himself, Mr. Lieberman, Ms. Cantwell, and 
Mr. Lautenberg) submitted an amendment intended to be proposed by him 
to the bill S. 3711, to enhance the energy independence and security of 
the United States by providing for exploration, development, and 
production activities for mineral resources in the Gulf of Mexico, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 6. ASSISTANCE TO STATES TO REDUCE SCHOOL BUS IDLING.

       (a) Statement of Policy.--Congress encourages each local 
     educational agency (as defined in section 9101(26) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801(26))) that receives Federal funds under the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) 
     to develop a policy to reduce the incidence of school bus 
     idling at schools while picking up and unloading students.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy, working in 
     coordination with the Secretary of Education, $5,000,000 for 
     each of fiscal years 2007 through 2012 for use in educating 
     States and local education agencies about--
       (1) benefits of reducing school bus idling; and
       (2) ways in which school bus idling may be reduced.
                                 ______
                                 
  SA 4724. Mr. MENENDEZ (for himself, Mr. Lautenberg, Mr. Lieberman, 
and Ms. Cantwell) submitted an amendment intended to be proposed by him 
to the bill S. 3711, to enhance the energy independence and security of 
the United States by providing for exploration, development, and 
production activities for mineral resources in the Gulf of Mexico, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 6. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS.

       (a) Definitions.--In this section:
       (1) Secretary.--The tern ``Secretary'' means the Secretary 
     of Transportation.
       (2) Transit-oriented development corridor.--The term 
     ``Transit-Oriented Development Corridor'' or ``TODC'' means a 
     geographic area designated by the Secretary under subsection 
     (b).
       (3) Other terms.--The terms ``fixed guide way'', ``local 
     governmental authority'', ``mass transportation'', 
     ``Secretary'', ``State'', and ``urbanized area'' have the 
     meanings given the terms in section 5302 of title 49, United 
     States Code.
       (b) Transit-Oriented Development Corridors.--
       (1) In general.--The Secretary shall develop and carry out 
     a program to designate geographic areas in urbanized areas as 
     Transit-Oriented Development Corridors.
       (2) Criteria.--An area designated as a TODC under paragraph 
     (1) shall include rights-of-way for fixed guide way mass 
     transportation facilities (including commercial development 
     of facilities that have a physical and functional connection 
     with each facility).
       (3) Number of todcs.--In consultation with State 
     transportation departments and metropolitan planning 
     organizations, the Secretary shall designate--
       (A) not fewer than 10 TODCs by December 31, 2015; and
       (B) not fewer than 20 TODCs by December 31, 2025.
       (4) Transit grants.--

[[Page 16243]]

       (A) In general.--The Secretary make grants to eligible 
     states and local governmental authorities to pay the Federal 
     share of the cost of designating geographic areas in 
     urbanized areas as TODCs.
       (B) Application.--Each eligible State or local governmental 
     authority that desires to receive a grant under this 
     paragraph shall submit an application to the Secretary, at 
     such time, in such manner, and accompanied by such additional 
     information as the Secretary may reasonably require.
       (C) Labor standards.--Subchapter IV of chapter 31 of title 
     40, United States Code shall apply to projects that receive 
     funding under this section.
       (D) Federal share.--The Federal share of the cost of a 
     project under this subsection shall be 50 percent.
       (c) TODC Research and Development.--To support effective 
     deployment of grants and incentives under this section, the 
     Secretary shall establish a TODC research and development 
     program to conduct research on the best practices and 
     performance criteria for TODCs.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $50,000,000 for 
     each of fiscal years 2007 through 2012.
                                 ______
                                 
  SA 4725. Mr. MENENDEZ (for himself, Mr. Lautenberg, Ms. Cantwell, and 
Mr. Lieberman) submitted an amendment intended to be proposed by him to 
the bill S. 3711, to enhance the energy independence and security of 
the United States by providing for exploration, development, and 
production activities for mineral resources in the Gulf of Mexico, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 6. EXPANSION OF RESOURCES TO WAVE, CURRENT, TIDAL, AND 
                   OCEAN THERMAL ENERGY.

       (a) 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.''
       (b) 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.''
       (c) 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 
     subparagraph (A), (B), or (C) of subsection (c)(10) 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, 2015, but such term shall not include a 
     facility which includes impoundment structures or a small 
     irrigation power facility.''
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

                                 ______
                                 
  SA 4726. Mr. MENENDEZ (for himself, Ms. Cantwell, Mr. Lautenberg, and 
Mr. Lieberman) submitted an amendment intended to be proposed by him to 
the bill S. 3711, to enhance the energy independence and security of 
the United States by providing for exploration, development, and 
production activities for mineral resources in the Gulf of Mexico, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 6. DEPLOYMENT OF NEW TECHNOLOGIES TO REDUCE OIL USE IN 
                   TRANSPORTATION.

       (a) Fuel From Cellulosic Biomass.--
       (1) In general.--The Secretary of Energy shall provide 
     deployment incentives under this subsection to encourage a 
     variety of projects to produce transportation fuel from 
     cellulosic biomass, relying on different feedstocks in 
     different regions of the United States.
       (2) Project eligibility.--Incentives under this subsection 
     shall be provided on a competitive basis to projects that 
     produce fuel that--
       (A) meet United States fuel and emission specifications;
       (B) help diversify domestic transportation energy supplies; 
     and
       (C) improve or maintain air, water, soil, and habitat 
     quality.
       (3) Incentives.--Incentives under this subsection may 
     consist of--
       (A) loan guarantees under section 1510 of the Energy Policy 
     Act of 2005 (42 U.S.C. 16501), subject to section 1702 of 
     that Act (22 U.S.C. 16512), for the construction of 
     production facilities and supporting infrastructure; or
       (B) production payments through a reverse auction in 
     accordance with paragraph (4).
       (4) Reverse auction.--
       (A) In general.--In providing incentives under this 
     subsection, the Secretary of Energy shall--
       (i) issue regulations under which producers of fuel from 
     cellulosic biomass may bid for production payments under 
     paragraph (3)(B); and
       (ii) solicit bids from producers of different classes of 
     transportation fuel, as the Secretary of Energy determines to 
     be appropriate.
       (B) Requirement.--The rules under subparagraph (A) shall 
     require that incentives be provided to the producers that 
     submit the lowest bid (in terms of cents per gallon) for each 
     class of transportation fuel from which the Secretary of 
     Energy solicits a bid.
       (b) Advanced Technology Vehicles Manufacturing Incentive 
     Program.--
       (1) Definitions.--In this subsection:
       (A) Adjusted fuel economy.--The term ``adjusted fuel 
     economy'' means the average fuel economy of a manufacturer 
     for all light duty motor vehicles produced by the 
     manufacturer, adjusted such that the fuel economy of each 
     vehicle that qualifies for a credit shall be considered to be 
     equal to the average fuel economy for the weight class of the 
     vehicle for model year 2002.
       (B) Advanced lean burn technology motor vehicle.--The term 
     ``advanced lean burn technology motor vehicle'' means a 
     passenger automobile or a light truck with an internal 
     combustion engine that--
       (i) is designed to operate primarily using more air than is 
     necessary for complete combustion of the fuel;
       (ii) incorporates direct injection; and
       (iii) achieves at least 125 percent of the city fuel 
     economy of vehicles in the same size class as the vehicle for 
     model year 2002.
       (C) Advanced technology vehicle.--The term ``advanced 
     technology vehicle'' means a light duty motor vehicle that--
       (i) is a hybrid motor vehicle or an advanced lean burn 
     technology motor vehicle; and
       (ii) meets--

       (I) the Bin 5 Tier II emission standard established in 
     regulations issued by the Administrator of the Environmental 
     Protection Agency under section 202(i) of the Clean Air Act 
     (42 U.S.C. 7521(i)), or a lower-numbered Bin emission 
     standard;
       (II) any new emission standard for fine particulate matter 
     prescribed by the Administrator under that Act (42 U.S.C. 
     7401 et seq.); and
       (III) at least 125 percent of the base year city fuel 
     economy for the weight class of the vehicle.

       (D) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the cost of engineering tasks 
     relating to--
       (i) incorporating qualifying components into the design of 
     advanced technology vehicles; and
       (ii) designing new tooling and equipment for production 
     facilities that produce qualifying components or advanced 
     technology vehicles.
       (E) Hybrid motor vehicle.--The term ``hybrid motor 
     vehicle'' means a motor vehicle that draws propulsion energy 
     from onboard sources of stored energy that are--
       (i) an internal combustion or heat engine using combustible 
     fuel; and
       (ii) a rechargeable energy storage system.
       (F) Qualifying components.--The term ``qualifying 
     components'' means components that the Secretary of Energy 
     determines to be--
       (i) specially designed for advanced technology vehicles; 
     and
       (ii) installed for the purpose of meeting the performance 
     requirements of advanced technology vehicles.
       (2) Manufacturer facility conversion awards.--The Secretary 
     of Energy shall provide facility conversion funding awards 
     under this subsection to automobile manufacturers and 
     component suppliers to pay not more than 30 percent of the 
     cost of--
       (A) reequipping or expanding an existing manufacturing 
     facility in the United States to produce--
       (i) qualifying advanced technology vehicles; or
       (ii) qualifying components; and
       (B) engineering integration performed in the United States 
     of qualifying vehicles and qualifying components.
       (3) Period of availability.--An award under paragraph (2) 
     shall apply to--
       (A) facilities and equipment placed in service before 
     December 30, 2017; and
       (B) engineering integration costs incurred during the 
     period beginning on the date of enactment of this Act and 
     ending on December 30, 2017.
       (4) Improvement.--The Secretary of Energy shall issue 
     regulations that require

[[Page 16244]]

     that, in order for an automobile manufacturer to be eligible 
     for an award under this subsection during a particular year, 
     the adjusted average fuel economy of the manufacturer for 
     light duty vehicles produced by the manufacturer during the 
     most recent year for which data are available shall be not 
     less than the average fuel economy for all light duty motor 
     vehicles of the manufacturer for model year 2002.
                                 ______
                                 
  SA 4727. Mrs. BOXER submitted an amendment intended to be proposed by 
her to the bill S. 3711, to enhance the energy independence and 
security of the United States by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

     SEC. 6. CELLULOSIC ETHANOL RESEARCH, DEVELOPMENT, AND 
                   DEMONSTRATION PROGRAM.

       (a) In General.--There is established in the Department of 
     Energy a program under which the Secretary of Energy shall 
     provide to eligible entities, as determined by the Secretary, 
     grants for the conduct of research, development, and 
     demonstration projects on the use of cellulosic ethanol for 
     vehicle fuel.
       (b) Priority.--In providing grants under subsection (a), 
     the Secretary of Energy shall give priority to projects that 
     use alternative or renewable energy sources in producing 
     cellulosic ethanol.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $500,000,000 for 
     the period of fiscal years 2007 through 2013.
                                 ______
                                 
  SA 4728. Mrs. BOXER (for herself and Mrs. Feinstein) submitted an 
amendment intended to be proposed by her to the bill S. 3711, to 
enhance the energy independence and security of the United States by 
providing for exploration, development, and production activities for 
mineral resources in the Gulf of Mexico, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of the bill, add the following:

     SEC. 6. PROHIBITION OF OIL AND GAS LEASING IN CERTAIN AREAS 
                   OF THE OUTER CONTINENTAL SHELF.

       Section 8 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337) is amended by adding at the end the following:
       ``(q) Prohibition of Oil and Gas Leasing in Certain Areas 
     of the Outer Continental Shelf.--
       ``(1) In general.--Notwithstanding any other provision of 
     this Act or any other law and except as provided in paragraph 
     (2), beginning on the date of enactment of this subsection, 
     the conduct of oil and gas preleasing, leasing, and related 
     activities is prohibited in areas of the outer Continental 
     Shelf located off the coast of the State of California.
       ``(2) Effect.--Nothing in this subsection affects any 
     rights under leases issued under this Act before the date of 
     enactment of this subsection.''.

     SEC. 7. COMPREHENSIVE INVENTORY OF OUTER CONTINENTAL SHELF 
                   OIL AND NATURAL GAS RESOURCES.

       Section 357(a) of the Energy Policy Act of 2005 (42 U.S.C. 
     15912(a)) is amended by inserting after ``Continental Shelf'' 
     the following: ``(other than the areas of the outer 
     Continental Shelf off the coast of the State of 
     California)''.
                                 ______
                                 
  SA 4729. Mrs. BOXER submitted an amendment intended to be proposed by 
her to the bill S. 3711, to enhance the energy independence and 
security of the United States by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

     SEC. 6. FEDERAL FLEET FUEL ECONOMY.

       Section 32917 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(a) New Vehicles.--
       ``(1) In general.--Except as provided in paragraph (2), 
     each passenger vehicle purchased, or leased for at least 60 
     consecutive days, by an executive agency after the date of 
     the enactment of the Gulf of Mexico Energy Security Act of 
     2006 shall be as fuel efficient as possible.
       ``(2) Waiver.--An executive agency may submit a written 
     request to Congress for a waiver of the requirement under 
     paragraph (1) in an emergency situation.''.
                                 ______
                                 
  SA 4730. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 3711, to enhance the energy independence and 
security of the United States by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ASSISTANT SECRETARY FOR ADVANCED ENERGY RESEARCH, 
                   TECHNOLOGY DEVELOPMENT, AND DEPLOYMENT.

       (a) Establishment.--
       (1) In general.--The Secretary of Energy shall establish in 
     the Department of Energy the position of Assistant Secretary 
     for Advanced Energy Research, Technology Development, and 
     Deployment (referred to in this section as the ``Assistant 
     Secretary''), to be headed by, and to report to, the 
     Secretary.
       (2) Qualifications.--The Assistant Secretary shall be an 
     individual with--
       (A) an advanced education degree in energy technology; and
       (B) substantial commercial research and technology 
     development and deployment experience.
       (b) Mission.--The mission of the Assistant Secretary is--
       (1) to implement an innovative energy research, technology 
     development, and deployment program to--
       (A) increase national security by significantly reducing 
     petroleum and imported fuels consumption;
       (B) significantly improve the efficiency of electricity use 
     and the reliability of the electricity system; and
       (C) significantly reduce greenhouse gas emissions; and
       (2) to sponsor a diverse portfolio of cutting-edge, high-
     payoff research, development, and deployment projects to 
     carry out the program.
       (c) Experimental Personnel Authority.--The Assistant 
     Secretary may staff the office of the Assistant Secretary 
     primarily using a program of experimental use of special 
     personnel management authority in order to facilitate 
     recruitment of eminent experts in science or engineering for 
     management of research and development projects and programs 
     administered by the Assistant Secretary under similar terms 
     and conditions as the authority is exercised under section 
     1101 of the Strom Thurmond National Defense Authorization Act 
     for Fiscal Year 1999 (Public Law 105-261; 5 U.S.C. 3104 
     note), as determined by the Assistant Secretary.
       (d) Transactions Other Than Contracts and Grants.--To carry 
     out projects under this section, the Assistant Secretary may 
     enter into transactions to carry out advanced research 
     projects under this subsection under similar terms and 
     conditions as the authority is exercised under section 646(g) 
     of the Department of Energy Organization Act (42 U.S.C. 
     7256(g)).
       (e) Prizes for Advanced Technology Achievements.--
       (1) In general.--Subject to paragraphs (2) through (4), the 
     Assistant Secretary may carry out a program to award cash 
     prizes in recognition of outstanding achievements in basic, 
     advanced, and applied research, technology development, and 
     prototype development that have the potential to advance the 
     mission described in subsection (b) under similar terms and 
     conditions as the authority is exercised under section 1008 
     of the Energy Policy Act of 2005 (42 U.S.C. 16396).
       (2) Competition requirements.--In carrying out this 
     subsection, the Assistant Secretary shall--
       (A) use a competitive process for the selection of 
     recipients of cash prizes; and
       (B) conduct widely-advertised solicitation of submissions 
     of research results, technology developments, and prototypes.
       (3) Maximum amount for all cash prizes.--The total amount 
     of all cash prizes awarded for a fiscal year under this 
     subsection may not exceed $50,000,000.
       (4) Maximum amount of individual cash prizes.--The amount 
     of an individual cash prize awarded under this subsection may 
     not exceed $10,000,000 unless the amount of the award is 
     approved by the Secretary of Energy.
       (f) Annual Reports.--As soon as practicable after the end 
     of each fiscal year for which the Assistant Secretary 
     receives funds under subsection (h), the Assistant Secretary 
     shall submit to the Committee on Energy and Natural Resources 
     of the Senate and the Committee on Energy and Commerce, and 
     the Committee on Science, of the House of Representatives a 
     report on the progress, challenges, future milestones, and 
     strategic plan of the Assistant Secretary, including--
       (1) a description of, and rationale for, any changes in the 
     strategic plan;
       (2) the adequacy of human and financial resources necessary 
     to achieve the mission described in subsection (b); and
       (3) in the case of cash prizes awarded under subsection 
     (e), a description of--
       (A) the applications of the research, technology, or 
     prototypes for which prizes were awarded;
       (B) the total amount of the prizes that were awarded;
       (C) the methods used for solicitation and evaluation of 
     submissions and an assessment of the effectiveness of those 
     methods; and
       (D) recommendations to improve the prize program.
       (g)  Relationship to Other Authority.--The program under 
     this section may be carried out in conjunction with, or in 
     addition

[[Page 16245]]

     to, the exercise of any other authority of the Assistant 
     Secretary to acquire, support, or stimulate basic, advanced, 
     and applied research, technology development, or prototype 
     projects.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $1,000,000,000 for fiscal year 2007; and
       (2) $2,000,000,000 for each of fiscal years 2008 through 
     2011.
                                 ______
                                 
  SA 4731. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 3711, to enhance the energy independence and 
security of the United States by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

     SEC. 6. ENERGY SAVINGS PERFORMANCE CONTRACTS.

       (a) Retention of Savings.--Section 546(c) of the National 
     Energy Conservation Policy Act (42 U.S.C. 8256(c)) is amended 
     by striking paragraph (5).
       (b) Financing Flexibility.--Section 801(a)(2) of the 
     National Energy Conservation Policy Act (42 U.S.C. 
     8287(a)(2)) is amended by adding at the end the following:
       ``(E) Separate contracts.--In carrying out a contract under 
     this title, a Federal agency may--
       ``(i) enter into a separate contract for energy services 
     and conservation measures under the contract; and
       ``(ii) provide all or part of the financing necessary to 
     carry out the contract.''.
       (c) Definition of Energy Savings.--Section 804(2) of the 
     National Energy Conservation Policy Act (42 U.S.C. 8287c(2)) 
     is amended--
       (1) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), respectively, and indenting 
     appropriately;
       (2) by striking ``means a reduction'' and inserting 
     ``means--
       ``(A) a reduction'';
       (3) by striking the period at the end and inserting a 
     semicolon; and
       (4) by adding at the end the following:
       ``(B) the increased efficient use of an existing energy 
     source by cogeneration or heat recovery, and installation of 
     renewable energy systems;
       ``(C) the sale or transfer of electrical or thermal energy 
     generated on-site, but in excess of Federal needs, to 
     utilities or non-Federal energy users; and
       ``(D) the increased efficient use of existing water sources 
     in interior or exterior applications.''.
       (d) Energy and Cost Savings in Nonbuilding Applications.--
       (1) Definitions.--In this subsection:
       (A) Nonbuilding application.--The term ``nonbuilding 
     application'' means--
       (i) any class of vehicles, devices, or equipment that is 
     transportable under the power of the applicable vehicle, 
     device, or equipment by land, sea, or air and that consumes 
     energy from any fuel source for the purpose of--

       (I) that transportation; or
       (II) maintaining a controlled environment within the 
     vehicle, device, or equipment; and

       (ii) any federally-owned equipment used to generate 
     electricity or transport water.
       (B) Secondary savings.--
       (i) In general.--The term ``secondary savings'' means 
     additional energy or cost savings that are a direct 
     consequence of the energy savings that result from the energy 
     efficiency improvements that were financed and implemented 
     pursuant to an energy savings performance contract.
       (ii) Inclusions.--The term ``secondary savings'' includes--

       (I) energy and cost savings that result from a reduction in 
     the need for fuel delivery and logistical support;
       (II) personnel cost savings and environmental benefits; and
       (III) in the case of electric generation equipment, the 
     benefits of increased efficiency in the production of 
     electricity, including revenues received by the Federal 
     Government from the sale of electricity so produced.

       (2) Study.--
       (A) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary of Energy and the 
     Secretary of Defense shall jointly conduct, and submit to 
     Congress and the President a report of, a study of the 
     potential for the use of energy savings performance contracts 
     to reduce energy consumption and provide energy and cost 
     savings in nonbuilding applications.
       (B) Requirements.--The study under this subsection shall 
     include--
       (i) an estimate of the potential energy and cost savings to 
     the Federal Government, including secondary savings and 
     benefits, from increased efficiency in nonbuilding 
     applications;
       (ii) an assessment of the feasibility of extending the use 
     of energy savings performance contracts to nonbuilding 
     applications, including an identification of any regulatory 
     or statutory barriers to such use; and
       (iii) such recommendations as the Secretary of Energy and 
     Secretary of Defense determine to be appropriate.

                                 ______
                                 
  SA 4732. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 3711, to enhance the energy independence and 
security of the United Statese by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

            TITLE II--ELIMINATING UNNECESSARY OIL TAX BREAKS

     SEC. 201. ELIMINATION OF DEDUCTION FOR INTANGIBLE DRILLING 
                   AND DEVELOPMENT COSTS FOR MAJOR OIL COMPANIES.

       (a) In General.--Section 263(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new sentences: ``This subsection shall not apply during any 
     taxable year with respect to a major integrated oil company 
     (as defined in section 43(f)(2)) if during the preceding 
     taxable year for the production of oil, the average price of 
     crude oil in the United States is greater than $34.71 per 
     barrel, and for the production of natural gas, the average 
     wellhead price of natural gas in the United States is greater 
     than $4.34 per 1,000 cubic feet. For purposes of the 
     preceding sentence, the Secretary shall determine average 
     prices, taking into consideration the most recent data 
     reported by the Energy Information Administration. For 
     taxable years beginning after December 31, 2007, each dollar 
     amount specified in this subsection shall be adjusted to 
     reflect changes for the 12-month period ending the preceding 
     September 30 in the Consumer Price Index for All Urban 
     Consumers published by the Bureau of Labor Statistics of the 
     Department of Labor.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 202. ELIMINATION OF ENHANCED OIL RECOVERY CREDIT FOR 
                   MAJOR OIL COMPANIES.

       (a) In General.--Section 43 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(f) Nonapplication of Section.--
       ``(1) In general.--This section shall not apply during any 
     taxable year with respect to a major integrated oil company 
     if during the preceding taxable year for the production of 
     oil, the average price of crude oil in the United States is 
     greater than $34.71 per barrel. For purposes of the preceding 
     sentence, the Secretary shall determine average prices, 
     taking into consideration the most recent data reported by 
     the Energy Information Administration. For taxable years 
     beginning after December 31, 2007, the dollar amount 
     specified in this paragraph shall be adjusted to reflect 
     changes for the 12-month period ending the preceding 
     September 30 in the Consumer Price Index for All Urban 
     Consumers published by the Bureau of Labor Statistics of the 
     Department of Labor.
       ``(2) Major integrated oil company.--For purposes of this 
     subsection, the term `major integrated oil company' means, 
     with respect to any taxable year, a producer of crude oil--
       ``(A) which has an average daily worldwide production of 
     crude oil of at least 500,000 barrels for the taxable year,
       ``(B) which had gross receipts in excess of $1,000,000,000 
     for its last taxable year ending during calendar year 2005, 
     and
       ``(C) to whom subsection (c) of section 613A does not apply 
     by reason of paragraph (4) of section 613A(d), determined--
       ``(i) by substituting `15 percent' for `5 percent' each 
     place it occurs in paragraph (3) of section 613A(d), and
       ``(ii) without regard to whether subsection (c) of section 
     613A does not apply by reason of paragraph (2) of section 
     613A(d).
     For purposes of subparagraphs (A) and (B), all persons 
     treated as a single employer under subsections (a) and (b) of 
     section 52 shall be treated as 1 person and, in case of a 
     short taxable year, the rule under section 448(c)(3)(B) shall 
     apply.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 203. OIL AND GAS ROYALTY-RELATED AMENDMENTS.

       (a) Repeal.--Sections 344 through 346 of the Energy Policy 
     Act of 2005 (42 U.S.C. 15902 et seq.) are repealed.
       (b) Termination of Alaska Offshore Royalty Suspension.--
     Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1337(a)(3)(B)) is amended by striking ``and in the 
     Planning Areas offshore Alaska''.

     SEC. 204. EXTENSION OF ELECTION TO EXPENSE CERTAIN 
                   REFINERIES.

       (a) Extension.--
       (1) In general.--Section 179C(c)(1) of the Internal Revenue 
     Code of 1986 (defining qualified refinery property) is 
     amended--
       (A) by striking ``and before January 1, 2012'' in 
     subparagraph (B) and inserting ``and, in the case of any 
     qualified refinery described in subsection (d)(1), before 
     January 1, 2012'', and
       (B) by inserting ``if described in subsection (d)(1)'' 
     after ``of which'' in subparagraph (F)(i).

[[Page 16246]]

       (2) Conforming amendment.--Subsection (d) of section 179C 
     of the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(d) Qualified Refinery.--For purposes of this section, 
     the term `qualified refinery' means any refinery located in 
     the United States which is designed to serve the primary 
     purpose of processing liquid fuel from--
       ``(1) crude oil, or
       ``(2) qualified fuels (as defined in section 45K(c)).''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect as if included in the amendment made by 
     section 1323(a) of the Energy Policy Act of 2005.
       (b) Nonapplication for Major Oil Companies.--
       (1) In general.--Section 179C of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(i) Nonapplication of Section.--
       ``(1) In general.--This section shall not apply during any 
     taxable year with respect to a major integrated oil company 
     if during the preceding taxable year for the production of 
     oil, the average price of crude oil in the United States is 
     greater than $34.71 per barrel. For purposes of the preceding 
     sentence, the Secretary shall determine average prices, 
     taking into consideration the most recent data reported by 
     the Energy Information Administration. For taxable years 
     beginning after December 31, 2007, the dollar amount 
     specified in this paragraph shall be adjusted to reflect 
     changes for the 12-month period ending the preceding 
     September 30 in the Consumer Price Index for All Urban 
     Consumers published by the Bureau of Labor Statistics of the 
     Department of Labor.
       ``(2) Major integrated oil company.--For purposes of this 
     subsection, the term `major integrated oil company' means, 
     with respect to any taxable year, a producer of crude oil--
       ``(A) which has an average daily worldwide production of 
     crude oil of at least 500,000 barrels for the taxable year,
       ``(B) which had gross receipts in excess of $1,000,000,000 
     for its last taxable year ending during calendar year 2005, 
     and
       ``(C) to whom subsection (c) of section 613A does not apply 
     by reason of paragraph (4) of section 613A(d), determined--
       ``(i) by substituting `15 percent' for `5 percent' each 
     place it occurs in paragraph (3) of section 613A(d), and
       ``(ii) without regard to whether subsection (c) of section 
     613A does not apply by reason of paragraph (2) of section 
     613A(d).
     For purposes of subparagraphs (A) and (B), all persons 
     treated as a single employer under subsections (a) and (b) of 
     section 52 shall be treated as 1 person and, in case of a 
     short taxable year, the rule under section 448(c)(3)(B) shall 
     apply.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 205. ELIMINATION OF AMORTIZATION OF GEOLOGICAL AND 
                   GEOPHYSICAL EXPENDITURES FOR MAJOR OIL 
                   COMPANIES.

       (a) In General.--Section 167(h) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(5) Nonapplication of section.--
       ``(A) In general.--This subsection shall not apply during 
     any taxable year with respect to a major integrated oil 
     company if during the preceding taxable year for the 
     production of oil, the average price of crude oil in the 
     United States is greater than $34.71 per barrel, and for the 
     production of natural gas, the average wellhead price of 
     natural gas in the United States is greater than $4.34 per 
     1,000 cubic feet. For purposes of the preceding sentence, the 
     Secretary shall determine average prices, taking into 
     consideration the most recent data reported by the Energy 
     Information Administration. For taxable years beginning after 
     December 31, 2007, each dollar amount specified in this 
     subparagraph shall be adjusted to reflect changes for the 12-
     month period ending the preceding September 30 in the 
     Consumer Price Index for All Urban Consumers published by the 
     Bureau of Labor Statistics of the Department of Labor.
       ``(B) Major integrated oil company.--For purposes of this 
     paragraph, the term `major integrated oil company' means, 
     with respect to any taxable year, a producer of crude oil--
       ``(i) which has an average daily worldwide production of 
     crude oil of at least 500,000 barrels for the taxable year,
       ``(ii) which had gross receipts in excess of $1,000,000,000 
     for its last taxable year ending during calendar year 2005, 
     and
       ``(iii) to whom subsection (c) of section 613A does not 
     apply by reason of paragraph (4) of section 613A(d), 
     determined--

       ``(I) by substituting `15 percent' for `5 percent' each 
     place it occurs in paragraph (3) of section 613A(d), and
       ``(II) without regard to whether subsection (c) of section 
     613A does not apply by reason of paragraph (2) of section 
     613A(d).

     For purposes of subparagraphs (A) and (B), all persons 
     treated as a single employer under subsections (a) and (b) of 
     section 52 shall be treated as 1 person and, in case of a 
     short taxable year, the rule under section 448(c)(3)(B) shall 
     apply.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on and after the date of the enactment of 
     this Act.

     SEC. 206. REVALUATION OF LIFO INVENTORIES OF MAJOR INTEGRATED 
                   OIL COMPANIES.

       (a) General Rule.--Notwithstanding any other provision of 
     law, if a taxpayer is a major integrated oil company for its 
     last taxable year ending in calendar year 2005, the taxpayer 
     shall--
       (1) increase, effective as of the close of such taxable 
     year, the value of each historic LIFO layer of inventories of 
     crude oil, natural gas, or any other petroleum product 
     (within the meaning of section 4611) by the layer adjustment 
     amount, and
       (2) decrease its cost of goods sold for such taxable year 
     by the aggregate amount of the increases under paragraph (1).
     If the aggregate amount of the increases under paragraph (1) 
     exceed the taxpayer's cost of goods sold for such taxable 
     year, the taxpayer's gross income for such taxable year shall 
     be increased by the amount of such excess.
       (b) Layer Adjustment Amount.--For purposes of this 
     section--
       (1) In general.--The term ``layer adjustment amount'' 
     means, with respect to any historic LIFO layer, the product 
     of--
       (A) $18.75, and
       (B) the number of barrels of crude oil (or in the case of 
     natural gas or other petroleum products, the number of 
     barrel-of-oil equivalents) represented by the layer.
       (2) Barrel-of-oil equivalent.--The term ``barrel-of-oil 
     equivalent'' has the meaning given such term by section 
     29(d)(5) (as in effect before its redesignation by the Energy 
     Tax Incentives Act of 2005).
       (c) Application of Requirement.--
       (1) No change in method of accounting.--Any adjustment 
     required by this section shall not be treated as a change in 
     method of accounting.
       (2) Underpayments of estimated tax.--No addition to the tax 
     shall be made under section 6655 of the Internal Revenue Code 
     of 1986 (relating to failure by corporation to pay estimated 
     tax) with respect to any underpayment of an installment 
     required to be paid with respect to the taxable year 
     described in subsection (a) to the extent such underpayment 
     was created or increased by this section.
       (d) Major Integrated Oil Company.--For purposes of this 
     section, the term ``major integrated oil company'' has the 
     meaning given such term by section 43(f)(2) of the Internal 
     Revenue Code of 1986.

     SEC. 207. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES 
                   WHICH ARE DUAL CAPACITY TAXPAYERS.

       (a) In General.--Section 901 of the Internal Revenue Code 
     of 1986 (relating to credit for taxes of foreign countries 
     and of possessions of the United States) is amended by 
     redesignating subsection (m) as (n) and by inserting after 
     subsection (l) the following new subsection:
       ``(m) Special Rules Relating to Major Integrated Oil 
     Companies Which Are Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer which is a major integrated oil company to a foreign 
     country or possession of the United States for any period 
     shall not be considered a tax--
       ``(A) if, for such period, the foreign country or 
     possession does not impose a generally applicable income tax, 
     or
       ``(B) to the extent such amount exceeds the amount 
     (determined in accordance with regulations) which--
       ``(i) is paid by such dual capacity taxpayer pursuant to 
     the generally applicable income tax imposed by the country or 
     possession, or
       ``(ii) would be paid if the generally applicable income tax 
     imposed by the country or possession were applicable to such 
     dual capacity taxpayer.
     Nothing in this paragraph shall be construed to imply the 
     proper treatment of any such amount not in excess of the 
     amount determined under subparagraph (B).
       ``(2) Dual capacity taxpayer.--For purposes of this 
     subsection, the term `dual capacity taxpayer' means, with 
     respect to any foreign country or possession of the United 
     States, a person who--
       ``(A) is subject to a levy of such country or possession, 
     and
       ``(B) receives (or will receive) directly or indirectly a 
     specific economic benefit (as determined in accordance with 
     regulations) from such country or possession.
       ``(3) Generally applicable income tax.--For purposes of 
     this subsection--
       ``(A) In general.--The term `generally applicable income 
     tax' means an income tax (or a series of income taxes) which 
     is generally imposed under the laws of a foreign country or 
     possession on income derived from the conduct of a trade or 
     business within such country or possession.
       ``(B) Exceptions.--Such term shall not include a tax unless 
     it has substantial application, by its terms and in practice, 
     to--
       ``(i) persons who are not dual capacity taxpayers, and
       ``(ii) persons who are citizens or residents of the foreign 
     country or possession.
       ``(4) Major integrated oil company.--For purposes of this 
     subsection, the term `major integrated oil company' has the 
     meaning given such term by section 43(f)(2).''.

[[Page 16247]]

       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxes paid or accrued in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Contrary treaty obligations upheld.--The amendments 
     made by this section shall not apply to the extent contrary 
     to any treaty obligation of the United States.

     SEC. 208. DENIAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, NATURAL GAS, OR 
                   PRIMARY PRODUCTS THEREOF.

       (a) In General.--Subparagraph (B) of section 199(c)(4) of 
     the Internal Revenue Code of 1986 (relating to exceptions) is 
     amended by striking ``or'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, or'', and by inserting after clause (iii) the following 
     new clause:
       ``(iv) in the case of any major integrated oil company (as 
     defined in section 43(f)(2)), the production, refining, 
     processing, transportation, or distribution of oil, natural 
     gas, or any primary product thereof during any taxable year 
     described in section 167(h)(5)(A).''.
       (b) Conforming Amendments.--Section 199(c)(4) of the 
     Internal Revenue Code of 1986 is amended--
       (1) in subparagraph (A)(i)(III) by striking ``electricity, 
     natural gas,'' and inserting ``electricity'', and
       (2) in subparagraph (B)(ii) by striking ``electricity, 
     natural gas,'' and inserting ``electricity''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 209. RULES RELATING TO FOREIGN OIL AND GAS INCOME.

       (a) Separate Basket for Foreign Tax Credit.--
       (1) Years before 2007.--Paragraph (1) of section 904(d) of 
     the Internal Revenue Code of 1986 (relating to separate 
     application of section with respect to certain categories of 
     income), as in effect for years beginning before 2007, is 
     amended by striking `and' at the end of subparagraph (H), by 
     redesignating subparagraph (I) as subparagraph (J), and by 
     inserting after subparagraph (H) the following new 
     subparagraph:
       ``(I) foreign oil and gas income, and''.
       (2) 2007 and after.--Paragraph (1) of section 904(d) of 
     such Code, as in effect for years beginning after 2006, is 
     amended by striking ``and'' at the end of subparagraph (A), 
     by striking the period at the end of subparagraph (B) and 
     inserting ``, and'', and by adding at the end the following:
       ``(C) foreign oil and gas income.''.
       (b) Definition.--
       (1) Years before 2007.--Paragraph (2) of section 904(d) of 
     the Internal Revenue Code of 1986, as in effect for years 
     beginning before 2007, is amended by redesignating 
     subparagraphs (H) and (I) as subparagraphs (I) and (J), 
     respectively, and by inserting after subparagraph (G) the 
     following new subparagraph:
       ``(H) Foreign oil and gas income.--The term `foreign oil 
     and gas income' has the meaning given such term by section 
     954(g).''.
       (2) 2007 and after.--Section 904(d)(2) of such Code, as in 
     effect for years after 2006, is amended by redesignating 
     subparagraphs (J) and (K) as subparagraphs (K) and (L) and by 
     inserting after subparagraph (I) the following:
       ``(J) Foreign oil and gas income.--For purposes of this 
     section--
       ``(i) In general.--The term `foreign oil and gas income' 
     has the meaning given such term by section 954(g).
       ``(ii) Coordination.--Passive category income and general 
     category income shall not include foreign oil and gas income 
     (as so defined).''.
       (c) Conforming Amendments.--
       (1) Section 904(d)(3)(F)(i) of the Internal Revenue Code of 
     1986 is amended by striking ``or (E)'' and inserting ``(E), 
     or (I)''.
       (2) Section 907(a) of such Code is hereby repealed.
       (3) Section 907(c)(4) of such Code is hereby repealed.
       (4) Section 907(f) of such Code is hereby repealed.
       (d) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after the date of the 
     enactment of this Act.
       (2) Years after 2006.--The amendments made by paragraphs 
     (1)(B) and (2)(B) shall apply to taxable years beginning 
     after December 31, 2006.
       (3) Transitional rules.--
       (A) Separate basket treatment.--Any taxes paid or accrued 
     in a taxable year beginning on or before the date of the 
     enactment of this Act, with respect to income which was 
     described in subparagraph (I) of section 904(d)(1) of such 
     Code (as in effect on the day before the date of the 
     enactment of this Act), shall be treated as taxes paid or 
     accrued with respect to foreign oil and gas income to the 
     extent the taxpayer establishes to the satisfaction of the 
     Secretary of the Treasury that such taxes were paid or 
     accrued with respect to foreign oil and gas income.
       (B) Carryovers.--Any unused oil and gas extraction taxes 
     which under section 907(f) of such Code (as so in effect) 
     would have been allowable as a carryover to the taxpayer's 
     first taxable year beginning after the date of the enactment 
     of this Act (without regard to the limitation of paragraph 
     (2) of such section 907(f) for first taxable year) shall be 
     allowed as carryovers under section 904(c) of such Code in 
     the same manner as if such taxes were unused taxes under such 
     section 904(c) with respect to foreign oil and gas extraction 
     income.
       (C) Losses.--The amendment made by subsection (c)(3) shall 
     not apply to foreign oil and gas extraction losses arising in 
     taxable years beginning on or before the date of the 
     enactment of this Act.

     SEC. 210. ELIMINATION OF DEFERRAL FOR FOREIGN OIL AND GAS 
                   EXTRACTION INCOME.

       (a) General Rule.--Paragraph (1) of section 954(g) of the 
     Internal Revenue Code of 1986 (defining foreign base company 
     oil related income) is amended to read as follows:
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the term `foreign oil and gas income' means, in 
     the case of any major integrated oil company (as defined in 
     section 43(f)(2)) during any taxable year described in 
     section 167(h)(5)(A), any income of a kind which would be 
     taken into account in determining the amount of--
       ``(A) foreign oil and gas extraction income (as defined in 
     section 907(c)), or
       ``(B) foreign oil related income (as defined in section 
     907(c)).''.
       (b) Conforming Amendments.--
       (1) Subsections (a)(5), (b)(5), and (b)(6) of section 954, 
     and section 952(c)(1)(B)(ii)(I) of the Internal Revenue Code 
     of 1986, are each amended by striking ``base company oil 
     related income'' each place it appears (including in the 
     heading of subsection (b)(8)) and inserting ``oil and gas 
     income''.
       (2) Subsection (b)(4) of section 954 of such Code is 
     amended by striking ``base company oil-related income'' and 
     inserting ``oil and gas income''.
       (3) The subsection heading for subsection (g) of section 
     954 of such Code is amended by striking ``Foreign Base 
     Company Oil Related Income'' and inserting ``Foreign Oil and 
     Gas Income''.
       (4) Subparagraph (A) of section 954(g)(2) of such Code is 
     amended by striking ``foreign base company oil related 
     income'' and inserting ``foreign oil and gas income''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after the date of the enactment of this Act, and to 
     taxable years of United States shareholders ending with or 
     within such taxable years of foreign corporations.

                 TITLE III--EXPANDING ENERGY EFFICIENCY

     SEC. 301. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS 
                   DEDUCTION.

       Section 179D(h) of the Internal Revenue Code of 1986 
     (relating to termination) is amended by striking ``2007'' and 
     inserting ``2014''.

     SEC. 302. EXTENSION AND EXPANSION OF NEW ENERGY EFFICIENT 
                   HOME CREDIT.

       (a) Extension.--Section 45L(g) of the Internal Revenue Code 
     of 1986 (relating to termination) is amended by striking 
     ``2007'' and inserting ``2014''.
       (b) Inclusion of 30 Percent Homes.--
       (1) In general.--Section 45L(c) of the Internal Revenue 
     Code of 1986 (relating to energy saving requirements) is 
     amended--
       (A) by striking ``or'' at the end of paragraph (2);
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) certified--
       ``(A) to have a level of annual heating and cooling energy 
     consumption which is at least 30 percent below the annual 
     level described in paragraph (1), and
       ``(B) to have building envelope component improvements 
     account for at least 1/3 of such 30 percent, or.''.
       (2) Applicable amount of credit.--Section 45L(a)(2) is 
     amended by striking ``paragraph (3)'' and inserting 
     ``paragraph (3) or (4)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to qualified new energy efficient homes acquired 
     after the date of the enactment of this Act.

     SEC. 303. EXTENSION OF NONBUSINESS ENERGY PROPERTY CREDIT.

       Section 25C(g) of the Internal Revenue Code of 1986 
     (relating to termination) is amended by striking ``2007'' and 
     inserting ``2014''.

     SEC. 304. EXTENSION AND MODIFICATION OF RESIDENTIAL ENERGY 
                   EFFICIENT PROPERTY CREDIT.

       (a) Extension.--Section 25D(g) of the Internal Revenue Code 
     of 1986 (relating to termination) is amended by striking 
     ``2007'' and inserting ``2014''.
       (b) Modification of Maximum Credit.--Paragraph (1) of 
     section 25D(b) of the Internal Revenue Code of 1986 (relating 
     to limitations) is amended to read as follows:
       ``(1) Maximum credit.--The credit allowed under subsection 
     (a) for any taxable year shall not exceed--
       ``(A) $1,000 with respect to each half kilowatt of capacity 
     of qualified photovoltaic

[[Page 16248]]

     property for which qualified photovoltaic property 
     expenditures are made,
       ``(B) $2,000 with respect to any qualified solar water 
     heating property expenditures, and
       ``(C) $500 with respect to each half kilowatt of capacity 
     of qualified fuel cell property (as defined in section 
     48(c)(1)) for which qualified fuel cell property expenditures 
     are made.''.
       (c) Credit Allowed Against Alternative Minimum Tax.--
       (1) In general.--Section 25D(b) of the Internal Revenue 
     Code of 1986 (as amended by subsection (b)) is amended by 
     adding at the end the following new paragraph:
       ``(3) Credit allowed against alternative minimum tax.--The 
     credit allowed under subsection (a) for the taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under subpart A of 
     part IV of subchapter A and section 27 for the taxable 
     year.''.
       (2) Conforming amendment.--Subsection (c) of section 25D of 
     such Code is amended to read as follows:
       ``(c) Carryforward of Unused Credit.--If the credit 
     allowable under subsection (a) for any taxable year exceeds 
     the limitation imposed by subsection (b)(3) for such taxable 
     year, such excess shall be carried to the succeeding taxable 
     year and added to the credit allowable under subsection (a) 
     for such succeeding taxable year.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 305. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM 
                   PROPERTY.

       (a) In general.--Section 48(a)(3)(A) of the Internal 
     Revenue Code of 1986 (defining energy property) is by 
     striking ``or'' at the end of clause (iii), by inserting 
     ``or'' at the end of clause (iv), and by adding at the end 
     the following new clause:
       ``(v) combined heat and power system property,'';
       (b) Combined Heat and Power System Property.--Section 48 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new subsection:
       ``(d) Combined Heat and Power System Property.--For 
     purposes of subsection (a)(3)(A)(v)--
       ``(1) Combined heat and power system property.--The term 
     `combined heat and power system property' means property 
     comprising a system--
       ``(A) which uses the same energy source for the 
     simultaneous or sequential generation of electrical power, 
     mechanical shaft power, or both, in combination with the 
     generation of steam or other forms of useful thermal energy 
     (including heating and cooling applications),
       ``(B) which has an electrical capacity of not more than 15 
     megawatts or a mechanical energy capacity of not more than 
     2,000 horsepower or an equivalent combination of electrical 
     and mechanical energy capacities,
       ``(C) which produces--
       ``(i) at least 20 percent of its total useful energy in the 
     form of thermal energy which is not used to produce 
     electrical or mechanical power (or combination thereof), and
       ``(ii) at least 20 percent of its total useful energy in 
     the form of electrical or mechanical power (or combination 
     thereof),
       ``(D) the energy efficiency percentage of which exceeds 60 
     percent, and
       ``(E) which is placed in service before January 1, 2015.
       ``(2) Special rules.--
       ``(A) Energy efficiency percentage.--For purposes of this 
     subsection, the energy efficiency percentage of a system is 
     the fraction--
       ``(i) the numerator of which is the total useful 
     electrical, thermal, and mechanical power produced by the 
     system at normal operating rates, and expected to be consumed 
     in its normal application, and
       ``(ii) the denominator of which is the higher heating value 
     of the primary fuel sources for the system.
       ``(B) Determinations made on btu basis.--The energy 
     efficiency percentage and the percentages under paragraph 
     (1)(C) shall be determined on a Btu basis.
       ``(C) Input and output property not included.--The term 
     `combined heat and power system property' does not include 
     property used to transport the energy source to the facility 
     or to distribute energy produced by the facility.
       ``(D) Certain exception not to apply.--The first sentence 
     of the matter in subsection (a)(3) which follows subparagraph 
     (D) thereof shall not apply to combined heat and power system 
     property.
       ``(3) Systems using bagasse.--If a system is designed to 
     use bagasse for at least 90 percent of the energy source--
       ``(A) paragraph (1)(D) shall not apply, but
       ``(B) the amount of credit determined under subsection (a) 
     with respect to such system shall not exceed the amount which 
     bears the same ratio to such amount of credit (determined 
     without regard to this paragraph) as the energy efficiency 
     percentage of such system bears to 60 percent.
       ``(4) Nonapplication of certain rules.--For purposes of 
     determining if the term `combined heat and power system 
     property' includes technologies which generate electricity or 
     mechanical power using back-pressure steam turbines in place 
     of existing pressure-reducing valves or which make use of 
     waste heat from industrial processes such as by using organic 
     rankin, stirling, or kalina heat engine systems, paragraph 
     (1) shall be applied without regard to subparagraphs (C) and 
     (D) thereof .''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 2005, in taxable 
     years ending after such date, under rules similar to the 
     rules of section 48(m) of the Internal Revenue Code of 1986 
     (as in effect on the day before the date of the enactment of 
     the Revenue Reconciliation Act of 1990).

     SEC. 306. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR 
                   DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT.

       (a) In General.--Section 168(e)(3)(A) of the Internal 
     Revenue Code of 1986 (defining 3-year property) is amended by 
     striking ``and'' at the end of clause (ii), by striking the 
     period at the end of clause (iii) and inserting ``, and,'' 
     and by adding at the end the following new clause:
       ``(iv) any qualified energy management device.''.
       (b) Definition of Qualified Energy Management Device.--
     Section 168(i) of the Internal Revenue Code of 1986 (relating 
     to definitions and special rules) is amended by inserting at 
     the end the following new paragraph:
       ``(18) Qualified energy management device.--
       ``(A) In general.--The term `qualified energy management 
     device' means any energy management device which is placed in 
     service before January 1, 2015, by a taxpayer who is a 
     supplier of electric energy or a provider of electric energy 
     services.
       ``(B) Energy management device.--For purposes of 
     subparagraph (A), the term `energy management device' means 
     any meter or metering device which is used by the taxpayer--
       ``(i) to measure and record electricity usage data on a 
     time-differentiated basis in at least 4 separate time 
     segments per day, and
       ``(ii) to provide such data on at least a monthly basis to 
     both consumers and the taxpayer.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 307. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR 
                   DEPRECIATION OF QUALIFIED WATER SUBMETERING 
                   DEVICES.

       (a) In General.--Section 168(e)(3)(A) of the Internal 
     Revenue Code of 1986 (defining 3-year property), as amended 
     by section 306, is amended by striking ``and'' at the end of 
     clause (iii), by striking the period at the end of clause 
     (iv) and inserting ``, and,'' and by adding at the end the 
     following new clause:
       ``(v) any qualified water submetering device.''.
       (b) Definition of Qualified Water Submetering Device.--
     Section 168(i) of the Internal Revenue Code of 1986 (relating 
     to definitions and special rules), as amended by section 306, 
     is amended by inserting at the end the following new 
     paragraph:
       ``(19) Qualified water submetering device.--
       ``(A) In general.--The term `qualified water submetering 
     device' means any water submetering device which is placed in 
     service before January 1, 2015, by a taxpayer who is an 
     eligible resupplier with respect to the unit for which the 
     device is placed in service.
       ``(B) Water submetering device.--For purposes of this 
     paragraph, the term `water submetering device' means any 
     submetering device which is used by the taxpayer--
       ``(i) to measure and record water usage data, and
       ``(ii) to provide such data on at least a monthly basis to 
     both consumers and the taxpayer.
       ``(C) Eligible resupplier.--For purposes of subparagraph 
     (A), the term `eligible resupplier' means any taxpayer who 
     purchases and installs qualified water submetering devices in 
     every unit in any multi-unit property.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.
                                 ______
                                 
  SA 4733. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 3711, to enhance the energy independence and 
security of the United States by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

     SEC. 6. DEPLOYMENT OF NEW TECHNOLOGIES TO REDUCE OIL USE IN 
                   TRANSPORTATION.

       (a) Fuel From Cellulosic Biomass.--
       (1) In general.--The Secretary of Energy shall provide 
     deployment incentives under this subsection to encourage a 
     variety of projects to produce transportation fuel from

[[Page 16249]]

     cellulosic biomass, relying on different feedstocks in 
     different regions of the United States.
       (2) Project eligibility.--Incentives under this subsection 
     shall be provided on a competitive basis to projects that 
     produce fuel that--
       (A) meet United States fuel and emission specifications;
       (B) help diversify domestic transportation energy supplies; 
     and
       (C) improve or maintain air, water, soil, and habitat 
     quality.
       (3) Incentives.--Incentives under this subsection may 
     consist of--
       (A) loan guarantees under section 1510 of the Energy Policy 
     Act of 2005 (42 U.S.C. 16501), subject to section 1702 of 
     that Act (22 U.S.C. 16512), for the construction of 
     production facilities and supporting infrastructure; or
       (B) production payments through a reverse auction in 
     accordance with paragraph (4).
       (4) Reverse auction.--
       (A) In general.--In providing incentives under this 
     subsection, the Secretary of Energy shall--
       (i) issue regulations under which producers of fuel from 
     cellulosic biomass may bid for production payments under 
     paragraph (3)(B); and
       (ii) solicit bids from producers of different classes of 
     transportation fuel, as the Secretary of Energy determines to 
     be appropriate.
       (B) Requirement.--The rules under subparagraph (A) shall 
     require that incentives be provided to the producers that 
     submit the lowest bid (in terms of cents per gallon) for each 
     class of transportation fuel from which the Secretary of 
     Energy solicits a bid.
       (b) Advanced Technology Vehicles Manufacturing Incentive 
     Program.--
       (1) Definitions.--In this subsection:
       (A) Adjusted fuel economy.--The term ``adjusted fuel 
     economy'' means the average fuel economy of a manufacturer 
     for all light duty motor vehicles produced by the 
     manufacturer, adjusted such that the fuel economy of each 
     vehicle that qualifies for a credit shall be considered to be 
     equal to the average fuel economy for the weight class of the 
     vehicle for model year 2002.
       (B) Advanced lean burn technology motor vehicle.--The term 
     ``advanced lean burn technology motor vehicle'' means a 
     passenger automobile or a light truck with an internal 
     combustion engine that--
       (i) is designed to operate primarily using more air than is 
     necessary for complete combustion of the fuel;
       (ii) incorporates direct injection; and
       (iii) achieves at least 125 percent of the city fuel 
     economy of vehicles in the same size class as the vehicle for 
     model year 2002.
       (C) Advanced technology vehicle.--The term ``advanced 
     technology vehicle'' means a light duty motor vehicle that--
       (i) is a hybrid motor vehicle or an advanced lean burn 
     technology motor vehicle; and
       (ii) meets--

       (I) the Bin 5 Tier II emission standard established in 
     regulations issued by the Administrator of the Environmental 
     Protection Agency under section 202(i) of the Clean Air Act 
     (42 U.S.C. 7521(i)), or a lower-numbered Bin emission 
     standard;
       (II) any new emission standard for fine particulate matter 
     prescribed by the Administrator under that Act (42 U.S.C. 
     7401 et seq.); and
       (III) at least 125 percent of the base year city fuel 
     economy for the weight class of the vehicle.

       (D) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the cost of engineering tasks 
     relating to--
       (i) incorporating qualifying components into the design of 
     advanced technology vehicles; and
       (ii) designing new tooling and equipment for production 
     facilities that produce qualifying components or advanced 
     technology vehicles.
       (E) Hybrid motor vehicle.--The term ``hybrid motor 
     vehicle'' means a motor vehicle that draws propulsion energy 
     from onboard sources of stored energy that are--
       (i) an internal combustion or heat engine using combustible 
     fuel; and
       (ii) a rechargeable energy storage system.
       (F) Qualifying components.--The term ``qualifying 
     components'' means components that the Secretary of Energy 
     determines to be--
       (i) specially designed for advanced technology vehicles; 
     and
       (ii) installed for the purpose of meeting the performance 
     requirements of advanced technology vehicles.
       (2) Manufacturer facility conversion awards.--The Secretary 
     of Energy shall provide facility conversion funding awards 
     under this subsection to automobile manufacturers and 
     component suppliers to pay not more than 30 percent of the 
     cost of--
       (A) reequipping or expanding an existing manufacturing 
     facility in the United States to produce--
       (i) qualifying advanced technology vehicles; or
       (ii) qualifying components; and
       (B) engineering integration performed in the United States 
     of qualifying vehicles and qualifying components.
       (3) Period of availability.--An award under paragraph (2) 
     shall apply to--
       (A) facilities and equipment placed in service before 
     December 30, 2017; and
       (B) engineering integration costs incurred during the 
     period beginning on the date of enactment of this Act and 
     ending on December 30, 2017.
       (4) Improvement.--The Secretary of Energy shall issue 
     regulations that require that, in order for an automobile 
     manufacturer to be eligible for an award under this 
     subsection during a particular year, the adjusted average 
     fuel economy of the manufacturer for light duty vehicles 
     produced by the manufacturer during the most recent year for 
     which data are available shall be not less than the average 
     fuel economy for all light duty motor vehicles of the 
     manufacturer for model year 2002.
                                 ______
                                 
  SA 4734. Mr. LAUTENBERG submitted an amendment intended to be 
proposed by him to the bill S. 3711, to enhance the energy independence 
and security of the United States by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:
       Finding--
       (1) While Americans are forced to pay over $3.00 per gallon 
     of gasoline, and the minimum wage has been stuck at $5.15 an 
     hour for the last nine years, former Exxon Mobil CEO Lee R. 
     Raymond was provided with a golden parachute from his former 
     company totaling $398 million.
                                 ______
                                 
  SA 4735. Mr. LAUTENBERG submitted an amendment intended to be 
proposed by him to the bill S. 3711, to enhance the energy independence 
and security of the United States by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       Amend the title so as to read: ``Lee R. Raymond Oil 
     Profitability Act.''.
                                 ______
                                 
  SA 4736. Mr. BIDEN submitted an amendment intended to be proposed to 
amendment SA 4713 proposed by Mr. Frist to the bill S. 3711, to enhance 
the energy independence and security of the United States by providing 
for exploration, development, and production activities for mineral 
resources in the Gulf of Mexico, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. REPEAL OF 2005 ENERGY ACT FOSSIL FUEL ENERGY TAX 
                   INCENTIVES.

       (a) Repeal.--The provisions of, and the amendments made by, 
     subtitle B of title XIII of the Energy Policy Act of 2005 are 
     repealed and the Internal Revenue Code of 1986 shall be 
     applied and administered as if such provisions and amendments 
     had never been enacted.
       (b) Effective Date.--This section shall take effect as if 
     the provisions described in subsection (a) had never been 
     included in the Energy Policy Act of 2005.
                                 ______
                                 
  SA 4737. Mr. DAYTON submitted an amendment intended to be proposed by 
him to the bill S. 3711, to enhance the energy independence and 
security of the United States by providing for exploration, 
development, and production activities for mineral resources in the 
Gulf of Mexico, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. RENEWABLE FUELS PROMOTION.

       (a) Prohibition on Restriction of Installation of Renewable 
     Fuel Pumps.--
       (1) In general.--Title I of the Petroleum Marketing 
     Practices Act (15 U.S.C. 2801 et seq.) is amended by adding 
     at the end the following:

     ``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF 
                   RENEWABLE FUEL PUMPS.

       ``(a) Definition of Franchise-Related Document.--In this 
     section, the term `franchise-related document' means--
       ``(1) a franchise under this Act; and
       ``(2) any other contract or directive of a franchisor 
     relating to terms or conditions of the sale of fuel by a 
     franchisee.
       ``(b) Prohibitions.--
       ``(1) In general.--Notwithstanding any provision of a 
     franchise-related document in effect on the date of enactment 
     of this section, no franchisee or affiliate of a franchisee 
     shall be restricted from--
       ``(A) installing on the marketing premises of the 
     franchisee a renewable fuel pump;
       ``(B) converting an existing tank and pump on the marketing 
     premises of the franchisee for renewable fuel use;

[[Page 16250]]

       ``(C) advertising (including through the use of signage or 
     logos) the sale of any renewable fuel; or
       ``(D) selling renewable fuel in any specified area on the 
     marketing premises of the franchisee (including any area in 
     which a name or logo of a franchisor or any other entity 
     appears).
       ``(2) Enforcement.--Any restriction described in paragraph 
     (1) that is contained in a franchise-related document and in 
     effect on the date of enactment of this section--
       ``(A) shall be considered to be null and void as of that 
     date; and
       ``(B) shall not be enforced under section 105.
       ``(c) Exception to 3-Grade Requirement.--No franchise-
     related document that requires that 3 grades of gasoline be 
     sold by the applicable franchisee shall prevent the 
     franchisee from selling a renewable fuel in lieu of 1 grade 
     of gasoline.''.
       (2) Conforming amendments.--
       (A) In general.--Section 101(13) of the Petroleum Marketing 
     Practices Act (15 U.S.C. 2801(13)) is amended by adjusting 
     the indentation of subparagraph (C) appropriately.
       (B) Table of contents.--The table of contents of the 
     Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is 
     amended--
       (i) by inserting after the item relating to section 106 the 
     following:

``Sec. 107. Prohibition on restriction of installation of renewable 
              fuel pumps.'';
     and
       (ii) by striking the item relating to section 202 and 
     inserting the following:

``Sec. 202. Automotive fuel rating testing and disclosure 
              requirements.''.

       (b) Refueling.--The Energy Policy Act of 1992 is amended by 
     inserting after section 304 (42 U.S.C. 13213) the following:

     ``SEC. 304A. FEDERAL FLEET FUELING CENTERS.

       ``(a) In General.--Not later than January 1, 2008, the 
     appropriate Federal agency shall install not less than 1 
     renewable fuel pump at every Federal fleet fueling center in 
     the United States.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.
       (c) Report.--Not later than October 31 of each year 
     beginning after the date of enactment of this Act, the 
     President shall submit to Congress a report that describes 
     the progress of the agencies of the Federal government 
     (including the Executive Office of the President) in 
     complying with--
       (1) the Energy Policy Act of 1992 (42 U.S.C. 13201 et 
     seq.);
       (2) Executive Order 13149 (65 Fed. Reg. 24595; relating to 
     greening the government through Federal fleet and 
     transportation efficiency); and
       (3) the Federal fleet fueling center requirement under 
     section 304A of the Energy Policy Act of 1992 (as added by 
     subsection (b)).
                                 ______
                                 
  SA 4738. Mr. KYL (for himself and Mr. DeWine) submitted an amendment 
intended to be proposed by him to the bill S. 3711, to enhance the 
energy independence and security of the United States by providing for 
exploration, development, and production activities for mineral 
resources in the Gulf of Mexico, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ROYALTY RELIEF FOR PRODUCTION OF OIL AND GAS.

       (a) Price Thresholds.--Notwithstanding any other provision 
     of law, the Secretary shall place limitations based on market 
     price on the royalty relief granted under any lease for the 
     production of oil or natural gas on Federal land (including 
     submerged land) entered into by the Secretary on or after the 
     date of enactment of this Act.
       (b) Clarification of Authority To Impose Price Thresholds 
     for Certain Lease Sales.--Congress reaffirms the authority of 
     the Secretary under section 8(a)(1)(H) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)) to 
     vary, based on the price of production from a lease, the 
     suspension of royalties under any lease subject to section 
     304 of the Outer Continental Shelf Deep Water Royalty Relief 
     Act (Public Law 104-58; 43 U.S.C. 1337 note).

                          ____________________